agenda-report Update to the Park Development Impact Fee — Pacifica City Council, April 25, 2022

CITY OF PACIFICA

COUNCIL AGENDA SUMMARY REPORT
4/25/2022
1 SUBJECT:

Update to the Park Development Impact Fee
RECOMMENDED ACTION:

Move to:

1. Adopt resolution to update the Park Facilities Impact Fee and the Quimby Act Parkland In Lieu 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
Christian Murdock, AICP, Acting Planning Director
[email protected]
(650) 738-7341
Lisa Petersen, P.E., Director of Public Works
[email protected]
(650) 738-3767
BACKGROUND:

On February 14, 2022, staff brought this item to the City Council for consideration. The City Council asked staff to return with clarification regarding the proposed fees including a discussion regarding applicability of the fees to affordable housing developments along with associated fee reductions and/or exemptions. At the March 28, 2022 Council meeting, staff provided an analysis, based on historical building data, showing the loss of fee revenue if the City provided 25%, 50%, 75% fee reductions and a 100% fee exemption for moderate and below market rate housing units. City Council then directed staff to provide an analysis, based on the Regional Housing Needs Allocation (RHNA) numbers, showing the loss of fee revenue if the City provided fee reductions for moderate, low, and very low income units. This item is placed on the April 25th agenda for action.

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 impact fees would apply to the Pacifica City Council 2
April 25, 2022
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 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 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 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 both types of fees: a Parkland Dedication In-Lieu Fee (Quimby Act) and a Park Facilities Impact Fee, within the City of Pacifica (Attachment “A”) (collectively the “Park Fees Program”). The City prepared a Park Facilities Impact Fee Study to establish the nexus between the imposition of new park fees and the estimated reasonable cost of providing the service for which the fees are charged. The Park Fees Program is designed to ensure that new development pays their fair share of the cost of land acquisition for parks (in order to maintain the City’s existing ratio of parks-to-population) 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 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 community-wide. 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 facilities to serve 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:

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 fees are driven by the cost of parks and the existing ratio of park acreage to population. The goal of this effort is to ensure there is adequate funding to acquire land, build new parks, and improve Pacifica City Council 3
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existing parks to meet the demand of the increased population.

Currently, the City imposes the Quimby Act Fee and Mitigation Fee Act Fees depending on the type of development. The Quimby Act Fee in-lieu of land dedication is a fee, which is only paid by residential development occurring in subdivisions. The Mitigation Fee Act Fee has two components:
• A Mitigation Fee Act Fee for land acquisition. This fee is only paid 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 all residential development 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 land acquisition and park improvements in Pacifica.

Recently, the fees have been used to fund a portion of the construction of the Community Center Park and Fairmont Park improvements, 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 revenues 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 acquire parkland, 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. Also, as an example, these fees could be used for the construction of new trails to expand the trails system; however, if the new trails are located on non-City-owned parcels, the City must obtain public access easements for the use and maintenance of these trails.

It is good practice to analyze and periodically update impact fees, and with the enactment of AB 602, impact fees now must be updated at least every eight years. To that end, the City contracted with Willdan Financial Services to draft a nexus study setting forth the basis for the fee update (“Fee Report”) (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 $1,356,200 (per acre), respectively. These increased costs result in higher calculated fees.

Based on the total costs of facilities needed to serve new development from the impact fee update study, the total projected fee revenue is $31,652,092 (from 2021 to 2040). 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 $20,566
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1 $3,702 $24,118 $3,552
2 $5,181 $36,842 $12,724
3 $6,416 $44,684 $7,842
4 $7,897 $51,047 $6,363
5 $9,130 $59,037 $7,990
Additional
Bedroom
+$1,481 +$7,990 $7,990
Bedroom Calculation and Fee Schedule
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 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.

To calculate fees, the investment in park facilities is determined on a per resident basis for both land acquisition and improvements. These cost factors are based on the unit cost estimates and facility standards. The fees scale with the increases in average residents per dwelling unit, by number of bedrooms. The more people that live in a particular sized dwelling unit on average, the higher the fees. The incremental fee per bedroom is the difference between the fee for a particular number of bedrooms and the fee for a unit with one fewer bedroom. The increases in average persons per dwelling unit by number of bedrooms are not linear, so the incremental fee per bedroom is not uniform as the number of bedrooms increases.

