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HomeMy WebLinkAboutReso 57-2016 (16-385)City of South San Francisco P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA Resolution: RES 57 -2016 File Number: 16 -385 Enactment Number: RES 57 -2016 RESOLUTION SETTING THE PARKLAND ACQUISITION FEE AND PARK CONSTRUCTION FEE TO MITIGATE THE IMPACT OF NEW DEVELOPMENT ON PARK AND RECREATIONAL FACILITIES PURSUANT CHAPTER 8.67 OF THE SOUTH SAN FRANCISCO MUNICIPAL CODE. WHEREAS, parks and recreational facilities are vital to the health and welfare of a community; and WHEREAS, the City of South San Francisco ( "City ") aims to provide sufficient levels of parks and recreational facilities for its residents; and WHEREAS, the City's General Plan and Parks and Recreation Master Plan aims to provide three acres of parks and recreational facilities per 1,000 residents; and WHEREAS, Guiding Policy 5.1 -G -1 of the City's General Plan provides that the City should "[d]evelop additional parkland in the city, particularly in areas lacking these facilities, to meet the standards of required park acreage for new residents and employees;" and WHEREAS, Implementing Policy 5.1 -1 -2 of the City's General Plan provides that the City should "[m]aintain parkland standards of 3.0 acres of community and neighborhood parks per 1,000 new residents;" and WHEREAS, Goal #1 of the Parks and Recreation Master Plan provides that the City "should provide a minimum of 3 acres of developed park land per 1,000 residents "; and WHEREAS, new residential development projects attract new residents to the city, which generates increased demand for parks and recreational facilities and impacts existing park service levels; and WHEREAS, the City may adopt and impose a Parkland Acquisition Fee and a Park Construction Fee ("Fees ") to pay for the cost of acquiring and constructing park facilities needed to support new development under the authority of Sections 66000 et seq. of the California Government Code ( "Mitigation Fee Act"); and WHEREAS, such development impact Fees are not a "tax" as defined in Section 1, paragraph (e) of Article XIIIC of the California Constitution ( "Proposition 26 ") because such Fees and charges are imposed for a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable cost to the local government of providing the service or product, and/or such Fees and charges are imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not Page I File Number: 16 -385 Enactment Number. RES 57 -2016 exceed the reasonable cost to the local government of providing the service or product, and/or such Fees and charges are imposed for the reasonable regulatory costs to a local government for issuing licenses and permits, performing investigations, inspections and audits, enforcing agricultural marketing orders and the administrative enforcement and adjudication thereof; and/or such fees and charges are imposed as a condition of property development; and WHEREAS, the Fees and charges set by this Resolution are not subject to the requirements of Article XIIID of the California Constitution ( "Proposition 218 ") concerning property related assessments and fees pursuant to Apartment Association of Los Angeles County v. City of Los Angeles (2001) 24 CalAth 830, in that such Fees are not applicable to incidents of property ownership, but rather to actual use of and need for City services and/or facilities; and WHEREAS, in accordance with Government Code Section 50076, fees and charges that do not exceed the reasonable cost of providing the service or regulatory activity for which the fees are charged and which are not levied for general revenue purposes are not special taxes as defined in Article 3.5 of the Government Code; and WHEREAS, pursuant to Sections 66001 of the Mitigation Fee Act, the City Council has adopted an ordinance adding Chapter 8.67 to the City's Municipal Code ( "Ordinance ") establishing a Parkland Acquisition Fee and a Park Construction Fee to mitigate the impacts caused by new development by providing for the payment of development impact fees necessary for the City to acquire property and construct parks and recreational facilities and to maintain desirable levels of parks and recreational facilities for new and existing residents, after a duly noticed public hearing, and such Ordinance identifies the purpose of the Fees; the use to which the Fees will be put; determines that there is a reasonable relationship between the use and the type of development projects on which the Fees will be imposed; determines that there is a reasonable relationship between the need for the public facilities and the type of development projects on which the Fees are imposed; and establishes the relationship between the amount of the Fees and the cost of the community facilities or portion of the community facilities attributable to the development projects upon which the Fees are imposed; and WHEREAS, the Ordinance states that the average fair