HomeMy WebLinkAboutReso 131-2020 (20-771)CITY OF SOUTH SAN FRANCISCO
PARK LAND ACQUISITION AND PARK CONSTRUCTION FEES
QUIMBY ACT AND MITIGATION FEE ACT REPORT
MUNICIPAL RESOURCE GROUP, LLC
675 HARTZ AVENUE, SUITE 300
DANVILLE, CA 94526
(530) 878-9100
MARCH 2016
EXHIBIT A
CITY OF SOUTH SAN FRANCISCO
PARK LAND ACQUISITION AND PARK CONSTRUCTION FEES
QUIMBY ACT AND MITIGATION FEE ACT REPORT
Table of Contents
EXECUTIVE SUMMARY ......................................................................................................................................... .1
I. INTRODUCTION AND BACKGROUND INFORMATION ................................................................... 8
II. QUIMBY ACT PARK LAND ACQUISITION IN‐LIEU FEE ............................................................... 15
III. PARK LAND ACQUISITION FEE – MITIGATION FEE ACT ........................................................... 20
IV. PARK CONSTRUCTION FEE .................................................................................................................... 26
V. PARK ACQUISITION AND PARK CONSTRUCTION FEES SUMMARY ...................................... 31
VI. ANNUAL FEE ADJUSTMENT ................................................................................................................... 32
VII. COMPLIANCE REQUIREMENTS ............................................................................................................ 33
ATTACHMENT 1: DANA PROPERTY ANALYSIS WEIGHTED AVERAGE MARKET VALUES
ATTACHMENT 2: GROUP 4 ARCHITECTURE, RESEARCH + PLANNING INC. PARK
CONSTRUCTION BUDGET
CITY OF SOUTH SAN FRANCISCO
PARK LAND ACQUISITION AND PARK CONSTRUCTION FEES
QUIMBY ACT AND MITIGATION FEE ACT REPORT
EXECUTIVE SUMMARY
______________________________________________________________________________
The City of South San Francisco adopted an ordinance in 1981 requiring certain
residential developments to dedicate land for park and recreation purposes, or to pay a fee
in‐lieu of the land dedication. The General Plan, Parks + Recreation Master Plan and the
East of 101 Area Plan have revised the City’s park and recreation goals to include
acquisition and construction of three acres of parks per one‐thousand residents for all new
residential development projects, and acquisition and construction of 0.5 acres per one‐
thousand employees for all new commercial development projects.
The City has engaged Municipal Resource Group LLC to prepare an analysis and
Report with recommendations to update the Park Land Acquisition Fee and to adopt a Park
Construction Fee.
The fees calculated in this Report are the maximum fees that the City may adopt for
Park Land Acquisition and Park Construction. The City may adopt fees as calculated in this
Report, or may discount the fees and explore other methods to finance the achievement of
its park goals.
AUTHORITY TO ADOPT PARK LAND ACQUISITION FEES AND PARK CONSTRUCTION FEES
The City’s goal of three acres per thousand residents can continue to be partially
achieved through the authority of the Quimby Act. Generally, Quimby Act land dedication
and in‐lieu fee requirements apply to new subdivisions, but not to multifamily residential
development projects (rental units) or commercial development projects. To establish fee
requirements for these other development projects, cities may adopt a Park Land
Acquisition Fee for future residential and commercial development projects that are not
subject to the Quimby Act, based on the authority provided in the Mitigation Fee Act.
The proposed Quimby Act In‐lieu Fee and the Mitigation Fee Act Park Land
Acquisition Fee are intended to provide funds to acquire park land to serve new residents
and employees.
A separate Park Construction Fee is proposed to pay for the construction of park
facilities and improvements to serve new residents and employees, also under the authority
of the Mitigation Fee Act.
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Park Land Acquisition and Park Construction Fees
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CURRENT DEDICATION REQUIREMENTS AND IN‐LIEU FEES
The City of South San Francisco Municipal Code (Chapter 19.24) establishes the
existing procedures for the Quimby Act dedication of land or the payment of an in‐lieu fee.
The Municipal Code requires the City to obtain a separate appraisal for each development
project that is subject to the Quimby Act. The City then calculates the in‐lieu fee per
residential unit based on each appraisal and other criteria established in the Municipal
Code.
Under existing Municipal Code procedures, the Quimby Act in‐lieu fees can vary
widely based on the appraisals of the subject properties. Instead of these individual
appraisals, this Report recommends the use of a single market land valuation for park land
acquisition fees for all future residential and commercial development projects and
proposes a common fee for similar residential development projects and commercial
development projects.
PARK LAND ACQUISITION FEES ‐ RESIDENTIAL DEVELOPMENTS
The proposed methodology for calculating both the Quimby Act In‐lieu fees for
residential subdivisions and the Mitigation Fee Act fee for all other residential development
projects is based on the City’s standard of three acres of park land per one‐thousand
residents (.003 acres per resident), the number of residents in each residential
classification, and the market value of land.
The acres required for each residential classification (Units in Structure) are
identified in Table ES‐1 by multiplying .003 acres per resident by the average number of
residents in each land use classification.
Table ES‐1: Park Land Acres Required per Residential Unit
Units in Structure Acres per
Resident
Residents per
Unit
Park Land Acres
Required per Unit
1 (single‐family residential unit) 0.003 3.45 0.01035
2 to 4 (duplex to four‐plex) 0.003 2.98 0.00894
5 to 19 0.003 2.53 0.00759
20 to 49 0.003 2.04 0.00612
50 or more 0.003 1.78 0.00534
Mobile home 0.003 2.65 0.00795
Source: City of South San Francisco General Plan and Park + Recreation Master Plan; United States
Census Bureau, 2014 American FactFinder, Table B25124; Municipal Resource Group LLC
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Park Land Acquisition and Park Construction Fees
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To determine the value of land, the City contracted with Dana Property Analysis to
prepare an analysis of the average market value of vacant land, estimated at $3,000,000 per
acre. Table ES‐2 calculates the Park Land Acquisition Fee per residential unit by
multiplying the park land acres required per unit (from Table ES‐1) by the $3,000,000
market value per acre.
Table ES‐2: Park Land Acquisition Fee per Residential Unit
Units in Structure Park Land Acres
Required per Unit
Market Value of
Land per Acre Fee per Unit
1 (single‐family residential unit) 0.01035 $3,000,000 $31,050
2 to 4 (duplex to four‐plex) 0.00894 $3,000,000 $26,820
5 to 19 0.00759 $3,000,000 $22,770
20 to 49 0.00612 $3,000,000 $18,360
50 or more 0.00534 $3,000,000 $16,020
Mobile home 0.00795 $3,000,000 $23,850
Source: City of South San Francisco General Plan and Parks + Recreation Master Plan; United States
Census Bureau, 2014 American FactFinder, Table B25124; Dana Property Analysis; Municipal
Resource Group LLC
PARK LAND ACQUISITION FEES – COMMERCIAL DEVELOPMENTS
The South San Francisco General Plan and the East of 101 Area Plan establish a
standard of 0.5 acres per one‐thousand new employees. Fees on commercial projects are
typically applied per one‐thousand square feet of building space. The number of employees
per one‐thousand square feet of building space varies among commercial uses.
Table ES‐3 calculates the park land acreage required per one‐thousand square feet
of new commercial building space by multiplying the number of employees per one‐
thousand square feet by the acreage required per employee (0.5 acres per one‐thousand
employees is equal to .0005 acres per employee).
Table ES‐3: Park Land Acreage Required per One‐thousand Square Feet of Commercial Space
Classification Employees per
1,000 Square Feet
Park Land Acres
Required per Employee
Park Land Acres
Required per 1,000
Square Feet
Commercial/Retail 2.50 .0005 acres .00125 acres
Hotel/Visitor 2.38 .0005 acres .00119 acres
Office/R&D 2.22 .0005 acres .00111 acres
Industrial 1.05 .0005 acres .00052 acres
Source: City of South San Francisco General Plan Land Use Element, page 55; Municipal Resource
Group LLC
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The Park Land Acquisition Fee is based on the amount of land required to meet the
applicable park land standard, and the $3,000,000 market value of land.
Table ES‐4 calculates the fee per one‐thousand square feet of commercial space by
multiplying the required acres per 1,000 square feet (from Table ES‐3) by the $3,000,000
market value per acre.
Table ES‐4: Park Land Acquisition Fee per One‐thousand Square Feet of Commercial Space
Classification Park Land Acres per
1,000 Square Feet
Market Value of Land
per Acre
Fee per 1,000 Square
Feet
Commercial/Retail .00125 acres $3,000,000 $3,750
Hotel/Visitor .00119 acres $3,000,000 $3,571
Office/R&D .00111 acres $3,000,000 $3,333
Industrial .00052 acres $3,000,000 $1,571
Source: City of South San Francisco General Plan Land Use Element, page 55; Dana Property Analysis;
Municipal Resource Group LLC
PARK CONSTRUCTION FEES
While the Quimby Act In‐lieu Fee and the Park Land Acquisition Fee will provide for
the acquisition of park land, the proposed Park Construction Fee provides funds for the
construction of park facilities and improvements on the land acquired with the proceeds
from the other fees.
PARK CONSTRUCTION FEES ‐ RESIDENTIAL DEVELOPMENTS
The acreage to be improved with park facilities to serve residential development is
the same as established for park land acquisition: three acres per one‐thousand future
residents.
The Park Construction Fee is based on the amount of land required to be
improved and the cost of constructing park facilities and improvements. The average hard
and soft construction cost per acre is $981,250, as estimated by Group 4 Architecture,
Research + Planning, Inc.
Table ES‐5 calculates the fee per residential unit by multiplying the required acres
per unit by the $981,250 construction cost per acre per acre.
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Table ES‐5: Park Construction Fee per Residential Unit
Units in Structure Park Acres per
Unit
Construction Cost
per Acre Fee per Unit
1 (single‐family residential unit) 0.01035 $981,250 $10,156
2 to 4 (duplex to four‐plex) 0.00894 $981,250 $ 8,772
5 to 19 0.00759 $981,250 $ 7,448
20 to 49 0.00612 $981,250 $ 6,005
50 or more 0.00534 $981,250 $ 5,240
Mobile home 0.00795 $981,250 $ 7,801
Source: City of South San Francisco General Plan and Park + Recreation Master Plan; United States
Census Bureau, 2014 American FactFinder, Table B25124; Group 4 Architecture, Research +
Planning Inc.; Municipal Resource Group LLC
PARK CONSTRUCTION FEES ‐ COMMERCIAL DEVELOPMENTS
The South San Francisco General Plan and the East of 101 Area Plan establish a
standard of 0.5 acres per one‐thousand new employees in the City. The acreage to be
improved with park facilities to serve commercial development is the same as established
for park land acquisition: 0.5 acres per one‐thousand employees.
Table ES‐6 calculates the park acreage required to be improved per one‐thousand
square feet of new commercial building space by multiplying the employees per one‐
thousand square feet by the acreage required per employee.
Table ES‐6: Park Acres to be Improved per One‐thousand Square Feet of Commercial Space
Classification Employees per
1,000 Square Feet
Park Acres Required
per Employee
Acres to be Improved per
1,000 Square Feet
Commercial/Retail 2.50 .0005 acres .00125 acres
Hotel/Visitor 2.38 .0005 acres .00119 acres
Office/R&D 2.22 .0005 acres .00111 acres
Industrial 1.05 .0005 acres .00052 acres
Source: City of South San Francisco General Plan Land Use Element, page 55; Dana Property Analysis;
Municipal Resource Group LLC
Table ES‐7 calculates the fee per one‐thousand square feet of commercial space by
multiplying the required acres per employees (from Table ES‐6) by the $981,250
construction cost per acre per acre.
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Table ES‐7: Park Construction Fee per One‐thousand Square Feet of Commercial Space
Classification Park Acres per 1,000
Square Feet
Construction Cost
per Acre
Fee per 1,000 Square
Feet
Commercial/Retail .00125 acres $981,250 $1,227
Hotel/Visitor .00119 acres $981,250 $1,168
Office/R&D .00111 acres $981,250 $1,090
Industrial .00052 acres $981,250 $ 514
Source: City of South San Francisco; Parks + Recreation Master Plan; Group 4 Architecture, Research
+ Planning Inc.; Municipal Resource Group LLC
FEE SUMMARY
Table ES‐8 presents the proposed Park Land Acquisition Fees (Quimby Act and
Mitigation Fee Act) and the Park Construction Fees for residential units. The City may adopt
fees equal to, or below the amounts identified in Table ES‐8.
Table ES‐8: Total Park Fees per Residential Unit
Units in Structure Park Land
Acquisition Fee
Park
Construction Fee Total Park Fees
1 (single‐family residential unit) $31,050 $10,156 $41,206
2 to 4 (duplex to four‐plex) $26,820 $ 8,772 $35,592
5 to 19 $22,770 $ 7,448 $30,218
20 to 49 $18,360 $ 6,005 $24,365
50 or more $16,020 $ 5,240 $21,260
Mobile home $23, 850 $ 7,801 $31,651
Source: City of South San Francisco General Plan and Parks + Recreation Master Plan; United States
Census Bureau, 2014 American FactFinder, Table B25124; Dana Property Analysis; Group 4
Architecture + Planning Inc.; Municipal Resource Group LLC
Table ES‐9 presents the proposed Park Land Acquisition Fees and the Park
Construction Fees for commercial development projects. The City may adopt fee equal to, or
below the amounts identified in Table ES‐9.
Table ES‐9: Total Park Fees per One‐thousand Square Feet of Commercial Space
Classification Park Land
Acquisition Fee
Park
Construction Fee Total Park Fees
Commercial/Retail $3,750 $1,227 $4,977
Hotel/Visitor $3,571 $1,168 $4,739
Office/R&D $3,333 $1,090 $4,423
Industrial $1,571 $ 514 $2,085
Source: City of South San Francisco General Plan and Parks + Recreation Master Plan; United States
Census Bureau, 2014 American FactFinder, Table B25124; Dana Property Analysis; Group 4
Architecture + Planning Inc.; Municipal Resource Group LLC
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QUIMBY ACT AND MITGATION FEE ACT REQUIREMENTS; FEE ADJUSTMENTS
The Report provides recommended findings to adopt the Quimby Act In‐lieu fees
and the Mitigation Fee Act fees. It also provides a summary of the statutory and
administrative requirements for both Acts and proposes mechanisms to adjust the fees on
an annual basis.
