Administrative Report
Council Action Date: August 1, 2017
To: MAYOR AND CITY COUNCIL
From: JOHN LA ROCK, COMMUNITY SERVICES DIRECTOR
Subject: PUBLIC HEARING TO CONSIDER A RESOLUTION REGARDING QUIMBY FEES.
ADOPT BY TITLE ONLY RESOLUTION, NO. CC-1708-163, A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, ADOPTING A CAP FOR DEVELOPER IN-LIEU PARK AND RECREATION FEES (QUIMBY FEES).
STAFF RECOMMENDATION:
a. Open the Public Hearing and take testimony; and
b. Close the Public Hearing; and
c. Adopt by title only Resolution No. CC-1708-163.
RECOMMENDATION
Adopt the following resolution by title only, waiving further reading:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA,
ADOPTING A CAP FOR DEVELOPER IN-LIEU PARK AND RECREATION FEES ( QUIMBY FEES)
EXECUTIVE SUMMARY
On September 7, 2004, the City Council adopted an ordinance establishing park subdivision trust dedications and in-lieu fees (Quimby) for new housing units in the City. Additionally on September 7, 2004, the Council adopted two related resolutions (1) establishing a Quimby fee cap of $7,500, and (2) establishing an exemption for low and moderate income housing developments.
On June 20, 2017, as part of the FY 2017-18 Budget Hearing, the City Council reviewed a Budget Response Report on the origination of the Quimby Fee and the method for increasing the Quimby Fee cap. The City Council's discussion included suggestions for a potential increase of the cap amount ranging from $15,000 to $25,000. The City Council provided direction that an update to the Quimby fee cap be included as future agenda item to be discussed outside of the Budget Hearing during a separately noticed public hearing.
A resolution has been prepared without the inclusion of a new Quimby fee cap amount. The resolution may be completed during tonight's Council meeting for adoption provided a new Quimby fee cap has been approved.
BACKGROUND
The City’s Quimby Ordinance No. 2939-04 ( attached) was adopted on September 7, 2004. The Ordinance established developer exactions for park and recreation facilities in Redondo Beach. The exactions are imposed on developers of new (additional) housing units in the City (excludes one-for-one replacement of housing units). The exaction is either a land dedication or an in-lieu (Quimby) fee.
Developments of less than 50 units pay the in-lieu fee (the land dedication option is not available for
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these developments). The Quimby fees are allocated to the Subdivision Park Trust Fund, established and adopted by the City on November 9, 2004. Additional conditions of the Quimby Ordinance include:
The money collected can be used only to acquire land and develop new parks and recreation facilities or to rehabilitate existing parks or recreation facilities that serve the respective development.
Quimby fees must be appropriated within 5 years of collection.
The fees are waived for qualifying below-market (affordable) housing developments.
As per Ordinance No. 2939-04, the in lieu fees paid by developers are the lesser of a Quimby fee cap established by the City Council or a fee determined by formula incorporating the average fair market value of the amount of land that would otherwise be required for dedication. This latter formula is informed by applying the City’s parkland standard of 3 acres/1000 persons, as per the Recreation Element of the General Plan.
On September 7, 2004, Resolution No. CC-0408-82 was introduced and adopted, setting the City’s Quimby fee cap at $7,500 per new housing unit. Due to the very high cost of land in the City, a cap amount manages what would otherwise be considered a prohibitive developer fee. If the City Council considers a doubling or tripling of the Fee cap, it would remain far below the formula allocation for the Quimby fee exaction.
Fee caps are used by most CA cities when implementing developer fees. A survey of Quimby fee caps from other cities is attached to this report. The following example demonstrates an uncapped fee in Redondo Beach as per the Quimby formula:
A developer builds 10 new units on a ½ acre lot. The City’s parkland standard is 3 acres per 1,000 persons, and the average persons per unit in the City is 2.31. 10 new units X parkland standard X persons per unit = in-lieu fee 10 units X .003 X 2.31 = .0693 acres of land dedication for in-lieu fee calculation Land value is $12,000,000 for the ½ acre, then .0693 X $12,000,000 = $831,600 in lieu fee (if development is less than 50 units).
Although a fee cap increase in prior years was not considered due to the recession and restrictive bank lending practices, the development climate today is more robust, and the City is experiencing a higher number of property renovations creating higher end living complexes.
Recent allocations of Quimby Fee revenue for parks projects include:
HVAC replacement at the Veterans Park Historic Library
Amenity improvements/additions at Wilderness Park
Repairs and improvements to the Queen Anne House at Dominguez Park Resurfacing of the Anderson Park and Alta Vista Park tennis courts Repairs to the Aviation Gymnasium
Replacement of the Veterans Park playground equipment (FY 17-18) On June 20, 2017, as part of the FY 2017-18 Budget Hearing, the City Council reviewed a Budget Response Report on the origination of the Quimby Fee and the method for increasing the Quimby Fee cap. It was reported that the Quimby Fee cap may be changed by a Resolution approved by the City Council. The report also included a survey of the Quimby structure and fees of local cities. The survey is attached to this report. The City Council's discussion included suggested amounts for a potential increase of the Quimby cap amount ranging from $15,000 to $25,000. The City Council provided direction that an update to the Quimby fee cap be included as future agenda item to be discussed outside of the Budget Hearing during a separately noticed public hearing.
