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HomeMy WebLinkAbout12-12-2017 Item 08 - Approve corrections to the Orcutt Area Specific Plan park fees Meeting Date: 12/12/2017 FROM: Michael Codron, Community Development Director Prepared By: David Watson, Contract Planner Diane Dostalek, Senior Civil Engineer SUBJECT: APPROVE CORRECTIONS TO THE ORCUTT AREA SPECIFIC PLAN PARK FEES RECOMMENDATION Adopt a resolution (Attachment C) approving corrections to the Orcutt Area Specific Plan (OASP) park fees. DISCUSSION Background During the adoption of the 2010 Orcutt Area Specific Plan (OASP), a public infrastructure fee program was included to provide for the collection of fees from individual development projects to collectively contribute to a variety of roadway, utility, bicycle and park improvement projects to serve the developing neighborhood. This fee program is referred to as the Public Facilities Financing Plan (PFFP). The park fee component of the PFFP was created to fund the acquisition and development of 16.5 acres of public parklands in four planned public parks to serve the future residents of the OASP. The following list summarizes the parks and recreation projects planned to serve the Project: • Central Neighborhood Park - 12.6 Acres • Pocket Park - 0.5 Acres • Linear Park System - 1.2 Acres • Trail Junction Park – 2.2 Acres A majority of this park acreage is located on what has been referred to as the Righetti Ranch development project (Tract 3063 – Ambient Communities). The adopted OASP recognizes that it would be inequitable to exclusively set aside acreage on Righetti Ranch to serve the entire planning area, and therefore establishes under the PFFP a mechanism to collect fees from other OASP owners to contribute to the land being set aside and acquired on the Righetti site, in -lieu of the other owners putting isolated public parks on each of their individual sites. The City’s current fee structure for the OASP combines the park improvement fee and the parkland acquisition in-lieu fee into a single fee. The 2017/18 fiscal year fee rate is $13,365 for each single-family dwelling unit and $9,834 for each multi-family dwelling unit. The OASP Park fees are due upon building permit issuance. To date, no OASP Park fees have been collected from any developments because no building permits have been issued on the affected properties. The proposed corrections to the OASP park fees not only correct a mathematical error in the calculation of the parkland acquisition in-lieu fee, but also separate out the park improvement fee Packet Pg 127 8 from the parkland acquisition in-lieu fee to accurately track credits due to the Righetti Ranch developers and identify available funding for park construction (park improvement fees). Proposed Corrections to the OASP Park Fees Two (2) corrections to the OASP Park Fees are proposed: 1. Correct and update the in-lieu fees due from non-Righetti developers that are contributing to the lands being set aside on the Righetti Ranch site, under a formula that identifies each property’s parkland acreage needed to support their planned resident populations, and 2. Separate the in-lieu parkland acquisition fee from the park improvement fee to properly track these fees and their use separately. In accordance with the Quimby Act (California Government Code Section 66477) and Section 16.22 of the City’s Municipal Code, a parkland need shall be calculated for each property based on projected populations of each project. Those developments which are not contributing parkland or are not contributing enough parkland, will be required to contribute an “in-lieu” fee representing their fair share of parkland acquisition needs. The fee will be collected from each owner as they develop their properties and be used to reimburse Righetti for their excess land dedications. The in-lieu fee, also referred to as the “Parklands Acquisition Fee”, was designed to reimburse Righetti Ranch for the areas of public parks they have set aside beyond their project’s requirements. The total land value of the OASP parklands was set in 2009 at approximately $6.6 million. Righetti’s required share of parkland dedication is valued at $3.1 million, for which they are not being reimbursed. Righetti is contributing an additional $3.54 million