CITY OF MOUNTAIN VIEW

MEMORANDUM 4 1
DATE February II 2010

TO City Council

FROM Martin Alkire Planner

Principal

SUBJECT FEBRUARY 16 2010 STUDY SESSION GENERAL PLAN LAND USE

OPTIONS AND DRAFT GOALS

PURPOSE

The purpose of this Study Session is to continue the discussion from the joint City
Council and Environmental Planning Commission EPC meeting of February 2 2010

regarding the General Plan land use options and draft goals Specifically the following
change areas and topics remain to be discussed

East Whisman

Moffett Boulevard

General Plan Process and Schedule

the EI Camino Real

At the meeting staff will provide a brief recap of the discussions on

San Antonio and North Bayshore change areas

Additional Information

At the February 2 2010 meeting Council and the EPC made several requests for
additional data and information list of the
Attachment 1 contains a
request with staff
responses

North Bayshore

Based on the discussions at the first meeting North Bayshore is an area that has the

potential for significant change The Council and the EPC expressed interest in
studying an FAR of up to 1 0 along with additional retail and service uses along
City Council
11 2010
February
Page 2

Shoreline Boulevard This also detailed

area
requires more
study of policies to address
issues such the
as
following

Transportation connections to the downtown transit center

Transportation demand management TDM

strategies to reduce traffic impacts

Strategies to address sustainability of the area

Strategies to address sea level rise

In addition Google Inc has submitted a letter to Council regarding the future of the
North Bayshore Area see Attachment 2 February 11 Google Letter Google would
like an opportunity to have an in depth discussion with Council about their vision of
creating a sustainable community in North Bayshore that would incorporate a
range of
uses
including residential

Given the
complexity of the aforementioned issues and Google s interest staff suggests
that Council and or the EPC schedule a
Study Session focused on North Bayshore
This will allow staff to provide additional information and
possible strategies regarding
transportation TDM and sea level rise issues The Study Session would also allow
Google time to present their ideas on North Bayshore and future development of their
properties

General Plan Schedule and Process

The General Plan Update is critical

entering a
phase into which goals land use options
and key policies will need to be endorsed ultimately by the Council After Council
endorsement detailed environmental
a more
analysis will begin through the
environmental review process At the
meeting staff will provide information on
upcoming steps in the General Plan process and will seek direction on the desired
process level of review and the roles of Council Project Advisory Committee which is
City Council
11 2010
February
Page 3

the EPCplus the Council General Plan Subcommittee and the EPC at
key steps in the
upcoming project phases

Martin Alkire cia

Principal Planner

Nadine P Levin
Q
C

t
AS
Kevin C Duggan
City Manager

MA 7 CAM
891 02 16 lOM E

Attachments 1 Supplemental General Plan Land Use Information

Option
2 February 11 Letter from Google
 Attachment 1

data
5 Provide additional water
supply and energy

Thefollowing is additional water supply and use information Staff will provide additional

energy information at a
future meeting

1992 General

Assessment Plan Land Use Land Use

Build Out Option A Option B
Criteria Description

Total contracted water 19 500 000 GPD Gallons Per Day

Water Supply supply
Assurance assurance

Use Total existing water 12 600 000 Average GPD

Existing use

Use Total projected water use 14 100 000 15 400 000 17 400 000
Projected
Average Average Average
GPD GPD GPD

surrounding proposed change and their allowable

6 Provide map of
a area s areas

heights

Maps ofchange areas and the allowed heights of surrounding areas are attached for
reference

7 Provide additional information on the General Plan Land Use Options and
potential school impacts

Staff has met with the Mountain View Whisman School District and the Mountain View
Los Altos High School District to discuss the General Plan process Staff will also be

holding afollow up meeting with the Los Altos School District Staff will continue to
Plan land
share information with the school districts regarding the development of General
use options and policies and their implications to the school districts

