CITY COUNCIL MEETING
MAY 3, 2022
PRESENTATIONS
WORK SESSION
ITEM #10
WS 22-012
PROPOSED TRAFFIC
IMPACT FEES
AND
NEXUS STUDY
City of Hayward
Traffic Impact Fee
City Council Work Session
May 3, 2022
2 Agenda
• City Goals and Purpose
• Process Overview & Stakeholder Outreach
• Feasibility Findings
• Staff Recommendation
• Jurisdictional Comparisons
• Stakeholder Feedback
• Local Transportation Analysis Process
Integration & Coordination
• Next Steps
• Q&A
3 City Goals and Purpose
• Address impacts of growth on City streets
• Streamline City transportation review process
• Avoid disincentivizing new development
• Evaluate financial feasibility
• Compare across jurisdictions
• Be attentive to economic recovery in sectors most
impacted by COVID
4 Process Overview
Traffic Impact Fee (TIF)
• Nexus Study provides maximum
allowable fees
• Feasibility Study analyzes
development feasibility and impact
of TIF
• Jurisdictional Comparisons
• Staff Recommendation
Local Transportation
Analysis (LTA) Process
• Simplify LTA Process
• Integrate with TIF to avoid
disincentivizing new development
5 Stakeholder Outreach
Key Dates and Meetings
• Individual meeting with Chamber of Commerce – 1/25/2022 • The Stack Extra Edition TIF article distributed to 65,000 subscribers – 2/2/2022 • Email invitation to 420 developer contacts – 2/2/2022 • Stakeholder Presentation and meeting – 2/9/2022
• LinkedIn post shared by Economic Development Manager Paul Nguyen to 1,450 followers including industrial and commercial developers – 2/23/2022 • Council Infrastructure Committee presentation – 2/23/2022 • Presentation to the Chamber of Commerce Government Relations Committee – 3/4/2022
6 Stakeholder Outreach Post CIC Meeting
Key Dates and Meetings
• Personal outreach to 40+ stakeholders – week of 3/21/2022 • Email invitation to 420 developer contacts plus an additional 200 contacts provided by the Chamber – 3/9/2022
• Social media posts advertising upcoming presentation – 3/28/2022 • Second Stakeholder Presentation and meeting – 3/31/2022 • Planning Commission Presentation – 4/14/2022
7 Benefits of Traffic Impact Fee
Increased Certainty
• Fee schedule available in advance
• Plan for approximate fee based on
schedule
• Systemwide transportation
improvement costs are spread
across all new development
Simplified Process
• Simplifies the overall LTA process
• Improvements in the TIF are
excluded from LTA
Decreased LTA Costs
• With TIF traffic study costs are
reduced
• Current: $50,000 – 65,000
• With TIF: $25,000 – 40,000
Reduced Approval Time
• Time required for review and
approval of LTA are reduced
• Current: ~ 12 weeks
• With TIF: ~ 6-8 weeks
8 Development Feasibility Summary
Promising: Industrial Warehouse
• Extremely strong regional demand
• Central location
• Modeling shows positive residual land value
Possible: Life Sciences
• Strong regional demand
• Development costs are very high for these products
• Need high rents, possibly upward of $50 psf
PROMISING | POSSIBLE | MARGINAL | CHALLENGED
9 Development Feasibility Summary
Marginal:
Single Family Residential
• Strong regional demand for housing
• Some development is occuring, especially townhouses
• Strong sales prices
• High development and land costs create challenges
Multifamily Residential
• Limited recent multifamily development
• Impacts of pandemic and ongoing eviction moratoria
• Decreased lease rates
• Increase vacancy rates and credit loss
• Strong regional demand for housing
PROMISING | POSSIBLE | MARGINAL | CHALLENGED
10 Development Feasibility Summary
Challenged
Retail Center (Anchored)
• Uncertain future due to pandemic
• Achievable lease rates do not support new construction • Some retail anchors can make new retail more feasible Retail – Restaurant
• Similar trends to general retail
• Housing growth may support incremental additions to inventory Commercial Office
• Weak market demand
• Lease rates generally do not support new construction PROMISING | POSSIBLE | MARGINAL | CHALLENGED
Land Use Maximum
Allowable Reduction Fee Feasibility Waived?
