HomeMy WebLinkAbout07-02-2019 Item 11 - Ordinance intro - Citywide and LOVR subarea Traffic Impact Fee Program Update
Department Name: Public Works
Cost Center: 5007
For Agenda of: July 2, 2019
Placement: Public Hearing
Estimated Time: 30 Min.
FROM: Daryl Grigsby, Public Works Director
Prepared By: Jake Hudson, Interim Deputy Public Works Director
SUBJECT: CITYWIDE AND LOS OSOS VALLEY ROAD (LOVR) SUBAREA TRAFFIC
IMPACT FEE PROGRAM UPDATE/NEXUS STUDY (AB 1600)
ORDINANCE INTRODUCTION
RECOMMENDATION
1. Introduce an Ordinance (Attachment B) and adopt a Resolution (Attachment A) to implement
updates to the Los Osos Valley Road Subarea Traffic Impact Fee Program to reflect current
growth assumptions and remaining costs; and
2. Adopt a Resolution (Attachment D) updating the Citywide Traffic Impact Fee Program to
reflect current growth assumptions and current project cost estimates.
REPORT-IN-BRIEF
In 2018, the City adopted a comprehensive development impact fee program, including updated
transportation and parks fees and new public safety fees. The Citywide fee program was a key
implementation action of the 2014 Land Use and Circulation Element General Plan Update and
was guided by General Plan Policy 1.13.91, which requires that new development pays its
proportionate share of infrastructure cost. At the time of the update, the LOVR Subarea
Transportation fee, which was last updated in 2005 was left in place “as is” and not updated.
Since the Citywide fee program was adopted in 2018, planned development in the LOVR
subarea is more certain and transportation improvements needed to serve the new development
are more defined. This subarea fee update is intended to realign anticipated development and the
required transportation improvements. In addition to the LOVR Subarea update, the planned
development assumptions in the LOVR program are recommended to also be reflected in the
Citywide fee program along with updated infrastructure costs for projects nearing construction.
This report and accompanying documentation, including the Nexus Studies (Attachments C &
E), provide the City of San Luis Obispo with the necessary technical documentation to support
the adoption of updated LOVR Subarea and Citywide transportation impact fee programs.
1 1.13.9. Costs of Growth: The City shall require the costs of public facilities and services needed for new
development be borne by the new development, unless the community chooses to help pay the costs for a certain
development to obtain community-wide benefits. The City shall consider a range of options for financing measures
so that new development pays its fair share of costs of new services and facilities which are required to serve the
project and which are reasonably related to the new growth attributable to the development.
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Consistent with City policy, the fee programs will help ensure that new development contributes
its fair share to needed infrastructure and public facilities, no single development is burdened
with the full cost implementing impact fee program projects, and helps to sustain the City’s
quality of life and economic vitality as growth occurs. Traffic Impact Fees for the LOVR
Subarea Program are recommended to be reduced by approximately 65% for all land uses except
for retail which is proposed to increase by 23%. Traffic Impact Fees for the Citywide Program
are recommended to increase by approximately 5% to 6% for all land uses.
DISCUSSION
Los Osos Valley Road Subarea Fee Program Update
The Los Osos Valley Road (LOVR) Subarea Traffic Impact Fee program is the funding
mechanism for the Los Osos Valley Road Interchange and associated improvements. Although
the Interchange has been completed, the fee program is still in place to fund other remaining
improvements associated with the interchange such as a traffic signal at Auto Park Way, SB
Highway 101 ramp metering, as well as reimbursement to Costco for costs they incurred above
and beyond their fair share for relocating Calle Joaquin. The growth and project assumptions for
the LOVR Subarea Fee program were last updated in 2005. Since then the LOVR Interchange
proper has been constructed, the General Plan was updated changing allowed land uses in the
subarea, more accurate growth assumptions are now known based on development proposals in
process, and the Citywide Traffic Impact Fee program was adopted incorporating some of the
costs from the LOVR Subarea Fee Program. These changes now necessitate an update of the
LOVR Subarea Fee Program.
1. Changes in Project Costs
The total cost associated with the LOVR Interchange, which in addition to the Interchange
proper, includes realignment of Calle Joaquin, Auto Park traffic signal, environmental
mitigation, Calle Joaquin Park & Ride, SB 101 ramp metering, and others is estimated at
$50million Of that $50 million approximately $33 million has been expended to-date and
approximately $12 million has been incorporated into the Citywide Traffic Impact Fee Program.
The remaining $5 million balance is to be collected from the proposed updated fee program
2. Changes in Land Use Assumptions
The current subarea fee program growth assumptions that these costs are divided by included
445,000 square feet of retail, 227 hotel rooms, and 120 acres of business park. Due to
development that has occurred since the last fee update, land use changes in the General Plan
update, and updated growth assumptions based on current development proposals the new land
use assumptions to divide these costs by need to be revised to include 145,000 square feet of
retail, 120 hotel rooms, 143 single family residential units, 909 multifamily residential units, and
a life plan community (i.e. Froom Ranch).
The table below shows the estimated trip generation of new growth in the LOVR Subarea, the
division of the remaining $4.8 million in costs by those trips, and the resulting cost per trip.
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Because development applicants may not know how to calculate the trip generation of their
projects, the $2,157 cost per trip has been converted into the cost per dwelling unit, per 1,000
square feet, or per hotel room in the recommended fee rate schedule as a convenience. This is
consistent with the format of the fee rate schedule for the Citywide Traffic Impact Fee Program.
3. Recommended Fees
The table below contains the recommended fee levels for the updated LOVR Subarea
Transportation Impact Fee Program. Primarily as a result of the new land use designations under
the General Plan, recommended fees are significantly lower than current fees for all uses except
for retail which is 23% higher. Retail fees are higher under the proposed update because retail
trip generation has a much higher proportionality to the total generation as compared to the prior
General Plan land use.
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Citywide Transportation Impact Fee Program Update
A comprehensive update of the Citywide Transportation Impact fee program was adopted in
2018 based on the most current land use assumptions and project cost estimates at that time.
These land use assumptions are still accurate and are consistent with assumptions under the
LOVR fee update except for the Life Plan Community land use that is proposed as part of the
upcoming Froom Ranch Specific Plan. Staff is proposing that the Life Plan Community land use
also be reflected in the Citywide Impact Fee Program as it is proposed in the LOVR Fee update.
In addition to land use updates staff is also recommending cost updates for four projects that are
nearing construction.
1. Changes in Project Costs
The current Citywide Transportation Impact fee program includes the following four projects
which are in the final stages of design and nearing construction. Cost estimates assumed in the
Citywide Fee Program were based on the best information available at the time. Since the
Citywide Fee program was adopted, comprehensive engineering has been completed which
revealed unanticipated project costs for some projects and for others the City entered into
agreements with Avila Ranch expanding the scope costs within the fee program. The table below
summarizes prior and new cost estimates for each of these projects and the reason for the
increase.
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Infrastructure Project Prior
Estimate
New
Estimate
Reason for Increase
1. Orcutt & Tank Farm Roundabout
PFFP Project #4
$1,700,000 $2,750,000 Project scope increased due to unanticipated
drainage affects and corresponding design
changes.
2. California & Taft Roundabout
PFFP Project #9
$1,500,000 $1,750,000 Construction & Right of Way Costs Higher
Than Preliminary Estimates.
3. Higuera & Tank Farm Int. Widening
PFFP Project #7
$2,000,000 $2,300,000 Project scope increased to include design
costs per Avila Ranch Development
Agreement.
4. Higuera: Widening (Bridge to Elks) &
Sidewalks (Vachell to City Limits)
PFFP Project #13
$655,000 $1,007,688 Estimates higher than originally anticipated.
Project scope increased to include design
and right of way costs per Avila Ranch
Development Agreement
Total Cost Increase: $1,952,688
As summarized in the project table below the current cost to be divided by new development in
the Citywide Traffic Impact Fee Program is $143,378,158. As a result of the cost increases
summarized in the table above the proposed cost to be divided by new development is 1.4%
higher at $145,330,826.
Project
Cost
Estimates
Direct
Developer
Contribution
Grant or
Other
Sources
PFFP Cost
Estimate
Allocation
Regional
Traffic
Existing
Traffic
New
Traffic
Current Fee
Program $271,645,214 $31,265,720 $23,800,000 $216,579,494 $23,866,296 $49,355,040 $143,378,158
Proposed
Updates $274,465,214 $31,265,720 $23,800,000 $219,399,494 $24,262,296 $49,806,372 $145,330,826
2. Changes in Land Use Assumptions
The current Citywide fee program land use that these costs are divided by are estimated to
generate approximately 233,000 new trips. This reflects the current General Plan land use for the
Froom Ranch Specific Plan area which includes 275 residential units and 200,000 square feet of
retail. However, the current land use proposal for Froom Ranch is different and now includes
130 residential units, 30,000 square feet of retail, a 120-room hotel, and a Life Plan Community
which reduces citywide new trip generation by approximately 5% to 223,361 new annual trips.
Although there are fewer trips than originally anticipated based on the preliminary Froom Ranch
traffic impact study, the need for infrastructure contemplated under the fee program is the same.
The table below shows the estimated trip generation of new Citywide growth, the division of the
$145 million in costs by those trips, and the resulting cost per trip. Because development in the
LOVR Subarea and San Luis Ranch Specific Plan area are paying direct contributions to the
LOVR & Prado Road interchanges they have a lower Citywide Impact fee rate so as not to
double charge development in those areas.
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3. Recommended Fees
Table 1 below is the recommended Citywide fee maintaining the policy reductions previously
adopted by Council. The Recommended fees have increased by between 5% and 6% as a result
of higher project costs and less land use to divide those costs by.
1. General Plan Policies
The City of San Luis Obispo General Plan, Land Use Element Policy 1.13.9, Costs of Growth,
states the following:
The City shall require the costs of public facilities and services needed for new
development be borne by the new development, unless the community chooses to help pay
the costs for certain development to obtain community-wide benefits. The City shall
consider a range of options for financing measures so that new development pays its fair
share of costs of new services and facilities which are required to serve the project, and
which are reasonably related to the new growth attributable to the development.
Some of these “costs of growth” are paid for by new development either through the direct
construction of an infrastructure project, or by payment of a development impact fee.
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2. Mitigation Fee Act
The Mitigation Fee Act (Assembly Bill 1600) is contained in California Government Code
Section 66000 et.seq., established constitutional limits and “ground rules” for the imposition and
administration of impact fee programs. The Act became law in January 1988 and requires local
governments to document the following when adopting an impact fee:
1. Identify the purpose of the fee;
2. Identify the use of the fee revenues;
3. Determine a reasonable relationship between the use of the fee and the type of
development paying the fee;
4. Determine a reasonable relationship between the need for the fee and the type of
development paying the fee; and
5. Determine a reasonable relationship between the amount of the fee and the cost of the
facility attributable to development paying the fee.
In summary, a fee cannot collect more than the cost of the public facility needed to accommodate
the new development paying the fee. AB 1600 establishes the legal requirement for there to be a
nexus between the project and fee. In addition, fee revenues can only be used for their intended
purpose.
Public Engagement
Notices of the fee updates, a June community meeting, and the July Council meeting were
mailed to affected property owners in the LOVR Subarea the week of May 29, 2019. The only
response was from one property owner verifying the proposed fee changes.
A community meeting was held on June 19, 2019. Representatives of Avila Ranch were the only
ones that attended.
Staff also met with the Chamber of Commerce Director of Governmental Affairs to review the
LOVR Subarea updates with follow-up correspondence regarding the corresponding updates to
the Citywide Impact Fee Program.
As of June 25, 2019 staff has received no objections to the proposed updates.
CONCURRENCE
The City’s Attorney, Community Development, & Finance Departments have reviewed this staff
report and concur with its recommendation.
ENVIRONMENTAL REVIEW
The improvement projects contemplated under these updates were adequately analyzed in the
City’s General Plan, Avila Ranch, and Orcutt Area EIRs. The adoption of the proposed
Ordinance and Resolutions is not defined as a project under the California Environmental
Quality Act (CEQA) and is therefore exempt pursuant to CEQA Guidelines section 15378(b)(4).
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FISCAL IMPACT
Budgeted: N/A Budget Year: On-Going
Funding Identified: N/A
Fiscal Analysis:
As part of the 2018 Development Impact Fee Program the Council adopted policy fee program
discounts that amount to a 30% or $43m reduction in Transportation Impact Fee revenue over
the course of the 30-year program for the purpose of ensuring development feasibility and to
incentivize the construction of smaller residential units. The funding gap created by the policy
reduction is being offset by the General Fund, therefore 30% of any impact fee program project
cost increase, such as those presented in this recommendation, would be borne by the General
Fund, or other sources such as grants if secured, over the course of the 30 year fee program.
As it relates to this staff recommendation, the cost increases in combination with the previously
adopted 30% policy reduction would amount to an estimated $590,000 impact to the General
Fund incrementally over the course of 30 years or approximately $20,000 per year. This
obligation is being satisfied thru General Fund transfers into the Infrastructure Investment fund
that was adopted as part of the current budget and will be proposed as part of future financial
plans.
ALTERNATIVES
1. Continue consideration of this item. The City Council may continue consideration of the
recommendation if more information is needed to make a decision. Direction should be
provided to staff regarding the additional analysis or data needed for the Council to conclude
the item.
2. Deny the request. The City Council may deny the proposed fee updates. This action is not
recommended because it would not evenly distribute infrastructure costs and may cause
individual developments to shoulder the full burden of those costs which in turn has the
potential to delay housing production.
Attachments:
a - LOVR Subarea Fee Update Resolution
b - LOVR Subarea Fee Update Ordinance
c - LOVR Subarea Update AB1600 Nexus Study
d - Citywide TIF Update Resolution
e - Citywide TIF Update AB1600 Nexus Study
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R ______
RESOLUTION NO. _____ (2019 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AMENDING LOS OSOS VALLEY ROAD
SUBAREA TRANSPORTATION IMPACT FEE PROGRAM
WHEREAS, existing local, state and federal resources are insufficient to meet the City of
San Luis Obispo’s needs for transportation improvements; and
WHEREAS, new development generally increases the demand for transportation
improvements and affect the quality of the community’s infrastructure; and
WHEREAS, the public interest, convenience, health, safety and/or welfare require that
transportation improvements be provided for the maintenance and enhancement of the quality of
life of the City’s residents; and
WHEREAS, the City of San Luis Obispo has a critical need to ensure that impacts from
new development on the City’s transportation network are addressed, and development impact
fees are a commonly-used mechanism to address this need; and
WHEREAS, Article XI, Section 5 of the California Constitution provides that the City, as
a home rule charter city, has the power to make and enforce all ordinances and regulations in
respect to municipal affairs, and Article XI, Section 7, empowers the City to enact measures that
protect the health, safety, and/or welfare of its residents; and
WHEREAS, Section 203 of the San Luis Obispo City Charter provides that the City has
the right and power to make and enforce all laws and regulations in respect to municipal affairs;
and
WHEREAS, the Mitigation Fee Act (AB 1600), codified in California Government Code
Sections 66000-66025, establishes the legal requirements for a jurisdiction to implement a
development impact fee program in conformance with constitutional standards; and
WHEREAS, many cities and counties have adopted and imposed capital improvement
impact fees on new development to ensure that impacts from new development are addressed; and
WHEREAS, in April 2018, the City Council adopted the Citywide Capital Facilities Fee
program, and in so doing, left the Los Osos Valley Road Subarea fee program in place; and
WHEREAS, in April 2018, the City entered into an Agreement with the Avila Ranch
developer in which the City agreed to update the Los Osos Valley Road Subarea Transportation
Impact Fee Program, thereby directing staff to prepare a nexus study, and ident ified funding for
this purpose; and
WHEREAS, policies supporting development impact fees for capital improvements are
included in the recently adopted specific plans and related General Plan amendments, for Avila
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Ranch, San Luis Ranch, Orcutt Area, Margarita Area, and the Airport Area, as well as the 2014
Land Use and Circulation Element (LUCE) of the City’s General Plan, the 2015 Housing Element,
and the 2013 Economic Development Strategic Plan; and
WHEREAS, the City Council introduced an Ordinance to establish an updated Los Osos
Valley Road Subarea Transportation Impact Fee Program that identified the impact fees that are
necessary to maintain an adequate level of transportation improvement infrastructure at a duly
noticed public hearing, at a regular meeting of the City Council on July 2, 2019; and
WHEREAS, the City Council introduced Ordinance #### amending Chapter 4.56 of the
Municipal Code to establish an updated Los Osos Valley Road Subarea Transportation Impact Fee
Program that identified the impact fees that are necessary to maintain an adequate level of
transportation improvement infrastructure at a duly noticed public hearing, at a regular meeting of
the City Council on July 2, 2019 and is scheduled to adopted the Ordinance on July 16th, 2019.
The Los Osos Valley Road Transportation Impact Fee Program, as codified in Chapter 4.56, states
that the amount of the fees be established by Resolution of the City Council; and
WHEREAS, an analysis of the updated Los Osos Valley Road Subarea Transportation
Impact Fee Program is provided in the Los Osos Valley Road Subarea Transportation Impact Fee
Program Nexus Study, and which includes cost information for the identified transportation
projects, is included in the attached Exhibits A and incorporated herein by this reference.
WHEREAS, by this Resolution, the City Council intends on establishing the fee levels.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. Findings
a) The purpose of development impact fees is to protect the public health, safety, and
general welfare by providing adequate transportation, park and recreation, fire,
police, and general government facilities to satisfy the needs of new development
and to mitigate the impacts of new development on the City’s capital facilities and
improvements.
b) The development impact fees collected pursuant to this Resolution shall be used
only to pay for facilities and improvements identified in the Los Osos Valley Road
Subarea Transportation Impact Fee Update Nexus Study and shall not be in lieu of
any other fee or tax as may be required by the Municipal Code.
c) There is a reasonable relationship between the types of development on which the
development impact fees are imposed and the use of the development impact fees
and the need for the facilities and improvements. All new development requires
adequate transportation infrastructure to protect the public health and safety.
d) As required by Government Code Section 66001 et seq., there is a reasonable
relationship between the amount of the development impact fee and the cost of the
improvements attributable to the developments on which the development impact
fees are imposed. The estimated costs of facilities and improvements, including
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financing costs, to be paid for as shown in the Los Osos Valley Road Subarea
Transportation Impact Fee Update Nexus Study, for the City of San Luis Obispo,
dated June 6, 2019, prepared by Economic & Planning Systems, Inc., the findings
and analysis of which are hereby incorporated by reference, have been allocated to
new development in a proportional manner based on trip generation rates.
SECTION 2. Cost Estimates. At any time that the actual or estimated costs of facilities
identified in the development impact fee analysis changes, the Finance Director shall review the
development impact fee and determine whether the change affects the amount of the development
impact fees. If the development impact fees are significantly affected, the Finance Director shall,
within thirty (30) days, recommend to the Council that an updated impact fee nexus study be
prepared.
SECTION 3. Amount of Development Impact Fees. Effective July 1, 2019, development
impact fees for capital improvement infrastructure associated with transportation, parks and
recreation, public safety, and general government shall be in the amounts set forth in Exhibits A
and B attached hereto. Unless otherwise acted upon by the Council, the amount of the development
impact fees will automatically be adjusted on July 1 of each subsequent year by the Municipal
Cost Index for the prior year.
Upon motion of _______________________, seconded by _______________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2019.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________________
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J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of ______________, 2019.
____________________________________
Teresa Purrington
City Clerk
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EXHIBIT A
CAPITAL FACILITIES DEVELOPMENT IMPACT FEES
Effective July 1, 2019
Land Use Category
Residential
Single Family Residential $2,157 per unit
Multifamily Residential $1,445 per unit
Non-Residential
Retail $19,199 per 1,000 sq.ft.
Office/Services $3,063 per 1,000 sq.ft.
Industrial $1,704 per 1,000 sq.ft.
