Chapter 4.10
PARK IMPROVEMENT FEE
Sections:
4.10.030 Establishment and administration of park fund.
4.10.080 Inflationary adjustments.
4.10.090 Adoption in compliance with improvement plan.
4.10.100 Authorization of credits.
4.10.120 Procedure for credits.
4.10.130 Apportionment of credits.
4.10.140 Criteria for reimbursement.
4.10.150 Procedure for reimbursement.
4.10.160 Reimbursement agreements.
4.10.010 Definitions.
The following words are defined for purposes of this chapter as follows:
“Building permit” means the permit issued or required by the city for the construction of any structure pursuant to and as defined by the building code.
“Commercial” means those business activities which are permitted or allowed in the following zoning categories: BP, C-1, C-2, C-3, CH and bed and breakfast.
“Director” means the public works director.
“Division” means the division of parks and recreation within the public works department.
Dwelling, Multiple-Family. “Multiple-family dwelling” means a building designed for occupancy as a residence by two or more families, living independently of each other; provided, that multiple-family dwelling also includes forms of congregate living, including, without mitigation, senior citizen homes, retirement homes or boarding homes.
Dwelling, Single-Family. “Single-family dwelling” means a building designed for occupancy as a residence by 1 family, including without limitation, mobile homes.
“Dwelling unit” means a building or part of a building designed for occupancy as a residence by a family.
“Facilities” means those park and recreation, improvements, or infrastructure generally identified in the studies and more specifically determined from time to time by the city council. Facilities do not include land.
“Fee” or “park improvement fee” means the fee established by this chapter. The fee shall be collected prior to the issuance any building permit. The fee shall be used solely to finance the facilities.
“Industrial” means those business activities which are permitted or allowed in the following zoning categories: M-1, M-2, M-L and MF.
“Park capital improvement program” means those proposed city-wide park and recreation facilities identified in the studies.
“Park improvement fund” means the special fund established pursuant to Section 4.10.030.
“Quimby Act” means the park dedication and/or in-lieu fee requirements applicable to subdivisions adopted by the city council pursuant to Section 66477 of the California Government Code.
“Studies” means to the following plans and studies:
1. General plan of 1988;
2. Park and recreation master plan dated 1989 and the supporting data base and facilities analysis;
3. Park capital improvement impact fee study by Harland Bartholomew and Associates dated September 1990 and June 1991 supplement thereto;
4. MSI development impact report and impact fee report on park and recreational facilities dated April 1991;
5. Management Services Institute Development Impact Fee Update for the City of Folsom dated August 1993 and May 1996 Update.
The studies are on file in the offices of the director and the city clerk. (Ord. 880 § 2(1), 1997; Ord. 701 § 1 (part), 1991)
4.10.020 Purpose.
The city council finds and declares that the purposes of this chapter are as follows:
A. The general plan of the city and in particular the park and recreation element thereof, requires that the city be provided, in a time frame related to its development, with an adequate level of park and recreation facilities so as to maintain not less than 5 acres of developed city parks per 1,000 population, which is below the existing ratio of park land to population.
B. New development, and the expansion of existing development, within the city imposes a burden on the existing park and recreation facilities by adding additional population and employees and by creating a need for new park and recreation facilities to serve such development.
C. Analysis of the land use expected at buildout of the city pursuant to the general plan makes it possible to
estimate the number of dwelling units to be constructed, the population generated by those dwelling units and the number of persons to be employed by commercial and industrial land users. It is therefore possible to arrive at a fee, based on population and jobs created which equitably spreads the burden of park and recreation facilities to those who create the need for them and utilize them. It is the intent of this chapter to create such a fee, spreading costs of park and recreation facilities to those who create the need for such facilities, without generating any surplus to the general fund. It is a further purpose of this chapter to implement the general plan by assuring that adequate park and recreation facilities are financed and provided to serve the future needs of the city.
D. The park capital improvement program estimated the cost of park and recreation facilities to serve the entire city is $37,609,000. Of this amount, $32,555,000 is to be funded by the park improvement fee imposed by this chapter. The facilities to be funded by the park improvement fee include certain, but not necessarily all, of the facilities identified in the park improvement program. Park and recreation facilities to serve areas where the park improvement fee is not imposed, shall be financed by other sources of revenue.