The City anticipates that the park fees would be the primary revenue source to fund new development’s investment in park facilities. “Table 9” from the final report shows the maximum justified park facilities fee based on a five acre per 1,000 resident standard. Fees can also be charged incrementally for the addition of net new bedrooms. For example, if a homeowner wants to add a bedroom to their existing three-bedroom home, the homeowner would pay $6,349.

The total fee includes an administrative charge to fund costs that include: (1) legal, accounting, and other administrative support and (2) impact fee program administrative costs including revenue collection, revenue and cost accounting, mandated public reporting, and fee justification analyses. The table below shows the updated, proposed Park Land and Facilities Fees (under Quimby and the Mitigation Fee Act).

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Park Fees Schedule
Number of
Bedrooms
Land
Acquisiton
per Capita
Improvements Cost
per Capita
Total
Cost per
Capita Density1
Base
Fee
Admin
Charge2
Total Fee
per
Dwelling
Unit
Incremental
Fee per
Bedroom
0 $ 7,725 $ 6,781 $14,506 1.39 $20,163 $ 403 $ 20,566
1 7,725 6,781 14,506 1.63 23,645 473 24,118 $ 3,552
2 7,725 6,781 14,506 2.49 36,120 722 36,842 12,724
3 7,725 6,781 14,506 3.02 43,808 876 44,684 7,842
4 7,725 6,781 14,506 3.45 50,046 1,001 51,047 6,363
5 7,725 6,781 14,506 3.99 57,879 1,158 59,037 7,990
Additional Bedroom 7,725 6,781 14,506 0.54 7,833 157 7,990 1 Persons per dw elling unit.
2 Administrative charge of 2.0 percent for (1) legal, accounting, and other administrative support and (2) impact fee program administrative costs including revenue collection, revenue and cost accounting, mandated public reporting, and fee justification analyses.

As a comparison, the following tables shows Park Impact Fees of cities on the Peninsula (based on a four-bedroom single family unit), along with their corresponding standard level of service:

City Park Impact Fee Level of Park Service
(Acre)
Pacifica (existing) $5,887 5.00
Pacifica (max. justified) $50,938 5.00
Belmont $54,160 3.44
Half Moon Bay $7,764 5.00
Millbrae $55,522 2.65
Palo Alto $62,584 5.00
San Mateo $29,598 2.00
South San Francisco $29,124 3.00
Sunnyvale $87,120 5.00
Fee Reductions for Affordable Housing Units and Accessory Dwelling Units (ADU) Many cites have reduced fees for affordable housing. For example, the City of Fremont and the City of San Jose (among others) charge park impact fees for deed-restricted affordable housing at 50% of the max justified rate. Palo Alto exempts all impact fees for 100% affordable housing.

Many cities also exempt the inclusionary units in a project from the impact fees, but still charge fees to the market rate units. For the March 28, 2022 City Council meeting, a preliminary analysis was performed to determine how affordable housing fee reductions/exemptions would affect the projected fee revenue. Based on historical data from 2015 to 2020, approximately

6.25% of the new dwelling units were moderate or below market rate units. The following table shows the calculated loss of fee revenue from 25% fee reduction to 100% fee exemption for Moderate and Below Market Rate Units.

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Affordable Housing Fee Reduction/Exemption Analysis
New Dwelling Units (2015 to 2020)
Moderate and Below 6
Above Moderate 90
Total 96
Share of Moderate and Below Units 6.25%
Total Projected Fee Revenue (2021 - 2040)1$31,652,092
Loss in Fee Revenue Resulting from: 2
100% Exemption for Moderate and Below $ 1,978,256
75% Fee Reduction for Moderate and Below 1,483,692
50% Fee Reduction for Moderate and Below 989,128
25% Fee Reduction for Moderate and Below 494,564
1 Total costs of facilities needed to serve new development from nexus study. 2 Assumes share of moderate and below to above moderate units w ill remain constant.

A 100% fee exemption would result in a loss of approximately $2 million of park impact fees, while 75%, 50%, and 25% fee reductions would result in park impact fee loss of approximately $1.5 million, $1 million, and $500,000, respectively (from 2021 to 2040). It is in the City Council’s discretion to decide whether to adopt fee reductions/exemptions for affordable housing units. However, by not collecting sufficient fees, the City may require commitment of other non-fee revenue to undertake future park projects, otherwise, future park projects could be deferred or delayed due to reduced fee revenue.

