NOW, THEREFORE, the City Council of the City of Cypress, California, does hereby resolve and establish fees as follows:
SECTION 1. The City Council of the City of Cypress hereby adopts the Park Development Impact Fee Nexus Study prepared by Willdan Financial Services and dated September 2026 (Exhibit A), and hereby adopts the findings and methodology for calculating and collecting the Quimby Act fee and park development impact fee contained therein. A copy of the 2026 Nexus Study shall be on file with the City Clerk and available during regular City business hours for public inspection and copying.
SECTION 2. The City Council hereby adopts the park fees established in Exhibit B, attached hereto and incorporated by this reference, as follows:
A. Quimby Act Fee. The Quimby Act fee shall apply to residential subdivisions subject to Government Code § 66477 and the City’s applicable land dedication and in-lieu fee requirements. The requirement may be satisfied through the dedication of parkland, payment of an in-lieu fee, or a combination of both, as determined in accordance with applicable law and the Cypress Municipal Code.
B. Park Development Impact Fee. The park development impact fee shall apply to new residential development that is not subject to the City’s Quimby Act land dedication or in-lieu fee requirements. The fee shall be imposed pursuant to the Mitigation Fee Act to fund new development’s proportionate share of the parkland and recreational facilities identified in the 2026 Nexus Study.
C. Nonduplication. A dwelling unit subject to the City’s Quimby Act land dedication or in-lieu fee requirements shall not also be subject to the park development impact fee for the same park facility impact.
The fees established in Exhibit B shall take full force and effective 60 days following adoption of this Resolution, in accordance with Government Code § 66019.
SECTION 3. The fees established in Exhibit B of this Resolution shall be added to the City’s Master Fee Schedule.
SECTION 4. Both the Quimby Act and park development impact fee shall be adjusted on an annual basis at the beginning of each fiscal year by applying the percentage change of the Los Angeles Construction Cost Index (CCCI) for the prior 12- month period ending on April 30 published by Engineering News-Record (ENR). Such CPI adjustments shall be effective July 1 for all subsequent years, effective July 1, 2028.
SECTION 5. The City Council finds and determines that Table 10 of the 2026 Nexus Study identifies the CIP projects necessary to serve the City’s total population through the end of the Nexus Study period and that fee revenues will fund only new development’s proportionate share of those projects.
SECTION 6. The City Council finds that adoption of this Resolution is not a project subject to the California Environmental Quality Act pursuant to Section 15378(b)(4) of the CEQA Guidelines because the resolution establishes governmental funding mechanisms and does not commit the City to any specific project that may result in a potentially significant physical impact on the environment. Any future park or recreational facility funded pursuant to this resolution shall be subject to applicable environmental review before approval.
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Cypress at a regular meeting held on the 13th day of October, 2026.
MAYOR OF THE CITY OF CYPRESS
ATTEST:
CITY CLERK OF THE CITY OF CYPRESS
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
I, Lisa Berglund, City Clerk of the City of Cypress, DO HEREBY CERTIFY that the foregoing Resolution was duly adopted at a regular meeting of the said City Council held on the 13th day of October, 2026, by the following roll call vote:
AYES:
NOES:
ABSENT:
CITY CLERK OF THE CITY OF CYPRESS
CITY OF CYPRESS
PARK DEVELOPMENT IMPACT FEE
NEXUS STUDY
SEPTEMBER 11, 2026
Oakland Office Corporate Office Other Regional Offices
66 Franklin Street 27368 Via Industria Aurora, CO
Suite 300 Suite 200 Orlando, FL
Oakland, CA 94607 Temecula, CA 92590 Phoenix, AZ
Tel: (510) 832-0899 Tel: (800) 755-6864 Plano, TX
Fax: (888) 326-6864 Seattle, WA
Washington, DC
www.willdan.com
Exhibit A
i
TABLE OF CONTENTS
1. INTRODUCTION ........................................................................... 2 Background and Study Objectives 2
Legal Authority and Framework 2
Overview of the Calculation Method 3
2. POPULATION AND GROWTH PROJECTIONS..................................... 4 How Growth Projections are Used 4
Projected Population Growth 4
3. PARKS & RECREATION FACILITIES AND FEE CALCULATION .............. 6 City Parkland Standards 6
Existing Park and Recreation Facilities Inventory 6
Parkland Unit Costs 8
Park Fee Calculation Standards 9
Parks Facility Cost per Resident 9
Average Residents per Dwelling Unit 10
Residential Park Fee Schedule 11
Use of Fee Revenue 12
Capital Improvement Program 13
4. IMPLEMENTATION...................................................................... 15 Adoption of the Study and Fees 15
Inflation Adjustment and Periodic Updates 15
Fee Accounting 15
Reporting Requirements 15
Programming Revenue Through the CIP 15
5. MITIGATION FEE ACT FINDINGS.................................................. 18 Purpose of the Fee 18
Use of Fee Revenue 18
Benefit Relationship 18
Burden Relationship 18
Proportionality 18
2 1. Introduction
New residential development increases demand for parkland and recreational facilities. This study establishes updated park fees so that new development contributes its proportionate share of the cost of serving that demand. Based on the City’s park standards and current land and improvement costs, the study calculates the maximum justified fees under the Quimby Act and Mitigation Fee Act. It also estimates the parkland and improvements needed to serve projected residential growth through 2033 and compares those needs with the City’s planned park projects.
Background and Study Objectives
Development impact fee programs should be updated periodically to reflect current development projections, facility needs, and costs. The purpose of this study is to update the City’s park fees using current information about population growth, existing park facilities, land values, and parkimprovement costs.
The updated fees are intended to ensure that new residential development contributes its proportionate share of the parkland and recreational facilities needed to serve new residents while maintaining the City’s existing park standards. This study calculates the maximum justified fees and provides the technical analysis and findings needed to support their adoption.
Legal Authority and Framework
California law provides two primary frameworks for requiring new residential development to contribute toward park facilities: the Quimby Act and the Mitigation Fee Act. Both are intended to ensure that new development contributes its proportionate share of the park and recreational facilities needed to serve its future residents. The applicable framework depends primarily on whether the development involves a subdivision of land.
Quimby Act
The Quimby Act authorizes cities and counties to require residential subdivisions to dedicate land for parks, pay a fee in lieu of dedicating land, or provide a combination of land and in-lieu fees. Its purpose is to ensure that new subdivisions contribute toward the neighborhood and community park facilities needed to serve their future residents.
The Quimby Act applies when residential development requires approval of a tentative map or parcel map. It generally does not apply to development on an existing parcel that does not involve a subdivision, such as an apartment project constructed on a single parcel.
The amount of land required, or the corresponding in-lieu fee is based on the subdivision’s projected population. The dedication requirement is a minimum of 3.0 acres per 1,000 residents and a maximum of 5.0 acres per 1,000 residents, if certain conditions are met.
When land dedication is not required or is not appropriate, the City may require payment of an inlieu fee based on the value of the land that otherwise would have been dedicated. Land and fees collected under the Quimby Act must be used to develop new or rehabilitate existing neighborhood or community park and recreational facilities that will serve the subdivision.