in land for park development to satisfy non-Righetti developer needs, which will be eligible for reimbursement through in-lieu fees paid by those other developers. Table 9 from the November 15, 2016, City Council Update of the PFFP (Attachment A), identifies the property owners required to contribute to the in-lieu fee. There was a mathematical error in Table 9 from 2016 where the in-lieu fee was calculated using gross property acreage rather than projected resident populations. Revised Table 9 (Attachment B) corrects the calculation of the required public parklands needed from each project, and then extrapolates that acreage requirement into an in-lieu fee. The proposed changes to Table 9 are highlighted in red on Attachment B. The Garay property, which is located within the OASP boundaries, can be self-contained with respect to the provision of parkland dedication, and is therefore excluded from the area-wide fee calculations for parkland acquisition in Table 9. Packet Pg 128 8 The 2010 OASP and PFFP established an in-lieu fee base rate for reimbursement purposes of $300,000/acre of public parklands. This base rate reflects the amount to be paid by each owner in proportion to the number of acres they need to serve their resident population. For example, for every 1,000 residents in a project, 10 acres of public parklands is required. The $300,000/acre was a rate negotiated with the Righetti landowners at that time and is not subject to escalation. In the case of the PFFP, one additional nuance was added to the parklands acquisition in-lieu fee calculation that differentiates the per-acre rate of contributions from a smaller sub-set of OASP owners. In the case of the Jones and Pratt properties, these sites were planned to co nvey their total storm water runoff discharges to the drainage basin designed into Righetti, paralleling the railroad tracks. In this manner, Righetti is providing both storm water capacity as well as parklands to serve the Jones and Pratt needs. For this, the rate of contribution per required acre of parklands is increased to $400,000 for the Jones and Pratt properties. This increase in land value for those properties receiving the added benefit of off-site storm water capacity rather than providing on-site stormwater basins was conceived and approved with the establishment of the PFFP and is not proposed for change with these revisions Revised Table 9 (Attachment B) provides more detail as to the factors contributing to the final calculations. The projected population for each property is included, which translates directly into the in-lieu acreage required from each project. Using the $300,000 or $400,000 base valuations and the required acreages described above, those numbers are then divided into th e total in-lieu fees to arrive at a specific in-lieu fee charge per property. Revised Table 9 also allocates these in-lieu fees between the single-family residential (SFR) and multi-family residential (MFR) units planned for each property. Because the anticipated average population from a SFR (2.46 persons) varies from an MFR unit (1.83 persons), the in -lieu fee by unit type is differentiated to properly reflect each unit’s fair share of the total parklands acquisition program. Table 1, below, provides a side-by-side comparison of the existing fees and the corrected fees due from each property, broken down by SFR or MFR unit type. Packet Pg 129 8 Table 1 Parkland In-Lieu Fee 2017/18 Fiscal Year Fee Rates The proposed OASP park fee correction also includes separating out the Parklands Acquisition In-Lieu Fee and the Park Improvement Fee. The 2016 total cost of park improvements, excluding land acquisition, for the four parks is estimated to be just over $6.0 million. This cost was allocated to the residential land uses based on the number of residents served. The 2017/18 fiscal year rate for this equates to $6,717 per single family residential unit and $4,997 for multi -family residential unit. As noted in the OASP, the Righetti Ranch developers are not required to construct the park, only dedicate the land. Therefore, they will not receive credit for the portion of the Park Fee that is allocated to Park Improvement. By separating out the Park Improvement fee from the Parkland Acquisition Fee, staff will be able