The Quimby Ordinance may be updated following the update to the City’s Recreation Element as part of the General Plan Update, which could incorporate an update to the City’s parkland standard of 3
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acres/1000 persons.
COORDINATION
The City Attorney's office has prepared the Quimby fee resolution. Prior to adoption, the resolution will be completed by staff to include the Quimby fee cap amount approved by the City Council.
FISCAL IMPACT
An increased Quimby fee cap will increase funds available to the City for parks and recreation facilities.
Actual revenue generated will be affected by various factors including amount of residential development and demolition in the City during a particular fiscal year, cost of financing to developers, amount of land available for development, etc. Annual revenue, based on development activity in the City over the past ten years, could range from $250,000 to $2 million.
SUBMITTED BY:
John La Rock, Community Services Director
APPROVED BY:
Joe Hoefgen, City Manager
ATTACHMENTS:
RESOLUTION ESTABLISHING QUIMBY FEE
Quimby Fee CA Cities Survey
Resolution 2939-04-Establish Park Subdivision Trust-Quimby Resolution 0408-82-Quimby Fee Cap
Resolution 0409-89-Quimby Affordable Housing Exemption
NOTICE OF PUBLIC HEARING-QUIMBY FEE
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RESOLUTION NO. CC-1708-163
ADOPTING QUIMBY FEE CAP
PAGE 1
RESOLUTION NO. CC-1708-163
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF REDONDO BEACH, CALIFORNIA, ADOPTING A CAP
FOR DEVELOPER IN-LIEU PARK AND RECREATION
FEES (QUIMBY FEES)
WHEREAS, Title 10, Chapter 1, Article 14 of the Redondo Beach Municipal Code provides for developer land exactions and in-lieu fees (Quimby fees) for purposes of developing and improving parks and recreation facilities; and
WHEREAS, Quimby fees are calculated by a formula established in California Government Code §66477, “Subdivision Map Act”; and
WHEREAS, Title 10, Article 14, Chapter 1, Section 10-1.1412 of the Redondo Beach Municipal Code provides that Quimby Fees may be capped at a level determined by the City Council of the City of Redondo Beach; and
WHEREAS, this resolution establishes the cap for Quimby fees in the City of Redondo Beach.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The Mayor and City Council of the City of Redondo Beach, California exercise their authority by setting the Quimby Fee cap at $__________ per unit.
SECTION 2. The City Clerk shall certify to the passage and adoption of this resolution and shall enter the same in the Book of Original Resolutions.
PASSED, APPROVED AND ADOPTED this 1st day of August, 2017.
William C. Brand, Mayor
APPROVED AS TO FORM: ATTEST:
Michael W. Webb, City Attorney Eleanor Manzano, CMC, City Clerk
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RESOLUTION NO. CC-1708-163
ADOPTING QUIMBY FEE CAP
PAGE 2
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF REDONDO BEACH )
I, Eleanor Manzano, City Clerk of the City of Redondo Beach, California, do hereby certify that Resolution No. CC-1708-163 was passed and adopted by the City Council of the City of Redondo Beach, California, at a regular meeting of said City Council held on the 1st day of August, 2017, and there after signed and approved by the Mayor and attested by the City Clerk, and that said resolution was adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Eleanor Manzano, CMC
City Clerk
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ATTACHMENT
QUIMBY FEES IN OTHER CITIES
CITY QUIMBY FEES/CAPS
Torrance $ 550/unit
RPV $ 1.15 per square foot
Manhattan Beach $ 1,817/unit
Malibu $ 2,222 - $3865 cap range
Chula Vista
Residential only:
4,118 - $5,549 cap range
Fullerton $ 4,572/1,000 sq. ft.