Mitigation Fee Act
The Mitigation Fee Act establishes the requirements local agencies must follow when imposing development impact fees. Its purpose is to ensure that development fees are reasonably related and proportionate to the public facility needs created by new development.
City of Cypress Park Development Impact Fee Nexus Study 3 Unlike the Quimby Act, the Mitigation Fee Act is not limited to subdivisions. It provides the framework for imposing park impact fees on residential development that is not subject to the City’s Quimby Act requirements, including apartment and other multifamily projects developed on existing parcels.
The Mitigation Fee Act requires the City to demonstrate a reasonable relationship between:
• The purpose and use of the fee;
• The type of development charged the fee;
• The need for the park facilities; and
• The amount of the fee and the cost attributable to the development.
A fee may fund the park facilities needed to accommodate demand created by new development, but it may not charge new development for existing facility deficiencies. The Mitigation Fee Act does not prescribe a specific park standard. For this study, the maximum justified fee is based on the City’s existing ratio of park acreage to residents. This approach requires new development to fund parkland and park facilities at the same level existing residents currently receive.
AB 602 and Nexus Study Requirements
Effective January 1, 2022, Assembly Bill 602 established additional requirements intended to make development impact fee studies more transparent and consistent. A nexus study must identify the existing and proposed levels of service for each public facility and explain why the proposed standard is appropriate. When a study supports an increase to an existing fee, the jurisdiction must also review the assumptions underlying the prior fee and evaluate the fees previously collected. In addition, jurisdictions must include a capital improvement plan as part of the nexus study. This study addresses the applicable AB 602 requirements by documenting the City’s existing park standard, explaining its use as the basis for the proposed fees, noting that the City does not currently impose a Mitigation Fee Act park fee for which prior assumptions or revenues must be evaluated, and identifying planned park improvements through the City’s seven-year Capital Improvement Program.
Overview of the Calculation Method
This study converts the applicable park standards into a cost per new resident and then into a maximum justified fee per square foot of residential development.
The calculation begins by determining the cost per acre to acquire parkland and provide park and recreational improvements in Cypress. These costs are applied to the applicable park standard to calculate the cost of serving each new resident.
For residential subdivisions, the land acquisition component is based on the City’s Quimby Act standard of 3.0 acres per 1,000 residents. The park improvement component is calculated under the Mitigation Fee Act using the City’s existing standard of 1.97 acres per 1,000 residents.
For residential development not subject to the Quimby Act, both the land acquisition and park improvement components are calculated under the Mitigation Fee Act using the City’s existing standard of 1.97 acres per 1,000 residents.
The resulting cost per resident is multiplied by the Citywide average of 2.91 residents per dwelling unit to calculate the maximum justified cost per dwelling unit. That amount is divided by the Citywide average dwelling-unit size of 1,450 square feet to calculate the maximum justified fee per square foot.
Projected population growth through 2033 is not used to calculate the fee charged to an individual development. Instead, it is used to estimate the total parkland and improvements needed to serve future residents and to compare those needs with the projects identified in the City’s seven-year Capital Improvement Program.
4 2. Population and Growth
Projections
This chapter explains the population and housing growth projections used to calculate the park development impact fee. The study uses 2026 as its starting point and projects growth through 2033. This seven-year period matches the planning period covered by the City’s Capital Improvement Program.
How Growth Projections are Used
The City provides parks and recreation facilities primarily for Cypress residents. New residential development adds residents and increases the demand for these facilities.
The study uses population and housing projections to:
• Measure the level of park facilities currently provided to Cypress residents. • Estimate the additional demand that will result from new residential development through 2033.
• Calculate the fair share of park facility costs attributable to new development.
This approach ensures that new development contributes towards the additional park facilities needed to serve its residents without requiring new development to correct existing deficiencies.
Projected Population Growth
Cypress is projected to add approximately 2,392 residents between 2026 and 2033, increasing the City’s population from an estimated 48,982 residents in 2026 to 51,374 residents in 2033. The seven-year projection period corresponds with the City’s Capital Improvement Program, and the park projects the City reasonably expects to undertake during that period.
To calculate the projected population increase, the City identified the number of housing units expected to be constructed between 2025 and 2050 by type (four single family units and 3,345 multifamily units).
1 The projected increase in units was multiplied by the average residents per unit by type of unit (3.0 residents per single family unit and 2.55 residents per multifamily unit, respectively, per American Community Survey data) to estimate the total increase in population through 2050, which was 8,542 residents. This figure was then divided by 25 years to determine the annual increase in residents per year, which was then multiplied by seven years to estimate the projected population increase within the seven-year planning horizon of this study. The resulting population increase was then added to the City’s estimated 2026 population.
Table 1 summarizes projected population growth between 2026 and 2033. It also presents the City’s population as of the 2020 federal census, which is used to establish the City’s Quimby Act parkland standard.
1 City provided data for use in the California State University, Fullerton (CSUF), Center for Demographic Research (CDR), Orange County Projections (OCP).
City of Cypress Park Development Impact Fee Nexus Study 5 Table 1: Population for Park Fee Analysis
Purpose Population
Mitigation Fee Act
Estimated Population (2026) 48,982
Projected Growth (2026 to 2033) 2,392
Projected Population (2033) 51,374
Quimby Act Reference Population1
2020 Federal Census Population 50,151
Sources: City of Cypress; California Department of Finance; U.S. Census Bureau; and California State University, Fullerton, Center for Demographic Research.
1 The City's population as of the most recent 2020 Federal Census is show n separately because it is used to establish the City’s parkland standard under the Quimby Act. It is not the starting population used for the 2026–2033 grow th projection.
6 3. Parks & Recreation Facilities
and Fee Calculation
This chapter calculates the maximum park fees that may be charged to new residential development. As described in Chapter 1, the Quimby Act applies to qualifying residential subdivisions, while the Mitigation Fee Act applies to residential development not subject to the Quimby Act. A project is charged only the applicable fee schedule. This chapter describes the City’s park standards and existing facilities, calculates each fee based on the cost of serving new residents, and identifies how the resulting fee revenue may be used.
City Parkland Standards
Park facility standards establish the amount of parkland and recreational facilities needed to serve residents of new development. Article 6 of the Cypress Municipal Code establishes the City’s parkland standard and the requirements for residential subdivisions subject to the Quimby Act. The City’s standard is three acres of parkland per 1,000 residents, which may be satisfied through the dedication of parkland, payment of an in-lieu fee, or a combination of both.
For residential development not subject to the Quimby Act, the City may impose a park impact fee under the Mitigation Fee Act. That fee is based on the City’s existing inventory of parkland and recreational facilities and is calculated to maintain the level of service currently provided to Cypress residents.
Existing Park and Recreation Facilities Inventory
The City maintains a network of park and recreation facilities throughout Cypress. Table 2 identifies each facility and its acreage. All listed facilities are located within the City.
