REPORT TO COUNCIL
SUBJECT
Title
Action on a Resolution Establishing the Average Per-Acre Land Values and Parkland In Lieu Fee Schedule for New Residential Development FY2019/20
Report
EXECUTIVE SUMMARY
On May 8, 2018, prior to adoption of updated fees for FY2018/19, Council directed staff to conduct additional outreach, discussion and review of the Quimby Act (Quimby) and Mitigation Fee Act (MFA) fees and to consider the concerns expressed by residential developers regarding the proposed fee increase. The City held meetings with the community and residential development stakeholders on June 11 and 27, 2018. Following the meetings, staff reviewed the land appraisal with its appraiser, analyzed the concerns related to the park inventory and park construction costs, and contracted with Willdan Financial Services, Inc. to complete an update of the Parks and Recreation Facilities Development Impact Fee Study.
The Parks and Recreation Facilities Development Impact Fee Update Study dated April 9, 2019 (Attachment 1) provides a justification for fees in lieu of Parkland Dedication. The calculations justify fees between 35%-46% higher than the existing 2017 fees for Quimby, and between 41% and 52% higher for MFA. The justification for the higher fee is primarily due to:
a) The adjustment made for park construction costs increasing from the 2014 value of $319,000 per acre to $1.335 million per acre in 2018, and
b) The higher land valuation given in the 12-31-2017 appraisal report (Attachment 2).
An administrative draft of the Nexus Study and related information was posted on the City website in early January 2019. Stakeholders and community members were sent invitations via email and eNotify regarding the public input period (January 14-February 26, 2019), and meetings with City staff scheduled on January 22 and February 26, 2019. Twenty-seven pages of public comment, questions and answers related to fees due in lieu of parkland dedication were posted on the ...
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