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CC - Discussion and Direction Regarding Vehicle Miles Traveled (VMT) Impact Fee Exemptions for Inclusion in the Travel Demand Forecast Model (TDFM) Project Nexus Study and Economic Analysis.
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Meeting Date: September 14, 2020
Contact Person/Dept: Ashley Hefner/CDD
Phone Number: (310) 253-5744
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [X] Attachments: [X]
Commission Action Required: Yes [] No [X] Date: N/A
Public Notification: (E-Mail) Meetings and Agendas - City Council (09/10/2020), Notify Me - Travel Forecast Demand Model (09/08/2020)
Department Approval: Sol Blumenfeld, Community Development Director (08/24/2020)
Charles Herbertson, Public Works Director (08/25/2020)
Rolando Cruz, Transportation Director (08/25/2020)
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RECOMMENDATION
Staff recommends the City Council discuss and provide direction regarding vehicle miles traveled (VMT) impact fee exemptions for inclusion in the Travel Demand Forecast Model (TDFM) project Nexus Study and Economic Analysis.
BACKGROUND
On July 13, 2020, the City Council adopted a resolution adopting the Culver City Transportation Study Criteria and Guidelines (TSCG) as part of the Travel Demand Forecast Model (TDFM) project. The TSCG establishes new vehicle miles traveled (VMT) screening thresholds, VMT impact thresholds, and mitigation options to comply with Senate Bill 743 and the California Environmental Quality Act. Once approved, the VMT impact fee program will be added to the TSCG.
One of the next steps discussed at the July 13th meeting was City Council consideration of a new VMT impact fee in September 2020. After the meeting, the consultant asked staff if the City intended to offer fee exemptions, a common practice in fee programs. Offering exemptions is a policy decision for local agencies based on the types of development which are being encouraged.
Staff determined it is important for the City Council to consider exemptions now, even though it pushes the approval timeline by a couple of months. The timing is important because exemptions are included in the fee calculations for the nexus study and economic analysis, so the consultants need the information before starting those studies. This was not addressed at the July 13th meeting as the consultant understood this would be a staff decision. However, after consulting with the City Attorney’s Office, it has been determined that such fee exemptions should be authorized by the City Council.
DISCUSSION
While exemptions are not required, many agencies’ fee programs include them to remove a financial barrier for projects like affordable housing, which the City wishes to encourage. Below are the VMT impact fee exemptions recommendations for City Council consideration. These are typical activities and uses agencies often exempt in fee programs.
1. General building improvements - Improvements that do not expand capacity or the building footprint and do not create new trips, such as tenant improvements, remodels, demolitions, and any other structural improvements that fit this description
2. Uses recommended for exemption:
a. Affordable Housing - The City seeks to encourage the production of affordable housing. Associated VMT is typically lower than market rate housing.
b. Child Care - This use is primarily local serving. While it is auto-oriented, trips are typically shorter with localized congestion. The Zoning Code was recently amended to make it easier to have childcare uses in atypical zones.
c. Religious Institutions - This use typically creates congestion during off-peak hours.
d. Public Facilities - The City would not charge itself a fee and County, State, and Federal facilities are not under the City’s jurisdiction.
3. Uses not recommended for exemption:
a. K-12 Schools (public and private) - Public schools are not under the City’s jurisdiction. Private schools generate peak hour traffic and are not always local serving.
b. Educational Institutions - This use is considered a business operation.
FISCAL ANALYSIS
Approving the VMT impact fee exemptions would result in a reduction in the fees collected for the mobility fund that would pay into the City’s VMT-reducing projects. It is unknown at this time as to what extent the overall amount may be reduced, as that analysis will take place in the nexus study and economic analysis. Still, the amount would be an estimate based on anticipated development. The actual reduction would depend on the number and type of projects processed going forward.
ATTACHMENTS
1. 2020 Adopted Transportation Study Criteria and Guidelines
MOTION
That the City Council:
Discuss and provide direction regarding vehicle miles traveled (VMT) impact fee exemptions for inclusion in the Travel Demand Forecast Model (TDFM) project Nexus Study and Economic Analysis.