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HomeMy WebLinkAbout4.10 Introduction of an Ordinance Amending Chapter 9.28 (Dedication of Lands for Park and Recreation Purposes) of the Dublin Municipal CodeAgenda Item 4.10 STAFF REPORT CITY COUNCIL DUBLIN CALIFORNIA DATE: June 20, 2023 TO: Honorable Mayor and City Councilmembers FROM: Linda Smith, City Manager SU B.ECT: Introduction of an Ordinance Amending Chapter 9.28 (Dedication of Lands for Park and Recreation Purposes) of the Dublin Municipal Code Prepared by: Colleen Tribby, Assistant City Manager EXECUTIVE SUMMARY: The City Council will consider introducing an Ordinance amending the Dublin Municipal Code to reflect new parkland dedication categories and updated census numbers concerning the number of persons per dwelling unit. STAFF RECOMMENDATION: Waive the reading and INTRODUCE the Ordinance Amending Chapter 9.28 (Dedication of Lands for Park and Recreation Purposes) of the Dublin Municipal Code. FINANCIAL IMPACT: None. DESCRIPTION: At the May 2 meeting, the City Council received an overview of the City's Public Facilities Fee (PFF) update currently underway. The PFF funds the construction of certain public facilities needed to mitigate the impacts caused by future development. The update to the PFF will adjust impact fee rates using the most recent census data, land values, and construction costs. The May 2 Staff Report is provided as Attachment 2. Page 1 of 3 333 During the meeting, Staff discussed issues surrounding incorporating the new data into the PFF and meeting park acreage requirements as currently reflected Dublin Municipal Code (DMC) Chapter 9.28.040. In summary, because of the new population data from the US Census and the Housing Element, the City will have a deficit of parkland of close to 50 acres (a significant increase from the 2017 report's deficit of 21 acres), the majority of which is in the active community parkland category. Because there is virtually no land left for active community parks in Dublin, the City will be unable to meet this objective. To remedy this, Staff proposed shifting the acreage requirement from Community Parkland to Nature Community Parkland, so that the remaining deficit can be solved with the addition of nature parks. This would require an amendment to the DMC to reflect a decrease in Community Parkland acreage by 0.6 acre, and a corresponding increase in Nature Community Parkland, as shown in the table below and as reflected in the proposed Ordinance (Attachment 1). The City Council agreed with Staff s approach. Table 1. Park Acreage Breakdown, Existing vs. Proposed Required Acres per 1,000 People: Parkland Category Existing Proposed Neighborhood Parkland 1.7 1.7 Community Parkland 3.0 2.4 Nature Community Parkland 0.3 0.9 In addition, Staff has further amended DMC Chapter 9.28.040 to incorporate data from the 2020 Census related to the number of people assigned to dwelling units in the City and has consolidated them into an average number for all types of units, versus distinguishing single-family and multi -family categories. All dwelling units are now assigned 2.70 people (formerly 3.08 for single-family and 1.88 for multi- family). The update to the PFF will be brought to the City Council at a future meeting date, along with the second reading of the Ordinance amending the DMC. STRATEGIC PLAN INITIATIVE: None. NOTICING REQUIREMENTS/PUBLIC OUTREACH: The City Council Agenda was posted. Page 2 of 3 334 ATTACHMENTS: 1) Ordinance Amending Chapter 9.28 (Dedication of Lands for Park and Recreation Purposes) of the Dublin Municipal Code 2) Staff Report of May 2, 2023 Page 3 of 3 335 Attachment I ORDINANCE NO. XX — 23 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DUBLIN AMENDING CHAPTER 9.28 (DEDICATION OF LANDS FOR PARK AND RECREATION PURPOSES) OF THE DUBLIN MUNICIPAL CODE WHEREAS, in order to implement the goals and objectives of the City of Dublin's ("City") general plan, the City's various Specific Plans, including but not limited to the Eastern Dublin Specific Plan, Downtown Dublin Specific Plan, Dublin Crossing Specific Plan, etc., and the Parks and Recreation Master Plan, and to mitigate the impacts caused by future development in the City, certain public facilities must be constructed; and WHEREAS, the City Council has determined that a public facilities fee is needed to finance these public facilities and to pay for each development's fair share of the construction and acquisition costs of these improvements; and WHEREAS, Dublin Municipal Code (DMC) Section 9.28 requires that each subdivider of the land classified by the Zoning Ordinance for residential use shall dedicate or reserve lands, pay fees in lieu thereof, or a combination of both, for neighborhood and community park or recreational purposes; and WHEREAS, following review of the DMC, it was determined that the amendments contained in this Ordinance were appropriate. NOW, THEREFORE, The City Council of the City of Dublin does ordain as follows: Section 1. Chapter 9.28.040 is amended to read as follows (additions shown in italics and deletions shown in strikethrough): It is found and determined that the public interest, convenience, health, safety and welfare require that five (5) acres of property for each one thousand (1,000) persons residing within the city be devoted to local park and recreational purposes. The amount of land to be dedicated, or fees to be paid, shall bear a reasonable relationship to the use of the park and recreation facilities by the future inhabitants of the subdivision. The