Item 3.1 - Reso Approving a 2% Increase in RTCIP Traffic Mitigation Fee for FY 2019-20DATE:
TO:
FROM:
CONTACT:
SUBJECT:
Summary:
City of Poway
COUNCIL AGENDA REPORT
April 16, 2019
Honorable Mayor and Members of the City Counc� . "
Robert Manis, Director of Development Services f,f/\
Tom Frank, City Engineer rf!
(858)668-4603 or tfrank@poway.org
APPROVED □
APPROVED AS AMENDED □
(SEE MINUTES)
DENIED □
REMOVED □
CONTINUED ____ _
RESOLUTION NO.
A Resolution Approving a 2% Increase in the Regional Transportation
Congestion Improvement Program (RTCIP) Traffic Mitigation Fee for Fiscal
Year (FY) 2019-20, as required by the TransNet Ordinance
On April 1, 2008, the City Council adopted the Regional Transportation Congestion Improvement
Program (RTCIP) Traffic Mitigation Fee pursuant to the TransNet Ordinance. The Ordinance
calls for the fee to be adjusted annually on July 1 of each year to reflect increases in construction
costs. SANDAG has informed all the Cities and the County of San Diego that the increase in the
RTCIP fee for FY 2019-20 is set at 2%. This will increase the City's RTCIP Traffic Mitigation Fee
from $2,483.48 to $2,533.15 per residential unit starting on July 1, 2019.
Recommended Action:
It is recommended that the City Council adopt the Resolution (Attachment A) approving a 2%
increase in the RTCIP Traffic Mitigation Fee for residential dwelling units from $2,483.48 to
$2,533.15 for FY 2019-20, as required by the TransNet Ordinance, starting July 1, 2019.
Discussion:
In November 2004, voters in San Diego County approved a 40-year extension to the existing
TransNet program, which was first initiated in 1987. The TransNet program was designed to fund
improvements to the region's transportation system through a half-cent sales tax. In addition to
the sales tax extension, the TransNet Ordinance mandates implementation of a local traffic
mitigation fee to fund missing improvements on the Regional Arterial System. The local traffic
mitigation fee, also known as the RTCIP Traffic Mitigation Fee, was set at $2,000 per residential
dwelling unit starting on July 1, 2008. Funds collected from this fee will be used for roadway and
traffic signal improvements on Espola Road, Poway Road, Pomerado Road, Twin Peaks Road,
Community Road, Ted Williams Parkway, Camino Del Norte, and Scripps Poway Parkway.
On April 1, 2008, the City Council adopted the RTCIP Traffic Mitigation Fee pursuant to the
TransNet Ordinance. The TransNet Ordinance mandates that the adopted RTCIP Traffic
Mitigation Fee for residential dwelling units be adjusted annually for construction cost inflation,
based on the construction cost index, but requires a minimum 2% annual increase. The fee was
increased by 2% in 2009 through 2014, 2.5% in 2015, and 2% in 2016 and 2017, and 3.3% in
2018 and is currently at $2,483.48 per residential dwelling unit. SANDAG has informed all the
Cities and the County of San Diego (Attachment B) that the percentage increase for FY 2019-20
is set at 2%. This will increase the City's RTCIP Traffic Mitigation Fee from $2,483.48 to
$2,533.15 per residential unit starting July 1, 2019, for FY 2019-20.
1 of 7 April 16, 2019, Item #3.1
2% Increase in the RTCIP Traffic Mitigation Fee for FY 2019-20
April 16, 2019
Page 2
Environmental Review:
This item is exempt from the requirements of the California Environmental Quality
Act (CEQA), pursuant to Section 15061 (b)(3) of the CEQA Guidelines, as it entails a State
mandated update to a current City fee, and there is no possibility that this will have a significant
effect on the environment.
Fiscal Impact:
Using the new fee of $2,533.15 per residential dwelling unit, estimated revenue of
$141,856 is projected for FY 2019-20.
Public Notification:
Notice of the public hearing was published twice in the Poway News Chieftain.