MA 7 CDD

891 02 16 10A E
 Attachment 1

SUPPLEMENTAL GENERAL PLAN LAND USE OPTION INFORMATION

The following is a list of additional data requests from the February 2 2010 joint

meeting with staff responses in italics

1 Clarify the Fiscal Impact Analysis Study

Staff has attached an excerpt from Mundie and Associates Fiscal Impact Analysis Study to
provide some additional context and information see attached excerpt

Additionally the City s Finance and Administrative Services Department has been
working closely with Community Development Department staffand Mundie and
Associates regarding the approach and content of the Fiscal Impact Analysis Study Staff
notes that the Fiscal Impact Analysis approach is different than the City s own budget

forecasting approach This difference is explained in the attached excerpt

2 Provide additional information regarding sea level rise impacts

Staff continues to gather information regarding the impacts of potential sea level rise in the
North Bayshore Area The Santa Clara Valley Water District has taken a leading role in

helping South Bay cities understand the implications of sea level rise and will be providing
additional resources to cities in the coming months

The City s General Plan EIR and related General Plan policies will address sea level rise
impacts in greater detail once the Preferred Land Use Alternative is selected An example
of a potential strategy would be to evaluate the existing North Bayshore levee
infrastructure for potential improvements that could mitigate future sea level rise

and data
3 Provide actual existing population jobs

In 2009 the population of 72 300 and total of 52 000 jobs

City had a a

4 Provide additional jobs housing information

housing ratio calculated 44

1
jobs per employed resident
The City s 2009 jobs to was at

The General Plan build out scenarios project the following jobs to employed resident ratios

1992 General

Assessment Plan Land Use Land Use

Build Out A Option B
Criteria Description Option

The ratio of jobs 40

1 1 36 136
Jobs Housing to

Ratio employed residents

 Mundie Associates
Fiscal Impact Study Excerpt DRAFT January 11 2010

Land Use and the City s Fiscal Condition

How might changes in land use permitted by the General Plan affect Mountain View s operating
revenues and costs

Of the most important revenue sources included in the fiscal 4

analysis
Property taxes increase when new development occurs The annual increases in property
tax revenue are limited however with certain exceptions increases in assessed value the
value on which the tax is based are capped at two percent per year unless the is property
sold at which time the assessed value is reset at the sale price
In practice the regulation of property tax increases means that nonresidential development
is likely to deliver a bigger increase in the property tax base when it is new because most
types of nonresidential buildings are more expensive to construct and therefore carry a
higher assessed value than residential buildings Over time however residential properties
are likely to be sold more
frequently than nonresidential properties the property taxes they
generate are more likely to keep pace with inflation over a multi year period than are the
taxes paid on nonresidential uses

Sales taxes may increase as a result of 1 population growth as more residents seek to buy
retail goods in Mountain View at stores convenient to their homes 2 employment growth
as more businesses and their employees make
purchases at Mountain View stores and 3
retail development as more stores become available to capture the purchases made by
residents of and businesses in Mountain View and the neighboring communities

For sales tax increases to occur with any of these types of new development however sev
eral other conditions must be present most importantly to avoid simply shifting existing tax
able sales from one location to another the new space must offer goods that are not cur
rently available in sufficient quantity within the city
Transient occupancy taxes increase when new visitor accommodations are built Again criti
cal conditions must be present the new hotels motels or other accommodations must
attractovernight visitors who are not currently staying in Mountain View either because the
supply of existing rooms is insufficient or the types of rooms available do not meet their
requirements e g for quality location and or price
Utility user taxes increase with all types of new development that use electricity natural gas
or
telephone service

Changes in costs that result from land use changes are generally attributed to the population and
employment that occupies new space but some costs are also related to physical characteristics
such as miles of streets or acres of parks

Some costs are less sensitive than others to changes in land use For example the City
currently
operates five fire stations These stations are located in a pattern that is expected to be able to
provide effective service throughout the City with any amount of development that may occur
within or adjacent to the existing city limits Therefore the cost of fire protection is expected to
rise with inflation but not in response to new development

