CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
2/14/2022
1 SUBJECT:
Resolution to Update the Park Development Impact Fee and Ordinance Establishing Updated Impact Fees and Quimby Act Dedication Requirements and In Lieu Fees RECOMMENDED ACTION:
Move to:
1. Adopt resolution to update the Park Development Impact Fee within the City of Pacifica; and
2. Move to Introduce by title only and waive first reading of an “Ordinance of the City Council of the City of Pacifica, California repealing Chapter 19 of the Pacifica Municipal Code and replacing it with Chapter 19 (Park Facilities Impact Fee); repealing Section 10-
1.803 (Park Land Dedication) of the Pacifica Municipal Code and replacing it with Section 10-1.803 (Park Land Dedication) to establish updated Impact Fees and Quimby Act dedication requirements and in lieu fees imposed on New Development in the City of Pacifica”; and finding the Ordinance exempt under the California Environmental Quality Act (“CEQA”).
STAFF CONTACT:
Sam Bautista, P.E., Deputy Director of Public Works
[email protected]
(650) 738-3767
Tina Wehrmeister, Assistant City Manager/Planning Director [email protected]
(650) 738-7409
Lisa Petersen, P.E., Director of Public Works
[email protected]
(650) 738-3767
BACKGROUND/DISCUSSION:
The City of Pacifica has a park impact fee program to ensure that new development pays the capital costs associated with growth. In the case of parks, these impacts fees would apply to the most common development type in Pacifica currently - incremental growth associated with additions and new single-family homes. The proposed fee update would also apply to other types of new development including multi-family housing and subdivisions.
Pacifica’s park impact fees were last adopted in 2012 (Attachment “A”) and need to be updated to reflect service demand and incorporate best available information. Currently, park impact fees generate an average of $150,352 per year which is not sufficient to maintain the City’s existing level of service for park facilities and serve future growth.
In California, local governments can impose two types of development impact fees for funding Pacifica City Council 2
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parks and recreational facilities. Under the Quimby Act (Government Code § 66477), local governments may require the dedication of land for parks or the payment of fees in-lieu of land dedication as a condition of subdivision map approval. To fund the construction of new park and recreational facilities, local governments may also impose an AB1600 Park Impact Fees by following the guidelines set forth by the Mitigation Fee Act (Government Code § 66000). On March 26, 2012, City Council adopted Resolution No. 09-2012 establishing the need for a Parkland Dedication In-Lieu Fee (Quimby Act) and Park Facilities Impact Fee, within the City of Pacifica (Attachment “A”). The City prepared a Park Facilities Impact Fee Study to establish the nexus between the imposition of new citywide Park Impact Fees and the estimated reasonable cost of providing the service for which the fee is charged. The Park Impact Fee program is designed to ensure that new development subject to the City’s Quimby program pays their fair of the cost of land acquisition for parks (in order to maintain the City’s existing ratio of parks-topopulation) and their fair share of the cost of development of new parks, trails and open space.
Quimby Act Fee
Local governments in California provide a critical role in the effort to set aside parkland and open space for recreational purposes. Cities and counties have been authorized since the passage of the 1975 Quimby Act to pass ordinances requiring that developers set aside land, donate conservation easements, or pay fees for park improvements. Revenues generated through the Quimby Act cannot be used for the operation and maintenance of park facilities.
The goal of the Quimby Act was to require developers to help mitigate the impacts of growth from new development. The Quimby Act gives authority for passage of land dedication ordinances only to cities and counties. The Quimby Act only applies to residential subdivision developments. The fees must be paid and land conveyed directly to the local public agencies that provide park and recreation services communitywide. The fee is based on the cost of land in the community and the City’s current park service standards, which exceeds five (5) park acres per one thousand (1,000) residents standard.
Park Impact Fee
An impact fee is a fee that is imposed by a local government on a new or proposed development project to pay for all or a portion of the costs of providing public services to the new development. Impact fees are a charge on new development to help fund and pay for the construction or needed expansion of offsite capital improvements. Projects subject to this fee include new single-family homes and additions, two of the most common development types in Pacifica. A park impact fee is based on maintaining the current level of park service for a community, cost of land, and anticipated population growth.
DISCUSSION:
According to the population projections provided by the Association of Bay Area Governments (ABAG) and current population estimates, the City will grow to a total of 39,890 residents by 2040. In order to maintain the City’s existing ratio of parks-to-population, development impact fees are needed to fund new development’s share of the cost of park and recreational facilities.
The fee levels do not depend on the growth projections. The projections are used to estimate fee revenue. The fees are driven by the cost of parks and the existing parkland standards. The goal of this effort is to ensure there is adequate funding to acquire land, build new parks, and improve existing parks to meet the demand of the increased population.