Institutional $1,726 per 1,000 sq.ft.
Lodging $1,316 per room
Other $2,157 per PM Trip
Avila Ranch
Single Family Residential $2,260 per unit
Multifamily Residential
Condominium $1,061 per unit
Apartment $1,308 per unit
Retail $24,160 per 1,000 sq.ft.
Updated LOVR Subarea Fee
Sources: City of San Luis Obispo; Avila Ranch Traffic Study; Economic &
Planning Systems, Inc.
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O ______
ORDINANCE NO. _____ (2019 SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AMENDING THE MUNICIPAL CODE TO
ESTABLISH AN UPDATED TRANSPORTATION DEVELOPMENT
IMPACT FEE PROGRAM FOR THE LOS OSOS VALLEY ROAD
SUBAREA AND MAKE RELATED AND CONFORMING AMENDMENTS
TO CHAPTER 4.56 (ORDINANCE NO. 1256 (1994 SERIES)) TO INCLUDE
THE LOS OSOS VALLEY ROAD FEE PROGRAM, AND ADOPTING
CEQA EXEMPTION FINDINGS
WHEREAS, existing local, state and federal resources are insufficient to meet the City of
San Luis Obispo’s needs for transportation improvements; and
WHEREAS, new development generally increases the demand for transportation
improvements and affect the quality of the community’s infrastructure; and
WHEREAS, the public interest, convenience, health, safety and/or welfare require that
transportation improvements be provided for the maintenance and enhancement of the quality of
life of the City’s residents; and
WHEREAS, the City of San Luis Obispo has a critical need to ensure that impacts from
new development on the City’s transportation network are addressed, and development impact
fees are a commonly used mechanism to address this need; and
WHEREAS, Article XI, Section 5 of the California Constitution provides that the City, as
a home rule charter city, has the power to make and enforce all ordinances and regulations in
respect to municipal affairs, and Article XI, Section 7, empowers the City to enact measures that
protect the health, safety, and/or welfare of its residents; and
WHEREAS, Section 203 of the San Luis Obispo City Charter provides that the City has
the right and power to make and enforce all laws and regulations in respect to municipal affairs;
and
WHEREAS, the Mitigation Fee Act (AB 1600), codified in California Government Code
Sections 66000-66025, establishes the legal requirements for a jurisdiction to implement a
development impact fee program in conformance with constitutional standards; and
WHEREAS, many cities and counties have adopted and imposed capital improvement
impact fees on new development to ensure that impacts from new development are addressed; and
WHEREAS, in April 2018, the City Council adopted the Citywide Capital Facilities Fee
program, and in so doing, left the Los Osos Valley Road Subarea fee program in place; and
WHEREAS, in April 2018, the City entered into an Agreement with the Avila Ranch
developer in which the City agreed to update the Los Osos Valley Road Subarea Transportation
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Impact Fee Program, thereby directing staff to prepare a nexus study, and identified funding for
this purpose; and
WHEREAS, policies supporting development impact fees for capital improvements are
included in the recently adopted specific plans and related General Plan amendments, for Avila
Ranch, San Luis Ranch, Orcutt Area, Margarita Area, and the Airport Area, as well as the 2014
Land Use and Circulation Element (LUCE) of the City’s General Plan, the 2015 Housing Element,
and the 2013 Economic Development Strategic Plan; and
WHEREAS, in February 2019, the Public Works Director, on behalf of the City Manager,
further initiated proceedings by to entering into a professional services contract with Economic &
Planning Solutions, Inc. (EPS) to update the Los Osos Valley Road Subarea transportation impact
fee program; and
WHEREAS, EPS has prepared a Nexus Study entitled “Los Osos Valley Road Subarea
Transportation Impact Fee Nexus Study,” for the City of San Luis Obispo, dated June 6, 2019, a
copy of which was previously provided to the City Council and made available to the public; and
WHEREAS, the Nexus Study has documented and confirmed that development in the Los
Osos Valley Road Subarea of San Luis Obispo will result in further growth, and that such growth
will place additional burdens on the City’s transportation system; and
WHEREAS, the Nexus Study further identified the locations and types of development
that will generate those impacts, and thus established the reasonable relationship between the
location and type of development projects paying the fees and the need for the transportation
improvements generated by such development; and
WHEREAS, the Nexus Study provided data outlining the transportation improvement
infrastructure that is required to meet the need generated by new development projects in the Los
Osos Valley Road Subarea; and
WHEREAS, it is the City’s policy that new development should contribute its fair share
to transportation improvement infrastructure through the imposition of impact fees which will be
used to finance, defray, or reimburse the City for the appropriate portion of the cost of the
improvements which serve such development; and
WHEREAS, the Nexus Study established trip rate factors that reasonably estimate the
level of impacts on transportation improvement infrastructure from new development based on the
type of development project, and thus determined that there is a reasonable relationship between
the type of development project paying the fees and the need for the identified transportation
improvement infrastructure; and
WHEREAS, the Nexus Study established eligible uses of revenues from transportation
improvement infrastructure, based on the types of impacts from development projects, and thus
determined that there is a reasonable relationship between the type of development project paying
the fees and the use of the fee revenues; and
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WHEREAS, the Nexus Study applied factors that reasonably estimate the level of impacts
on transportation improvement infrastructure per unit of development and that vary by the type of
development project, to calculate the fee on a development project, and thus determined that there
is a reasonable relationship between the amount of the fee and the cost of the transportation
improvement infrastructure fees attributable to the development project on which the fee is
imposed; and
WHEREAS, through the payment of the fee, developers of residential and non-residential
projects in the Los Osos Valley Road Subarea will address a portion of the impact of their
developments on transportation improvement infrastructure; and
WHEREAS, impact fees are necessary to maintain an adequate level of transportation
improvement infrastructure; and
WHEREAS, the proposed impact fees adopted under this Ordinance are consistent with
the maximum legal fees documented in the Nexus Study; and
WHEREAS, the proposed impact fees balance the need for such improvements with the
goal of not impeding the construction of new development; and
WHEREAS, the updated fee program was discussed in a Developers’ Roundtable meeting
on June 18, 2019 and which consisted of City staff and a cross section of stakeholders; and
WHEREAS, the updated impact fees were scheduled to be considered at regular, duly
noticed (including newspaper ad published on June 20, 2019) meeting of the City Council on July
2, 2019; and
WHEREAS, this Ordinance was considered, after a duly noticed public hearing, at a
regular meeting of the City Council on July 2, 2019.
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo
as follows/or that (whatever action is needed):
SECTION 1. Recitals. The recitals contained in this Ordinance are true and correct and
are an integral part of the Council’s decision, and, are hereby adopted as findings.
SECTION 2. Environmental Determination. The City Council finds and determines the
adoption of this Ordinance is (1) not a Project under the California Environmental Quality Act
“CEQA”) and is therefore exempt pursuant to CEQA Guidelines section 15378(b)(4); (2)
statutorily exempt pursuant to CEQA Guidelines section 15273(a)(4) (Rates, Tolls, Fares and
Charges for obtaining funds for capital projects necessary to maintain service within existing
service area); (3) not intended to apply to specific capital improvement projects and as such it is
speculative to evaluate such projects now and any specifically identified transportation projects
were already evaluated under CEQA and imposed as mitigation measures in previously certified
EIRs and /or adopted mitigated negative declarations; and/or (4) not intended to, nor does it,
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provide CEQA clearance for future development-related projects by mere payment of the fees.
Each of the foregoing provides a separate and independent basis for CEQA compliance and when
viewed collectively provides an overall basis for CEQA compliance.
SECTION 3. This Ordinance shall be known as the “Los Osos Valley Road Subarea
Transportation Development Impact Fee Ordinance.”
SECTION 4. Chapter 4.56 of the City of San Luis Obispo Municipal Code is hereby
repealed and replaced in its entirety with Exhibit A.
SECTION 5. Severability. If any subdivision, paragraph, sentence, clause, or phrase of
this Ordinance is, for any reason, held to be invalid or unenforceable by a court of competent
jurisdiction, such invalidity or unenforceability shall not affect the validity or enforcement of the
remaining portions of this Ordinance, or any other provisions of the city' s rules and regulations.
It is the city' s express intent that each remaining portion would have been adopted irrespective of
the fact that any one or more subdivisions, paragraphs, sentences, clauses, or phrases be declared
invalid or unenforceable.
SECTION 6. A summary of this ordinance, together with the names of Council members
voting for and against, shall be published at least five (5) days prior to its final passage, in The
Tribune, a newspaper published and circulated in this City. This Ordinance shall go into effect at
the expiration of thirty (30) days after its final passage.
INTRODUCED on the 2nd day of July, 2019, AND FINALLY ADOPTED by the
Council of the City of San Luis Obispo on the 16th day of July, 2019, on the following vote:
AYES:
NOES:
ABSENT:
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________________
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J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of ______________, 2019.
______________________________
Teresa Purrington
City Clerk
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EXHIBIT A
Chapter 4.56 - DEVELOPMENT IMPACT FEES
Sections:
4.56.010 - Purpose.
The council declares that the fees required to be paid by this chapter are established for the
purpose of protecting the public health, safety and general welfare, and implementing the policies
of the general plan, by providing adequate public facilities to support orderly development.
4.56.020 - Definitions.
Unless otherwise required by the context, the following definitions shall govern the
construction of this chapter:
"Commercial development" means the development or use of land for any retail, office,
lodging, service commercial or other business purpose.
"Council" means the city council of the city of San Luis Obispo.
"Development" or "development project" means any project undertaken for the purpose of
development, and includes a project involving the issuance of a permit for construction or
reconstruction, but not a permit to operate. Development or development project shall include: (i)
approvals of land divisions pursuant to Title 16 of this code, including approval of lot line
adjustments, certificates of compliance, parcel maps, tract maps and condominium conversions;
(ii) land use approvals pursuant to Title 17 of this code, including re-zonings or the approval of
development plans, site plans, minor use permits, variances, but excepting approval of San Luis
Obispo general plan/land use ordinance amendments; (iii) For the issuance of any occupancy
permit or final building inspection; and (iv) all other approvals of real property development,
which approvals are subject to the jurisdiction of the city of San Luis Obispo and which approvals
are subject to the exercise of the discretion of the city council, planning commission, or community
development director. For purposes of this chapter, new development includes any change of use
or occupancy which increases the traffic service requirements of a development.
"Dwelling unit" means a structure, or portion of a structure that is used for separate residential
occupancy by an individual, a family or group of unrelated individuals.
"Impact fee" means a monetary exaction charged to the applicant in connection with approval
of a development project for the purpose of defraying all or a part of the cost of the public facilities
related to the development project. This definition does not include fees specified in Government
Code Section 66477, or fees for processing applications for permits or approvals.
"Imposition of fees" occurs when they are imposed or levied on a specific development.
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"Multifamily residential development" means development or use of land for residential
purposes involving more than one dwelling unit in a single structure.
"Public facilities" means public improvements, public services or community amenities.
"Single-family residential" means development or use of land for residential purposes
involving no more than one dwelling unit in a single structure.
4.56.030 - Fees—Imposition and application.
This chapter establishes development impact fees which are imposed as a condition of
approval upon all development projects for which a building permit is issued on or after the
effective date of the ordinance codified in this chapter. Those impact fees are established for the
following public facilities:
A. General Government Impact Fee;
B. Fire Impact Fee
C. Parkland In-Lieu Fee;
D. Parks and Recreation Development Impact Fee;
E. Police Impact Fee; and
F. Transportation Impact Fees (Citywide and designated subareas)
Water and wastewater impact fees shall be governed by Title 13. These impact fees are
established in order to pay for the capital costs of public facilities reasonably related to the needs
of new development in the city. At least once every five years, the council shall review the basis
for the impact fees to determine whether the fees are still reasonably related to the needs of new
development. In establishing these fees, the council has considered the effect of the fees with
respect to the city's housing needs as established in the housing element of the general plan.
4.56.040 - Fees to be set by resolution.
The amount of fee assessments shall be determined by resolution adopted by the city council.
Fees shall be adjusted annually by modifying the adopted value up or down in conformance with
the Engineering News Record Construction Cost Index. The factor for the adjustment of the fees
shall be calculated and established each July by the director of financial services, utilizing the
following formula:
Factor =
1 + Current Index - Base Index for Date of Adoption
Base Index for Date of Adoption
4.56.050 - Payment of fees.
Except as otherwise provided in Section 66007 of the Government Code, impact fees shall be
paid to the city at the time a building permit is issued. In cases where payment of all or part of the
required fee is deferred at the time of building permit issuance, the community development
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director may require that the applicant, at the applicant's expense, execute a contract with the city
to pay all deferred impact fees prior to final inspection and/or issuance of a certificate of occupancy
for the project. The contract shall specify the amount of the unpaid fee and a legal description of
the property affected. It shall be recorded in the office of the county recorder and shall constitute
a lien for the payment of the fees, which shall be enforceable against the successors in interest of
the property owner. When impact fees are paid in full, the city, at the expense of the applicant or
property owner, shall execute a release of any lien securing those impact fees.
4.56.060 - Protests.
Any party subject to the fees established by this chapter may protest the imposition of those
fees by meeting all of the following requirements:
A. Tendering any required payment in full or providing satisfactory evidence of
arrangements to pay the fee when due or ensure performance of the conditions necessary
to meet the requirements of the imposition of the fee.
B. Serving written notice of protest on the city council which notice shall contain all of the
following information:
1. A statement that the required payment is tendered, or will be tendered when due,
under protest;
2. A statement informing the city council of the factual elements of the dispute and the
legal theory forming the basis for the protest.
C. Serving the written notice of protest, no later than ninety (90) days after the date of the
imposition of the fees.
The city council shall consider that protest at a hearing to be held within sixty (60) days after
serving the written notice of protest. The decision of the city council shall be final.
4.56.070 - Exemptions.
The fees imposed under this chapter shall not apply to the following:
A. The United States or to any agency or instrumentality thereof, the state of California or
any county or other political subdivision of the state of California;
B. Remodeling or alteration of an existing residential building, but only if the number of
dwelling units is not increased or the use changed;
C. That portion of a structure that existed before the addition of dwelling units or the
enlargement of floor area in a nonresidential structure. If a structure is destroyed or
demolished and replaced within two years from the date of demolition, the impact fees
shall be based on the service requirements of the new development less the service
requirements of the development which it replaced.
4.56.080 - Credits and reimbursement.
If the applicant for approval of any development project is required by the city, as a condition
of approval to construct facilities, the cost of which has been used in the calculation of impact fees
which apply to that project, the applicant may receive a credit against those impact fees, up to the
amount charged for the same type of facility. If the cost of the improvements constructed by the
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applicant exceeds the amount of the impact fees charged to the development project for the same
type of facility, the excess cost may be reimbursed to the applicant from other impact fee revenues
within a reasonable time. To qualify for reimbursement, the applicant must enter into a
reimbursement agreement with the city, and any such agreement must specify the amount to be
reimbursed and the approximate schedule of the reimbursement.
4.56.090 - Disposition and use of fees.
The director of financial services shall establish a separate fund or account for each type of
facility listed in Section 4.56.030. All impact fees collected by the city shall be deposited in the
fund or account established for the specific type of facility for which the fee is collected. Any
interest earned on funds deposited in a fund or account shall be deposited in that fund or account.
Funds deposited in those accounts shall be used only to pay for design and construction,
including construction administration, of projects identified in resolutions or other formal city
council action adopted pursuant to Section 4.56.030 as the basis for the impact fees, or for
reimbursements as provided in Section 4.56.080.
4.56.100 - Refunds.
If impact fees collected by the city have not been expended or designated for the intended
purpose within five years following their collection, the city shall either refund those fees as
provided in Section 66001 of the Government Code, or make findings as required by that section
to retain the fees. The refund provision of this chapter shall apply only to moneys in possession of
the city and need not be made with respect to any bonds, letters of credit or other items given to
secure payment at a future date.
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Los Osos Valley Road Subarea
Transportation Impact Fee
Nexus Study
Prepared for:
City of San Luis Obispo
Prepared by:
Economic & Planning Systems, Inc.
June 6, 2019
EPS #191011
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Table of Contents
1. INTRODUCTION AND OVERVIEW ................................................................................. 1
Background .............................................................................................................. 1
Legal Context ........................................................................................................... 1
Summary of Maximum Fees ....................................................................................... 2
Fee Program Implementation ..................................................................................... 4
2. LAND USE FORECASTS ........................................................................................... 6
Projected Development Activity .................................................................................. 6
Land Use Categories .................................................................................................. 8
Changes in Projected Development ............................................................................. 8
3. LOVR SUBAREA TRANSPORTATION IMPACT FEE ............................................................ 10
Mitigation Fee Act Nexus Findings ............................................................................. 10
Geography of the LOVR Subarea Fee Program ............................................................ 11
Transportation Improvements and Cost Estimates ...................................................... 13
Fee Calculation ....................................................................................................... 15
4. IMPLEMENTATION AND ADMINISTRATION ..................................................................... 19
Fee Collection and Amount ....................................................................................... 19
Annual Review, Accounting, and Updates ................................................................... 20
Appendices
APPENDIX A: Transportation Impact Fee Improvement List and Cost Allocation
APPENDIX B: Trip Generation Rate Source and Comparison
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List of Tables
Table 1 Maximum LOVR Subarea Transportation Impact Fee Schedule ................................ 4
Table 2 Summary of LOVR Subarea Land Use Growth ....................................................... 7
Table 3 Land Use Category Descriptions .......................................................................... 9
Table 4 Summary of Improvements and Costs Included in the Fee Program ...................... 14
Table 5 LOVR Subarea Trip Rates and Total Trip Projections ............................................ 16
Table 6 Average Cost per Trip ...................................................................................... 17
Table 7 Maximum Updated Transportation Impact Fees for LOVR Subarea ......................... 18
List of Figures
Figure 1 Revised Geographic Areas of Updated Transportation Fee Program ........................ 12
Figure 2 LOVR Subarea Geography ................................................................................ 12
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1. INTRODUCTION AND OVERVIEW
This Los Osos Valley Road (LOVR) Subarea Transportation Impact Fee nexus study (Study)
provides the City of San Luis Obispo with the necessary technical documentation to support the
potential adoption of an updated LOVR transportation impact fee. Consistent with City policy,
the fee programs will help ensure that new development contributes its fair share to needed
infrastructure and public facilities, helping to sustain the City’s quality of life and economic
vitality as growth occurs.
Background
In 2018, the City adopted a comprehensive development impact fee program, including updated
transportation and parks fees and new public safety fees. The Citywide fee program was a key
implementation action of the 2014 Land Use and Circulation Element General Plan Update and
was guided by General Plan Policy 1.13.9, which requires that new development pays its
proportionate share of infrastructure costs. In addition, the General Plan Update resulted in
changes to the allowed land uses in the LOVR Subarea, rendering the LOVR Subarea fee land use
categories incompatible with proposed development.
At the time of the 2018 adoption of the Citywide fee program, the LOVR Subarea Transportation
fee, which was first established in 2003, was left in place “as is” and was not updated. Since the
Citywide fee program was adopted in 2018, planned development in the LOVR subarea is more
certain and transportation improvements (and costs) needed to serve the new development are
more defined.
This subarea fee update is intended to realign anticipated development and the required
outstanding transportation improvements. For example, the LOVR/U.S. 101 Interchange and
other associated improvements are complete and can be “retired” out of the fee program, while
outstanding reimbursement obligations and remaining projects are now defined and can be
included in the updated fee program. At the same time, the update will provide certainty to
developers about the rules and financial obligations they will face, as well as the reimbursement
obligations of the City, while ensuring that adequate infrastructure will be available to support
growth and enhance competitiveness.
This Study has been prepared by Economic & Planning Systems, Inc. (EPS) under the
management of the Public Works Department, input from stakeholders, and direction from City
Council. To the extent final fee levels will vary from the maximum, justifiable levels established
by this Study, the City Council will make this determination, based on a range of policy
considerations.
