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Home My WebLink About2007/05/15 Item 9 CITY COUNCIL AGENDA STATEMENT 05/15/2007 Item ...!'.L ITEM TITLE: RESOLUTION APPROVING THE FRAMEWORK FOR AN SR- 125 TOLL REDUCTION INCENTIVE PROGRAM, AUTHORIZING THE CITY MANAGER AND CITY ATTORNEY TO FINALIZE AN AGREEMENT WITH SOUTH BAY EXPRESSWAY BASED ON THIS FRAMEWORK, AND AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT. SUBMITTED BY: REVIEWED BY: RESOLUTION ESTABLISHING A CAPITAL IMPROVEMENT PROJECT ENTITLED "SR-125 TOLL REDUCTION INCENTIVE PROGRAM" (STM365), AMENDING THE FY07 CAPITAL IMPROVEMENT PROGRAM AND APPROPRIATING FUNDS FROM THE AVAILABLE BALANCE OF THE TRANSPORTATION DEVELOPMENT IMPACT FEE (TDIF) FUND. CITY ENGINEER ~ /' INTERIM CITY MANAGER if 4/5THS VOTE: YES 0 NO D On May 10, 2005, the City Council approved adding a Transportation Demand Management (TDM) project to the Transportation Development Impact Fee (TDIF) Program. The project included funding allocations for two specific TDM programs to alleviate congestion by encouraging alternative modes of travel during the peak commuting hours. Tonight the City Council will consider the framework for a $2.2 million proposed Toll Reduction Incentive Program for SR-125/South Bay Expressway utilizing $1.8 million in previously allocated TDIF funds and $400,000 in toll credits from South Bay Expressway. ENVIRONMENT AL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because it involves only a reduction in the fees paid to use SR-125 and does not result in any changes to the physical environmental; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. 9-1 05/15/2007. Item~ Page 2 of5 RECOMMENDATION That Council approve the Resolutions: I) Approving the framework for an SR-125 Toll Reduction Incentive Program, authorizing the City Manager and City Attorney to finalize an Agreement with South Bay Expressway (SBX) based on this framework, and authorizing the Mayor to execute the Agreement; and, 2) Establishing a Capital Improvement Project entitled "SR-125 Toll Reduction Incentive Program" (STM365), amending the FY07 Capital Improvement Program and appropriating funds from the available balance of the Transportation Development Impact Fee (TDIF) fund. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION On May 10, 2005, the City Council approved adding a Transportation Demand Management (TDM) project to the Transportation Development Impact Fee (TDIF) Program. The project included funding allocations for two specific TDM programs to alleviate congestion by encouraging alternative modes of travel during the peak commuting hours. These projects consisted of the following: a) $200,000 to supplement the existing TDM program as approved by the City Council on July 24,2001. b) $1.8 million for "toll reduction" for SR-125. At that time, staff recommended an implementation strategy that is fair and equitable to residents whose homes have paid the interim SR-125 fees. Additionally, staff indicated the desire for a resultant benefit of the "toll reduction" by securing a substantial "volume discount" from CTV/South Bay Expressway for eligible Chula Vista residents. Potential Program Benefits The City's traffic studies for the toll facility show that the difference in volumes between the north end of the City and the south end of the City are projected to be approximately 40,000 trips per day. These 40,000 trips originate or terminate within the City of Chula Vista and could use the toll road instead of the I-5, I-805 freeways or the local north/south arterials. When considering the potential effect of a toll road incentive, it is reasonable to assume that the availability of a toll reduction program will encourage a greater number of users than might otherwise be utilizing this facility. It is anticipated that traffic volume decreases related to the opening of the SR-125 will be most significant on the local arterial approaches from eastern Chula Vista to I.805 such as Bonita Road, East H Street, Telegraph Canyon Road, East Orange Avenue/Olympic Parkway, and Main Street and for local trips, streets that parallel South Bay Expressway between East H Street and Birch Road. Motorists in central (between I-805 and SR-125) and western (west ofI-805) Chula 9-2 05/15/2007, Iteml Page 3 0[5 Vista would benefit by a corresponding reduction in traffic volumes along the I-805 corridor and to some extent on the I-5 corridor, especially during the peak commute times. Proposed Toll Incentive Agreement Framework The toll reduction incentive program components were developed with the goal of reaching the broadest base of potential long-term toll road users as possible. In anticipation of the toll road opening in late summer 2007, South Bay Expressway and City staff have met extensively and considered a variety of