Currently, the City imposes the Quimby Act and Mitigation Fee Act Fees depending on the type of development. Technically, there are three park-related fees:
• A Quimby Act Fee in-lieu of land dedication. This fee is payable by residential development occurring in subdivisions.
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• A Mitigation Fee Act Fee for land acquisition. This fee is payable by residential development not occurring in subdivisions.
• A Mitigation Fee Act Fee for parkland improvements. This fee is payable by all residential development.
A development project pays either the Quimby Act Fee in-lieu of land dedication, or the Mitigation Fee Act Fee for land acquisition, not both. The Quimby and Mitigation Fee Act landrelated fees are the exact same amount, and everyone pays the Mitigation Fee Act improvements fee, therefore, the total fee is the same for everyone. The nuance is that those subject to Quimby can dedicate the land instead of paying the fee, in which case, they would still be responsible for the Mitigation Fee Act improvement fee.
These fees are a funding source for park improvements in Pacifica. Recently, the fees have been used to fund a portion of the construction of Community Center Park and Fairmont Park, in which the footprint of the play structures were increased in both parks. It is anticipated that a portion of funding used to install new expanded play structures at Imperial Park, Skyridge Park, Marvilla Park and Brighton Park will be provided by these fees. Without these fees, there would be no continuing money source for new or major improvements to Pacifica’s parks, athletic fields, and open space. The City plans to use park facilities fee revenue to purchase parkland or construct improvements to add to the system of park and recreation facilities that serves new development. The City may only use impact fee revenue to provide facilities and intensify usage of existing facilities needed to serve new development. Fee revenue collected under the Quimby Act can also be used to rehabilitate park facilities, in addition to acquiring new parkland.
It is good practice to analyze and periodically update impact fees, and the City contracted with Willdan Financial Services to assist with the update (Attachment “B”). These fees are calculated based on cost of parkland (per acre) and cost of park improvement (per acre). In 2012, the costs of parkland and park improvements were $150,000 (per acre) and $411,000 (per acre), respectively. In December 2021, the costs of parkland and park improvements were $1,545,000 (per acre) and $1,350,000 (per acre), respectively. These increased costs result in higher calculated fees. The following table shows the current, updated Park Facilities Impact, and remodel/add bedroom fees:
Bedrooms Current Park Facilities
Impact Fee
Updated Park Facilities
Impact Fee
Remodel/Add
Bedroom
0 $0 $20,522
1 $3,702 $24,066 $3,544
2 $5,181 $36,764 $12,698
3 $6,416 $44,589 $7,825
4 $7,897 $50,938 $6,349
5 $9,130 $58,910 $7,972
Additional
Bedroom
+$1,481 +$7,972 $7,972
Bedroom Calculation
All fees are calculated based on the average number of people living in a dwelling unit in Pacifica. Occupant density assumptions ensure a reasonable relationship between the size of a development project, the increase in service population associated with the project, and the amount of the fee. Persons per bedroom assumptions ensure a reasonable relationship between the size of a dwelling unit and the residents, and therefore demand for public facilities.
For residential development, the fee is based on the number of bedrooms in each additional housing unit, so the fee schedule must convert service population estimates to these measures Pacifica City Council 4
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of bedrooms per dwelling unit and number of dwelling units in the project. The conversion is done with average household size factors that vary by bedrooms proposed in the dwelling unit and are established from the 2019 American Housing Survey, which estimates the persons per bedroom. The occupant densities are factors taken into consideration when calculating the fees. (Refer to Attachment “B”, Occupant Densities, Page 6) For residential remodels or bedroom additions, the fee is incremental. For example, if a homeowner wants to add a bedroom to their existing three-bedroom home, the homeowner would pay $6,349.
Staff recommends updating the new Park Development Impact Fee as shown in the table above. Should the City Council agree with the increased fee, staff recommends adopting the attached resolution to increase the fee and include it in the Fiscal Year 2021-22 Master Fee Schedule. Staff also recommends City Council consider including a construction cost escalation factor similar to other City fees (e.g., the Engineering News Record Construction Cost Index (CCI) for the San Francisco Bay Area) and adjust it automatically on an annual basis.
As a comparison, the following tables shows Park Impact Fees of cities on the Peninsula (based on a four-bedroom single family unit):
City Park Impact Fee
Pacifica (existing) $5,887
Pacifica (updated) $50,938
Half Moon Bay $7,764
Millbrae $55,522
San Mateo $29,598
Sunnyvale $87,120
As stated earlier in the report, the Mitigation Fee Act, contained in Government Code 66000 et seq., permits the City to impose development impact fees on new development for the purposes of funding the public facilities necessary to serve that new development, and California Government Code section 66477 (the “Quimby Act”) allows cities to require the dedication of land or to impose a requirement of the payment of fees in lieu thereof, or a combination of both, for park or recreation purposes as a condition of approval of a tentative or parcel map. The City’s Municipal Code contains outdated provisions regarding the City’s Park Facilities Impact Fee and Quimby Act dedication requirements and in lieu fees. As such, staff is bringing the attached Ordinance (Attachment “C”) to amend the City’s existing Code provisions and bring them into compliance with new state laws. In the future, the Council would be able to update the fees or change the amount of the fees via resolution without needing to adopt another ordinance.