4 The fiscal
analysis excludes certain operating revenues specifically permit fees and other onetime charges for
service that are set at a level that is intended to cover the costs of the services provided In Mountain View most
development related fees are collected in a separate operating fund and therefore are not included in the revenues
shown in Table 1 This analysis also does not include revenue from interest on invested reserves

5
 DRAFT January 11 2010

The General Plan Fiscal Model

To assess the impacts of new development on the City s ability to provide services Mundie
Associates constructed a spreadsheet based fiscal impact model to project future revenues and
costs as well as property tax increments

The fiscal model considers all of the revenues collected by and costs of service covered by the
General Operating Fund and the SRPC Fund Construction of the model began with a review of
the budget to identify all of the sources of revenues and costs of service Then City staff were
interviewed to ascertain how revenues and costs are likely to change as a result of new develop
ment

Based the budget review and interviews

on A staff formulated equations that describe the
M

dynamics of change in revenues and costs The equations were then applied to the development
permitted by the existing General Plan and plan options to provide projections of future revenues
and costs in the General Operating Fund the SRPC Fund

All the fiscal model is comprised of a set of 16 spreadsheet files with a total of over 100
together
individual worksheets Figure 1 illustrates the flow of information through the fiscal model

Figure1
Flow of Information for the Fiscal Model

1
Parameters
6
Assumptions
Data InDuts Assessed
Value

K XiSling
Land Use r 7
Revenues

9
3
Net
New Development
Fiscal Balance
Under Construction
Approved or

8
Proposed
ICPiDelinel Costs

Development
to be Removed
for New Uses

5
Future Development
Permitted by
General Plan

6
 DRAFT January 11 2010

Caveats in Evaluating the General Plan Fiscal Impact Analysis

Focus the Impacts of Land Use

on
Change
The focus of this fiscal analysis is specifically on the impacts of land use changes on the City s

operating revenues and operating costs For that reason it attempts to hold all other conditions
constant

The Current Conditions Report notes some of these conditions which could affect the City s future
fiscal condition but because the focus of this analysis is on the impacts of land use changes
are not considered explicitly in this study Briefly summarized they are

Economic climate factors The analysis assumes that the recession will end and that eco

nomic factors such as housing prices for example will behave as they do in normal eco
nomic times

Characteristics of businesses located in Mountain View Although the City through its zon
ing and development controls can regulate the types of buildings that are developed it has
less control over the specific businesses that occupy those buildings In and of itself the
General Plan cannot influence whether for example manufacturing firms with local sales
and leasing operations will remain in Mountain View or will continue the exodus that has
occurred over the past decade
Rules governing taxation Limitations on property tax increases described above and
requirements that every tax increase be approved by a vote of the electorate limit cities abil
ity to raise revenues Especially in the wake of the current recession which may result in a
reduction in the property tax base that persists for many years these rules may challenge
fiscal health 5

State revenue take aways At present the State of California facing its own fiscal chal
lenges isproposing once again to shift money from local governments to the state treas
ury This analysis does not consider such pOSSible shifts
Contractual obligations As noted in the Current Conditions Report about 80 percent of
expenditures in the City s General Operating Fund are for salaries and benefits and these
costs are governed by union contracts

Inflation Increases in the prices of goods and services throughout the economy affect both
City revenues and City costs

Reporting the Fiscal Results

This fiscal report presents separate revenue and cost projections for the General Operating Fund
and the SRPC Fund

Results are reported for three indicator years 2009 10 the first year of the model 2032 33 the
horizon year of the new General Plan and 2022 23 midway through the planning period For
each of these indicator years the report presents estimates of the net fiscal balance for that year
and the cumulative net fiscal balance through and including that year