Attachments:
A.Resolution
B.SANDAG Agenda Item No. 6 dated February 22, 2019
Reviewed/Approved By:
Wendy Kaserman
Assistant City Manager
2 of 7
Reviewed By:
Alan Fenstermacher
City Attorney
Tina M. White
City Manager
April 16, 2019, Item #3.1
RESOLUTION NO. 19-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
POWAY, CALIFORNIA, APPROVING A 2% IN CREASE IN THE REGIONAL
TRANSPORTATION CONGESTION IMPROVEMENT PROGRAM (RTCIP)
TRAFFIC MITIGATION FEE FOR FISCAL YEAR (FY) 2019-20,
AS REQUIRED BY THE TRANSNET ORDINANCE
WHEREAS, in November 2004, voters in San Diego County approved a 40-year extension to
the existing TransNet program to fund improvements to the region's transportation system;
WHEREAS, the extension Ordinance requires local agen cies to collect traffic mitigation fees,
starting July 1, 2008, from residential dwelling units to fund the Regional Transportation Congestion
Impr ovement Program (RTCIP) to ensure that new development directly invests in the region's
transportation system to offset the negative impact of growth on congestion and mobility;
WHEREAS, on April 1, 2008, the City Council adopted the RTCIP Traffic Mitigation Fee of
$2,000 per residential dwelling unit pursuant to Section 9A of the TransNet Ordinance;
WHEREAS, Section 9A of the TransNet Ordinance also mandates that the RTCIP Traffic
Mitigation Fee shall be increased annually, in an amount not to exceed the percentage increase set
forth in the Engineering Construction Cost Index published by the Engineering News Record or
similar cost of construction index with a minimum increase of 2%;
WHEREAS, the City Council has adopted annual increases to the RTCIP Traffic Mitigation
Fee and the current fee is $2,483.48 per residential dwelling unit, pursuant to Section 9A of the
TransNet Ordinance;
WHEREAS, SANDAG has informed the City that the percentage increase in
the RTCIP Traffic Mitigation Fee for FY 2019-20 is set at 2%; and
WHEREAS, the City Council inten ds by this Resolution to increase the
City's RTCIP Traffic Mitigation Fee from $2,483.48 to $2,533.15 per residential dwelling unit to meet
the requirement of Section 9A of the TransNet Ordinance.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as follows:
Section 1: The City Council finds that the adoption of this Resolution is exempt
from the requirements of the California Environmental Quality Act (CEQA), pursuant to Section
15061 (b)(3) of the CEQA Guidelines, as it entails State-mandated updates to current City
regulations, and there is no possibility that this will have a significant effect on the environment.
Section 2: The City Council, starting July 1, 2019, hereby increases the RTCIP Traffic
Mitigation Fee from $2,483.48 to $2,533.15 per residential dwelling unit, regardless of type,
to fund roadway and traffic signal improvements on Espola Road , Poway Road, Pomerado Road,
Twin Peaks Road, Community Road, Ted Williams Parkway, Camino Del Norte, and Scripps Poway
Parkway considered part of the Regional Arterial System.
3 of 7 ATTACHMENT A April 16, 2019, Item #3.1
Resolution No. 19-
Page 2
PASSED, ADOPTED AND APPROVED by the City Council of the City of Poway, California,
at a regular meeting, this 16th day of April 2019.
ATTEST:
Faviola Medina, CMC, City Clerk
STATE OF CALIFORNIA ) ) ss
COUNTY OF SAN DIEGO )
Steve Vaus, Mayor
I, Faviola Medina, City Clerk, of the City of Poway, California, do hereby certify under penalty
of perjury that the foregoing Resolution No. 19-was duly adopted by the City Council at a meeting
of said City Council held on the 16th day of April 2019, and that it was so adopted by the following
vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
4 of 7
Faviola Medina, City Clerk
City of Poway
April 16, 2019, Item #3.1
ltem:6
Board of Directors February 22, 2019
TransNet Regional Tran sportation Congestion Im provement
Program Proposed Fee Adjustment
Overview
The TransNet Extension Ordinance requires the 18 cities
in the San Diego region and the County of San Diego to
collect a Regional Transportation Congestion
Improvement Program (RTCIP) fee from the private
sector for each new housing unit constructed in their
jurisdiction.
The purpose of this fee (sandag.org/rtcip) is to help
ensure that future development contributes its
proportional share of the funding needed to pay for the
impact of new growth on the Regional Arterial System
and related regional transportation facility
improvements, as defined in the most recent Regional
Transportation Plan adopted by SAND AG.
Key Considerations
SANDAG is required to adjust the minimum RTCIP fee
amount on July 1 of each year based on an analysis of
construction cost indices, but ne ver less than 2 percent.
The purpose of this annual adjustment is to ensure that
the RTCIP retains its purchasing power to improve the
regional arterial system.
Based on an analysis of construction cost trends and
releva nt indices, staff recommends a 2 percent fee
adjustment to the RTCIP, raising the minimum RTCIP fee
from $2,483.48 to $2,533.15 beginning July 1, 2019
(Attachment 1 ).
Action: Approve
The Board of Directors is asked to approve a
2 percent adjustment to the Regional
Transportation Congestion Improvement
Program, raising the minimum fee from
$2,483.48 to $2,533.15, beginning
July 1, 2019.
Fiscal Impact:
Pending approval by the Board of Directors,
the minimum Regional Transportation
Congestion Improvement Program fee would
increase from $2,483.48 to $2,533.15
beginning July 1, 2019.
Schedule/Scope Impact:
The Regional Transportation Congestion
Improvement Program fee is collected for each
new housing unit constructed and may be
used for projects on the Regional Arterial
System, such as new or widened arterials,
traffic signal coordination, freeway
interchange and related improvements,
railroad grade separations, and improvements
required for express bus and rail transit.
The Independent Taxpayer Oversight Committee (ITOC) reviewed the proposed RTCIP fee adjustment at its
February 13, 2019, meeting and had no comments.