market value for land in the City, the average per acre construction costs in the City, the administrative fees for administering the Fees under the Ordinance, and the annual adjustment of the Fees will be set by resolution of the City Council; and WHEREAS, the Finance Director has determined that the annual staff costs associated with administration of the Fees established by the Ordinance will be approximately $500 per year and each fee collected under the Ordinance will require three years of administration, which results in an administrative fee of $1500; and WHEREAS, the City has obtained an appraisal from Dana Property Analysis for the average fair market value of land per acre in the city, which assessed the value of land as $3,000,000 per acre; and WHEREAS, the City obtained a professional assessment from Group 4 Architecture, Research + Planning, Inc. of the average per acre construction costs in the city, which determined that the average construction costs are $981,250 per acre; and Page 2 File Number: 16 -385 Enactment Number: RES57 -2016 WHEREAS, as market costs naturally fluctuate from year to year, the Fees will be adjusted annually to reflect these fluctuations using the All Urban Consumers Consumer Price Index, San Francisco - Oakland -San Jose (AUC -CPI), which is a fair estimate of market fluctuations in the city and surrounding areas; and WHEREAS, the City has caused to be prepared an impact study entitled "City of South San Francisco Parkland Acquisition and Park Construction Fees Quimby Act and Mitigation Fee Act Report," which report was prepared by Municipal Resources Group, LLC dated March 2016 ( "Fee Study'), a copy of which is on file in the Office of the City Clerk and Parks and Recreation Administrative Office and is hereby made a part of this Resolution by reference; and WHEREAS, the Fee Study analyzes the proposed Parkland Acquisition Fee and Park Construction Fee and describes the amounts necessary to fund City park and recreational facilities and a description of the reasonable relationship between the Fees and the new development requiring such parkland and park facilities; and WHEREAS, the Mitigation Fee Act and other applicable law permit, but do not require, establishing fees, such as the Parkland Acquisition Fee and the Park Construction Fee, for the purpose of defraying the cost of public facilities and/or services related to development; and WHEREAS, other means besides development impact fees exist by which cities may provide for the cost of public facilities and/or services related to development; such other means include, but are not limited to, economic development activity such as attraction and retention of businesses that are a source of jobs, tax revenue and other economic and social benefits to the City and community; and WHEREAS, in accordance with Section 66019 of the Mitigation Fee Act, at least fourteen (14) days prior to the public hearing at which the Ordinance was considered, notice of the time and place of the hearing was mailed to eligible interested parties who filed written requests with the City for mailed notice of meetings on new or increased fees or service charges; and WHEREAS, in accordance with Government Code Section 66019, the Fee Study was available for public inspection, review, and comment for ten (10) days prior to the public hearing at which the Council considered the Ordinance; and WHEREAS, ten (10) days advance notice of the public hearing at which the Ordinance was considered was given by publication in accordance with Government Code Section 6062a; and WHEREAS, the text of this Resolution was included in the record at the public hearing at which the Ordinance was considered; and WHEREAS, the action taken by the Ordinance and this Resolution 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 the California Environmental Quality Act ( "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)). 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 Page 3 File Number: 16 -385 Enactment Number: RES 57 -2016 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; and WHEREAS, pursuant to the Mitigation Fee Act, the City seeks to adopt this Resolution to set the Fees under the Ordinance in order to mitigate the impacts caused by new development by providing for the payment of development impact fees necessary for the City to acquire property and construct parks and recreational facilities and to maintain desirable levels of parks and recreational facilities for new and existing residents. NOW THEREFORE, BE IT RESOLVED that City Council of the City of South San Francisco finds as follows: I. FINDINGS A. After considering the Fee Study, the testimony received at the noticed public meeting at which the Ordinance and Resolution were considered, the accompanying staff report, the General Plan, the General Plan EIR, the Parks and Recreation Master Plan and all correspondence received at or prior to the public meeting (the "Record "), the