HomeMy WebLinkAbout1987-04-28; City Council; 7777-3; Revision of establighing Park-In-Lieu fees4B#.m
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3EPT. FIN I
TITLE:
REVISION OF ORDINANCES AND PROCEDURES
ESTABLISHING PARK-IN-LIEU FEES lcin MGR.&
RECOMMENDED ACTION:
1. That City Council introduce Ordinance No. .
2. Upon adoption of the proposed Ordinance, adopt Resolution No. $?oq/ ,
realigning the City's park districts to agree with the boundaries
set by Ordinance 9824, the Growth Management Plan.
Upon adoption of the proposed Ordinance, adopt Resolution No. 904'2 ,
appropriating funds for the appraisal of park property.
3.
ITEM EXPLANATION:
To accurately reflect the current standard applied in the formula for
determining park acreage to be dedicated under Section 20.44.040 of the
Carlsbad Municipal Code, the phrase "two and one half acres" in Section
20.44.030 should be replaced with the phrase "three acres". Additionally,
to prevent this issue appearing before Council at a future date, the phrase
"based on 1980 census" in Section 20.44.040 should be replaced with "the
most recent federal census".
The Carlsbad Municipal Code, Section 20.44.080, establishes the amount of
park-in-lieu fees to be collected from developers. The purpose of these
fees is to provide funds for the purchase and improvement of community
park property. It is, therefore, important to insure that the fees being
collected are adequate to provide sufficient funds for the purchase of
park property.
The present Municipal Code includes no procedure for how park-in-lieu fees
are to be established or how often fees should be revised.
Staff is recommending that Council consider adopting the proposed Ordinance
which established the annual revision of park-in-lieu fees based on the value
of benchmark parks in each of the City's four park districts.
will guarantee that park fees will be sufficient to purchase and develop
new or rehabilitate existing park and recreational facilities within each
of the park-in-lieu quadrants.
This method
The process for revision of fees under the proposed Ordinance is as follows:
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The City Council will establish one park in each quadrant to be
considered the benchmark park. This park represents the type of
land desired by the City for park purposes.
The staff will annually retain an MA1 Appraiser to provide a
certified appraisal of the benchmark parks.
A per-acre cost of land for each park would be established using
the annual appraisal.
The Council will adopt this revised per acre cost as the basis for
computing park-in-lieu fees.
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AGENDA BILL NO.77 77-3
This annual revision of park-in-lieu fees will require the expenditure of
approximately $10,000 to $15,000 per year in appraisal fees to establish
the current market value of each benchmark park. This charge should be
divided evenly between the four park districts.
FISCAL IMPACT:
The annual revision of park-in-lieu fees will increase the level of fees
collected by the City dedicated to the acquisition of community park land.
At this time an estimate of the amount of the increase is not available
because new land values and levels of development subject to park-in-lieu
fees has not been determined. An annual cost of approximately $10,000 to
$15,000 per year will be experienced in appraisal fees related to this
program. This cost should be budgeted annually in the Park-in-Lieu Fund.
An appropriation of $12,500 is necessary to pay appraisal costs to establish
values for the benchmark park sites for 1987. This appropriation should be
made from park-in-lieu funds, one quarter from each district. Sufficient
funds are available for this appropriation.
EXHIBITS :
1. Memo from Finance Director - dated 11/2/86, Park-in-Lieu Fees
2. Ordinance No. 9p.3 I .
3. Resolution No. ?QV/ , realigning the park district boundaries.
4. Resolution No. 90qi2 , appropriating funds for the appraisal of
park land.
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November 3, 1986
TO: ASSISTANT CITY MANAGER, RAY PATCHETT
FROM : Finance Director
PARK-IN-LIEU FEES
Recommendation
The City should establish a method of setting park-in-lieu fees based on the
appraised value of benchmark park land in each quadrant as described below.
This method provides a fair and equitable measure of land value based on
the purchase price of land suitable for park development.