Legal Context
Consistent with General Plan policy, this Study provides the necessary technical analysis to
support a new schedule of development impact fees for the LOVR subarea up to the calculated
justifiable maximum to be enabled by Ordinance and adopted by Resolution.
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The City currently has an impact fee ordinance that enables the collection of fees for capital
facilities, pursuant to the Mitigation Fee Act and Government Code Section 66000 et seq. The
Mitigation Fee Act sets forth the procedural requirements for establishing and collecting
development impact fees. These procedures require that "a reasonable relationship, or nexus,
must exist between a governmental exaction and the purpose of the condition." The updated
fees described in this Study are consistent with the requirements of the Mitigation Fee Act
(Government Code Section 66000 et seq.) and the most recent relevant case law.
The key requirements of the Mitigation Fee Act that determine the structure, scope and amount
of the potential LOVR Subarea fee program are as follows:
• Collected for Capital Facility and Infrastructure Improvements Only. Development
impact fee revenue can be collected and used to cover the cost of capital facilities and
infrastructure that are required to serve new development in the LOVR Subarea. Impact fee
revenue cannot be used to cover the operation and maintenance costs of these or any other
facilities and infrastructure.
• Used to Fund Facility Needs Created by New Development Rather than Existing
Deficiencies. Impact fee revenues can only be used to pay for new or expanded capital
facilities needed to accommodate growth. Impact fee revenue cannot be collected or used to
cover the cost of existing deficiencies in the City’s capital facilities or infrastructure. In other
words, the cost of capital projects or facilities that are designed to meet the needs of the
City’s existing population must be funded through other sources. The costs associated with
improvements that serve the needs of both new development and the existing population
and employment are split on a “fair share” basis according to the proportion attributable to
each. Thus, the LOVR Subarea fee program funding will need to be augmented by the City
and other revenue sources to meet overall funding requirements.
• Fee Amount Must Be Based on A Rational Nexus. The amount of an impact fee must be
based on a reasonable nexus, or connection, between new development and the needs and
corresponding costs of the capital facilities and improvements need to accommodate it. As
such, an impact fee must be supported by specific findings that explain or demonstrate this
nexus or relationship. In addition, the impact fee amount must be structured such that the
revenue generated does not exceed the cost of providing the facility or improvement for
which the fee is imposed.
Summary of Maximum Fees
Based on the capital facilities needed to serve future development in the LOVR Subarea, the
associated portion of costs that can be allocated to new development, and the proportionate
allocation between different land uses, Table 1 presents the maximum LOVR Subarea impact
fees that can charged to new development to fund transportation improvements. The provisions
of the Mitigation Fee Act allow jurisdictions to include the costs of administering the impact fee
program in the maximum fee. Administration requirements include collecting and allocating
impact fee revenue, record keeping and reporting of fund activity, and periodic updates to the
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fee program. The City charges an administrative fee of 1.75 percent of the total fee program
cost.1
The revenues generated by the maximum fee schedule would cover new developments’ share of
the transportation needs associated with new development and not funded by direct developer
contributions. For example, the updated LOVR Subarea Fee program will fund outstanding
reimbursements from the City to Costco related to the Calle Joaquin Relocation as well as
remaining projects related to the Los Osos Valley Road/US 101 Interchange, including the south
bound on-ramp metering project. Under the maximum fee schedule, about $4.8 million in 2019
dollars would be generated for transportation improvement investments through buildout of the
Los Osos Valley Road Subarea.
The derivation of the maximum fees is provided in the subsequent chapter, and as discussed in a
subsequent section, to the extent fees are adopted at below their maximum levels, the
requirement for funding from other sources would increase.
1 The administrative add-on to the maximum development impact fees varies among California
jurisdictions. Where included, the addition is typically between 1.0 and 3.0 percent. This CFF
Program applies a 1.75 percent factor, in the middle of the range, and below the City’s 2.65 percent
building and planning cost for services fee.
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Table 1 Maximum LOVR Subarea Transportation Impact Fee Schedule
Fee Program Implementation
Fee Schedule Determination
This Study provides the City of San Luis Obispo with the necessary technical documentation to
support the adoption of updated LOVR Subarea transportation impact fees at the maximum
levels shown. The City Council can choose to adopt fees below these maximum levels. The
adoption of fees below the maximum level requires the City to “backfill” with additional funding
from other sources. This is in addition to the funding required from other funding sources that
will be required to fund the portions of the capital improvement costs that cannot be allocated to
new development.
Land Use Category
Residential
Single Family Residential $2,157 per unit
Multifamily Residential $1,445 per unit
Non-Residential
Retail $19,199 per 1,000 sq.ft.
Office/Services $3,063 per 1,000 sq.ft.
Industrial $1,704 per 1,000 sq.ft.
Institutional $1,726 per 1,000 sq.ft.
Lodging $1,316 per room
Other [1]$2,157 per PM Peak "Driveway" Trip
Avila Ranch
Single Family Residential $2,260 per unit
Multifamily Residential
Condominium $1,061 per unit
Apartment $1,308 per unit
Retail $24,160 per 1,000 sq.ft.
[1] The Life Plan component of the Froom Ranch project will pay on a per trip basis.
Updated LOVR Subarea Fee
Sources: City of San Luis Obispo; Avila Ranch Traffic Study; Economic & Planning
Systems, Inc.
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There are several economic and policy reasons why a City might choose to adopt fees below the
maximum level.2 One common reason relates to concerns over development feasibility, where
substantial increases in development impact fees are expected to substantially reduce the
feasibility of new development and/or create substantial disincentives to the types of
development that City policy is explicitly seeking to encourage.
It is the cumulative set of development fees that is important to development feasibility (along
with real estate market conditions and other development costs), not just individual fee
components. The City’s current fee program includes such policy discounts – specifically a 50
percent discount in the retail and hotel transportation development impact fees. However,
because the maximum fees, in most cases, are significantly lower than the existing fees, it is
unlikely that further policy reductions are warranted.
Fee Adoption and Implementation
Once selected, the preferred LOVR Subarea fee program and schedule will be adopted through
Ordinance and Resolution. The new Ordinance will address the primary implementation and
administrative issues and procedures associated with the LOVR Subarea fee. Then actual fee
levels will be set by Resolution. The Resolution approach to setting the fee allows periodic
adjustments of the fee amount that may be necessary over time, without amending the enabling
Ordinance. A list of the key implementation and administrative elements as required by the
Mitigation Fee Act are addressed in Chapter 4.
2 When there is concern about fee levels, the first step is to consider the capital improvements lists
that drive the maximum fee levels, where applicable, and ensure all improvements are necessary.
Once the City staff determined that all improvements were required, policy-based discounts are
considered, recognizing the need to “backfill” funding.
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2. LAND USE FORECASTS
This Chapter describes the future development assumptions for the LOVR Subarea based on
known development projects and planning applications in various stages of entitlement. The land
use assumptions utilized in this Study are an important driver of the maximum development
impact fee estimates.
There are five planned but unbuilt major development projects in the LOVR Subarea that are
contributing to the need for the LOVR/Highway 101 Interchange, associated projects, and costs.
The five development projects are described below and summarized on Table 2.
Projected Development Activity
Froom Ranch
The Froom Ranch property is located along Los Osos
Valley Road, northwest of U.S. 101. The development
program is based on the applicant’s 2017 Specific Plan.
The proposal includes 130 multifamily units, 30,000
square feet of retail space, a 120-room hotel, and a
continuing care retirement center, called Life Plan
Community. Life Plan Community is expected to
include 398 units, 72 beds, restaurant, and recreation
facilities. A 2.9-acre trailhead park and open space are
part of the Specific Plan.
Avila Ranch
The Avila Ranch Project will create a new City
neighborhood located at the northeast corner
of Buckley Road and Vachell Lane. The Avila
Ranch Development Plan allows up to 720
dwelling units; a “Town Center” with 15,000
square feet of local-serving retail and office
uses; 18 acres of pocket parks, mini-parks and
neighborhood parks; and 53 acres of open
space, including riparian corridors and farmed
agricultural land.
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McBride Gearhart
The McBride Gearhart property is located along Calle Joaquin, north of U.S. 101. Approximately,
42,700 square feet of retail space are anticipated, based on existing zoning and remaining
development capacity.
Pacific Beach High School Site
The Pacific Beach High School Site is located XXX. Approximately, 38 single family residential
units and 57,500 square feet of retail space are anticipated, based on existing zoning and
remaining development capacity.
LOVR Creekside
The Los Osos Valley Road Creekside property is located XXX. Approximately, 159 multifamily
residential units are anticipated, based on existing zoning and remaining development capacity.
Table 2 Summary of LOVR Subarea Land Use Growth
Development and Land Use Category
Froom Ranch
SFR 0 units
MFR 130 units
Life Plan
Hotel 120 rooms
Retail 30,000 sq.ft.
McBride Gearhart (Calle Joaquin)
Retail 42,688 sq.ft.
Avila Ranch
SFR (R-1)101 units
MFR (R-2)300 units
MFR (R-3 and R-4)319 units
Retail 15,000 sq.ft.
Pacific Beach High School Site
SFR 38 units
Retail 57,500 sq.ft.
LOVR Creekside (east of SLO Creek)
SFR 0 units
MFR 159 units
Total
Sources: City of San Luis Obispo; and Economic & Planning Systems, Inc.
Amount of Development
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Land Use Categories
Consistent with the Citywide fee program, the land use categories to be used in the updated
LOVR Subarea fee program are as follows:
• Residential
— Single family
— Multifamily
• Non-Residential
— Office/Services
— Retail
— Industrial
— Institutional
— Lodging
Table 3 provides the definitions of the different land uses associated with the City’s development
capacity estimates. These are the same definitions applied to the other development impact
fees, except where specifically noted. In the LOVR Subarea fee program, office and services are
combined.
Changes in Projected Development
Over time, it may become apparent that the development assumptions require refinement.
Business and real estate market cycles, growth management policies, and changes in land use
designations could all affect the expected/potential level of growth and development. Consistent
with other development impact fee programs, these changes are captured in the periodic
updates to fee programs that support a re-calibration of fee program assumptions.
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Table 3 Land Use Category Descriptions
Land Use Category Description and Examples [1]
Single Family Single family detached dwelling units, single family attached dwelling units
including Townhome-style units. A single Accessory Dwelling Unit (ADU) is
allowed as part of the construction of a single family home and is not
charged separate impact fees.
Multifamily Multifamily attached dwelling units and mobile homes.
Office Uses include professional services, financial institutions, administration-type
uses, including administration of private-sector utilities, and certain types of
services, such as tax return preparation, advertising agencies, photography
studios, pest control, building maintenance, employment agencies, security
and computer-related services.
Services Uses include offices and clinics of medical and health practitioners, religious
organizations, membership organizations, certain transportation uses,
beauty/barber shops, funeral services, and repair shops.
Retail Uses include regional- and neighborhood-serving retail establishments,
including retail as part of mixed-use developments. Specific uses include
restaurants, gas stations and auto care, movie theaters, fitness facilities,
warehouse stores, department stores, grocery stores, and amusement and
recreation services.
Industrial Uses include construction, manufacturing, and transportation uses, as well
as warehousing and storage. Ancillary office space included as part of
industrial development is included.
Institutional Uses include City, County, and State offices and facilities, health care
facilities such as Mental Health and Public Health services, Social services
such as County Social Services, CA Employment Development and
Rehabilitation, Homeless shelters, and cultural and public recreation
facilities.
Lodging Uses include resorts, hotels, motels, and bed and breakfast inns.
Sources: City of San Luis Obispo Parcel Data SIC Correspondence; Economic & Planning Systems, Inc.
[1] This table provides a summary only. For more specific direction, refer to the City of San Luis Obispo Parcel Data
SIC Correspondence table.
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3. LOVR SUBAREA TRANSPORTATION IMPACT FEE
This Chapter establishes the maximum LOVR Subarea transportation impact fees under the
Mitigation Fee Act that could be required of new development in the LOVR Subarea. These fees
represent an update to the existing LOVR Subarea transportation impact fee program in the City,
and will apply to all new development in the LOVR Subarea unless project-specific terms or
agreements may apply.
The updated LOVR Subarea transportation fee program addresses updates to the LOVR/U.S. 101
Interchange project and associated improvements and cost estimates that are the basis of the
fee program. As noted previously, it is the City’s policy to ensure that new development pays for
its fair share of the cost of transportation improvements, and the transportation impact fee
program is one of the City’s key strategies for doing so.
Mitigation Fee Act Nexus Findings
Nexus findings are provided below addressing: 1) the purpose of the fee; 2) the specific use of
fee revenue; 3) the relationship between the facility and the type of development; 4) the
relationship between the need for the facility and the type of development; and 5) the
relationship between the amount of the fee and the proportionality of cost specifically
attributable to development. The technical information and calculations provided below support
these nexus findings/requirements.
Purpose
New development in the LOVR Subarea required installation of the LOVR/U.S. 101 Interchange
and associated improvements. The revenue collected from the LOVR Subarea transportation fee
program will help maintain adequate levels of transportation service in the Subarea and in the
City of San Luis Obispo by mitigating the impact that new development will have on the City’s
transportation system.
Use of Fee
Fee revenue will be used to help fund City transportation improvements or the City’s share of
regional improvements, including regional interchanges, as well as financing costs and the
reimbursement of upfront investments from other City funds for transportation improvements
required to serve future growth. A detailed project list is included in Appendix A of this study.
Relationship
New residential and commercial development in the LOVR Subarea will increase the average
number of “P.M. Peak” vehicle trips in the area, thereby increasing demands for and travel
through the LOVR/U.S. 101 Interchange. “P.M. Peak” trip data by land use category underscores
the relationship between the type of new development and the needed transportation facilities.
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Need
But for new development in the LOVR Subarea and the associated increase in trips, the
LOVR/U.S. 101 Interchange improvement would not be needed. The transportation
improvements considered in this study are considered necessary to meet the Subarea’s, and
therefore the City's, future transportation needs under General Plan buildout.
Proportionality
The maximum fee levels are established by land use category based on planned and anticipated
development activity in the Subarea, using established “P.M. Peak” trip rates. Total costs and
total trips are used to calculate a per trip cost, which is then multiplied by the appropriate trip
rate, ensuring proportionality.
Geography of the LOVR Subarea Fee Program
In 2018, the Citywide Transportation Impact Fee update created a citywide fee geography that
subsumed the Airport Area Specific Plan and Margarita Area Specific Plan subarea transportation
impact fee programs. The LOVR Subarea and the Orcutt Area Specific Plan Subarea remained in
place, such that new development in either of those two areas pays the appropriate Citywide fee
plus the applicable subarea fee.
Figure 1 below presents the revised geographies associated with the updated transportation fee
program. Figure 2 shows the LOVR Subarea in more detail.
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Figure 1 Revised Geographic Areas of Updated Transportation Fee Program
Figure 2 LOVR Subarea Geography
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Transportation Improvements and Cost Estimates
Since the Citywide fee program was adopted in 2018, planned development in the LOVR subarea
is more certain and transportation improvements (and costs) needed to serve the new
development are more defined. The improvements that are the basis for the transportation
impact fee update are provided by the City of San Luis Obispo and derived from several sources:
• The City’s existing Citywide transportation impact fee program, which was updated in 2018.
• The Los Osos Valley Road Subarea transportation impact fee program, last updated in 2003.
• The Agreement between the City of San Luis Obispo and the Avila Ranch developer, dated
April 2018.
Transportation Improvements
The transportation improvements and costs remaining in the LOVR Subarea fee program include
the following:
• Outstanding reimbursements to Costco from the City related to the Calle Joaquin Relocation,
and
• Remaining projects related to the Los Osos Valley Road/US 101 Interchange, including the
south bound on-ramp metering project.
Total Project Costs
The infrastructure identified for this update are necessary to support buildout of the LOVR
subarea, for consistency with General Plan policy, and/or because there are reimbursement
commitments in place. Table 4 provides a summary of improvements and costs included in the
fee update.
The full project costs associated with each improvement are not necessarily included in the
transportation fee program. For example, funding from other sources is assumed for certain
projects, including, for example, bond proceeds. Where other funding sources are available, that
available funding is subtracted from the total project costs and only the balance of the project
costs is included in the fee program.
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Table 4 Summary of Improvements and Costs Included in the Fee Program
The detailed project improvement list is provided as Appendix A and shows the full sources and
uses accounting. The project list was prepared by City staff and reviewed and formatted by EPS.
Full project cost estimates for each improvement are presented. For regional projects, cost
estimates are prepared by CalTrans; in other cases, cost estimates are provided by developers
who will have responsibility for building the improvements; and still, in other cases, cost
estimates are provided by Wallace Group, a cost estimator consultant to the City. For those
projects for which financing costs are included, those cost estimates were provided by the City’s
engineering and cost consultant. All costs are provided in 2019 dollars. It is important to note
that the project list represents a current list of transportation improvements for the purposes of
Ref. Item
Amount to Be Funded
by Updated LOVR
Subarea Fee
Phase 1: Calle Joaquin Relocation
T1 Hanson Right-of-Way $112,053
T2 Hanson Driveways Paid by City $0
T3 Hanson Outstanding Legal Costs $800,000
T4 Madonna Right-of-Way $0
T5 Total Costco Calle Joaquin Relocation Construction Cost $1,048,269
T6 Annual CPI Adjustment Costco $921,375
Subtotal Phase 1 Costs $2,881,697
Phase 1: Adjustments
T3a Costco Fair-Share Adjustment (25.3%)($243,515)
T5a Costs in Calle Joaquin Agreement Paid Directly by City ($12,917)
Subtotal Phase 1 Adjustments ($256,432)
Adjusted Subtotal Phase 1 Costs $2,625,265
Remaining Projects
R1 Interchange Landscaping Project $0
R2 Environmental Mitigation $0
R3 Los Verdes Interchange Settlement $105,000
R4 Mitigation Auto Park Way/LOVR $225,000
R5 South Bound On-Ramp Metering $1,750,000
R6 Calle Joaquin Park and Ride Lot $72,204
Subtotal Remaining Projects $2,152,204
Total LOVR Subarea Transportation Fee Costs $4,777,469
Source: City of San Luis Obispo.
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the calculation of the development impact fee and broader financial planning. Over time, as part
of the periodic, formal updates, it is possible that new projects may be added and current
projects modified.
Cost Allocation to New Development
The allocation of costs between new and existing development and by land use is a critical
component of the fee nexus analysis. All of the transportation improvements included in the
LOVR subarea fee program update, listed in Appendix A and summarized in Table 4, will
benefit new development in the Los Osos Valley Road subarea. More specifically, the
improvements would not be needed but for the future development in the LOVR Subarea.
Fee Calculation
The fee calculations are based on an average cost per trip that is the result of dividing the costs
of the improvements that are attributable to new development by the number of P.M. Peak
“Driveway” trips that are generated by the projected new development. “Driveway” trip rates
vary from “All Legs” trip rates in that the “driveway” trip rates do not count stops along the way
that result in multiple legs as their own trips. For example, a trip from home to work with a stop
at the store along the way is counted as one driveway trip but two all legs trips.
The average cost per trip is then multiplied by the trip rate associated with each land use
category to calculate maximum fees by land use category. These steps are described in more
detail below.
LOVR Subarea Development Projections and Trip Generation
Development projections for the LOVR Subarea indicate new development of 1,047 residential
units, 120 hotel rooms, and 145,188 square feet of non-residential uses. The Froom Ranch
development includes a mixed-use continuing care retirement community, called Life Plan. Trips
are measured and forecast in terms of “P.M. Peak” trips, which were provided by City staff based
on trip generation data from the Institute of Transportation Engineers (ITE).
As part of a separate agreement between the City and the Avila Ranch developer, new
development that is part of the Avila Ranch project will pay development impact fees based on
trip rate generation factors that account for internal trip capture given the location, type, and
amount of development associated with the project. Trip rates and total trips projected for Avila
Ranch are summarized in Table 9 of the Avila Ranch Traffic Study.