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I. INTRODUCTION AND BACKGROUND INFORMATION
______________________________________________________________________________
The City of South San Francisco adopted an ordinance in 1981 requiring certain new
residential subdivisions to dedicate land for park and recreation purposes, or to pay a fee
in‐lieu of the land dedication. The City subsequently adopted a revised General Plan, an
East of 101 Area Plan and a revised Parks + Recreation Master Plan with new park and
recreation goals.
The purpose of this analysis and Report is to provide recommendations to revise
and update the Park Land Acquisition In‐lieu Fee ordinance, and to adopt a Park
Construction Fee, to be consistent with and to implement the goals of the General Plan, the
Parks + Recreation Master Plan and the East of 101 Area Plan.
The fees calculated in this Report are the maximum fees that the City may adopt for
Park Land Acquisition and Park Construction. The City may adopt fees as calculated in this
Report, or may discount the fees and explore other methods to finance the achievement of
its park goals.
GENERAL PLAN GOALS
The City of South San Francisco General Plan, adopted in 1999, contains several
Guiding Policies and Implementing Policies regarding park and recreation facilities. The
General Plan provides for new park land in South San Francisco by setting a park land
acreage standard for new residents and employees. The following policies are articulated in
the General Plan:
“Guiding Policy 5.1‐G‐1: Develop additional park land in the City, particularly in
areas lacking facilities, to meet the standards of required park acreage for new
residents and employees.”
“Implementing Policy 5.1‐I‐2: Maintain park land standards of 3.0 acres of
community and neighborhood parks per 1,000 new residents, and 0.5 acres of park
land per 1,000 new employees, to be located in employment areas.”
“Implementing Policy 5.1‐I‐3: Prefer in‐lieu fees to dedication, unless sites offered
for dedication provide features and accessibility similar in comparison to sites
shown on General Plan Figure 5‐1 and shown in more detail in the El Camino Real /
Chestnut Avenue Area Plan. Opportunities for park dedication with new residential
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development are limited. In‐lieu fees are intended to give the City flexibility to
purchase available park land elsewhere in the City.”
“Implementing Policy 5.1‐I‐10: Review the current regulations for the dedication of
park land in subdivisions to ensure that requirements are adequate to meet the
standards of the General Plan at Plan build‐out.”
PARKS + RECREATION MASTER PLAN GOALS
The Parks + Recreation Master Plan adopted in July 2015 reiterates park facility
goals:
“Goal #1: South San Francisco should provide a minimum of 3 acres of developed
park land per 1,000 residents, and 0.5 acres of park land per 1,000 employees.”
The Parks + Recreation Master Plan also provides policy guidance regarding the use
of the Mitigation Fee Act (California Government Code section 66000 et seq) for the purpose
of including all future residential and commercial development projects in a fee program to
acquire park land and to construct park facilities. The Parks + Recreation Master Plan states,
in part, beginning on page 122:
“The improvement and expansion of the Parks and Recreation Facilities as
recommended in this Master Plan and the City’s General Plan are policies based a
comprehensive needs assessment. Fees exacted under AB1600 (Mitigation Fee Act)
would be designated for carrying out the improvements set forth in these
documents, which reflect the demands that will result from the increased
population of residents and employees resulting from development projects.
Whereas the Quimby Act applies only to owner‐occupied development projects, fees
may be assessed against other development types, including rental and commercial
projects. The City should implement park fees on new development projects. This is
particularly important at this time, when the pace of rental and commercial
construction is accelerating rapidly, and the increase in the number of new
residents and employees will significantly impact the parks system” (underlining
added).
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EAST OF 101 AREA PLAN GOALS
The East of 101 Area Plan was adopted in 1994, and as its name reflects, it
establishes policies and goals for the area east of Highway 101. The East of 101 Area Plan
discusses the importance of public facilities to serve the area, and states the following
policy:
“Policy RE‐2: Developers in the East of 101 Area shall be required to either pay park
in‐lieu fees or dedicate park land based on a formula developed by the City which
estimates the demand for park and recreational facilities generated by the expected
employment of the project.”
THE QUIMBY ACT
Park land dedication requirements for residential subdivisions are authorized by
the Quimby Act, as codified in the California Government Code, beginning with Section
66477. The Quimby Act authorizes a City to require the dedication of a minimum of three
acres of land per one‐thousand residents in proposed residential subdivisions, or the
payment of an in‐lieu fee. If the amount of existing park land in the City exceeds a ratio of
three acres per one‐thousand residents, the City may require the dedication of the existing
ratio of park land per one‐thousand residents, up to a maximum of five acres per one‐
thousand future residents.
Quimby Act land dedication and in‐lieu fee requirements apply to parcels created by
a major residential subdivision (five or more parcels). They also apply to parcel maps
created by a minor residential subdivision (a subdivision of four parcels or less) if a building
permit is requested within four years of the approval of the parcel map for the minor
subdivision. The Quimby Act requirements do not apply to commercial development
projects or multifamily residential (rental) development projects, existing single family
residential lots that do not require a subdivision to develop, or minor subdivisions that do
not seek building permits within four years of receiving parcel map approval.
In the event that a proposed residential subdivision is less than fifty parcels, the City
may only require the payment of an in‐lieu fee (and not the dedication of land).
The in‐lieu fees may only be used for acquiring land and developing new park and
recreation facilities, or rehabilitating existing neighborhood parks, community parks and
recreational facilities.
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The City of South San Francisco General Plan (1999) provides park land inventory
data:
“South San Francisco currently includes 319.7 acres of parks and open space, or 5.4
acres per 1,000 residents…This includes 70 acres of developed park land
(community, neighborhood, mini and linear parks), 168.5 acres of open space and
81.2 acres of school lands. While the overall amount of park land appears to meet
the community’s needs, closer analysis reveals that only 1.2 acres of developed park
land, excluding school parks and open space, is available per 1,000 residents.”
(South San Francisco General Plan, Chapter 5: Parks, Public Facilities and Services
Element, 1999).
The Parks + Recreation Master Plan updates the current inventory of park land:
“Currently, there are approximately 1.4 acres of community, neighborhood
and mini‐park per 1,000 South San Francisco residents. Including the linear
parks, specialty parks and common greens, the ratio rises to a total of 2.7
acres of developed park land per 1,000. When Open Space is included in this
calculation, South San Francisco provides 3.9 acres of park land per 1,000
residents. Finally, including school sites that currently have joint use
facilities, the acreage increases to 5.4 per 1,000.” (Parks + Recreation Master
Plan, page 98)
Based on the current inventory of park land, the General Plan and the Park +
Recreation Master Plan establish a park land standard of three acres per one‐thousand
future residents, consistent with the minimum dedication standard in the Quimby Act.
Chapter II in this Report provides the analysis for the calculation of a Quimby Act In‐
lieu Fee based on the three acres per one‐thousand future residents’ standard established in
the General Plan and the Parks + Recreation Master Plan.
THE MITIGATION FEE ACT
Separate from the Quimby Act, authority for establishing development impact fees
for residential and commercial development projects is found in the Mitigation Fee Act, also
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known as AB 1600, as codified in the California Government Code beginning with Section
66000.
The Mitigation Fee Act permits local agencies to establish and collect a fee as a
condition of approval of a development project for the purpose of defraying the cost of
public facilities required to serve the development project. The fee may include the cost of
refurbishing existing facilities to maintain the existing level of service or to achieve an
adopted level of service that is consistent with the General Plan. The public facilities must
be identified in a capital improvement plan, the General Plan, an applicable specific plan or
other public documents. The fee may not be used to pay for existing deficiencies in public
facilities.
Under the Mitigation Fee Act, a local agency considering an action establishing,
increasing or imposing a fee as a condition of approval of a development project must do all
of the following:
1. Identify the purpose of the fee.
2. Identify the use to which the fee is to be put.
3. Determine how there is a reasonable relationship between the fee's use
and the type of development project upon which the fee is imposed.
4. Determine how there is a reasonable relationship between the need for
the public facility and the type of development project upon which the
fee is imposed.
5. Determine how there is a reasonable relationship between the amount
of the fee and the cost of the public facility or portion of the public
facility attributable to the development upon which the fee is imposed.
To establish equal fee requirements for future residential development projects that
are not subject to the Quimby Act, cities may also adopt a Park Land Acquisition Fee under
authority of the Mitigation Fee Act. Chapter III in this Report provides the analysis required
by the Mitigation Fee Act for a proposed Park Land Acquisition Fee for residential
development projects that are not subject to the Quimby Act. Under no circumstances
would both the Quimby Act In‐lieu Fee and the Park Land Acquisition Fee apply to the same
residential parcel.
The General Plan, the Parks + Recreation Master Plan and the East of 101 Area Plan
establish a standard of 0.5 acres of parks per one‐thousand new employees for future
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commercial developments. Chapter III in this Report provides the analysis required by the
Mitigation Fee Act for a proposed Park Land Acquisition Fee for commercial development
projects.
The proposed Quimby Act In‐lieu Fee and the Mitigation Fee Act Park Land
Acquisition Fee are based on the cost of acquiring the land required by the City’s three acres
per one‐thousand residents’ standard and the 0.5 acres per one‐thousand new employees’
standard. These park land acquisition fees do not include the cost of constructing park
facilities and improvements on the park land. Therefore, a separate Park Construction Fee
is proposed to pay for the construction of park facilities and improvements on park land
required to serve new residents and employees. Chapter IV in this Report provides the
analysis required by the Mitigation Fee Act for a proposed Park Construction Fee.
PROPOSED REVISIONS TO THE MUNICIPAL CODE
The City of South San Francisco currently imposes park land acquisition in‐lieu fees
on residential subdivisions that are subject to the Quimby Act. The City’s Municipal Code
Chapter 19.24 establishes procedures for the dedication of land or the payment of an in‐lieu
fee for Quimby Act park land acquisition. The Municipal Code requires the City to obtain an
appraisal for each development project that is subject to the Quimby Act (and for the
developer to reimburse the City for the cost of the appraisal). The City then calculates the
in‐lieu fee per residential unit based on the appraisal and other criteria established in the
Municipal Code.
Under existing Municipal Code procedures, the Quimby Act fees for the two most
recent projects were $27,522 per residential unit and $22,966 per residential unit (before
partial project‐related credits for private recreational space). The fees for both projects
were calculated using the existing “multi‐family/high density” formula. Yet there is
disparity between the fees for the two projects, due to differences in appraised values for
the two projects, even though both projects generate the same demand for park facilities
per person and per residential unit.
This Report proposes that the Municipal Code be revised by setting an in‐lieu fee
that would apply equally to all residential developments with similar population densities,
based on a single current land value. By adopting this methodology, the requirement for an
appraisal on every residential subdivision will be eliminated. Moreover, potential
developers will know what the fee will be in advance of seeking permit approvals.
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REPORT OBJECTIVES AND RECOMMENDATIONS
This Report is intended to assist the City of South San Francisco in achieving the
policies, goals and implementation measures in the General Plan, the Parks + Recreation
Master Plan and the East of 101 Area Plan. The overall objective is to offer procedures to
ensure that the City attains its goal of acquiring and constructing three acres of community
and neighborhood park land per one‐thousand future residents, and 0.5 acres of park land
per one‐thousand new employees, and that fees paid by new development projects
contribute proportionately toward these goals.
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II. QUIMBY ACT PARK LAND ACQUISITION IN‐LIEU FEE
______________________________________________________________________________
The Quimby Act authorizes the dedication of land or a payment of an in‐lieu fee for
three acres of park land per one‐thousand future residents, or up to five acres of park land
per one‐thousand future residents if there is an existing inventory of at least five acres of
park land per one‐thousand residents. The South San Francisco General Plan and the Parks
+ Recreation Master Plan identify and establish a City goal of three acres of park land per
one‐thousand future residents. This Chapter calculates the Quimby Act Park Land
Acquisition In‐lieu Fee based on three acres per one‐thousand future residents. As
previously discussed, the Quimby Act in‐lieu fee applies only to parcels created by a major
residential subdivision (five or more parcels) and to parcels created by a minor residential
subdivision (four parcels or less) if a building permit is requested within four years of the
approval of the parcel map for the minor subdivision.
CALCULATION OF THE ACREAGE REQUIRED PER RESIDENTIAL UNIT
Park land acquisition in‐lieu fees are charged on a per residential unit basis, based
on the average number of residents who live in a particular type of residential unit.
Different types of residential units have different average numbers of residents per unit.
The United States Census Bureau publishes annual demographic and population
data, known as American FactFinder data. The 2014 American FactFinder data is the most
current, credible and verifiable data available. The data is provided per residential unit,
based on the number of units in a structure. For all residential units, the average is 3.12
persons per unit. The data indicates that the more units in a structure, the fewer persons
live in each unit. Table II‐1 provides 2014 American FactFinder data for residents per unit.
Table II‐1: Residents per Residential Unit, City of South San Francisco
Units in Structure Residents per Unit
1 (single‐family residential unit) 3.45
2 to 4 (duplex to four‐plex) 2.98
5 to 19 2.53
20 to 49 2.04
50 or more 1.78
Mobile home 2.65
Average, City of South San Francisco 3.12
Source: United States Census Bureau, 2014 American FactFinder, Table B25124
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The City's standard of three acres per one‐thousand future residents is equal to .003
acres per resident (three acres divided by one‐thousand residents). The park land acreage
required per residential unit is calculated in Table II‐2, below, by multiplying .003 acres per
resident by the average number of residents in the residential units indicated previously in
Table II‐1.