possibilities for a Toll Reduction Incentive Program as part of an overall TDM effort. Preliminary agreement has been reached, subject to City Council approval tonight, on a framework that directly and indirectly benefits those residences, east of the I-805 Freeway, who paid the interim SR-125 DIF (collected between January 1995 and April 2004). The table below provides more detail about the 17,620 units that paid into the interim SR-125 DIF. Residential Units Apartments Condominiums Duplex or Senior Single Family Total Townhome Housing Residential Units 2,389 2,135 441 204 12,451 17,620 With the proposed framework, these residences would benefit directly with the opportunity to receive toll credits for toll road trips on the SR-125 outside the city limits of Chula Vista and indirectly through the program component allowing free travel for all Chula Vista residences and businesses with South Bay Expressway FasTrak accounts when using the SR-125 for local trips between East H Street and Birch Road thereby generally relieving congestion on eastern streets. The framework is intended to make maximum use of the available funds while promoting use of the new facility to alleviate congestion on local roadways, particularly in the eastern territory. The major concepts are as follows: . The City and South Bay Expressway would put a combined total of $2.2 million toward this transportation demand management effort. . The City's $1.8 million contribution would be allocated directly to the 17,620 units that paid into the Interim SR-125 DIF. Specifically, upon opening a South Bay Expressway FasTrak account, each of these residences would receive $80 in toll credit (totaling $1,409,600). Additionally, for up to six months from date of South Bay Expressway opening or until a total value of $390,400 is reached, each of these residences would also be able to enjoy toll-free local travel on South Bay Expressway from East H Street to Birch Road. In order to start up the program, one-quarter of the $1.8 million would be made available to South Bay Expressway upon execution of the Toll Reduction Incentive Program agreement. . Additionally, through South Bay Expressway's contribution in toll credits ($400,000), for up to six months from date of South Bay Expressway opening or until a value of $400,000 is reached, all other local travel on South Bay Expressway from East H Street to Birch Road would be toll-free; thereby relieving overall congestion on eastern territory roads for the benefit of all. . To the extent that South Bay Expressway incurs expenses to market this program directly to DIF residences (program development, advertising, direct mail, events, etc.) those expenses would be deducted from the $400,000 local trip toll-free program funds and the available amount/time period for the program would be adjusted accordingly. 9-3 05/15/2007, 1tem~ Page 4 of5 . To the extent that allocated funding for local trip toll-free travel value is achieved prior to the end of six months, the local trip free travel program would be terminated, unless other arrangements are agreed to between the City and South Bay Expressway to continue the program. . Any toll credits not issued to eligible residents or toll-free local trip value not used after six months of the opening of the South Bay Expressway would go into supplementing/extending toll credits for those residences that paid into the Interim SR- 125 DIF, extending the local free toll period for those residences or other purpose agreed to between the City and South Bay Expressway, with the understanding that program funds would remain in the program unless otherwise agreed to between City and South Bay Expressway. . South Bay Expressway would report program activity monthly in writing to the City showing activity in all three areas (toll credit, short-trip travel and marketing) to be drawn against the $2.2 million available for the program. . SBX and City staff would meet quarterly to analyze use of the program components to evaluate usage of the toll road and positive impacts on City streets. The toll incentive reduction program is intended to take advantage of FasTrak accounts that electronically debit the toll fee from the user's pre-paid account. Thus, all program participants would have to open a South Bay Expressway FasTrak account. If they open an account using a credit card or automatic bank draft as the account replenishment method, there would be no pre- paid balance required; neither would any security deposit be required for the FasTrak transponder. If they open an account using cash or check as their replenishment method, there would be no pre-paid balance required however, a $35 security deposit would be required for the FasTrak transponder. South Bay Expressway anticipates beginning to open accounts beginning