Also of note, the Froom Ranch project includes a continuing care component called Life Plan. The
Life Plan component includes a mix of features, including multifamily units, “beds” associated
with an assisted living facility, a restaurant, and recreation facilities. The total trips for Froom
Ranch’s Life Plan are estimated for the project overall rather than for the component land uses.
As such, the Life Plan component will pay the “per trip” fee based on the total trips generated.
Total trips in the LOVR Subarea are estimated to be 2,214.7, all of which are due to new
development. Table 5 presents the trip rate estimates by land use category and total trips based
on the growth forecasts.
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Table 5 LOVR Subarea Trip Rates and Total Trip Projections
Cost per Trip
The cost allocation to new development in the LOVR Subarea divided by the total new trips
generated by new development results in average cost per trip of approximately $2,157, as
shown on Table 6.
Development and Land Use Category
Trip Rate
(PM Peak)Total Trips
Froom Ranch
SFR 0 units
MFR 130 units 0.670 87.1
Life Plan 136.4
Hotel 120 rooms 0.610 73.2
Retail 30,000 sq.ft.8.900 267.0
McBride Gearhart (Calle Joaquin)
Retail 42,688 sq.ft.8.900 379.9
Avila Ranch
SFR (R-1)101 units 1.048 105.8
MFR (R-2)300 units 0.492 147.5
MFR (R-3 and R-4)319 units 0.606 193.5
Retail 15,000 sq.ft.11.200 168.0
Pacific Beach High School Site
SFR 38 units 1.000 38.0
Retail 57,500 sq.ft.8.900 511.8
LOVR Creekside (east of SLO Creek)
SFR 0 units 1.000 0.0
MFR 159 units 0.670 106.5
Total 2,214.7
Sources: City of San Luis Obispo; and Economic & Planning Systems, Inc.
Amount of Development
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Table 6 Average Cost per Trip
Fees by Land Use Category
Using the calculated cost per trip and the P.M. peak trips for each land use category, the
maximum justifiable fees for the LOVR Subarea are calculated and presented in Table 7. The
maximum fees are shown relative to the existing LOVR Subarea fees. Developers in the LOVR
Subarea will be expected to pay the LOVR Subarea fee in addition to the Citywide transportation
impact fee.
Item
Total Costs and
Cost per Trip
Calle Joaquin Relocation $2,625,265
Remaining Projects $2,152,204
Total to Be Funded by the LOVR Subarea Fee $4,777,469
Total New Trips Generated by New Development in LOVR Subarea 2,214.7
Cost per Trip $2,157
Sources: City of San Luis Obispo; and Economic & Planning Systems, Inc.
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Table 7 Maximum Updated Transportation Impact Fees for LOVR Subarea
Land Use Category Metric
Current as of
7/1/2018
Proposed Update
July 2019 % Change
Residential
Single Family Residential per unit $6,469 $2,157 -67%
Multifamily Residential per unit $4,249 $1,445 -66%
Non-Residential
Retail per 1,000 sq.ft. $15,614 $19,199 23%
Office/Services per 1,000 sq.ft. $3,063
Service Commercial per 1,000 sq.ft. $9,511
Business Park per 1,000 sq.ft. $8,197
Industrial per 1,000 sq.ft. $4,697 $1,704 -64%
Institutional per 1,000 sq.ft. $1,726
Lodging per room $3,526 $1,316 -63%
Other [1]per PM Trip $6,341 $2,157 -66%
Avila Ranch
Single Family Residential per unit $2,260
Multifamily Residential
Condominium per unit $1,061
Apartment per unit $1,308
Retail per 1,000 sq.ft. $24,160
[1] The Life Plan component of the Froom Ranch project will pay on a per trip basis.
Sources: City of San Luis Obispo; Avila Ranch Traffic Study; Economic & Planning Systems, Inc.
Current and Proposed LOVR Subarea Fee
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4. IMPLEMENTATION AND ADMINISTRATION
The updated LOVR Subarea fee program nexus study and corresponding fee schedule will need
to be adopted by City Resolution as enabled by the City’s Fee Ordinance. The existing Ordinance
allows the City Council to adopt, by Resolution, a fee schedule consistent with supporting
technical analysis and findings provided in this Report. The Resolution approach to setting the
fee allows periodic adjustments of the fee amount that may be necessary over time, without
amending the enabling Ordinance. It is anticipated that the City will update the existing LOVR
Subarea Ordinance as part of this study process. This updated ordinance addresses the primary
implementation and administrative issues and procedures associated with the LOVR Subarea fee.
A brief summary of the key implementation and administrative elements is provided below.
Fee Collection and Amount
Applicable Land Uses
All new development that occurs within the LOVR Subarea, unless specifically exempted by the
enabling ordinance, shall pay the LOVR Subarea fee. While the maximum fee amount will be
determined by the Mitigation Fee Act Study, the City may elect to charge less for a variety of
reasons and under certain circumstances, as described in the Ordinance. In any case, the
applicable fees will be published in a Fee Schedule made available by the City and updated
periodically. The amount will vary by land use, as shown in Table 1.
It is possible that certain projects may not fit neatly into the categories defined in Table 3. In
cases were such ambiguity exists, the City Community Development Director will need to make a
determination as to the applicable fees. The Fee Ordinance articulates guidelines for resolving
discrepancies and/or disputes.
Fee Escalation
The City Fee Ordinance allows for an automatic adjustment of the fee to keep pace with
inflationary increases in construction costs. This allows the fee level to keep pace with inflation
without requiring an annual approval process. This adjustment is based on the Construction Cost
Index (CCI) published by the Engineering News Record (ENR), a source widely used in the
construction industry, and by many jurisdictions as a basis for making annual inflation
adjustments to their development impact fees. ENR’s CCI has been published consistently every
month since 1967. As such ENR is one of the most reliable and consistent indices that track
trends in construction costs.
Timing and Manner of Payment
The Ordinance addresses issues related to the timing and manner of payment for the fee
including the potential for fee deferrals, payment plans, credits and reimbursements,
exemptions, and related adjustments.
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Annual Review, Accounting, and Updates
Annual review
This Report and the technical information it contains should be maintained and reviewed
periodically by the City as necessary to ensure impact fee accuracy and to enable the adequate
programming of funding sources. To the extent that improvement requirements, costs, or
development potential changes over time, the fee program will need to be updated. Specifically,
AB 1600 (at Gov. Code §§ 66001(c), 66006(b)(1)) stipulates that each local agency that requires
payment of a fee make specific information available to the public annually within 180 days of
the last day of the fiscal year. This information includes the following:
• A description of the type of fee in the account
• The amount of the fee
• The beginning and ending balance of the fund
• The amount of fees collected and interest earned
• Identification of the improvements constructed
• The total cost of the improvements constructed
• The fees expended to construct the improvement
• The percent of total costs funded by the fee
If sufficient fees have been collected to fund the construction of an improvement, the agency
must specify the approximate date for construction of that improvement. Because of the
dynamic nature of growth and infrastructure requirements, the City should monitor development
activity, the need for infrastructure improvements, and the adequacy of the fee revenues and
other available funding. Formal annual review of the fee program should occur, at which time
adjustments should be made. Costs associated with this monitoring and updating effort are
included in the impact fee by way of the administrative charge.
Surplus Funds
AB 1600 also requires that if any portion of a fee remains unexpended or uncommitted in an
account for five years or more after deposit of the fee, the City Council shall make findings once
each year: (1) to identify the purpose to which the fee is to be put, (2) to demonstrate a
reasonable relationship between the fee and the purpose for which it was charged, (3) to identify
all sources and amounts of funding anticipated to complete financing of incomplete
improvements, and (4) to designate the approximate dates on which the funding identified in (3)
is expected to be deposited into the appropriate fund.
If adequate funding has been collected for a certain improvement, an approximate date must be
specified as to when construction on the improvement will begin. If the findings show no need
for the unspent funds, or if the conditions discussed above are not met, and the administrative
costs of the refund do not exceed the refund itself, the local agency that has collected the funds
must refund them.
Internal Loaning of Funds
Loans between the Capital Facilities Fee Funds may be used from time to time to facilitate the
construction of CFF facilities and assure adequate cash flow. Any such loan shall be made in
accordance with applicable law, as interpreted by the City Attorney of the City of San Luis
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Obispo, and all funds shall be placed in separate accounts on either a facility or geographic basis.
The additional following requirements are also placed on loans between impact fee funds:
1. Funds may be transferred between accounts to expedite the construction of critical
projects/facilities.
2. A mechanism to repay accounts shall be established.
3. Interest charged on each loan shall be based upon the Local Agency Investment Fund rate in
effect at the time of the loan and shall be deposited into the account providing the loan.
4. Inter-fund loan repayments shall take precedence over reimbursements to developers.
Five-Year Update
Fees will be collected from new development within the LOVR Subarea as soon as the fee
program is adopted; however, use of these funds may need to wait until a sufficient fund balance
can be accrued. Per Government Code Section 66006, the City is required to deposit, invest,
account for, and expend the fees in a prescribed manner. The fifth fiscal year following the first
deposit into the Fee account or fund, and every five years thereafter, the City is required to
make all of the following findings with respect to that portion of the account or fund remaining
unexpended:
• Identify the purpose for which the fee is to be put;
• Demonstrate a reasonable relationship between the fee and the purpose for which it is
charged;
• Identify all sources and amounts of funding anticipated to complete financing in incomplete
improvements; and
• Designate the approximate dates on that the funding referred to in the above paragraph is
expected to be deposited in the appropriate account or fund.
Once sufficient funds have been collected to complete the specified projects, the City must
commence construction within 180 days. If they fail to do this, the City is required to refund the
unexpended portion of the fee and any accrued interest to the then current owner.
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APPENDIX A:
LOVR Subarea Transportation Impact Fee
Improvement and Cost List
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Appendix A Table 1US 101/Los Osos Valley Road Interchange Project List and Costs LOVR Subarea Transportation Impact Fee Update; EPS #191011Ref. ItemGross Total CostLOVR Subarea Allocation Net Total CostFunding to be Identified Identified FundingCounty of SLO SLOCOG RTIPCitywide TIF (Paid)TIF Debt Issuance (Bond) General FundDeveloper ContributionsCity Of San Luis LOVR Subarea Fee (Paid)SLO LOVR Subarea CreditLOVR Subarea Remaining To Be Paid (Costco) LOVR Subarea Fee Citywide TIFPhase 1: Calle Joaquin RelocationT1Hanson Right-of-Way$112,0531100.0% $112,053$0$112,053$112,053T2Hanson Driveways Paid by City$50,0002100.0% $50,000$0$50,000$50,000T3Hanson Outstanding Legal Costs$800,0003100.0% $800,000$0$800,000$800,000T3aCostco Fair-Share Adjustment (25.3%)($243,515)100.0% ($243,515)$0 ($243,515)($243,515)T4Madonna Right-of-Way$342,613100.0% $342,613$0$342,613$166,000 $176,613T5Total Costco Calle Joaquin Relocation Construction Cost$6,641,110100.0% $6,641,110$0 $6,641,110$3,911,841 $1,681,000$1,048,269T5aCosts in Calle Joaquin Agreement Paid Directly by City($12,917)100.0% ($12,917)$0($12,917)($12,917)T6Annual CPI Adjustment Costco$921,375100.0% $921,375$0$921,375$921,375Subtotal Phase 1 Costs$8,610,719$8,610,719$0 $8,610,719$0$0$0$0$0$0 $4,127,841 $1,857,613$2,625,265$0$0Phase 2: Madonna LOVR Sidewalk ExtensionT7Construction, Et Al. $234,000100.0% $234,000$0$234,000$234,000Subtotal Phase 2 Costs$234,000$234,000$0$234,000$0$0$0$0$0$0$0 $234,000$0$0$0Phase 3: Full Interchange PreconstructionT8PSR-PDS$189,000 100.0% $189,000 $0 $189,000 $30,000 $100,000 $59,000T9Caltran PA/ED - Phase I $143,000 100.0% $143,000 $0 $143,000 $111,000$32,000T10Caltran PA/ED - Phase II, Value Analysis, Misc. $851,300 100.0% $851,300$0$851,300$265,600$585,700T11PS&E, Permits$2,735,676100.0% $2,735,676$0 $2,735,676$2,601,120$75,000$59,556T12Legal - Los Verdes$26,240100.0% $26,240$0$26,240$26,240T13Right of Way$90,865100.0% $90,865$0$90,865$90,865Subtotal Preconstruction$4,036,081$4,036,081$0 $4,036,081 $30,000 $100,000 $3,153,825$0 $75,000 $617,700 $59,556$0$0$0$0ConstructionT15Project 99821 Construction Charges $18,276,550 100.0% $18,276,550 $0 $18,276,550$15,574,055$2,702,495T16PM Services (Charged to Project)$830,290100.0% $830,290$0$830,290$0 $830,290T17Construction Management/Inspection/Permits$2,825,867100.0% $2,825,867$0 $2,825,867$819,418 $2,006,449T18Misc Work (Project Management)$5,057100.0%$5,057$0$5,057$5,057T19RE Support Services (Dokken)$238,852100.0% $238,852$0$238,852$0$238,852Subtotal Construction$22,176,616$22,176,616$0 $22,176,616$0 $15,574,055 $824,475 $5,778,086$0$0$0$0$0$0$0Subtotal Phase 3 Costs$26,212,697$26,212,697$0 $26,212,697 $30,000 $15,674,055 $3,978,300 $5,778,086 $75,000 $617,700 $59,556$0$0$0$0FinancingT20Bond, Amount Principal$6,813,8824100.0% $6,813,882$0 $6,813,882$6,813,882Bond, Amount Interest$4,502,661100.0% $4,502,661$0 $4,502,661$4,502,661Bond, Cost of Insurance Fund$213,398100.0% $213,398$0$213,398$213,398Bond, Underwriter $106,892100.0% $106,892$0$106,892$106,892Subtotal Financing Costs$11,636,833$11,636,833$0 $11,636,833$0$0$0$0$0$0$0$0$0$0 $11,636,833Total LOVR Interchange Costs To Date$46,694,249$46,694,249$0 $46,694,249 $30,000 $15,674,055 $3,978,300 $5,778,086 $75,000 $617,700 $4,187,397 $2,091,613$2,625,265$0 $11,636,833Remaining ProjectsR1Interchange Landscaping Project$550,000100.0% $550,000$0$550,000$550,000R2Environmental Mitigation$250,0005100.0% $250,000$0$250,000$250,000R3Los Verdes Interchange Settlement$105,0006100.0% $105,000$0$105,000$105,000R4Mitigation Auto Park Way/LOVR$225,000100.0% $225,000$0$225,000$225,000R5South Bound On-Ramp Metering$1,750,0007100.0% $1,750,000$0 $1,750,000$1,750,000R6Calle Joaquin Park and Ride Lot$308,000NA$308,000$0$308,000$235,796$72,204Subtotal Remaining Projects$3,188,000$3,188,000$0 $3,188,000$0$0$0 $1,035,796$0$0$0$0$0 $2,152,204$0Total Transportation Improvements$49,882,249$49,882,249$0 $49,882,249 $30,000 $15,674,055 $3,978,300 $6,813,882 $75,000 $617,700 $4,187,397 $2,091,613$2,625,265 $2,152,204 $11,636,8331See court settlement decision. Includes additional $34,409 paid directly by the City but does not include legal expenses. 2Still to be built and reimbursed.3Costco estimate of Hanson attorney fees is $631,523 through August 2009. Amount is increased to $800,000 to account for fees incurred to date. This is the best available estimate as of April 2019.4Reflects principal amount of $7,503,682.05 less $689,800 that was transferred to the General Fund for LOVR paving. Use of bond proceeds is shown in "TIF Debt Issuance (Bond)" column. Improvement R6, the Calle Joaquin Park and Ride Lot, is partially funded through bond proceeds with the remainder to be funded through the updated LOVR Subarea Fee Program. 5Adjusted to $250,000 based on discussions with F. Otte. This is the best available estimate as of April 2019.6Initial studies are complete and do not indicate required mitigation; however the direction from the City is to maintain this line item at $105,000 until further resolution. This is the best available estimate as of April 2019.7Improvements to be constructed by Avila Ranch; cost estimate provided by Avila Ranch. Sources: City of San Luis Obispo; Goodwin Consulting Group, Inc. (2009); The Wallace Group; Watson Planning Consultants.Already FundedTo Be FundedEconomic & Planning Systems, Inc. 6/6/2019Y:\Projects\Oakland\191000s\191011_SLO LOVR Transportation Fee Update\Data and Model\191011_LOVR Subarea Fee Update_2019June06.xlsxPacket Pg. 231Item 11
APPENDIX B:
Trip Generation Rate Source and Comparison
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Appendix B Table 1Trip Rate Sources and EquivalenciesLOVR Subarea Transportation Impact Fee Update; EPS #191011Source and MethodologyNotesITE Trip Generation ManuelADT, "Driveway" Rates9.440 per unit7.320 per unit9.740 per 1,000 sq.ft. 37.750 per 1,000 sq.ft. 3.930 per 1,000 sq.ft. 6.950 per 1,000 sq.ft. 8.360 per roomPM Peak, "Driveway" Rates1.000 per unit0.670 per unit1.420 per 1,000 sq.ft.8.900per 1,000 sq.ft. 0.790 per 1,000 sq.ft. 0.800 per 1,000 sq.ft. 0.610 per roomCity Transportation ModelADT, "All Legs" RatesUsed in 2018 Citywide Fee Update 16.240 per unit12.620 per unit18.450 per 1,000 sq.ft. 56.920 per 1,000 sq.ft. 11.330 per 1,000 sq.ft. 18.450 per 1,000 sq.ft. 16.380 per roomADT, "Driveway" RatesCalculated as total Daily Trips per unit 10.457 per unit 5.564 per unit6.458 per unit131.933 per 1,000 sq.ft.PM Peak, "Driveway" RatesCalculated as total PM Trips per unit 1.048 per unit 0.492 per unit0.606 per unit11.200 per 1,000 sq.ft.Froom Ranch Traffic StudyLife Plan (Froom), PM Peak, "Driveway" Rates136.400 total tripsLOVR Subarea 2019 UpdatePM Peak, "Driveway" RatesConsistent with ITE rates1.000 per unit0.670 per unit1.420 per 1,000 sq.ft. 8.900 per 1,000 sq.ft. 0.790 per 1,000 sq.ft. 0.800 per 1,000 sq.ft. 0.610 per roomSources: City of San Luis Obispo; Avila Ranch Traffic Study. Avila Ranch Traffic StudyNonresidentialSingle FamilyITE Code: 210MultifamilyITE Code: 220Office/ServiceITE Code: 710RetailITE Code: 820IndustrialITE Code: 140InstitutionalITE Code: 560LodgingITE Code: 310Medium DensityHigh DensityLarger MF, R-2(305 Condos)Smaller MF, R-3 and R-4(310 Apts.)ResidentialEconomic & Planning Systems, Inc. 6/6/2019Y:\Projects\Oakland\191000s\191011_SLO LOVR Transportation Fee Update\Data and Model\191011_LOVR Subarea Fee Update_2019June06.xlsxPacket Pg. 233Item 11
RESOLUTION NO. _____ (2019 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AMENDING CITYWIDE TRANSPORTATION
IMPACT FEE PROGRAM
WHEREAS, existing local, state and federal resources are insufficient to meet the City of
San Luis Obispo’s needs for transportation improvements; and
WHEREAS, new development generally increases the demand for transportation
improvements and affect the quality of the community’s infrastructure; and
WHEREAS, the public interest, convenience, health, safety and/or welfare require that
transportation improvements be provided for the maintenance and enhancement of the quality of
life of the City’s residents; and
WHEREAS, the City of San Luis Obispo has a critical need to ensure that impacts from
new development on the City’s transportation network are addressed, and development impact
fees are a commonly used mechanism to address this need; and
WHEREAS, Article XI, Section 5 of the California Constitution provides that the City, as
a home rule charter city, has the power to make and enforce all ordinances and regulations in
respect to municipal affairs, and Article XI, Section 7, empowers the City to enact measures that
protect the health, safety, and/or welfare of its residents; and
WHEREAS, Section 203 of the San Luis Obispo City Charter provides that the City has
the right and power to make and enforce all laws and regulations in respect to municipal affairs;
and
WHEREAS, the Mitigation Fee Act (AB 1600), codified in California Government Code
Sections 66000-66025, establishes the legal requirements for a jurisdiction to implement a
development impact fee program in conformance with constitutional standards; and
WHEREAS, many cities and counties have adopted and imposed capital improvement
impact fees on new development to ensure that impacts from new development are addressed; and
WHEREAS, in April 2018, the City Council adopted the Citywide Capital Facilities Fee
program; and
WHEREAS, since adoption of the Citywide Capital Facilities Fee program more accurate
cost assumptions are now known for projects #4, #9, #7, & #13.
