TO: HONORABLE MAYOR FROM: John Ristow
AND CITY COUNCIL
SUBJECT: FY22 TRAFFIC IMPACT DATE: November 21, 2022
FEE REPORT
Approved Date
12/1/22
RECOMMENDATION
Accept this annual and five-year report prepared in accordance with the Mitigation Fee Act (Government Code section 66000 et seq.) on the status of the City’s four traffic impact fee programs: North San José, Evergreen-East Hills, US-101/Oakland/Mabury, and Interstate 280/Winchester Boulevard.
OUTCOME
Accepting this memorandum with the attached Traffic Impact Fee (TIF) reports of required information allows the City of San José to continue to use the various TIF funds to fully or partially fund transportation improvements in accordance with the four development policies: 1) North San José Area Development Policy, 2) Evergreen-East-Hills Development Policy, 3) US- 101/Oakland/Mabury Transportation Development Policy, and 4) Interstate 280/Winchester Boulevard Transportation Development Policy.
BACKGROUND
The Mitigation Fee Act requires public agencies to account for and make specific findings regarding mitigation fees collected by an agency as a condition of development approval. The law also requires that the local or lead agency review and make available to the public an annual report and a five-year report that accounts for the mitigation fees held by the agency. As the Mitigation Fee Act authorizes local agencies to combine the annual and five-year report, the information in this report satisfies both requirements. The FY22 Annual Report covers the period from July 1, 2021 to June 30, 2022.
The City has four separate traffic impact fees that are charged to new developments under the following policies and the companion ordinances that establish the TIF: 1) North San José Area Development Policy, 2) Evergreen-East Hills Development Policy, 3) US101/Oakland/Mabury COUNCIL AGENDA: 12-13-22
FILE: 22-1855
ITEM: 2.30
HONORABLE MAYOR AND CITY COUNCIL
November 21, 2022
Subject: FY22 Traffic Impact Fee Report
Transportation Development Policy, and 4) Interstate 280/Winchester Boulevard Transportation Development Policy. All of these policies rely to varying degrees on funding from different sources, including new development, and federal, state, regional, and local sources. The following is a summary of each TIF:
North San José TIF: In 2005, the City adopted the North San José Area Development Policy (NSJ ADP), which established a traffic impact fee to fund a mitigation program that supports the development of the North San José area by alleviating automobile congestion due to new development and enhancing multi-modal transportation options.
The NSJ ADP and TIF (see San José Municipal Code Chapter 14.29) authorize the City to charge the TIF to individual developments in order to partially fund traffic improvements that are necessary to mitigate traffic impacts of development in the NSJ ADP area. The mitigation measures funded by the NSJ TIF are specified in the June 2005 North San José Traffic Impact Fee Plan and as revised in May 2009 (see SJMC sec. 14.29.020.F) include intersection improvements, new streets, extension and/or widening of existing streets as well as regional improvements to County of Santa Clara expressways and State highway facilities. The plan also includes multimodal improvements in order to implement the City’s North San José Deficiency Plan and comply with the Santa Clara Valley Transportation Authority (VTA) Congestion Management Program as required by Government Code section 65089.3. Included in the Deficiency Plan are enhanced bus services, shuttle services, light rail improvements, new grid streets, and continuous bicycle connections on major streets and trails.
On May 17, 2022, the City Council approved amendments to the Envision San José 2040 General Plan (General Plan) and the NSJ ADP (2022 Amendment), that effectively retired the 2005 plan with respect to future development, while still requiring past entitled projects to fulfill their requirements, including mitigation and payment of traffic impact fees, under the policy. As a result of the 2022 Amendment, the North San José Traffic Impact Fee no longer applies to development projects in North San José that receive entitlements and/or land use permits after to the 2022 Amendment effective date.
Evergreen-East Hills TIF: The Evergreen-East Hills Traffic Impact Fee (EEH TIF) provides funding for the transportation improvements necessary to mitigate the traffic impacts of new development under the Evergreen-East Hills Development Policy (EEH DP). The EEH DP allows a limited increase in development within the Evergreen-East Hills area boundaries. The EEH DP promotes long-term vitality of the region by linking together this limited new development with supporting transportation infrastructure and establishes a TIF to fund those improvements. The mitigation measures funded by the TIF are specified in the November 2008 Evergreen-East Hills Traffic Impact Fee Analysis (see SJMC sec. 14.33.020.E). They include improvement of 11 high-priority locations, four long-term locations, and freeway improvements along southbound US-101 between I-280 and Yerba Buena Road.
On December 7, 2021, the City Council approved amendments to the General Plan associated with the General Plan Four-Year Review which included a direction to staff to amend the EEH
HONORABLE MAYOR AND CITY COUNCIL
November 21, 2022
Subject: FY22 Traffic Impact Fee Report
DP so that the EEH TIF would apply to only projects that have received development approvals prior to the date of this anticipated amendment and would no longer apply to future development in Evergreen-East Hills. This amendment is anticipated in 2023.
US-101/Oakland/Mabury TIF: The purpose of the US-101/Oakland/Mabury Traffic Impact Fee is to partially fund transportation improvements necessary to mitigate the traffic impacts from new development under the US-101/Oakland/Mabury Transportation Development Policy.
The improvements supported by the TIF are specified in the July 2007 US-101/Oakland & US101/Mabury Road Interchanges Traffic Impact Fee Analysis (See SJMC sec. 14.30.020.H), which will partially fund: (1) the improvement of the US-101 Oakland Road interchange by upgrading the facility to maximize capacity; and (2) the construction of the new US-101 interchange at Mabury Road, which has been identified in the City’s General Plan as a needed freeway gateway to alleviate congestion at the US-101/Oakland Road interchange. These transportation improvements will provide adequate access to the US-101 freeway for new development and the Berryessa/North San José BART station.
Interstate 280/Winchester Boulevard TIF: The Interstate 280/Winchester Boulevard Traffic Impact Fee partially funds a northbound I-280 off-ramp at Winchester Boulevard, as specified in the September 2016 Interstate 280/Winchester Boulevard Traffic Impact Fee Plan (see SJMC section 14.34.020.B). New development in the Plan area that generates demand for the off-ramp is required to pay the traffic impact fee. Other funding sources include regional funding and fees collected from developments outside of the Plan area that would be required to mitigate their traffic impacts at the interchange. VTA and Caltrans are the lead agencies implementing the project.
As required by law, each of the traffic impact fees is segregated from the General Fund and accounted for in special revenue funds, which earn interest. These funds, including interest, must be held for the purpose of financing the improvements for which the fees are collected (Government Code section 66001).
In addition to the Traffic Impact Fees collected the City of San José expects significant funding from local and state sources to contribute to the identified transportation improvements – for example, Santa Clara County’s 2016 Measure B and California Senate Bill 1. This will enable the City to combine TIF and other funds to significantly advance design and delivery for many transportation projects in the near term. In addition, the City of San José will continue to prioritize the implementation of improvements based on future development and associated opportunities.