amount of land to be dedicated shall be the amount calculated from the following formula: LAND =AxB A. "A" means the park and recreation area required per dwelling unit, based on the type of dwelling units of the proposed subdivision and the park area per one thousand (1,000) people of the city. 1. The park area of the city is determined to be five (5) acres per one thousand (1,000) people, or five -one -thousandths (0.005) acre per person, which is further broken down to hree {3) two and four tenths (2.4) acres per one thousand (1,000) people for active community parks, three tenths (0.3) nine tenths (0.9) acre per one thousand (1,000) people for natural Ord. No. XX-23, Item X.X, Adopted XX/XX/23 Page 1 of 3 336 Attachment I community parks, and one and seven -tenths (1.7) acres per one thousand (1,000) people for neighborhood parks. 2. The park and recreation area required per dwelling unit, "A," is established as follows: Each residential dwelling unit is assigned two and seven tenths (2.7) people. Each single family dwelling unit io aooigned three and eight one hundredths (3.08) people. b. Each othor multifamily dwelling unit io aooigned one and eighty eight one hundredths (1.88) people. o. Each senior housing dwelling unit io✓.gned one and twelve one hundredths (1.12) people. B. "B" means the number of dwelling units in the proposed subdivision. For the purpose of this section, the number of dwelling units in the proposed subdivision shall be determined as follows: For single-family and townhome subdivisions, the number of dwelling units shall equal the number of lots or parcels created for residential use as indicated on the final map or parcel map. When the subdivision is for other multifamily or senior housing, the number of dwelling units shall equal the maximum number of residential units allowed within the proposed subdivision. For residential condominium projects, the number of dwelling units shall equal the number of condominium units indicated on the final map or parcel map. For planned development projects, the number of dwelling units shall equal the number of dwelling units indicated on the approved planned development plan. Section 2. Severability. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this Ordinance, or its application to any other person or circumstance. The City Council of the City of Dublin hereby declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable. Section 3. Effective Date. This Ordinance shall take effect and be enforced 60 days after its final adoption. Section 4. Posting. The City Clerk of the City of Dublin shall cause this Ordinance to be posted in at least three public places in the City of Dublin in accordance with Section 36933 of the Government Code of the State of California. {Signatures on the following page} Ord. No. XX-23, Item X.X, Adopted XX/XX/23 Page 2 of 3 337 Attachment I PASSED, APPROVED AND ADOPTED this th day of 2023, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk Ord. No. XX-23, Item X.X, Adopted XX/XX/23 Page 3 of 3 338 Attachment 2 11, DUBLIN CALIFORNIA STAFF REPORT CITY COUNCIL DATE: May 2, 2023 TO: Honorable Mayor and City Councilmembers FROM: Linda Smith, City Manager SU B.ECT : Report on the Public Facilities Fee Program Prepared by: Colleen Tribby, Assistant City Manager EXECUTIVE SUMMARY: Agenda Item 8.3 The City Council will receive an overview on the City's Public Facilities Fee Program and on the Program update currently underway. Staff is seeking direction on a recommended change to the Program to satisfy the parkland requirement as the City nears build out. STAFF RECOMMENDATION: Receive the report and provide direction Staff's recommended change to the Program to satisfy the parkland requirements. FINANCIAL IMPACT: None. DESCRIPTION: This Staff Report serves two purposes. First, it provides a general overview of the Public Facilities Fee Program to answer questions about the impact fee, such as what the program is designed to accomplish, how fees are collected, what expenses are eligible, the current fund balance, and project priorities. Second, it presents a potential change for the City Council to consider in order to satisfy parkland requirements. Overview What are development impact fees? Development impact fees are fees charged to developers for the purpose of paying all or a portion of the cost of public facilities needed to serve future residents of the development project. These fees are subject to strict requirements: if they do not relate to the impact created by the development or exceed the reasonable cost of providing the public facility, the fees may be declared a special tax and would then be subject to a two-thirds voter approval. In addition, the Page 1 of 6 339 revenues generated from development impact fees may only be used for the purpose for which they were collected. The City can collect impact fees to fund many types of public facilities. State law defines public facilities (Government Code section 66000(d)) broadly. For example, public facilities can include public improvements such as fire stations, libraries, sewer plants, traffic improvements, and city administrative buildings, but does not include schools. The City of Dublin collects various impact fees including: • Public Facilities Fee • Fire Impact Fee • Eastern Dublin Transportation Impact Fee • Western Dublin Transportation Impact Fee • Dublin Crossing Transportation Fee • Tri-Valley Transportation Development Fee • Noise Mitigation Fee • Freeway Interchange Fee • Affordable Housing In -Lieu Fee • Dublin Ranch