Table II‐2: Park Land Acres Required per Residential Unit
Units in Structure Acres per
Resident
Residents per
Unit
Park Land Acres
Required per Unit
1 (single‐family residential unit) 0.003 3.45 0.01035
2 to 4 (duplex to four‐plex) 0.003 2.98 0.00894
5 to 19 0.003 2.53 0.00759
20 to 49 0.003 2.04 0.00612
50 or more 0.003 1.78 0.00534
Mobile home 0.003 2.65 0.00795
Source: City of South San Francisco General Plan and Park + Recreation Master Plan; United States
Census Bureau, 2014 American FactFinder, Table B25124
CALCULATION OF THE FEE PER RESIDENTIAL UNIT
The in‐lieu fee is based on the amount of land required to meet the applicable park
land standard, and the market value of land. To determine the market value of land, the City
contracted with an appraisal firm, Dana Property Analysis, to prepare an analysis of the
average market value of vacant land in South San Francisco. The Dana Property Analysis is
provided as Attachment 1 to this Report. The average market value of vacant land in South
San Francisco is estimated by Dana Property Analysis to be $3,000,000 per acre.
South San Francisco Municipal Code Chapter 19.24.090(a) currently requires that
the in‐lieu fee include the fair market value of land, plus a factor of twenty percent to
provide funding for off‐site improvements required by Municipal Code Section
19.24.080(c). More specifically, Section 19.24.080(c) requires “(1) full street improvements
and utility connections, including, but not limited to curbs, gutters, street paving, traffic
control devices, street trees, and sidewalks to the land dedicated pursuant to this section; (2)
fencing along the property line of that portion of the subdivision contiguous to the dedicated
land; (3) improved drainage throughout the dedicated land; and (4) other minimal
improvements which the City Council determines to be essential to the acceptance of the land
for recreational purposes.” This Report and analysis of the Quimby Act in‐lieu fee proposes
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Park Land Acquisition and Park Construction Fees
17
that the twenty percent factor currently added to the in‐lieu fees be deleted from the South
San Francisco Municipal Code, for the following reasons:
The market value of land estimated by Dana Property Analysis is based on
comparable sales data for recent sales in the South San Francisco area. Many of the
comparable sales already have the public improvements referenced in
19.20.080(c)(1); therefore, the cost of these public improvements is already
included in the market value of land.
Fencing along the property line adjacent to the subdivision as referenced in
19.20.080(c)(2) would not be required, because the in‐lieu fees will be used to
purchase suitable park land that is not likely to be adjacent to the subdivision.
This Report recommends a separate Park Construction Fee, based on the projected
cost of building parks, which would include the improved drainage and other
minimal improvements referenced in sections 19.24.080(c)(3) and 19.24.080(c)(4).
Table II‐3 calculates the Quimby Act Park Land Acquisition In‐Lieu fee per
residential unit by multiplying the required acres per unit (from Table II‐2) by the
$3,000,000 market value per acre.
Table II‐3: Quimby Act Park Land Acquisition In‐Lieu Fee per Residential Unit
Units in Structure Park Land Acres
Required per Unit
Market Value of
Land per Acre Fee per Unit
1 (single‐family residential unit) 0.01035 $3,000,000 $31,050
2 to 4 (duplex to four‐plex) 0.00894 $3,000,000 $26,820
5 to 19 0.00759 $3,000,000 $22,770
20 to 49 0.00612 $3,000,000 $18,360
50 or more 0.00534 $3,000,000 $16,020
Mobile home 0.00795 $3,000,000 $23,850
Source: City of South San Francisco General Plan and Parks + Recreation Master Plan; United States
Census Bureau, 2014 American FactFinder, Table B25124; Dana Property Analysis; Municipal
Resource Group LLC
Table II‐3 demonstrates that fees under the proposed methodology would vary
only by the difference in expected number of units in a structure and residents per unit, and
not by different appraisal values.
The City may adopt Quimby Act Park Land Acquisition In‐lieu fees equal to, or below
the amounts identified in Table II‐3.
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The City will incur costs to administer the fee program and to prepare the
compliance analyses and reports required by the Quimby Act. The compliance
requirements are identified in Chapter VII of this Report. The City may add an
administration cost factor to the fee, to cover the cost of administering the programs and
the cost of compliance with statutory requirements.
QUIMBY ACT REQUIREMENTS
The Quimby Act requires a local agency to address the following key procedural
requirements when adopting the dedication requirements and the in‐lieu fee. The Quimby
Act contains other requirements as well, which may be found in the California Government
Code beginning with Section 66477.
1. Adopt a general plan or specific plan containing policies and standards for
parks and recreation facilities.
The City of South San Francisco General Plan and the Parks + Recreation
Master Plan establish a standard of three acres of park land for each one‐
thousand residents.
2. Adopt an ordinance requiring the dedication of land or the imposition of a
requirement for the payment of a fee in‐lieu of the dedication of land, or a
combination of both. The ordinance must include definite standards for
determining the proportion of a subdivision to be dedicated and the amount of
the in‐lieu fee. The amount of land to be dedicated and the fee must be based
upon the density of each residential type.
It will be necessary for the City to revise its enabling ordinance to implement
the proposed in‐lieu fee methodology. It is also recommended that the City
adopt a fee resolution, implementing the proposed in‐lieu fee.
3. The amount and location of land to be dedicated or the fees to be paid must
bear a reasonable relationship to the use of the park and recreational facilities
by the future inhabitants of the subdivision.
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The City of South San Francisco has established a standard level of service of
three acres of park land for each one‐thousand residents. This standard is
based upon the minimum requirement in the Quimby Act. The land
dedication requirement and the in‐lieu fees are calculated to maintain this
standard for future residents.
4. A schedule must be developed specifying how, when, and where the City will
use the land or fees to develop park and recreational facilities.
The General Plan and the Parks + Recreation Master Plan identify the
location of several of the proposed future parks. It will be necessary for the
City to adopt a separate schedule showing how the City will use the land or
fees (site acquisition), when the City will use the fees (in five year intervals)
and where the City will use the fees (specific sites and locations).
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Park Land Acquisition and Park Construction Fees
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III. PARK LAND ACQUISITION FEE – MITIGATION FEE ACT
(NON‐QUIMBY ACT DEVELOPMENT PROJECTS)
______________________________________________________________________________
The City of South San Francisco currently collects park land acquisition fees only
from residential development projects that are subject to the Quimby Act. Quimby Act land
dedication and in‐lieu fee requirements apply to parcels created by a major residential
subdivision (five or more parcels) and to parcels created by a minor residential subdivision
(four parcels or less) if a building permit is requested within four years of the approval of
the parcel map for the minor subdivision. Quimby Act requirements do not apply to an
existing residential lot that has not previously paid a park fee, multi‐family residential
(rental) development projects or commercial development projects.
The General Plan and the Parks + Recreation Master Plan include goals to collect
park land acquisition fees from all new residential development projects and all new
commercial development projects.
Residents who will occupy future residential units that are not currently subject to
the Quimby Act in‐lieu fee will nonetheless create demand for park facilities. To address
this demand, public agencies may adopt a residential Park Land Acquisition Fee under the
authority of the Mitigation Fee Act to collect a similar fee from residential development
projects that are not subject to the Quimby Act.
Similarly, employees who work in future commercial projects will also impact park
facilities (lunch time activity and picnic areas, before and after work activities, outdoor
exercise, sports leagues and other recreational activities). To address this demand, public
agencies may adopt a commercial Park Land Acquisition Fee under the authority of the
Mitigation Fee Act to collect a proportionate fee from commercial development projects
that are not subject to the Quimby Act. The City of South San Francisco has established a
goal of creating one‐half acre of park land for each one‐thousand employees, and has
directed that this Report identify a potential fee to implement this goal for future
employees.
This Chapter provides the analysis and findings required by the Mitigation Fee Act
to collect park land acquisition fees from future residential development projects and
commercial development projects that are not subject to the Quimby Act. The analysis and
calculation of the Park Land Acquisition Fee in this Chapter parallels the analysis and
calculation of the Quimby Act Park Land Acquisition In‐lieu Fee in Chapter II. However,
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Park Land Acquisition and Park Construction Fees
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under no circumstance would both the Quimby Act Park Land Acquisition In‐lieu Fee and
the Mitigation Fee Act Park Land Acquisition Fee apply to the same residential development
parcel or project.
CALCULATION OF THE ACREAGE REQUIRED PER RESIDENTIAL UNIT
Park land acquisition fees are charged on a per unit basis, based on the average
number of residents who live in a residential unit. As discussed in Chapter II, different
types of residential units have different average number of residents per unit. Table III‐1
provides 2014 American FactFinder data for residents per unit.
Table III‐1: Residents per Residential Unit, City of South San Francisco
Units in Structure Residents per Unit
1 (single‐family residential unit) 3.45
2 to 4 (duplex to four‐plex) 2.98
5 to 19 2.53
20 to 49 2.04
50 or more 1.78
Mobile home 2.65
Average 3.12
Source: United States Census Bureau, 2014 American FactFinder, Table B25124
The City's standard of three acres per one‐thousand future residents is equal to .003
acres per resident (three acres divided by one‐thousand residents). The park land acreage
required per residential unit is calculated in Table III‐2, below, by multiplying .003 acres
per resident by the average number of residents in residential units indicated previously in
Table III‐1.
Table III‐2: Park Land Acres Required per Residential Unit
Units in Structure Acres per
Resident
Residents per
Unit
Park Land Acres
Required per Unit
1 (single‐family residential unit) 0.003 3.45 0.01035
2 to 4 (duplex to four‐plex) 0.003 2.98 0.00894
5 to 19 0.003 2.53 0.00759
20 to 49 0.003 2.04 0.00612
50 or more 0.003 1.78 0.00534
Mobile home 0.003 2.65 0.00795
Source: City of South San Francisco General Plan and Park + Recreation Master Plan; United States
Census Bureau, 2014 American FactFinder, Table B25124; Municipal Resource Group LLC
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Park Land Acquisition and Park Construction Fees
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CALCULATION OF THE FEE PER RESIDENTIAL UNIT
The Park Land Acquisition Fee is based on the amount of land required to meet the
applicable park land standard, and the market value of land. As discussed in Chapter II, the
average market value of vacant in South San Francisco is estimated to be $3,000,000 per
acre.
Table III‐3 calculates the fee per residential unit by multiplying the required acres
per unit (from Table III‐2) by the $3,000,000 market value per acre.
Table III‐3: Mitigation Fee Act Park Land Acquisition Fee per Residential Unit
Units in Structure Park Land Acres
Required per Unit
Market Value of
Land per Acre Fee per Unit
1 (single‐family residential unit) 3.45 $3,000,000 $31,050
2 to 4 (duplex to four‐plex) 2.98 $3,000,000 $26,820
5 to 19 2.53 $3,000,000 $22,770
20 to 49 2.04 $3,000,000 $18,360
50 or more 1.78 $3,000,000 $16,020
Mobile home 2.65 $3,000,000 $23,850
Source: City of South San Francisco General Plan and Parks + Recreation Master Plan; United States
Census Bureau, 2014 American FactFinder, Table B25124; Dana Property Analysis; Municipal
Resource Group LLC
The City may adopt Mitigation Fee Act Park Land Acquisition Fees for residential
development projects not subject to the Quimby Act, under the authority of the Mitigation
Fee Act that are equal to, or below the amounts identified in Table III‐3.
The City will incur costs to administer the fee program and to prepare the
compliance analyses and reports required by the Mitigation Fee Act. The compliance
requirements are identified in Chapter VII of this Report. The City may add an
administration cost factor to cover the cost of administering the programs and the cost of
compliance with statutory requirements.
CALCULATION OF THE ACREAGE REQUIRED FOR COMMERCIAL DEVELOPMENT PROJECTS
The South San Francisco General Plan establishes a standard of 0.5 acres per one‐
thousand new employees in the City. The East of 101 Area Plan reaffirms this goal and
standard for that particular commercial area.
Fees on commercial projects are typically applied per one‐thousand square feet of
building space. The number of employees per one‐thousand square feet of building space
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23
varies among commercial uses. The City of South San Francisco provided the data for the
number of employees per one‐thousand square feet of building space, as cited in Table III‐4.
Table III‐4 calculates the park land acreage required per one‐thousand square feet
of new commercial building space by multiplying the number of employees per one‐
thousand square feet by the acreage required per employee ( 0.5 acres per one‐thousand
employees is equal to .0005 acres per employee).
Table III‐4: Park Land Acreage Required per One‐thousand Square Feet of Commercial Space
Classification Employees per
1,000 Square Feet
Park Land Acres
Required per
Employee
Park Land Acres
Required per 1,000
Square Feet
Commercial/Retail 2.50 .0005 acres .00125 acres
Hotel/Visitor 2.38 .0005 acres .00119 acres
Office/R&D 2.22 .0005 acres .00111 acres
Industrial 1.05 .0005 acres .00052 acres
Source: City of South San Francisco General Plan Land Use Element, page 55; Municipal Resource
Group LLC
CALCULATION OF THE COMMERCIAL FEE
The commercial Park Land Acquisition Fee is based on the amount of land required
to meet the applicable park land standard (Table III‐4) and the market value of land. As
discussed in Chapter II, the average market value of vacant land in South San Francisco is
estimated to be $3,000,000 per acre.
Table III‐5 calculates the fee per one‐thousand square feet of commercial space by
multiplying the required acres per 1,000 square feet (from Table III‐4) by the $3,000,000
market value per acre.
Table III‐5: Mitigation Fee Act Park Land Acquisition Fee per One‐thousand Square Feet of
Commercial Space
Classification Park Land Acres per
1,000 Square Feet
Market Value of Land
per Acre
Fee per 1,000 Square
Feet
Commercial/Retail .00125 acres $3,000,000 $3,750
Hotel/Visitor .00119 acres $3,000,000 $3,571
Office/R&D .00111 acres $3,000,000 $3,333
Industrial .00052 acres $3,000,000 $1,571
Source: City of South San Francisco General Plan Land Use Element, page 55; Dana Property Analysis;
Municipal Resource Group LLC
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The City may adopt Park Land Acquisition Fees under the Mitigation Fee Act for
commercial development projects that are equal to, or below the amounts identified in
Table III‐5.
The City will incur costs to administer the fee program and to prepare the
compliance analyses and reports required by the Mitigation Fee Act. The compliance
requirements are identified in Chapter VII of this Report. The City may add an
administration cost factor to cover the cost of administering the programs and the cost of
compliance with statutory requirements.