ANALYSIS
The Mitigation Fee Act regulates how public agencies may establish, collect, maintain, and spend impact fees imposed on developers for the purpose of defraying costs of public facilities that are necessary to mitigate the impacts of the new development. The Act requires periodic public reporting of the accounts for each fee and requires certain findings be made by the City.
HONORABLE MAYOR AND CITY COUNCIL
November 21, 2022
Subject: FY22 Traffic Impact Fee Report
As authorized by the Mitigation Fee Act, both the annual and five-year reports have been combined in this report.
The annual reporting requirements for each fiscal year are as follows1:
(A) A brief description of the type of fee in the account or fund. (B) The amount of the fee.
(C) The beginning and ending account balance of the account or fund. (D) The amount of the fees collected and the interest earned. (E) An identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees. (F) An identification of an approximate date by which the construction of the public improvements will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement, as identified in paragraph (2) of subdivision (a) of Section 66001, and the public improvement remains incomplete.
(G) A description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid and the rate of interest that the account or fund will receive on the loan. (H) The amount of refunds made pursuant to subdivision (e) of Section 66001 and any allocations pursuant to subdivision (f) of Section 66001.
Additionally, the five-year report
2 requires the inclusion of the following additional findings by the City Council with respect to that portion of the account or fund remaining unexpended (whether committed or uncommitted):
(A) Identify the purpose to which the fee is to be put. (B) Demonstrate a reasonable relationship between the fee and the purpose for which it is charged.
(C) Identify all sources and amounts of funding anticipated to complete financing in incomplete improvements identified in paragraph (2) of subdivision (a). (D) Designate the approximate dates on which the funding referred to in subparagraph (C) is expected to be deposited into the appropriate account or fund.
Attachments A through D address the reporting requirements for each of the four TIF accounts maintained by the City. The separate attachments include information for each TIF account and satisfy the requirements for both the Annual Report and Five-Year Report.
For each TIF account, the City is required to make available to the public the annual report within 180 days after the last day of each fiscal year and is also required to make the
1 California Government Code Section 66006(b)(1).
2 California Government Code Section 66001(d)(1).
HONORABLE MAYOR AND CITY COUNCIL
November 21, 2022
Subject: FY22 Traffic Impact Fee Report
information public no later than 15 days prior to the City Council meeting at which it will be considered3.
CONCLUSION
This memorandum updates the annual and five-year reports in accordance with the Mitigation Fee Act (Government Code section 66000 et seq.) on the status of the City’s four TIF programs:
1) North San José, 2) Evergreen-East Hills, 3) US-101/Oakland/Mabury, and 4) Interstate 280/Winchester Boulevard. The updated reports allow the City of San José to continue to use the various TIF funds to fully or partially fund transportation improvements in accordance with the four development program areas.
EVALUATION AND FOLLOW-UP
This item will be reported annually to the City Council. The next report (FY 23) will be presented to City Council in fall 2023.
CLIMATE SMART SAN JOSÉ
The recommendation in this memorandum has no effect on Climate Smart San José energy, water, or mobility goals. This memorandum is an annual report in accordance with the Mitigation Fee Act (Government Code section 66000 et seq.) on the status of the City’s four TIF programs: 1) North San José, 2) Evergreen-East Hills, 3) US-101/Oakland/Mabury, and 4) Interstate 280/Winchester Boulevard. This memorandum does not address specific policy or projects contained within previously adopted TIF programs.
PUBLIC OUTREACH
This report was made available to the public by November 21, 2022 on the Department of Transportation’s website for the December 13, 2022 Council Meeting, in accordance with the Mitigation Fee Act.
COORDINATION
This report has been coordinated with the City Attorney’s Office, City Manager’s Budget Office, the Department of Public Works, and the Department of Planning, Building and Code Enforcement.
3California Government Code Section 66006(b)(2).
HONORABLE MAYOR AND CITY COUNCIL
November 21, 2022
Subject: FY22 Traffic Impact Fee Report
COMMISSION RECOMMENDATION
No Commission recommendation or input is associated with this action.
FISCAL/POLICY ALIGNMENT
Accepting the report of required information will allow the City of San José to use the various TIF funds to partially fund transportation improvements in the four policy areas where they are collected.
CEQA
Not a Project, File No. PP17-009, Staff Reports, Assessments, Annual Reports, and Informational Memos that involve no approvals of any City action.
/s/
John Ristow
Director of Transportation
For questions, please contact Jessica Zenk, Deputy Director, at (408) 535-3543.
Attachments
ATTACHMENT A
Subject: FY22 Traffic Impact Fee Report
NORTH SAN JOSÉ TRAFFIC IMPACT FEE
November 21, 2022
1. Type and purpose of fee in fund:
The North San José Traffic Impact Fee is assessed on new development within the boundaries of the North San José Area Development Policy (NSJ ADP) pursuant to Chapter 14.29 of the San José Municipal Code. The purpose of the fee is to partially fund transportation improvements that are necessary to mitigate cumulative traffic impacts resulting from new development in the Policy area. The transportation improvements are specified in the NSJ ADP and the June 2005 North San José Traffic Impact Fee Plan (as revised in February 2022) and are listed in Table 4 herein.
2. Relationship between fee and purpose for which it is charged:
The traffic impact fee is assessed on all new development within the boundaries of the NSJ ADP pursuant to Chapter 14.29 of the San José Municipal Code. The relationship between the fee and the purpose for which it is charged is detailed in the 2005 NSJ ADP and the June 2005 North San José Traffic Impact Fee Plan (as revised in February 2022). The fee that is charged to new development in the Policy area partially funds transportation improvements that are necessary to mitigate the cumulative traffic impacts resulting from that new development.
3. Amount of fee:
The fee amounts from the effective date of the traffic impact fee, including periodic increases, are specified in Table 1 below.
ATTACHMENT A
Subject: FY22 Traffic Impact Fee Report
Table 1
Traffic Impact Fees4
Fee Period
(Starting FY,
Ending FY)
Trip Fee
(per PM
Peak Hour
Trip)
Industrial
Fee
(per sq. ft.)
Residential
Fee Single
family
(per unit)
Residential
Fee Multi
family
(per unit)
Large-scale
Commercial
Fee
(per sq. ft.)