5
Real declines in home values and the values of nonresidential properties have prompted owners to apply to the

County Assessor for reductions Proposition 8 reduction in their assessed values AV If an AV reduction is

the reviews the adjustment annually comparing the tax roll value to the market value and
approved County
increasing it as appropriate until the AV reaches its level prior to the pre Proposition 8 reduction

7
 DRAFT January 11 2010

Differences Between the Fiscal Analysis and the City s Financial Forecast

Every year staff of the Mountain View Finance and Administrative Services Department prepare a
multi year financial forecast This forecast is a valuable tool in identifying long term fiscal trends
and providing an early warning system for potential fiscal imbalances that may arise over time

The financial forecast is different from this General Plan fiscal analysis
The two documents serve different purposes This report the General Plan fiscal analysis
is intended to illuminate the potential differences in fiscal condition that would occur with dif
ferent amounts and types of new land development over the long term in this case 20
years
It provides a planning level projection of revenues and costs that is useful for com
paring alternative land use packages

The Finance and Administrative Services Department s financial forecast is intended to pro
vide more detailed information about the City s expected fiscal condition in order to guide the
City Council in its budgeting decisions during the next 5 to 10 years Its projections are more
fine tuned by specific assumptions about economic conditions legislative influences and
other factors that are likely to affect revenues and costs in the near term

The two documents are based on different methodologies This report begins with Fiscal
Year FY 2008 09 revenues and costs and projects changes based on changes in land use
with adjustments for inflation that result in changes in population employment miles of
streets acres of parks and other specific development related characteristics of the city

The Finance and Administrative Services Department s financial forecast is based on histori
cal trend information and known current conditions and contractual obligations It reflects the
staffs best judgment about economic conditions and other factors that will affect revenues
and costs It does not explicitly consider the amount type timing of that
or development
may occur in the future

This General Plan fiscal analysis omits some revenues and costs that are included in the
financial forecast As noted elsewhere this study does not consider interest on reserves
some revenues that are intended to offset costs and debt service and capital improvements

costs in the SRPC Fund

The primary purpose and best use of this fiscal analysis is in the comparisons of fiscal
projected
conditions with the existing General Plan and the plan options

Land Use in Mountain View

Existing Development

Information about existing land in Mountain View staff

use was compiled by City

For the fiscal analysis it was necessary to know where the various land uses are located
because location affects the distribution of ongoing property tax revenues among taxing entities
In Mountain View there are three areas that are distinguished from each other in their revenue
and cost characteristics

8
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 Attachment 2

COlogIe
Main 650 253 0000
Google Inc Fax 650 253 0001
1600 Amphitheatre Parkway www google com
Mountain View CA 94043

11
2 10

Kevin Duggan City Manager

Environmental Planning Commission
Mountain View City Council
500 Castro St P O Box 7540 MV 94039
650 903 6301 kevin duggan@mountainview gov

Dear Kevin

continued growth in
Weare you to express our preferences for the future of Google s
writing
the City of Mountain View We would encourage you to provide opportunities for the North
area to continue to be the center of sustainable development for Google s HQ
Bayshore
campus

Our goals for Google s HQ are to provide a future redevelopment that is nurturing and
balance for all
regenerative to the environment provide a vibrant community and worklife
and efficiently manage transportation and pedestrian access needs This must include
mixed uses office retail and residential along with the kind ofland use development
Sustainability Task Force
described in the Final Report by the Mountain View Environmental

We encourage you to be the model Silicon Valley community leading the way with
sustainable and fiscally
visionary development opportunities to create the most efficient
North Bayshore
supportive plan to the community of Mountain View and the area

We look forward to having an in depth discussion with you and the appropriate members of

your staff as soon as possible

Please contact either myself George Salah or Dan Hoffman with any questions

Be Re

David Radcliffe
VP Real Estate and Workplace Services

Google Inc

cc Randy Tsuda Ellis Burns

Dan Hoffman George Salah

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