City of Cypress Park Development Impact Fee Nexus Study 7 Table 2: Park Inventory
Name
Total Park
Acres
Arnold Cypress Park 14.55
Baroldi Sycamore Park 1.50
Cedar Glen Park 2.54
Civic Center Green 2.39
Civic Center Tennis Courts 1.26
Darrell Essex Park 2.50
Eucalyptus Park 2.50
Evergreen Park 5.06
Hettinga Manzanita Park 4.04
Laurel Park 0.17
Lexington Park 8.80
Mackay Park 2.90
Maple Grove Park North 3.14
Maple Grove Park South 1.87
Nature Park 5.75
Oak Knoll Park 22.00
Peppertree Park 2.61
Pinewood Park 2.41
Rosen Acacia Park 1.00
Veterans Park 6.40
Willow Park 2.90
Total 96.29
Source: City of Cypress.
Based on 96.29 acres of improved parkland and the City’s estimated 2026 population of 48,982 residents, the City currently provides 1.97 acres of improved parkland per 1,000 residents. This existing level of service is used in the Mitigation Fee Act calculations.
Recreation Buildings
In addition to its parkland, the City provides several recreation buildings that support community programs and services. These include the Community Center, Boys & Girls Club, and Senior Clubhouse, totaling approximately 46,777 square feet. Because these buildings are part of the existing park and recreation system available to Cypress residents, their value is included in determining the City’s existing level of service.
Table 3 shows the size and estimated replacement cost of each recreation building owned by the City included in the analysis. The replacement costs for the buildings and their contents are based on the City’s most recent insurance valuation. Building contents are capital assets located at each building. The combined replacement cost is divided by the City’s 96.29 acres of improved parkland, resulting in an average recreation building cost of $193,294 per improved park acre.
This amount is included in the total estimated cost of providing an acre of improved parkland in the subsequent report section.
City of Cypress Park Development Impact Fee Nexus Study 8 Table 3: Recreation Building Cost per Improved Park Acre Facility Address Sq. Ft.
Building
Value
Contects
Value
Total
Replacement
Cost
Community Center 5700 Orange Avenue 22,697 $ 8,422,000 $ 1,200,000 $ 9,622,000 Boys & Girls Club 10161 Moody Street 6,000 1,697,552 76,822 1,774,374 Senior Clubhouse 9031 Grindley Street 18,080 6,366,000 850,000 7,216,000 Total 46,777 $16,485,552 $ 2,126,822 $ 18,612,374
Improved Park Acres 96.29
Recreation Buildings Cost per Acre $ 193,294
Source: City of Cypress, Insured Property Schedule, 2025; Table 3, Willdan Financial Services.
Parkland Unit Costs
Table 4 estimates the cost to acquire and improve one acre of parkland in Cypress. The estimated land acquisition cost of approximately $2.92 million per acre is based on all sales of unimproved land in Cypress during the past five years, as reported by CoStar. The total sales price of all sales observations is divided by the total acreage to determine the weighted average cost per acre shown in the table. The estimated cost of standard park improvements is $1.29 million per acre, based on the City’s recent costs to construct Mackay and Baroldi Sycamore Parks. The average cost per acre for recreation buildings calculated in Table 3 is added to the cost of standard park improvements to determine the total cost per acre for all park improvements. Together, land acquisition standard park improvements, and recreation facilities cost approximately $4.4 million per acre.
The fee calculations apply the $2,920,600 land acquisition component and the $1,483,294 park improvement component separately because different parkland standards may apply to each component.
Table 4: Parkland Unit Costs
Cost
Per Acre
Standard Park Improvements1$1,290,000
Recreation Buildings 193,294
Subtotal - Improvements $1,483,294
Land Acquisition2 $2,920,600
Total Cost per Acre $4,403,894
Sources: City of Cypress; CoStar; Willdan Financial Services. 2 Acquisition cost per acre based on land sales comparisons in Cypress reported by CoStar over the last five years.
1 Improvement cost per acre based on the City's recent
neighborhood and community park construction costs.
City of Cypress Park Development Impact Fee Nexus Study 9 Park Fee Calculation Standards
This study calculates two park fees based on the type of residential development proposed. A project is charged only the fee applicable to its development type. Each fee includes separate components for parkland and park improvements, which are combined into one total fee.
Residential Subdivisions
Article 6 of the Cypress Municipal Code establishes a standard of three acres of parkland per 1,000 residents for residential subdivisions subject to the Quimby Act. The parkland component of the subdivision fee is based on this standard. The park-improvement component is calculated under the Mitigation Fee Act using the City’s existing standard of 1.97 acres of improved parkland per 1,000 residents.
Other Residential Development
For residential development not subject to the Quimby Act, both the parkland-acquisition and park-improvement components are calculated under the Mitigation Fee Act using the City’s existing standard of 1.97 acres per 1,000 residents. This ensures that new development contributes the amount needed to maintain the City’s existing level of park service without being charged for existing deficiencies.
Table 5 summarizes the standards used in this analysis.
Table 5: Park Fee Calculation Standards
Quimby
Act1
Mitigation
Fee Act
Developed Park Acreage 96.29 96.29
Service Population 50,151 48,982
Existing Standard (Acres per 1,000 Residents) 1.92 1.97 Quimby Minimum Standard (Acres per 1,000 Residents)1 3.00 Sources: Tables 1 and 2.
1 Per the Quimby Act a jurisdiction can require parkland dedication, or a fee in-lieu of dedication at a standard of least 3.0 acres per 1,000 residents if that jurisdiction had less than 3.0 acres per 1,000 residents as of the last Federal Census. The service population used to calculate the Quimby standard is the population in 2020. The Service population to calculate the existing standard is the population as of 2026.
Parks Facility Cost per Resident
The park fee calculation begins by determining the cost of providing parkland and improvements for each new resident. The cost per resident is calculated by multiplying the applicable parkland standard by the cost per acre and dividing the result by 1,000.
The following table calculates the cost per resident for two development categories. For qualifying residential subdivisions, the land component is based on the Quimby Act standard of three acres per 1,000 residents, while the improvement component is based on the City’s existing standard of
1.97 acres per 1,000 residents. For other residential development, both land acquisition and City of Cypress Park Development Impact Fee Nexus Study 10 improvements are calculated under the Mitigation Fee Act using the City’s existing 1.97-acre standard.
The land and improvement components are shown separately to explain the calculation and are then combined into one cost per resident for each development category. These combined amounts are used to calculate the three park fees in the Residential Park Fee Schedule section of this report.
Table 6: Park Facility Cost per Resident
Calculation
Land Component
Subdivisions
Parkland Investment (per acre) A $ 2,920,600
Existing Standard (acres per 1,000 capita) B 3.00
Total Cost per 1,000 Residents C = A x B $ 8,761,800
Cost per Resident D = C / 1,000 $ 8,762
Other Residential Development
Parkland Investment (per acre) E $ 2,920,600
Existing Standard (acres per 1,000 capita) F 1.97
Total Cost per 1,000 Residents G = E x F $ 5,753,600
Cost per Resident H = G / 1,000 $ 5,754
Park Improvement Component
All Residential Development
Parkland Investment (per acre) I $ 1,483,294
Existing Standard (acres per 1,000 capita) J 1.97
Total Cost per 1,000 Residents K = I x J $ 2,922,100
Cost per Resident L = K / 1,000 $ 2,922
Sources: Tables 4 and 5.