Hotel Fee
(per room)
FY05-06,
FY06-07 $11,138 $10.44 $6,994 $5,596 N/A N/A
FY07-08,
FY08-09 $11,885 $11.14 $7,463 $5,971 N/A N/A
FY09-10,
FY10-11 $12,683 $11.89 $7,964 $6,372 $16.65 $3,600 FY11-12,
FY12-13 $13,533 $12.69 $8,498 $6,800 $17.66 $3,819 FY13-14,
FY14-15 $14,441 $13.54 $9,068 $7,256 $18.74 $4,052 FY15-16,
FY16-17 $15,410 $14.44 $9,677 $7,742 $19.88 $4,299 FY17-18,
FY18-19 $16,444 $15.41 $10,326 $8,262 $21.09 $4,560 FY19-20,
FY20-21 $17,547 $16.45 $11,019 $8,816 $22.38 $4,838 FY21-22,
FY22-23 $18,725 $17.55 $11,758 $9,408 $25.18 $5,133
4. Sources of funding:
The sources of funding for all of the improvements are outlined in the 2005 NSJ ADP and the June 2005 North San José Traffic Impact Fee Plan (as revised in February 2022). The cost of transportation improvements necessitated by North San José development totals approximately $1,128 million (in 2022 dollars). A portion of the cost is planned to be funded by the City of San José and other funding sources (federal, state, and regional), with the remainder being funded by
4 The impact fee is increased by 3.3% annually compounded on July 1 of every odd-numbered year (SJMC sec.
14.29.040.B). Additionally, individual development projects may be credited for vehicle trips for existing development on their property in accordance with the requirements of the Policy.
ATTACHMENT A
Subject: FY22 Traffic Impact Fee Report
the NSJ TIF. Those regional funds are likely to include funding from the 2016 Santa Clara County Measure B.
5. Beginning and ending fund balances.
The beginning and ending fund balances are indicated in Table 2 below.
6. Fees collected and interest earned:
Fees collected and interest earned by the fund are indicated in Table 2 below.
Table 2
Account Summary for the NSJ TIF
7. Public improvements on which fees were expended, amount of expenditure, and percentage of cost funded by fees:
Table 3 below lists completed and in-progress public improvements, the amount of traffic fees that have been expended on each project, and the percentage of the total cost of each improvement that was funded with traffic impact fees. Those improvements that do not have traffic fee expenditures were funded by other funding sources.
Inception to
Date
North San José Traffic Impact Fees FY08-FY17 FY18 FY19 FY20 FY21 FY22 TOTAL Beginning Balance -$ 42,460,968$ 43,801,300$ 43,031,319$ 44,475,580$ 49,698,060$ Developer Fees 47,957,325 5,720,264 1,126,947 918,838 5,060,508 (3,366,432) 57,417,450 Miscellaneous Revenue/Xfer In From Other Funds 35,170 35,170 Interest Earnings 1,216,829 655,714 909,277 974,059 700,268 405,030 4,861,177 Expenditures
- Highway 237 Bikeway (298,344) (298,344)
- Montague Expressway (2,681,557) (2,681,557)
- Montague Expressway Phase 2 (148,132) (748) (148,880) - North San José Light Rail Cabinets
- North San José Transit Improvements (36,272) (21,589) (57,862) - Route 101/Trimble/De La Cruz Interchange Improvements (3,016,107) (59,243) (153,776) (105,670) (320,518) (3,655,314) - Route 101/Zanker (1,660,262) (111,954) (2,677,001) (107,700) (140,788) (199,826) (4,897,532) - Route 880/Charcot (487,004) (354,144) (295,980) (399,409) (265,608) (154,277) (1,956,423) - Trail: Guadalupe/Tasman Under-Crossing (59,184) (59,184) Encumbrances - Prior Year 1,562,005 3,115,444 2,889,426 2,677,177 2,519,002 - Route 880/Charcot Engineering Contract (1,562,005) (3,115,444) (2,889,426) (2,677,177) (2,519,002) Encumbrances - Current Year
- North San José Light Rail Cabinets (325,000) (325,000) North San José Ending Balance 42,460,968$ 43,801,300$ 43,031,319$ 44,475,580$ 49,698,060$ 48,233,703$ 48,233,703$ Remaining Budgeted CIP Funds
- Montague Expressway Phase 2 2,851,120 2,851,120
- North San José Light Rail Cabinets 221,000 221,000
- North San José Transit Improvements 342,138 342,138
- Route 101/Trimble/De La Cruz Interchange Improvements 6,049,332 6,049,332 - Route 101/Zanker 12,121,048 12,121,048
Funds Budgeted as part of a Settlement Agreement in CIP - Montague Expressway Phase 2 9,000,000 9,000,000
- Parks, Recreation, and Neighborhood Services (PRNS) Projects 1,500,000 1,500,000 Remaining Unallocated North San José TIF Progam Funds 16,149,063$ 16,149,063$
ATTACHMENT A
Subject: FY22 Traffic Impact Fee Report
Table 3
Project Expenditures Summary
Public Improvement
TIF
Expenditures
(FY08-FY22)
Percentage of
Improvement Cost
funded by TIF
Highway 237 Bikeway $298,344 50%
Guadalupe Trail/Tasman Drive Under-crossing $59,184 10% Montague Expressway* $2,681,557 N/A
Montague Expressway Phase 2* $148,880 N/A
North San José Transit Improvements* $57,862 N/A
Route 101/Zanker* $4,897,532 N/A
Route 880/Charcot** $1,956,423 N/A
Route 101/Trimble/De La Cruz* $3,655,314 N/A
Montague Expressway/Old Oakland Road*** $0 0%
Zanker Road/Tasman Drive*** $0 0%
Capitol Expressway/Capitol Avenue*** $0 0%
- Note, expenditures do not include past encumbrances.
* Project has not been completed; hence, no data is available for “percentage of improvement cost”. ** Project is no longer recognized by the City of San José and has been removed from the improvements list.
Expenditures are not expected beyond this year.
*** Project was completed using other sources of funding than TIF funds.
8. Approximate date by which construction of the public improvements will commence, and approximate date by which the funding for incomplete improvements will be deposited into the appropriate account or fund5:
The date of construction is dependent upon a determination by the local agency that there are sufficient funds from all sources to complete the specified public improvement. Other than the completed projects listed in Table 3 above, sufficient funds have not been collected, either from traffic fees or other sources to complete financing and construction of the North San José Transportation Improvements. Route 101/Trimble/De La Cruz is under construction with an expected completion date of Summer 2025.
All of the public improvements specified in the June 2005 North San José Traffic Impact Fee Plan with the February 2022 revision and listed in Table 4 herein are required to address area- wide traffic impacts resulting from new development within the boundaries of the North San José Area Development Policy. Because the traffic impact fees do not provide full funding of all of the required improvements, other funding sources, such as federal, state, regional, and City funding, are also required. It is not certain when the funds from these other sources will be available and to which specific improvements they will apply. However, the City of San José
5 As such, this section satisfies reporting requirements of the annual report as indicated in California Government Code Section 66006(b)(1)(F) as well as the five-year report as required in Government Code Section 66001(d)(1)(D).
ATTACHMENT A
Subject: FY22 Traffic Impact Fee Report
expects significant funding from the 2016 Santa Clara County Measure B to contribute to regional and active transportation improvements in the North San José ADP.
The public improvements are prioritized to support traffic impacts from new development as they are needed within the Plan area and by when full funding of an improvement becomes available through the various funding programs. The Envision 2040 General Plan and the Policy are intended to provide improvements needed to support new development through Year 2035, so complete funding and the design and construction of improvements are expected to occur no later than five years after the conclusion of the term of the current General Plan and NSJ ADP, to wit: 2040 for past entitled projects.