Single Family (per unit) $11,584 70% $3,475 Marginal No Multifamily (per unit) $7,761 - Marginal Yes*
Retail (per KSF) $19,460 - Challenged Yes*
Office (per KSF) $16,449 - Challenged Yes*
General Industrial (per KSF) $4,633 30% $3,243 Promising No Distribution/e-Commerce (per KSF) $8,224 30% $5,757 Promising No 11 Staff Recommendation
• KSF is one thousand square feet
• *For development feasibility purposes
12 Staff Recommendation
Fee Reductions
• Reduce residential rates by 70%
• Reduce nonresidential rates by 30%
Postpone Selected Land Uses
• Postpone implementation of traffic impact fees for multifmaily, retail and office • Serve broad economic development and public purposes
Multiple Industrial Categories
• Include separate rates for different industrial uses: General Industrial and Distribution/e-Commerce
13 Staff Recommendation
Exemptions
• Affordable Housing consistent with Park In-Lieu Fee
• ADUs
Process
• Effective July 1, 2022
• Entitlement applications submitted before July 1 will be grandfathered at current rates • Include annual automatic construction inflation index • Review TIF rates and program after three years
14 Fee Comparison: Single Family
Three Bedroom Single
Family Attached Dwelling
Unit (2,000 sq ft)
Daly City
Cupertino
Fremont
Union City
Hayward (Max)
Sunnyvale
Hayward (rec)
Hayward
(current)
Concord
San Leandro
Alameda
Traffic Parks Capital Facilities Fire Other Affordable Housing 15 Fee Comparison: Multifamily
Staff recommend
postponing multifamily fees
Prototype 2: One
Bedroom Multifamily
Dwelling Unit (700 sq ft)
Sunnyvale
Cupertino
Daly City
Union City
Fremont
Hayward (max)
Hayward (current
& rec)
Concord
Alameda
Traffic Parks Capital Facilities Fire Other Affordable Housing 16 Fee Comparison: General Industrial
Prototype 3: General
Light Industrial/Spec
Warehouse (250,000 sq
ft)
Cupertino
Union City
Sunnyvale
Fremont
Hayward (max)
Alameda
Hayward (rec)
Concord
Daly City
San Leandro
Hayward (current)
Traffic Parks Capital Facilities Fire Other Affordable Housing 17 Fee Comparison: Distribution/e-Commerce
Prototype 3:
Distribution/e-
Commerce (250,000
sq ft)
Cupertino
Union City
Sunnyvale
Hayward (max)
Fremont
Hayward (rec)
Alameda
Concord
Daly City
San Leandro
Hayward (current)
Traffic Parks Capital Facilities Fire Other Affordable Housing 18 Fee Comparison: Retail
Staff recommend
postponing retail fees
Prototype 4: Retail
Center (50,000 sq ft)
Union City
Cupertino
Hayward (max)
Fremont
Sunnyvale
Concord
Alameda
San Leandro
Daly City
Hayward
(current & rec)
Traffic Parks Capital Facilities Fire Other Affordable Housing 19 Fee Comparison: Office
Staff recommend
postponing office fees
Prototype 6:
Commercial Office
(60,000 sq ft)
Cupertino
Union City
Sunnyvale
Hayward (max)
Fremont
Alameda
Concord
San Leandro
Daly City
Hayward
(current & rec)
Traffic Parks Capital Facilities Fire Other Affordable Housing 20 Stakeholder Feedback
Fee Reduction for Single Family
• Should the single family rate be increased?
• Staff response:
• Single family is experiencing significant demand
• But construction and land costs are high
• Analysis shows marginal feasibility for single family Use of Funds for Alternative Modes of Transport
• Funds collected from TIF should be used mostly for improvements for biking, walking and transit
• Staff Response:
• 82% of TIF fund is dedicated to bike and pedestrian improvements • 18% is dedicated to vehicular/transit improvements and improvements that benefit all modes
21 Stakeholder Feedback
Impacts to Pipeline Projects
• Concerns about impacts on projects in pipeline
• Staff response:
• No fee for projects currently in pipeline
• Projects submitted after adoption subject to fee
Transit Capital Costs
• Concerns that original Nexus Study did not include capital costs for AC Transit projects
• Staff response:
• Coordinated with AC Transit on projected capital costs • Coordinated with TJKM to update the Nexus Study accordingly 22 Developer Feedback (3/4)
Outreach process
• Chamber of Commerce and other Stakeholders recommended additional outreach to development community
• Staff response:
• Scheduled a second stakeholder meeting
• Conducted personal outreach to 40 + stakeholders to enhance outreach process
Grandfathering for In Progress Applications
• Entitlement applications within the pipeline should not be subject to the updated fee • Staff response:
• New rates will be effective July 1, 2022
• Entitlement applications submitted prior to July 1, 2022 will be grandfathered at current rates
23 Developer Feedback (3/4)
Fee Comparison Selections
• Some of the selected cities used for comparison represent markets with different characteristics from Hayward
• Staff response:
• Selection of cities was intended to provide a broad cross-section of potential comparisons
• Cupertino, for example, is included because it has one of the latest traffic impact fee nexus studies in the region
• Others are selected to provide comparisons with neighboring communities and communities across the East and South Bay
24 Stakeholder Feedback (3/31)
Background on Decision to Charge Single Family
• When both residential types have marginal feasibility, what is the rationale behind charging for single family residential development?