Note: A residential development project pays either the subdivision component for land, or the other residential development component for land, not both. All residential development projects pay the park improvement component.
Average Residents per Dwelling Unit
Residents per unit density assumptions ensure a reasonable relationship between the size of a development project, the increase in population associated with the project, and the amount of the fee. The development impact fees in this study are first calculated for a hypothetical dwelling unit occupied by the average number of residents per unit as currently exists in the City. The result is subsequently divided by the square footage of the average sized dwelling unit in the City to determine a fee per square foot of residential building space.
The average occupant density per dwelling unit used in this report is shown in Table 7. The residential density factor is based on data for Cypress from the 2024 U.S. Census’ American Community Survey, the most recent data available. The factor is derived from Tables B25024 and B25033. Total residents are divided by a count of total dwelling units to determine the average occupants per dwelling unit across all types of dwelling units.
City of Cypress Park Development Impact Fee Nexus Study 11 Table 7: Average Residents per Dwelling Unit
All Dwelling Units 2.91 Residents per Dwelling Unit
Source: Tables B25024 and B25033, U.S. Census Bureau, 2024 American Community Survey 5-Year Estimates
Residential Park Fee Schedule
Table 8 converts the park facility costs per resident shown in Table 6 into fees per square foot of residential development. First, the applicable cost per resident is multiplied by the City’s average of 2.91 residents per dwelling unit identified in Table 7. This results in a park facility cost of approximately $34,000 for an average dwelling unit in a qualifying residential subdivision and $25,247 for an average unit in other residential development, when the land and improvement components are summed together.
Each cost per average sized dwelling unit is then divided by the City’s average dwelling unit size of 1,450 square feet to establish the applicable fee per square foot. The average dwelling-unit size is based on recent City building permit data for single family homes and American Housing Survey data for multifamily housing, weighted to reflect the City’s existing mix of housing types.
The subdivision fee combines the Quimby Act land component with the Mitigation Fee Act parkimprovement component. The fee for other residential development combines the Mitigation Fee Act land acquisition and park improvement components. A project is charged the total fee per square foot applicable to its development type identified in Table 8, which includes the applicable land and improvement components.
City of Cypress Park Development Impact Fee Nexus Study 12 Table 8: Residential Park Fee Schedule
Total Fee
Calculation Land Improvements per Sq. Ft.
Quimby Act - Residential Subdivisions
Cost per Capita A $ 8,762 $ 2,922
Occupants per Unit B 2.91 2.91
Base Fee1
C = A x B $ 25,497 $ 8,503
Sq. Ft. per Unit2 D 1,450 1,450
Fee per Sq. Ft. E = C / D $ 17.58 $ 5.86 $ 23.44
Mitigation Fee Act - Other Residential Development
Cost per Capita A $ 5,754 $ 2,922
Occupants per Unit B 2.91 2.91
Base Fee1C = A x B $ 16,744 $ 8,503
Sq. Ft. per Unit2 D 1,450 1,450
Fee per Sq. Ft. E = C / D $ 11.55 $ 5.86 $ 17.41
Note: The fee per square foot for each component is rounded to the nearest cent. 1 Fee per average sized dw elling unit.
Sources: City of Cypress; American Housing Survey; Tables 6 and 7, Willdan Financial Services. ---------- Component ----------
2 Assumes an average of 1,450 square feet per dw elling unit based on recent building permit data, and data from the American Housing Survey for the Anaheim-Santa Ana-Garden Grove, CA SMSA.
Use of Fee Revenue
The City is projected to add 2,392 residents between 2026 and 2033. Table 9 applies the City’s parkland standards to this projected population growth to estimate the additional parkland, improvements, and funding needed during the seven-year planning period. Since the amount of development occurring in subdivisions is unknown at this time, the table presents two scenarios:
all residential development being occurring in subdivisions (Quimby), and all residential development occurring outside of subdivisions (Mitigation Fee Act).
The subdivision scenario applies the Quimby Act standard to parkland acquisition and the City’s existing 1.97-acre standard to park improvements. The Mitigation Fee Act scenario applies the
1.97-acre standard to both land acquisition and improvements.
As shown in Table 9, projected growth will require the City to acquire between 4.71 and 7.18 acres of parkland and improve approximately 4.71 acres. The estimated cost ranges from $20.74 million to $27.96 million, depending on the mix of future residential development subject to each law. This is a planning-level estimate and is not used to calculate the fee charged to an individual project. Instead, it allows the City to compare the facilities needed to serve projected growth with its planned park projects.
City of Cypress Park Development Impact Fee Nexus Study 13 Table 9: Parkland Needed to Serve Projected Growth, 2026-2033 Calculation Formula
All Growth in
Qualifying
Subdivisions
All Growth Subject
to Mitigation Fee
Act
Projected New Residents A 2,392 2,392
Park Land Acquisition
Parkland Standard
(acres per 1,000 residents)
B 3.00 1.97
Park Acres to be Acquired C = A × B ÷ 1,000 7.18 4.71
Land Acquisition Cost per Acre D 2,920,600 2,920,600
Total Cost of Land Acquisition E = C × D $ 20,970,000 $ 13,756,000 Park Improvements
Park improvement standard
(acres per 1,000 residents)
F 1.97 1.97
Park Acres to be Improved G = A × F ÷ 1,000 4.71 4.71
Improvement Cost per Acre H 1,483,294 1,483,294
Total Cost of Park Improvements I = G × H $ 6,986,000 $ 6,986,000 Total Estimated Cost E + I $ 27,956,000 $ 20,742,000
Note: Totals have been rounded to the thousands.
Sources: Tables 1, 4 and 5.
Capital Improvement Program
Mitigation Fee Act revenue may be used only to acquire parkland or construct capacity-expanding park improvements needed to serve new development. It may not fund routine maintenance or costs attributable to existing deficiencies. Quimby Act in-lieu fee revenue may be used to acquire new or rehabilitate existing neighborhood and community park and recreation facilities serving the applicable subdivision that paid the fees.
Table 10 presents the City’s seven-year Capital Improvement Program for parks and recreation facilities. The seven-year period corresponds with the planning period used in this study. Projects identified as Mitigation Fee Act eligible expand park capacity to serve new development; projects limited to routine maintenance or rehabilitation are not eligible for Mitigation Fee Act funding. The City has identified approximately $22.7 million in capacity-expanding park projects, which demonstrates that the City has sufficient capacity expanding needs to spend the projected Mitigation Fee Act fee revenue identified in Table 9.