West Side Storm Drain Benefit District • Dublin Ranch East Side Storm Drain Benefit District This report focuses solely on the City's Public Facilities Fee (PFF) Program, which collects fees from new development to build parks, recreational, and administrative facilities within the City of Dublin. What exactly does the PFF fund? In 1996, the City of Dublin adopted PFF Program as one means of paying for infrastructure needs resulting from new development. As part of the PFF adoption, the City developed public facilities plans (Parks and Recreation Master Plan, Civic Center Master Plan, Library Master Plan, etc.) for public improvements that are necessary through buildout. The objective is to ensure that adequate public facilities will be available to meet the projected needs of the City as it grows and to further ensure that the facilities planned are consistent with the adopted General Plan. Currently, the PFF collects funds to support the development of facilities in the following categories: Parks, Civic Center, Library, Community Buildings, and Aquatics. Within the Parks category, the City collects a land acquisition fee and an improvement fee for the following types of parks: 1. Neighborhood Parkland 2. Neighborhood Park Improvements 3. Community Parkland 4. Community Park Improvements 5. Nature Parkland 6. Nature Community Park Improvements Page 2 of 6 340 As previously mentioned, various studies and plans provide standards for the amount or size of the facilities the City needs to have available to provide adequate services to the population within the community. For example, the Parks and Recreation Master Plan established a standard that for every 1,000 residents, the City will provide five acres of parkland to provide sufficient recreational and cultural opportunities. The Dublin Municipal Code (Chapter 9.28.040) breaks those five acres per thousand residents into specific needs by category: 1.7 acres for neighborhood parks, three acres for active community parks, and 0.3 acres for nature community parks. To mitigate the cumulative impact, a public facilities fee is charged so that the new development, both residential and commercial, bears its fair share of the increase in service demands on its facilities. What are PFF eligible expenditures? As indicated above, different fee categories have been established to mitigate the impact of new development on the City's public facilities. The City can use the fees to design and construct the facilities identified in the program. This includes construction costs; soft costs such as staff time for project management; contract services for design, engineering, testing, etc.; furnishings, fixtures, and equipment; and miscellaneous costs such as printing, legal noticing, etc. What happens when the City receives the Public Facility Fees? Funds received under the PFF program are segregated from the General Fund and used solely, as required by State law, for the purposes of acquiring and developing new parks and public facilities. When a developer remits PFF fees to the City, the fees are deposited into the Public Facilities Fund, for which the balance is reported in the City's Annual Comprehensive Financial Report (ACFR). While the fees collected are held in this one fund within the City's accounting system, Staff tracks the receipts and expenditures of fees by fee category (Library, Civic, Neighborhood Park, Community Park, Community Buildings, etc.). This ensures at build -out the City can account for how the fees were spent on the intended facilities. What has the PFF funded? Since the adoption of the PFF Program in 1996, the City has acquired and/or improved most of its 267 acres of current parkland using the PFF. A list of total parkland inventory is provided in the table below (parkland already in existence when the PFF was adopted in 1996 are noted with an asterisk). Page 3 of 6 341 City Parkland Inventory Neighborhood Parks Alamo Creek Park * Bray Commons Clover Park Cottonwood Creek Park and School Devany Square Dolan Park * Dougherty Hills Dog Park Jordan Ranch Park Kolb Park * Mape Memorial Park * Passtempo Park Piazza Sorrento Postinao Hills Park Schaefer Ranch Park Sean Diamond Park Stagecoach Park * Ted Fairfield Park Butterfly Knoll Park Subtotal Acres 5.30 4.80 2.00 10.08 2.00 4.90 1.40 4.90 4.90 2.60 5.10 2.00 4.60 6.30 5.03 0.90 6.90 1.08 74.79 Community Parks Acres Don Biddle Community Park 30.00 Dublin Heritage Park and Museums * 10.00 Dublin Sports Grounds * 22.90 Emerald Glen Park 49.00 Fallon Sports Park 60.10 Shannon Park * 9.60 Subtotal 181.60 Nature Community Parks Sunrise Park Subtotal Total Acres: 267.09 10.80 10.80 What is the current fund balance in the PFF? Fiscal Year 2022-23 fund balance in the Program is approximately $101,000 in the negative. At the end of the current Five -Year Capital Improvement Program, the PFF will have a negative fund balance of approximately $2.0 Million. Impact fee funds can run in a deficit position due to a lag between expenditures on projects and collection of development impact fees. How are PFF project priorities set? Project priorities are set by the City Council and are adopted as part of the City's Capital Improvement Program (CIP) on an annual basis at a noticed Public Hearing. The CIP includes projects that Staff recommends for funding and shows the timeline for when certain portions of a project will proceed. Importantly, it is a funding program that is designed to be self-sustaining and separate from the City's other sources of revenue. What are the City's current