• Staff response:
• Single family is experiencing significant demand unlike multifamily • Seeing escalation in home prices unlike the stagnation being seen in rents • Recommendation is to set the fee with a 70% reduction from the maximum Impacts to LTA
• How does the adoption of the TIF impact the LTA process? • Staff response:
• Fee schedule for TIF will be available up front
• TIF will replace the traffic analysis currently required to address systemwide improvements required to serve growth
• Local project specific improvements not included in the nexus study may still require LTA • City staff have prepared materials and information to explain the process 25 Stakeholder Feedback (3/31)
Relationship to CEQA Vehicle Miles Traveled (VMT)?
• How will the TIF tie into the VMT analysis required under CEQA? • Staff response:
• The TIF is outside of CEQA
• If a project necessitates a VMT the TIF will not change that process Impacts to Businesses
• How could the fee impact businesses?
• Staff response
• Staff recommendation waives TIF for retail and office uses • General industrial and e-Commerce are experiencing record demand • Recommended fee is set at a 30% reduction from the maximum 26 Planning Commission Themes (4/14)
Single Family Rate Reduction
• Is the recommended reduction to the single family rate too large and is there an option to apply a smaller reduction to the fee for large homes? • Staff Response
• The single family rate, defined in the Nexus Study, includes all types of single family homes, including townhomes.
• Very few cities charge the maximum allowable rate.
• The City’s proposed TIF for single family is comparable to those at benchmark cities.
• Traffic generation is not directly related to the size of a single family home. • The process for developing the recommended rates for housing, staff and the consultant examined development feasibility in an effort to avoid disincentivinzing housing development and align with recent Senate Bills. • The City is also considering the potential of increasing other fees and requirements that may also impact feasibility, for example the Affordable Housing Ordinance. • The recommendation includes a performance review of the TIF program in 3-years. 27 Planning Commission Themes (4/14)
Impact of the TIF on the LTA Process
• Will there still be a need for LTA with the TIF program? What is the benefit for developers?
• Staff Response
• The TIF will provide certainty to the process through the published fee schedule. • Some projects may still require LTA analysis. These are not the majority of projects and the LTA analysis will typically not be required for smaller projects. • Projects that are included in the TIF list will not be included in any LTA analysis, if required.
Distribution/e-Commerce Fee Reduction
• What is the reason for not recommending a smaller reduction to the Distribution/e- Commerce rate?
• Staff Response
• The reduction to the maximum allowable fee is already reasonably small at 30%. • The City’s proposed TIF for Distribution/e-Commerce is comparable to those at benchmark cities.
28 Planning Commission Themes (4/14)
Other Points of Discussion
• Exemption for ADUs
• Hypothetical impact of a TIF on the Amazon Distribution Center discussions
• Benefit to developer to opt-in to the TIF program (when vested at current program)
• Types of development applications that will necessitate a TIF or an LTA
• Credits for eligible infrastructure development
29 LTA Process Integration & Coordination
LTA Process Flowchart
• Outlines the process to determine LTA requirements
• Questions to determine thresholds
• TIF exemption applicability & TIF table
• VMT map zone color & CEQA/VMT analysis guidelines
• Trip generation rate & LTA analysis guidelines
• Component specific memorandum thresholds
Frequently Asked Questions (FAQs) Document
• Answers key questions on the permit application process • Links to resources
30 Next Steps
• City Council consideration of recommendation – May 17 Land Use Maximum
Allowable Reduction Fee Feasibility Waived?
Single Family (per unit) $11,584 70% $3,475 Marginal No Multifamily (per unit) $7,761 - Marginal Yes*
Retail (per KSF) $19,460 - Challenged Yes*
Office (per KSF) $16,449 - Challenged Yes*
General Industrial (per KSF) $4,633 30% $3,243 Promising No Distribution/e-Commerce (per KSF) $8,224 30% $5,757 Promising No 31 Staff Recommendation
• KSF is one thousand square feet
• *For development feasibility purposes
Staff recommends City Council review and provide
feedback on the proposed TIF.
