HomeMy WebLinkAboutReso 89-2019 (19-614)City of South San Francisco P.O. Box 711 (City Hall,
400 Grand Avenue)
South San Francisco, CA
lipCity Council
Resolution: RES 89-2019
File Number: 19-614 Enactment Number: RES 89-2019
RESOLUTION SETTING THE PARKLAND ACQUISITION FEE
AND PARK CONSTRUCTION FEE TO REFLECT AMENDMENTS
TO CHAPTER 8.67 TO MITIGATE THE IMPACT OF NEW
DEVELOPMENT ON PARK AND RECREATIONAL FACILITIES
PURSUANT TO 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 employees working in the City; 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 development projects attract new residents and employees to the city, which
generates increased demand for parks and recreational facilities and impacts existing park service levels;
and
WHEREAS, in 2016, the City adopted an ordinance ("Park Fee Ordinance" or "Ordinance")
imposing a Parkland Acquisition Fee and a Park Construction Fee ("Park Fees" or "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
City of South San Francisco Page 1
File Number. 19-614
Enactment Number. RES 89-2019
product provided 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 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, the City has determined that City park and recreation facilities are reaching
capacity and refurbishing and expanding certain existing park facilities is a cost-effective and efficient
way to serve future residents and employees, and to maintain existing levels of service; and
WHEREAS, the City commissioned an additional park fee analysis to supplement the 2016
study prepared by Municipal Resources Group supporting the adoption of the original Ordinance. Such
additional park fee analysis was prepared in order to confirm the method for utilizing Park Fees for
refurbishment and expansion projects, analyze the types of refurbishment and expansion projects that the
City can utilize Park Fees for, restructure the existing Park Fee reduction factors to increase Park
Construction Fees to fund refurbishment projects, and reduce Park Acquisition Fees commensurately,
while not increasing the total amount of Park Fees, and to update the average construction cost per acre
to reflect current market conditions ("2019 Supplemental Report"); and
WHEREAS, in furtherance of the goals of the 2019 Supplemental Report, the City Council
adopted an amendment to the Ordinance ("Amendment") in order to implement certain necessary
refinements identified in the Report and to make other minor clarifications, additions, and refinements in
order to ensure that the City is collecting the necessary funds to provide adequate park facilities needed
to support new development; 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 adjustments of the Fees will be set by resolution of the City Council; and
WHEREAS, the Amendment states that any discount factor applied to the Fees shall be adopted
by resolution of the City Council; and
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File Number., 19-614 Enactment Number: RES 89-2019
WHEREAS, this Resolution includes the applicable discount factors to be applied to the Fees;
and
WHEREAS, pursuant to the authority under Section 8.67.060(h), the City adopted an
administrative fee of $700 in 2018 in order to cover the cost of administering the Park Fee Ordinance;
and
WHEREAS, as part of the adoption of the Ordinance in 2016, the City 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, as part of the adoption of the Ordinance in 2016, 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
WHEREAS, pursuant to Section 8.67.060(i), the average construction cost per acre was adjusted by
Engineering Record New Construction Cost Index ( CCI) for the San Francisco area in January of 2018
by 3.94 percent to $1,019,911; and
WHEREAS, pursuant to Section 8.67.060(g), the City is authorized to obtain a comprehensive
estimate of the average construction costs per acre to reflect changes in the cost of construction, but such
estimate must be approved by resolution of the City Council and may not be conducted more than once
per year. The City has not conducted a comprehensive construction cost estimate since 2016 and such
costs have significantly increased since then; and
WHEREAS, the City compiled estimates obtained from SSA Landscape Architecture and Verde
Design in May of 2018 for construction costs for six representative South San Francisco park
construction projects. As part of the 2019 Supplemental Report, these estimates were used to formulate
an updated construction cost per acre estimate. The 2018 cost estimates were escalated by an
Engineering News Record - Construction Cost Index factor of 2.65% from May 2018 to May 2019.
Group 4 Architecture Research + Planning Inc. recommended soft costs in the range of 20% to 30% of
hard construction costs. In the updated construction cost per acre estimate, soft costs are assumed to be
30% of hard construction costs, to account for higher design and construction management costs related
to refurbishment projects; and
WHEREAS, pursuant to the updated estimate, the average construction cost per acre in the City
is $2,526,395; 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 Amendment 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 2019 Supplemental
Report was available for public inspection, review, and comment for ten (10) days prior to the public
hearing at which the Council considered the Amendment; and
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File Number: 19-614 Enactment Number: RES 89-2019
WHEREAS, ten (10) days advance notice of the public hearing at which the Amendment was
considered was given by publication in accordance with Government Code Section 6062a; and
WHEREAS, the action taken by the Amendment 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 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,
refurbish, and expand parks and recreational facilities to serve new residents and employees and to
maintain desirable levels of parks and recreational facilities for new and existing residents and
employees.