to better track available funds for constructing the parks. Below is a table showing a comparison of the total existing OASP park fees for the 2017/18 fiscal year, and what the corrected fees would be if Council approves them. Property Existing Parklands Acquisition In-Lieu Fee Existing Per SFR Fee Existing Per MFR Fee Corrected Parklands Acquisition In-Lieu Fee Corrected SFR Fee Corrected MFR Fee Pratt 1 - 024 $212,381 $0 $3,861 $307,132 $0 $5,866 Pratt 2 – 007 $316,640 $0 $3,861 $457,905 $0 $5,866 Taylor-Muick $578,255 $4,604 $3,425 $707,181 $5,914 $4,400 West Creek $888,620 $6,124 $4,555 $816,966 $5,914 $4,400 Anderson $258,236 $0 $3,354 $322,488 $0 $4,400 Evans $271,268 $0 $3,391 $335,053 $0 $4,400 Farrior $36,684 $0 $4,585 $33,505 $0 $4,400 Fiala $45,855 $11,464 $0 $22,520 $5,914 $0 Hall $54,543 $0 $4,958 $46,070 $0 $4,400 Imel $316,158 $18,598 $0 $95,710 $5,914 $0 Jones $561,361 $10,655 $7,927 $395,472 $7,885 $5,866 Totals $3,540,000 $3,540,000 Packet Pg 130 8 Table 2 OASP Park Fee 2017/18 Fiscal Year Fee Rates Existing Corrected OASP Park Fee OASP Parklands Acquisition In-Lieu Fee OASP Park Improvement Fee Total OASP Park Fee Single-Family Unit $13,365 See Table 1 above $6,717 Varies $12,631 to $14,602 Multi-Family Unit $9,834 See Table 1 above $4,997 Varies $9,397 to $10,863 Public Outreach Discussion with affected OASP property owners began earlier this year, when the mathematical error was initially identified. Each of the active development projects participated in meetings with staff to review a corrected Table 9 calculation. This interaction occurred over the first six months of this year. More recently, conversations with the Ambient, West Creek and Mangano development interests have included review of the updated Table and the cost implications that has for their individual projects. Early in September, staff contacted all the affected property owners either by email or letter notifying them of the proposed correction. Follow-up emails or letters were also sent in mid-November to inform the affected property owners of the date of the Council meeting. As of the preparation of this Report, no follow-up questions or concerns have been raised by any of the affected OASP owners. CONCURRENCES The Parks and Recreation Department concurs with the recommended action. ENVIRONMENTAL REVIEW The Orcutt Area Specific Plan (OASP) and an associated Final Environmental Impact Report (FEIR) were approved and certified in March 2010. Implementation of the Public Facilities Financing Plan (PFFP), including actions such as the proposed 2016 PFFP Update, were anticipated as mitigation measures to secure needed infrastructure in supporting orderly growth in the OASP Planning Area. In this case, the corrections to Table 9 are consistent with t hese earlier CEQA determinations and is statutorily exempt pursuant to Section 15273 of the CEQA Guidelines. Therefore, no further environmental review is required. Packet Pg 131 8 FISCAL IMPACT There is no financial impact to the City associated with revising these fees because the project is a correction of a previously approved fee. Acquisition and development of the OASP parks will be funded through fees collected from developers within the Orcutt Area, as outlined in the Orcutt Area Specific Plan. ALTERNATIVES Continue the Proposed Correction to the OASP Park Fees Pending Additional Information Required. Council may elect to continue this item to provide additional clarifications or information needed to render a decision. Should Council elect this alternative, direction should be provided to staff as to the additional information needed. Deny Approval of the Proposed Correction to OASP Park Fees. Council may elect not to approve the corrections if findings are made that the proposed corrections are inconsistent with San Luis Obispo’s Municipal Code, State Law, or the OASP. Denial is not recommended unless required findings are made. Attachments: a - Table 9 from 11-15-16 Council Report b - Revised Table 9 c - Draft Resolution Approving Revisions Packet Pg 132 8 - Existing as of November 2016Packet Pg 1338 Table 9 City of San Luis Obispo Orcutt Area Specific Plan Public Facilities Financing Plan Parkland Acquisition In-Lieu Fee (1) Baseline In-lieu 2010 Share of In-Lieu Fee In-Lieu Fee Property Owner