REPORT TO PARKS & RECREATION COMMISSION
SUBJECT
Title
Review and Make Recommendations to City Council regarding the Land Valuation Appraisal Report Dated December 31, 2024, and the Park Development Costs Proposed to be Used in the Calculation of Parkland In-Lieu Fees for New Residential Development for FY 2025/26
Report
COUNCIL PILLAR
Enhance Community Sports, Recreational and Arts Assets
Enhance Community Engagement and Transparency
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
City Code Chapter 17.35 "Park and Recreational Land" requires new residential developments to provide developed park and recreational land and/or pay a fee in-lieu of developed parkland dedication ("In-Lieu Fees") pursuant to the Quimby Act ("Quimby") and/or the Mitigation Fee Act ("MFA"). This enables the City to maintain its existing level of service at the same rate of 2.6 acres to 3.0 acres of parkland and recreational amenities per 1,000 residents.
Parkland dedication in-lieu fees are reviewed annually and are considered as part of the Municipal Fee Schedule update. There are three primary cost components upon which in-lieu fees are calculated:
(a) the average cost to purchase land for parks in Santa Clara as determined by an annual land valuation appraisal;
(b) the average cost per capita to develop the land into a useable park facility based on the 2019 Parks and Recreation Facility Condition Assessment indexed to the Department of General Services California Construction Cost Index (CCCI); and
(c) the administration cost of the program, including the review of residential development plans for compliance with the ordinance and the tracking of the funds (currently set at 2% of total fees collected).
The methodology for the calculation of the In-Lieu Fees is explained in the Park & Recreation Facilities Development Impact Fee Study (Nexus Study) updated August 27, 2019 (Attachment 1).
The purpose of this report is to:
1) share the find...
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