The data provided for the fee reduction analysis did not include ADUs, so the analysis did not take ADUs into account. In addition, the fees would be different for each ADU relative to the size of the primary unit, so there is no way to estimate the impact it would have on anticipated fee revenues. The California State Legislature recently amended requirements on local agencies for the imposition of development impact fees on accessory dwelling units (ADU) with Assembly Bill AB 68 in 2021. The amendment to California Government Code §65852.2(f)(2) stipulates that local agencies may not impose any impact fees on ADUs less than 750 square feet. ADUs greater than 750 square feet can be charged impact fees in proportion to the size of the primary dwelling unit. Thus, State law already exempts ADUs under 750 sf from paying impact fees.

Anecdotally, a reasonable assumption is that the smaller ADUs under 750 sf will be “naturally affordable.” The Council may wish to consider requiring ADUs larger than 750 sf to pay the proportional impact fee. If the Council decides to reduce impact fees for affordable units, that fee reduction could be available to ADUs larger than 750 sf if they are restricted units.

City Council provided specific direction to staff to provide an analysis, based on the Regional Housing Needs Allocation (RHNA) numbers, showing the loss of fee revenues if the City provided fee reductions for moderate, low, and very low income units. Council asked staff to analyze two fee reduction/exemption scenarios. Scenario 1 would analyze charging 75% of maximum justified to moderate income units, 50% of maximum justified fees to low income units and an exemption of fees for very low income units. Scenario 2 would analyze charging 75% of maximum justified for moderate income units, 25% of maximum justified for low income units and an exemption of fees for very low income units. The following table shows loss of revenue Pacifica City Council 7
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for each of the scenarios:

Affordable Housing Fee Reduction/Exemption Analysis
Very Low
Income
Low Income
50% to 80%
Moderate Income
80% to 120%
Above Moderate
Income
Total <50% of AMI of AMI of AMI >120% of AMI
RNHA Projected Units 1,892 538 310 291 753
RHNA Share of Projected Units 100.00% 28.4% 16.4% 15.4% 39.8% Total Projected Fee Revenue (2021 - 2040)1 $ 31,652,092 $ 8,989,194 $ 5,190,943 $ 4,874,422 $ 12,597,533 Loss of Revenue From Scenario 12 $ 12,803,271 $ 8,989,194 $ 2,595,472 $ 1,218,606 $ - Net Fee Revenue $ 18,848,821 $ - $ 2,595,472 $ 3,655,817 $ 12,597,533 Loss of Revenue From Scenario 23 $ 14,101,007 $ 8,989,194 $ 3,893,207 $ 1,218,606 $ - Net Fee Revenue $ 17,551,085 $ - $ 1,297,736 $ 3,655,817 $ 12,597,533 1 Total costs of facilities needed to serve new development from nexus study. 2 Moderate income = 75% of maximum justified; Low Income = 50% of maximum justified; Very Low Income = Exempt. 3 Moderate income = 75% of maximum justified; Low Income = 25% of maximum justified; Very Low Income = Exempt.

Under this analysis, there is a total of 1,892 RNHA Project Units for the City, of which 538 are Very Low Income Units, 310 are Low Income Units, 291 are Moderate Income Units, and 753 are Above Moderate Income Units. Under both scenarios, the loss of fee revenue for the exemption of Very Low Income units is $8,989,194 and a fee revenue loss of $1,218,606 for a 25% reduction of fees for Moderate Income Units. Under Scenario 1, the loss of fee revenue for Low Income Units is $2,595,472, and $3,893,207 for Scenario 2. While the loss in fee revenue under either scenario would be significant should the RHNA projections be achieved, the RHNA projections may not be achievable based on recent trends. Indeed, the Fee Report does rely on projected development, rather than the RHNA projections, to determine the revenues needed to provide parks to future growth. This makes it difficult to project with certainty the loss of fee revenue from implementing either scenario. Depending on the actual amount and affordability mix of housing built, the loss of fee revenue may be minor, or may be significant.

The RNHA projections are very optimistic. Of the total units projected, over 60% are projected to moderate or lower income units. The RHNA projection would be a stark departure from recent history. Between 2015 and 2020, a total of 96 housing units were built in the City. Of the 96 units, 6 units were moderate income units, and none were low income or very low income. If historical trends continue over 93% of future units built in Pacifica would be above moderate income housing units and would not qualify for any reduction in fees.

City Council could recommend either Scenario 1 or Scenario 2. Scenario 2 would create a greater incentive for production of Low Income units. Should the City implement either affordable housing reduction park impact fee policy it should monitor the potential loss of fee revenue and could revise the policy depending on the fee program outcomes. While it is recommended that fee programs be updated every five years, the City could update the program sooner than that if it desires.