NOW THEREFORE, BE IT RESOLVED that City Council of the City of South San Francisco finds as
follows:
I. FINDINGS
A. After considering the 2019 Supplemental Report, the testimony received at the noticed public
meeting at which the Amendment 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 2019
Supplemental Report; 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 Amendment 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 adjusted under the Amendment 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 Amendment 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.
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File Number. 19-614
D. The Record establishes:
Enactment Number: RES 89-2019
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 Amendment and this
Resolution, as specified in Chapter III of the Fee Study and the 2019 Supplemental Report, 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 and
employees 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 Amendment and this Resolution.
To the extent that the revisions provided for in the Amendment and this Resolution result in an
increase in the Park Construction Fee, the City will continue to use the proceeds of the Park Construction
Fee for the purpose of constructing new park facilities on new parkland acquired by the City and will
also use the proceeds of the Park Construction Fee for the purpose of refurbishing and expanding
existing park facilities to serve new residents and employees, to maintain the existing level of service for
all residents and employees, and to ensure continued levels of service that are consistent with the
General Plan.
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 and construct, refurbish, and
expand park and recreational facilities, including expanding playgrounds, constructing improvements to
sports fields and sports courts, adding passive park facilities such as picnic and sitting areas, installing
night lighting, paths, grading, drainage and irrigation, and implementing other similar refurbishment and
expansion projects, to maintain existing levels of service and meet the levels identified in the General
Plan, Parks and Recreation Master Plan and the Fee Study.
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,
refurbishment, and expansion of park and recreational facilities) and the type of development for which
the Fees are imposed in that the Fees will be applied to new development in the city, which will generate
demands for park and recreational facilities.
To the extent that the revisions provided for in the Amendment and this Resolution result in an
increase in the Park Construction Fee and those Fees are used for refurbishment and expansion projects,
the Park Construction Fee is levied upon new residential and non-residential (commercial) development
projects. New residents in new residential development projects and new employees in new
non-residential development projects will place additional demands on park and recreational facilities,
which are near or at capacity. Expanding playgrounds, improving sports fields and sports courts,
building passive park facilities, installing lighting, paths, grading, drainage and irrigation, and
implementing other similar refurbishment and expansion projects will address and mitigate the
additional impacts and demands created by future residential and nonresidential development projects.
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File Number. 19-614
Enactment Number: RES 89-2019
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 development in the city,
which will attract new residents and employees that will place a greater demand on park and recreational
facilities.
To the extent that the revisions provided for in the Amendment and this Resolution result in an
increase in the Park Construction Fee and those Fees are used for refurbishment and expansion projects,
the Park Construction Fee is levied upon new residential development projects and new non-residential
development projects, which generate new residents and new employees in the community. The
refurbished and expanded park facilities will serve the needs of new residents in residential development
projects and new employees in non-residential development projects by expanding active and passive
park facilities and areas and by enhancing access and adding hours of use for residents and employees.
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 and employees attracted by each type of new residential unit and
additional square footage in each type of new non-residential space.
To the extent that the revisions provided for in the Amendment and this Resolution result in an
increase in the Park Construction Fee and those Fees are used for refurbishment and expansion projects,
the Park Construction Fee has been updated with 2019 estimated park construction costs specific to the
types of park facilities and improvements to be undertaken by the City of South San Francisco.
The Park Construction Fees are calculated by apportioning the cost of constructing park facilities and
improvements to the number of residents generated by each type of new residential unit and the number
of employees generated per one -thousand square feet of new space for each type of non-residential
development project. Confirming that Park Construction Fee can be used for refurbishment and
expansion construction projects does not alter the calculation of the Park Construction Fee and each new
development project will be charged a Park Construction Fee commensurate with its impact on all park
and recreational facilities.
6. The cost estimates set forth in the 2016 Study and the 2019 Supplemental Report provide reasonable
estimates for the costs of acquiring parkland and constructing, expanding, and refurbishing 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, expanding, and refurbishing park and recreational
facilities.
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File Number. 19-614
Enactment Number. RES 89-2019
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 and
employees each particular development will attract.