E. In order to determine the need for park and recreation facilities created by new residents and jobholders and to spread the cost of such facilities among those who create the need for them, the city conducted various studies. The studies estimated the number and type of park and recreation facilities to meet the needs created by new development and the cost of such facilities. Based upon the studies residential development should bear 85 percent of the cost of the facilities and commercial/industrial development should bear 15 percent of such cost. The fee established by this chapter has been calculated in the manner called for in the studies in order that the impact upon facilities is borne by the type of development causing the same.
F. The studies indicate that land for park and recreation facilities will be provided by the Quimby Act dedications and in-lieu fees and, except as provided in Section 4.10.030, that the fees established by this chapter will be utilized exclusively to provide facilities. Except in circumstances where the city and the subdivider have entered into a credit and/or reimbursement agreement in accordance with the provisions of this chapter, credit for subdivider installed park and recreation improvements to the dedicated land shall be allowed against the land dedication and/or in-lieu fees required by the Quimby Act and Section 16.32.040.
G. The fee established by this chapter is in addition to any other fees or charges, or taxes, required by law or city code as a condition of development, including, but not limited to, the residential construction tax levied by Chapter 17.90, capital improvement—new construction service charge levied by Chapter 17.92, drainage fees levied by Chapter 17.95, Quimby Act fees levied by Chapter 16.32 and major road fees levied by Chapter 12.04.
H. The fee established by this chapter is to be collected for park and recreation facilities for which an account shall be established and funds appropriated, and for which a proposed construction schedule shall be adopted.
I. The failure to impose the conditions and regulations of this chapter relating to payment of the fee on building permits would jeopardize residents of the community, in that it would permit construction and development to proceed without adequate park and recreation facilities or means of financing such facilities.
J. The fee imposed by this chapter is necessary in order to assure compliance with the applicable general plan requirements that new development bear the cost for park and recreation infrastructure which is needed to serve such development.
K. That for a period of greater than 10 days prior to adoption of the ordinance codified in this chapter, data has been available to the public, and to developers and their representatives, indicating the cost or estimated cost of all the facilities to be funded, the revenue sources anticipated, and the method of spreading these costs.
L. That the city council has considered the effect of the fee imposed by this chapter with respect to the housing needs of the city as a whole and of the region, particularly as required by the housing element of the general plan, and the city council finds that this chapter does not unduly adversely affect the city’s ability to provide for such needs. (Ord. 880 § 2(2), 1997; Ord. 701 § 1 (part), 1991)
4.10.030 Establishment and administration of park fund.
The finance director is directed to establish a special fund entitled the park improvement fund. All fees collected pursuant to this chapter shall be deposited in the fund and shall be expended solely to finance the planning, construction and development of the facilities. Nothing contained herein shall preclude the temporary use of park improvement fees for the acquisition of parkland serving the area from which the fees were collected, provided the fees shall be repaid from Quimby Act in-lieu fees at such times, at such interest and upon such terms and conditions as shall be established by resolution of the city council. (Ord. 701 § 1 (part), 1991)
4.10.040 Payment of park fee.
Except as otherwise provided by this chapter, the fee imposed pursuant to this chapter shall be paid at or prior to the issuance of any building permit for a structure which is subject to this chapter. Calculation of the fee has been determined in accordance with the studies and this chapter depending upon the type of residential development or the size extent of commercial or industrial development. (Ord. 701 § 1 (part), 1991)
4.10.050 Amount of park fee.
The fee shall be:
|
Land Use Category |
Amount of Fee |
|
Single-Family Residential |
$8,199 per unit |
|
Multifamily Residential |
$5,446 per unit |
|
Senior Residential Housing |
$4,210 per unit |
|
Mobile Dwellings |
$3,146 per unit |
|
Commercial/Industrial |
$0.555/sq. ft. |
(Res. 11233, 2024; Res. 10913, 2022; Ord. 880 § 2(3), 1997; Ord. 701 § 1 (part), 1991)
4.10.060 Exempt development.
A. No fee shall be charged for the following developments or projects:
1. Completed structures;
2. Structures under construction for which a valid building permit is in force upon the effective date of the ordinance codified in this chapter;
3. Construction within a subdivision which is covered by a development agreement entered into between the developer and the city under Government Code Section 65864 et seq., which agreement is in full force and effect and expressly prohibits the imposition of additional park and recreation fees.
