Item Coversheet

Agenda Item 4.

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TRANSPORTATION AGENCY FOR MONTEREY COUNTY
Memorandum
To: 

Technical Advisory Committee

From:

Michael Zeller, Director of Programming & Project Delivery

Meeting Date:

August 4, 2022

Subject:

2022 Regional Fee Construction Cost Update


RECOMMENDED ACTION:

RECEIVE information on the 2022 Construction Cost Index update for the Regional Development Impact Fee program.

SUMMARY:

In 2008, the 12 cities and the County of Monterey adopted a Joint Powers Agreement establishing a countywide Regional Development Impact fee to mitigate the impact of new development on, and fund improvements to, the regional transportation system.  TAMC administers the fee program and applies an annual construction cost index to the fees.

FINANCIAL IMPACT:
The amount of fees generated is directly related to the level of development in the region. Over 20 years, the draft Regional Development Impact Fee program is projected to generate $114.9 million for projects with an additional $10 million for transit capital and 1% for administration, for a total amount of $126.2 million.
DISCUSSION:

The Joint Powers Agreement for the fee program requires that the Transportation Agency, serving as the Joint Powers Agency Board, annually update the Regional Development Impact Fee to account for increases or decreases in construction costs.  The Joint Powers Agreement specified that the Agency should use the Engineering News Record Construction Cost Index for the San Francisco Bay Area for the 12-month period ending December 31st of the preceding calendar year.  For fiscal year 2022/23, this index is +5.27%, and a summary of the change in regional fees per trip by zone are shown in the table below:

 

Fee per Trip FY 2021/22 FY 2022/23
Zone 1 - North County $ 446.28 $ 468.63
Zone 2 - Greater Salinas $ 378.96 $ 396.09
Zone 3- Peninsula and South Coast $ 458.77 $ 480.57
Zone 4 - South County $ 218.22 $ 229.37
Zone 5 - FORA $ 460.14 $ 483.81

 

The updated fees go into effect automatically and local jurisdictions should begin assessing the revised fees on all new development proposals where the fee applies.  A link to the most recent version of the Regional Development Impact Fee calculation worksheet can be found in the Web Attachment link below.

 

Currently, the Regional Development Impact Fee program has a balance of $5.9 million.  The Board has previously approved programming these funds to State Route 156 Improvements (the Castroville Boulevard Interchange and the Blackie Road Extension projects).  For the Castroville Boulevard Interchange project, regional fee funds in the amount of $5 million along with Measure X funds in the amount of $389,000 are being used as a match to a $20 million Senate Bill 1 Trade Corridors Enhancement Program grant that the Agency and Caltrans received. For the Blackie Road Extension project, $250,000 of regional fee funds are being matched with $250,000 of Senate Bill 1 Local Partnership Program formula funds.

ATTACHMENTS:
Description
Regional Fee - FY22/23 Construction Cost Update
WEB ATTACHMENTS:
Regional Development Impact Fee Calculation Worksheet