Council approves and adopts the Fee Study; and the City Council further finds that the future development in the City will generate the need for the park and recreational facilities necessitating adoption of the Ordinance and this Resolution. B. The City currently provides park and recreational facilities to the community and the fees set forth in the Ordinance and this Resolution will be used to maintain current levels and assist the City in meeting its stated goals for park and recreational facilities under the General Plan, Parks and Recreation Master Plan and other applicable plans. As such, the Parkland Acquisition Fee and Park Construction Fee established under the Ordinance and this Resolution as it relates to development within the City is not a "project" within the meaning of CEQA (Pub.Res. Code §21080(b)(8)(D)). C. In adopting the Ordinance and this Resolution, the City Council is exercising its powers under Article XI, § §5 and 7 of the California Constitution, Chapter 5 of Division 1 of the Government Code ( "Mitigation Fee Act"), commencing with Section 66000, collectively and separately. D. The Record establishes: 1. In accordance with Section 66001, subdivision a, paragraph 1 of the Mitigation Fee Act, the purpose of the Parkland Acquisition Fee and Park Construction Fee, set forth in the Ordinance and this Resolution, as specified in Chapter III of the Fee Study, is to provide funding to achieve the City's goal of maintaining existing service levels and to ensure adequate park and recreational facilities are provided in the future to meet the needs of South San Francisco residents as established in the General Plan and Parks and Recreation Master Plan. Standards for the desired level of parks and recreational facilities have been identified which have been used as the basis to establish the Fees under the Ordinance and this Resolution. 2. In accordance with Section 66001, subdivision a, paragraph 2 of the Mitigation Fee Act, the Fees collected pursuant to this Resolution shall be used to acquire parkland construct park and recreational facilities at the levels identified in the General Plan, Parks and Recreation Master Plan and the Fee Study. Page 4 File Number: 16 -385 Enactment Number: RES57 -2016 3. In accordance with section 66001, subdivision a, paragraph 3 of the Mitigation Fee Act, there is a reasonable relationship between the Fees' use (to pay for acquisition of parkland and construction of park and recreational facilities) and the type of development for which the Fees are imposed in that the Fees will be applied to residential development in the city, which will generate demands for park and recreational facilities. 4. In accordance with Section 66001, subdivision a, paragraph 4, there is a reasonable relationship between the need for the parkland acquisition and park construction and the types of development projects on which the Fees are imposed in that the Fees will be applied to new residential development in the city, which will attract new residents that will place a greater demand on park and recreational facilities. 5. In accordance with Section 66001, subdivision b of the Mitigation Fee Act, there is a reasonable relationship between the amount of the Fees and the cost of providing the parkland and park and recreational facilities attributable to the development in the city upon which the Fees are imposed in that the Fees have been calculated by apportioning the cost of parkland acquisition and park facilities construction to the number of residents attracted by each type of new residential unit. 6. The cost estimates set forth in the Fee Study are reasonable estimates for acquiring parkland and constructing park and recreational facilities and the Fees expected to be generated by future development will not exceed the projected cost of acquiring parkland and constructing park and recreational facilities. 7. The method of allocation of the Fees to particular developments bears a fair relationship and is roughly proportional to each development's burden on and benefits from the park and recreational facilities to be funded by the Fees, in that the Fees are calculated based on the number of residents each particular development will attract. 8. The Fee Study is a detailed analysis of how parks and recreational services will be affected by development in the city and the parks and recreational facilities necessary to accommodate that development. 9. The Fees are consistent with the General Plan and pursuant to Government Code Section 65913.2, the City Council has considered the effects of the Fees with respect to the City's housing needs as established in the housing element of the General Plan. 10. The Fee amounts set forth in this Resolution include the fair and reasonable costs of administration for the Fee programs as determined by the Finance Director and are within the requirements of the Mitigation Fee Act and other applicable law. 11. The annual fee adjustment provided for in this Resolution reasonably approximates the fluctuation in market costs in that it allows for adjustment in accordance with the All Urban Consumers Consumer Price Index, San Francisco - Oakland -San Jose (AUC -CPI). 