Next Steps
In accordance with TransNet Extension Ordinance provisions, each jurisdiction's RTCIP Funding Program 1
must be submitted for review by the ITOC by April 1 of each year to remain eligible for TransNet local street
and road funding. The annual submittal of RTCIP funding programs by local jurisdictions is scheduled for
review at the April 10, 2019, ITOC meeting.
Hasan lkhrata, Executive Director
Key Staff Contacts: Jim Miller, (619) 699-7325, jim.miller@sandag.org
Ariana zur Nieden, (619) 699-6961, ariana.zurniedenr@sandag.org
Attachment: 1 . Discussion Memo
1 Section 9 of the TransNet Extension Ordinance requires that local jurisdictions establish a program or mechanism for
funding the Regional Arterial System. For purposes of the RTCIP, the Regional Arterial System is defined in the most
recent Regional Transportation Plan adopted by SANDAG. 5 of 7 ATTACHMENT B April 16, 2019, Item #3.1
Attachment 1
Discussion Memo
Background
The TransNet Extension Ordinance requires the 18 cities and the County of San Diego to collect a fee from
the private sector for each new housing unit 1 constructed in that jurisdiction for contribution to the Regional
Transportation Congestion Improvement Program (RTCIP). RTCIP revenue is required to be used to construct
impr ovements on the Regional Arterial System, such as new or widened arterials, traffic signal coordination
and other traffic improvements, freeway interchange and related freeway improvements, railroad grade
separations, and improvements required for express bus and rail transit.
The Ordinance further requires SANDAG to adjust the RTCIP fee amount each year, and states that in no
event shall the adjustment be less than 2 percent per year or more than the perc entage increase set forth in
the Engineering Construction Cost Index (CCI) published by the Engineering News Record (ENR), or a similar
CCI.The purpose of this annual adjustment is to ensure that the RTCIP ret ains its purchasing power to
improve the Regional Arterial System and to help ensure future development contributes its proportional
share of the funding needed to pay for the impact of new growth on the Regional Arterial System and
related regional transportation facility improvements, as defined in the most recent Regional Transportation
Plan adopted by SANDAG.
The RTCIP funding programs fall under the responsibility of the 19 local jurisdictions, which must maintain
their RTCIP funding programs and comply with specific administrative requirements in order to remain eligible
for TransNet local street and road funding.
The RTCIP has been implemented in the San Diego region since July 1, 2008. Annual RTCIP fee adjustments,
funding program reports, and related audits can be found at sandag.org/rtcip. Relevant excerpts can be
referenced at TransNet Extension Ordinance and SANDAG Board Policy No. 031 .
Analysis of Construction Cost Indices
SANDAG staff evaluated changes recorded in the ENR Los Angeles CCI, which is based on monthly price
changes in four areas: lumber, cement, structural steel, and labor. Los Angeles reflects construction cost
trends similar to those in San Diego. During the period that covers December 2017 to December 2018
(latest available data), the ENR Los Angeles CCI increased by 0.64 percent. The other CC ls grew faster, with
the ENR National CCI growing 3.3 percent and the Caltrans CCI increasing 1.1 percent.
While there is general consensus that construction costs will continue to increase in 2019, there always is
uncer tainty in forecasting costs in the construction industry due to factors such as changes in domestic and
intern ational growth and uncertainties in global politics. In addition, all indices show some volatility, and for
that reason, it is important to analyze the longer-term picture from 2008, when the RTCIP was first instituted
when considering the required annual adjustment.
The cumulative growth of the RTCIP has been 24.2 percent, with the ENR Los Angeles CCI seeing a
22.3 percent growth over the same period. The ENR National CCI (33.1 %) and Caltrans CCI (54.3%) both
exceeded this rate over the same period. This comparison over time shows that by maintaining the annual
adjustment at the minimum 2 percent increase required, the RTCIP had last year begun to fall behind the
overall goal of keeping pace with inflation. While the ENR Los Angeles CCI is the slowest growing of the CCls
considered, the chart below shows it also has increased at basically the same rate as the RTCIP.
1 Units constructed for extremely low-, very low-, low-, and moderate-income households may be exempted.
2
6 of 7 April 16, 2019, Item #3.1
Construction Cost Index
(2008 = 100)
125
120
115
110
105
100
95
2008 2009
Comparing Construction Costs (2008=100)
Trans Net RTCI P vs. EN R LA CCI
2010 2011 2012 2013 2014 2015 2016
-TransNet RTCIP -ENR LA CCI
2017 2018
To ensure that the RTCIP fee maintains its purchasing power to complete necessary road improvements, staff
recommends the minimum required 2 percent increase that would mirror the small increase in the ENR CCI
for Los Angeles. Increasing the fee by a lesser percentage would not keep pace with construction inflat ion,
meaning the RTCIP would have less ability to mitigate transportation impacts of new development, which
would be inconsistent with the Ordinance.
3
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