City of Cypress Park Development Impact Fee Nexus Study 14 Table 10: 26-27 CIP - 7-year Capital Improvement Program FY26/27 FY27/28 FY28/29 FY29/30 FY30/31 FY31/32 FY32-33 Total MFA Eligible Quimby Eligible Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 7 Years Costs Costs Baroldi Sycamore Park Expansion $ - $2,000,000 $ - $ - $ - $ - $ - $ 2,000,000 $ 2,000,000 $ 2,000,000 Community Center Facility Improvements - - 500,000 - - - - 500,000 500,000 500,000 Facility Exterior Door Replacements - 200,000 - - - - - 200,000 - 200,000 Lexington Park Athletic Fields - - - - 4,000,000 - - 4,000,000 4,000,000 4,000,000 Park Amenity Enhancements (City-wide) - - - - - 300,000 - 300,000 300,000 300,000 Park and Facility Security Improvements 150,000 75,000 75,000 75,000 - - - 375,000 375,000 375,000 Park Irrigation Master Plan and Improvements 200,000 200,000 200,000 200,000 200,000 200,000 200,000 1,400,000 1,400,000 1,400,000 Park Playground Equipment Replacement 750,000 550,000 1,000,000 600,000 900,000 700,000 900,000 5,400,000 - 5,400,000 Park Playground Surfacing Sealing & Repairs 65,000 65,000 35,000 75,000 50,000 50,000 50,000 390,000 - 390,000 Park Restroom Rehabilitation - - 75,000 75,000 75,000 125,000 - 350,000 - 350,000 Park Trees Replacement 50,000 50,000 55,000 55,000 55,000 60,000 60,000 385,000 - 385,000 Parking Lot Seal Coat 30,000 40,000 200,000 100,000 75,000 250,000 275,000 970,000 - 970,000 Parks District Facilities Condition Assessment 50,000 - - - - - - 50,000 - 50,000 Picnic Shade Structure Repairs/Replacement 125,000 125,000 375,000 25,000 25,000 25,000 250,000 950,000 - 950,000 Sports Court Resurfacing - 100,000 - 50,000 - - 150,000 300,000 - 300,000 Sports Field Improvements 200,000 - 50,000 - 50,000 - - 300,000 300,000 300,000 Community Center Furniture and Workstations - 300,000 - - - - - 300,000 300,000 300,000 Senior Center Building Improvements - - 250,000 - - 50,000 - 300,000 300,000 300,000 Parkland Acquisiton and Improvement - - 13,211,682 - - - - 13,211,682 13,211,682 13,211,682 Total $1,620,000 $3,705,000 $16,026,682 $1,255,000 $5,430,000 $1,760,000 $1,885,000 $31,681,682 $22,686,682 $ 31,681,682 Source: City of Cypress.
15 4. Implementation
Adoption of the Study and Fees
Before adopting the proposed Mitigation Fee Act fees, the City Council must adopt this nexus study at a public hearing noticed at least 30 days in advance. Supporting fee data must be available to the public at least 10 days before the meeting. The City Council must adopt the fees by ordinance or resolution, and the fees may take effect no sooner than 60 days after final action.
Inflation Adjustment and Periodic Updates
The City should annually adjust the adopted fees to reflect changes in facility costs. The California Construction Cost Index is recommended for annual inflation adjustments. Both increases and decreases in the index should be reflected in the adjusted fee.
Inflation adjustments do not replace a comprehensive update of the nexus study. The City should update the study when significant changes occur in development projections, park standards, facility costs, or planned projects. State law requires nexus studies to be updated at least once every eight years.
Fee Accounting
Quimby Act fees and Mitigation Fee Act fees should be deposited into separate restricted accounts because they are imposed under different legal authorities and are subject to different requirements.
Mitigation Fee Act revenue, including any interest earned, must be maintained in a separate capital facilities account and used only for the purposes for which it was collected. Quimby Act revenue must be separately accounted for and used in accordance with the Quimby Act and the City’s implementing ordinance.
Reporting Requirements
The City must prepare an annual report for each Mitigation Fee Act account within 180 days after the end of the fiscal year. The report must identify the account balance, fees and interest received, expenditures, funded projects, transfers, refunds, and other information required by Government Code section 66006. The City Council must review the report at a public meeting.
For unspent Mitigation Fee Act revenue, the City must also make the findings required by Government Code section 66001 every five years. Quimby Act fees are subject to separate expenditure and reporting requirements.
Table 11 summarizes the applicable annual and five-year reporting requirements.
Programming Revenue Through the CIP
The City’s Capital Improvement Program identifies planned park projects, estimated costs, anticipated timing, and available funding. Incorporating eligible projects into the Capital Improvement Program helps document how the City intends to use fee revenue to serve new development.
The City may modify the scope of a planned project or substitute another project if the expenditure remains consistent with the purpose of the fee and serves the demand created by City of Cypress Park Development Impact Fee Nexus Study 16 new development. Material changes to project costs, park standards, development projections, or planned facilities should prompt the City to evaluate whether the fees and supporting nexus study should be updated.
City of Cypress Park Development Impact Fee Nexus Study 17 Table 11: Mitigation Fee Act - Annual and Five-year Administrative Requirements CA Gov't Code
Section Timing Reporting Requirements1
Recommended
Fee Adjustment
66001.(d)
The fifth fiscal year following the
first deposit into the account or
fund, and every five years
thereafter
(A) Identify the purpose to which the fee is to be put. (B) Demonstrate a reasonable relationship between the fee and thepurpose for which it is charged.
(C) Identify all sources and amounts of funding anticipated tocomplete financing in incomplete improvements.
(D) Designate the approximate dates on which supplemental funding is expected to be deposited into the appropriate account or fund.
Comprehensive
Update
66006. (b) Within 180 days after the last
day of each fiscal year
(A) A brief description of the type of fee in the account or fund. (B) The amount of the fee.
(C) The beginning and ending balance of the account or fund. (D) The amount of the fees collected and the interest earned. (E) An identification of each public improvement on which fees were expended including share funded by fees.
(F) (i) An identification of an approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement and the public improvement remains incomplete.
(ii) An identification of each public improvement identified in a previous report pursuant to clause (i) and whether construction began on the approximate date noted in the previous report.
(iii) For a project identified pursuant to clause (ii) for which construction did not commence by the approximate date provided in the previous report, the reason for the delay and a revised approximate date that the local agency will commence construction.
(G) A description of any potential interfund transfers. (H) The amount of refunds made (if any).
Inflationary
Adjustment
1 Edited for brevity. Refer to the government code for full description.
Sources: California Government Code §66001 and §66006.
18 5. Mitigation Fee Act Findings
Government Code section 66001 requires the City to make findings demonstrating a reasonable relationship between the proposed fee, the development charged the fee, and the facilities funded by the fee. The required findings are summarized below and supported by the analysis in Chapters 2 and 3.
Purpose of the Fee
The purpose of the fee is to fund the parkland and recreational facilities needed to serve new residential development. The fee ensures that new development contributes its proportionate share of facility costs without reducing the level of service currently provided to existing residents.
Use of Fee Revenue
Fee revenue will be used to acquire parkland and construct or improve park and recreational facilities needed to serve new residential development. Eligible projects are identified in the City’s seven-year Capital Improvement Program and may include other park projects that are consistent with the purpose and findings of this study.