Discussion
Park-in-Lieu fees must be revised annually to guarantee that revenues will
continue to provide sufficient funds to purchase park land.
to continue to maintain the park land-to-population ratio set by Council, an
equitable means of setting the new fee each year must be established.
If the City is
City staff has reviewed several alternatives for setting park-in-lieu fees.
These alternatives include:
1. Establishing an average fair market value for land city wide.
2. Establishing an average fair market value for land within each
quadrant.
3. Across-the-board percentage adjustments to present park-in-lieu fee
schedules using a variety of indexes as the basis for the increase.
4. Appraisal of benchmark parks in each quadrant to establish fees.
The attached reports from Parks and Recreation and the Finance Department
discuss these alternatives in detail.
The alternatives described above have been evaluated for equity, ability to
maintain park-in-lieu fees at a level sufficient to provide funds for park
land acquisition and reasonableness.
Alternative 1 -- setting an average fair market price for land for all park
quadrants does not provide equity to the City or the developer paying the
fee. Some developers would be substantially overcharged while others would
be undercharged for park fees based on the actual cost to acquire land in
their quadrant. A City-wide average is also very difficult to set due to
the wide variance of parcel values.
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Alternative 2 -- setting an average fair market value for land within each
of the City's four park districts provides a more equitable measure of the
required fee. However, the establishment of an averaae value for all land
within a quadrant has proven to be very difficult. A recent attempt at
setting these average values provided widely varyinq prices for land without
specifically addressing the cost of land that might be suitable for park
use. In particular, values of land in the northwest quadrant proved to be
two to three times the value of land in other parts of town due to the
extremely high valuation of land in the downtown area.
Alternative 3 -- setting park-in-lieu fees by using an inflation factor or
index, does not provide any defensible support for changes in the fee. No
index has been found that could be applied to the Carlsbad real estate
market to adjust land values. The Finance staff searched many different
sources for such an index without success.
Alternative 4 -- setting the value for a "typical" park in each quadrant has
proven to be the most practical approach to setting park-in-lieu fees. By
identifying existing "benchmark" parks in each part of Carlsbad, the City
has set a standard for park land quality. In addition, the developer in
each quadrant will be paying fees designed to provide adequate park land
equal to that standard. Also, the appraisal of specific pieces of park
property can be done by any certified appraiser, while the development of
average land values in a quadrant cannot be accurately set by any means
available to the City. The necessary park-in-lieu fee can be found by usinq
the following formula based on 3.00 acres of land per 1000 population.
(Values are in Dollars)
Estimated
Type of Dwelling Quadrant Current Fee Revised fee* Change
Single family 1 786
detached and duplex 2 786
3 786
4 983
2,880 2,094
900 114
900 114
1,440 457
Attached single
family
1 6 56 2,400 1,744
2 6 56 7 50 94
3 656 7 50 94
4 8 20 1,200 380
Attached multiple 1 5 24
family 2 524
3 5 24
4 655
Mobile homes 1 458 2 458
3 458
4 573
1,920 1,396
600 76
600 76
960 305
1,680 1,222
525 67
525 67
840 2 67
* The estimated fee is based on the staff's estimates of property values of the
benchmark parks. These values will change when appraised values become
available.
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Staff recommends that the City adopt the following procedures in setting park-
in-lieu fees:
1. The Parks & Recreation Director shall establish one park owned by the
City in each park-in-lieu quadrant to be designated as the benchmark
park for that area.
The Parks Director has indicated that the followinq parks would be
selected as benchmark parks:
Estimated Value*
of Land per Acre
A. Northwest Quadrant - Chase Field $320,000
B. Northeast Quadrant - Calavera Hills Park 100,000
C. Southwest Quadrant - Altamira Park 100,000
D. Southeast Quadrant - Stagecoach Park 1 60,000
* These values will be established by formal appraisal of these
properties. The est imated values are presented for illustrative
purposes only.
2. The Finance Director shall retain an MA1 Certified Appraiser to
establish the fair market value per acre for each of the four benchmark
parks.