AB 1600 NEXUS
The Mitigation Fee Act (AB 1600) requires a local agency considering an action
establishing, increasing or imposing a fee to address the following procedural requirements.
1. Identify the purpose of the fee.
The purpose of the Park Land Acquisition Fee is to provide funding to achieve the
City’s goal of maintaining park service levels and to provide adequate recreational
services for South San Francisco residents and employees, as established in the
General Plan, the Parks + Recreation Master Plan and the East of 101 Area Plan.
2. Identify the use to which the fee is to be put.
The proceeds from the fees will be used to acquire three acres of park land per one‐
thousand future residents and 0.5 acres per one‐thousand new employees, as
identified in the City’s General Plan, the Parks + Recreation Master Plan and the East
of 101 Area Plan.
3. Identify the relationship between the fee's use and the type of development project on
which the fee is imposed.
The fee will be applied to residential development projects and commercial
development projects that are not subject to the City’s Quimby Act park land
dedication or in‐lieu fee requirements. New residents in residential developments
and new employees will place an additional demand on park and recreational
facilities. The park land acquired with the proceeds of the fee will address and
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Park Land Acquisition and Park Construction Fees
25
mitigate the additional impacts and demands created by these residential and
commercial development projects.
4. Determine the relationship between the need for the community facility and the type of
development project on which the fee is imposed.
The fee will be applied to residential development projects and commercial
development projects, which generate new residents and new employees in the
community. The park land will serve the needs of new residents in residential
development projects and new employees in commercial development projects.
5. Determine the relationship between the amount of the fee and the cost of the
community facility or portion of the community facility attributable to the
development on which the fee is imposed.
The fee has been calculated by apportioning the cost of park land acquisition to the
number of residents generated by each type of new residential unit and the number
of employees per one‐thousand square feet in commercial development projects.
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Park Land Acquisition and Park Construction Fees
26
IV. PARK CONSTRUCTION FEE
______________________________________________________________________________
City of South San Francisco park goals include the development of three acres of
parks for each one‐thousand future residents and 0.5 acres of parks for each one‐thousand
new employees. While the Quimby Act In‐lieu Fee and the Mitigation Fee Act Park Land
Acquisition Fee will provide funds for the acquisition of park land, the proposed Park
Construction Fee discussed in this Chapter would provide funds for the construction of park
facilities and improvements on the land acquired with the proceeds from the other fees.
This Chapter provides the analysis and findings required by the Mitigation Fee Act to
establish a fee for the construction of park facilities and improvements on acquired park
land.
CALCULATION OF THE PARK ACREAGE TO BE IMPROVED PER RESIDENTIAL UNIT
The acreage to be improved with park facilities to serve residential development is
the same acreage as established for park land acquisition: three acres per one‐thousand
future residents.
Table IV‐1, using the same factors as in Table II‐2, calculates the amount of acreage
to be improved (park acreage construction) for the benefit of residential units by
multiplying the park acres per resident by the residents per unit.
Table IV‐1: Park Acres to be Improved per Residential Unit
Units in Structure Acres per
Resident
Residents per
Unit
Park Acres to be
Improved per
Residential Unit
1 (single‐family residential unit) 0.003 3.45 0.01035
2 to 4 (duplex to four‐plex) 0.003 2.98 0.00894
5 to 19 0.003 2.53 0.00759
20 to 49 0.003 2.04 0.00612
50 or more 0.003 1.78 0.00534
Mobile home 0.003 2.65 0.00795
Source: City of South San Francisco General Plan and Park + Recreation Master Plan; United States
Census Bureau, 2014 American FactFinder, Table B25124; Municipal Resource Group LLC
CALCULATION OF THE FEE PER RESIDENTIAL UNIT
The Park Construction Fee is based on the amount of land required to be improved
(Table IV‐1) and the cost of constructing park facilities and improvements.
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The General Plan and Parks + Recreation Master Plan include a policy to maintain a
three acre standard of community and neighborhood parks per one‐thousand residents and
one‐half acre per one‐thousand employees, and describes the facilities that should be
included in community and neighborhood parks. While individual park construction
projects will differ in the type of park facilities and construction costs, a representative per
acre construction cost estimate has been prepared by Group 4 Architecture, Research +
Planning, Inc., for the purpose of calculating the Park Construction Fee. Attachment 2
identifies the representative park facilities and improvements and the cost per acre. The
average construction (hard) cost per acre is $785,000. Soft costs, such as design,
construction management and permitting costs, are estimated at 20% to 30% of hard
construction costs. This Report assumes a mid‐point of 25% for soft costs. Accordingly,
hard construction costs and soft costs are estimated at $981,250 per acre.
Table IV‐2 calculates the Park Construction Fee per residential unit by multiplying
the required acres per unit (from Table IV‐1) by the $981,250 park construction cost per
acre.
Table IV‐2: Park Construction Fee per Residential Unit
Units in Structure Park Acres per
Unit
Construction Cost
per Acre Fee per Unit
1 (single‐family residential unit) 0.01035 $981,250 $10,156
2 to 4 (duplex to four‐plex) 0.00894 $981,250 $ 8,772
5 to 19 0.00759 $981,250 $ 7,448
20 to 49 0.00612 $981,250 $ 6,005
50 or more 0.00534 $981,250 $ 5,240
Mobile home 0.00795 $981,250 $ 7,801
Source: City of South San Francisco General Plan and Park + Recreation Master Plan; United States
Census Bureau, 2014 American FactFinder, Table B25124; Group 4 Architecture, Research +
Planning Inc.; Municipal Resource Group LLC
The City may adopt Park Construction Fees under the Mitigation Fee Act for
residential development projects that are equal to, or below the amounts identified in Table
IV‐2.
The City will incur costs to administer the fee program and to prepare the
compliance analyses and reports required by the Mitigation Fee Act. The compliance
requirements are identified in Chapter VII of this Report. The City may add an
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28
administration cost factor to cover the cost of administering the programs and the cost of
compliance with statutory requirements.
CALCULATION OF THE PARK ACREAGE TO BE IMPROVED FOR COMMERCIAL
DEVELOPMENT PROJECTS
The South San Francisco General Plan establishes a standard of 0.5 acres per one‐
thousand new employees in the City. The East of 101 Area Plan reaffirms this goal and
standard for that particular commercial area.
Fees on commercial projects are typically applied per one‐thousand square feet of
building space. The number of employees per one‐thousand square feet of building space
varies among commercial uses. The South San Francisco General Plan provides the data for
the number of employees per one‐thousand square feet of building space, as cited in Table
IV‐3, below.
Table IV‐3 calculates the park land acreage required to be improved per one‐
thousand square feet of new commercial building space by multiplying the employees per
one‐thousand square feet by the acreage required per employee (0.5 acres per one‐
thousand employees is equal to .0005 acres per employee).
Table IV‐3: Park Acres to be Improved per One‐thousand Square Feet of Commercial Space
Classification Employees per
1,000 Square Feet
Park Acres Required
per Employee
Acres to be Improved
per 1,000 Square Feet
Commercial/Retail 2.50 .0005 acres .00125 acres
Hotel/Visitor 2.38 .0005 acres .00119 acres
Office/R&D 2.22 .0005 acres .00111 acres
Industrial 1.05 .0005 acres .00052 acres
Source: City of South San Francisco General Plan Land Use Element, page 55; Park + Recreation
Master Plan; Municipal Resource Group LLC
CALCULATION OF THE COMMERCIAL FEE
The park construction fee is based on the amount of land required to be improved
(Table IV‐3) and the cost of constructing park facilities and improvements. As discussed
above, hard construction costs and soft costs are estimated at $981,250 per acre.
Table IV‐4 calculates the fee per one‐thousand square feet of commercial space by
multiplying the required acres per unit (from Table IV‐3) by the $981,250 construction cost
per acre.
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Table IV‐4: Park Construction Fee per One‐thousand Square Feet of Commercial Space
Classification Park Acres per 1,000
Square Feet
Construction Cost
per Acre
Fee per 1,000 Square
Feet
Commercial/Retail .00125 acres $981,250 $1,227
Hotel/Visitor .00119 acres $981,250 $1,168
Office/R&D .00111 acres $981,250 $1,090
Industrial .00052 acres $981,250 $ 514
Source: City of South San Francisco General Plan Land Use Element, page 55; Park + Recreation
Master Plan; Architecture, Research + Planning Inc.; Municipal Resource Group LLC
The City may adopt Park Construction Fees under the Mitigation Fee Act for
commercial development projects that are equal to, or below the amounts identified in
Table IV‐4.
AB 1600 NEXUS
The Mitigation Fee Act (AB 1600) requires a local agency considering an action
establishing, increasing or imposing a fee to address the following procedural requirements.
1. Identify the purpose of the fee.
The purpose of the Park Construction Fee is to provide funding to achieve the City’s
goal of maintaining park service levels and to provide adequate recreational
services for South San Francisco residents and employees, as established in the
General Plan, the Parks + Recreation Master Plan and the East of 101 Area Plan.
2. Identify the use to which the fee is to be put.
The proceeds from the fees will be used to construct park facilities and
improvements on three acres of park land per one‐thousand future residents and
0.5 acres per one‐thousand new employees, as identified in the City’s General Plan,
the Parks + Recreation Master Plan and the East of 101 Area Plan.
3. Determine the relationship between the fee's use and the type of development project
on which the fee is imposed.
The fee will be applied to residential development projects and commercial
development projects. New residents in residential developments and new
employees will place an additional demand on park and recreational facilities. The
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30
park facilities and improvements constructed with the proceeds of the fee will
address and mitigate the additional impacts and demands created by these
residential and commercial development projects.
4. Determine the relationship between the need for the community facility and the type of
development project on which the fee is imposed.
The fee will be applied to residential development projects and commercial
development projects, which generate new residents and employees in the
community. The park facilities and improvements will serve the needs of new
residents in residential development projects and new employees in commercial
development projects.
5. Determine the relationship between the amount of the fee and the cost of the
community facility or portion of the community facility attributable to the
development on which the fee is imposed.
The fee has been 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 per one‐thousand square feet in
commercial development projects.
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V. PARK ACQUISITION AND PARK CONSTRUCTION FEES SUMMARY
______________________________________________________________________________
Table V‐1 presents the proposed Park Land Acquisition Fees (Quimby Act and
Mitigation Fee Act) and the Park Construction Fees for residential units. The City may adopt
fees equal to, or below the amounts identified in Table V‐1.
Table V‐1: Total Park Fees per Residential Unit
Units in Structure Park Land
Acquisition Fee
Park
Construction Fee Total Park Fees
1 (single‐family residential unit) $31,050 $10,156 $41,206
2 to 4 (duplex to four‐plex) $26,820 $ 8,772 $35,592
5 to 19 $22,770 $ 7,448 $30,218
20 to 49 $18,360 $ 6,005 $24,365
50 or more $16,020 $ 5,240 $21,260
Mobile home $23, 850 $ 7,801 $31,651
Source: City of South San Francisco General Plan and Parks + Recreation Master Plan; United States
Census Bureau, 2014 American FactFinder, Table B25124; Dana Property Analysis; Group 4
Architecture + Planning Inc.; Municipal Resource Group LLC
Table V‐2 presents the proposed Park Land Acquisition Fees and the Park
Construction Fees for commercial developments. The City may adopt fees equal to, or
below the amounts identified in Table V‐2.
Table V‐2: Total Park Fees per One‐thousand Square Feet of Commercial Space
Classification Park Land Acquisition
Fee
Park Construction
Fee
Total Park
Fees
Commercial/Retail $3,750 $1,227
$4,977
Hotel/Visitor $3,571 $1,168
$4,739
Office/R&D $3,333 $1,090
$4,423
Industrial $1,571 $ 514
$2,085
Source: City of South San Francisco General Plan and Parks + Recreation Master Plan; United States
Census Bureau, 2014 American Fact Finder, Table 25124; Dana Property Analysis; Group 4
Architecture + Planning Inc.; Municipal Resource Group LLC
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VI. ANNUAL FEE ADJUSTMENT
______________________________________________________________________________
One of the challenges in administering a mitigation fee program is that the cost of
land and the cost of construction may continue to change over time, while the fees remain
static, unless reviewed annually by the public agency. Many public agencies address this by
including an annual fee adjustment in the resolution adopting the fees.
LAND VALUE ADJUSTMENT
Several different methods can be used to adjust park land values and park land
acquisition fees. Some agencies conduct an annual market valuation of land and apply the
percentage change in land costs to the fees. Others conduct an Assessor's Office records
research for recent land sales, as compared to prior year land sales. Still others use
publicized indices, such as a consumer price index or the Data Quick Information Systems’
change in median purchase prices.
This Report recommends the use of the U.S. Bureau of Labor Statistics Consumer
Price Index, All Urban Consumers, San Francisco‐Oakland‐San Jose (AUC‐CPI) for an annual
adjustment. It is recommended that the Quimby Act In‐lieu Fees and the Mitigation Fee Act
Park Land Acquisition Fees be adjusted annually by the AUC‐CPI
It is also recommended that a market valuation of land be prepared every five years
to validate and adjust the Quimby Act In‐Lieu Fees and the Mitigation Fee Act Park Land
Acquisition Fees.
CONSTRUCTION COST ADJUSTMENT
Several different methods can be used to adjust construction costs and Park
Construction Fees. This Report recommends that the fees be adjusted by the Engineering
News Record ‐ Construction Cost Index (ENR‐CCI) on an annual basis. The ENR‐CCI is a
twenty‐city average of construction labor and materials costs. The ENR‐CCI is similar to a
consumer price index, but one that is designed to reflect changing construction costs.
Quimby Act and Mitigation Fee Act Report March 2016
Park Land Acquisition and Park Construction Fees
33
VII. COMPLIANCE REQUIREMENTS
______________________________________________________________________________
The City of South San Francisco may add a factor to the fees to cover the cost of
compliance with applicable statutes. The compliance requirements are summarized in this
Chapter.