9. Interfund transfers and loans:
No interfund transfers or loans were made during the fiscal years FY08-FY22 utilizing these funds.
10. Refunds and allocations:
No refunds or allocations pursuant to subdivisions (e) and (f) of Section 66001 were made during the fiscal years FY08-FY22.
11. List of NSJ ADP public improvements:
Table 4 below lists the improvements that will be funded in part by the NSJ TIF with the associated costs of each of the transportation improvement projects pursuant to the 2005 NSJ ADP and the June 2005 North San José Traffic Impact Fee Plan (as revised in February 2022).
ATTACHMENT A
Subject: FY22 Traffic Impact Fee Report
Table 4
North San José Traffic Impact Fee Improvements and Cost Summary
Table 1 - North San José Transportation Improvements and Cost Summary Location (Type) Cost (2005 $) Cost (2022 $)
North San José Major Roadway Improvements
Montague Expressway Widening* $18,000,000 $35,200,000
Zanker Road to Skyport Drive Connection* $64,000,000 $241,800,000 Charcot Avenue Extension* $32,000,000 Project Removed
Zanker Road Widening $49,000,000 $87,939,102
US 101/Trimble Road Interchange* $27,000,000 Under Const.
Montague Expressway and Trimble Road $30,000,000 $53,840,267 Montague Expressway and McCarthy Boulevard $68,000,000 $122,037,937 Mabury Road Interchange* $43,000,000 $226,610,000
North San José Grid Street System $55,000,000 $98,707,155 Subtotal North San José Major Roadway Improvements $386,000,000 $866,134,461 North San José Intersection Improvements
North First Street and SR237 (South) $7,000,000 $12,562,729 Zanker Road and Montague Expressway See Note a See Note a River Oaks Parkway and Montague Expressway See Note b See Note b Trimble Road and Montague Expressway See Note c See Note c McCarthy Boulevard & Montague Expressway See Note d See Note d Old Oakland Road and Montague Expressway $500,000 Complete North First Street and Trimble Road $1,000,000 $1,794,676 Zanker Road and Trimble Road See Note a See Note a
Zanker Road and Brokaw Road See Note a See Note a
Zanker Road and Tasman Drive $2,000,000 Complete
North First Street and Charcot Avenue $2,000,000 $3,589,351 North First Street and Metro Drive $250,000 $448,669
Zanker Road and Charcot Avenue $2,000,000 $3,589,351
Junction Avenue and Charcot Avenue $1,000,000 $1,794,676 Bering Drive and Brokaw Road $1,000,000 $1,794,676
Trade Zone Boulevard and Montague Expressway $2,175,000 Complete Subtotal North San José Intersection Improvements $18,925,000 $25,574,127 Other Intersections Outside of North San José
Lundy Avenue and Berryessa Road $500,000 $897,338
Oakland Road and US 101 (North/South)* $20,250,000 $68,100,643 Capitol Expressway and Capitol Avenue $250,000 Complete San Tomas Expressway and Stevens Creek Boulevard $1,300,000 $2,333,078 San Tomas Expressway and Moorpark Avenue $500,000 $897,338 Thirteenth Street and Hedding Street $700,000 $1,256,273 King Road and McKee Road $2,025,000 $3,634,218
Lundy Avenue and Trade Zone Boulevard $500,000 $897,338 Capitol Avenue and Cropley Avenue $500,000 $897,338
Capitol Avenue and Berryessa Road $250,000 $448,669
Couplet Conversions/Traffic Calming $25,000,000 $44,866,889 Subtotal Intersections Outside of North San José $51,775,000 $124,229,120 Offsetting Action from CMA Immediate Implementation Action List Bicycle, Pedestrian, TDM and Transit Actions (Bus, LRT Improvements $62,300,000 $111,808,287 TOTAL COST $519,000,000 $1,127,745,995
Other Contributions (City of San José, Federal, State, and Regiona ($59,000,000) ($100,960,858) Potential Santa Clara County 2016 Measure B Contributions** -$ ($351,307,000) NET TOTAL to be funded by the NSJ TIF $460,000,000 $675,478,138 NOTES
a - Included as part of the Zanker Road Widening cost
b - Included as part of the Montague Expressway Widening cost c - Included as part of the Montague Expressway and Trimble Road Improvements d - Included as part of the Montague Expressway and McCarthy Boulevard Improvements * - 2021 project costs reflect engineering progress and more accurate estimates of improvements ** -Figure shown represents “up to” or maximum anticipated Measure B contribution based on October 2021 application.
Source: North San José Area Development Policy (2005), Table 6, and North San José Traffic Impact Fee Plan, February 2005 (Revised April 2009), Table 3
ATTACHMENT B
Subject: FY22 Traffic Impact Fee Report
EVERGREEN-EAST HILLS TRAFFIC IMPACT FEE
November 21, 2022
1. Type and purpose of fee in fund:
The Evergreen-East Hills Traffic Impact Fee (EEH TIF) is a fee charged to new development within the boundaries of the Evergreen-East Hills Development Policy area pursuant to Chapter
14.33 of the San José Municipal Code. The purpose of the fee is to fully fund transportation improvements specified in the Evergreen-East Hills Development Policy 6 (EEHDP). The
improvements include changes to eleven (11) high-priority locations, four (4) long-term locations, and freeway improvements along southbound US-101 between I-280 and Yerba Buena Road. The improvements are listed in Table 5 herein.
2. Relationship between fee and purpose for which it is charged:
The traffic impact fee is charged to all new development within the boundaries of the EEHDP pursuant to Chapter 14.33 of the San José Municipal Code. The Evergreen-East Hills Development Policy details the relationship between the fee and its assessed purpose (2008). The fee that is charged to new development in the Policy area funds transportation improvements that are necessary to address traffic impacts resulting from new development under the Policy.
3. Amount of fee:
The fee amounts from the effective date of the traffic impact fee, including periodic increases, are specified in Table 1 below.
6 Evergreen-East Hills Development Policy (Adopted December 16, 2008)
ATTACHMENT B
Subject: FY22 Traffic Impact Fee Report
Table 1
Traffic Impact Fees7
Calendar Year Residential Fee (per unit) Commercial/Office Fee (per sq. ft.)
2009 $13,214 $11.49
2010 $13,214 $11.49
2011 $13,431 $11.68
2012 $13,804 $12.00
2013 $14,037 $12.21
2014 $14,262 $12.40
2015 $14,786 $12.86
2016 $15,148 $13.17
2017 $15,605 $13.57
2018 $16,033 $13.94
2019 $16,357 $14.22
2020 $16,782 $14.59
2021 $17,575 $15.28 2022 $18,505 $16.09
4. Sources of funding:
Other than state and regional funds used for the US-101 corridor improvements, EEH TIF is the primary source of funding for all the improvements outlined below in Table 5 in accordance with the EEH DP.
5. Beginning and ending fund balances:
The beginning and ending fund balances are indicated in Table 2 below.
6. Fees collected and interest earned:
Fees collected and interest earned by the fund are indicated in Table 2 below.