3. The Appraiser shall determine the value of land for each of the City's
benchmark parks. Based on the following instructions:
a. That the subject parks shall be appraised on the basis of finished
condition with all rough gradina completed, all utilities to the site and at street qrade.
b. That the valuation estimate shall be based upon the use of adjacent
property (ie - if adjacent property is residential, the appraisal
shall be based upon residential use.
4. The Finance Director shall submit revised land values to the City
Council for approval.
5. Park land values shall be revised annually on or before January I, each
year.
If this method meets with your approval, we will draft the appropriate aaenda
bill and amendment to the City Code.
JIM ELLIOTT
Finance Director
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herl
ORDINANCE NO. 9831
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, AMENDING TITLE 20, CHAPTER
20.44 OF THE CARLSBAD MUNICIPAL CODE BY THE
AMENDMENT OF SECTIONS 20.44.030, 20.44.040 AND
20.44.080 TO REVISE THE METHOD OF ESTABLISHING
THE AMOUNT OF PARK FEES COLLECTED IN LIEU OF
LAND DEDICATION.
The City Council of the City of Carlsbad, California,
by ordains as follows:
SECTION 1: That Title 20, Chapter 20.44 of the Carlsbad
Municipal Code is amended by the revision of Section 20.44.030,
20.44.040 and 20.44.080 to read as follows:
20.44.030 General standard. It is found and determin-d
that the public interest, convenience, health, welfare and
safety require that three acres of property for each one
thousand persons residing within this city shall be devoted
to local park and recreational purposes.
20.44.040 Standards and formula for dediction of land. If the City Council determines that a park or recreational facility is to be located in whole or in part within the proposed subdivision to serve the immediate and future needs of the residents of the subdivision, the subdivider shall, at the time of the filing of the final or parcel map, dedicate
land for such facility pursuant to the following standards and formula:
The formula for determining acreage to be dedicated shall
be as follows:
Average No. of Persons 3 park acres per Total
per dwelling unit (based 1000 population dwelling
on most recent Federal units census)
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The following table of population density is to be followed:
Park Land Dedication Formula Table
Types of Dwellings
Average
Density/DU
Single-family Detached and Duplex (0 lot line
or attached wall) 3.0
Attached Single-family
(4 units or less
attached) 2.5
Attached Multiple-
family (more than 4
units) 2.0
Acreage/DU
3 Acres Std. (in square feet)
393
328
262
Mobile Homes 1.75 229
The total number of dwelling units shall be the number
permitted by the city on the property in the subdivision at
the time the final-map or parcel map is filed for approval;
provided, however, that except for subdivisions which consist
of the conversion of existing buildings or mobile home parks
into condominiums or other planned developments, any existing
residential unit or units, whether or not the unit or units will be replaced, shall be subtracted from the total.
20.44.080 Amount of fee in lieu of land dedication. (a) Where a -fee is required to be paid in lieu of land
dedication, the amount of such fee shall be paid upon the
fair market value of the amount of land which would otherwise
be required to be dedicated pursuant to Section 20.44.040.
The fair market value shall be determined by the city council
using the following method: (1) The city council shall designate one park in each of the city's park districts to be considered a benchmark park. This park shall represent the type of property desired by council for park development.
(2) The Parks & Recreation Director will annually have an appraisal of these benchmark parks done by an MA1 Appraiser to establish the value of the underlying land. (3) The council shall adopt a resolution establishing the
value of one acre of park land in each quadrant based
on the results of this appraisal.
(b) The city council may establish park areas and the
appraisal value of land within each such park area by
resolution. This appraisal value shall be adjusted annually
by the city to reflect any changes in property value within
the park areas as described above.
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(c) If the subdivider objects to such valuation, he may,
at his expense, obtain an appraisal of the appropriate
benchmark parks by a qualified real estate appraiser approved
by the city, which appraisal may be accepted by the city
council if found to be reasonable. If accepted, the fee
shall be based on that appraisal instead of the city's
appraisal.
