13 Update on MCAG’s Regional Transportation Impact Fee (RTIF) Study and Possible Direction from Council.

Note from TheGardeningSnail: This page may have been produced by running a PDF Image File through a program that converts Image to Text. My apologies for any Textual Gremlins that may have crept in. I may also have broken up larger paragraphs. I may have also highlighted a few items of interest.

Meeting Date: November 15, 2016

STAFF REPORT

AGENDA ITEM: Update on MCAG’s Regional Transportation Impact Fee (RTIF) Study and Possible Direction from Council.

MEETING DATE: November 15, 2016

PREPARED BY: Odi Ortiz, Interim City Manager/Finance Director

REVIEWED BY: Odi Ortiz, Interim City Manager/Finance Director

RECOMMENDATION:

Staff recommends that the City Council review progress and revisions to the Regional Transportation Impact Fee (RTIF) Study and provide direction to staff.

BACKGROUND:

On November 9, 2016, MCAG conducted a meeting at the City of Merced to provide an update on the Regional Traffic Impact Fee (RTIF) study. This study has been in progress for a while and MCAG’s intent was to give cities an opportunity to re-evaluate the importance of the study and confirm there’s still a strong interest from all cities to continue and complete this study. MCAG retained Chris Kinzel from TJKM to perform such study (a draft copy is attached for your review).

The majority of the program guidelines and rules would remain the same, but the scope of city projects has been revised (see pages 2, 7 & 8). All projects are considered attainable and total project costs have decreased and, therefore, new RTIF fees are expected to be lower (see proposed fee schedule on page 3). Previous RITF study was performed by MCAG back in 2008.

Possible requirements to continue the RTIF program: MCAG expects and may require all Cities to participate in the program otherwise the program will be eliminated. Other options discussed and considered include, city must participate in program and collect the RTIF in order to get any revenue benefits/funding.

MCAG plans to bring the RTIF item back to the TRB for direction on RTIF study in December and would then present an update to County Board in January or early 2017 for direction or action. MCAG also anticipates Cities at the local level to have a chance to vote and approve the study and any program changes sometime in January or early 2017.

MCAG anticipates a series of educational workshops at the jurisdiction level to educate new council members and management staff on the overall MCAG programs and procedures on this type of funding.

Several other Counties have a similar program in place to generate additional development fees for street related growth impacts. These development related fees are reasonable as it accounts for future growth impacts to City’s/County’s regional transportation systems/infrastructure. These potential revenues will enhance the current levels of street funds being collected by Cities and Counties. Majority of city management staff in the County areas strongly feel this program should continue in addition to

the new approved Measure V to increase the street revenue funding sources and to fairly charge new development for related impacts.

DISCUSSION:

Review draft Regional Transportation Impact Fee (RTIF) study, project list, proposed fees, participation requirements and provide any direction to staff.

FISCAL IMPACT:

None at this time.

ATTACHMENTS:

1. Exhibit A: Draft RTIF study

2. Exhibit B: Current RTIF fee schedule

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