in mid-June of this year. FasTrak uses Radio Frequency Identification (RFID) technology to read data from a transponder placed in a vehicle (usually mounted by velcro strips to the inside windshield) moving at full highway speed. The RFID transponder in each vehicle is associated with a prepaid debit account. Each time the vehicle passes underneath a toll collection site, the account is debited to pay the toll. When a FasTrak account runs low, the toll credit balance is automatically replenished using the credit or debit card or by cash/check replenishment, at the customer's choice. FasTrak customers receive significant discounts over those who choose to pay cash for their trip. The South Bay Expressway/SR-125 fee schedule is attached (Attachment 1). Alternatives SBX and City staff considered several vanatJons but felt that the combination of options presented above provided variety, creativity and best fulfilled the goals of transportation demand management. The most noteworthy alternatives considered included the following: . Delav start of toll collections. Use funds to Dre-Dav all tolls for a certain Deriod of time. This variation would allow the SR-125 facility to operate for a predetermined amount of time or up to a certain dollar amount as a freeway within Chula Vista's city limits. Once the time period came to an end or the dollar amount was reached, tolls would then be required to use the facility. Since this option would tend to generate the most users, it would also potentially exhaust 9-4 05/15/2007. Item..9.- Page 5 of 5 available funds more rapidly. It would also not be limited to Chula Vista residents as free travel would be available to anyone entering onto the toll road from a Chula Vista location. . Provide all residences that oaid into the interim SR-125 DIF toll credits of aooroximatelv $124.00. This would allow only those that paid into the interim DIF the ability to experience the toll road through this Toll Reduction Incentive Program. This approximately $2.2 million option potentially misses an opportunity to expand usage across a broader base in order to achieve a greater overall reduction in congestion on eastern City streets and expand the user base. DECISION MAKER CONFLICT: Staff has reviewed the property holdings of the City Council and has found a conflict exists, in that Council Member McCann has property holdings within 500 feet of the boundaries of the property which is the subject of this action. FISCAL IMPACT: There is no impact to the City's General Fund as a result of this action. Project funds in the amount of$1.8 million will be appropriated from the available fund balance of the TDIF fund. These monies are comprised of fees collected for the Interim SR-125 DIF, transferred to the available fund balance of the TDIF in June of2005 per Resolution 2005-156. Attachment: I. South Bay Expressway/SR-125 Toll Fee Schedule J: IEngineerlA G EN D A ICAS2007105 -15 -07\S R 125Tolllncentive. finaldraftrevise. 050607.doc 9-5 ATTACHMENT South Bay Expressway Toll Schedule II I Origin I Des~nation FasTrak Cash From Dtay Mesa Road to SR.54 $3.5D $3.75 ilIi SPRING VALLEY From Otay Mesa Road to Birch Road, Olympic Parkway, Otay lakes I Telegraph Canyoo Road $2.50 $3.75 6 or East H Street Any local trip between Birch Road and BONITA 75C $2.50 San Miguel Ranch Road East H Street from 8irch Road, Olympic Parkway, Otay lakes I East H Street Telegraph Canyon Road or East H Street $2.00 $2.50 to SR.54 Olay lakeslTeleoraph Cyn. from San Miguel Ranch Read to SR.54 $1.50 $2.00 Olympic Parkway CHULA VISTA Birch Road Origin I Destination FasTrak Cash From SR.54 to San Miguel Raoch Road $1.50 $2.00 . Olay Mesa Road From SR-54 to East H Street Otay lakes I OTAY MESA . Telegraph Cauyou Road, Olympic Parkway or $2.00 $2.50 Birch Road I UNITED STATES r------ ---------- Any local trip hetween East H Street and MEXiCO 75c $2.50 I otay Mesa Border Crossing , , I Birch Road I ~ From East H Stille!. Otay lakes I Telegraph >QJ- I ' _ Canyon Road, Olympic Parkway or Birch Road $2.50 $3.75 I South Bar hpressway to Olay Mesa Road ---.,- Pi;; thi; fv,; Odl-'K if! du,-i,lY From SR-54to Otay Mesa Road $3.50 $3.75 9-6 RESOLUTION NO. 2007- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FRAMEWORK FOR AN SR- 125 TOLL REDUCTION INCENTIVE PROGRAM, AUTHORIZING THE CITY MANAGER AND CITY ATTORNEY TO FINALIZE AN AGREEMENT WITH SOUTH BAY EXPRESSWAY BASED ON THIS FRAMEWORK, AND AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT WHEREAS, the Interim SR-125 Development Impact Fee (SR-125 DIF) was established by Ordinance 2579 in January 1994 to ensure that sufficient funds would be available to construct a north-south transportation corridor should the SR-125 freeway not be constructed in time to serve impending development; and WHEREAS, in April of 2004, the