The City may revise the planned projects as needs and circumstances change, provided that fee revenue continues to be used for facilities that serve new development. Material changes to project costs or the allocation of costs to new development should be reflected in an updated fee calculation.
Benefit Relationship
New residential development adds residents who will use the City’s park and recreational facilities. Fee revenue will be used to expand or improve the City’s park system so that it can accommodate the additional demand. Therefore, there is a reasonable relationship between the use of the fee and the residential development charged the fee.
Burden Relationship
Population growth resulting from new residential development creates additional demand for parkland and park improvements. This demand is measured using the City’s existing standard of
1.97 acres of parkland per 1,000 residents. Applying the existing standard ensures that new development funds only the facilities needed to serve its residents and is not charged for existing deficiencies.
Chapter 2 describes projected residential growth, and Chapter 3 documents the City’s existing park standard and resulting facility needs.
Proportionality
The fee is calculated by converting the cost of serving each new resident into a fee per square foot of residential development. The calculation accounts for the City’s average number of residents per dwelling unit and average dwelling-unit size. Larger residential units therefore pay a proportionately higher fee than smaller units.
City of Cypress Park Development Impact Fee Nexus Study 19 This methodology establishes a reasonable relationship between the amount charged to a development project and its proportionate share of park facility costs. Chapter 3 presents the supporting calculations and maximum justified fee schedule.
EXHIBIT B
Fiscal Year 2026-2027 Quimby and Park Impact Fee Schedule Fee Category Fee per Habitable Square
Foot1
Quimby Fee – Residential Subdivisions Only2 $23.44
Park Development Impact Fee – All Other Residential
Development3
$17.41
1 Fees are assessed on habitable gross square footage of new residential units. Areas such as garages storerooms, and mechanical rooms are not considered habitable areas.1 2The Quimby Act fee shall apply to residential subdivisions subject to Government Code Section 66477 and the City’s applicable land dedication and in-lieu fee requirements. 3 The park development impact fee shall apply to new residential development that is not subject to the City’s Quimby Act land dedication or in-lieu fee requirements. The fee shall be imposed pursuant to the Mitigation Fee Act
1 Fees are assessed on Habitable gross square footage of new residential units only and areas such as garages and storeroom, and mechanical rooms are not considered Habitable areas. 2 The Quimby Act fee shall apply to residential subdivisions subject to Government Code Section 66477 and the City’s applicable land dedication and in-lieu fee requirements. 3 The park development impact fee shall apply to new residential development that is not subject to the City’s Quimby Act land dedication or in-lieu fee requirements. The fee shall be imposed pursuant to the Mitigation Fee Act
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CYPRESS,
CALIFORNIA, REPEALING ARTICLE VI AND ADDING A NEW ARTICLE XII ENTITLED “PARK AND RECREATIONAL FACILITIES FEES AND IMPROVEMENTS” TO CHAPTER 25 OF THE CYPRESS MUNICIPAL
CODE TO ESTABLISH PARKLAND DEDICATION REQUIREMENTS AND
PARK FEES FOR RESIDENTIAL DEVELOPMENT
WHEREAS, cities may apply fees for proposed developments to cover the cost of public facilities by way of its police power as codified in the California Constitution Article XI Section 7;
WHEREAS, California Government Code §§ 66000 et seq. ("Mitigation Fee Act") authorizes the City to collect fees in connection with approval of a development project for the purpose of defraying all or a portion of the cost of public facilities related to the development project;
WHEREAS, the Quimby Act, Government Code § 66477, authorizes the City to require residential subdivisions to dedicate land for park and recreational purposes, pay a fee in lieu of dedicating land, or provide a combination of land and fees, and WHEREAS, development impact fees must be supported by a nexus study which calculates the purpose of the fee, the use to which it will be put, the relationship between the fee's use and the development, and establish the need for the fee pursuant to the Mitigation Fee Act;
WHEREAS, future residential growth creates additional demand on the City's infrastructure for recreational facilities;
WHEREAS, the City’s General Plan contains goals and policies addressing parks and recreation, including the provision, maintenance, and improvement of park and recreational facilities necessary to serve existing and future residents; WHEREAS, on October 13, 2026, prior to establishing the fees authorized by this Ordinance, the City Council adopted Resolution No. _____ approving the City of Cypress Park Development Impact Fee Nexus Study prepared by Willdan Financial Services, which establishes the reasonable relationships required by Government Code § 66001 and supports the amount of the Park Development Impact Fee; and WHEREAS, the City provided at least 30 days’ notice of the public hearing on the 2026 Nexus Study in accordance with Government Code §66016.5 and complied with all other applicable notice and public-information requirements, including Government Code Section 66019.
THE CITY COUNCIL OF THE CITY OF CYPRESS DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1.The City Council hereby specifically finds that all the facts set forth in the above Recitals are true and correct and are incorporated herein as findings of the City Council.
SECTION 2. CEQA.The City Council finds that adoption of this Ordinance is not a project subject to the California Environmental Quality Act pursuant to Section 15378(b) (4) of the CEQA Guidelines because the Ordinance establishes governmental funding mechanisms and does not commit the City to any specific project that may result in a potentially significant physical impact on the environment. Any future park or recreational facility funded pursuant to this Ordinance shall be subject to applicable environmental review before approval.
SECTION 3. Article VI Park and Recreational Facilities of the Cypress Municipal Code is repealed in its entirety.
SECTION 4. Article XII titled Park and Recreational Facilities Fees and Improvements is hereby added to the Cypress Municipal Code as set forth in Exhibit A which is attached hereto and incorporated by reference.
SECTION 5. If any part of this Ordinance or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Ordinance are severable.
SECTION 6. Effective date. This Ordinance shall become effective January 1, 2027.
Section 7. Posting. The City Clerk shall certify the passage and adoption of this Ordinance, and shall cause the same to be posted in at least three public places designated by resolution of the City Council, and shall cause this Ordinance and its certification, together with proof of posting, to be entered into the Book of Ordinances of this City.
FIRST READ at a regular meeting of the City Council of said City held on the 13th day of October, 2026 and finally adopted and order posted at a regular meeting held on the 27th day of October, 2026.
PASSED, APPROVED and ADOPTED this 27th day of October, 2026.
MAYOR OF THE CITY OF CYPRESS
ATTEST:
CITY CLERK OF THE CITY OF CYPRESS
STATE OF
CALIFORNIA) COUNTY
OF ORANGE) ss
I, LISA BERGLUND, City Clerk of the City of Cypress, DO HEREBY CERTIFY THAT THE FOREGOING Ordinance was duly adopted by said City Council at a regular meeting held on the 27th day of October 2026, by the following roll call vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
CITY CLERK OF THE CITY OF CYPRESS
EXHIBIT A
ARTICLE XII
PARK AND RECREATIONAL FACILITIES FEES AND IMPROVEMENTS
§ 25-84. Purpose.
