Title
HEARING - Department of Transportation recommending the Board adopt and authorize the Chair to sign Resolution 104-2026 for the 2026 Traffic Impact Fee Schedule Annual Update.
FUNDING: Traffic Impact Fee Program
Body
DISCUSSION/BACKGROUND
On December 3, 2024 (Legistar file 24-1686), the Board adopted the Major Update to the Traffic Impact Fee (TIF) Program via Resolution 213-2024, as required by the General Plan and in compliance with state law. The Major Update was subsequently revised by Resolution 073-2025 on June 10, 2025 (Legistar file 25-0517). General Plan Implementation Measure TC-B, County Ordinance No. 5144 (Ordinance 5144) and Ordinance No. 5173 (Ordinance 5173) state that the fee program shall be updated annually for changes in project costs.
Ordinance 5173 states, “The TIF amounts shall be adjusted for inflation no later than the end of the third fiscal quarter of each year in accordance with the percentage change published by the Engineering News Record [ENR] Construction Cost Index, or if such index ceased to be published, by an equivalent index chosen by the Director, with appropriate adjustments for regional and local construction costs as necessary [...] The Director shall notify the Board at a public meeting of the proposed fee adjustment. No fee adjustment shall be effective until approved by the Board. Any fee adjustment approved by the Board shall be effective on July 1st of the year in which the action is taken, or at such other time as is provided by law.”
The purpose of today’s hearing is to adopt the 2026 Annual Update to the TIF Program, which adjusts project costs. The 2026 Annual Update to the CIP updates the cost estimates from the 2024 TIF Program Major Update either based on actual changes in projects’ cost estimates, or as adjusted for inflation using the ENR Construction Cost Index. The TIF for all zones and land use types are shown in Exhibit A of the proposed Resolution (see Attachment C), and cost adjustments as made by Transportation staff have been incorporated in Exhibit C of the Resolution. The comparison of the current 2025 TIF and the proposed 2026 TIF are shown in Attachment E. Changes to the TIF depend upon the zone and land use type. Zone A and B fees increased by approximately 5% for residential, and Zone C increased approximately 3% for residential. Non-residential fees increased between 3% and 6% depending on the location and use type.
This update includes changes to Capital Improvement Program (CIP) Projects as directed at the CIP Workshop held March 10, 2026. However, it does not include any changes to the magnitude or location of growth, nor any updates to analysis methodologies or the TIF Zone boundaries. The following project is being added to the TIF Program based upon the proposed 2026 CIP Book:
The Silva Valley Parkway at Appian Way Intersection Improvements project (36105087) will construct intersection improvements, including but not limited to: minor roadway widening, re-striping of lanes, installation of ADA curb ramps and crosswalks, and installation of a traffic signal. Estimated project costs are $2,625,000 and will be funded by TIF - Zone C funds.
If adopted, the annual update to the TIF Program will go into effect 60 days after adoption of the resolution.
ALTERNATIVES
Ordinance 5144 and Ordinance 5173 require the Board to adjust the fees annually to reflect changes in construction costs using the ENR Construction Cost Index.
PRIOR BOARD ACTION
March 10, 2026, Legistar file 25-2038, first Board workshop for the 2026 Capital Improvement Program (CIP).
December 3, 2024, Legistar file 24-1686, the Board of Supervisors (Board) adopted the Major Update to the Traffic Impact Fee (TIF) Program.
June 10, 2025, Legistar file 25-0517, the Board approved the subsequently revised Major Update to the Traffic Impact Fee (TIF) Program.
February 14, 2023, Legistar file 22-1653, Ordinance 5173 was adopted.
OTHER DEPARTMENT/AGENCY INVOLVEMENT
Planning and Building Department
CAO, Community Development Finance & Administration
Chief Administrative Office
County Counsel
CAO RECOMMENDATION
Approve as recommended.
FINANCIAL IMPACT
There is no change to Net County Cost associated with this agenda item. Funding for the TIF Program Update is included in the adopted Fiscal Year 2025/26 budget and is provided by the TIF Program. The TIF Program Update establishes County priorities for available funding and ensures that new development pays their relative costs of necessary infrastructure.
CLERK OF THE BOARD FOLLOW UP ACTIONS
The Clerk of the Board to provide a copy of the signed Resolution to the Department of Transportation, attention Lindsay Tallman.
STRATEGIC PLAN COMPONENT
Public Infrastructure Priority: Enhance communication about funding and resources for transportation-related capital improvement plans (CIP)
Action Items: Provide a project cost update, project prioritization and funding needs to the Board of Supervisors; New project determination/evaluation
CONTACT
Rafael Martinez, Director
Department of Transportation