7 The impact fee is increased annually on January 1 per the Engineering News-Record Construction Cost Index for the San Francisco Bay Area, published by the McGraw Hill (SJMC sec. 14.33.040.B). Additionally, i ndividual development projects may be credited for vehicle trips for existing development on their property in accordance with the requirements of the Policy.
ATTACHMENT B
Subject: FY22 Traffic Impact Fee Report
Table 2
Account Summary for the EEH TIF
7. Public Improvements on which fees were expended, amount of expenditure, and percentage of cost funded by fees:
Table 3 below lists TIF expenditures by project in FY08-FY22.
Table 3
Project Expenditures Summary
Public Improvement TIF Expenditures
(FY08-FY22)
Percentage of
Improvement Cost funded
by TIF
Highway 680/Jackson Traffic Signal* $97,380 N/A
Copper to Fiber and Adaptive Timing* $109,023 N/A
San Felipe/Yerba Buena Intersection*
Improvements $120,407 N/A
* Project has not been completed; hence, no data is available for “percentage of improvement cost”.
8. Approximate date by which construction of the public improvements will commence, and approximate date by which the funding for incomplete improvements will be deposited into the appropriate account or fund8:
The date of construction depends on a determination by the local agency that confirms existing sufficient funds from all sources to complete the specified public improvement. EEH TIFs shall be collected until the anticipated EEH DP amendment is approved. Projects entitled prior to the anticipated amendment approval date will fulfill requirements towards the improvements
8 As such, this section satisfies reporting requirements of the annual report as indicated in California Government Code Section 66006(b)(1)(F) as well as the five-year report as required in Government Code Section 66001(d)(1)(D).
ATTACHMENT B
Subject: FY22 Traffic Impact Fee Report
specified in the Evergreen-East Hills Traffic Impact Fee Analysis. While the EEH DP is in effect, in the event that public funds are advanced to accelerate the construction of the improvements specified in the EEH DP, the EEH TIFs shall be collected until all advanced City funding is fully reimbursed to the City (SJMC sec. 14.33.060).
The amount of development and its timing will be determined by the economy, markets, and the decisions made by private sector property owners and developers. The timing of funding for incomplete transportation improvements for deposits into the appropriate fund depends on development activity and the availability of funding from other sources, such as the City of San José, regional authorities, and grants.
To date, sufficient funding has not been collected to fully fund the improvements. Construction of some of the improvements will commence in FY18 or within five years thereafter. Table 4 shows known and expected project start dates. The Envision 2040 General Plan and the Policy are intended to provide improvements needed to support new development through Year 2035.
As such, the full funding deposited into the appropriate accounts and the completion of improvements are expected no later than five years after the conclusion of the term of the current General Plan and EEH DP, to wit: 2040.
ATTACHMENT B
Subject: FY22 Traffic Impact Fee Report
Table 4
Approximate Construction Start and End Dates
Construction
Year Start
Construction
Year End
Local Roadway/Intersection Improvements
Capitol Expressway and Quimby Road* TBD TBD
Capitol Expressway and Aborn Road* TBD TBD
Capitol Expressway and Silver Creek Road* TBD TBD
White Road and Aborn Road TBD TBD
San Felipe Road and Yerba Buena Road (South) 2022 2022
Nieman Boulevard and Aborn Road** Complete
Nieman Boulevard and Yerba Buena Road TBD TBD
Signal Improvements/Traffic Circles/Ped Improvements 1
Ruby Avenue and Norwood Avenue 2024 2025
I-680 Ramps (N) and Jackson Avenue 2024 2024
Ruby Avenue and Tully Road-Murillo Avenue TBD TBD
Story Road and Clayton Road 2023 2023
Marten Avenue and Mt. Rushmore Drive** Complete
Marten Avenue and Flint Avenue** Complete
Quimby Road and Scottsdale Drive TBD TBD
Nieman Boulevard and Daniel Maloney Drive 2024 2024
Story Road and Lancelot Lane TBD TBD
Ocala Avenue and Hillmont Avenue** Complete
Ocala Avenue and Adrian Way Complete
Bike Plan 2025 Implementation 2022 2024
Copper-to-fiber and Adaptive Signal Timing Upgrades 2022 2023 US 101, between I-280 and Yerba Buena Road Complete
Source: Evergreen East Hills Development Policy, Traffic Impact Fee Analysis, 2020 2 Evergreen new development traffic is equal to 1.6% of freeway capacity. Therefore, cost responsibility is 1.6% of the total cost of corridor improvements.
NOTES
* Denotes Congestion Management Program (CMP) Intersection. ** Denotes Projects Completed via alternative approved improvements. 1 The 2020 Evergreen East Hills Development Policy Study recommends alternative improvements where the 2006 SEIR recommended new signals.
ATTACHMENT B
Subject: FY22 Traffic Impact Fee Report
9. Interfund transfers and loans:
No interfund transfers or loans were made during the fiscal years FY10-FY22 utilizing these funds.
10. Refunds and allocations:
No refunds or allocations pursuant to subdivisions (e) and (f) of Section 66001 were made during the fiscal years FY10-FY22.
11. List of EEH DP public improvements:
Table 5 (on next page) lists the improvements that will be funded in part by the EEH TIF with the associated costs of each of the transportation improvement projects.
ATTACHMENT B
Subject: FY22 Traffic Impact Fee Report
Table 5
Evergreen-East Hills Traffic Impact Fee Improvements and Cost Summary
Cost
(2020 Dollars)1
Cost
(2022 Dollars)1
Near-term Priority Projects
Capitol Expressway and Aborn Road* 250,000.00$ 275,682.77$ Capitol Expressway and Silver Creek Road* In-lieu Improvement I-680 Ramps (N) and Jackson Avenue 1,600,000.00$ 1,764,369.72$ Nieman Boulevard and Daniel Maloney Drive 360,000.00$ 396,983.19$ Ocala Avenue and Hillmont Avenue** Complete Complete
Ruby Avenue and Norwood Avenue 600,000.00$ 661,638.65$ Ruby Avenue and Tully Road-Murillo Avenue Complete Complete San Felipe Road and Yerba Buena Road (South) 500,000.00$ 551,365.54$ Story Road and Clayton Road 300,000.00$ 330,819.32$ White Road and Aborn Road In-lieu Improvement
White Road and Quimby Road 1,000,000.00$ 1,102,731.08$ Subtotal Near-term Priority Projects $4,610,000 $5,083,590 Long-Term Priority Projects
Capitol Expressway and Quimby Road* Complete Complete
Nieman Boulevard and Yerba Buena Road Long Term Project Quimby Road and Scottsdale Drive TBD TBD
Story Road and Lancelot Lane TBD TBD
Bike Plan 2025 Implementation 500,000.00$ 551,365.54$ Copper-to-fiber Upgrades and Adaptive Signal Timing 250,000.00$ 275,682.77$ US 101, between I-280 and Yerba Buena Road
US 101 Corridor Improvements ($81,700,000 Total Cost2)
Subtotal US-101 between I-280 and Yerba Buena Rd Complete Complete TOTALS 5,360,000.00$ $5,910,639
Source: Evergreen East Hills Development Policy, Traffic Impact Fee Analysis, November 2008 2 Evergreen new development traffic is equal to 1.6% of freeway capacity. Therefore, cost responsibility is 1.6% of the total cost of corridor improvements.