WHEREAS, since adoption more accurate land use assumptions are now known for the
proposed Froom Ranch Specific Plan.
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WHEREAS, an analysis of the updated Citywide Transportation Impact fee based on
updated land use and costs assumptions is provided in the Citywide Transportation Impact Fee
Program Nexus Study, and which includes cost information for the identified transportation
projects, is included in the attached Exhibits A and incorporated herein by this reference.
WHEREAS, by this Resolution, the City Council intends on establishing the fee levels.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. Findings
a) The purpose of development impact fees is to protect the public health, safety, and
general welfare by providing adequate transportation, park and recreation, fire,
police, and general government facilities to satisfy the needs of new development
and to mitigate the impacts of new development on the City’s capital facilities and
improvements.
b) The development impact fees collected pursuant to this Resolution shall be used
only to pay for facilities and improvements identified in the Citywide
Transportation Impact Fee Update Nexus Study and shall not be in lieu of any other
fee or tax as may be required by the Municipal Code.
c) There is a reasonable relationship between the types of development on which the
development impact fees are imposed and the use of the development impact fees
and the need for the facilities and improvements. All new development requires
adequate transportation infrastructure to protect the public health and safety.
d) As required by Government Code Section 66001 et seq., there is a reasonable
relationship between the amount of the development impact fee and the cost of the
improvements attributable to the developments on which the development impact
fees are imposed. The estimated costs of facilities and improvements, including
financing costs, to be paid for as shown in the Citywide Transportation Impact Fee
Update Nexus Study, for the City of San Luis Obispo, dated June 18th, 2019,
prepared by Economic & Planning Systems, Inc., the findings and analysis of which
are hereby incorporated by reference, have been allocated to new development in a
proportional manner based on trip generation rates.
SECTION 2. Cost Estimates. At any time that the actual or estimated costs of facilities
identified in the development impact fee analysis changes, the Finance Director shall review the
development impact fee and determine whether the change affects the amount of the development
impact fees. If the development impact fees are significantly affected, the Finance Director shall,
within thirty (30) days, recommend to the Council that an updated impact fee nexus study be
prepared.
SECTION 3. Amount of Development Impact Fees. Effective July 1, 2019, development
impact fees for capital improvement infrastructure associated with transportation, shall be in the
amounts set forth in Exhibits A and B attached hereto. Unless otherwise acted upon by the Council,
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the amount of the development impact fees will automatically be adjusted on July 1 of each
subsequent year by the Municipal Cost Index for the prior year.
Upon motion of _______________________, seconded by _______________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2019.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of ______________, 2019.
____________________________________
Teresa Purrington
City Clerk
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EXHIBIT A
CAPITAL FACILITIES DEVELOPMENT IMPACT FEES
Effective July 1, 2019
July
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Citywide Transportation Impact Fee
Update Nexus Study
Prepared for:
City of San Luis Obispo
Prepared by:
Economic & Planning Systems, Inc.
June 19, 2019
EPS #191053
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Table of Contents
1. INTRODUCTION AND OVERVIEW ................................................................................. 1
Background .............................................................................................................. 1
Legal Context ........................................................................................................... 1
Summary of Maximum Fees ....................................................................................... 2
Fee Program Implementation ..................................................................................... 5
Organization of Report ............................................................................................... 5
2. LAND USE AND DEVELOPMENT CAPACITY FORECASTS ........................................................ 6
Land Use Categories and Growth Assumptions .............................................................. 7
Changes in Growth Forecasts/Development Capacity ..................................................... 7
3. TRANSPORTATION IMPACT FEE .................................................................................. 9
Mitigation Fee Act Nexus Findings ............................................................................... 9
Geography of Transportation Fee Program ................................................................. 10
Transportation Improvements and Cost Estimates ...................................................... 11
Fee Calculation ....................................................................................................... 13
4. IMPLEMENTATION AND ADMINISTRATION OF CFF ........................................................... 19
Fee Collection and Amount ....................................................................................... 19
Annual Review, Accounting, and Updates ................................................................... 20
Securing Supplemental Funding ................................................................................ 21
Appendices
APPENDIX A: Transportation Impact Fee Improvement List and Cost Allocation
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List of Tables
Table 1 Maximum Updated Transportation Impact Fee Program Schedule ............................ 4
Table 2 Existing, Growth, and Buildout Trip Generation ..................................................... 6
Table 3 2018 Trip Generation Compared with 2019 Trip Generation .................................... 7
Table 4 Land Use Category Descriptions .......................................................................... 8
Table 5 Summary of Types of Transportation Improvements and Costs ............................. 12
Table 6 Summary of Cost Allocations ............................................................................ 13
Table 7 Existing, Growth, and Buildout Trip Generation ................................................... 15
Table 8 Average Cost per Trip ...................................................................................... 15
Table 9 Trip Generation Rates and Components of Maximum Fee Calculations.................... 17
Table 10 Summary of Maximum Citywide Transportation Fees ........................................... 18
List of Figures
Figure 1 Revised Geographic Areas of Updated Transportation Fee Program ........................ 10
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1. INTRODUCTION AND OVERVIEW
This Citywide Transportation Impact Fee Update nexus study (Study) provides the City of San
Luis Obispo with the necessary technical documentation to support the potential adoption of
updated transportation impact fees. Consistent with City policy, the updated transportation fee
program will help ensure that new development contributes its fair share to needed
infrastructure and public facilities, helping to sustain the City’s quality of life and economic
vitality as growth occurs.
Background
In 2018, the City adopted a comprehensive development impact fee program, including updated
transportation and parks fees and new public safety fees. The Citywide fee program was a key
implementation action of the 2014 Land Use and Circulation Element General Plan Update and
was guided by General Plan Policy 1.13.9, which requires that new development pays its
proportionate share of infrastructure costs.
Since the Citywide transportation fee program was adopted in 2018, the scope and cost
estimates of certain of the transportation improvements needed to serve new development are
more defined, and the planned development in the Los Osos Valley Road (LOVR) Subarea is
more refined, which affects the Citywide growth projections. This fee update is intended to
realign anticipated development and the required transportation improvements. At the same
time, the update will provide certainty to developers about the rules and financial obligations
they will face, as well as the reimbursement obligations of the City, while ensuring that adequate
infrastructure will be available to support growth and enhance competitiveness.
To the extent final fee levels will vary from the maximum, justifiable levels established by this
Study, the City Council will make this determination, based on a range of policy considerations.
In 2018, the City Council approved a fee structure that allows residential units to be charged on
a per square foot basis, and approved fee discounts for office service (discount of 15 percent),
retail (discount of 60 percent), industrial (discount of 15 percent), and lodging (discount of 60
percent).
This Study has been prepared by Economic & Planning Systems, Inc. (EPS) under the
management of the Public Works Department.
Legal Context
Consistent with General Plan policy, this Study provides the necessary technical analysis to
support an updated schedule of transportation development impact fees up to the calculated
justifiable maximum. The City currently has an impact fee ordinance that enables the collection
of fees for capital facilities, pursuant to the Mitigation Fee Act and Government Code Section
66000 et seq. The Mitigation Fee Act sets forth the procedural requirements for establishing and
collecting development impact fees. These procedures require that "a reasonable relationship, or
nexus, must exist between a governmental exaction and the purpose of the condition." The
updated transportation fees described in this Study are consistent with the requirements of the
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Mitigation Fee Act (Government Code Section 66000 et seq.) and the most recent relevant case
law.
The key requirements of the Mitigation Fee Act that determine the structure, scope and amount
of the potential CFF Program are as follows:
• Collected for Capital Facility and Infrastructure Improvements Only. Development
impact fee revenue can be collected and used to cover the cost of capital facilities and
infrastructure that are required to serve new development in the City. Impact fee revenue
cannot be used to cover the operation and maintenance costs of these or any other facilities
and infrastructure.
• Used to Fund Facility Needs Created by New Development Rather than Existing
Deficiencies. Impact fee revenues can only be used to pay for new or expanded capital
facilities needed to accommodate growth. Impact fee revenue cannot be collected or used to
cover the cost of existing deficiencies in the City’s capital facilities or infrastructure. In other
words, the cost of capital projects or facilities that are designed to meet the needs of the
City’s existing population must be funded through other sources. The costs associated with
improvements that serve the needs of both new development and the existing population
and employment are split on a “fair share” basis according to the proportion attributable to
each. Thus, the CFF Program funding will need to be augmented by the City and other
revenue sources to meet overall funding requirements.
• Fee Amount Must Be Based on A Rational Nexus. The amount of an impact fee must be
based on a reasonable nexus, or connection, between new development and the needs and
corresponding costs of the capital facilities and improvements need to accommodate it. As
such, an impact fee must be supported by specific findings that explain or demonstrate this
nexus or relationship. In addition, the impact fee amount must be structured such that the
revenue generated does not exceed the cost of providing the facility or improvement for
which the fee is imposed.
Summary of Maximum Fees
Based on the transportation improvements needed to serve future development in the City of
San Luis Obispo, the associated portion of costs that can be allocated to new development, and
the proportionate allocation between different land uses, Table 1 presents the maximum fees
that can charged to new development to fund transportation improvements, depending on where
in the City the new development occurs. The provisions of the Mitigation Fee Act allow
jurisdictions to include the costs of administering the impact fee program in the maximum fee.
Administration requirements include collecting and allocating impact fee revenue, record keeping
and reporting of fund activity, and periodic updates to the fee program. This analysis assumes
that administrative costs will equal 1.75 percent of the total fee program cost.1
1 The administrative add-on to the maximum development impact fees varies among California
jurisdictions. Where included, the addition is typically between 1.0 and 3.0 percent. This CFF
Program applies a 1.75 percent factor, in the middle of the range, and below the City’s 2.65 percent
building and planning cost for services fee.
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The transportation impact fee revenues generated by the maximum fee schedule would cover
new developments’ share of the infrastructure and improvement needs associated with new
development and not funded by direct developer contributions. The derivation of the maximum
fees is provided in the subsequent chapters, though a brief summary of the planned use of fee
revenues is provided below. As discussed in a subsequent section, to the extent fees are
adopted at below their maximum levels, the requirement for funding from other sources would
increase.
The updated transportation fee program would fund needed additions and improvements to
roadways to accommodate future trip generation projected as a result of new development.
Improvements include new interchange improvements, new intersections and signalizations, new
roadways and roadway improvements, new bicycle and pedestrian improvements, and
multimodal facilities, among others. Under the maximum fee schedule, about $137.7 million in
2019 dollars would be generated for transportation improvement investments through buildout
of the General Plan.
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Table 1 Maximum Updated Transportation Impact Fee Program Schedule
Land Use Citywide (1)
Los Osos Valley
Road Subarea (2)
San Luis
Ranch Subarea (3)
Step A + Step B + Step C Step A + Step B Step A + Step C
Residential
Single Family (per Unit)$10,363 $9,395 $8,051
Multifamily (per Unit)$8,051 $7,299 $6,255
Non-Residential
Office/Service (per Sq.Ft.)$11.77 $10.67 $9.15
Retail (per Sq.Ft.)$36.32 $32.93 $28.22
Industrial (per Sq.Ft.)$7.23 $6.55 $5.62
Institutional (per Sq.Ft.) $11.77 $10.67 $9.15
Lodging (per Room) $10,452 $9,476 $8,121
Sources: City of San Luis Obispo; Economic & Planning Systems, Inc.
(1) Schedule of maximum fees to be paid by new development outside of the San Luis Ranch project area and the Los Osos Valley Road
subarea.
(2) Schedule of maximum fees to be paid by new development in the Los Osos Valley Road subarea. In addition, development in this
subarea will pay the LOVR subarea fee as well.
(3) Schedule of maximum fees to be paid by the San Luis Ranch development. In addition, San Luis Ranch development also pays a direct
contribution toward the Prado Road Interchange costs.
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Fee Program Implementation
Fee Schedule Determination
This Study provides the City of San Luis Obispo with the necessary technical documentation to
support the adoption of updated Citywide transportation impact fees at the maximum levels
shown. The City Council can choose to adopt fees below these maximum levels. The adoption of
fees below the maximum level requires the City to “backfill” with additional funding from other
sources. This is in addition to the funding required from other funding sources that will be
required to fund the portions of the capital improvement costs that cannot be allocated to new
development.
There are several economic and policy reasons why a City might choose to adopt fees below the
maximum level.2 One common reason relates to concerns over development feasibility, where
substantial increases in development impact fees are expected to substantially reduce the
feasibility of new development and/or create substantial disincentives to the types of
development that City policy is explicitly seeking to encourage. The City’s current fee program
includes such policy discounts—specifically a 60 percent discount in the retail and lodging
transportation impact fees, and a 15 percent discount in the office/service and industrial
transportation impact fees.
Fee Adoption and Implementation
The existing Ordinance enables the fee program and periodic updates and addresses the primary
implementation and administrative issues and procedures associated with the Citywide fee
program. Then once selected, the preferred Citywide transportation impact fee schedule will be
adopted by Resolution. The Resolution approach to setting the fee allows periodic adjustments of
the fee amount that may be necessary over time, without amending the enabling Ordinance. A
list of the key implementation and administrative elements as required by Mitigation Fee Act are
addressed in Chapter 4.
Organization of Report
This Report is divided into four chapters, the first of which is this Introduction and Overview.
Chapter 2 provides a summary of the land use and development capacity forecasts. Chapter 3
describes the transportation improvements, costs of those improvements and the cost allocation.
This chapter also provides the required nexus findings. Key implementation and administrative
elements as required by Mitigation Fee Act are addressed in Chapter 4.
2 When there is concern about fee levels, the first step is to consider the capital improvements lists
that drive the maximum fee levels, where applicable, and ensure all improvements are necessary.
Once the City staff determined that all improvements were required, policy-based discounts are
considered, recognizing the need to “backfill” funding.
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2. LAND USE AND DEVELOPMENT CAPACITY FORECASTS
The development impact fee calculations for transportation facilities are driven by future
development forecasts that are tied to the City’s development capacity. Development capacity is
used for the transportation impact fee for consistency purposes, as this is the growth forecast
incorporated into the City’s transportation model which is a key determinant of other
components of the transportation impact fee calculation. The development capacity is based on
the overall amount of development that could occur through buildout of the current General Plan,
updated to reflect major development projects for which the proposed development programs
are now more certain (e.g., Avila Ranch, Froom Ranch, San Luis Ranch).
For example, since the 2018 update, the Froom Ranch development program (located in the Los
Osos Valley Road Subarea) changed considerably. In the 2018 update, Froom Ranch was
anticipated to include 350 multifamily units and 350,000 square feet of retail. Since then, the
Froom Ranch Specific Plan was defined to include 130 multifamily units, 30,000 square feet of
retail, a 120-room hotel, and a continuing care facility. The revised development program
generates approximately 10,000 fewer vehicle trips than anticipated in 2018. Reduced
development planned in the LOVR Subarea (where Froom Ranch is located) means reduced
development Citywide.
City Public Works/Transportation staff provided the existing development, the capacity buildout
development, and associated level of future development capacity included in the City’s
transportation model. As shown in Table 2, there is substantial capacity for new residential and
commercial capacity in the City.
Table 2 Existing, Growth, and Buildout Trip Generation
Table 3 shows the change in trip generation growth between the 2018 update and this current
update. The decrease of nearly 10,000 trips occurs in the LOVR Subarea and is primarily
attributable to changes in the Froom Ranch development program relative to the area’s
development capacity.
Land Use Existing Growth
Residential 287,078 78,724 365,802
Non-Residential 422,921 141,491 564,412
Other [1]0 3,146 3,146
Total Trips 709,999 223,361 933,360
% of Total Buildout Trips 76.07% 23.93% 100.00%
Sources: City of San Luis Obispo and Economic & Planning Systems, Inc.
Buildout
[1] Includes Froom Ranch's Life Plan, a continuing care facilitiy, which is expected to
include a mix of residential and commercial uses.
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Table 3 2018 Trip Generation Compared with 2019 Trip Generation
Land Use Categories and Growth Assumptions
Consistent with the Citywide fee program, the land use categories are as follows:
• Residential
— Single family
— Multifamily
• Non-Residential
— Office/Service
— Retail
— Industrial
— Institutional
— Lodging
For the transportation fee, the “office” and “service” categories are combined due to the
similarity of uses. Table 4 provides the definitions of the different land uses associated with the
City’s development capacity estimates. These are the same definitions applied to the other
development impact fees, except where specifically noted.
Changes in Growth Forecasts/Development Capacity
Just as this current update is acknowledging changes to the City’s growth forecasts, over time, it
may become apparent that the development capacity estimates require further refinement.
Business and real estate market cycles, growth management policies, and changes in land use
designations could all affect the expected/potential level of growth and development. Consistent
with other development impact fee programs, these changes are captured in the periodic
updates to Citywide transportation impact fee program that support a re-calibration of fee
program assumptions as conditions change over time.
Land Use LOVR SLR Rest of City Total Growth LOVR SLR Rest of City Total Growth
Residential 20,436 8,292 59,928 88,656 10,504 8,292 59,928 78,724
Non-Residential 17,206 13,658 113,467 144,332 14,366 13,658 113,467 141,491
Other, Life Plan (Froom Ranch) [1]3,146 3,146
Total Trips 37,643 21,951 173,395 232,988 28,015 21,951 173,395 223,361
% of Total Growth 16.2% 9.4% 74.4% 100.0%12.5% 9.8% 77.6% 100.0%
Sources: City of San Luis Obispo and Economic & Planning Systems, Inc.
[1] The Froom Ranch Specific Plan includes a continuing care facility called Life Plan. Life Plan Community is expected to include 398 units,
72 beds, restaurant, and recreation facilities.
Trip Generation Growth (2018 Update)Trip Generation Growth (2019 Update)
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Table 4 Land Use Category Descriptions
Land Use Category Description and Examples [1]
Single Family Single family detached dwelling units, single family attached dwelling units
including Townhome-style units. A single Accessory Dwelling Unit (ADU) is
allowed as part of the construction of a single family home and is not
charged separate impact fees.
Multifamily Multifamily attached dwelling units and mobile homes.
Office Uses include professional services, financial institutions, administration-type
uses, including administration of private-sector utilities, and certain types of
services, such as tax return preparation, advertising agencies, photography
studios, pest control, building maintenance, employment agencies, security
and computer-related services.
Services Uses include offices and clinics of medical and health practitioners, religious
organizations, membership organizations, certain transportation uses,
beauty/barber shops, funeral services, and repair shops.
Retail Uses include regional- and neighborhood-serving retail establishments,
including retail as part of mixed-use developments. Specific uses include
restaurants, gas stations and auto care, movie theaters, fitness facilities,
warehouse stores, department stores, grocery stores, and amusement and
recreation services.
Industrial Uses include construction, manufacturing, and transportation uses, as well
as warehousing and storage. Ancillary office space included as part of
industrial development is included.