B. If any residential structure in existence at the time of the adoption of the ordinance codified in this chapter is destroyed by fire, explosion, act of God or act of public enemy to the extent of more than one-half the value thereof, any rebuilding after the date of such destruction shall not be subject to the fee imposed by the chapter provided the area of such structure is not increased by more than 10 percent. For the purposes of this chapter, the value shall be determined by the city building inspector based upon the cost of replacement.
C. Additions to existing commercial or industrial structures shall be subject to the fee established by the chapter. (Ord. 701 § 1 (part), 1991)
4.10.070 Fee adjustments.
A. The developer of any project subject to the fee established by this chapter may apply to the director for a reduction or adjustment to the fee based upon the absence of any reasonable relationship or nexus between the impacts of the project and either the amount of the fee or the facilities to be financed by the fee. The application shall be made in writing and filed with the director not later than 20 calendar days after notification of the amount of the fee. The application shall state in detail the factual basis for the claim of reduction or adjustment and the amount of the proposed reduction or adjustment. The director shall consider the application and render his/her decision in writing not later than 45 calendar days after the filing of the fee adjustment request. Any person aggrieved by the decision of the director may, within 20 calendar days thereafter, appeal the decision in writing to the city council by filing an appeal with the city clerk. The city council shall consider such appeals within 45 calendar days after filing. The decision of the city council shall be final. No building permit shall be issued for the project until the final decision pursuant to this section has been made. No application for a project shall be considered final or complete for purposes of the Permit Streamlining Act (Government Code Section 65920, et seq.), or any other purpose, until a final decision pursuant to this section has been made.
B. Notwithstanding the provisions of subsection A, a project proponent or applicant may pay the fee “under protest” and receive a building permit. An application for reduction or adjustment pursuant to subsection A shall be filed within 10 calendar days after payment under protest and if not so filed, any objection shall be deemed waived. If a reduction or adjustment is received after payment pursuant this subsection is made, a refund to the applicant shall be made of the amount by which the fee is reduced or adjusted.
C. The project proponent or applicant applying for a reduction or adjustment shall have the burden of proof, by a preponderance of the evidence, that a reasonable relationship or nexus is lacking between the fee, or the facilities to be financed by the fee, and the particular project.
D. In the event of any reduction or adjustment in the fee granted pursuant to this section, any later change in the use, zoning or land use designation for the property involved shall subject to then owner to payment of the then applicable fee for such new uses, zoning or land use designation, whether or not a building permit is required. (Ord. 701 § 1 (part), 1991)
4.10.080 Inflationary adjustments.
The fee established by this chapter shall automatically be adjusted each fiscal year by a percentage equal to the change in construction costs since the prior fiscal year as determined by the director based upon Engineering News Record (or similar publication) construction cost index. The determination shall be reported in writing to the city council by the director as soon as the information is available. The city council shall forthwith make such adjustment by resolution. (Ord. 701 § 1 (part), 1991)
4.10.090 Adoption in compliance with improvement plan.
When the moneys in the park improvement fund are disbursed for use, the fees shall be used to finance the planning, acquisition, construction and development of the facilities. To the extent sufficient fees are available, all facilities financed by the fees shall be constructed or acquired in accordance with the priorities established or to be established by the city council after considering the capital improvement program as amended from time to time. (Ord. 701 § 1 (part), 1991)
4.10.100 Authorization of credits.
Whenever a person constructs facilities authorized by this chapter, or environmental mitigation associated with the construction of facilities, which were constructed pursuant to improvement plans approved by the parks and recreation director, then such person may be entitled to a credit against any fees or charges due pursuant to this chapter, subject to the provisions of this chapter. (Ord. 880 § 2(4), 1997)
4.10.110 Amount of credits.
Unless otherwise set forth in this chapter, the amount of credits authorized for the construction of facilities shall be determined by the parks and recreation director based on recent competitive bids, but shall not exceed the actual cost of construction. (Ord. 880 § 2(5), 1997)
4.10.120 Procedure for credits.
A. Any person desiring credits for the construction of facilities shall, prior to approval of improvement plans for the facilities, execute an agreement with the city authorizing credits. Agreements for credits in an amount of $25,000 or greater must be approved by the city council. Agreements for credits in an amount less than $25,000 may be approved by the city manager or his/her designee.