NOTES
* Denotes Congestion Management Program (CMP) Intersection. ** Denotes Projects Completed via alternative approved improvements. 1 Represents Updated Improvement Scope from the Evergreen East Hills Development Policy Study in 2020.
ATTACHMENT C
Subject: FY22 Traffic Impact Fee Report
US-101/OAKLAND/MABURYTRAFFIC IMPACT FEE
November 21, 2022
1. Type and purpose of fee in fund:
The US-101/Oakland/Mabury Traffic Impact Fee (TIF) is charged to new developments in order to provide funding for improvements outlined in the US-101/Oakland/Mabury Transportation Development Policy9 (TDP) pursuant to Chapter 14.30 of the San José Municipal Code. These improvements are intended to mitigate traffic congestion associated with anticipated new development in the area, and to provide adequate access to the US-101 freeway for new development and the future Berryessa BART station. The TIF was established to partially fund (1) the improvement of the US-101/Oakland Road interchange by upgrading the facility to maximize capacity; and (2) the construction of the new US-101 interchange at Mabury Road, which has been identified in the City’s General Plan as a needed freeway access point to alleviate congestion at the US-101/Oakland Road interchange and intersections in the proximity. The improvements are specified in the US-101/Oakland/Mabury TDP and are listed in Table 4 herein.
2. Relationship between fee and purpose for which it is charged:
The traffic impact fee is charged to new developments in the proximity of the US- 101/Oakland/Mabury TDP interchanges pursuant to Chapter 14.30 of the San José Municipal Code. The TIF is charged to new development near the US-101/Oakland Road interchange and the planned US-101/Mabury-Berryessa Road interchange, where the project-specific traffic analysis indicates that the new development generates interchange vehicle trips. In an effort to promote new industrial land use or intensification of existing industrial land uses, the TDP exempts trips generated by future industrial growth from the TIF program. The mechanism for determining trip credits for new industrial developments that are exempt from the TIF program is detailed in the following memo dated May 19, 2017. The relationship between the fee and the purpose for which it is charged is detailed in the US-101/Oakland/Mabury TDP (2007, as revised).
9 Adopted December 18, 2007, and as revised from time to time.
ATTACHMENT C
Subject: FY22 Traffic Impact Free Report
3. Amount of fee:
The fee amounts from the effective date of the traffic impact fee, including periodic increases, are specified in Table 1 below.
Table 1
Traffic Impact Fees10,11
Calendar Year Trip Fee (per PM Peak Hour Trip)3
2008 $30,000
2009 $30,000
2010 $31,201
2011 $31,713
2012 $32,595
2013 $33,143
2014 $33,675
2015 $34,913
2016 $35,767
2017 $36,847
2018 $37,857
2019 $38,623
2020 $39,625
2021 $41,499 2022 $43,696
4. Sources of funding:
The sources of funding for all the improvements are outlined in the 2007 US- 101/Oakland/Mabury TDP (as amended). The estimated cost of improvements at the US-101 interchanges at Oakland Road and Mabury-Berryessa Road totals $330 million. A portion of the cost is planned to be funded by the City of San José and regional sources totaling $174 million, with the remaining $156 million being funded by the US-101/Oakland/Mabury TIF (all amounts given in 2022 dollars).
The Traffic Impact Fee Program requires new development that generates demands for the Policy Interchange Intersections to make a fair share of financial contributions as determined by
10 The impact fee is increased annually on January 1 per the Engineering News-Record Construction Cost Index for the San Francisco Bay Area, published by the McGraw Hill (SJMC sec. 14.30.040.C). 11 The TDP also allocates 115 PM peak hour vehicular trips generated by future industrial development to be exempt from the Traffic Impact Fee Program.
ATTACHMENT C
Subject: FY22 Traffic Impact Free Report
the Nexus Study12 prepared as a part of this TIF program. The City administers the TIFs it collects and conducts appropriate studies, design, environmental clearance, and construction of the improvements as funds become available from payment of the impact fee by new development and other funding sources identified above.
5. Beginning and ending fund balances:
The beginning and ending fund balances are indicated in Table 2 below.
6. Fees collected and interest earned:
Fees collected and interest earned by the fund are indicated in Table 2 below.
Table 2
Account Summary for the US-101/Oakland/Mabury TIF
7. Public Improvements on which fees were expended, amount of expenditure, and percentage of cost funded by fees:
Table 3 below lists completed and in-progress public improvements, the amount of traffic fees that have been expended on each project, and the percentage of the total cost of each improvement that was funded with traffic impact fees. Those improvements that do not have traffic fee expenditures were funded by other funding sources.
Table 3
Project Expenditures Summary
Public Improvement
TIF
Expenditures
(FY08-FY22)
Percentage of
Improvement Cost
funded by TIF
Route 101/Mabury Road* $1,477,322 N/A
- Note, all expenditures do not include encumbered but not spent funds. * Project has not been completed; hence, no data is available for “percentage of improvement cost”. ** Project was completed using other sources of funding than TIF funds.
12 US-101/Oakland Road & US-101/Mabury Road Interchanges Traffic Impact Fee Analysis, July 2007, by the Department of Transportation, City of San José.
ATTACHMENT C
Subject: FY22 Traffic Impact Free Report
8. Approximate date by which construction of the public improvements will commence, and approximate date by which the funding for incomplete improvements will be deposited into the appropriate account or fund13:
The date of construction depends on a determination by the local agency that confirms existing sufficient funds from all sources to complete the specified public improvement. To date, sufficient funding has not been collected to fully fund the interchange improvements.
In August 2012, the City Council approved an engineering consultant agreement to begin development of the initial project documentation required by Caltrans to construct a new freeway interchange at the US-101 undercrossing of Mabury Road consistent with the Envision 2040 General Plan. Extensive studies followed and in 2018, Caltrans accepted findings that the US 101/Mabury Interchange would not adversely impact safety or operations along US 101; however, Caltrans stipulated that certain operational improvements – namely, auxiliary lanes – would have to be included and studied during the Project Approval and Environmental Document (PA&ED) phase. In addition, Caltrans and the City agreed to also study local street network and other interchange improvements.
In tandem, the City began looking at the whole US-101 corridor from Mabury Rd to Oakland Rd and considering an interchange at Berryessa Rd as a potential alternative to Mabury Rd. An interchange at US-101 and Berryessa Rd would include modifications to the US 101/Oakland Rd interchange and improve interchange spacing along US-101. The City coordinated with Caltrans to include this alternative as part of the study and received concurrence from Caltrans in July 2019. The cost estimate for this project is in development. An initial estimated project cost shows an increase in the project budget due to additional local improvements and improvements to Mabury Rd required for the Berryessa Rd alternative.