Institutional Uses include City, County, and State offices and facilities, health care
facilities such as Mental Health and Public Health services, Social services
such as County Social Services, CA Employment Development and
Rehabilitation, Homeless shelters, and cultural and public recreation
facilities.
Lodging Uses include resorts, hotels, motels, and bed and breakfast inns.
Sources: City of San Luis Obispo Parcel Data SIC Correspondence; Economic & Planning Systems, Inc.
[1] This table provides a summary only. For more specific direction, refer to the City of San Luis Obispo Parcel Data
SIC Correspondence table.
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3. TRANSPORTATION IMPACT FEE
This chapter establishes the maximum transportation impact fees under the Mitigation Fee Act
that could be required of new development in the City of San Luis Obispo. These fees would
represent an update to the existing (2018) transportation impact fee program in the City. The
fees will apply to all new development in the City unless project-specific terms or agreements
may apply.
The updated transportation impact fees are intended to address new scope and cost information
related to certain of the transportation improvements that are needed to accommodate new
development in the City of San Luis Obispo. The required improvements include multimodal
projects such as regional interchanges, intersection improvements, street widening and
extension projects, pedestrian and bicycle improvements, and transit improvements. As noted
previously, it is the City’s policy to ensure that new development pays for its fair share of the
cost of transportation improvements, and the transportation impact fee program is one of the
City’s key strategies for doing so.
Mitigation Fee Act Nexus Findings
Nexus findings are provided below addressing 1) the purpose of the fee, 2) the specific use of fee
revenue, 3) the relationship between the facility and the type of development, 4) the relationship
between the need for the facility and the type of development, and 5) the relationship between
the amount of the fee and the proportionality of cost specifically attributable to
development. The technical information and calculations provided below support these nexus
findings/requirements.
Purpose
The revenue collected from the transportation fee program will help maintain adequate levels of
transportation service in the City of San Luis Obispo by mitigating the impact that new
development will have on the City’s transportation system.
Use of Fee
Fee revenue will be used to help fund City transportation improvements or the City’s share of
regional improvements, including regional interchanges, intersection improvements, street
widening and extension projects, pedestrian and bicycle improvements, and transit
improvements, as well as the reimbursement of upfront investments from other City funds for
transportation improvements required to serve future growth. A detailed project list is included
in Appendix A of this Study.
Relationship
New residential and commercial development in the City of San Luis Obispo will increase the
average number of daily trips in the City, thereby increasing demands for and travel on the City’s
transportation network. Average daily trip data by land use category underscores the relationship
between the type of new development and the needed transportation facilities.
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Need
Each new development project will add to the incremental need for transportation capacity and
improvements in the City. The transportation improvements considered in this Study are
considered necessary to meet the City's future transportation needs under General Plan buildout.
Proportionality
The maximum fee levels are tied to fair share cost allocations to new development in the City
using the City’s transportation model or proportional growth forecasts as appropriate for each
improvement item.
Geography of Transportation Fee Program
In 2018, the Citywide Transportation Impact Fee update created a citywide fee geography that
subsumed the Airport Area Specific Plan and Margarita Area Specific Plan subarea transportation
impact fee programs. The LOVR Subarea and the Orcutt Area Specific Plan Subarea remained in
place, such that new development in either of those two areas pays the appropriate Citywide fee
plus the applicable subarea fee.
Figure 1 below presents the revised geographies associated with the updated transportation fee
program.
Figure 1 Revised Geographic Areas of Updated Transportation Fee Program
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Transportation Improvements and Cost Estimates
The improvements that are the basis for the transportation impact fee update are derived from
the City’s existing citywide transportation impact fee program, which was adopted in 2018, and
project scope and cost updates provided by City staff. Of the 45 improvements included in the
current fee program, 4 have been updated as indicated below:
Project #4: Orcutt & Tank Farm Intersection Improvements
The project description is updated to include the design of the roundabout in addition to the
installation. The project cost is updated from $1.7 million to $2.75 million to reflect the actual
engineering cost estimates, which are now available. One hundred percent of this project
cost is attributable to new development and is in the fee program.
Project #7: Higuera & Tank Farm Intersection Improvements
The project description is updated to include the design of the intersection improvements in
addition to the installation. The project cost is updated to include design work of $300,000
(15 percent of the $2 million installation cost estimate). One hundred percent of this project
cost is attributable to new development and is in the fee program.
Project #9: Misc. Intersection Control Upgrades
The project cost is increased by $750,000 to reflect actual engineering cost estimates. One
hundred percent of this project cost is attributable to new development and is in the fee
program.
Project #13: Higuera Widening (Madonna Rd. to City Limits)
The project description is updated to reflect an expanded scope to complete sidewalk gaps
and add right-of-way and soft costs for Vachell to the City Limits, as well as right-of-way
costs for the Bridge to Elks section. The project cost is increased by $720,000 from $5.4
million to $6.12 million. Consistent with the prior transportation modelling, 45 percent of
these project costs are attributable to new development in the City and in the fee program.
No other changes to the project list or costs are included in this update.
Total Project Costs
The infrastructure identified in this Study has been identified because the improvements are
necessary to support buildout of the current General Plan, for consistency with General Plan
policy, and/or because there are reimbursement commitments in place. Since 2018, the cost
estimates associated with certain projects are more certain. Table 5 provides an updated
summary of improvements and costs by broad category.
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Table 5 Summary of Types of Transportation Improvements and Costs
The detailed project improvement list is provided as Appendix A. The project list was prepared
by City staff and reviewed to make sure the scope of the improvements is consistent with the
amount of development that is expected under General Plan buildout. Full project cost estimates
for each improvement are presented. For regional projects, cost estimates are prepared by
CalTrans; in other cases, cost estimates are provided by developers who will have responsibility
for building the improvements; and still, in other cases, cost estimates are provided by Wallace
Group, a cost estimator consultant to the City. For those projects for which financing costs are
included, those cost estimates were provided by the City’s engineering and cost consultant. All
updated costs are provided in 2019 dollars. It is important to note that the capital improvement
list represents a current list of transportation improvements for the purposes of the calculation of
the development impact fee and broader financial planning. Over time, as part of the periodic,
formal updates, it is possible that new projects may be added and current projects modified.
Costs Included in Fee Program
The full project costs associated with each improvement are not necessarily included in the
transportation fee program. For example, for some project-specific improvements that are
adjacent to new development, a portion of the construction cost will be borne by developers with
property fronting or adjacent to the improvement in the form of development exactions. Aside
from developer exactions, funding from other sources is also assumed for certain projects,
including funding from SLOCOG and other grant sources, to the extent these sources are known
at this time. Where other funding sources are available, that available funding is subtracted from
the total project costs and only the balance of the project costs is included in the fee program.
As presented in Table 6, the total cost for all transportation-related improvements is estimated
to be $274.5 million, approximately 1 percent higher than total costs included in the 2018
update. Of the $274.5 million, the share of this cost that is included in the City’s CFF program is
Improvement Category Cost Percentage
Interchanges $57,660,377 21.0%
Intersection $52,480,000 19.1%
Street Widening $47,091,495 17.2%
Street Extension $53,667,341 19.6%
Pedestrian/ Bicycle $54,166,000 19.7%
Transit $6,500,000 2.4%
Other $2,900,000 1.1%
Total $274,465,214 100.0%
Sources: City of San Luis Obispo; Wallace Group; Cambridge Systematics; and
Economic & Planning Systems, Inc.
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$219.4 million. For each improvement item, Appendix A provides detailed information of the
costs allocated to the fee program (CFF Cost).
Table 6 Summary of Cost Allocations
Cost Allocation to New Development
The allocation of costs between new and existing development and by land use is a critical
component of the fee nexus analyses. All of the transportation improvements included in the
CFF, listed in Appendix A and summarized in Table 5, will benefit new development in the City.
While each of the improvements on the project list benefits new development in the City to some
degree, in some cases an identified improvement may benefit new development in the larger
region, such as an interchange improvement, and some improvements also may benefit existing
development in the City or the region. To ensure that new development in the City is not paying
on behalf of existing development in the City, future regional development, or to mitigate
existing deficiencies in the transportation network, only the share of costs that is proportionally
related to the benefit received by new development is included in the fee program. This detailed
allocation, which varies by improvement, is shown in Appendix A.
Fee Calculation
The fee calculations are based on an average cost per trip that is the result of dividing the costs
of the improvements that are attributable to new development by the number of average daily
trips (ADT) that are generated by the projected new development. The average cost per trip is
then multiplied by the ADT associated with each land use category to calculate maximum fees by
land use category. These steps are described in more detail below.
Geographic Area Adjustments
Before calculating the fees, two geographic area adjustments are made. Due to the pre-existing
Los Osos Valley Road subarea fee which was established in 2003 and is currently being updated,
and due to a direct contribution that the San Luis Ranch development is making towards the
Prado Road interchange, adjustments to the Citywide fee are made for these two areas to avoid
over-charging for the same project costs.
Item Amount
Total Transportation Project Costs (Including Financing)$274,465,214
Direct Developer Contribution $31,265,720
Grants/Other Sources $23,800,000
Costs Included in Fee Program $219,399,494
Sources: City of San Luis Obispo; Wallace Group; and Economic & Planning Systems, Inc.
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To calculate these adjustments, three steps, labeled A through C, are required:
A. Base Citywide Fee. The base Citywide fee is calculated based on the updated costs of all
improvements except the Los Osos Valley Road Interchange and the Prado Road Interchange
and using the full growth forecast.
B. Prado Road Interchange Add-on. An adjustment for the San Luis Ranch project is made
because the San Luis Ranch developer has a 28 percent fair share allocation obligation
towards the Highway 101/Prado Road Interchange improvements plus related financing.
Because the developer is paying this obligation directly, the developer should not also pay
the component of the citywide fee that is attributable to the Prado Road Interchange project.
The San Luis Ranch add-on is calculated based on the cost of the Prado Road Interchange
(net of San Luis Ranch’s direct obligation) and using the Citywide growth forecast less the
development anticipated as part of the San Luis Ranch project. This add-on applies to all new
development in the City except the San Luis Ranch project.
C. Los Osos Valley Road Interchange Add-on. New development in the Los Osos Valley
Road subarea will pay a Citywide fee plus the updated Los Osos Valley Road subarea fee
(a separate nexus study has been prepared to document the updates to the subarea fee),
which funds a portion of the Highway 101/Los Osos Valley Road Interchange improvements
plus related financing. Therefore, new development in the Los Osos Valley Road subarea
should not pay the LOVR subarea fee plus the component of the citywide fee that is
attributable to the Los Osos Valley Road Interchange improvement. The Los Osos Valley Road
Interchange add-on is calculated based on the cost of the interchange improvement (beyond
the cost that is already the basis of the LOVR subarea fee) and using the citywide growth
forecast less the development anticipated in the Los Osos Valley Road subarea. This add-on
applies to all new development in the City except for new development in the Los Osos Valley
Road subarea.
Citywide Growth Projections and Trip Generation
As shown on Table 7, Average Daily Trip (ADT) generation rates were provided by City staff in
collaboration and based on trip generation data from the Institute of Transportation Engineers
(ITE). Based on the development forecast assumed in the transportation model and refined
assumptions about development plans in the LOVR Subarea, Citywide growth is forecast to
generate 223,000 new trips, consisting of 79,000 new trips attributable to residential growth,
141,500 new trips attributable to non-residential growth, and approximately 3,150 new trips
attributable to the Life Plan component of Froom Ranch.
The number of trips attributable to Life Plan were generated from a traffic study that reported
the trips on a PM Peak “Driveway” basis. For purposes of this update, the PM Peak “Driveway”
trips were converted to Average Daily Trips (ADT) “All Legs.”
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Table 7 Existing, Growth, and Buildout Trip Generation
Cost per Trip
The cost allocation to new development divided by the total new trips generated by new
development results in average cost per trip of approximately $436 for the Citywide base fee, as
shown on Table 8. The average cost per trip for the Prado Road Interchange is approximately
$142, and the average cost per trip for the Los Osos Valley Road Interchange is approximately
$60.
Table 8 Average Cost per Trip
Land Use Existing Growth
Residential 287,078 78,724 365,802
Non-Residential 422,921 141,491 564,412
Other [1]0 3,146 3,146
Total Trips 709,999 223,361 933,360
% of Total Buildout Trips 76.07% 23.93% 100.00%
Sources: City of San Luis Obispo and Economic & Planning Systems, Inc.
Buildout
[1] Includes Froom Ranch's Life Plan, a continuing care facilitiy, which is expected to
include a mix of residential and commercial uses.
New Trips2 Average Cost
Geography/Improvement Total Costs Net Costs
1 (ADT)per Trip
Citywide Base $105,030,448 $97,433,570 223,361 $436.22
Prado Road Interchange $28,663,545 $28,663,545 201,410 $142.31
Los Osos Valley Road Interchange $11,636,833 $11,636,833 195,346 $59.57
Total $145,330,826 $137,733,948
Sources: City of San Luis Obispo; Economic & Planning Systems, Inc.
Cost Allocations to New
Development
1 Removes existing transportation impact fee fund balances from the total costs allocated to new growth. Latest fee
balances available from City (June 30, 2017) indicate a total fee balance of about $7.6 million, including $6.1 million in
Citywide Transportation Impact Fee fund, $1.1 million in Airport Area Impact Fee Fund, and $417,300 in the Margarita
Area Specific Plan Fund. The fund balance of $129,400 for Los Osos Valley Road is not included.
2 For the Prado Road Interchange, the estimate of new trips is the number of Citywide trips less the trips associated with
the San Luis Ranch project. Similarly, for the Los Osos Valley Road Interchange, the estimated of new trips is the
number of Citywide trips less the trips associated with anticipated new development in the Los Osos Valley Road
subarea.
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Fees by Land Use Category
Using the calculated cost per trip and the average daily trips for each land use category, the
maximum justifiable fees for the Citywide base fee component are calculated and presented in
Table 9. The San Luis Ranch and the Los Osos Valley Road subarea add-ons are shown on the
same table.
In combination, these three steps are the components of the maximum Citywide fees.
Specifically, the maximum Citywide fee is the sum of the base Citywide fee, the Los Osos Valley
Road Interchange add-on, and the Prado Road Interchange add-on (Step A + Step B + Step C).
For new development in the Los Osos Valley Road subarea, the maximum Citywide fee is the
base Citywide fee plus the Prado Road Interchange add-on (Step A + Step B). For the San Luis
Ranch project, the maximum Citywide fee is the sum of the base Citywide fee and the Los Osos
Valley Road Interchange add-on (Step A + Step C). The resulting maximum fees are shown
below in Table 10.
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Table 9 Trip Generation Rates and Components of Maximum Fee Calculations
Land Use
Average Cost per Trip
Residential
Single Family 16.24 per unit $7,084 per Unit $2,311 per Unit $967 per Unit
Multifamily 12.62 per unit $5,504 per Unit $1,796 per Unit $752 per Unit
Non-Residential
Office/Service (1)18.45 per 1,000 sq.ft.$8.05 per Sq.Ft.$2.63 per Sq.Ft.$1.10 per Sq.Ft.
Retail (2)56.92 per 1,000 sq.ft.$24.83 per Sq.Ft.$8.10 per Sq.Ft.$3.39 per Sq.Ft.
Industrial 11.33 per 1,000 sq.ft.$4.94 per Sq.Ft.$1.61 per Sq.Ft.$0.67 per Sq.Ft.
Institutional (3)18.45 per 1,000 sq.ft.$8.05 per Sq.Ft.$2.63 per Sq.Ft.$1.10 per Sq.Ft.
Lodging (4)16.38 per room $7,145 per Room $2,331 per Room $976 per Room
(1) Trip generation rates based on an average of office and service trip rates provided by City staff and Cambridge Systematics.
(2) Trip generation rates based on an average of low and medium retail trip rates provided by City staff and Cambridge Systematics.
(3) Trip generation rates based on office/service trip rates provided by City staff and Cambridge Systematics.
(4) Trip generation rates based on motel trip rates provided by City staff and Cambridge Systematics.
Sources: City of San Luis Obispo; Cambridge Systematics; and Economic & Planning Systems, Inc.
Step A Step B Step C
Los Osos Valley
Road Interchange
Add-on
$59.57
Trip (ADT)
Generation Rates
Citywide
Base
$436.22
Prado Road
Add-on
$142.31
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Table 10 Summary of Maximum Citywide Transportation Fees
Land Use Citywide (1)
Los Osos Valley
Road Subarea (2)
San Luis
Ranch Subarea (3)
Step A + Step B + Step C Step A + Step B Step A + Step C
Residential
Single Family (per Unit)$10,363 $9,395 $8,051
Multifamily (per Unit)$8,051 $7,299 $6,255
Non-Residential
Office/Service (per Sq.Ft.)$11.77 $10.67 $9.15
Retail (per Sq.Ft.)$36.32 $32.93 $28.22
Industrial (per Sq.Ft.)$7.23 $6.55 $5.62
Institutional (per Sq.Ft.) $11.77 $10.67 $9.15
Lodging (per Room) $10,452 $9,476 $8,121
Sources: City of San Luis Obispo; Economic & Planning Systems, Inc.
(1) Schedule of maximum fees to be paid by new development outside of the San Luis Ranch project area and the Los Osos Valley Road
subarea.
(2) Schedule of maximum fees to be paid by new development in the Los Osos Valley Road subarea. In addition, development in this
subarea will pay the LOVR subarea fee as well.
(3) Schedule of maximum fees to be paid by the San Luis Ranch development. In addition, San Luis Ranch development also pays a direct
contribution toward the Prado Road Interchange costs.
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4. IMPLEMENTATION AND ADMINISTRATION OF CFF
The updated Citywide transportation impact fee program and corresponding fee schedule will
need to be adopted by City Resolution as enabled by the City’s Fee Ordinance. The existing
Ordinance allows the City Council to adopt, by Resolution, a fee schedule consistent with
supporting technical analysis and findings provided in this Report. The Resolution approach to
setting the fee allows periodic adjustments of the fee amount that may be necessary over time,
without amending the enabling Ordinance. A brief summary of the key implementation and
administrative elements is provided below.
Fee Collection and Amount
Applicable Land Uses
All new development that occurs within the City of San Luis Obispo, except as specifically
exempted by the CFF Ordinance, shall pay the CFF based on requirements of the subarea in
which the new development is located. While the maximum fee amount will be determined by
the Mitigation Fee Act Study, the City may elect to charge less for a variety of reasons and under
certain circumstances, as described in the Ordinance. In any case, the applicable fees will be
published in a Fee Schedule made available by the City and updated periodically. The amount
will vary by land use, as shown in Table 1.
It is possible that certain projects may not fit neatly into the categories defined in Table 4. In
cases were such ambiguity exists, the City Community Development Director will need to make a
determination as to the applicable fees. The Fee Ordinance articulates guidelines for resolving
discrepancies and/or disputes.
Fee Escalation
The City Fee Ordinance allows for an automatic adjustment of the CFF to keep pace with
inflationary increases in construction costs. This allows the fee level to keep pace with inflation
without requiring an annual approval process. This adjustment is based on the Construction Cost
Index (CCI) published by the Engineering News Record (ENR), a source widely used in the
construction industry, and by many jurisdictions as a basis for making annual inflation
adjustments to their development impact fees. ENR’s CCI has been published consistently every
month since 1967. As such ENR is one of the most reliable and consistent indices that track
trends in construction costs.
Timing and Manner of Payment
The City CFF Ordinance addresses issues related to the timing and manner of payment for the
CFF including the potential for fee deferrals, payment plans, credits and reimbursements,
exemptions, and related adjustments.