(a) The purpose of this article is to establish requirements to mitigate the impacts of new residential development on the City’s park and recreational facilities. This article establishes:
(1) A requirement for the dedication of land, payment of a fee in lieu of dedication, or a combination of both, for residential subdivisions subject to the Quimby Act, Government Code § 66477; and
(2) A park development impact fee for residential development that is not subject to the dedication or in-lieu fee requirements of the Quimby Act. (b) The Quimby Act requirements established by this article are intended to provide park and recreational facilities necessary to serve the future residents of residential subdivisions. Land dedicated and fees collected pursuant to those requirements shall be used only for the purposes authorized by Government Code § 66477. (c) The park development impact fee established by this article is intended to mitigate the increased demand for park and recreational facilities created by residential development that is not subject to the Quimby Act requirements. Revenue from the fee shall be used to fund the acquisition, development, construction, expansion, or improvement of park and recreational facilities needed to serve such development, as identified in the applicable nexus study and other adopted City plans and documents. (d) The City Council finds that the requirements established by this article are consistent with the General Plan and has considered their effects on the City’s housing needs in accordance with Government Code § 65913.2.
(e) The City shall administer the parkland dedication requirements, fees, credits, revenues, accounts, expenditures, notices, reports, findings, protests, and refunds established by this article in accordance with all applicable provisions of the Subdivision Map Act and the Mitigation Fee Act, including Government Code §§ 66001, 66006, 66007, 66020, and 66477, as those provisions may be amended.
§ 25-85. Dedication or fees required for residential subdivisions § 25-85.01. Applicability.
(a) Except as provided in this section, the requirements of this section apply to each residential subdivision, including the residential component of a mixed-use subdivision, for which approval of a tentative map or parcel map is required under the Subdivision Map Act.
(b) Consistent with Government Code § 66477, the requirements of this section apply only when the ordinance establishing those requirements has been in effect for at least 30 days before the filing of the applicable tentative map or parcel map. (c) The requirements of this section do not apply to:
(1) Commercial or industrial subdivisions; or
(2) Condominium projects or stock cooperatives consisting solely of the subdivision of airspace in an existing apartment building that is more than five years old, when no new dwelling units are added.
(d) A dwelling unit subject to the land dedication or in-lieu fee requirements of this section shall not also be subject to the park development impact fee established by section 25- 86 of this article.
§ 25-85.02. Parkland standard.
The public interest, convenience, health, welfare, and safety require that three acres of neighborhood and community parkland be provided for each 1,000 residents of a residential subdivision. The amount of land required to be dedicated, the amount of any fee required to be paid in lieu of dedication, or a combination thereof shall be determined in accordance with this section and Government Code § 66477. § 25-85.03. Average household size.
For purposes of calculating the required parkland dedication or fee in lieu thereof, the average number of persons per household shall be based on the most recent available federal census or a census taken pursuant to Chapter 17, commencing with Section 40200, of Part 2 of Division 3 of Title 4 of the Government Code.
§ 25-85.04. Amount of land to be dedicated.
When dedication of land is required pursuant to this section and Government Code § 66477, the amount of land to be dedicated shall be determined as follows:
(a) The projected population of the residential subdivision shall be calculated by multiplying the number of new dwelling units shown on the approved or conditionally approved tentative map or parcel map by the applicable average number of persons per household established pursuant to section 25-85.03. (b) The projected population calculated pursuant to subsection (a) shall be multiplied by 130.68 square feet, representing the parkland standard of three acres per 1,000 residents, to determine the required area of land to be dedicated. § 25-85.05. Amount of fee in lieu of land dedication and automatic adjustment. (a) The fee required in lieu of land dedication shall be calculated by multiplying the amount of land otherwise required to be dedicated pursuant to section 25-85.04 by the fair market value per acre of comparable unimproved land at the time of final map approval.
The fair market value shall be supported by a current appraisal or other appropriate land valuation evidence. The City Council shall establish the fee by resolution, include it in the City’s Master Fee Schedule, and ensure that it conforms to Government Code section 66477, as it may be amended.
(b) Automatic annual adjustment. The fees imposed by this section shall be adjusted on an annual basis at the beginning of each fiscal year by applying the percentage change of the Los Angeles Construction Cost Index (CCCI) for the prior 12-month period ending on April 30 published by Engineering News-Record (ENR). Such CPI adjustments shall be effective July 1 for all subsequent years, effective July 1, 2028. § 25-85.06. Determination of land dedication, payment of an in-lieu fee, or both.
The procedure for determining whether a subdivider shall dedicate land, pay a fee in lieu of dedication, or provide a combination of both shall be as follows:
(a) Subdivider’s proposal. At the time of filing a tentative map, including a tentative parcel map, the subdivider shall indicate whether the subdivider proposes to dedicate land for park and recreational purposes, pay a fee in lieu of dedication, or provide a combination of both. If the subdivider proposes to dedicate land, the proposed land shall be identified on the tentative map.
(b) Determination. In determining whether to require the dedication of land, payment of an in-lieu fee, or a combination of both, the City Council shall consider the following factors:
(1) The goals, policies, and standards of the City’s General Plan and applicable parks and recreation planning documents;
(2) The location, accessibility, and capacity of existing and planned park and recreational facilities serving the subdivision;
(3) The topography, geology, access, location, size, shape, and suitability of land within the subdivision that may be available for dedication; and (4) Whether dedication of land, payment of an in-lieu fee, or a combination of both would best serve the park and recreational needs of the future inhabitants of the subdivision.
(c) Final map requirements. Any required dedication shall be completed in accordance with the Subdivision Map Act. Any required in-lieu fee shall be paid before or concurrently with recordation of the final tract map or parcel map. If credit is requested for private park or recreational facilities, any required open-space covenant or other instrument securing the continued use and maintenance of those facilities shall be approved by the City before recordation and recorded concurrently with the final map or parcel map.
(d) Subdivisions of less than 50 parcels. Only the payment of an in-lieu fee may be required for a subdivision containing 50 parcels or fewer. Notwithstanding the foregoing, land dedication may be required for a condominium project, stock cooperative, or community apartment project containing more than 50 dwelling units, even if the project contains 50 parcels or fewer.
§ 25-86. Park development impact fee required for other residential development. § 25-86.01. Applicability.
(a) Except as provided in subsection (b), the provisions of this section apply to residential development that creates one or more new dwelling units and is not subject to the parkland dedication or in-lieu fee requirements of section 25-85. (b) The park development impact fee established by this section does not apply to:
(1) A dwelling unit subject to the parkland dedication or in-lieu fee requirements of section 25-85;
(2) An accessory dwelling unit or junior accessory dwelling unit; or (3) The conversion of an existing residential building to condominiums, stock cooperatives, or another form of ownership when the conversion does not create any new dwelling units.
§ 25-86.02. Park development impact fee amount and automatic adjustment. (a) Each residential development subject to this section shall pay a park development impact fee calculated by multiplying the habitable square footage of each proposed dwelling unit by the fee rate per square foot established by resolution of the City Council. The fee shall be established in accordance with the Mitigation Fee Act, Government Code §§ 66000 et seq., supported by the applicable nexus study, and included in the City’s Master Fee Schedule. The fee imposed shall not exceed the amount supported by the applicable nexus study.