In December 2019, the City issued a Request for Proposal (RFP) to evaluate the US 101/Mabury-Berryessa-Oakland corridor and allow for new perspectives on the project. The RFP solicited engineering consultant services to prepare scoping, environmental studies, project reports, and potentially a final design of the project. The City awarded the project to HNTB in October 2020. The project is currently in the PA&ED stage. Subsequent phases (e.g., plan, specification and estimate (PS&E), and property acquisition and construction) would follow as funding becomes available.
The Envision 2040 General Plan and the Policy are intended to provide improvements needed to support new development through Year 2035, so complete funding and the design and construction of improvements is expected to occur no later than five years after the conclusion of the term of the current General Plan and US-101/Oakland/Mabury TDP, to wit: 2040. In the event that public funds are advanced to accelerate the construction of the improvements specified in the July 2007 US-101/Oakland/Mabury TDP, the TIF shall be collected until all advanced City funding is fully reimbursed to the City (SJMC sec. 14.30.051).
13 As such, this section satisfies reporting requirements of the annual report as indicated in California Government Code Section 66006(b)(1)(F) as well as the five-year report as required in Government Code Section 66001(d)(1)(D).
ATTACHMENT C
Subject: FY22 Traffic Impact Free Report
9. Interfund transfers and loans:
No interfund transfers or loans were made during the fiscal years FY10-FY22 utilizing these funds.
Refunds and allocations:
No refunds or allocations pursuant to subdivisions (e) and (f) of Section 66001 were made during the fiscal years FY10-FY22.
10. List of US-101/Oakland/Mabury TDP public improvements:
Table 4 below lists the improvements that will be funded in part by the US-101/Oakland/Mabury TIF with the associated costs of each of the transportation improvement projects:
Table 4
US-101/Oakland/Mabury Traffic Impact Fee Improvements and Cost Summary14
14 Net total to be funded by TIF decreased with increased potential Santa Clara County 2016 Measure B Contributions
ATTACHMENT C
Subject: FY22 Traffic Impact Free Report
TO: MICHAEL LIW FROM: JOHN RISTOW
Deputy Director of Public Works Deputy Director of
Transportation
SUBJECT: INDUSTRIAL TRIP CREDITS
FOR US-101/OAKLAND/MABURY
TRANSPORTATION
DEVELOPMENT POLICY DATE: May 19, 2017
Approved Date
COUNCIL DISTRICT: 3 and 4
This memo provides a mechanism for determining trip credits for new industrial developments that are exempt from the Traffic Impact Fee (TIF) program in the US 101/Oakland/Mabury Transportation Development Policy (TDP).
The TDP, adopted in 2007 and amended in 2009 and 2015, includes a TIF program that requires new development to make fair share contribution toward the construction cost of the interchange improvements as identified in the TDP. The fee, as determined by the Nexus Study in the TDP, is based on the number of new trips traversing through at least one of the five identified interchange intersections during the PM peak hour. In an effort to promote new industrial land use or intensification of existing industrial land uses in the area, the TDP allocates 115 PM peak hour trips at the interchange intersections to be trips generated by future industrial growth that are exempt from the TIF program. Qualified industrial development would receive trip credits from the 115-trip pool until the pool is exhausted.
ELIGIBILITY
The following industrial land uses are eligible for industrial trip credits:
• Manufacturing and assembly (light, medium and heavy)
• Laboratory, processing
• Research and development
• Warehouse/distribution facility
• Wholesale sale establishment
• Wineries, breweries (including incidental off-sale of alcoholic beverages) Trade & vocational school
COUNCIL AGENDA:
3 /
2/2021
ITEM:
ATTACHMENT C
Subject: FY22 Traffic Impact Free Report
For the purpose of trip credit calculations, development sites that are composed of one or more discontiguous parcels shall be considered as a single development.
TRIP CREDITS
A traffic study shall be conducted to estimate the amount of trip credits a qualified industrial development would receive. Trip credits are estimated using a four-step process: (1) trip generation, (2) trip distribution, (3) trip assignment, (4) trip credits.
Trip Generation
In determining project trip generation, the magnitude of traffic entering and exiting the development is estimated for the PM peak hour. Trip generation rates for the proposed development vary based on the type of intensification. As shown in Table 1, intensification of an existing industrial development could happen by adding new building area, increasing the amount of off-street parking, or both. If the development proposes to increase both the building area and the number of off-street parking, intensification by building area or intensification by parking spaces, whichever is higher, shall be selected. Trip generation for the proposed development is compared with that of the pre-existing legally established development on the subject site to determine the overall net trip generation.
Table 1: Trip Generation Rates for Industrial Developments Development Type PM Peak Hour Trip Rates1
New development Measured in trips per 1,000 square feet gross floor area Existing development
intensified by building area
only
Measured in trips per 1,000 square feet gross floor area Existing development
intensified by off-street
parking only
Measured in trips per employee (assuming one off-street parking space equates to one employee)
Existing development
intensified by both building
area and off-street parking
Measured in trips per 1,000 square feet gross floor area, or trips per employee, whichever generates the higher percentage of intensification
1. Trip generation rates shall be obtained from the latest edition of the Institute of Transportation Engineers (ITE) Trip Generation Handbook.
Trip Distribution and Trip Assignment
An estimate is made of the directions which the project trips would travel, based on traffic patterns on the surrounding roadway system and on the locations of complementary land uses.
The net project trips are then assigned to local transportation network to determine the number of new trips traversing the interchange intersections during the PM peak hour.
Trip Credits
Trip credits are calculated based on both the estimated number of new peak- hour trips at the interchange intersections (i.e. trip assignment) and the level of intensification. Table 2 outlines the methodology for allocating trips to existing developments based on the percentage of
ATTACHMENT C
Subject: FY22 Traffic Impact Free Report
intensification. If the percentage of intensification is greater than 90% of the existing site, no trip credits would be given. As the percentage of intensification decreases, the amount of trip credit increases. This framework provides incentives to existing industrial developments and facilitates reinvestment in more traditional industrial activities.
Table 2: Trip Credit Incentive
Intensification Trip Credit Incentive
>90% 0% (except for warehouse/distribution or
manufacturing/assembly facility of up to 30,000 square feet, to which 1 trip credit shall be provided)
>80% and <=90% 20% (maximum of 10 trips)
>70% and <=80% 40% (maximum of 10 trips)
>60% and <=70% 60% (maximum of 10 trips)
>50% and <=60% 80% (maximum of 10 trips)
>0% and <=50% 100% (maximum of 10 trips)
To ensure the trip credit pool is allocated to multiple developments, a maximum of 10 trips shall be allocated per new development or intensification project on a first-come, first-serve basis, until the pool of 115 industrial trip credits is exhausted. In addition, a minimum of one (1) trip shall be allocated for a new or intensification of a stand-alone warehouse/distribution or manufacturing/assembly facility of up to 30,000 square feet in size. The one-trip minimum credit will provide the incentive to small industrial developments regardless of their level of intensification. For example, if an existing warehouse of less than 30,000 square feet in size proposes to intensify by more than 90%, it would still receive one (1) trip credit.