32 Questions?
PUBLIC HEARING
ITEM #11
PH 22-023
603 A STREET
Hayward Police Department Year-End Report
1 Public Hearing and Resolution to Vacate
Public Utilities
Easement
at 603 A Street
City Council Public Hearing
May 3, 2022
Scott Wikstrom, Development Services Engineer
Hayward Police Department Year-End Report
2 Public Utilities Easement at 603 A Street
• PUE Acquired in 1993
for a Streetlight Project
• Approx 12’ x 12’ Area
• City Utilities
Subsequently Relocated
• Vacation per Streets
and Highways Code
Hayward Police Department Year-End Report
3 Public Utilities Easement at 603 A Street
STAFF
RECOMMENDATION
That the City Council:
✓ Adopt the Resolution to Vacate an existing
Public Utilities Easement at 603 A Street
LEGISLATIVE BUSINESS
ITEM #12
LB 22-011
STRATEGIC ROADMAP
UPDATE
Adoption of
Updated Strategic
Roadmap
• Overall, Council agreed with the workplan for FY23 and feels positive about the City’s progress
• Council agreed with the approach to include a racial equity framework into the plan
• Council added three projects and brought up several additional topics
• Full summary included as Attachment IV
January Council Retreat Summary
Proposed Updated Priority Titles
● Community-based response models
● Emergency preparedness
● Cleanliness and blight reduction
● Library and educational programs
● Celebrate heritage & confront inequities
● House and support people
experiencing homelessness
● Incentivize housing production for all
● Protect the affordability of existing
housing
Preserve, Protect &
Produce Housing For All
Enhance Community
Safety & Quality of Life
● Reduce greenhouse gases and
dependency on fossil fuels
● Promote a circular economy
● Mitigate climate crisis impacts through
resilient design
Confront Climate Crisis &
Champion Environmental Justice
● Multi-Modal Transportation
● City-Owned Facilities & Property
● Water Supplies, Sanitation & Sewers
● Community-wide Internet
Infrastructure & Access
Invest in
Infrastructure
Grow the
Economy
● Fiscal sustainability
● Employee engagement and retention
● Communications, transparency, and
community engagement
● Safe & collaborative work environment
Strengthen
Organizational Health
● Invest in the future through businesses
support services
● Enhance marketing
● Workforce development pipelines
● Strategically dispose of City property
● Create thriving commercial corridors
Updates to Format
Council Survey: Top Voted Projects for FY23
Enhance Community Safety & Quality of Life
• Mobile mental health response & District Command behavioral health clinician • Work across strategic roadmap priorities to include racial equity lens • Dispatch needs assessment and capacity
• Continue illegal dumping prevention pilot program
• Negotiate updated master lease agreement with HARD
• Engage owners of vacant building properties to encourage activation • Work with the survivors and descendants of Russell City to determine appropriate restitution
Preserve, Protect & Produce Housing For All
• Update Housing Element
• Continue work on updating the Affordable Housing Ordinance • Leverage partnerships to support the creation of eligible home key projects, including hotel conversations
• Explore program to convert tax-defaulted properties to affordable housing
• Explore Safe Parking Site
Council Survey: Top Voted Projects for FY23
Confront Climate Crisis & Champion
Environmental Justice
• Explore funding opportunities to increase the circular food economy as part of the Alameda County ALL IN Eats Initiative
• Adopt & implement 2030 Green House Gas Reduction Goal & Roadmap
• Implement Shoreline Master Plan, including mitigating sea level rise in the industrial corridor through building requirements and outreach • Water conservation measures like increasing recycled water supplies Council Survey: Top Voted Projects for FY23
Invest in Infrastructure
• Corporation Yard renovation and building safety upgrades • Implement major corridor traffic calming initiatives, with a focus on Patrick Ave and Campus Drive
• Construct additional EV charging facilities
• Stack Center fundraising and construction
• La Vista Park design and construction
Council Survey: Top Voted Projects for FY23
• “Hayward Restore & Reopen Façade Program” – Grants and loans to improve blighted storefronts
• Revise alcohol use regulations to support existing and encourage more full-services restaurants
• Explore an outdoor marketplace that allows for a variety of vendors Grow the Economy
Council Survey: Top Voted Projects for FY23
Strengthen Organizational Health
• Develop talent acquisition plan for citywide and critical positions • Implement new online planning and permitting solution • Create a language accessibility policy and program for city services Council Survey: Top Voted Projects for FY23
ADDITIONAL TOPICS STAFF’S RECOMMENDED ACTION
Public Art An informational report on this item is going to Council tonight Fiber/Internet Access
A report outlining the current internet needs for Hayward businesses and the approaches that other jurisdictions have taken will go to the Infrastructure Committee in FY23
Smoke Free Ordinance
for Apartments
Staff will provide a memo to Council during FY23 outlining the feasibility and potential costs.