THE MITIGATION FEE ACT
The Mitigation Fee Act imposes certain administrative requirements on local
agencies. Pursuant to Government Code Section 66005(a) of the Act, a City is authorized to
recover the full cost of providing services that are funded by the mitigation fees. This
includes recovery of administrative fees incurred in compliance with the Act. The
procedural and administrative requirements include the following:
1. Analysis required to enact or modify a fee:
In any action establishing, increasing, or imposing a fee as a condition of approval of
a development project, the City shall cause a report to be prepared and make findings as
follows:
Identify the purpose of the fee.
Identify the use to which the fee is to be put.
Determine how there is a reasonable relationship between the fee's use and the type
of development project on which the fee is imposed.
Determine how there is a reasonable relationship between the need for the public
facility and the type of development project on which the fee is imposed.
Determine how there is a reasonable relationship between the amount of the fee
and the cost of the public facility or portion of the public facility attributable to the
development on which the fee is imposed.
2. Notice and conduct a public hearing:
Prior to adopting an ordinance, resolution, or other legislative enactment adopting a
new fee or approving an increase in an existing fee, the City shall hold a public hearing, at
which time oral or written presentations can be made, as part of a regularly scheduled
meeting. Notice of the time and place of the meeting, including a general explanation of the
matter to be considered, shall be published.
Quimby Act and Mitigation Fee Act Report March 2016
Park Land Acquisition and Park Construction Fees
34
3. Accounting requirements
The City shall deposit the fees in a separate capital facilities account or fund in a
manner to avoid any commingling of the fees with other revenues and funds of the City, and
expend those fees solely for the purpose for which the fee is collected. Any interest income
earned by money in the capital facilities account or fund shall also be deposited in that
account or fund and shall be expended only for the purpose for which the fee was originally
collected.
4. Annual reporting requirements; public hearing
For each separate account or fund established, the City shall, within 180 days after
the last day of each fiscal year, make available to the public the following information for the
fiscal year:
A brief description of the type of fee in the account or fund.
The amount of the fee.
The beginning and ending balance of the account or fund, the amount of the fees
collected and the interest earned.
An identification of each public improvement on which fees were expended and the
amount of the expenditures on each improvement, including the total percentage of
the cost of the public improvement that was funded with fees.
An identification of an approximate date by which the construction of the public
improvement will commence if it is determined that sufficient funds have been
collected to complete financing on an incomplete public improvement.
A description of each interfund transfer or loan made from the account or fund,
including the public improvement on which the transferred or loaned fees will be
expended, and, in the case of an interfund loan, the date on which the loan will be
repaid, and the rate of interest that the account or fund will receive on the loan.
The amount of refunds made.
The City shall review this information at the next regularly scheduled public
meeting not less than 15 days after this information is made available to the public. Notice
of the time and place of the meeting, including the address where this information may be
Quimby Act and Mitigation Fee Act Report March 2016
Park Land Acquisition and Park Construction Fees
35
reviewed, shall be mailed, at least 15 days prior to the meeting, to any interested party who
files a written request with the local agency for mailed notice of the meeting.
5. Five year reporting requirements; public hearing
For the fifth fiscal year following the first receipt of fees, and every five years
thereafter, the City shall make all of the following findings with respect to that portion of the
account or fund remaining unexpended, whether committed or uncommitted:
Identify the purpose to which the fee is to be put.
Demonstrate a reasonable relationship between the fee and the purpose for which it
is charged.
Identify all sources and amounts of funding anticipated to complete financing for
incomplete improvements.
Designate the approximate dates on which the funding referred to above is expected
to be deposited into the appropriate account or fund.
For purposes of these findings, the City shall hold a public hearing, at which oral or
written presentations can be made, as part of a regularly scheduled meeting. Notice
of the time and place of the meeting, including a general explanation of the matter to
be considered, shall be published.
CAPITAL IMPROVEMENT PLANNING
The Mitigation Fee Act provides that the City may adopt a capital improvement plan
to identify the location, size, time of availability, and estimates of cost for all facilities or
improvements to be financed with the fees. The capital improvement plan shall be adopted
by, and shall be annually updated by a resolution of the City Council adopted at a noticed
public hearing. Notice of the time and place of the meeting, including a general explanation
of the matter to be considered, shall be published. In addition, mailed notice shall be given
to any city or county which may be significantly affected by the capital improvement plan.
THE QUIMBY ACT
In addition to the analysis, notice, hearing, accounting and reporting requirements
of the Mitigation Fee Act, the Quimby Act (as codified in the California Government Code,
beginning with Section 66477) adds additional requirements that must be addressed by the
City. The City must adopt an ordinance meeting the following requirements:
Quimby Act and Mitigation Fee Act Report March 2016
Park Land Acquisition and Park Construction Fees
36
The ordinance must be in effect for 30 days prior to the filing of a tentative map for a
subdivision subject to the dedication or in‐lieu fee requirement.
The ordinance must include definite standards for determining the proportion of a
subdivision to be dedicated and the amount of the in‐lieu fee. The amount of land to
be dedicated and the fee must be based upon the density of each residential type.
The park area per one‐thousand residents must be derived from the ratio that the
existing amount of park area bears to the existing population. A minimum ratio of
three acres per one‐thousand residents is permitted where the existing ratio is less
than three acres per one‐thousand residents.
The City must also assure that the following conditions are met:
The dedicated land, and the fees, may only be used for developing new parks or
rehabilitating existing parks.
The City must have an adopted general plan or specific plan containing policies and
standards, and the park and recreational facilities must be in accordance with
definite principles and standards.
The amount and location of land to be dedicated and the fees to be paid must bear a
reasonable relationship to the use of the park and recreational facilities for the
future inhabitants of the subdivision.
A schedule must be developed specifying how, when, and where the City will use the
land or fees to develop park and recreational facilities.
Fees collected must be committed within five years of payment, or the issuance of
one‐half of the lots created by the subdivision, whichever occurs later.
If the fees are not committed within the applicable time frames, they must be
distributed to the then owners of record.
g:\15463-01 ssf park fees update\m-memos\m21 clt\m002-3 costs 18.docx
MEMORANDUM GROUP 4
ARCHITECTURE
RESEARCH +
PLANNING, INC
211 LINDEN AVENUE
SO. SAN FRANCISCO
CA 94080 USA
T:6508710709
F:6508717911
www.g4arch.com
JONATHAN HARTMAN
ARCHITECT
DAWN E. MERKES
ARCHITECT
DAVID SCHNEE
ARCHITECT
JILL EYRES
ARCHITECT
ANDREA GIFFORD
ARCHITECT
WILLIAM LIM
ARCHITECT
2 October 2015
Tom Sinclair
MUNICIPAL RESOURCE GROUP
675 Hartz Avenue, Suite 300
Danville CA 95602
PROJECT
SOUTH SAN FRANCISCO PARK DEVELOPMENT IMPACT FEES UPDATE
SENT VIA
E-Mail:
TOPIC
PARK CONSTRUCTION BUDGETS
This memorandum describes the methodology and recommendation for capital budgeting
for future park construction as part of Municipal Resource Group’s park development
impact fee update study for the City of South San Francisco.
RECOMMENDATION
We are recommending a budget of approximately $18 per square foot, or approximately
$785,000 per acre for park construction. As discussed in more detail below, these
numbers are for construction only, and do not include soft costs.
METHODOLOGY
Scope of Park Construction
This study considers only future parks in South San Francisco; operations and
maintenance costs for current and future parks are ineligible. The City’s 2015 Parks +
Recreation Master Plan identified specific future park needs. Of these proposed projects,
the only one with any level of documented planning is the proposed expansion of Orange
Memorial Park, which is described in the 2007 Orange Memorial Park Master Plan
Update. To date, no formal planning has been done for the other projects proposed in the
City’s 2015 Parks + Recreation Master Plan.
On July 31, 2015, I met with Sharon Ranals and Samantha Haimovitch of the City’s
Parks and Recreation Department to review potential development strategies for future
parks. The purpose was not to develop a specific construction scope for each park, but to
discuss the types of activities that these parks should support and the associated amenities
that would be needed to support those activities.
Based on this discussion, the following projects were selected as generally representative
of the level/intensity of development that South San Francisco anticipates for future
parks. These parks and their general scope of amenities/ improvements served as the
foundation of the construction budget for future parks.
2 October 2015 Tom Sinclair Memorandum Page 2
Sample Parks Used for Cost Model Park Type Acres
1. Orange Memorial Park Expansion community park 7.6
2. El Camino Real/Chestnut Avenue Park community park 9.1
3. Downtown Park neighborhood park 2.0
4. East of 101 Park neighborhood park 2.0
5. Sunshine Gardens Elementary playlot
(on SSFUSD property)
0.5
6. Linden & Armour Park mini park 0.3
7. Miller Avenue Playlot playlot/mini park 0.4
8. Railroad Avenue Linear Park linear park 7.5
9. Lindenville Linear Park linear park 1.6
10. PG&E Corridor Park linear park 4.0
11. SFPUC/Elkwood Linear Park linear park 0.4
Total Acres Used in Analysis 35.4
Park Construction Cost Model
Costs for park construction were generally developed on a per-unit basis. Reference
materials included City-provided data on recent park construction projects (such as the
2014-2015 improvements at Buri Buri Park, Clay Avenue Playground, Francisco Terrace
Playlot, and Winston Manor #1 Park); anticipated construction costs for development of
Brentwood Park (currently in design); and the anticipated costs for projects identified in
the 2015 South San Francisco Parks Deferred Maintenance Assessment. These unit costs
were adjusted as needed to include contractor overhead and profit and for escalation to
2015 as appropriate. For perspective, we also connected with some of the landscape
consultants with whom we work regularly to review the trends they’re seeing in park
construction costs in the Bay Area and Northern California.
The amenities planned for selected future parks were quantified and totaled, and the unit
costs were applied to each, as follows:
Amenity
Quantity
Cost/
Cost Range
Extended
Cost
Diamond fields 2 fields $275,000/each $550,000
Soccer/rectangular fields (including lights) 2 fields $310,000/each $620,000
Basketball/hard courts 1 court $55,000/each $55,000
BBQ area 3 areas $80,000/each $240,000
Play equipment (including base/footing, etc.) 8 structures $350,000/each $2,100,000
Small park building (e.g., restroom, concessions) 5 buildings $200,000/each $1,000,000
Site demolition/preparation ~950,000 SF $4-$5/SF $3,990,000
Site equipment – benches, water fountains, etc. ~950,000 SF $0.5-$1/SF $670,000
Hardscape – parking, walkways, plazas, etc. ~110,000 SF $10-$25/SF $1,590,000
Landscaping (including irrigation, drainage, etc.) ~550,000 SF $4-10/SF $2,120,000
Linear park (inclusive of all developments) ~590,000 SF $15/SF $8,850,000
Subtotal $21,400,000
Design contingency* 15% $3,210,000
Construction contingency** 10% $2,140,000
Construction Budget for 11 sample parks ~$16/SF $26,750,000
* design contingency to allow for development of the program and design at individual future parks
** construction contingency to accommodate unforeseen issues/changes during construction
2 October 2015 Tom Sinclair Memorandum Page 3
The budget model also includes an allowance of $4.5 million for improvements at the
Terra Bay, Sign Hill, and Skyline open space amenities proposed in the 2015 Parks +
Recreation Master Plan, which represents approximately $2 per square foot in addition
to the per-square-foot construction budget for parks.
Together, the total amount represents an estimate of what these future parks and open
space projects would cost to build today. Dividing the total construction cost by the
combined total park development area resulted in the recommended construction cost per
square foot and per acre.
DISCUSSION
These estimates are for construction only. They include allowances for general
conditions, contractor overhead and profit, and design and construction contingencies.
They do not include design fees or other soft costs (which could be budgeted at 20%-30%
of construction), escalation beyond 2015, land acquisition, surveying, geotechnical
services, hazardous materials abatement, project management services, construction
management services, etc.
The absence of detailed scope for most of the proposed future park projects is a factor in
this methodology. In some cases, land for the proposed future parks has not yet been
identified or acquired. The contingencies we have built into this cost model should
accommodate minor variations in project size and development scope as the City moves
forward with individual projects.
Please do not hesitate to contact us to discuss our methodology.
Jill Eyres
Associate
JE/s
CITY OF SOUTH SAN FRANCISCO
PARK CONSTRUCTION FEE AND PARKLAND ACQUISITION FEE
SUPPLEMENTAL REPORT
MANAGEMENT ADVISORY SERVICES
JUNE 2019
EXHIBIT B
CITY OF SOUTH SAN FRANCISCO
PARK CONSTRUCTION FEE AND PARKLAND ACQUISITION FEE
SUPPLEMENTAL REPORT
Table of Contents
EXECUTIVE SUMMARY ......................................................................................................................................... .1
I. INTRODUCTION AND BACKGROUND INFORMATION AND PURPOSE .................................... 5
II. PARK CONSTRUCTION REFURBISH PROJECTS................................................................................. 8
III. UPDATED PARK CONSTRUCTION COSTS AND FEE ..................................................................... 11
IV. PROPOSED PARK FEES ............................................................................................................................. 15
ATTACHMENT 1: PARK CONSTRUCTION PROJECT DESCRIPTIONS
CITY OF SOUTH SAN FRANCISCO
PARK CONSTRUCTION FEE AND PARKLAND ACQUISITION FEE
SUPPLEMENTAL REPORT
JUNE 2019
EXECUTIVE SUMMARY
The City of South San Francisco (“City) has established goals of three acres of
community and neighborhood parkland and park facilities per one-thousand residents and
one-half acre of parks per one-thousand employees. City policy is for new development
projects to contribute proportionately toward these goals.
The City adopted ordinances in 2016, 2017 and 2018 amending the South San
Francisco Municipal Code (SSFMC) and adopting a Parkland Acquisition Fee and a Park
Construction Fee to provide funding to achieve the City’s parkland and park facility goals.
This Supplemental Report has been prepared by Management Advisory Services (MAS) to
assist the City in achieving three additional objectives:
(i) Confirm that Park Construction Fees may be used to refurbish and expand park
facilities on existing City-owned parkland
City park and recreation facilities are reaching capacity. 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.
