HomeMy WebLinkAbout1999-11-02 - AGENDA REPORTS - TRANSIT IMPACT FEE UPDATE (2)CITY OF SANTA CLARITA
INTEROFFICE MEMORANDUM
TO: Mayor Darcy and Councilmembers
FROM: George A. Caravalho, City Manager
DATE: November 2, 1999
SUBJECT: TRANSIT IMPACT FEE UPDATE
RECOMMENDED ACTION
City Council review and comment on the proposed Transit Impact Fee revision.
BACKGROUND
The Transit Division is in the process of updating the Interim Transit Impact Fee, which was
adopted by the City Council in 1991. The existing fee applies only to residential development
within City boundaries and charges $200 per single-family or multiple -family dwelling unit.
1. Methodology
The proposed Transit Impact Fee would apply to residential, commercial, and industrial
development in both the City of Santa Clarita and the surrounding County of Los Angeles
unincorporated area. Similar to the Bridge and Thoroughfare District Fees, Transit Impact Fees
for the different land use categories are linked to each land use's average trip generation rate.
The trip generation and anticipated new development information on which the fee is based was
derived from the Santa Clarita Valley Consolidated Traffic Model (Interim Year).
Like the Bridge and Thoroughfare District Fees, the Transit Impact Fee estimates the transit
capital costs associated with providing transit services to new development for the next ten years,
and then divides that cost by the number of factored development units anticipated over that
same period. The estimated transit capital costs are comprised of items identified in
Santa Clarita Transit's long-range planning document, the Transportation Development Plan,
including expansion bus purchases, a share of the Transit Maintenance Facility, bus benches, bus
shelters, park and ride facilities, and other auxiliary transit capital.
Preliminary calculations indicate that the Transit Impact Fee for a single-family dwelling unit
would be approximately $1,400. Condominiums, townhouses, and mobile homes would be
charged approximately $1,120 per unit and apartment projects would be charged $980 per unit.
The fee rate for commercial projects would be $700 per thousand square feet of building area
while industrial projects would pay $112 per thousand square feet of building area.
As with the Bridge and Thoroughfare Fees, developers may elect to construct District
improvements for credit toward their Transit Impact Fee obligation.
TRANSIT IMPACT FEE UPDATE
November 2, 1999 — Page 2
2. District Boundaries
The County of Los Angeles contracts with the City of Santa Clarita to provide transit service to
unincorporated areas of the Santa Clarita Valley, including Castaic, Val Verde, and Stevenson
Ranch. The County reimburses the City for transit operating costs related to the County area
transit service, and has historically shared in the City's bus -related capital costs. However, the
County has not adopted a Transit Impact Fee, and therefore has had no formal means of
assessing the capital costs of providing transit service to the projects that actually generate the
need for that service.
With a City/County consolidated traffic model now in place, the City and County have the ability
to more accurately predict the traffic- and transit -related improvements that will be required to
accommodate new development throughout the Santa Clarita Valley. As the City updates its
Interim Transit Impact Fee to reflect new information from the consolidated traffic model, an
opportunity exists for the County of Los Angeles to adopt an identical fee, creating a
Santa Clarita Valley Transit Impact Fee District.
3. Next Steps
Following receipt of Council direction, staff will begin working with County staff to pursue
adoption of the fee valleywide. As part of this process, City and County staff will pursue public
input and meet with representatives of the development community.
ALTERNATIVE ACTION
Other action as determined by City Council.
FISCAL IMPACT
If the proposed fee is adopted, revenues to the City transit program will be increased
substantially. With the current $200 per residential unit fee in place, the City collected $242,900
of Transit Impact Fees in Fiscal Year 1998/99.
The new fee structure would increase the residential fee while creating new fees for commercial
and industrial projects, which currently are not charged Transit Impact Fees. It is impossible to
predict the exact level of development that will occur in Fiscal Year 1999/2000. However, for
the purposes of comparison, if we assume that the same level of development that occurred in
Fiscal Year 1998/99 occurs this year, the City would collect $1,358,459 with the new fee
structure in place. Any fees collected by the Transit Impact Fee Assessment District will be
spent on capital improvements associated with new development within District boundaries.
ATTACHMENTS
Executive Summary of Draft Transit Impact Fee Report
GAC:NK:ss
\transit\planning\[ifstses.doc
DRAFT REPORT ON THE
SANTA CLARITA VALLEY
TRANSIT IMPACT FEE DISTRICT
Executive Summary
The City of Santa Clarita is in the process of revising the Transit Impact Fee structure. The current fee,
which was adopted as an interim measure in 1991, is $200 per single- or multiple -family residential unit,
and is charged to all residential projects within City limits. When the fee was adopted in 1991, it was
recommended that, upon the availability of more sophisticated traffic modeling data, the fee be revised
to more accurately reflect the growth and consequent transportation needs of the Santa Clarita Valley.
Using information now available from the Santa Clarita Valley Consolidated Traffic Model, Bridge and
Thoroughfare (B&T) District Fees were adopted. B&T fees charge new development for the cost of
road improvements necessitated by that new development. Inherent in the traffic model is the
assumption that even if all the roads in the City and County General Plans are built, fifteen percent of all
trips will still need to be diverted to alternative modes (such as transit, biking, walking, and
telecommuting) just to achieve passing levels of service on the roadway network. In order to
accommodate future growth, a combined package of roadway and transit capital improvements is
needed.
The Transit Impact Fee District Report follows the methodology of the recently completed Valencia
B&T District Study. First, the rate, location, and type of development predicted to occur in the Santa
Clarita Valley over the next ten years was examined. Based upon these forecasts, a list of transit capital
improvements needed in order to serve the new development was compiled. The transit capital
improvements include bus purchases, bus stop amenities, park and ride lots, new transit centers,
improvements to existing transit centers, and a share of the proposed Transit Maintenance Facility.
Next, these costs were divided amongst the various land uses projected by the traffic model to be
constructed in the Santa Clarita Valley over the next ten years, based upon the land use's trip generation
rate. For example, preliminary calculations indicate that a single-family home, which generates ten trips
per day, would pay a higher Transit Impact Fee ($1,400) than a condominium or townhome, which
generates eight trips per day ($1,120), or an apartment, which generates seven trips per day ($980).
Similarly, commercial projects, which generate 5 peak -hour trips per thousand square feet, would be
charged $700 per thousand square feet of building area, while industrial projects, which generate 0.8
peak -hour trips per thousand square feet would be charged $112 per thousand square feet of building
area.
It should be noted that, as with the B&T District Fees, developers would have the option of constructing
District improvements for credit against their total Transit Impact Fee obligation. Furthermore, fees
collected by the District may only be spent on District improvements that benefit new development.
The development projections contained in the traffic model are based on assumptions about growth in
the entire Santa Clarita Valley, including both City of Santa Clarita and unincorporated County of Los
Angeles jurisdictions. Furthermore, the City of Santa Clarita is the transit service provider valleywide
(with reimbursement from the County for service provided to County areas). Both jurisdictions strive to
continue providing a high level of transit service to complement the roadway network in newly
developing areas. For these reasons, it is recommended that a uniform Transit Impact Fee structure
should be adopted in both jurisdictions.