Property Owner Property Projected Acreage Land Value In-lieu Fee Total Per Single-Per Multi- (2010 reference)(2016 reference)Acreage Population (2)Required (3)Per Acre (4)Value (5)In-Lieu Fee (6)Family Unit Family Unit Pratt (1 - 024)Pratt (1 - 024)5.41 101 1.01 400,000$ 9.11%322,631$ $5,866 Pratt (2 - 007)Pratt (2 - 007)5.55 150 1.50 400,000$ 13.59%481,014$ $5,866 Muick Taylor-Muick 11.98 235 2.35 300,000$ 15.94%564,220$ $5,914 $4,400 Midstate Robbins Reed - West Creek 11.75 165 1.65 300,000$ 11.19%396,245$ $5,914 Maddalena Robbins Reed - West Creek 6.66 192 1.92 300,000$ 13.05%461,949$ $4,400 Anderson Anderson 5.35 141 1.41 300,000$ 9.57%338,763$ $4,400 Evans Evans 5.62 146 1.46 300,000$ 9.94%351,961$ $4,400 Farrior Farrior 0.76 15 0.15 300,000$ 0.99%35,196$ $4,400 Fiala Fiala 0.95 10 0.10 300,000$ 0.67%23,656$ $5,914 Hall Hall 1.13 20 0.20 300,000$ 1.37%48,395$ $4,400 Imel Ambient Communities-Righetti Ranch 6.55 42 0.42 300,000$ 2.84%100,540$ $5,914 Jones Ambient Communities-Jones Ranch 11.63 130 1.30 400,000$ 11.74%415,430$ $7,885 $5,866 73.34 1346 13.46 100.00%3,540,000$ (1) Refer to Appendix B in the report for supporting documentation (2) 2.46 persons per Single-Family Residence; 1.83 persons per Multi-Family Residence; Totals Rounded (3) Derivation of acreage based on units and population provided; Generally 1 acre of parks required/100 residents; Refer to 2009 PFFP Appendix B for supporting documentation (4) Allocated contributions for land values per acre are higher for Pratt and Jones as they benefit from storm drainage capacity included with Righetti Ranch basin (5) The 2010 values calculate to a total of $4,630,370. In 2016 the City Council update to the PFFP included setting the total in-lieu fee due Righetti Ranch at $3,540,000. The "Baseline Share" is arrived at by dividing each property's 2010 land value for their required acres by the $4,630,370 calculated value. (6) Total In-lieu Fee due by propertty is set by multiplying the Baseline % against the $3,540,000 value set in 2016. Source: City of San Luis Obispo; Orcutt Area Specific Plan Table A-2 (Final, May 2010); Goodwin Consulting group, Inc. Updated: City of San Luis Obispo; Watson Planning Consultants, Inc. August 24, 2017 PFFP Table 9 revisited 08-24-2017 - 8-24-2017 Current as of: 8/24/2017Packet Pg 134 8 R _____ RESOLUTION NO. (2017 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING CORRECTIONS TO THE ORCUTT AREA SPECIFIC PLAN PARK FEES WHEREAS, in 2010 the City Council adopted the Orcutt Area Specific Plan (OASP) that included a Public Facilities Financing Plan (PFFP) that established a program for providing public parks within the OASP Planning Area; and WHEREAS, the OASP and PFFP established a program of centralizing public parks on the property known as the Righetti Ranch site, for the use and benefit the entire plan area; and WHEREAS, by centralizing parks on one property, the OASP established a program of requiring other owners within the OASP to contribute “in-lieu” fees to cover a fair share contribution to Parklands Acquisition on the Righetti site; and WHEREAS, the 2010 OASP and PFFP set fees for each property within the plan area, and called for the periodic update of those fees; and WHEREAS, in 2016, the City Council updated the PFFP, and following that action an error in the formula for calculating Parklands Acquisition In-Lieu Fees was discovered that did not equitably spread the full cost of in-lieu fee reimbursements over all benefitting OASP properties; and WHEREAS, corrections to the Parklands Acquisition In-Lieu Fee formula to properly allocate those fair share contributions to each benefitting property is appropriate and timely; and WHEREAS, the existing fee structure for the OASP combines both the Parklands Acquisition In -Lieu Fee and the Park Improvement Fee into a single fee, which inhibits the ability to accurately manage fee credits due developers when they dedicate parkland and/or build park improvements within their respective subdivisions. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Continued Findings. The corrections to the Orcutt Area Specific Plan (OASP) Parklands Fees are based on the City Council making the following continued findings: (A) The purpose for the OASP Parklands Fees are to establish an equitable method of sharing the costs of (i) acquiring lands for public parks within the OASP, and (ii) providing a mechanism for improvement of those public parks in a manner consistent with the City General Plan, Parks and Recreation Element and the OASP detailed planning policies for the Plan Area. Because there are multiple ownerships within the OASP, locating public parklands in the appropriate locations did not necessarily follow discrete property ownerships, instead placing the burden for providing public parks in areas that were disproportionate to land ownership patterns. Effectively, one property owner (Righetti Ranch) was burdened with providing nearly all the public parklands for the entire Packet Pg 135 8 Resolution No. (2017 Series) Page 2 R _____ OASP. To reconcile the inequity of locating public parks largely on a single site, a program for collecting a fair share of the costs of those lands spread across all OASP owners became the “Parklands Acquisition In-Lieu Fee” due for any and all developing properties within the OASP. Addressing an equitable method for improving these public parks, a fee for the construction of the public parks was codified as the “Parkland Improvement Fee”. (B) The use of the fees is twofold. The “Acquisition Fee” was established to compensate the owners of the Righetti site for public park lands they set aside above and beyond their project’s fair share demands, to provide those additional lands for use by other owners within the OASP area, and to alleviate the land area dedications for parks otherwise required on individual sites, freeing up those areas for residential and/or commercial development in furtherance of the goals of the OASP. The “Improvement Fee” is collected from all developing properties and used by the City to fund the construction of the project improvements. (C) There is a continued need for the improvements and there is a reasonable relationship between the fee and the demand for public parks created by new residential development and the provision of those lands and improvements within the OASP area based on established City policy. Specifically, the OASP establishes 16.5 acres of public parks that are subject to this Fee program, and anticipates another ~4 acres of public park space located within the OASP area. The “Acquisition” and “Improvement” Fees referenced herein and under the OASP are directed at completing the 16.5 acres called for as public parks in the Plan Area. (D) The sources and amounts of funding anticipated to complete the financing of the improvements have been identified and will be deposited into the appropriate account upon receipt and used to fund such improvements. SECTION 2. The modifications to Table 9 of the Public Facilities Financing Plan and Orcutt Area Specific Plan as set forth in Exhibit “A” attached hereto and incorporated herein, are hereby approved. SECTION 3. The Community Development Director is authorized to administer and implement these fees as provided therein. SECTION 4. The Mayor and City staff are authorized to take action necessary to carry out the intent of this resolution. SECTION 5. Environmental Review. The Orcutt Area Specific Plan (OASP) and an associated Final Environmental Impact Report (FEIR) were approved and certified in March 2010. Implementation of the Public Facilities Financing Plan (PFFP), including actions such as the 2016 Update of the PFFP, were anticipated as mitigation measures to secure needed infrastructure in supporting orderly growth in the OASP Planning Area. In this case the corrections to Table 9 are consistent with these earlier CEQA determinations and is statutorily exempt pursuant to Section 15273 of the CEQA Guidelines. Therefore, no further environmental review is required. Packet Pg 136 8 Resolution No. (2017 Series) Page 3 R _____ Upon motion of _______________________, seconded by ________________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this ______ day of _______________ 2017. ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Carrie Gallagher City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this ______ day of ______________, _________. ____________________________________ Carrie Gallagher City Clerk Packet Pg 137 8 Resolution No. (2017 Series) Page 4 R _____ EXHIBIT 1 Packet Pg 1388