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HEARING - Community Development Services, Planning and Building Department, recommending the Board adopt and authorize the Chair to sign Resolution 172-2017, thereby adopting the 2017 Traffic Impact Mitigation Fee Schedule Update, including the updates for cost adjustments in the Traffic Impact Mitigation Fee Nexus Study. (Est. Time: 15 Min.)
FUNDING: Funding for the Traffic Impact Mitigation Fee Schedule Update is included in the adopted Fiscal Year 2017/18 budget and is provided by the Traffic Impact Mitigation Fee Program and Road Fund.
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DEPARTMENT RECOMMENDATION
Community Development Services (CDS), Planning and Building Department, Long Range Planning Unit, recommending the Board adopt and authorize the Chair to sign Resolution 172-2017, thereby adopting the 2017 TIM Fee Schedule Update, including the updates for cost adjustments in the TIM Fee Nexus Study.
DISCUSSION/BACKGROUND
A TIM Fee is a fee levied by a local government or public agency to ensure that new development projects pay for all or their portion of the costs of providing public infrastructure or services to the new development. Since 1984, the County has adopted and updated various TIM Fee Programs to ensure that new development on the County’s West Slope pays the costs of constructing and improving County and State roads necessary to serve new development. The TIM Fee is paid at the time of issuance of a building permit, e.g., for a single family home or non-residential buildings. TIM Fees are calculated pursuant to Government Code 66000 et. seq. (the Mitigation Fee Act) and the County’s General Plan policy. Generally, fees are based on the type of land use, quantity, location, and impact on roads and highways.
TIM Fee funded projects are Capital Improvement Program (CIP) projects that are needed to accommodate new development projected over the next 20 years, which includes roadway widenings, interchange improvements, etc. Since these new projects are needed to accommodate new development, there is a nexus, pursuant to the Mitigation Fee Act, to charge new development a fee to pay for these new projects.
The 2016 Major Update to the TIM Fee Program was adopted by Resolution 191-2016. The Resolution states, in part, “said fees shall be adjusted annually by an increase or decrease in the project costs by updating improvement cost estimates using actual construction costs of ongoing and completed projects, the most current cost estimates for those projects that are far enough along in the project development cycle to have project cost estimates, and for all other projects, the Engineering News-Record Building Cost Index.” Additionally, County Ordinance 5045 states, in part, “Fees shall be adjusted annually by an increase or decrease by either actual project costs or by Engineering News-Record Building Cost Index, as appropriate. TIM Fees shall be set and updated by a resolution as adopted by the Board of Supervisors, and administered via a TIM Fee Administrative Manual.”
The 2016 Major Update to the TIM Fee Program resulted in decreased TIM Fees for almost all zones and land use types. The project costs were estimated in September 2015. Since then, project costs have changed due to changes in scope, actual construction costs, and inflation. This will result in a change in TIM Fees for all zones.
The CDS Department of Transportation staff has provided updated cost estimates for 7 projects; El Dorado County Transit Authority staff has provided revised cost estimates for 2 projects. In addition, CDS Administration and Finance Division has updated the reimbursement agreement balances for 3 completed projects (see Attachment A - Board Memo).
Attachment C shows the TIM Fee Nexus Report for the 2017 Update. Project cost adjustments, reimbursement agreement balances, and inflation adjustments are shown in Tables 6 through 9. The revised TIM Fees for all zones and land use types are shown in Table 19. Section 5 of this Report displays the comparison of the current 2016 TIM Fees and the proposed 2017 TIM Fees. Depending on the zone and land use type, TIM Fees have increased by 0% - 11%. The average increase in TIM Fees is 5.7%.
If adopted, the revised TIM Fees will go into effect 60 days after adoption of Resolution 172-2017.
This 2017 Update only includes adjustments to project costs. All other assumptions, methodologies, and technical calculations are identical to the 2016 Major CIP and TIM Fee Program Update. This Update does not include changes to the number, location, or type of CIP projects in the TIM Fee Program. It does not include any changes to the magnitude or location of growth, and it does not include any updates to analysis methodologies or the TIM Fee zone boundaries.
Long Range Planning is also currently working on the 2018 Technical Update to the TIM Fee Program. The 2018 Technical Update will include updates to land use assumptions outside El Dorado County, updates due to the latest version of the Highway Capacity Manual, slight changes in zone boundaries, as well as any further changes in project costs. Staff expects to present the 2018 Technical Update to the Board in spring/summer 2018.
OTHER DEPARTMENT/AGENCY INVOLVEMENT
The following Departments/Agencies are involved:
Community Development Services -
Planning and Building Department, Long Range Planning Unit
Department of Transportation
Administration and Finance
Other County Departments and Organizations
Chief Administrative Office
County Counsel
El Dorado County Transit Authority
CAO RECOMMENDATION
It is recommended that the Board approve this item.
FINANCIAL IMPACT
There is no change to Net County Cost associated with this agenda item.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) Clerk of the Board to obtain the Chair’s signature on the one (1) original copy of Resolution 172-2017.
2) Clerk of the Board to forward one (1) copy of the signed Resolution to CDS Planning and Building Department, attention of Natalie Porter.
STRATEGIC PLAN COMPONENT
The CIP Program is a vital part of the Infrastructure component of the County Strategic Plan. Adequate infrastructure is necessary for the Economic Development component and a requirement of the County General Plan, and safe roads are a crucial factor in the Plan's Public Safety component.
CONTACT
Roger Trout, Director
Community Development Services, Planning and Building Department
Natalie K. Porter, Traffic Engineer
Community Development Services, Planning and Building Department, Long Range Planning Unit