Should the City Council update the fees without any fee reductions, staff recommends adopting the attached Resolution. However, if the City Council would like to include fee reductions and/or exemptions to the fee schedule, an alternate resolution is attached, which will accomplish that objective.

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 Pacifica City Council 8
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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 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 Establishing Parkland Dedication In-Lieu Fee (PDF) Attachment "B" - Pacifica Park Development Impact Fee Update (PDF) Attachment "C" - Quimby Act and Park Facilities Impact Fee Update Ordinance (DOCX) Pacifica City Council 9
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RESOLUTION NO. ___________

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, 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.

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.

Pacifica City Council 11 April 25, 2022
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.

Section 3. Adoption of the Capital Improvement Plan. The City Council has approved and adopted the Capital Improvement Plan along with the Fee Report.

Section 4. 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 5. Effective Date. This Resolution shall take effect immediately. In accordance with Government Code section 66017, the updated fees set forth in Exhibit 1, shall be in full force and effect 60 days after the adoption of this resolution and shall be published or posted as required by law.

Section 6. Validity. The above recitations are true and correct, are material to the adoption of this Resolution, and are incorporated herein by reference.

Section 7. 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 8. 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 9. 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.

Pacifica City Council 12 April 25, 2022
• • • • •
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pacifica, California, held on the 25th day of April 2022, by the following vote:

AYES, Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

ABSTAIN, Councilmembers:

Mary Bier, Mayor
ATTEST: APPROVED AS TO FORM:
______________________________ ______________________________ Sarah Coffey, City Clerk Michelle Kenyon, City Attorney Pacifica City Council 13 April 25, 2022
EXHIBIT 1

QUIMBY ACT AND PARK FACILITIES IMPACT FEE FEES
Mitigation Fee Act Fee for Parkland Acquisition
Number of
Bedrooms
Land
Acquisiton
per Capita Density1 Base Fee
Admin
Charge2
Total Fee
per
Dwelling
Unit
Incremental
Fee per
Bedroom
0 $ 7,725 1.39 $10,738 $ 215 $ 10,953
1 7,725 1.63 12,592 252 12,844 $ 1,891
2 7,725 2.49 19,235 385 19,620 6,776
3 7,725 3.02 23,330 467 23,796 4,176
4 7,725 3.45 26,651 533 27,184 3,388
5 7,725 3.99 30,823 616 31,439 4,255
Additional Bedroom 7,725 0.54 4,172 83 4,255
1 Persons per dw elling unit.
2 Administrative charge of 2.0 percent for (1) legal, accounting, and other administrative support and (2) impact fee program administrative costs including revenue collection, revenue and cost accounting, mandated public reporting, and fee justification analyses.

Applies to all non-subdivision residential development. May be increased by Council based on Land Cost.

Mitigation Fee Act Fee for Park Improvements
Number of Bedrooms
Improvements
Cost per
Capita Density1 Base Fee
Admin
Charge2
Total
Fee per
Dwelling
Unit
Incremental
Fee per
Bedroom
0 $ 6,781 1.39 $9,426 $ 189 $ 9,614
1 6,781 1.63 11,053 221 11,274 $ 1,660
2 6,781 2.49 16,885 338 17,222 5,948
3 6,781 3.02 20,479 410 20,888 3,666
4 6,781 3.45 23,394 468 23,862 2,974
5 6,781 3.99 27,056 541 27,597 3,735
Additional Bedroom 6,781 0.54 3,662 73 3,735
1 Persons per dw elling unit.
2 Administrative charge of 2.0 percent for (1) legal, accounting, and other administrative support and (2) impact fee program administrative costs including revenue collection, revenue and cost accounting, mandated public reporting, and fee justification analyses.

Applies to all residential development. Increased Annually per CCI.

Pacifica City Council 14 April 25, 2022
Quimby Act Fee for In-Lieu of Parkland Dedication
Number of
Bedrooms
Land
Acquisiton
per Capita Density1 Base Fee
Admin
Charge2
Total Fee
per
Dwelling
Unit
Incremental
Fee per
Bedroom
0 $ 7,725 1.39 $10,738 $ 215 $ 10,953
1 7,725 1.63 12,592 252 12,844 $ 1,891
2 7,725 2.49 19,235 385 19,620 6,776
3 7,725 3.02 23,330 467 23,796 4,176
4 7,725 3.45 26,651 533 27,184 3,388
5 7,725 3.99 30,823 616 31,439 4,255
Additional Bedroom 7,725 0.54 4,172 83 4,255
1 Persons per dw elling unit.
2 Administrative charge of 2.0 percent for (1) legal, accounting, and other administrative support and (2) impact fee program administrative costs including revenue collection, revenue and cost accounting, mandated public reporting, and fee justification analyses.

