Revenues collected will be deposited and used to fund new development's proportional share of the costs of transportation improvements identified in the DPR and Nexus Study.
A. INTRODUCTION
One of the objectives of the County General Plan is to connect new development directly to the provision of community facilities necessary to serve that development. In other words, development cannot be allowed to occur unless a mechanism is in place to provide the funding for the infrastructure necessary to serve that development. The TVTD Area of Benefit is a means of raising revenue to construct road improvements to serve new developments. Requiring that all new development pay a road improvement fee will help to ensure that they participate in the cost of improving the road system.
Since 2008, the Tri Valley Transportation Council (TVTC) has worked closely amongst all the partner agencies to determine the future circulation needs and the expanded list of regional projects necessary to provide for future growth. The program update was not implemented back in 2008 due to the downturn in the economy; however, coordination between the TVTC and the Building Industry Association has resulted in a phasing plan for the fee update that the TVTC has determined is the correct balance between infrastructure funding needs and economic growth.
B. BACKGROUND AND PURPOSE OF THE TVTC AREA OF BENEFIT FEES
In 1991, the County signed a Joint Powers Agreement (“JPA”) between Contra Costa County, Alameda County, the Town of Danville, the City of San Ramon, the City of Pleasanton, the City of Dublin, and the City of Livermore that established the Tri-Valley Transportation Council (“TVTC”). The purpose of the TVTC JPA was the joint preparation of the Tri-Valley Transportation Plan/Action Plan (“Action Plan”) for the Routes of Regional Significance and cost sharing of the recommended regional transportation improvements. The TVTC adopted the Action Plan in April 1995 and updated it in 2000. The Action Plan contained 11 specific regional transportation improvements to be given high priority for funding and implementation.
In 1997, the TVTC recommended to its member jurisdictions the adoption of a uniform development fee known as the Tri-Valley Transportation Development Fee (“TVTD Fee”). In August 1998 the Contra Costa County Board of Supervisors (“Board”) accepted a Joint Exercise of Powers Agreement (“JEPA”) pertaining to the collection of the TVTD Fee, accepted the Development Program Report (“DPR”), and passed Ordinance 98-35 to provide a mechanism for collection of the TVTD Fee. The fees charged were considerably lower than what would have been allowed by the Nexus Analysis.
In April 2003, the TVTC approved the fee reduction for multi-family residential and the increase for office and industrial land use categories to help eliminate project funding shortfalls. In September 2003 the Board passed Ordinance 2003-21 revising the TVTD Fee schedule. In 2008 there were efforts made to update the TVTC fee. The proposed increase lacked consensus between the JEPA parties, as there were concerns about the economic stability in the area due to an economic downturn. At this time, the CEQA process was initiated, and a Notice of Exemption (NOE) was provided on 8/19/2008. In September, 2008, the TVTC voted to adopt a fee update which was adopted per Ordinance 2008-27 by the Board of Supervisors to become effective July, 2009. However, this updated fee program became void as one of the member agencies did not enact the fee program update within their jurisdiction, requesting that a Strategic Expenditure Plan be prepared prior to the program revisions. According to the Joint Exercise of Powers Agreement, the action to update the fee by member agencies was null and void without unanimous decision. Ordinance 2009-29 repealed the ordinance passed in September 2008 (re-adopting the previous fee schedule per ordinance 2003-21), and adopt an ordinance amendment which incorporated several administrative revisions (affordable housing allowance, funding of program administration, etc.), as well as a correction to the “other” fee category.
In 2011, the TVTC executed a JEPA which changed the TVTC from a council of collaborative agencies to a separate stand-alone agency that can hold funds and hire services. The JEPA also amended the TVTC voting structure. Previously a unanimous vote of the 7 members of the Governing Council was required; whereas, currently the new JEPA provides a voting structure that allows a 2/3 majority vote to adopt or amend a regional transportation plan, adopt a budget of TVTC expenditures, or amend the Bylaws.
C. INFORMATION ON THE PROGRAM UPDATE
In 2008, the TVTC recognized the growing need for regional transportation improvements and accordingly conducted a study of future needs in the Tri Valley, entitled Tri-Valley Transportation Council Nexus Study (Nexus Study). This Nexus Study identified 11 additional projects necessary to accommodate future travel demands and provided the study to determine the proportion of the project cost attributable to future development. As mentioned above measures were taken to update the fee program to reflect the additional projects and an increased fee rate; however the partner agencies did not arrive at a unanimous decision so the updated fee structure was not implemented. A Strategic Expenditure Plan was prepared and accepted with unanimous agreement on the future project list with the intention that the fee structure would be updated as soon as economic recovery was underway.
On January 26, 2015, the TVTC passed resolution 2015-01 to identify the full list of projects and the proposed mitigation fee rates. The update to the fee rate is proposed to be phased in with an initial increase on July 1, 2015, that implements 25% of the maximum allowable fee calculated in the Nexus Study and a final step increase to 35% of the maximum allowable fee on July 1, 2016. On each July 1 thereafter, the fees will automatically increase or decrease based on the percentage change according to the Engineering News-Record Construction Cost Index, San Francisco Bay Area, for the 12 month period ending April 30th of the year in which the adjustment will take effect. This increase is supported by the Building Industry Association (letter attached).