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Annual Review, Accounting, and Updates
Annual review
This Report and the technical information it contains should be maintained and reviewed
periodically by the City as necessary to ensure Impact Fee accuracy and to enable the adequate
programming of funding sources. To the extent that improvement requirements, costs, or
development potential changes over time, the Fee Program will need to be updated. Specifically,
AB 1600 (at Gov. Code §§ 66001(c), 66006(b)(1)) stipulates that each local agency that requires
payment of a fee make specific information available to the public annually within 180 days of
the last day of the fiscal year. This information includes the following:
• A description of the type of fee in the account
• The amount of the fee
• The beginning and ending balance of the fund
• The amount of fees collected and interest earned
• Identification of the improvements constructed
• The total cost of the improvements constructed
• The fees expended to construct the improvement
• The percent of total costs funded by the fee
If sufficient fees have been collected to fund the construction of an improvement, the agency
must specify the approximate date for construction of that improvement. Because of the
dynamic nature of growth and infrastructure requirements, the City should monitor development
activity, the need for infrastructure improvements, and the adequacy of the fee revenues and
other available funding. Formal annual review of the Fee Program should occur, at which time
adjustments should be made. Costs associated with this monitoring and updating effort are
included in the Impact Fee.
Surplus Funds
AB 1600 also requires that if any portion of a fee remains unexpended or uncommitted in an
account for five years or more after deposit of the fee, the City Council shall make findings once
each year (1) to identify the purpose to which the fee is to be put, (2) to demonstrate a
reasonable relationship between the fee and the purpose for which it was charged, (3) to identify
all sources and amounts of funding anticipated to complete financing of incomplete
improvements, and (4) to designate the approximate dates on which the funding identified in (3)
is expected to be deposited into the appropriate fund.
If adequate funding has been collected for a certain improvement, an approximate date must be
specified as to when construction on the improvement will begin. If the findings show no need
for the unspent funds, or if the conditions discussed above are not met, and the administrative
costs of the refund do not exceed the refund itself, the local agency that has collected the funds
must refund them.
Internal Loaning of Funds
Loans between the Capital Facilities Fee Funds may be used from time to time to facilitate the
construction of CFF facilities and assure adequate cash flow. Any such loan shall be made in
accordance with applicable law, as interpreted by the City Attorney of the City of San Luis
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Obispo, and all funds shall be placed in separate accounts on either a facility or geographic basis.
The additional following requirements are also placed on loans between CFF funds:
1. Funds may be transferred between accounts to expedite the construction of critical
projects/facilities.
2. A mechanism to repay accounts shall be established.
3. Interest charged on each loan shall be based upon the Local Agency Investment Fund rate in
effect at the time of the loan and shall be deposited into the account providing the loan.
4. Inter-fund loan repayments shall take precedence over reimbursements to developers.
Five-Year Update
Fees will be collected from new development within the City immediately; however, use of these
funds may need to wait until a sufficient fund balance can be accrued. Per Government Code
Section 66006, the City is required to deposit, invest, account for, and expend the fees in a
prescribed manner. The fifth fiscal year following the first deposit into the Fee account or fund,
and every five years thereafter, the City is required to make all of the following findings with
respect to that portion of the account or fund remaining unexpended:
• Identify the purpose for which the fee is to be put;
• Demonstrate a reasonable relationship between the fee and the purpose for which it is
charged;
• Identify all sources and amounts of funding anticipated to complete financing in incomplete
improvements; and
• Designate the approximate dates on that the funding referred to in the above paragraph is
expected to be deposited in the appropriate account or fund.
Once sufficient funds have been collected to complete the specified projects, the City must
commence construction within 180 days. If they fail to do this, the City is required to refund the
unexpended portion of the fee and any accrued interest to the then current owner.
Securing Supplemental Funding
The Citywide Transportation Impact Fee Program is not appropriate for funding the full amount
of all capital costs identified in this Fee Study. As a result, the City will have to identify funding
and pay for improvements related to existing developments and improvements not funded by
the Fee Program or any other established funding source. Examples of such sources include the
following:
• General Fund Revenues. In any given year, the City could allocate a portion of its General
Fund revenues for discretionary expenditures. Depending on the revenues generated relative
to costs and City priorities, the City may allocate General Fund revenues to fund capital
facilities costs not covered by the Fee Program or other funding sources.
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• Assessments and Special Taxes. The City could fund a portion of capital facilities costs
using assessments and special taxes. For example, the establishment of a Mello-Roos
Community Facilities District would allow the City to levy a special tax to pay debt service on
bonds sold to fund construction of capital facilities or to directly fund capital facilities. The
City could also seek voter approval of a special tax through ballot initiative to provide funding
for a range of capital improvements.
• Regional, State or Federal Funds. The City might seek and obtain grant of matching
funds from Regional, State and Federal sources to help offset the costs of required capital
facilities and improvements. As part of its funding effort, the City should research and
monitor these outside revenue sources and apply for funds as appropriate.
• Other Grants and Contributions. A variety of grants or contributions from private donors
could help fund a number of capital facilities. For example, private foundations and/or
charity organizations may provide money for certain park and recreation or cultural facilities.
As part of the adoption of the fee, the City is likely to adopt a finding that it will obtain and
allocate funding from various other sources for the fair share of the costs of improvements
identified in this Report that are not funded by the Fee Program as well any additional funding
required to “backfill” any policy-based fee reductions. Any supplemental funding identified will
be incorporated into the CFF as part of the next five-year update.
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APPENDIX A:
Transportation Impact Fee
Improvement List and Cost Allocation
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Appendix ATransportation Improvement List, Cost Estimates, and AllocationsSan Luis Obispo Transportation Impact Fee Program Update Nexus Analysis; EPS #191053Description Estimate InformationRegional Existing New Regional Existing NewCITYWIDE BASEIntersection ImprovementsProject #3 Broad & South-Santa Barbara Intersection ImprovementsIntersection Improvements Widen southbound approach to provide a 100' right-turn lane; OR Improve the westbound approach to include two left-turn lanes and a shared through/right turn lane.Wallace estimates Project No. 20 $680,000 total with $550k const, $130k Capital Support.$680,000 $680,000 0.0% 0.0% 100.0% $0 $0 $680,000Project #4 Orcutt & Tank Farm Intersection ImprovementsIntersection Improvements Design and install roundabout. Engineer cost estimate $2,750,000 $2,750,0000.0% 0.0% 100.0% $0 $0 $2,750,000Project #5 Broad & Tank Farm Intersection ImprovementsIntersection Improvements Establish time-of-day timing plans.Add SB dual left-turn lane, NB dedicated right-turn lane and WB dedicated right-turn lane. Augment bicycle facilities and improve transit headways on Broad Street.Wallace estimates Project No. 33 $1,490,000. $1,500,000 $1,500,000 15.0% 0.0% 85.0% $225,000 $0 $1,275,000Project #6 Johnson & Orcutt Intersection Improvements Intersection Improvements Install roundabout. Wallace estimates Project No. 18 of $2,000,000 total with $2,000,000 const no ROW.$2,000,000 $2,000,000 25.0% 0.0%75.0% $500,000 $0 $1,500,000Project #7 Higuera & Tank Farm Intersection ImprovementsIntersection Improvements Design and construct NB right-turn lane, WB dual right-turn lanes, dual SB lefts,& median on Tank Farm between Higuera and Long.Wallace estimates Project No. 35 of $1,650,000 total with $1,650,000 const no ROW. Plus $350,000 for SB Dual Lefts.$2,300,000 $2,300,000 0.0% 0.0% 100.0% $0 $0 $2,300,000Project #8 S. Broad Street Intersection Intersection ImprovementsControl Upgrades at 3 intersections. From S. Broad Street Corridor Plan with adjustments (cost based upon Roundabout Control, Medians, and ROW at $2.25 million each for two Intersections and $500,000 for Bicycle Pedestrian Hybrid Crossing Signal & Median and curb extensions at a third.$5,000,000 $5,000,000 20.0% 0.0% 80.0% $1,000,000$0 $4,000,000Project #9 Misc. Intersection Control Upgrades Intersection Improvements 15 Intersections Control upgrades as identified in the General Plan Circulation Element and EIR.Engineer cost estimate$15,750,000$15,750,000 0.0% 0.0% 100.0%$0$0 $15,750,000Project #10 Orcutt Rd/UPRR Grade Separation Intersection Improvements Grade Separation of Orcutt Road and Laurel Lane at the Union Pacific Railroad including the relocation of Bullock Lane and potential relocation of the Bullock Bridge. Wallace estimates Project No. 41 of $20,000,000 does not include ROW - one property still needs to be acquired. Local Match only that could be used for property acquisition if necessary.$20,000,000$16,000,000 $4,000,000 10.0% 0.0% 90.0% $400,000$0 $3,600,000Project #11 Prado Rd/Higuera & Prado Intersection Improvements - Final Phase Dual LT's and NB RTStreet Widening and Intersection ImprovementsIntersection Improvements: Add second westbound through lane. Add second northbound left-turn lane. Add second eastbound through lane.Project cost estimated on Project #15 (see below) that are 25% construction plans - forecast for future conditions.$2,500,000$2,500,0000.0% 0.0% 100.0%$0$0$2,500,000Subtotal$52,480,000 $0 $16,000,000 $36,480,000$2,125,000$0 $34,355,000Street Widening ImprovementsProject #12 Higuera Widening: High St to Marsh St Street WideningAcquire property and widen to allow four travel lanes, center turn lane, bike lanes, etc. & implement Downtown Plan concepts (See Mid-Higuera Plan).Wallace estimates Project No. 44 of $2,150,000 does not include ROW - $1.760M in Const, $390k in const support.$2,150,000$2,150,000 0.0% 76.1%23.9%$0 $1,635,487 $514,513Project #13 Higuera Widening: Madonna Rd to City LimitsStreet WideningWiden Higuera to 4 lanes, with a center turn lane and Class II bikeways; complete sidewalk gaps. Wallace estimates Project No. 27 of $5,370,000 does not include ROW - $4.4M in Const, $970k in construction support. Includes soft costs and ROW for $6,120,000$6,120,000 55.0% 0.0% 45.0% $3,366,000$0 $2,754,000Project #14 Tank Farm Road WideningStreet WideningWiden Tank Farm Road as a Parkway Arterial with 2 lanes in each direction, a center turn lane/landscaped median, Class II bike lanes, sidewalks and Class I bike lanes from Horizon to Santa Fe & Roundabout at Santa Fe.Combination of Wallace estimates Project No. 51 of $23,380,000 does not include ROW - $15.3M in Const, $3.370k in const support. Adds to that the roundabout and misc work at Sante Fe and Horizon Lane intersections. $3,000,000 in direct dev contribution in for adjacent development to pay for c/g/s and bike lanes along frontage.$22,000,000$3,000,000$19,000,000 30.0% 0.0% 70.0% $5,700,000$0 $13,300,000Project #15 Prado Rd Bridge Widening: West of Higuera St and Higuera & Prado Intersection Improvements (NB Dual LT)Street Widening and Intersection ImprovementsIntersection Improvements: Add second westbound through lane. Add second northbound left-turn lane. Add second eastbound through lane.See Wallace project No. 40 & Preliminary Cost Estimates for Bridge. Assumes HBR program will pick up to 60% (modified to excluse non eligible improvements).$13,000,000$7,800,000 $5,200,000 0.0% 0.0% 100.0%$0$0 $5,200,000Project #15F Prado Rd. Bridge W of HigueraFinancing$3,821,495$3,821,4950.0% 0.0% 100.0% $0$0$3,821,495Subtotal$47,091,495 $3,000,000 $7,800,000 $36,291,495$9,066,000 $1,635,487 $25,590,009Street Extension ImprovementsProject #16a Santa Fe Road Extension North of Tank FarmStreet ExtensionRealign and Extend Santa Fe Road as a Commercial Collector from Tank Farm to Prado Road including construction of a new bridge at Acacia Creek. (See AASP) Chevron responsible for 66% ($1,620,000) to reflect local access needs. New cost estimate reduced by this amount.See Wallace project No. 52. Roundabout cost in Wallace estimate moved to TankFarm Road Widening Project #14.$1,080,000$1,080,000 60.0% 0.0% 40.0% $648,000$0 $432,000Project #16b Santa Fe Road Extension South of Tank FarmStreet ExtensionRealign and Extend Santa Fe Road as a Commercial Collector from Hoover Avenue to Tank Farm including construction of a new bridge at Acacia Creek. Chevron responsible for 50% to reflect local access needs.See Wallace project No. 52. Roundabout cost in Wallace estimate moved to TankFarm Road Widening Project #14.$2,500,000$2,500,000 60.0% 0.0% 40.0% $1,500,000$0 $1,000,000Project #17 Horizon Lane Extension South of Tank Farm Street ExtensionConstruct new commercial collector Tank Farm to Buckley with roundabout control at Tank farm.1,300 LF at $775 per LF plus $2m for Roundabout. $3,000,000$3,000,000 10.0% 0.0% 90.0%$300,000$0 $2,700,000Allocation - CitywideProject Number NameType (e.g., Geographic Area of Benefit)New Cost EstimateDirect Development ContributionGrant or Other SourcesPFFP Cost EstimateAllocation - CitywideEconomic & Planning Systems, Inc. 6/19/2019Page 1 of 3Y:\Projects\Oakland\191000s\191053_SLO Citywide TIF Update\Model\Transportation List (Combined).xlsxPacket Pg. 264Item 11
Appendix ATransportation Improvement List, Cost Estimates, and AllocationsSan Luis Obispo Transportation Impact Fee Program Update Nexus Analysis; EPS #191053Description Estimate InformationRegional Existing New Regional Existing NewAllocation - CitywideProject Number NameType (e.g., Geographic Area of Benefit)New Cost EstimateDirect Development ContributionGrant or Other SourcesPFFP Cost EstimateAllocation - CitywideProject #18 Bishop St Extension to Roundhouse Street ExtensionExtend Bishop Street west over R.R. tracks. The City shall conduct a detailed subarea traffic analysis to determine if secondary measures can be made to allow for elimination of the Bishop Street Extension and protection of neighborhood traffic levels; and recommend improvements, if any.Wallace estimates Project No. 43 of $13,200,000 does not include ROW - All construction cost.$13,200,000$13,200,000 5.0% 72.3% 22.7% $660,000 $9,539,072 $3,000,928Project #19 Prado Rd Extension South Higuera to Broad Street, including Broad Street & Prado Extension Intersection ImprovementsStreet Extension and Intersection ImprovementsWiden and extend Prado Rd. as an Highway/Regional Route Arterial with 2 lanes in each direction, a center turn lane/landscaped median, Class II bike lanes, sidewalks and Class I bike lanes (where feasible) from US 101 to Broad Street. ROW Limitations east of Higuera outside of the MASP area may limit the City’s ability to install Class I facilities. (See MASP) Construct a second northbound left-turn lane at Broad and Prado.Assumes new Prado Extension cost of $25,936,200 based upon Serra Meadows actuals. Adjacent development funds c/g/s, bike lanes, center turn lane/median and one through lane. AB 1600 funds one lane in each direction.$26,526,200$16,509,720$10,016,480 20.0% 0.0% 80.0% $2,003,296$0 $8,013,184Project #19F Prado Rd Extension South Higuera to Broad Street, including Broad Street & Prado Extension Intersection ImprovementsFinancing$7,361,141$7,361,1410.0% 0.0% 100.0%$0$0$7,361,141Subtotal$53,667,341 $16,509,720 $0 $37,157,621$5,111,296 $9,539,072 $22,507,253Pedestrian/ Bicycle ImprovementsProject #20 Bob Jones TrailPedestrian/Bike Projects Class I Trail from Marsh Street to Prado paralleling SLO Creek / Higuera Street, Calle Joaquin to Oceanaire behind Target & Auto Dealers Along Creek, and Los Osos Valley Road to S. Higuera along creek.14,000 LF Estimated at $785 per LF including Design, ROW, Permitting, Environmental Review / Mitigation, Retaining Walls & Bridges. Based on Final Bob Jones Prado to LOVR costs.$11,000,000$11,000,000 0.0% 76.1% 23.9%$0 $8,367,607 $2,632,393Project #21 Railroad Safety Trail Pedestrian/Bike Projects Completing gaps in Class I Trail paralleling UPRR right of way, with connections and bridges, from CalPoly to Southern City Limit.15,300 LF Estimated at $785 per LF including Design, ROW, Permitting, Environmental Review / Mitigation, Retaining Walls & Bridges.. Based on Final Bob Jones Prado to LOVR costs.$12,000,000$12,000,000 0.0% 76.1% 23.9%$0 $9,128,299 $2,871,701Project #22 Broad Street Bicycle Boulevard / Anholm Bikeway Including Broad St. Ramp Closure & Bike/Ped OverpassPedestrian/Bike Projects Mixture of bikeway and pedestrian enhancements connecting downtown area to schools north of Foothill. Includes CalTrans project development work for closure of the SB US 101 Ramps, grade separation of US 101 and misc mitigation at US 101/HWY1.$3,000,000 for Anholm Bikeway per Page 36 of adopted Anholm Bikeway Plan. $2,000,000 For CalTrans PSR, PA&ED, and PS&E of Broad Street Ramp Closure.$5,000,000$5,000,000 0.0% 76.1% 23.9%$0 $3,803,458 $1,196,542Project #23 Fixilini & Flora Bike BoulevardPedestrian/Bike Projects Connects neighborhoods north of Johnson Avenue along Flora Avenue from Lizzie to Southwood (also along Sequoia to County parcels) including gap closure between Bishop and Fixlini. Ref. Bike Plan A-61 - 65.950 LF Class I @ $325 per LF., $125k for traffic diverter islands and $15k for miscellaneous traffic calming.$450,000$450,000 0.0% 76.1% 23.9%$0 $342,311 $107,689Project #24 Ella Street Bike BoulevardPedestrian/Bike Projects Connects neighborhoods north of Johnson Avenue along Ella and other streets from the Jennifer Street Bridge to Flora BB. Ref. Bike Plan A-66,67.2000 LF @ $25 per LF.