8. The 2019 Supplemental Report is a detailed analysis of how using Park Construction Fees to expand
and refurbish parks and recreational facilities and services is an efficient and cost-effective way to
address demands for such facilities generated by new development in the City and identifying 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 adjustments provided for in the Amendment and this Resolution reasonably
approximate the fluctuations in market costs in that it allows for adjustments in accordance with the All
Urban Consumers Consumer Price Index, San Francisco -Oakland -San Jose (AUC -CPI) and the
Engineering News Record Construction Cost Index (CCI) for the San Francisco area.
12. The average fair market value of land in the city reflected in 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.
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:
1. Parkland Acquisition and Park Construction Fee Undated and Imposed.
The Parkland Acquisition Fee and Park Construction Fee imposed pursuant to the Mitigation Fee Act
and Chapter 8.67 of the South San Francisco Municipal Code, are hereby updated and shall be imposed
at the revised rates outlined in this Resolution and shall be 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 the Ordinance.
2. Amount of Fees.
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File Number. 19-614
Enactment Number. RES 89-2019
a. Residential Parkland Acquisition Fee. The amount of the Residential 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. Discount Factor. In accordance with Section 8.67.060(b) and 8.67.060(k), in calculating the
Residential Parkland Acquisition Fee, such fee shall be reduced by a factor of .904.
iii. Annual Adjustment. Pursuant to Section 8.67.0606), the Fee maybe adjusted annually in
accordance with the All Urban Consumer Price Index, San Francisco -Oakland -San Jose (AUC -CPI).
b. Non -Residential Parkland Acquisition Fee. The amount of the Non -Residential Parkland
Acquisition Fee shall be determined by the calculation set forth in Section 8.67.060(d) 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. Discount Factor. In accordance with Section 8.67.060(d) and 8.67.060(k), in calculating the
Non -Residential Parkland Acquisition Fee, such fee shall be reduced by a factor of 1.0.
iii. Annual Adjustment. Pursuant to Section 8.67.0600), the Fee maybe adjusted annually in
accordance with the All Urban Consumer Price Index, San Francisco -Oakland -San Jose (AUC -CPI).
c. Residential Park Construction Fee. The amount of the Residential 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(g), the average construction
cost per acre in the city shall be set at $2,526,395.
ii. Discount Factor. In accordance with Section 8.67.060(c) and 8.67.060(k), in calculating the
Residential Park Construction Fee, such fee shall not be reduced by any factor and the full fee shall be
charged.
iii. Annual Adjustment. Pursuant to Section 8.67.060(i), the Fee maybe adjusted annually in
accordance with the Engineering News Record Construction Cost Index (CCI) for the San Francisco area
(CCI).
d. Non -Residential Park Construction Fee. The amount of the Non -Residential Park Construction
Fee shall be determined by the calculation set forth in Section 8.67.060(e) of the South San Francisco
Municipal Code and the following:
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File Number. 19-614 Enactment Number. RES 89-2019
i. Average Construction Costper Acre. Pursuant to Section 8.67.060(g), the average construction
cost per acre in the city shall be set at $2,526,395.
ii. Discount Factor In accordance with Section 8.67.060(e) and 8.67.060(k), in calculating the
Non -Residential Park Construction Fee, such fee shall be reduced by a factor of .602.
iii. Annual Adjustment. Pursuant to Section 8.67.060(i), the Fee maybe adjusted annually in
accordance with the Engineering News Record Construction Cost Index (CCI) for the San Francisco area
(CCI).
e. Administrative Fee. Pursuant to Section 8.67.060(h) of the South San Francisco Municipal Code,
the administrative fee for implementing the Ordinance and administering the Fees shall be $700.
f. Posting of Discount Factor Resolution. In accordance with Section 8.67.060(k), this Resolution
shall be posted on the City's website after adoption by the City Council.
3. Application
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.
4. Use of Fees
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, refurbishment, and
expansion 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.
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File Number: 19-614
7. Effective Date
Enactment Number: RES 89-2019
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.
At a meeting of the City Council on 7/10/2019, a motion was made by Mark Nagales, seconded by Richard
Garbarino, that this Resolution be approved. The motion passed.
Yes: 5 Mayor Matsumoto, Vice Mayor Garbarino, Councilmember Addiego,
Councilmember Nagales, and Councilmember Nicolas
Attest by V 4 ZL d42-�
sa Govea Acosta
1
City of South San Francisco Page 10