ALTERNATIVE ACTION:
Should the City Council not adopt the resolution updating the Park Development Impact Fee, the acquisition of parkland and/or the design and construction of public park improvements would be unfunded or underfunded.
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
The updated park in-lieu fee is consistent with the following Council adopted Goal:
• Stewardship of City Infrastructure: The updated park in-lieu fee would assist the City in acquiring parkland and/or fund the design and construction of public park improvements that would promote a healthy environment and activities for Pacifica City Council 5
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residents and visitors.
FISCAL IMPACT:
Park in-lieu fees assist the City in providing adequate park facilities necessitated by new development. Staff’s evaluation does not result in a budgetary impact.
ORIGINATED BY:
Engineering
ATTACHMENT LIST:
Attachment "A" - Resolution No. 09-2012 (PDF)
Attachment "B" - Park Development Impact Fee Update (PDF) Attachment "C" - Quimby Act and Park Facilities Impact Fee Update Ordinance (DOCX) Pacifica City Council 6
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RESOLUTION NO. 22-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFICA SETTING UPDATED
CHARGES FOR THE PARK FACILITIES IMPACT FEE (PACIFICA MUNICIPAL CODE CHAPTER 19) AND QUIMBY ACT PARKLAND DEDICATION REQUIREMENTS AND IN
LIEU FEES IMPOSED ON NEW DEVELOPMENT IN THE CITY OF PACIFICA (PACIFICA MUNICIPAL CODE SECTION 10-1.803)
WHEREAS, the Pacifica Municipal Code (“PMC”) imposes upon new non-subdivision, residential development the requirement to pay a Park Facilities Impact Fee (PMC Ch. 19); and WHEREAS, Section 10-1.803 of the PMC also imposes a parkland dedication or in-lieu fee requirement on subdivision developments, pursuant to Government Code section 66477 (“the Quimby Act”), to help defray the impact of development on neighborhood and community parklands (“Quimby Act Fee”); and
WHEREAS, Title 8, Chapter 19 of the PMC empowers the City Council to establish the amount of the Park Facilities Impact Fee by resolution in accordance with a nexus study that demonstrates the reasonable relationship between the fee’s use and the type of development project on which the fee will be imposed and that demonstrates the reasonable relationship between the need for Park Facilities and the type of development projects on which the fee will be imposed; and
WHEREAS, the City contracted with Willdan Financial Services to perform studies for a proposed park development fee update to address both the Quimby Act Fee and Park Facilities Impact Fee.
WHEREAS, Willdan Financial Services prepared and submitted a Park Development Impact Fee Update, dated December 21, 2021, attached to the staff report accompanying this resolution as Attachment “B” and incorporated by reference (“the Fee Report”); and WHEREAS, the Fee Report (1) establishes a proposed amount and provides an evaluation of the need for an updated Park Facilities Impact Fee and establishes the nexus between the imposition of the new Park Facilities Impact Fee and the estimated reasonable cost of providing the service for which the fee is charged; and (2) establishes a proposed amount for a Quimby Act Fee and establishes the reasonable relationship between the imposition of the Quimby Act Fee and the use of the park and recreational facilities by the future inhabitants of the proposed subdivision; and
WHEREAS, the Fee Report substantiated the need for the update to the Park Facilities Impact Fee and the Quimby Act Fee; and
WHEREAS, the Fee Report identifies the City’s existing level of public parks service, identifies the proposed new level of service, and includes an explanation of why the new level of service is appropriate; and
WHEREAS, the Fee Report includes information that supports the City’s actions, as required by subdivision (a) of Section 66001; and
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WHEREAS, the Fee Report reviewed the assumptions of the nexus study supporting the existing Park Facilities Impact Fee and Quimby Fee and evaluated the amount of fees collected under the existing fees; and
WHEREAS, the City annually adopts a Capital Improvement Program for the development and maintenance of parks; and
WHEREAS, the capital improvement plan indicates the approximate location, size, time of availability, and estimates of cost for all facilities or improvements to be financed with the fees; and
WHEREAS, the Fee Report was presented to the Council along with this resolution, and is hereby adopted by Council; and
WHEREAS, the City Council determined that the Fee Report complies with California Government Code section 66000 et seq.; and
WHEREAS, the City desires to rescind and repeal all prior resolutions setting charges, fees, or dedication requirements for the Park Facilities Impact Fee and the Quimby Act Fee, and replace them with the updated fees provided in Exhibit 1; and WHEREAS, pursuant to Government Code sections 66016, 66016.5, 66018, and 6062a and the Pacifica Municipal Code, the City must adopt the updated Park Facilities Impact Fee only after notice and public hearing; and
WHEREAS, pursuant to Government Code section 6062a, a notice of a public hearing on the proposed fee schedule was published on February 2, 2022, and February 9, 2022, in the Pacifica Tribune, a newspaper of general circulation; and WHEREAS, pursuant to Government Code sections 66016 and 66016.5, notice of the time and place of the meeting, including a general explanation of the matters to be considered and a statement that required data is available was mailed at least 30 days prior to the meeting to those members of the public who filed a written request with the City; and WHEREAS, at least ten (10) days prior to the public hearing referenced above, the City made available for public inspection information required under government Code section 66000, et. seq.; and
NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Pacifica hereby rescinds and repeals all prior resolutions setting rates for the Park Facilities Impact Fee and the Quimby Act Fee and replaces them with the fees as shown in Exhibit 1, incorporated by this reference.