Hermosa Beach
7,332 cap – condos excluded
14,096 cap – condos only
Redondo Beach $ 7,500 cap
Los Angeles $ 10,000 cap ; $5,000 cap for apartment complexes Huntington Beach $ 12,732.84 - $16,554.73 cap range
Costa Mesa $ 13,572 - $13, 829 cap range
Laguna Hills $ 15,636 $ 23,013 cap range
Newport Beach $ 26,125 cap
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RESOLUTION NO. CC- 0408-82
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
REDONDO BEACH, CALIFORNIA, ADOPTING A CAP OF
7,500 PER UNIT FOR DEVELOPER IN-LIEU PARK AND
RECREATION FEES (QUIMBY FEES)
WHEREAS, Title 10, Chapter 1, Article 14 of the Redondo Beach Municipal Code provides for developer land exactions and in-lieu fees (Quimby fees) for purposes of developing and improving parks and recreation facilities; and WHEREAS, Quimby fees are calculated by a formula established in California Government Code §66477, "Subdivision Map Act"; and
WHEREAS, Title 10, Article 14, Chapter 1, Section 10-1 .1412 of the Redondo Beach Municipal Code provides that Quimby fees may be capped at a level determined by the City Council of the City of Redondo Beach; and
WHEREAS, this Resolution establishes the cap for Quimby fees in the City of Redondo Beach.
NOW, THEREFORE, THE CITY COUNCil OF THE CITY OF REDONDO BEACH, CALIFORNIA, DOES HEREBY RESOLVE AS FOllOWS:
SECTION 1. The City Council hereby sets the Quimby Fee cap at $7,500 per unit.
SECTION 2. The City Clerk shall certify to the passage. arid adoption of this resolution and shall enter the same in the Book of Original Resolutions.
RESOLUTION NO. CC- B2O40BPARK & RECREATION DEDICATIONS/
QUIMBY FEES
PAGE NO.1
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PASSED, APPROVED, AND ADOPTED this ih day of September, 2004.
ATTEST:
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
CITY OF REDONDO BEACH SS
I, Sandy Forrest, City Clerk of Redondo Beach, California, do hereby certify that the foregoing Resolution No. CC- 820408-was duly passed, approved and adopted at a regular
meeting of the City Council of the City of Redondo Beach, California, at a regular meeting
of said City Council held on the ih day of September, 2004, by the following roll call vote:
AYES: Cagle, Szerlip, Schmalz, Parsons
NOES: None
ABSENT: Bisignano
ABSTAIN: None
APPROVED AS TO FORM:
RESOLUTION NO. CC- B2O40BPARK & RECREATION DEDICATIONS/
QUIMBY FEES
PAGE NO.2
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RESOLUTION NO. CC- 89O409-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
REDONDO BEACH, CALIFORNIA, ESTABLISHING AN
AFFORDABLE HOUSING EXEMPTION FOR DEVELOPER
IN-LIEU PARK AND RECREATION FEES (QUIMBY FEES)
WHEREAS, Title 10, Chapter 1, Article 14 of the Redondo Beach Municipal Code provides for developer land exactions and in-lieu fees (Quimby fees) for purposes of developing and improving parks and recreation facilities; and WHEREAS, Quimby fees are imposed on new subdivided residential housing developments in Redondo Beach; and
WHEREAS, Quimby fees may add to the cost of affordable housing in the City; and WHEREAS, this resolution establishes an affordable housing exemption for Quimby fees in the City of Redondo Beach.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. Affordable housing development as described below shall be exempt from the payment of Quimby fees in the City of Redondo Beach:
Development of real property into housing units sold at a purchase price which does not exceed the affordable housing cost as defined in Section 50052.5of the California Health and Safety Code when provided to a lower income household as defined in Section 50079.5of the California Health and Safety Code or a moderate income household as defined in Section 50093 of the California Health and Safety Code, as these code sections may be amended from time to time, and provided that the applicant executes an agreement, in the form of a deed restriction, second trust deed, or other legally' binding and enforceable document acceptable to the City Attorney and binding on the owner and any successor- interest in-to the real property being developed, guaranteeing that all of the affordable units developed on the real property shall be maintained for lower and moderate income households for the lesser of a period of thirty years or the actual life or existence of the structure, including any addition, renovation or remodeling thereto."
SECTION 2. The City Clerk shall certify to the passage and adoption of this resolution and shall enter the same in the Book of Original Resolutions.
RESOLUTION NO. CC- 89O408-
PARK & RECREATION DEDICATIONS!
QUIMBY FEES: EXEMPTIONS
PAGE NO.1
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PASSED, APPROVED, AND ADOPTED this ih day of September, 2004.
Gregory C. II, Mayor
ATTEST:
STATE OF CALIFORNIA)
COUNTY OF LOS ANGELES) SS
CITY OF REDONDO BEACH)
I, Sandy Forrest, City Clerk of Redondo Beach, California, do hereby certify that the foregoing Resolution No. CC- 890409-was duly passed, approved and adopted at a regular
meeting of the City Council of the City of Redondo Beach, California, at a regular meeting
of said City Council held on the7th day of September, 2004, by the following roll call vote:
AYES: Cagle, Szerlip, Schmalz, Parsons
NOES: None
ABSENT: Bisignano
ABSTAIN: None
APPROVED AS TO FORM:
c~
RESOLUTION NO. CC- 89O408-
PARK & RECREATION DEDICATIONS!
QUIMBY FEES: EXEMPTIONS
PAGE NO.2
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