2/18/22
TO: COMMUNITY AND ECONOMIC FROM: Jon Cicirelli
DEVELOPMENT COMMITTEE Director
SUBJECT: FEE STUDY UPDATE: PARKLAND DATE: February 17, 2022
DEDICATION AND PARK IMPACT
ORDINANCE
Approved Date
RECOMMENDATION
Accept the report from the Department of Parks, Recreation and Neighborhoods Services (the Department) regarding efforts to complete a Fee Study recommending updates to the City’s Parkland Dedication and Park Impact ordinances (San José Municipal Code Chapters 19.38 and
14.25).
BACKGROUND
On February 21, 2021, the Community and Economic Development Committee (Committee) accepted a work plan outlining steps for Department staff to review and recommend updates to the City’s Parkland Dedication (PDO) and Park Impact (PIO) ordinances based on a consultant prepared Fee Study1. The Fee Study will:
• Recommend a methodology for the City to assess fair market land values for the purposes of assessing impact fees in-lieu of parkland dedication; • Assess various methods of how fees are calculated in other jurisdictions and recommending a method for San José;
• Evaluate the geographic boundaries where fees can be collected and spent; • Evaluate mechanisms for equitable and fair distributions of collected fees; • Modernize how credits toward the PDO/PIO are qualified and applied; • Determine the feasibility of a non-residential park impact development fee; • Demonstrate the legal nexus for any recommended changes and align with City efforts to develop a Development Fee Framework; and
• Assess the feasibility of fee levels within the legal nexus. 1 Item (d) 4 February 22, 2021 Community and Economic Development Committee agenda:
https://sanjose.legistar.com/LegislationDetail.aspx?ID=4773099&GUID=96A1CAC0-F861-48C8-9574- 748675F26FAA&Options=&Search=
CED COMMITTEE AGENDA: 2/28/22
FILE: d (2)
ITEM: CC 22-040
COMMUNITY AND ECONOMIC DEVELOPMENT COMMITTEE
February 17, 2022
Subject: PDO/PIO Fee Study
The purpose of this report is to provide the status of work done to date and outline the steps to move forward.
ANALYSIS
Since the work plan was presented to the Committee, Department staff has:
• Contracted with a consultant, DTA Finance, to prepare the Fee Study; • Formed a 15-member Task Force, which has four meetings (meetings will continue monthly) until December 2022;
• Held one public virtual community meeting on August 26, 2021; • Presented an overview of the Fee Study to SPUR August 26, 2021; • Presented an overview of the Fee Study during five public meetings:
o Parks and Recreation Commission, April 7, 2021
o Developers and Construction Roundtable, August 20, 2021 o Senior Citizen’s Commission, October 14, 2021
o Youth Commission, October 25, 2021
o Neighborhoods Commission, January 12, 2022
• Published an informational website that includes opportunities for public participation in meetings and recorded information from meetings held (including Task Force meetings).
The website address is: https://www.sanjoseca.gov/your-government/departmentsoffices/parks-recreation-neighborhood-services/general-information/parkland-dedicationand-park-impact-ordinance.
To date, the Task Force and the public have asked general questions about the Fee Study and procedures and have not made any recommendations to staff. It is the Department’s intent to present a draft Fee Study to the City Council in December 2022. Staff’s recommendation to the City Council will reflect input received from the Task Force, the community, and City Commissions and Committees.
The following scope items are underway:
• Updating land values to reflect 2020 Census data and 2022 City Council district boundaries and demographics;
• Identifying geographic boundaries for the collection of fees; • Determining legal nexus spending allowances;
• Refining the program that allows credits for on-site amenities (Private Recreation Credits); and
COMMUNITY AND ECONOMIC DEVELOPMENT COMMITTEE
February 17, 2022
Subject: PDO/PIO Fee Study
• Aligning the recommendations with the City’s Development Fee Framework2 efforts and state law.
Fee Study work to be started:
• Determining the feasibility of a non-residential development impact fee; • Evaluating development of a project prioritization method for the spending of collected fees; and
• Establishing a formula to estimate the fees based on recommended geographic boundaries.
Once information and reports have been reviewed by the Department, staff will present the initial (draft) findings to the Task Force, to the community during future public engagement meetings, and to various City Commissions and this Committee. Additionally, the Department will host additional community/public engagement meetings and continue to keep the public informed via the website.
COORDINATION
This memorandum was coordinated with the City Attorney’s Office, the Office of Economic Development and Cultural Affairs, and the Housing Department.
CEQA
Public Project number PP17-009. Not a project. Staff Reports, Assessments, Annual Reports, and Informational Memos that involve no approvals of any City action. /s/
JON CICIRELLI
Director of Parks, Recreation
and Neighborhood Services
The principal author of this memorandum is Rebekah Ross, Planner IV. For questions, please contact Nicolle Burnham, Deputy Director, by email at: [email protected]. 2 The City is considering how its impact fee programs can be translated into a more transparent framework. The Office of Economic Development and Cultural Affairs (OEDCA) is leading an effort to address City Roadmap.
Backlog item The Development Fee Framework. This framework aims to align three residential impact fee programs including: The Inclusionary Housing Ordinance, the PDO and PIO, and Construction Taxes. The PDO/PIO Fee Study will inform the OEDCA effort.