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HomeMy WebLinkAboutItem 07 - Quimby - Mitigation Fee Act Master Fee Schedule Change Department Name: Community Development Cost Center: 4001 For Agenda of: March 2, 2021 Placement: Consent Estimated Time: N/A FROM: Michael Codron, Community Development Director Prepared By: Nanika Kala, Administrative Analyst SUBJECT: QUIMBY/MITIGATION FEE ACT MASTER FEE SCHEDULE CHANGE RECOMMENDATION Approve a change in fee terminology for the Citywide Parkland and Improvement Development Fees governed by the Subdivision Map Act and Mitigation Fee Act by land use type. DISCUSSION Background The Quimby Act applies to certain new subdivisions in the City and requires the dedication of parkland or payment of an in-lieu fee (“parkland in-lieu fee”) “for the purpose of developing new or rehabilitating existing neighborhood or community park or recreational facilities to serve the subdivision" (Cal. Gov. Code § 66477(a)(3)(A)). In 1994, the City established a parkland in-lieu fee under the Quimby Act that applies to new single-family developments and multifamily condominium developments in the City of San Luis Obispo. In Spring 2018, Council approved the establishment of park development impact fees under the Mitigation Fee Act. These fees are different than the Quimby Act fees that apply specifically to single-family and condominium subdivisions. There are two fee components to the park development impact fees approved in 2018: one for parkland acquisition, and one for construction of park improvements. Single family and multifamily development parcels created through the Subdivision Map Act do not pay the parkland component of the 2018 development impact fees since they are subject to the City’s parkland in-lieu fee under the Quimby Act. However, such developments are required to pay the City’s park improvement development impact fee. The current fee schedule (Attachment 1) has mis-labeled the parkland acquisition component of the Mitigation Fee Act as a Quimby fee when it is not. As a result, staff is requesting the fees be split out by land use type (subdivision and non-subdivision) and the fee names be updated (see Table 1) to avoid confusion in the future. Note that the fee amounts are not changing, just the terminology to provide ease of comprehension and better clarity to the public. Packet Page31 Item #7 Table 1: Proposed Updated Parkland Fees in the FY 20-21 Master Fee Schedule Citywide Parkland and Improvement Development Fees (Outside of Expansion Areas) [1] 2020-21 Quimby Act Parkland In- Lieu Fee Mitigation Fee Act Parkland Impact Fee Mitigation Fee Act Park Improvement Impact Residential Subdivision [2] Single Family (per Dwelling Unit) $3,310.72 n/a $3,025.98 Multifamily Condominium (per Dwelling unit) $2,384.01 n/a $2,179.13 Residential, No Subdivision Single Family (per Dwelling Unit) n/a $3,310.72 $3,025.98 Multifamily Apartment (per Dwelling unit) n/a $1,530.85 $2,179.13 [1] Development in the MASP, OASP, Avila Ranch, or San Luis Ranch areas will meet park and recreation obligations per the terms of applicable Specific Plans and/or Development Agreements. [2] Single family and multifamily development on parcels created through the Subdivision Map Act do not pay the parkland component of development impact fee. Rather, parkland requirements are met through the Parkland in -lieu Fee (Quimby Act). Sources: City of San Luis Obispo, Economic & Planning Systems, Inc. Previous Council or Advisory Body Action In 2018, Council approved the establishment of park development impact fees under the Mitigation Fee Act. Policy Context Subdivisions are required under the Quimby Act, which is within the Subdivision Map Act, to dedicate parkland, or pay a fee in lieu of dedication (“parkland in-lieu fee”) that the local agency can use “for the purpose of developing new or rehabilitating existing neighborhood or community park or recreational facilities to serve the subdivision" unless specific requirements apply. (Cal. Gov. Code § 66477(a)(3)(A).) Fees established under the Mitigation Fee Act collected for improvements to existing parks “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.” (Cal. Gov. Code § 66001(g).) Packet Page32 Item #7 CONCURRENCE The Finance Department and Parks and Recreation Department concur with this recommendation. ENVIRONMENTAL REVIEW If not a project use: The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: N/A Budget Year: 2020-21 Funding Identified: N/A Fiscal Analysis: The recommendation is for an adjustment to the master fee schedule for the purpose of clarity and does not have a fiscal impact because the fee amounts and method of applying the fees are not changing. ALTERNATIVES Council could deny the request to update the Master Fee Schedule, staff does not recommend this action as approving these changes helps clarify to developers and the public which fees apply to which developments. Attachments: a - Parkland Fees as listed in Current FY 20-21 Master Fee Schedule Packet Page33 Item #7 Packet Page34 Item #7