An economic subsidy valued at $100,000 or greater pursuant to California Government Code Section 53083 shall be brought forward for review by the San José City Council. /s/
JOHN RISTOW Deputy Director
of Transportation
For questions please contact Ramses Madou, Transportation Planner Manager, at 408-975-3283.
ATTACHMENT D
Subject: FY22 Traffic Impact Fee Report
INTERSTATE 280/WINCHESTER BOULEVARD TRAFFIC IMPACT FEE
November 21, 2022
1. Type and purpose of fee in fund:
The Interstate 280/Winchester Boulevard Traffic Impact Fee (TIF) is charged to new developments within the Interstate 280/Winchester Boulevard Transportation Development Policy (TDP) area boundaries pursuant to Chapter 14.34 of the San José Municipal Code and any development project that is projected to generate vehicle trips utilizing the planned improvement (SJMC 14.34.020.D). The TIF will provide partial funding for all design and construction related activities for the new northbound off-ramp from I-280 to Winchester Boulevard, as outlined in the Interstate 280/Winchester Boulevard TDP
15, to alleviate traffic congestion associated with
anticipated intensification of development in the vicinity of the interchange, and to provide more direct access from I-280 northbound to West San José Urban Village areas and surrounding areas.
2. Relationship between fee and purpose for which it is charged:
The traffic impact fee is charged to all new development within the boundaries of the Interstate 280/Winchester Boulevard TDP area pursuant to Chapter 14.34 of the San José Municipal Code.
The September 2016 Interstate 280/Winchester Boulevard TDP Nexus Study 16 details the
relationship between the fee and the purpose for which it is changed. The fee that is charged to new developments in the Policy area partially funds transportation improvements that are necessary to mitigate the traffic impacts resulting from that development.
3. Amount of fee:
The fee amount from the effective date of the traffic impact fee is specified in Table 1 below.
Fees will be collected prior to issuance of building permits for any project.
Table 1
Traffic Impact Fee17
Year Trip Fee (per PM Peak Hour Trip)
2016* $25,641
2017 $25,641
2018 $26,344
2019 $38,623
15 Adopted in September 2016.
16 “Interstate 280/Winchester Boulevard Transportation Development Policy Nexus Study”, September 2016, by the Department of Transportation, City of San José.
17 The impact fee is increased annually on January 1 by the change in the Engineering News-Record Construction Cost Index for the San Francisco Bay Area, published by the McGraw Hill (SJMC sec. 14.34.040.B). Additionally, individual development projects may be credited for vehicle trips for existing development on their property in accordance with the requirements of the Policy.
ATTACHMENT D
Subject: FY22 Traffic Impact Free Report
2020 $27,575
2021 $28,878 2022 $30,407 *Fee was adopted in late 2016 therefore 2016 and 2017 fee amounts were the same.
4. Sources of funding:
The sources of funding for the I-280 northbound off-ramp at Winchester Boulevard are outlined in the Interchange 280/Winchester Boulevard TDP. The cost of the off-ramp is estimated to be $241 million (in 2022 dollars). New development in the TDP Plan Area would contribute $51 million (in 2022 dollars) via the Traffic Impact Fee program. Measure B contributions will contribute up to $163 million (in 2022 dollars). The remaining $27 million (in 2022 dollars) is anticipated to be funded from other sources including state or regional funds and some future development outside of the Plan Area.
The funding sources are shown in Table 2 below.
Table 2
Sources of Funding (2022 Dollars)
Funding Source Amount
Traffic Impact Fee $50.99 million
Measure B Contributions1 $162.53 million
Other Funding Sources2 $15.18 million
Total $228.70 million
Notes:
1. Figure shown represents “up to” or maximum anticipated Measure B contribution based on October 2021 application.
2. Other funding sources include regional funding and other fees collected from development outside of the Plan Area that would be required to mitigate its traffic impacts at the interchange.
5. Beginning and ending fund balances:
The beginning and ending fund balances are indicated in Table 3 below.
6. Fees collected and interest earned:
Fees collected and interest earned by the fund are indicated in Table 3 below.
ATTACHMENT D
Subject: FY22 Traffic Impact Free Report
Table 3
Account Summary for the I-280 Winchester TDP TIF5
7. Public Improvements on which fees were expended, amount of expenditure, and percentage of cost funded by fees:
Table 3 above shows $2,230,664 total expenditures in FY22. All funds used furthered project development efforts.
8. Approximate date by which construction of the public improvements will commence, and approximate date by which the funding for incomplete improvements will be deposited into the appropriate account or fund18:
The date of construction depends on a determination by the local agency that confirms existing sufficient funds from all sources to complete the specified public improvement. To date, sufficient funding has not been collected to fully fund the project.
Currently, the VTA has entered into cooperative agreements with Caltrans and other local jurisdictions including San José to complete the appropriate studies for the planning, preliminary engineering/environmental, design, right-of-way, and construction phases for the I-280/Winchester Boulevard Improvements Project.
Implementation of this improvement is anticipated conclude by 2028. While development projects pay traffic impacts fees toward this improvement, the VTA is working with Caltrans to provide the necessary environmental clearance and project design. The Valley Transportation Plan 2040 (VTP 2040) provides a funding strategy that relies on federal, state, regional and local funding sources which will be supplemented by the fees adopted in conjunction with this policy to deliver a complete project. In the event that public funds are advanced to accelerate the construction of the improvements specified in the September 2016 Interstate 280/Winchester Boulevard TDP, the TIF shall be collected until all advanced City funding is fully reimbursed to the City (SJMC sec. 14.34.060).
9. Interfund transfers and loans:
No interfund transfers or loans were made during FY22.
18 As such, this section satisfies reporting requirements of the annual report as indicated in California Government Code Section 66006(b)(1)(F) as well as the five-year report as required in Government Code Section 66001(d)(1)(D).
ATTACHMENT D
Subject: FY22 Traffic Impact Free Report
10. Refunds and allocations:
No refunds or allocations pursuant to subdivisions (e) and (f) of Section 66001 were made during fiscal year FY22.
11. List of Interstate 280/Winchester Boulevard TDP public improvement:
Table 4 below lists the cost summary of the Interstate 280/Winchester Boulevard TDP improvement:
Table 4
Improve me nt Cost (2017 $)
280/Winchester* 145,000,000.00$
TOTAL COST 145,000,000.00$
Other Contributions (State, Regional, and/or Federal)** N/A NET TOTAL to be funded by the 280/Winchester TIF*** N/A Source: Interstate 280/Winchester Boulevard Transportation Development Policy, September 2016 Notes:
*Total cost based on analysis conducted in 2022 environmental study. **Includes costs from 2021 Measure B Highway Interchange Application, which not available in 2017. *** Net total was not calculated in 2017.
Cost (2022 $)
228,700,000.00$
228,700,000.00$
($177,706,776)
50,993,224.47$