This Supplemental Report identifies the types of facilities the City may refurbish.
Expanded playgrounds, improvements to sports fields and sports courts, building passive
park facilities, installing lighting, paths, grading, drainage and irrigation, and implementing
other similar refurbish project improvements will address and mitigate the additional
impacts and demands created by future residential and non-residential development
projects. Chapter II of this Supplemental Report describes the refurbish projects and
provides the basis and proposed findings to confirm that Park Construction Fees may be
used to fund refurbish projects.
(ii) Update the estimate of the average park construction cost per acre
The SSFMC permits the City to periodically obtain an updated estimate of park
construction costs to adjust the Park Construction Fee. The City adjusted the Park
Construction Fee in 2018 by a 3.94% inflation escalator, as permitted in the SSFMC.
However, the City has not previously obtained a new estimate of the average construction
cost per acre since the initial Park Construction Fee ordinance and resolution were adopted
in 2016.
The previously established park construction and soft cost estimate for purposes of
calculating a maximum Park Construction Fee was $1,019,911 per acre. The City has now
obtained a new estimate of the average construction cost per acre and intends to modify the
Park Construction Fee to reflect current construction costs. The 2019 average construction
and soft cost is estimated at $2,526,395 per acre. This cost is higher than the 2016 costs
primarily due to the type of park improvements and facilities that the City now expects to
construct, and in part due to generally increasing park construction costs.
The Park Construction Fee is based on the acres required to serve residents and
employees, the average number of residents in residential units, the average number of
employees in non-residential projects, and the average construction cost per acre. The
Park Construction Fee and Parkland Acquisition Fee June 2019
Supplemental Report
2
maximum Park Construction Fee based on 2019 park construction costs is presented in
Table ES-1 and Table ES-2.
Table ES-1: Maximum Park Construction Fee per Residential Unit
Units in Structure Fee per Unit
1 (single-family residential unit) $26,148
2 to 4 (duplex to four-plex) $22,586
5 to 19 $19,175
20 to 49 $15,462
50 or more $13,491
Mobile home $20,085
Source: City of South San Francisco; MAS
Table ES-2: Maximum Park Construction Fee per Non-Residential 1,000 Square Feet
Classification Fee per 1,000 Square
Feet
Commercial/Retail $3,158
Hotel/Visitor $3,006
Office/R&D $2,804
Industrial $1,326
Source: City of South San Francisco: MAS
The City may adopt a Park Construction Fee under authority of the Mitigation Fee
Act for future development projects that is equal to or below the amounts identified in
Table ES-1 and Table ES-2. Chapter III of this Supplemental Report further describes the
methodology establishing the maximum Park Construction Fee that the City may levy using
the updated park construction costs.
(iii)Restructure the existing park fee reduction factors to increase the Park
Construction Fee to fund refurbish projects, and reduce the Parkland Acquisition
Fee commensurately, while not increasing the total amount of park fees
This Supplemental Report calculates by how much the Park Construction Fee may
be increased to provide additional funding to refurbish and expand existing facilities, and by
how much the Parkland Acquisition Fee would need to be reduced to offset that increase,
with the ultimate goal being no net increase in total park fees levied on future development
projects.
After adoption of the Parkland Acquisition Fee and the Park Construction Fee for
residential development projects in 2016, the City reduced (“discounted”) the maximum
fees by a factor of 0.30. Current fees per residential unit are presented in Table ES-3.
Table ES-3: Current Reduced Park Fees per Residential Unit
Residential Units in Structure Park
Construction Fee
Parkland
Acquisition Fee
Total Current
Park Fees
Discount Factor .30 .30
1 (single-family residential unit) $7,389 $21,735 $29,124
2 to 4 (duplex to four-plex) $6,383 $18,744 $25,157
5 to 19 $5,419 $15,939 $21,358
20 to 49 $4,369 $12,852 $17,221
50 or more $3,812 $11,214 $15,026
Mobile home $5,676 $16,695 $22,371
Source: City of South San Francisco
Note: Rounding may result in minor differences in this table and others in the Supplemental Report.
Park Construction Fee and Parkland Acquisition Fee June 2019
Supplemental Report
3
In adopting the Parkland Acquisition Fee and the Park Construction Fee for non-
residential development projects in 2017, the City reduced the maximum fees by a factor of
0.75. Current fees for non-residential development projects per one-thousand square feet
are presented in Table ES-4.
Table ES-4: Current Reduced Park Fees per Non-Residential 1,000 Square Feet
Non-Residential Land Use Type Park
Construction Fee
Parkland
Acquisition Fee
Total Current
Park Fees
Discount Factor .75 .75
Commercial/Retail $319 $938 $1,257
Hotel/Visitor $303 $893 $1,196
Office/R&D $283 $833 $1,116
Industrial $134 $394 $ 528
Source: City of South San Francisco
Proposed Fees
Removing the .30 discount factor entirely for the Park Construction Fee for
residential development projects would allow that fee to be at its maximum level. The
Parkland Acquisition Fee for residential development projects would need to be changed
from the current discount factor of .30 to a discount factor of .904 to offset the increase, in
order to maintain the current total park fees. The total proposed park fees per residential
unit would be as presented in Table ES-5. The total proposed park fees per residential unit
would be the same as the current total park fees in Table ES-3.
Table ES-5: Proposed Park Fees per Residential Unit
Residential Units in Structure Park
Construction Fee
Parkland
Acquisition Fee Total Park Fees
Discount Factor None .904
1 (single-family residential unit) $26,148 $2,976 $29,124
2 to 4 (duplex to four-plex) $22,586 $2,571 $25,157
5 to 19 $19,175 $2,183 $21,358
20 to 49 $15,462 $1,759 $17,221
50 or more $13,491 $1,535 $15,026
Mobile home $20,085 $2,286 $22,371
Source: MAS
The calculation of the proposed fees for non-residential development projects is
somewhat different than the calculation of the proposed fees for residential development
projects because the proposed maximum Park Construction Fee for non-residential
development projects is higher than the sum of the current Park Construction Fee and
Parkland Acquisition Fee for non-residential development projects.
The maximum proposed Park Construction Fee would need to be reduced by a
factor of .602 to achieve a fee that does not exceed the sum of both current fees. The
Parkland Acquisition Fee would need to be changed from its current discount factor of .75
to a discount factor of 1.0 to offset the increase in the Park Construction Fee (i.e. the City
would discount 100% of the Parkland Acquisition Fee for non-residential development
projects).
The proposed fees per one-thousand square feet of non-residential development
projects would be as presented in Table ES-6. The total proposed park fees per one-
thousand square feet would be the same as the current total park fees in Table ES-4.
Park Construction Fee and Parkland Acquisition Fee June 2019
Supplemental Report
4
Table ES-6: Proposed Park Fees per Non-Residential 1,000 Square Feet
Non-Residential Land Use Type Park
Construction Fee
Parkland
Acquisition Fee Total Park Fees
Discount Factor .602 1 (or 100%)
Commercial/Retail $1,257 $ 0 $1,257
Hotel/Visitor $1,196 $ 0 $1,196
Office/R&D $1,116 $ 0 $1,116
Industrial $ 528 $ 0 $ 528
Source: MAS
Park Fee Revenue Estimate
The City has conducted an analysis to estimate the current Parkland Acquisition Fee
and Park Construction Fee revenue that will be received through fiscal year 2023-24, based
on the expected future residential and non-residential development and the existing fee
levels. The City estimated that Park Construction Fee revenue may total approximately $5.3
million and Parkland Acquisition Fee revenue may total approximately $18.3 million
(including Quimby Act In-lieu Fees).
Under the proposed fee structure, the estimated Park Construction Fee revenue may
total approximately $16.6 million and Parkland Acquisition Fee revenue may total
approximately $7.0 million (including Quimby Act In-lieu Fees). This would be an increase
of $11.3 million in Park Construction Fee revenue (and a commensurate decrease in
Parkland Acquisition Fee revenue).
Table ES-7 summarizes the current reduction factors, proposed reduction factors
and estimated fee revenue through fiscal year 2023-24.
Table ES-7: Summary of Current and Proposed Reduction Factors, and Estimated Fee Revenue
Residential Development Non-Residential
Development
Estimated Fee Revenue
Through FY 2023-24
(millions)
Park
Construction
Fee Discount
Factor
Parkland
Acquisition
Fee
Discount
Factor
Park
Construction
Fee Discount
Factor
Parkland
Acquisition
Fee
Discount
Factor
Park
Construction
Acquisition
Fee
Parkland
Acquisition
Fee
Current .30 .30 .75 .75 $ 5.3 $18.3
Proposed None .904 .602 1.0 (100%) $16.6 $ 7.0
Source: City of South San Francisco; MAS
The City has estimated the cost to refurbish and expand certain facilities in eleven
existing parks. The total cost, at a “planning level” exceeds sixty-five million dollars. While
Park Construction Fee revenue alone will not nearly be sufficient to fund all of the refurbish
projects, the fees will provide partial funding to offset the impact of new development, to
serve new residents and employees, and to maintain existing levels of service.
Park Construction Fee and Parkland Acquisition Fee June 2019
Supplemental Report
5
I. INTRODUCTION, BACKGROUND INFORMATION AND PURPOSE
______________________________________________________________________________
Introduction and Background Information
The City of South San Francisco (“City) General Plan, Parks + Recreation Master Plan
and East of 101 Area Plan establish goals of three acres of community and neighborhood
park facilities per one-thousand residents and one-half acre of parks per one-thousand
employees. City policy is for new development projects to contribute proportionately
toward these goals.
The City adopted ordinances in 2016, 2017 and 2018 amending the South San
Francisco Municipal Code (SSFMC) to provide funding to achieve the City’s parkland and
park facility goals. Parkland dedication requirements and in-lieu fees for qualifying
residential subdivision development projects were established under authority of the
Quimby Act (Government Code section 66477 et seq.). A Parkland Acquisition Fee for non-
Quimby Act residential and non-residential (commercial) development projects was
established under authority of the Mitigation Fee Act (Government Code section 66000 et
seq.). A Park Construction Fee for all development projects were also established under
authority of the Mitigation Fee Act.
The Quimby Act In-Lieu Fee and the Parkland Acquisition Fee provide funding to
purchase land suitable for park purposes. The Park Construction Fee provides funding to
build park facilities and physical improvements.
The adopted land dedication and fee requirements were based in part on a report
prepared by Municipal Resource Group LLC (MRG) (March 2016) which recommended the
framework for the land dedications and fee requirements to offset the impact of future
development projects. The MRG report summarized the procedural requirements and
proposed findings required to adopt the fees.
Purpose of the Supplemental Report
This Supplemental Report has been prepared by Management Advisory Services
(MAS) to assist the City in achieving three additional objectives:
(i) Confirm that the Park Construction Fee may be used to refurbish and expand park
facilities on existing City-owned parkland
The Mitigation Fee Act permits local agencies to establish and collect a fee as a
condition of approval of a development project for the purpose of defraying the cost of
public facilities required to serve the development project. The Mitigation Fee Act states
“(a) fee shall not include the costs attributable to existing deficiencies in public facilities but
may include the costs attributable to the increased demand for public facilities reasonably
related to the development project in order to (1) refurbish existing facilities to maintain the
existing level of service or (2) achieve an adopted level of service that is consistent with the
general plan.” (italics added) (Government Code section 66001(g)).
The 2016 MRG report focused primarily on the need to acquire new parkland and
construct new facilities to serve residents and employees generated by future development
projects. The City has recognized that existing City park and recreation facilities are
reaching capacity and the City finds that in addition to acquiring new land and constructing
new facilities, refurbishing and expanding certain existing park facilities is a cost effective
Park Construction Fee and Parkland Acquisition Fee June 2019
Supplemental Report
6
and efficient way to serve future residents and employees and to maintain existing levels of
service. Consequently, the City commissioned this Supplemental Report in order to outline
the appropriate way to use the Park Construction Fee for the refurbishment and expansion
of existing facilities to serve new residents and employees and to maintain existing levels of
service. This Supplemental Report expands upon but does not alter the analysis and
conclusions of the 2016 MRG report and findings that the Parkland Acquisition Fee and the
Quimby Act In-Lieu Fee may be used for acquisition of new parkland and the Park
Construction Fee may be used to construct new facilities on new parkland.
This Supplemental Report identifies the types of facilities the City may refurbish and
expand to serve new residents and employees and to maintain existing levels of service, and
supports the City’s objective to confirm and codify the intent to use the Park Construction
Fee for this purpose by following the Mitigation Fee Act procedural requirements. This
Supplemental Report proposes findings required by the Mitigation Fee Act, including the
following:
1. Identify the purpose of the fee.
2. Identify the use to which the fee is to be put.
3. Determine how there is a reasonable relationship between the fee's use and the type
of development project upon which the fee is imposed.
4. Determine how there is a reasonable relationship between the need for the public
facility and the type of development project upon which the fee is imposed.
5. Determine how there is a reasonable relationship between the amount of the fee
and the cost of the public facility or portion of the public facility attributable to the
development upon which the fee is imposed.
Chapter II of this Supplemental Report addresses this objective.
(ii) Update the estimate of the average park construction cost per acre
The SSFMC permits the City to periodically obtain an updated estimate of park
construction costs to adjust the Park Construction Fee.
The City increased the Park Construction Fee in 2018 by a 3.94% inflationary
increase in park construction costs as reflected in the Engineering News Record
Construction Cost Index and as permitted in the SSFMC. However, the City has not
previously obtained a new estimate of the average construction cost per acre since the
initial Park Construction Fee ordinance and resolution were adopted in 2016. The City has
now obtained a new estimate of the average construction cost per acre and intends to
modify the Park Construction Fee to reflect current construction costs.
Chapter III of this Supplemental Report addresses this objective.
(iii)Restructure the existing park fee reduction factors to increase Park Construction
Fee to fund refurbish projects, and reduce the Parkland Acquisition Fee
commensurately, while not increasing the total amount of park fees
The 2016 MRG report identified the maximum Parkland Acquisition Fee and Park
Construction Fee that could be levied on development projects. The SSFMC currently
includes reduction (“discount”) factors that set fees below the maximum fees.
