Business Agenda Item 4b
STAFF REPORT
Business Agenda Item
DATE: May 4, 2026
TO: Honorable Mayor and Council Members
FROM: Amy Nilsen, City Manager
SUBJECT: Consideration of Designating the Redwood Transit System Stop at 11th & N Streets as a "Major Transit Stop" in Humboldt County Association of Government’s Regional Transportation Plan
STAFF RECOMMENDATION:
It is recommended that the City Council:
1. Provide direction on whether to support designating the Redwood Transit System (RTS) stop at 11th & N Streets as a "major transit stop" in Humboldt County Association of Government’s (HCAOG) Regional Transportation Plan RTP) (VROOM 2026–2046), and authorize the City Manager to sign and transmit a comment letter to HCAOG reflecting the Council's position.
2. If supportive (or supportive with conditions), direct staff to: (a) prepare parking management and objective design standards applicable within 1/2 mile of the stop; and (b) evaluate any needed adjustments to traffic impact fee schedules to comply with AB 2553 (2024).
EXECUTIVE SUMMARY:
HCAOG has initiated a formal agency comment period on adding 14 additional "major transit stops" to its RTP, using a defensible methodology based on stops with at least 50 average daily boardings/alightings (serves a minimum of 1% of regional ridership). One of the proposed additions is the Redwood Transit System stop at 11th & N Streets in Fortuna. Following Policy Advisory Committee discussion on February 19, 2026, HCAOG deferred final inclusion of the Fortuna stop pending City comment; written comments are requested by May 8, 2026, with HCAOG consideration on May 21, 2026.
Designating a "major transit stop" has direct land-use and CEQA implications within a one-halfmile radius: (1) AB 2097 (2022) generally prohibits minimum off-street parking requirements for most developments; (2) AB 2553 (2024) requires lower vehicular traffic impact fees for qualifying housing near major transit stops and updates the statutory definition of "major transit stop"; and (3) Governor’s Office of Planning and Research (OPR) CEQA Technical Advisory presumes certain projects within one-half mile of a major transit stop have less-than-significant Vehicle Miles Traveled (VMT) impacts, which can streamline environmental review.
Business Agenda Item 4b
Council action today would provide policy direction for the City's comment letter to HCAOG and, if supportive, initiate local implementation work (e.g., parking management and objective standards) to responsibly realize benefits while addressing community concerns.
BACKGROUND:
On February 19, 2026, the HCAOG Board considered adopting the RTP update (VROOM 2026– 2046) and discussed expanding the list of "major transit stops." The first cut-off of stops that serve over 150 daily average boardings/alightings which are the original seven locations designated as major transit stops in 2024 and located in Eureka, Arcata, and Humboldt County (College of the Redwoods). HCAOG staff identified a second threshold—stops serving 50 average daily boardings/alightings (serves a minimum of 1% of regional ridership)—yielding 14 proposed new locations. Following interagency discussion, staff recommended deferring the additions for a short, formal local review period. HCAOG’s March 5, 2026, letter to the City opens a comment period through May 8, 2026, and notes that the Fortuna stop (RTS 11th & N) is a proposed addition to be brought back to the Board on May 21, 2026.
Designating major bus stops in an RTP qualifies those locations as a 'major transit stop' for the purposes of state infill-encouragement legislation. Under the Public Resources Code (PRC), "major transit stop" includes specified rail/bus rapid transit stations, ferry terminals, and intersections of two or more major bus routes meeting a service frequency threshold. AB 2553 (2024) amended PRC §21064.3 effective January 1, 2025, to set the bus frequency criterion at 20 minutes or less during peak periods and harmonize related housing/fee provisions.
Key effects within 1/2 mile of a designated stop.
• Parking: AB 2097 generally precludes cities from imposing "minimum" off-street parking requirements on most residential, commercial, and other specified developments within 1/2 mile of a major transit stop (with limited exceptions and documentation requirements).
This can lower project costs and support infill housing but may raise on-street parking management considerations.
• Impact fees: AB 2553 requires local agencies that levy vehicular traffic impact mitigation fees on housing to set lower rates for qualifying projects near major transit stops/transit priority areas.
• CEQA Vehicle Miles Traveled (VMT): OPR Technical Advisory provides a screening presumption that certain projects located within 1/2 mile of a major transit stop will have a less-than-significant VMT impact, reducing time and cost for CEQA review. Local VMT guidelines still apply for detailed cases.
The 1/2-mile radius from 11th & N would encompass much of central Fortuna. If designated, future private projects in that area could opt to build less parking without a "minimum" requirement; qualifying housing could see reduced traffic impact fees; and many projects could rely on streamlined VMT analysis. The City would retain authority to adopt objective design standards, shared/managed parking policies, and curb management to address spillover and safety.
Staff can return with a draft toolkit (permits, time limits, shared-parking agreements, and data collection) if Council supports designation.
Business Agenda Item 4b
HCAOG is seeking local input on the “50 average daily boardings/alightings (serves a minimum of 1% of regional ridership)" methodology. If Council has concerns, the comment letter could request: (a) documentation of stop-level counts for RTS 11th & N; (b) a commitment to refresh counts periodically; and (c) a formal amendment schedule to add/remove stops as data evolve.
OPTIONS:
1. Support designation and transmit a letter of support and authorize the City Manager to sign. Direct staff to prepare a local implementation workplan (parking management, objective standards, fee schedule compliance) and return within 90 days.
2. Support in concept, contingent on HCAOG providing stop-specific boarding data, a periodic update protocol, and a commitment to map-based coordination; transmit a conditional support letter.
3. Do not support designation at this time; transmit a letter requesting deferral pending further data/methodology refinements.
4. Provide other direction to staff.
FISCAL IMPACT:
No immediate direct fiscal impact is associated with transmitting a comment letter. If the stop is designated, there may be longer-term fiscal implications: potential reductions in traffic impact fee revenues for eligible housing within the 1/2-mile area; staff time to prepare parking management tools and objective standards; and potential eligibility benefits when competing for state/federal funding that favors transit-oriented infill. Staff will return with resource needs if Council directs an implementation workplan.
RECOMMENDED COUNCIL ACTION:
1. Receive staff presentation and review Council questions
2. Open Public Comment
3. Close Public Comment
4. Motion to select an option above and authorize the City Manager to sign a comment letter to HCAOG. Roll call vote.
ATTACHMENTS:
• HCAOG Letter to City of Fortuna re: Major Transit Stop Designation (March 5, 2026)