$50,000$50,0000.0% 76.1% 23.9%$0 $38,035 $11,965Project #25 Jennifer Street Bridge Morro St. Expansion Pedestrian/Bike Projects Provides direct connection from Jennifer Street Bridge to Morro Street Bike Boulevard at Santa Rosa with new bridge ramp and ADA improvements. Estimated based on Original Jennifer Street Bridge Construction with CPI.$500,000$500,000 0.0% 76.1% 23.9%$0 $380,346 $119,654Project #26 Boyson Ped Bike Separated Xing & Class I Highland-Santa Rosa BypassPedestrian/Bike Projects Traffic Safety project to separate ped/bike crossings at Boyson/HWY 1 (by under/overpass) and connecting to N. Chorro. Bike Plan A-27, A-28.Estimate provided in Hwy 1 Major Investment Study. $3,500,000$3,500,000 0.0% 76.1% 23.9%$0 $2,662,421 $837,579Project #27 Class I Path Broad to Marsh (W side of Hwy 101)Pedestrian/Bike Projects Class I path connecting Broad Street Bike Boulevard to Marsh Street and the Cerro San Luis Trail head/Madonna Bike Path and beyond. Bike Plan A-36.4,000 LF Estimated at $475 per LF including Design, ROW, Environmental Review / Mitigation, & Retaining Walls. Based on Final Bob Jones Prado to LOVR Costs.$2,000,000$2,000,000 0.0% 76.1%23.9%$0 $1,521,383 $478,617Project #28 Los Osos Valley Road Interchange Class I UnderpassPedestrian/Bike Projects Grade separation of Bob Jones Trail/LOVR bike and pedestrians using one of the culverts of the SLO Creek bridge or via Caltrans ROW. Bike Plan A-90.Estimates based on Early LOVR Interchange design which initially included this connection but was later removed.$1,000,000$1,000,000 0.0% 40.0% 60.0%$0 $400,000 $600,000Project #29 Madonna Class I (Hwy 101 to Oceanaire)Class I or IV bike facility on North side of Madonna connecting Madonna Bike Path to Laguna Lake Park then to Oceanaire. Bike Plan A-126, A-127.1,000 LF of Widening Sidewalk to Class I Facility Estimated $850 per LF per Laurel & Orcutt Class I Final Cost. In addition to 2,000 LF of Class I Estimated at $325 per LF construction only.$1,500,000$650,000$850,000 0.0% 40.0% 60.0%$0 $340,000 $510,000Project #30 Broad St. Class I (Rockview to Damon Garcia Park)Pedestrian/Bike Projects Class 1 Path on west side of Broad Street connecting Rockview to MASP and Damon Garcia park. See MASP and Bike Plan A-99 to A-101.1700 LF Estimated at $475 per LF including Design, ROW, Mitigation, & Culverts / Retaining Walls.$800,000 $800,000 0.0% 40.0% 60.0%$0 $320,000 $480,000Project #31 Downtown Bikeways & Bike BlvdsPedestrian/Bike Projects Misc. bicycle and pedestrian enhancements as contained in the Downtown Concept Plan (2017).Signal Modifications & Corner Reconstruction at 9 Intersections estimated at $150,000 each. 3500 LF of Class IV Bikeways estimated at $185 per LF. Including Design & Construction.$2,000,000$2,000,000 0.0% 76.1%23.9%$0 $1,521,383 $478,617Project #32 Cerro Romaulda Class I (Tassajara to Chorro)Pedestrian/Bike Projects Connects N. Choro to Ferinni and Pacheco School to Cal Poly. Bike Plan A-26.525 LF Estimated at $185 per LF including Design & Construction. $650,000 in ROW.$750,000$750,000 0.0% 76.1% 23.9%$0 $570,519 $179,481Project #33 Vachell Lane Class II LanesPedestrian/Bike Projects Constructs Class II bicycle lanes from S. Higuera to Buckley Road. Does not include ROW costs. Bike Plan A-113, Avila Ranch SP.Estimate Provided By Avila Ranch.$650,000$650,000 0.0% 40.0% 60.0%$0 $260,000 $390,000Project #34 Tank Farm Creek Class I (Buckley to Tank FarmPedestrian/Bike Projects Constructs Class 1 trail from Santa Fe Road at Tank Farm across the Chevron property through the Avila Ranch project and connects to Vachell at Buckley Road. Bike Plan A-111, AASP, Avila Ranch SP.Estimate Provided By Avila Ranch.$1,800,000$1,800,000 0.0% 0.0% 100.0%$0$0 $1,800,000Economic & Planning Systems, Inc. 6/19/2019Page 2 of 3Y:\Projects\Oakland\191000s\191053_SLO Citywide TIF Update\Model\Transportation List (Combined).xlsxPacket Pg. 265Item 11
Appendix ATransportation Improvement List, Cost Estimates, and AllocationsSan Luis Obispo Transportation Impact Fee Program Update Nexus Analysis; EPS #191053Description Estimate InformationRegional Existing New Regional Existing NewAllocation - CitywideProject Number NameType (e.g., Geographic Area of Benefit)New Cost EstimateDirect Development ContributionGrant or Other SourcesPFFP Cost EstimateAllocation - CitywideProject #35 Buckley Road Extension Class 1Pedestrian/Bike Projects Constructs Class 1 trail Vachell at Buckley Road to the Bob Jones Trail at S. Higuera and the Octagonal Barn property. Bike Plan A-112, AASP, Avila Ranch. Estimate Provided By Avila Ranch.$800,000$800,000 0.0% 40.0% 60.0%$0 $320,000 $480,000Project #36 Tank Farm & UPRR Bike BridgePedestrian/Bike ProjectsConnects RRST across Tank Farm Road to City limits. Funds citywide component of project, OASP funds remaining. Bike Plan A-58, OASP.See Wallace Eng. Estimate. 11-15-2016 Council Report for OASP PFFP.$1,008,000$252,000$756,000 0.0% 0.0% 100.0%$0$0 $756,000Project #37 Laguna Lake BikewaysPedestrian/Bike Projects Connects Laguna/LOVR area to Foothill area and Cal Poly via a series of Class I trail connections. Bike Plan A-122 to A-125.11,000 LF at $325 per LF construction only.$3,500,000$3,500,000 0.0% 40.0% 60.0%$0 $1,400,000 $2,100,000Project #38 Misc. Class II Bike LanesPedestrian/Bike Projects Miscellaneous Class II improvements as identified in the City Bicycle Plan.80,000 LF Estimated at $25 per LF.$2,000,000$2,000,000 0.0% 76.1%23.9%$0 $1,521,383 $478,617Project #39 Misc. Class III Bike Signs & Markings Pedestrian/Bike Projects Miscellaneous Class III improvements as identified in the City Bicycle Plan.50,000 LF Estimated at $5 per LF.$250,000$250,000 0.0% 76.1% 23.9%$0 $190,173 $59,827Project #40 Misc. Ped/Bike X-Ing ControlsPedestrian/Bike Projects Miscellaneous Traffic Control upgrades at Ped and Bike crossings needed in future (Signal or other control).10 locations estimated at $150,000 each.$1,500,000$1,500,000 0.0% 40.0% 60.0%$0 $600,000 $900,000Project #41 Class I Overpass Industrial & UPRR Pedestrian/Bike Projects Connects growth areas of OASP, MASP and Broad Street industrial areas by installing a grade separation under/over the UPRR train tracks at Industrial Way. Funds citywide component of project, OASP funds remaining. Bike Plan A-57, OASP.See Wallace Eng. Estimate. 11-15-2016 Council Report for OASP PFFP.$2,108,000$1,054,000$1,054,0000.0% 0.0% 100.0%$0$0$1,054,000Subtotal$54,166,000 $1,956,000 $0 $52,210,000$0 $33,687,317 $18,522,683Transit ImprovementsProject #42 Fleet Expansion: 4 BusesTransit ProjectsPer SRTP future forecast of vehicles needed to serve expansion areas. Recovers 25% local match requirement only.$1,500,000$1,500,000 0.0% 76.1%23.9%$0 $1,141,037 $358,963Project #43 Transit CenterTransit ProjectsConstructs Transit Center in Downtown providing enhanced mobility and access for new development and businesses in Downtown, includes transfer locations for RTA and other regional providers. Recovers 25% local match requirement only.Estimate provided by SLOCOG. In excess of $12m. PFFP Cost capped at $5m pursuant to current TIFF program.$5,000,000$5,000,0000.0% 76.1% 23.9%$0$3,803,458$1,196,542Subtotal$6,500,000 $0 $0 $6,500,000 $0$4,944,495 $1,555,505OtherProject #44 Traffic Volume Count Program and Traffic ModelMisc. Conducts biannual traffic counts and traffic model updates for use in development Traffic Impact Studies. Counts estimated @ $40K biannually for 20 years, Traffic Model update every 5 years at $100K ea.$900,000 $900,000 0.0% 0.0% 100.0% $0 $0 $900,000Project #45 S. Broad Street Medians Corridor Improvements Medians from South to Orcutt Per S. Broad Street Corridor Plan. 200 LF Estimated at $1,000 per LF. $2,000,000$2,000,00020.0% 0.0% 80.0% $400,000$0$1,600,000Subtotal$2,900,000 $0 $0 $2,900,000$400,000 $0 $2,500,000CITYWIDE BASE SUBTOTAL$216,804,836$21,465,720 $23,800,000 $171,539,116$16,702,296 $49,806,372 $105,030,448PRADO ROAD INTERCHANGE ADD-ONInterchange ImprovementsProject #2 Hwy 101/Prado Rd InterchangeInterchange Improvements Build full interchange at 101. Development of San Luis Ranch (Dalidio) Area shall include a circulation analysis of alternatives to a full access interchange, an analysis of compact interchange designs that minimize open space / ag. land impacts, and an analysis of potential incremental phasing of the interchange elements.Estimate is based on median range of the preliminary Project Study Report (PSR) estimates.$35,000,000$9,800,000$6,000,000 as part of regional funding$25,200,000 30.0% 0.0% 70.0% $7,560,000$0 $17,640,000Project #2F Hwy 101/Prado Rd InterchangeFinancing $11,023,545 $11,023,545 0.0% 0.0% 100.0%$0$0 $11,023,545PRADO ROAD INTERCHANGE ADD-ON BASE SUBTOTAL$46,023,545$9,800,000 $36,223,545$7,560,000$0 $28,663,545LOVR INTERCHANGE ADD-ONProject #1 Hwy 101/LOVR Interchange Improvements Interchange Improvements Estimate is based on actual final cost.$7,134,172 $7,134,172 0.0% 0.0% 100.0%$0$0 $7,134,172Project #1F Hwy 101/LOVR Interchange Improvements Financing $4,502,661 $4,502,661 0.0% 0.0% 100.0%$0$0 $4,502,661LOVR INTERCHANGE ADD-ON BASE SUBTOTAL$11,636,833 $11,636,833$0$0 $11,636,833TOTAL IMPROVEMENT LIST$274,465,214$31,265,720 $23,800,000 $219,399,494$24,262,296 $49,806,372 $145,330,826Sources: City of San Luis Obispo; Cambridge Systematics; Wallace Group; and Economic & Planning Systems, Inc.Economic & Planning Systems, Inc. 6/19/2019Page 3 of 3Y:\Projects\Oakland\191000s\191053_SLO Citywide TIF Update\Model\Transportation List (Combined).xlsxPacket Pg. 266Item 11
RECEIVED
JUN 2 4 2019
SLO CITY CLFRK
1010 Marsh St., San Luis Obispo, CA 93401
(805) 546-8208 + FAX (805) 546-8641
PROOF OF PUBLICATION
(2015.5 C.C.P.)
STATE OF CALIFORNIA,
County of San Luis Obispo,
I am a citizen of the United States and a
resident of the county aforesaid; I am over the
age of eighteen years, and not a party interested
in the above entitled matter. I am the principal
clerk of the printer of the New Times, a
newspaper of general circulation, printed and
published weekly in the City of San Luis
Obispo, County of San Luis Obispo, and which
has been adjudged a newspaper of general
circulation by the Superior Court of the County
of San Luis Obispo, State of California, under
the date of February 5, 1993, Case number
C.V72789: that notice of which the annexed
is a printed copy (set in type not smaller than
nonpareil), has been published in each regular
and entire issue of said newspaper and not in
any supplement thereof on the following dates,
to -wit:
—So yu- zo
in the year 2019.
I certify (or declare) under the the penalty of
perjury that the foregoing is true and correct.
Dated at San Luis Obispo, California, this
day Z10 of -�JYIC , 2019.
Patricia Horton, New Times Legals
\,Iniin x PununalhNTMO Ad.,iMyrMri 0111—BUS(NLS.S/Puhlir Nh
Proof of Publication of
SAN LUIS OBISPO CITY
COUNCIL
NOTICE OF PUBLIC MEETING
The San Luis Obispo City Council invites all interested persons
to attend a public meeting on Tuesday, July 2, 2019, at
6:00 p.m. in the City Hall Council Chamber, 990
Pifm Street, San Luis Obispo, California, relative to
the following:
• Introduce an Ordinance and adopt a Resolution to Adopt
and Implement Recommended Updates to the Los
Osos Valley Road Subarea Traffic Impact Fee Program to
reflect current growth assumptions and remaining costs.
• Adopt a Resolution updating the Citywide Traffic Impact
Fee Program to reflect current growth assumptions and
current project cost estimates.
For more information, you are invited to contact Jake Hudson
of the City's Public Works Department at (805) 781-7255 or by
email at jhudson®slocity.org.
• Introduce an Ordinance amending the Municipal Code'
related to Tree Removals. (Section 12.24 030, 12.24 090,
and 12,24.180)
For more information, you are invited to contact Matt Horn of
the City's Public Works Department at (805) 781-7191 or by
email at mhorn®slocity.org.
The City Council may also discuss other hearings or business
items before or after the items listed above. If you challenge
the proposed projects in court, you may be limited to raising
only those issues you or someone else raised at the public
hearing described in this notice, or in written correspondence
delivered to the City Council at, or prior to, the public hearings.
Reports for this meeting will be available for review in the City
Clerk's Office and online at www.slocity.org on Wednesday,
June 26, 2019. Please call the City Clerk's Office at (805) 781-
7100 for more information. The City Council meeting will be
televised live on Charter Cable Channel 20 and live streaming
on www,slocityorg.
Teresa Purrington, City Clerk
City of San Luis Obispo
June 20, 2019
7/2/2019 Item 11 ‐ Staff Presentation
1
Los Osos Valley Road Subarea &
Citywide Traffic Impact Fee Program Updates
Development Impact Fees 101
- One-time charges to new development to fund Capital Improvements
required to serve new development
- Funds only capital costs, cannot be used for ongoing services or
operating costs.
- Impact Fee Programs are Governed by Mitigation Fee Act (Government
Code Section 66000)
- The Purpose & Use of the Fee has to be defined
- Has to be a relationship or nexus between new development and
Purpose/Use of the Fee
- Fees have to be proportional to the need generated by new
development.
Why Are Fees Beneficial to New Development ?
1
2
7/2/2019 Item 11 ‐ Staff Presentation
2
Calle Joaquin Realignment
Landscaping
Los Verdes Settlement
Auto Park Traffic Signal
SB Ramp Metering
Calle Joaquin Park & Ride
Total Costs: $50,000,000
Expenditures: $33m
Costs Moved to Citywide Fee: $12m
Remaining Costs: $5m
CHANGES IN FEE LOVR PROGRAM COSTS
Current Fee Program (Pre-LUCE Landuse)
Retail: 445,000 SQFT
Hotel: 227 Rooms
Business Park: 120 Acres
Proposed Fee Program
Retail: 145,000 SQFT
Hotel: 120 Rooms
Single-Family Res. : 143 Units
Multi-Family Res. : 909 Units
Life Plan Community: 136 Trips
CHANGES IN LOVR FEE PROGRAM LANDUSE
3
4
7/2/2019 Item 11 ‐ Staff Presentation
3
Remaining Costs Remaining Trip Generation
RECOMMENDED LOVR FEES
(ie. Froom Ranch Life Plan Community)
5
6
7/2/2019 Item 11 ‐ Staff Presentation
4
CITYWIDE IMPACT FEE CLEANUP
Updated Landuse Assumptions
Updated Costs
Infrastructure Project Prior
Estimate
New
Estimate
Reason for Increase
1.Orcutt & Tank Farm Roundabout
PFFP Project #4
$1,700,000 $2,750,000 Project scope increased due to
unanticipated drainage affects and
corresponding design changes.
2.California & Tank Roundabout
PFFP Project #9
$1,500,000 $1,750,000 Construction & Right of Way Costs
Higher Than Preliminary Estimates.
3.Higuera & Tank Farm Int. Widening
PFFP Project #7
$2,000,000 $2,300,000 Project scope increased to include design
costs per Avila Ranch Development
Agreement.
4.Higuera: Widening (Bridge to Elks) &
Sidewalks (Vachell to City Limits)
PFFP Project #13
$655,000 $1,007,688 Increased Costs. Project scope increased to
include design and right of way costs per
Avila Ranch Development Agreement
Total Cost Increase: $1,952,688
7
8
7/2/2019 Item 11 ‐ Staff Presentation
5
RECOMMENDED CITYWIDE FEES
Staff Recommendation
1. Introduce and Ordinance and adopt a Resolution to implement updates
to the Los Osos Valley Road Subarea Traffic Impact Fee Program to
reflect current growth assumptions and remaining costs.
2. Adopt a Resolution updating the Citywide Traffic Impact Fee Program
to reflect current growth assumptions and current project cost estimates.
4.56.040 – Fees to be set by resolution
Fees shall be adjusted annually by modifying the adopted value up or down in
conformance with the California Engineering News Record Construction Cost Index
as published by the Depart of Governmental Services. The factor for the adjustment
of the fees shall be calculated and established each January July by the director of
Financefinancial services….
1+Current Index – Base Index for Date of Adoption
Base Index for Date of Adoption()1+
9
10
RE'CETV; ;I-)
JUL 15 201
L0
1010 Marsh St., San Luis Obispo, CA 93401
(805) 546-8208 . FAX (805) 546-8641
PROOF OF PUBLICATION
(2015.5 C.C.P.)
STATE OF CALIFORNIA,
County of San Luis Obispo,
I am a citizen of the United States and a
resident,of the county aforesaid; I am over the
age of eighteen years, and not a party interested
in the above entitled matter. I am the principal
clerk of the printer of the New Times, a
newspaper of general circulation, printed and
published weekly in the City of San Luis
Obispo, County of San Luis Obispo, and which
has been adjudged a newspaper of general
circulation by the Superior Court of the County
of San Luis Obispo, State of California, under
the date of February 5, 1993, Case number
CV72789: that notice of which the annexed
is a printed copy (set in type not smaller than
nonpareil), has been published in each regular
and entire issue of said newspaper and not in
any supplement thereof on the following dates,
t0 -R' lt:
in the year 2019.
1 certify (or declare) under the the penalty of
perjury that the foregoing is true and correct.
Dated at San Luis Obispo, Cal-fc�rnia, this
day �� of "r u .2019.
Patricia Horton, New *rifnes Leg. s
Ad lAdmiONTMG 0ff:W;.SINr'_1S,Nb1i, N(a;P,f rOr Pub
Proof of Publication of
r
7 1 r
ORDINANCE NO. 1663
(2019 SERIES)
Ary ORDINANCE OF TkiE Crit' COUNCIL OF
THF CITY THE SAN k E MVT 1C LUIS OBISPO, PAL CODE ERN
AMENDINGTO
ESTABL4SFI AN UPDATED TRANSPORTATION
DEVELOPMENT WFACT FEE PROGRAM FOR
TkfE LOS OSOS VALLEY R040 • SUBAREA
AND MAKE RELATED AND CONFORMING
AM No.129M 1994 SERIFSIITo H+1CLU DENTSTO C if AFTER 4.56 E HF LOS
AND
ADO P1 FCIA EXEMPTION FINDIINGS
T
NOTICE IS HEREBY GIVEN that the City Council of the City of
San Luis Obispo, California, at its Regular Meeting of July 2nd,
Council Member Gomezzthe ,, second d byyordinancee titled Counc I Membertion Carlyn
Christianson, and on the following roll call vote:
AYES: Council Member Christianson, Gomez, Stewart, Vice
Mayor Pease, and Mayor Harmon
14DES: None
Ufdinance No, 166312,019 SoffP,10 -Th's is a City Ordinance
t"t updates LOVR Subarea ano Citrivldo irAnsponatl o
inrpact tae pfagrarrrs. Conslstonf with city pa y.
res pro{Irarns will help ensure 11101 now dovelOPmenr
cunuibutes its fair share to nooded irrlrastnrcture and public
facilrtiss, rte single development iY burdened wide the lull
m
cost impl0mantlnyl ipact lee progranr prviKts• $"d helps
to sustain the C1 YL aluality of life and pcpre"Ir vitality
growth or:curs. Traffle Impacl Fees for the LMR xiub"(tly
ProtlTam nre rarommanded to be reduced by . PP
f,54e' for all land uses oxc0t for retail which is WOPosed
to ofarn of b'! 23%Ornmcin4edcto 'i crease by Ppravdrnat iy SL5
cl poi, jar the CiiVwIde
Program era recgm
to 6% for all land uses.
A full and comptere copy of She alar City C>QrsdlOfl cr
is ar�ilobre for inspection and copy
located at 00 palm Slreal. Sen Lull 01116170. CeliWF' e, or you
nary call 18051761-7100 ter mon' inlornri0on•
NOTICE IS HEREBY FURTHER GIVEN that the City Court(',]
of Slee City of San Luis Obi9po will com4nt adoptln9 the
nforonlantirknad ordinance at its Regular Walirig of ,luly.
IGth, 2019 at 5:00 p.nJ•, v+h+ch will N held in 010 Council
Chanibat, located tit Zgo Palm Street, San Luis Obispo.
California.
Teresa Purrington
City Clerk
July 11, 2019