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This Supplemental Report calculates by how much the Park Construction Fee may
be increased to provide additional funding to refurbish and expand existing facilities, and by
how much the Parkland Acquisition Fee would need to be reduced to offset that increase,
with the ultimate goal being no net increase in total park fees levied on residential and non-
residential development projects.
Chapter IV of this Supplemental Report addresses this objective.
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II. PARK CONSTRUCTION – REFURBISH PROJECTS
______________________________________________________________________________
The Mitigation Fee Act requires that “(a)t the time the local agency imposes a fee for
public improvements on a specific development project, it shall identify the public
improvements that the fee will be used to finance.” (Government Code section 66006(f)).
The City has identified eleven projects to refurbish and expand parks and recreation
facilities that if constructed would accommodate new residents and employees and would
maintain existing levels of service or would achieve the City’s adopted levels of service
established in the General Plan and other City policy documents.
Refurbish Projects
Table II-1 identifies the refurbish and expansion projects that the Park Construction
Fee may be used to finance. Additional projects may also be added to the list over time,
which will be identified by the City in a capital improvement plan or other documents,
consistent with the requirements of the Mitigation Fee Act.
Table II-1: Park Improvement Refurbish Projects
Park Park Improvements to Accommodate New Residents and Employees and to
Maintain Existing Levels of Service
Gardiner Park
Expand the playground to accommodate and provide activities for additional age
groups of children; replace a basketball court with a multi-sport court to increase the
range of activities and use; construct sitting and picnic areas to accommodate
additional park activities and multi-generational use of park facilities.
Orange
Memorial Park
Replace the existing baseball and softball fields with more durable fields including
potential conversion from natural turf to synthetic turf to accommodate additional
hours of programming; add facilities for soccer programming; install lighting to
provide more hours of play; expand seating to accommodate additional use of
facilities; construct a new path of travel to increase access and use of fields.
Sellick Park
Construct a new playground to accommodate all age groups; regrade the lawn area to
allow soccer practice and informal sports and games; construct a new path of travel to
increase access and use of fields.
Avalon Park
Construct grading, drainage, irrigation and structural improvements to reduce closure
time due to rain and routine maintenance, resulting in additional and expanded hours
of field use.
Buri Buri Park
Construct grading, drainage, irrigation and structural improvements to reduce closure
time due to rain and routine maintenance, resulting in additional and expanded hours
of field use.
Hillside Park
Construct drainage improvements and replace soccer field turf and irrigation;
improve the path of travel; and install redesigned lighting to allow concurrent play
and significantly higher overall field use.
Southwood
Park
Construct grading, drainage, irrigation and structural improvements to reduce closure
time due to rain and routine maintenance, resulting in additional and expanded hours
of field use.
Alta Loma Park
Construct grading, drainage, irrigation and structural improvements to reduce closure
time due to rain and routine maintenance, resulting in additional and expanded hours
of field use.
Newman and
Gibbs Park
Expand the playground to accommodate and provide activities for additional age
groups of children; construct new sitting and picnic areas to accommodate additional
park use and multi-generational use of park.
Dundee Park
Expand the playground to accommodate and provide activities for additional age
groups of children; construct new sitting and picnic areas to accommodate additional
park use and multi-generational use of park.
Orange
Memorial Park
Aquatics
Construct major expansion of facility to full aquatics center and construct new pool to
accommodate expanded programming including water aerobics, swim lessons and
water recreational activities use.
Source: City of South San Francisco
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The City may continue to use the proceeds of the Park Construction Fee to construct
improvements on new parkland acquired by the City, and by way of this Supplemental
Report and actions to be taken by the City to codify, the City may also use the proceeds to
refurbish and expand existing park facilities to serve new residents and employees and to
maintain existing levels of service.
The Mitigation Fee Act requires a local agency considering an action establishing,
increasing or imposing a fee to address certain procedural requirements, which may also be
used in making findings in support of City actions to confirm such uses, as follows:
1.Identify the purpose of the fee.
The purpose of the Park Construction Fee is to provide funding to achieve the City’s
park service levels and to provide adequate recreational services for South San
Francisco residents and employees, as established in the General Plan, the Parks +
Recreation Master Plan and the East of 101 Area Plan. The Park Construction Fee
supports the City’s goal of three acres of community and neighborhood parks per
one-thousand future residents and one-half acre of parks per one-thousand new
employees. The Association of Bay Area Governments (ABAG) estimated a 2015
South San Francisco population of 66,600 and forecasts a 2035 population of 76,200
(an increase of 14.4%). ABAG estimated a 2015 workforce of 46,340 employees and
forecasts a 2025 workforce of 53,380 employees (an increase of 15.2%). These
new residents and new employees will place additional demand on park facilities.
The City will continue to use the proceeds of the Park Construction Fee to construct
new park facilities on new parkland acquired by the City and will also use the
proceeds of the Park Construction Fee to refurbish and expand 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.Identify the use to which the fee is to be put.
The proceeds from the Park Construction Fee will continue to be used to construct
new park facilities on new parkland acquired by the City, and will also be used to
refurbish existing park 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 refurbish projects that will maintain and
further the City’s goals of three acres of parkland per one-thousand future residents
and one-half acre per one-thousand new employees, as identified in the City’s
General Plan, the Parks + Recreation Master Plan and the East of 101 Area Plan.
3.Determine the relationship between the fee's use and the type of development
project on which the fee is imposed.
The Park Construction Fee is levied upon residential development projects and non-
residential (commercial) development projects. New residents in residential
development projects and new employees in 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 refurbish projects will address and
mitigate the additional impacts and demands created by future residential and non-
residential development projects.
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4. Determine the relationship between the need for the community facility and the
type of development project on which the fee is imposed.
The Park Construction Fee is levied upon residential development projects and non-
residential development projects, which generate new residents and employees in
the community. The refurbished 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. Determine the relationship between the amount of the fee and the cost of the
community facility or portion of the community facility attributable to the
development on which the fee is imposed.
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 were 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 in each type of non-residential development project.
Confirming that Park Construction Fee can be used for refurbish 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.
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III. UPDATED AVERAGE PARK CONSTRUCTION COST PER ACRE; UPDATED PARK
CONSTRUCTION FEE USING UPDATED AVERAGE PARK CONSTRUCTION COST
The Park Construction Fee adopted in 2016 was based on an estimated average
construction (hard) cost of $785,000 per acre (Group 4 Architecture Research + Planning
Inc., October 2, 2015 Memorandum, Attachment 2 in the March 2016 MRG report) and
design, construction management and permitting (soft) costs of $196,250 per acre, for a
total park construction cost of $981,250 per acre.
The City increased the Park Construction Fee in 2018 by a 3.94% inflationary
escalation in park construction costs as reflected by the Engineering News Record
Construction Cost Index (ENR-CCI) and as permitted in SSFMC section 8.67.080(i). The
previously established park construction cost for purposes of calculating a maximum Park
Construction Fee was $1,019,911 per acre.
SSFMC section 8.67.080(g) Determining Average Construction Cost per Acre states:
“In order to determine the average hard and soft construction costs per acre, the city will
obtain an estimate of these costs from a qualified architecture or construction firm. Such
estimate setting the average construction cost per acre shall be approved by resolution of
the city council. A new estimate may be periodically conducted to reflect changes in the cost
of construction; provided, however, that such estimate may not be conducted more than
once per year.”
The City has not previously obtained a new estimate of the average construction
cost per acre since the initial Park Construction Fee ordinance and resolution were adopted
in 2016, but did adjust the average construction cost in accordance with the above-
referenced 3.94% ENR-CCI escalation. The City now intends to modify the Park
Construction Fee to reflect 2019 park construction costs based on a new estimate of the
average construction cost per acre.
This chapter of the Supplemental Report updates park construction costs and
provides the analysis to modify the Park Construction Fee levied upon future residential
development projects and non-residential development projects.
Updated Average Park Construction Cost per Acre
In May 2018 the City received estimates from SSA Landscape Architecture and
Verde Design for construction costs for six representative South San Francisco park
construction projects. The 2018 cost estimates have been 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. Soft costs are assumed in the 2019 park construction cost
estimate to be 30% of hard construction costs, due to the higher expected design and
construction management costs related to refurbish projects.
Table III-1 provides the 2019 construction cost, park project acreage and
construction cost per acre. The average construction cost is estimated at $2,526,395 per
acre. This construction cost is higher than the 2016 construction costs primarily due to the
type of park improvements and facilities that the City now expects to construct, and in part
due to generally increasing park construction costs.
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Table III-1: Estimated Park Construction Cost per Acre
Park Project 2019 Construction
Cost Estimate
Park Project
Acreage
Avalon Park Ballfields $ 735,176 0.87 acres
Buri Buri Park Ballfields $ 3,069,304 1.26 acres
Gardiner Tot Lot $ 1,150,238 0.23 acres
Hillside Park Field $ 6,331,539 3.48 acres
Orange Memorial Park Ballfield $14,467,928 4.11 acres
Sellick Park Playground $ 3,728,842 1.72 acres
Total $29,483,027 11.67 acres
Average Construction Cost per Acre $ 2,526,395
Source: City of South San Francisco; SSA Landscape Architecture; Verde Design; MAS
The City may use this updated park construction cost in setting the average
construction cost per acre by resolution to be adopted by the City Council.
The six park construction project descriptions and cost estimates are further
detailed in Attachment 1 to this Supplemental Report.
Calculation of the Maximum Park Construction Fee per Residential Unit
The Park Construction Fee for residential development projects is levied on a per
residential unit basis, based on the average number of residents who live in a particular
type of residential unit. Different types of residential units have different average numbers
of residents per unit.
The United States Census Bureau publishes annual demographic and population
information, known as American FactFinder data. The 2014 American FactFinder data has
been used by the City in establishing residents per residential unit. The data is provided per
residential unit, based on the number of units in a structure. For all South San Francisco
residential units, the average is 3.12 persons per unit. The data indicates that the more
units in a structure, the fewer persons live in each unit. Table III-2 provides data for
residents per unit.
Table III-2: Residents per Residential Unit, City of South San Francisco
Units in Structure Residents per Unit
1 (single-family residential unit) 3.45
2 to 4 (duplex to four-plex) 2.98
5 to 19 2.53
20 to 49 2.04
50 or more 1.78
Mobile home 2.65
Average, City of South San Francisco 3.12
Source: United States Census Bureau, 2014 American FactFinder, Table B25124
The City's standard of three acres per one-thousand future residents is equal to .003
acres per resident (three acres divided by one-thousand residents). The parkland
improvements required per residential unit are calculated in Table III-3, below, by
multiplying .003 acres per resident by the average number of residents in the residential
units indicated in Table III-2.
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Table III-3: Park Acres to be Improved per Residential Unit
Units in Structure Acres per
Resident
Residents per
Unit
Park Acres to be
Improved per
Residential Unit
1 (single-family residential unit) 0.003 3.45 0.01035
2 to 4 (duplex to four-plex) 0.003 2.98 0.00894
5 to 19 0.003 2.53 0.00759
20 to 49 0.003 2.04 0.00612
50 or more 0.003 1.78 0.00534
Mobile home 0.003 2.65 0.00795
Source: City of South San Francisco General Plan and Park + Recreation Master Plan; United States
Census Bureau, 2014 American FactFinder, Table B25124; MAS
Note: Rounding may result in minor differences in calculations in this table and others in the
Supplemental Report
The Park Construction Fee is based on the amount of land required to be improved
and the cost of constructing park facilities and improvements. Table III-4 calculates the
maximum Park Construction Fee per residential unit by multiplying the required acres per
unit (from Table III-3) by the $2,526,395 park construction cost per acre (from Table III-1).
Table III-4: Maximum Park Construction Fee per Residential Unit
Units in Structure Park Acres per
Unit
Construction Cost
per Acre Fee per Unit
1 (single-family residential unit) 0.01035 $2,526,395 $26,148
2 to 4 (duplex to four-plex) 0.00894 $2,526,395 $22,586
5 to 19 0.00759 $2,526,395 $19,175
20 to 49 0.00612 $2,526,395 $15,462
50 or more 0.00534 $2,526,395 $13,491
Mobile home 0.00795 $2,526,395 $20,085
Source: City of South San Francisco; MAS
The City may adopt a Park Construction Fee under authority of the Mitigation Fee
Act for residential development projects that is equal to, or below the amounts identified in
Table III-4.
The City will also incur costs to administer the fee program and to prepare the
compliance analyses and reports required by the Mitigation Fee Act. The City has imposed
an administrative fee by resolution of the City Council to cover the cost of administering the
programs and the cost of compliance with statutory requirements.
Calculation of the Maximum Park Construction Fee per One-thousand Square Feet of
Non-Residential Development Projects
The Park Construction Fees is levied on a per one-thousand square foot basis for
non-residential development (commercial) projects. Different types of non-residential
development projects have different average numbers of employees per one-thousand
square feet. The South San Francisco General Plan provides the data for the number of
employees per one-thousand square feet of building space, as cited in Table III-5, below.
Table III-5 calculates the parkland acreage required to be improved per one-
thousand square feet of new non-residential building space by multiplying the number of
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14
employees per one-thousand square feet by the acreage required per employee (0.5 acres
per one-thousand employees is equal to .0005 acres per employee).
Table III-5: Park Acres to be Improved per Non-Residential 1,000 Square Feet
Classification Employees per
1,000 Square Feet
Park Acres Required
per Employee
Acres to be Improved
per 1,000 Square Feet
Commercial/Retail 2.50 .0005 acres .00125 acres
Hotel/Visitor 2.38 .0005 acres .00119 acres
Office/R&D 2.22 .0005 acres .00111 acres
Industrial 1.05 .0005 acres .000525 acres
Source: City of South San Francisco General Plan Land Use Element, page 55; Park + Recreation
Master Plan; MAS
The Park Construction Fee for non-residential development projects is based on the
amount of land required to be improved and the cost of constructing park facilities and
improvements. Table III-6 calculates the maximum Park Construction Fee per one-thousand
square feet of non-residential building space by multiplying the required acres to be
improved per one-thousand square feet (from Table III-5) by the $2,526,395 construction
cost per acre (from Table III-1).