City Council adopted Ordinance 2959 tolling the SR-125 mF and amending Ordinance 2579 Section 1 (c) to authorize the expenditure of SR-125 DIF fees on transportation enhancing projects or transportation programs related to SR-125; and WHEREAS, in May of 2005, the City Council adopted Ordinance 3029 amending the Transportation Development Impact Fee (TDIF) Program and Resolution 2005-156 transferring the fund balance of the SR-125 DIF fund to the TDIF fund and approved two Traffic Demand Management (TDM) programs, one of which includes the concept of using $ 1.8 million of TDIF fees for "toll reduction" targeted for SR -125; and WHEREAS, City staff and South Bay Expressway (SBX) staff, the operator of SR-125 Toll Road, have worked together to develop specific implementation strategy for Council consideration that is fair and equitable to residents that paid the SR-125 mF; and WHEREAS, the City in conjunction with SBX would like to provide a TDM program in the form ofa SR-125 toll reduction incentive program that helps promote the new toll road facility to alleviate congestion on the City's local arterials to Interstate-805; and WHEREAS, the Enviromnental Review Coordinator has reviewed the proposed activity for compliance with the California Enviromnental Quality Act ("CEQA") and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because it involves only a reduction in the fees paid to use SR-125 and does not result in any changes to the physical enviromnent; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA and no enviromnental review is required; and WHEREAS, the City would like to maximize the resultant benefit of $1.8 million in TDIF funds by securing additional volume discounts in the amount of $400,000 from SBX in order to encourage users to utilize the SR-125 Toll Road. 9-7 NOW, THEREFORE, the City Council of the City of Chula Vista hereby approves the framework for a $2.2 million SR-125 Toll Reduction Incentive Program, authorizing the City Manager and City Attorney to finalize an agreement with South Bay Expressway based on this framework, and authorizing the Mayor to execute this agreement. Presented by Approved as to form by Scott Tulloch, City Engineer // \ ,// ''-".....----------.-// H:\ENGINEERIRESOS\Resos2007\05-15-07\STM365 Toll Reduction Incentive Agreement Reso.doc 9-8 RESOLUTION NO. 2007- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ESTABLISHING A CAPITAL IMPROVEMENT PROJECT ENTITLED "SR-125 TOLL REDUCTION INCENTIVE PROGRAM" (STM365), AMENDING THE FY07 CAPITAL IMPROVEMENT PROGRAM AND APPROPRIATING FUNDS FROM THE AVAILABLE BALANCE OF THE TRANSPORTATION DEVELOPMENT IMPACT FEE (TDIF) FUND THEREFORE WHEREAS, the Interim SR-125 Development Impact Fee (SR-125 DIF) was established by Ordin.ance 2579 in January 1994 to ensure that sufficient funds would be available to construct a north-south transportation corridor should the SR-125 freeway not be constructed in time to serve impending development; and WHEREAS, in April of 2004, the City Council adopted Ordinance 2959 tolling the SR-125 DIF and amending Ordinance 2579 Section 1 (c) to authorize the expenditure of SR-125 mF fees on transportation enhancing projects or transportation programs related to SR-125; and WHEREAS, in May of 2005, the City Council adopted Ordinance 3029 amending the Transportation Development Impact Fee Program and Resolution 2005-156 transferring the fund balance of the SR-125 DIF fund to the Transportation Development Impact Fee (TDIF) fund and approved two Traffic Demand Management (TDM) programs, one of which includes the concept oftoIl reduction on SR-125; and WHEREAS, the Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act ("CEQA") and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because it involves only a reduction in the fees paid to use SR-125 and does not result in any changes to the physical environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA and no environmental review is required; and WHEREAS, the City in conjunction with South Bay Expressway (SBX), the operator of SR-125, would like to provide a TDM program in the form of a SR-125 toll reduction incentive program that is fair and equitable to Chu1a Vista residents and the City would like to maximize the resultant benefit by securing additional volume discounts from SBX in order to encourage users to utilize the SR-125 Toll Road. NOW, THEREFORE, the City Council of the City of Chula Vista hereby amends the FY07 Capital Improvement Program to create a new project titled "SR-125 Toll Reduction Incentive Program (STM365)" and appropriates $1.8 million of TDIF funds from the available balance of the TDIF fund therefore. 9-9 Presented by Approved as to form by Scott Tulloch, City Engineer H:\ENGINEER\RESOS\Resos2007\05-15-07\STM365 Toll Re uction Incentive P eso.doc 9-10