spending priorities in the PFF? The current Five -Year CIP includes the following improvements: • Cultural Arts Center - The project started demolition in November 2022 with completion of construction anticipated in mid-2024. Page 4 of 6 342 • Library Tenant Improvements - Staff is in the process of surveying residents on the uses of the expanded space and will engage with a design firm later in 2023. • Fallon Sports Park Phase 3 - The project is anticipated to be entirely completed in spring/summer 2023. • Downtown Dublin Town Square Park - The planning phase will begin in 2023. • Jordan Ranch Neighborhood Square - Construction is anticipated to begin in 2024. • Wallis Ranch Community Park - Construction is anticipated to begin summer 2023. • Iron Horse Nature Park and Open Space - Construction of the first phase is anticipated to begin in summer 2023. What are the future, remaining PFF projects not included in the Five -Year GIP? The following projects funded by the PFF are currently planned for outside the 2022-2027 CIP: • Jordan Ranch Community Park (GH PAC Vest) - 7.2 acres • Croak North - 5.0 acres • Croak South - 6.0 acres • Dublin Crossing Neighborhood School Site - 5.0 acres • SCS Linear Park - 2.5 acres • Emerald Glen Park Phase 2 - Facility estimated at $17.6 million In addition to those identified projects listed above, according to the 2017 Public Facility Fee Program, the City would need additional parkland acquisition of 21 acres to meet the City's overall acreage requirement. This will change with the update to the PFF, which will account for an increase in population and land and improvement costs. Will the General Fund need to loan funds to or subsidize the Program in the future? Yes. The City adopted its first fee program in 2003 and didn't adopt another comprehensive fee update until 2015. During that period, the City did not generate sufficient revenues to fully fund facilities to serve new development. With the 2017 update, the City's General Fund will need to subsidize the Program with approximately $6.7 million. Based on the 2023 update currently underway, that number will double. In terms of loaning funds to the Program, the City's General Fund has contributed $15 million to the Public Safety Complex, of which $13.5 million will be reimbursed by future PFFs. The City Council received the $15 million as a Community Benefit Payment as part of the negotiated development agreement with the Dublin Crossing Project. In, as of Fiscal Year 2022-23, the City has set aside a reserve of $10 million. It is being used to advance funding to projects like Wallis Ranch Community Park, Jordan Ranch Neighborhood Square, and the Library Tenant Improvements, and will be paid back by the PFF over time. In addition to the loans, the City Council allocated $4.8 million as a "gift" from the General Fund to two PFF projects to pay for enhancements to The Wave ($3.0 million towards the natatorium) and Fallon Sports Park ($1.8 million toward synthetic turf and field lighting for the soccer fields) that were not anticipated in the PFF program. These contributions were characterized as "gifts" or Page 5 of 6 343 "grants" because they paid for enhancements to projects in the PFF and, therefore, are not eligible for repayment from the PFF in the future. 2023 PFF Update Considerations Parkland Discussion In keeping with good government practice, the City embarked on an update to the Fee Program late last year following the release of new census data (population counts) and updates to the City's Housing Element of the General Plan, as well as to capture the increased costs for improvement to public facilities and parks. The City retained the services of Willdan, who has previously conducted our fee analysis for the update. In summary, because of the new population data from the US Census and the Housing Element, the City will have a deficit of parkland of close to 50 acres, which is a significant increase from the 2017 report's deficit of 21 acres. The majority of this is in the active community parkland category. Because there is virtually no land left for active community parks in Dublin, the City will be unable to meet this objective. Staff's recommendation is to shift the acreage requirement from Community Parkland to Nature Community Parkland, essentially so that the remaining deficit can be solved with the addition of nature parks. Staff has been engaged in discussions with the property representatives of GH Pac Vest regarding the conversion of their significant open space designation into nature community parkland. This area is approximately 35 acres and can be designed to accommodate low impact use, such as hiking and walking along designated trails. In the recent update the Parks and Recreation Master Plan, walking and trail use was one of the most popular and requested use of city facilities. Nature community parks also have the added benefit of being less costly to the City for maintenance and ongoing use. They do not require any restroom facilities, also limiting cost to the City. If the City Council is interested this approach, Staff will work with the consultant on how to capture remaining improvement needs for the current active community park, update the City's parks dedication ordinance accordingly, and continue the discussions and the possible General Plan amendment with GH Pac Vest to accommodate the area's use a park facility. STRATEGIC PLAN INITIATIVE: None. NOTICING REQUIREMENTS/PUBLIC OUTREACH: The City Council Agenda was posted. ATTACHMENTS: None. Page 6 of 6 344