Table III-6: Maximum Park Construction Fee per Non-Residential 1,000 Square Feet
Classification Park Acres per 1,000
Square Feet
Construction Cost
per Acre
Fee per 1,000 Square
Feet
Commercial/Retail .00125 acres $2,526,395 $3,158
Hotel/Visitor .00119 acres $2,526,395 $3,006
Office/R&D .00111 acres $2,526,395 $2,804
Industrial .000525 acres $2,526,395 $1,326
Source: City of South San Francisco; MAS
The City may adopt a Park Construction Fee under authority of the Mitigation Fee
Act for non-residential development projects that is equal to, or below the amounts
identified in Table III-6.
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IV. CALCULATION OF THE PROPOSED INCREASE IN THE PARK CONSTRUCTION
FEE AND REDUCTION OF THE PARKLAND ACQUISITION FEE
______________________________________________________________________________
Refurbish Project Cost Estimates
The City has estimated the costs to refurbish and expand facilities in eleven existing
parks. The total cost, at a “planning level” exceeds sixty-five million dollars. Table IV-1
provides the cost estimates. A City goal is to increase the Park Construction Fee (and reduce
the Parkland Acquisition Fee commensurately) to provide partial funding to refurbish
existing park facilities.
Table IV-1: Estimated Park Construction Refurbish Project Costs
Park Park Refurbish Projects: Planning Budget
Gardiner Park $ 1,150,000
Orange Memorial Park $ 14,467,000
Sellick Park $ 3,728,000
Avalon Park $ 735,000
Buri Buri Park $ 3,069,000
Hillside Park $ 6,331,000
Southwood Park $ 720,000
Alta Loma Park $ 3,080,000
Newman and Gibbs Park $ 820,000
Dundee Park $ 800,000
Orange Memorial Park Aquatics $30,800,000
Total $65,700,000
Source: City of South San Francisco; SSA Landscape Architecture; Verde Design
Maximum and Current Fees
The City adopted the Parkland Acquisition Fee and Park Construction Fee based
on the 2016 MRG report. The City subsequently adjusted the Park Construction Fee in 2018
by a 3.94% increase in park construction costs. While the City has reduced (“discounted”)
the fees by certain factors, as discussed below, Table IV-2 presents the current maximum
fees now allowed (without reduction or discount factors) for residential development
projects; Table IV-3 presents the current maximum fees now allowed for non-residential
development projects.
Table VI-2: Current Maximum Park Fees per Unit for Residential Development Projects
Residential Units in Structure Park
Construction Fee
Parkland
Acquisition Fee
Total Maximum
Park Fees
1 (single-family residential unit) $10,556 $31,050 $41,606
2 to 4 (duplex to four-plex) $ 9,118 $26,820 $35,938
5 to 19 $ 7,741 $22,770 $30,511
20 to 49 $ 6,242 $18,360 $24,602
50 or more $ 5,446 $16,020 $21,466
Mobile home $ 8,108 $23, 850 $31,958
Source: 2016 MRG Report; City of South San Francisco
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Table IV-3: Current Maximum Park Fees per Non-Residential 1,000 Square Feet
Non-Residential Land Use Type Park
Construction Fee
Parkland
Acquisition Fee
Total Maximum
Park Fees
Commercial/Retail $1,275 $3,750 $5,025
Hotel/Visitor $1,214 $3,570 $4,784
Office/R&D $1,132 $3,330 $4,462
Industrial $ 535 $1,575 $2,110
Source: 2016 MRG Report; City of South San Francisco
After adoption of the Parkland Acquisition Fee and the Park Construction Fee for
residential development projects in 2016, the City elected to reduce the maximum fees by a
factor of 0.30. Current fees per residential unit are presented in Table IV-4.
Table IV-4: Current Reduced Park Fees per Unit for Residential Development
Residential Units in Structure Park
Construction Fee
Parkland
Acquisition Fee
Total Current
Park Fees
Discount Factor .30 .30
1 (single-family residential unit) $7,389 $21,735 $29,124
2 to 4 (duplex to four-plex) $6,383 $18,744 $25,157
5 to 19 $5,419 $15,939 $21,358
20 to 49 $4,369 $12,852 $17,221
50 or more $3,812 $11,214 $15,026
Mobile home $5,676 $16,695 $22,371
Source: City of South San Francisco
In adopting the Parkland Acquisition Fee and the Park Construction Fee for non-
residential development projects in 2017, the City reduced the maximum fees by a factor of
0.75. Current fees for non-residential development projects per one-thousand square feet
are presented in Table IV-5.
Table IV-5: Current Reduced Park Fees per Non-Residential 1,000 Square Feet
Non-Residential Land Use Type Park
Construction Fee
Parkland
Acquisition Fee
Total Current
Park Fees
Discount Factor .75 .75
Commercial/Retail $319 $938 $1,257
Hotel/Visitor $303 $893 $1,196
Office/R&D $283 $833 $1,116
Industrial $134 $394 $ 528
Source: City of South San Francisco
Proposed Fees
The purpose of this section of the Supplemental Report is to calculate by how much
the Park Construction Fee may be increased to provide additional funding to refurbish
existing facilities (but not to exceed the maximum fee level) and by how much the Parkland
Acquisition Fee would need to be reduced to offset that increase, with the ultimate goal
being no net increase in total park fees.
Removing the .30 discount factor entirely from the Park Construction Fee for
residential development projects would allow that fee to be at its maximum level, as
identified in this Supplemental Report. The Parkland Acquisition Fee for residential
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17
development projects would need to be changed from its current discount factor of .30 to a
discount factor of .904 to offset the increase. The resulting total park fees per residential
unit would be as presented in Table IV-6.
Note that the total proposed park fees per residential unit in Table IV-6 are the same
as the current total park fees in Table IV-4. Essentially, this change would result in (1)
collection of the Park Construction Fee for residential development projects at the proposed
maximum level, (2) collection of the Parkland Acquisition Fee for residential development
projects at 9.6% of the maximum fees outlined in the 2016 MRG report, and (3) no change
in the total park fees per residential unit.
Table IV-6: Proposed Park Fees per Unit for Residential Development
Residential Units in Structure Park
Construction Fee
Parkland
Acquisition Fee Total Park Fees
Reduction Factor None .904
1 (single-family residential unit) $26,148 $2,976 $29,124
2 to 4 (duplex to four-plex) $22,586 $2,571 $25,157
5 to 19 $19,175 $2,183 $21,358
20 to 49 $15,462 $1,759 $17,221
50 or more $13,491 $1,535 $15,026
Mobile home $20,085 $2,286 $22,371
Source: MAS
The calculation of the proposed fees for non-residential development projects is
somewhat different than the calculation for residential development projects because the
proposed maximum Park Construction Fee for non-residential development projects is
higher than the sum of the current Park Construction Fee and Parkland Acquisition Fee for
non-residential development projects.
This Supplemental Report proposes to set the Park Construction Fee to be equal to
the sum of both current fees, which again is lower than the proposed maximum Park
Construction Fee. The maximum Park Construction Fee would need to be reduced by a
discount factor of .602 to achieve a fee that does not exceed the sum of both current fees.
The Parkland Acquisition Fee would need to be changed from its current discount factor of
.75 to a discount factor of 1.0 to offset the increase in the Park Construction Fee (i.e. the City
would discount 100% of the Parkland Acquisition Fee).
The resulting fees per one-thousand square feet of non-residential development
projects for both fees would be as presented in Table IV-7. Note that the proposed total
park fees per one-thousand square feet in Table IV-7 would be the same as the current total
park fees in Table IV-5. Essentially, this change would result in (1) collection of the Park
Construction Fee for non-residential development projects at approximately 39.8% of the
proposed maximum fee, (2) no collection of the Parkland Acquisition Fee for non-
residential development projects, as it would be set at 0% of the maximum fees outlined in
the 2016 MRG report, and (3) no change in the total park fees for non-residential
development projects.
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Table IV-7: Proposed Park Fees per Non-Residential 1,000 Square Feet
Non-Residential Land Use Type Park
Construction Fee
Parkland
Acquisition Fee Total Park Fees
Discount Factor .602 1 (or 100%)
Commercial/Retail $1,257 $ 0 $1,257
Hotel/Visitor $1,196 $ 0 $1,196
Office/R&D $1,116 $ 0 $1,116
Industrial $ 528 $ 0 $ 528
Source: MAS
Other combinations of changes to the reduction factors for the Park Construction
Fee and the Parkland Acquisition Fee could also be considered.
Park Fee Revenue Estimate
The City has conducted an analysis to estimate the current Parkland Acquisition Fee
revenue and Park Construction Fee revenue that will be received through fiscal year 2023-
2024, based on the expected future residential and non-residential development projects
and the existing fee levels. The City estimated that Park Construction Fee revenue may total
approximately $5.3 million and Parkland Acquisition Fee revenue may total approximately
$18.3 million (including Quimby Act In-lieu Fees). The City’s analysis assumed continuation
of a .30 discount factor for the Parkland Acquisition Fee and Park Construction Fee for
residential development projects, and a .75 discount factor for the Parkland Acquisition Fee
and Park Construction Fee for non-residential development projects.
Under the proposed fee structure, which provides the maximum Park Construction
Fee and a .904 discount factor for the Parkland Acquisition Fee for residential development
projects, and a .602 discount factor for the Park Construction Fee and a 1.0 (100%) discount
factor for the Parkland Acquisition Fee for non-residential development projects, the
estimated Park Construction Fee revenue may total approximately $16.6 million and
Parkland Acquisition Fee revenue may total approximately $7.0 million (including Quimby
Act In-lieu Fees). This would be an increase of $11.3 million in Park Construction Fee
revenue through fiscal year 2023-2024 (and a commensurate decrease in Parkland
Acquisition Fee revenue). Table IV-8 summarizes the current discount factors, proposed
discount factors and estimated fee revenue through fiscal year 2023-2024.
Table IV-8: Summary of Current and Proposed Reduction Factors, and Estimated Fee Revenue
Residential Development Non-Residential
Development
Estimated Fee Revenue
Through FY 2023-24
(millions)
Park
Construction
Fee Discount
Factor
Parkland
Acquisition
Fee
Discount
Factor
Park
Construction
Fee Discount
Factor
Parkland
Acquisition
Fee
Discount
Factor
Park
Construction
Acquisition
Fee
Parkland
Acquisition
Fee
Current .30 .30 .75 .75 $ 5.3 $18.3
Proposed None .904 .602 1.0 (100%) $16.6 $ 7.0
Source: MAS
While the Park Construction Fee alone will not be sufficient to fund all of the
refurbish projects, the fees will provide partial funding to offset the impact of new
development, to serve new residents and employees, and to maintain existing levels of
service.
EXHIBIT A-1
City of South San Francisco Park Construction Estimate
May 2019
Park Name:
Avalon Park Ballfield Improvements
Project Description:
Construct grading, drainage, irrigation and structural improvements to reduce closure time due to
rain and routine maintenance, resulting in additional and expanded hours of field use.
Estimated Park Construction Cost:
Design $169,656
Construction $514,109
Contingency $ 51,411
Total Estimated Cost $735,176
Project Acreage: 0.87 acres
Estimated Cost per Acre: $845,030
EXHIBIT A-2
City of South San Francisco Park Construction Estimate
May 2019
Park Name:
Buri Buri Park
Project Description:
Construct grading, drainage, irrigation and structural improvements to reduce closure time due to
rain and routine maintenance, resulting in additional and expanded hours of field use.
Estimated Park Construction Cost:
Design $ 708,301
Construction $2,146,366
Contingency $ 214,637
Total Estimated Cost $3,069,304
Project Acreage: 1.26 acres
Estimated Cost per Acre: $2,435,955
EXHIBIT A-3
City of South San Francisco Park Construction Estimate
May 2019
Park Name:
Gardiner Park
Project Description:
Expand playground to accommodate and provide activities for additional age groups of children;
replace a basketball court with multi-sport court to increase range of activities and use; construct
sitting and picnic areas to accommodate additional park activities and multi-generational use of
park facilities.
Estimated Park Construction Cost:
Design $ 265,440
Construction $ 804,362
Contingency $ 80,436
Total Estimated Cost $1,150,238
Project Acreage: 0.23 acres
Estimated Cost per Acre: $5,001,030
EXHIBIT A-4
City of South San Francisco Park Construction Estimate
May 2019
Park Name:
Hillside Park
Project Description:
Construct drainage improvements and replace soccer field turf and irrigation; improve path of
travel; and install redesigned lighting to allow concurrent play and significantly higher overall field
use.
Estimated Park Construction Cost:
Design $1,461,124
Construction $4,427,650
Contingency $ 442,765
Total Estimated Cost $6,331,539
Project Acreage: 3.48 acres
Estimated Cost per Acre: $1,819,408
EXHIBIT A-5
City of South San Francisco Park Construction Estimate
May 2019
Park Name:
Orange Memorial Park
Project Description:
Replace existing baseball and softball fields with more durable fields including potential conversion
from natural turf to synthetic turf to accommodate additional hours of programming; add facilities
for soccer programming; install lighting to provide more hours of play; expand seating to
accommodate additional use of facilities; construct new path of travel to increase access and use of
fields.
Estimated Park Construction Cost:
Design $ 3,338,753
Construction $10,117,432
Contingency $ 1,011,743
Total Estimated Cost $14,467,928
Project Acreage: 4.11 acres
Estimated Cost per Acre: $3,520,177
EXHIBIT A-6
City of South San Francisco Park Construction Estimate
May 2019
Park Name: Sellick Park
Project Description:
Replace existing baseball and softball fields with more durable fields including potential conversion
from natural turf to synthetic turf to accommodate additional hours of programming; add facilities
for soccer programming; install lighting to provide more hours of play; expand seating to
accommodate additional use of facilities; construct new path of travel to increase access and use of
fields.
Estimated Park Construction Cost:
Design $ 860,502
Construction $2,607,582
Contingency $ 260,758
Total Estimated Cost $3,728,842
Project Acreage: 1.72 acres
Estimated Cost per Acre: $2,167,932