A Development Program Report was prepared to serve as a basis for collection of the TVTD Fee in Contra Costa County. The TVTD Fee provides funds to construct regional road improvements to serve new residential, office, commercial/retail, and industrial developments. Requiring that all new development pay a regional road improvement fee will ensure developments participation in the cost of improving the regional road system. The increase in fees will be implemented uniformly across the tri-valley at a rate that is a fraction of the allowable fee per the Nexus Study.
D. RESOLUTION NO. 2015/155
Pursuant to Government Code section 66484, subdivision (a)(3), a resolution must be adopted by the Board that incorporates a description of the boundaries of the area of benefit, the costs, whether actual or estimated, of the transportation improvements, and the method of fee apportionment established at the hearing.
The DPR is attached as Exhibit 1 to Resolution No. 2015/155. Exhibit A to the DPR depicts the boundaries of the TVTC’s Tri-Valley Development Area. Exhibits C and D to the DPR depict and describe the boundaries of the TVTD Area of Benefit. The Nexus Study, attached as Exhibit F to the DPR, includes the list of projects, their estimated costs, method of apportionment, and nexus findings. Approval of Resolution No. 2015/155, attached hereto, is recommended because it serves to comply with the above legal requirements by adopting and incorporating the facts and findings of the DPR and Nexus Study.
E. ORDINANCE NO. 2015-11
To adjust the TVTD Area of Benefit fees, the Board of Supervisors needs to adopt an ordinance that includes the nexus findings required by Government Code section 66001. The ordinance also must include the specific information require by Government Code section 66484. Ordinance No. 2015-11, attached hereto, includes the information and findings required by those statutes.
Adoption of Ordinance No. 2015-11 will repeal Ordinance No. 2009-29 and impose new transportation mitigation fees on new development within the TVTD Area of Benefit. The proposed ordinance includes provisions for exemptions, fee reductions and credits, and fee waivers similar to those in Ordinance No. 2009-29. Revenue from the fees will fund the transportation projects necessary to serve transportation demands within the TVTD Area of Benefit through 2030, as identified in the DPR and Nexus Study.
F. ADMINISTRATIVE FEE
In addition to the fees listed above, staff recommends that the Board of Supervisors authorize the assessment of an administrative fee equal to two percent (2%) of the applicable TVTD Area of Benefit fee charged to new development. This additional fee will be used to cover staff time for fee collection, accounting, technical support, and administrative tasks.
G. CEQA FINDINGS
The activity is covered by the general rule that CEQA applies to projects that have the potential to cause a significant effect on the environment. It can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, because the implementation and imposition of fees has no associated environmental impacts. Therefore, this activity is not subject to CEQA, pursuant to CEQA Guidelines section 15061(b)(3). The future implementation of any projects funded with these fees, however, may have associated project-specific impacts, and such impacts will be addressed individually under CEQA as each project is planned.
Funding for transportation improvements would be delayed. Further, the County would not be acting consistent with other member agencies of the TVTC, which have adopted or will soon adopt their own transportation mitigation fee updates.
CLOSED the public hearing;
DETERMINED that the County did not receive written protests from owners of more than one half of the area of the property within the boundaries of the TVTD Area of Benefit;
ADOPTED Ordinance No. 2015-11 to adjust the fees within the TVTD Area of Benefit, and to re-establish the boundaries of the TVTD Area of Benefit;
ADOPTED Resolution No. 2015/155 to adopt the Development Program Report and Nexus Study attached thereto;
DETERMINED that the adoption of Ordinance No. 2015-11 and Resolution No. 2015/155 are exempt from environmental review under the California Environmental Quality Act (CEQA);
DIRECTED the Conservation and Development Director to file a CEQA Notice of Exemption with the County Clerk-Recorder; and AUTHORIZED the Public Works Director to arrange for payment of a $25 processing fee to Conservation and Development, and a $50 filing fee to the Clerk-Recorder;
DIRECTED the Clerk of the Board of Supervisors to cause certified copies of Ordinance No 2015-11 and Resolution No. 2015 /155 to be recorded with the Clerk-Recorder;
REDESIGNATED 8288 as the fund into which all TVTD Area of Benefit fee revenue will be deposited, and DIRECT that all TVTD Area of Benefit fees shall be deposited into that fund;
AUTHORIZED the Public Works Director to collect an additional administrative fee equal to two percent (2%) of the applicable TVTD Area of Benefit fee; and
DIRECTED the Conservation and Development Director to monitor future amendments to the currently adopted General Plan and their impact on traffic within the TVTD Area of Benefit and to report those amendments to the Public Works Director as necessary to facilitate future updates to the TVTD Area of Benefit fees.