(c) Automatic annual adjustment. The fees imposed by this section shall be adjusted on an annual basis at the beginning of each fiscal year by applying the percentage change of the Los Angeles Construction Cost Index (CCI) for the prior 12-month period ending on April 30 published by Engineering News-Record (ENR). Such CPI adjustments shall be effective July 1 for all subsequent years, effective July 1, 2028. (b) The park development impact fee imposed pursuant to this section shall be due and payable at the time authorized by Government Code § 66007, as it may be amended, and other applicable law.
§ 25-87 Credits for parkland, recreational facilities, and private open space. (a) An applicant may request a credit for provided public parkland, recreational facilities, and/or private open space. An applicant requesting a credit against a requirement imposed under section 25-85 or 25-86 shall submit documentation establishing the legal and factual basis for the requested credit and its proposed value. The applicant bears the burden of establishing entitlement to and the amount of the credit. No credit shall be granted for land, facilities, improvements, or costs credited or reimbursed under another City requirement or agreement.
(b) Quimby Act credits.
(1) For a common interest development, as defined in Civil Code § 4100, the City Council may grant a credit against the land dedication or in-lieu fee required under section 25-85 for the value of private open space within the development that is usable for active recreational purposes. The City Council shall determine the amount of the credit in accordance with Government Code § 66477. (2) If a subdivider provides park or recreational improvements or equipment on land dedicated to the City pursuant to section 25-85, the verified value of the improvements and equipment shall be credited against the required dedication or in-lieu fee, provided that the improvements and equipment have been approved by the City in advance.
(c) Park development impact fee credits. The City Council may grant a credit against the park development impact fee imposed under section 25-86 for parkland, recreational
facilities, or improvements provided by the applicant if the City Council finds that they reduce the need for, or cost of, the public facilities included in the applicable nexus study. The credit shall not exceed the lesser of:
(1) The applicant’s verified cost of providing the eligible land, facilities, or improvements; or
(2) The portion of the park development impact fee attributable to the facilities or impacts addressed by the applicant’s contribution.
(d) Private open space or recreational facilities are eligible for consideration under this section only if the City Council finds that:
(1) The area is not a yard, court, setback, or other open space required by applicable zoning or building regulations and has not been required or credited as part of another City approval;
(2) Private ownership and continuing maintenance are adequately provided through a homeowners association or other enforceable arrangement acceptable to the City;
(3) The area is permanently restricted to park or recreational use through a recorded covenant running with the land that may not be amended or terminated without the City’s written consent;
(4) The area is reasonably suitable and available for active recreational use by the residents of the development, considering its size, shape, topography, access, location, amenities, and proposed programming;
(5) The facilities are consistent with the General Plan and any applicable park or recreation plan and have received all required City approvals; and (6) The requested credit reflects the extent to which the private facilities reduce the development’s demand for public park and recreational facilities. (e) No credit shall become final until the land has been dedicated, the facilities or improvements have been completed and accepted, or the applicant has provided security acceptable to the City guaranteeing their completion. § 25-88. Credit for existing residential development.
(a) When a residential development project replaces one or more lawfully established dwelling units, the requirements imposed under this article shall be calculated based on the net increase in residential development. For purposes of the Quimby Act requirements, the credit shall be based on the number of existing dwelling units. For purposes of the Park Development Impact Fee, the credit shall be based on the
applicable square footage of the existing dwelling units. (b) A credit shall be granted only for dwelling units existing when the development application is submitted or demolished in connection with the proposed development.
The applicant shall provide documentation satisfactory to the City establishing the lawful existence and applicable square footage of the dwelling units. (c) A credit may not exceed the dedication requirement or fee otherwise due and may not be transferred to another property or result in a refund. § 25-89. Deposit and use of fees.
(a) Fees collected pursuant to section 25-85 and fees collected pursuant to section 25-86 shall be deposited into separate accounts or funds established for each fee program.
The fees shall not be commingled with each other or with other City revenues, except for purposes of temporary investment. Interest earned on each account or fund shall be deposited into that same account or fund and used only for the purposes for which the underlying fees were collected.
(b) Quimby Act in-lieu fees collected pursuant to section 25-85 shall be used only to develop new or rehabilitate existing neighborhood or community park or recreational facilities serving the subdivision from which the fees were collected, except when use in another neighborhood is expressly authorized in accordance with Government Code section 66477.
(c) The City shall develop and maintain a schedule specifying how, when, and where land dedicated and fees collected pursuant to section 25-85 will be used to develop or rehabilitate park and recreational facilities serving the applicable subdivision. (d) Park development impact fees collected pursuant to section 25-86 shall be used only to acquire, develop, construct, expand, or improve park and recreational facilities needed to serve new residential development, as identified in the applicable nexus study, Capital Improvement Program, General Plan, specific plan, budget, or other adopted public document. The fees shall not be used for costs attributable to existing deficiencies, except as permitted by Government Code § 66001. (e) Subject to the limitations of subsections (b) and (d), fee revenue may be used to reimburse the City for eligible costs previously advanced from other City funds to acquire, construct, expand, or improve an identified park or recreational facility. (f) The City may reimburse a developer for the eligible cost of constructing or providing a City-approved park or recreational facility that exceeds the developer’s project-specific obligation only pursuant to a written reimbursement agreement approved by the City.
Any reimbursement shall be limited to the portion of the facility eligible to be funded by the applicable fee and shall not duplicate any credit granted to the developer.
§ 25-90. Findings and refunds.
(a) Quimby Act in-lieu fees, including interest earned, shall be committed and refunded when required and in the manner prescribed by Government Code § 66477. (b) Except as described in this section, upon application of the property owner, the City must refund that portion of the park impact fee which has been on deposit over five years and which is unexpended and uncommitted. The refund will be made to the then-current owner or owners of lots or units of the development project or projects, provided that the then-current owner submits an application for a refund to the City within 180 days before the five-year period expires.
(c) If fees in the park impact fee account are unexpended or uncommitted, starting with the fifth fiscal year after the first deposit into the account or fund, and every subsequent five years, the City Council must make the findings required by Government Code§ 66001(d) for maintaining funds on deposit. If the Council makes such findings, the fees are exempt from the refund requirement.
(d) The City may issue refunds through direct payment; offsetting the refund against other impact fees due for development projects by the owner on the same or other property; or otherwise by agreement with the owner. If the costs of refunding the impact fees would exceed the amount refunded, the City may instead comply with Government Code§ 66001(f).
§ 25-91. Protests, Appeals, and Audits.
Any person seeking to protest the imposition of a parkland dedication requirement, in-lieu fee, or combination thereof under section 25-85, or a park development impact fee under section 25-86, shall comply with Government Code sections 66020 et seq., as those provisions may be amended. The City shall provide any notice required by Government Code section 66020. Nothing in this section shall extend any statutory deadline or excuse compliance with any requirement for submitting a protest or commencing a legal action.