Section 1. Findings. The City Council finds and determines as follows:
a) The above recitals are correct and are material to this Resolution and are incorporated into this Resolution as findings of the City Council.
b) The fees proposed bear a reasonable relationship to the use of the park and recreational facilities by the future inhabitants of the new subdivisions. c) The Quimby Act Fee is calculated to fund acquisition of the same amount of land that would otherwise have been dedicated.
Section 2. Adoption of Fee Report. The City Council has approved and adopted the Fee Report and determined that it is consistent with the General Plan.
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Section 3. Exemption. Pursuant to Government Code section 65852.2(f)(2), the Park Facilities Impact Fee shall not apply to accessory dwelling units of less than 750 square feet.
Section 4. Effective Date. In accordance with Government Code section 66017, this Resolution shall be in full force and effect 60 days after its adoption and shall be published or posted as required by law.
Section 5. Validity. The above recitations are true and correct, are material to the adoption of this Resolution, and are incorporated herein by reference.
Section 6. Environmental review. The City Council finds that this Resolution is not subject to the California Environmental Quality Act (“CEQA”). This action is not a project within the meaning of the CEQA Guidelines Section 15378 and 15061(b)(3) as it has no potential for physical effects on the environment because it involves an adoption of certain fees and/or charges imposed by the City, does not commit the City to any specific project, and said fees and/or charges are applicable to future development projects and/or activities, each of which future projects and/or activities will be fully evaluated in full compliance with CEQA when sufficient physical details regarding said projects and/or activities are available to permit meaningful CEQA review (see CEQA Guidelines, Section 15004(b)(1)). Pursuant to CEQA Guidelines section 15378(b)(4), the creation of government funding mechanisms which do not involve any commitment to any specific project which may cause significant effect on the environment, is not defined as a “project” under CEQA. Therefore, approval of the fees and/or charges is not a “project” for purposes of CEQA, pursuant to CEQA Guidelines, Section 15378(b)(4); and, even if considered a “project” under CEQA, is exempt from CEQA review pursuant to CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility that approval of the fees and/or charges may have a significant effect on the environment.
Section 7. Severability. Should any section, subsection, paragraph, sentence, clause, or phrase of this Resolution be declared unconstitutional or invalid for any reason, such declaration shall not affect the validity of the remaining portions of this Resolution.
The City Council hereby declares that it would have passed this and each section, subsection, phrase, or clause thereof irrespective of the fact that any one or more sections, subsections, phrase, or clauses be declared unconstitutional on their face or as applied.
Section 8. The City Clerk shall certify the adoption of this Resolution and shall cause a certified Resolution to be filed in the Office of the City Clerk. • • • • •
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pacifica, California, held on the 14th day of February 2022, by the following vote:
AYES, Councilmembers:
NOES, Councilmembers:
ABSENT, Councilmembers:
ABSTAIN, Councilmembers:
Mary Bier, Mayor
ATTEST: APPROVED AS TO FORM:
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______________________________ ______________________________ Sarah Coffey, City Clerk Michelle Kenyon, City Attorney EXHIBIT 1
QUIMBY ACT AND PARK FACILITIES IMPACT FEE FEES
Parkland Dedication In-Lieu Fee (Quimby Act), May be increased by Council based on land cost
Bedrooms FY 21-22
0 $10,952
1 $12,843
2 $19,621
3 $23,796
4 $27,184
5 $31,439
Each after Five $4,254
Park Facilities Impact Fee (Mitigation Fee Act), Increase annually per CCI Bedrooms FY 21-22
0 $9,570
1 $11,223
2 $17,144
3 $20,793
4 $23,754
5 $27,471
Each after Five $3,718