Increased Annually per CCI.

Pacifica City Council 15 April 25, 2022
ALTERNATE (BASED ON SCENARIO 2)
RESOLUTION NO. _______

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

WHEREAS, Willdan Financial Services prepared and submitted a Park Development Impact Fee Update, dated April 15, 2022, 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
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
Pacifica City Council 16 April 25, 2022
WHEREAS, the City is adopting a Capital Improvement Plan as part of the Fee Report for the construction and improvement 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, the City’s Housing Element of the General Plan, adopted in 2015, acknowledges that it is in the City’s interest to ensure adequate housing is available for all income levels, including those who are below the median household income for San Mateo County, in which the City is located. It lists many goals aimed at facilitating development of affordable housing, including updating the City’s density bonus regulations (Action Program No. 13), contacting developers of affordable housing to explore affordable housing development opportunities (Action Program No. 17), and encouraging development of housing for all income levels (Action Program No. 18). The City’s Inclusionary Housing Ordinance codified in PMC Title 9, Chapter 4, Article 47 also sets forth the City’s commitment to enhancing the public welfare and assuring that further housing development contributes to the attainment of the housing goals of the City by increasing the production of affordable housing units; and WHEREAS, to support and encourage the development of new affordable housing units at an affordable housing cost, as defined by PMC section 9-4.4701(b), in the City and to help implement the aforementioned Housing Element Policies, the City desires to provide a reduction of 75% of maximum justified fees for units affordable to moderate income households as defined in PMC section 9-4.4701(o), 25% of maximum justified fees for units affordable to lower income households as defined in PMC section 9-4.4701(m), and an exemption from fees for units affordable to very low income households as defined in PMC section 9-4.4701(u), of the Mitigation Fees for affordable housing units in residential development projects; 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 sections 66002, 66016.5, 66018, and 6062a, a notice of a public hearing on the proposed fee schedule was published on April 13, 2022, and April 20, 2022, in the Pacifica Tribune, a newspaper of general circulation; and WHEREAS, pursuant to Government Code sections 66019 and 66016.5, notice of the Pacifica City Council 17 April 25, 2022
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 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.

Section 3. Adoption of the Capital Improvement Plan. The City Council has approved and adopted the Capital Improvement Plan along with the Fee Report.

Section 4. 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 6. Validity. The above recitations are true and correct, are material to the adoption of this Resolution, and are incorporated herein by reference.

Section 7. 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 Pacifica City Council 18 April 25, 2022
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 9. 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 25th day of April 2022, by the following vote:

AYES, Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

ABSTAIN, Councilmembers:

Applies to all non-subdivision residential development. May be increased by Council based on Land Cost.

Applies to all residential development. Increased Annually per CCI.

Pacifica City Council 20 April 25, 2022
Quimby Act Fee for In-Lieu of Parkland Dedication
Number of
Bedrooms
Land
Acquisiton
per Capita Density1 Base Fee
Admin
Charge2
Total Fee
per
Dwelling
Unit
Incremental
Fee per
Bedroom
0 $ 7,725 1.39 $10,738 $ 215 $ 10,953
1 7,725 1.63 12,592 252 12,844 $ 1,891
2 7,725 2.49 19,235 385 19,620 6,776
3 7,725 3.02 23,330 467 23,796 4,176
4 7,725 3.45 26,651 533 27,184 3,388
5 7,725 3.99 30,823 616 31,439 4,255
Additional Bedroom 7,725 0.54 4,172 83 4,255
1 Persons per dw elling unit.
2 Administrative charge of 2.0 percent for (1) legal, accounting, and other administrative support and (2) impact fee program administrative costs including revenue collection, revenue and cost accounting, mandated public reporting, and fee justification analyses.

Increased Annually per CCI.

The City will provide a reduction of 75% of maximum justified fees for moderate income units, 25% of maximum justified fees for low-income units, and an exemption from fees for very low-income units of the Mitigation Fees for affordable housing units in residential development projects.

Pacifica City CouncilApril 25, 2022

Pacifica City Council
April 25, 2022