B. Tentative credits shall be allocated prior to the acceptance of facilities, so that they may be subtracted from fees at the time fees are paid. Credits shall be adjusted as necessary at the time the facilities are accepted by the city. The person receiving tentative credits shall agree that if the facilities are not accepted by the city, all tentative credits allocated shall be reimbursed to the city within 60 days of notice of nonacceptance of the facilities. The person receiving tentative credits shall further agree that if tentative credits allocated exceed the final credits, the excess amount shall be reimbursed to the city within 60 days of notice of such amount. (Ord. 880 § 2(6), 1997)
4.10.130 Apportionment of credits.
A. Except as set forth in this section, credits shall only be applied against fees and charges due as a result of development or new construction within the subdivision for which the construction of facilities was required or authorized, and credits shall be equally apportioned to all lots within the subdivision. Credit agreements may not otherwise be assigned without the consent of the city council.
B. Credits may only be apportioned to parcels not within the subdivision if within 30 days from the date that credits are authorized the parks and recreation director determines:
1. The parcel or parcels on which credit is sought are contiguous holdings of an individual or firm at the time construction of facilities is begun;
2. Only credits in excess of the amount of the fees which would have been due on such subdivision or parcel and each subsequent unit thereof within such contiguous holding may be apportioned to other contiguous parcels;
3. The parcel or parcels to which such credits are to be apportioned must be served by the facilities for which credits are authorized;
4. An agreement has been executed between the owner of the contiguous parcels and the city establishing the amount to be credited to each parcel prior to improvement plan approval for the initial parcel.
C. When credits are apportioned, the credit amounts shall be based on the rates in effect on the date improvement plans are approved for the parcel to which credits have been apportioned. (Ord. 880 § 2(7), 1997)
4.10.140 Criteria for reimbursement.
Except where specifically excluded, whenever credits are authorized for the construction of facilities pursuant to this chapter, and the credit amount exceeds the amount of the fees due pursuant to this chapter, the city shall reimburse the person entitled to such credits in accordance with the provisions of this chapter. (Ord. 880 § 2(8), 1997)
4.10.150 Procedure for reimbursement.
Excess credits shall only be reimbursed pursuant to the terms of a reimbursement agreement executed by the city and the person entitled to such credits. (Ord. 880 § 2(9), 1997)
4.10.160 Reimbursement agreements.
A. The reimbursement agreement shall include the following terms and conditions:
1. The amount of excess credit to be reimbursed;
2. The schedule for such reimbursement. Such schedule shall not exceed 5 years from the date of acceptance of the facilities by the city, unless funds are not available, as determined by the finance director. If funds are not available when reimbursement is due, payment shall be postponed to the following year;
3. Reimbursement of excess credits of $10,000 or less shall be made within 45 days of the acceptance of the facilities by the city;
4. No prepayment penalties are allowed;
5. Interest on the unpaid balance shall be paid annually in December at the net city treasury pool rate for the prior fiscal year. Interest shall not begin to accrue, however, until 90 days after the facilities are accepted by the city;
6. The reimbursement agreement may only be assigned by a written amendment to the agreement executed by the finance director, the assignor(s) and the assignee(s);
7. Notwithstanding any provisions to the contrary, excess credit shall not be reimbursed unless and until the facilities are accepted by the city;
8. Notwithstanding any provisions to the contrary, excess credits shall not be reimbursed until all fees and charges required by this chapter have been paid for all parcels on which credit is sought and for all contiguous lots, parcels or real property owned by or recorded as the property of the same person at the time construction of facilities is begun.
B. Except as authorized by this section, reimbursement agreements must be approved by the city council. If the city council has previously approved a credit agreement with a party, the city manager may approve a reimbursement agreement with the same party if the amount of the reimbursement does not vary from the amount of the credit agreement by more than 10 percent. Reimbursement agreements for amounts less than $25,000 may be approved by the city manager or his/her designee. (Ord. 880 § 2(10), 1997)