October 29, 2024 Item #2
City Council Meeting
Item #2, RTC 24-144
Action on Resolutions Establishing the
Average Per-Acre Land Values, Occupant
. 000000000 Density Figures, and Park Development
Costs to be Used in Setting the Parkland
In-Lieu Fees for New Residential
1852 Development and Amending the FY
THE MISSION CIT 2024/25 Municipal Fee Schedule Updating Parkland In-Lieu Fees Accordingly
October 29, 2024
1 City of
Santa Clara
Tise Corter of Whats Positis
Agenda
• Background
• Fee Components
- Land Valuation
• Updated Appraisal Information
• Updated Census Data
- Park Improvement Values
- Program Administration
• How the Changes Will Be Applied
• Fee Implementation
• Recommendations
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POST MEETING MATERIAL
1 October 29, 2024 Item #2
City of
Santa Clara
The Center of Whur Fosgibile
Background
• City Code Chapter 17.35 "Park and Recreational Land" requires new residential developments to provide developed park and recreational lanc and/or pay a fee in-lieu of developed parkland dedication ("In-Lieu Fees" pursuant to the Quimby Act ("Quimby") and/or the Mitigation Fee Act ("MFA") - Quimby Act applies to subdivisions (for sale projects) - Mitigation Fee Act applies to non-subdivisions (rental projects) 3 3
City of
Santa Clara
That Center of Whats Possible
Background
• Parkland dedication in-lieu fees are reviewed annually and in recent years have been brought forward as part of the Municipal Fee Schedule update • This year's review of in-lieu fees was delayed due to workload issues as well as a desire to update the housing density information with the latest U.S.
Census Bureau data in accordance with the Park and Recreational Land Ordinance. The latest U.S. Census Bureau data was issued in September 2024 and has been incorporated into this report
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2 October 29, 2024 Item #2
City of
Santa Clara
The Conter of What Possible:
Background (continued)
Primary cost components upon which in-lieu fees are calculated are as follows:
(a) the average cost to purchase land for parks in Santa Clara as determined by an annual land evaluation appraisal;
(b) the average cost per capita to develop the land into a useable park facility based on the 2019 Parks and Recreation Facility Condition Assessment indexed to the Department of General Services California Construction Cost Index (CCCI); and (c) the cost to administer the program, including the review of residential development plans for compliance with the ordinance (currently set at 2% of total fees collected) 5 5
City of
Santa Clara
The Center of Whits Persible
Annual Land Appraisal Valuations
Table 1
Average Land Value per Acre
Area 12-31-23 12-31-22 % Chg 12-31-21 12-31-20 12-31-19 12-31-17 95050 $5.455M $5.500M -0.8% $5.715M $4.720M $4.385M $3.738M 95051 $5.650M $5.840M -3.3% $6.000M $5.120M $4.630M $3.993M 95054 $5.255M $5.240M +0.3% $5.495M $4.830M $4.495M $4.035M • In two of the three zip codes, land valuations have declined with only modest growth in the third 6
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October 29, 2024 Item #2
City of
Santa Clara
The Coffer of Wijata Popsit:
Updated Census Information
• Chapter 17.35 defines average density as "the average number of persons per household, as established by City Council resolution, in accordance with the most recent available Federal Census Data" • New census data became available as of September 2024 which lowers the average occupant density of housing units as follows:
Single Family Multi-Family
2.98 2.84 2.40 1.92
7 City of
Santa Clara
The Center of Waits Possible
Park Improvement Costs
• The cost to construct park improvements is based on the average cost per capita for the City's existing park system improvements and recovers no more than 100% of the actual cost to develop new park assets and features to serve new residents at the same standard as existing residents • Resolution 23-9220 sets the annual changes in the park improvement value to correspond to changes (both increases and decreases) to the California Construction Cost Index (CCCI)
• The current Park Improvement Cost is $3,818. The 2023 CCCI value is an increase of 9.4%
• In accordance with Resolution 23-9220, the Park Improvement Cost for FY24/25 would increase to $4,177
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4 October 29, 2024 Item #2
City of
Santa Clara
The center ovate Porebe
Administration
• The total fee includes a two-percent (2%) 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. 9 9
City of
Santa Clara
The Conterof Who's Possibly
Result of Changes on Fees
• Use of updated census information, combined with lower land values, will result in fee decreases in every area of the City • Staff intends to monitor the impact of this change and will work with the Parks and Recreation Commission and other stakeholders to evaluate best practice information to ensure that the City's parkland goals are met going forward
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5 October 29, 2024 Item #2
City of
Santa Clara
The Conforof What Possible
How are these changes applied?
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City of
Santa Clara
Sample Worksheet for Zip Code 95051
Table B
Proposed Parkland Dedication In Lieu Fee Schedule - FY2024-25 95051
Applicable Fee Type Calculation MFA Quimby
S/Acre (valuation date 12-31-2023) $5,650,000 $5,650,000 Park Acres/1000 Pop. LOS Standard 2.6
Total Cost per 1,000 C= A xB $14,690,000
Cost per capita D = C/1000 514,691
D x 2.84 $41,720
Improvemen gly 20 5 18 as) $4,177 x 2.84 $11,863
Admin Charge 0.02 $1.072 $1,200
Total Single Family (SF) Dwelling Fee $54,655 $61,201
Density Multi Family (Census) Dx 1.92 $28,205 $32,544
Improvement value (2023: $3,818 + 9.4%) $4,177 x 1.92 $8,020 $8,020 Admin Charge 0.02 S724 $811
Total Multi Family (MF) Dwelling Fee $36,949 $41,375
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6 October 29, 2024 Item #2
City of
Santa Clara
The Center of Wheaty Possible
Proposed Fees for FY2024/25
Quimby Current Revised Change
95050 Single Family 61,759 59,507 -2,252
Multi Famil 49,738 40,230 -9,508
95051 Single Family 64,859 61,201 3,658
Multi Family 52,235 41,375 -10,860
95054 Single Family 59,388 57,769 -1,619
Multi Family 47,829 39,055 -8,774
Mitigation Fee Act (MFA) Current Revised Change
95050 Single Family 55,072 53,186 -1,886
Multi Family 44,353 35,956 -8,397
95051 Single Family 57,758 54,655 -3,103
Multi Family 46,517 36,949 -9,568
95054 ingle Famil 53,017 51,679 -1,338
Aulti Famil 42,698 34,938 -7,760
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City of
Santa Clara
The Coiteral What Possible
Implementation
• State law requires a proposed resolution be drafted to provided the required findings of MFA and Quimby
• Development impact fees based on MFA may only take effect 60 days following the adoption of the fee
• Fees based on the Quimby Act can go into effect immediately upon adoption of the required resolution
• Implementation of the new fees will require a resolution to amend the existing FY24/25 Municipal Fee Schedule in order to modify the Parkland Dedication In-Lieu Fees
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7 October 29, 2024 Item #2
City of
Santa Clara
The Center of Mots Posgible
Recommendation
It is recommended that the City Council:
1. Adopt a Resolution in accordance with Santa Clara City Code Chapter
17.35 establishing the average per-acre land values, occupant density figures and park development costs to be used in setting of parkland in- lieu fees for residential development; and
2. Adopt a Resolution to amend the FY 2024/25 Municipal Fee Schedule to modify the Parkland Dedicated In-Lieu Fees accordingly 15 15
City of
Santa Clara
The Coffer Of Whats Postible
Questions/Comments
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