12. The average fair market value of land in the city as set by this Resolution is a fair and reasonable calculation of such fair market value as determined by a qualified appraiser in accordance with the requirements of the Ordinance. Page 5 File Number: 16 -385 Enactment Number: RES57 -1016 13. The average per acre construction costs in the city as set by this Resolution is a fair and reasonable calculation of such construction as determined by a qualified architecture or construction firm in accordance with the requirements of the Ordinance NOW, THEREFORE, BE IT FURTHER RESOLVED by the City Council of the City of South San Francisco: Consumer Price Index, San Francisco - Oakland -San Jose (AUC -CPI). 1. Parkland Acquisition and Park Construction Fee Imposed Pursuant to the Mitigation Fee Act and Chapter 8.67 of the South San Francisco Municipal Code, a Parkland Acquisition Fee and Park Construction Fee shall be imposed and paid at the times and in the amounts and otherwise apply and be administered as prescribed in this Resolution and the Ordinance on each type of development set forth in Ordinance. 2. Amount of Fees a. Parkland Acquisition Fee. The amount of the Parkland Acquisition Fee shall be determined by the calculation set forth in Section 8.67.060(b) of the South San Francisco Municipal Code and the following: i. Average Fair Market Value per Acre. For purposes of Section 8.67.060(b) and (d), the average fair market value of land per acre in the city shall be set at $3,000,000. ii. Annual Adjustment. Pursuant to Section 8.67.060(g), the Fee shall be adjusted annually in accordance with the All Urban Consumer Price Index, San Francisco - Oakland -San Jose (AUC -CPI). b. Park Construction Fee. The amount of the Park Construction Fee shall be determined by the calculation set forth in Section 8.67.060(c) of the South San Francisco Municipal Code and the following: i. Average Construction Cost per Acre. Pursuant to Section 8.67.060(e), the average construction cost per acre in the city shall be set at $981,250. ii. Annual Adjustment. Pursuant to Section 8.67.060(g), the Fee shall be adjusted annually in accordance with the All Urban Consumer Price Index, San Francisco - Oakland -San Jose (AUC -CPI). c. Administrative Fee. Pursuant to Section 8.67.060(1) of the South San Francisco Municipal Code, the administrative fee for implementing the Ordinance and administering the Fees shall be $1500. 3. AWlication All development projects identified in Section 8.67.050 of the South San Francisco Municipal Code are subject to the Parkland Acquisition Fee and Park Construction Fee. Page 6 File Number: 16 -385 4. Use of Fees Enactment Number: PES 57 -2116 Funds collected pursuant to the Parkland Acquisition Fee and the Park Construction shall only be used for the purposes outlined in Section 8.67.070 of the South San Francisco Municipal Code. 5. Periodic Review a. During each fiscal year, the City Manager, or his designee, shall prepare a report for the City Council, pursuant to Government Code Section 66006, identifying all information required by Section 66006, including the balance of all Fee revenues in the Fee accounts. b. Pursuant to Government Code Section 66002, the City Council shall also review, as part of any adopted City Capital Improvement Plan each year, the approximate location, size, time of availability and estimates of cost for all park acquisition and park facilities construction to be financed with the Fees. The City Council shall make findings identifying the purpose to which the existing Fee revenue balances are to be put and demonstrating a reasonable relationship between the Fee sand the purpose for which it is charged. 6. Administrative Guidelines The City Council may, by resolution, adopt administrative guidelines to provide procedures for administrative aspects of the Fees. 7. Effective Date This Resolution shall become effective on the date of adoption of this Resolution. In accordance with Government Code Section 66017, the Fees set by this Resolution shall be effective 60 days from the effective date of this Resolution. 8. Severability. Each component of the Fees and all portions of this Resolution are severable. Should any individual component of the Fees or other provision of this Resolution be adjudged to be invalid and unenforceable, the remaining component or provisions shall be and continue to be fully effective, and the Fees shall be fully effective except as to that component that has been judged to be invalid. 2639182.1 Page 7 File Number: 16 -385 Enactment Number: RES 57 -2016 At a meeting of the City Council on 5/11/201 Garbarino, that this Resolution be a2ffoove Attest by mmtion was made by Liza Normandy, seconded by Richard motion passed.