Public lighting An update on existing public lighting and possible opportunities to improve lighting, will go to the Infrastructure Committee during FY23 Soft Story Ordinance An update on implementation will go to the Infrastructure Committee during FY23
Next Steps
• Include the Roadmap in the FY23 budget document for
the May 14 Council budget retreat
• Planning a more comprehensive update to the Strategic Roadmap next year:
• Take place over a few meetings
• Include team building and a review of the vision
• Aligned with the new Councilmember orientation
Questions & Discussion
?
!
➢Council Questions
➢Public Comments
➢Council Comments
and Action
LEGISLATIVE BUSINESS
ITEM #13
LB 22-012
STACK CENTER
CONSTRUCTION
UPDATE
City Council Update | May 3, 2022
STACK
YOUTH AND FAMILY
CENTER
Background
• 2014: County allocated $9.6 Million
• 2015: Governance Group formed
• 2018: Executed Operator agreement with La Familia &
Eden Youth and Family Center
• 2019: Contracted with RossDrulisCusenbery for design
Design
Update
• Construction Documents over 95% complete
• Anticipate development permits this spring
• Soliciting proposals for a construction
management firm this week
Youth
Participatory
Design
Process
• 19 Participants Fall-Winter 2020
• Priorities:
• Active public spaces to connect and celebrate
• Natural spaces that can be sanctuaries
• A diverse range of recreational opportunities
• The message of strength, survival, and resiliency
of South Hayward families
Budget and
Fundraising
• Estimated total cost $47 Million
• This year, the City received three grants = $5.15 M,
applied for a $10 M grant from the California State
Library (will hear in June)
• The City has hired a fundraising firm, Partnership
Resources Group
Budget Item Estimate Funding Source Funding Gap
Design and Construction
Documents $ 4,247,800
Alameda County $ 4,147,800
$ -
City of Hayward CIP $ 100,000
Permits and Construction
Management $ 1,500,000 Alameda County $ 1,500,000 $ -
MJCC Renovation $ 2,000,000
State General Fund Grant $ 1,000,000
$ -
Federal General Fund Grant $ 1,000,000
South Campus Site Work $ 5,294,000
City of Hayward – ARPA Funds $ 2,000,000
$ -
Federal General Fund Grant $ 500,000
Clean California Grant $ 2,647,000
La Vista Developer Contribution $ 147,000
Demolition $ 1,200,000 La Vista Developer Contribution $ 1,200,000 $ - New Building $ 26,800,000
Alameda County $ 4,852,200
$ 16,794,800Kaiser Grant (through County) $ 5,000,000
La Vista Developer Contribution $ 153,000
North Campus Site Work $ 6,000,000 None Identified $ - $ 6,000,000 TOTAL $ 47,041,800 $ 24,247,000 $ 22,794,800
Clean California Grant
• $2.647 Million (50% match)
• Must be spent by June 2024
• Site work around MJCC and
Community Event Plaza
• Three Public Art Elements:
• Mural: Multi-Cultural
Recreational Opportunities
• Mural: Indigenous Food Heritages
from around the World
• Sculpture: Strength of Diverse
Families Supporting One Another
Project
Phasing
• Must meet grant deadline of June 2024
• Create momentum for fundraising
• Sufficient funding for south campus work
• Phasing adds costs because there are two bids
Proposed Phase I
Scheduled to bid October 2022
Provider Status Plan during Construction
La Familia* New Will move in after Phase II construction Eden Youth and Family
Center* Existing Staff will work with them to find a temporary location to operate during Phase II construction
Silva Clinic - Tiburcio Vasquez
Health Center Existing Will remain in place during construction and move once the new building is complete
Kidango Existing Will move to MJCC after Phase I construction Alameda County Office of
Education Existing Staff will work with them to find a temporary location to operate during Phase I and Phase II construction
Hayward Library Educational
Services
Currently providing
services – will gain full
time space
Will move in after Phase II construction – services like the Bookmobile will continue during construction
HARD Existing Will remain in MJCC gymnasium
Hayward Arts Council New Will curate rotating gallery and provide programming after Phase II construction
Operators* and Providers
Requesting
that Council:
• Accept the Clean California grant of $2.647 Million
• Authorize the City Manager to execute a contract
amendment with RDC for phasing, not to exceed
$377,800
Questions &
Discussion
?
!
➢ Council Questions
➢ Public Comments
➢ Council Comments and Action