EFFECTIVE DATE: This ordinance shall be effective
Lhirty days after its adoption and the City Clerk shall certify
:o the adoption of this ordinance and cause it to be published
mce in the Carlsbad Journal within fifteen days of its adoption.
INTRODUCED AND FIRST READ at a regular meeting of the City
Zouncil held the 28th day of April , 19 87 , and
:hereafter,
PASSED AND ADOPTED at a regular meeting of the City Council
leld the 5th day of May , 19 87 , by the following
rote, to wit:
AYES: Council Members Lewis, Kulchin, Pettine, Mamaux and Larson
NOES: None
ITTEST :
t.4.P- GETHA L. RAUTENKmNZ, City Cle
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A RES0
RESOLUTION NO. 9041
UTION OF THE CITY COUNCIL OF THE CITY OF C RLSBAD ,
CALIFORNIA, REVISING THE PARK AREA BOUNDARIES ESTABLISHED
BY RESOLUTION 6768 TO AGREE WITH THE PARK QUADRANT
BOUNDARIES SET BY THE GROWTH MANAGEMENT PROGRAM.
WHEREAS, the City of Carlsbad, in Chapter 20.44 of the Municipal Code,
has established certain requirements for dedication of land, payment of fees,
or both, for the recreational facilities; and
WHEREAS, the City of Carlsbad has further establsihed by resolution,
four park districts as shown in Exhibit A, attached hereto, and
WHEREAS, the City has adopted the City's Growth Management Program,
Ordinance 9824, establishing four park areas, shown in Exhibit By attached
hereto, to be used for determining compliance with City-wide facility
standards , and
NOW, THERFORE, BE IT RESOLVED by the City Council of the City of
Carlsbad, California, as follows:
1. That the City's park area boundaries shall be adjusted to agree
with the growth management park quadrant boundaries shown on Exhibit B.
2. That the Finance Director shall distribute funds now held by
Park District as follows: I
All funds held for Park District 1 shall be transferred to the new
Northwest District.
All funds held for Park District 2 shall be transferred to the new
Northeast District.
All funds held for Park District 3 shall be transferred to the new
Southwest District.
All funds held for Park District 4 shall be transferred to the new
Southeast District.
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3. Any fees collected in the area designated as the "Transfer Zone"
on Exhibit A shall be transferred from Area 3 (Southwest) to Area l(Northwest).
PASSED, APPROVED AND ADOPTED at a regular meeting of the City
Council of the City of Carlsbad, California, held on the 28th day of
April , 1987, by the following vote, to wit:
AYES: Council Members Lewis, Kulchin, Pettine, Mamaux and Larson
NOES : None
ABSENT: None
ATTEST:
/&A. dRaL ALETHA L. RAUTENKRANZ, City Clerk
(SEAL)
CAL AVER A
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I CITY OF CARLSAD
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A FUTURE
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PARKS
SEPTEMBER 18, IS86
City of Carisbad
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RESOLUTION NO. 90 42
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROPRIATING FUNDS FOR THE APPRAISAL OF
PARK PROPERTY.
WHEREAS, the City has determined that park fees paid under Section
20.44.080 of the Carlsbad Municipal Code should be based on current values
for park land in each of the City's four park districts, and
WHEREAS, to establish such values the City must arrange for an
appraisal of one park in each area which will serve as the benchmark for
park fee payments, and
WHEREAS, the cost of said appraisal is a valid charge against the
park development fees collected by the City,
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Carlsbad that a total of $12,500 is hereby appropriated, one quarter from
each of the four park development funds, for the hiring of an appraiser
to appraise the four benchmark parks.
PASSED, APPROVED AN13 ADOPTED at a regular meeting of the City Council
of the City of Carlsbad, California, held on the 28th day of April Y
1987, by the following vote, to wit:
AYES: Council Members Lewis, Kulchin, Pettine, Hamaux and Larson
NOES: None
ABSENT: None
ATTEST :
ALETHA L. RAUTBNKRANZ, City Clerk j