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CITY COUNCIL AGENDA ITEM NO. 23

Meeting Date: August 26, 2003

Subject/Title: Public Hearing-Adoption of a temporary in-lieu parking fee for new and expanding projects within the downtown area.

Submitted by: Community Development (M. Oshinsky/M. Leana)

Approved by: John Stevenson, City Manager

RECOMMENDATION
The City Council Economic Development Subcommittee and staff recommend passage of a Resolution adopting an in-lieu parking fee for handling deficiencies in the provision of off street parking for new and expanding projects within the downtown area.

BACKGROUND
During the past several months staff has been approached by several potential developers who desire to either build, expand or convert existing buildings within the downtown area. One of the “sticking” points is the ability to adhere to the off-street parking requirements of the City Zoning Ordinance. Although a much more lenient “special” parking standard was established for all buildings constructed prior to 1986 in the Downtown core (the CB zoned area), the lack of on-site space often precludes the ability to provide any additional parking, much less the reduced City requirement. In the past ten years this has lead to seven parking variance requests which were approved in order to provide an economic stimulus to Downtown development.

While the variance option still exists to accommodate expanding business development/redevelopment within the Downtown area, given the City’s intent to construct a Downtown parking garage staff felt now might be the time to consider adopting a per stall parking in-lieu fee for projects that cannot adhere to their parking requirement. Thus, instead of collecting a fee for a variance application and processing the paper work, the adopted in-lieu fee could be placed in a special account to assist in funding the construction, operation and maintenance of the future parking structure, and/or other Downtown parking facilities or improvements.

ANALYSIS
Section 17.620.019 of the Brentwood Municipal Code (the City’s Parking Ordinance) allows for an exception to the City’s parking requirements by establishing in-lieu parking provisions. Subsection C. of this section allows the off-street parking and loading requirements of a use to be met “by the payment of the costs of the required off-street parking spaces to be placed into a trust fund for the provision of future off-street parking facilities.”

Staff surveyed a number of California cities to determine the amount of in-lieu fees charged elsewhere, and worked with the RDA staff to have Gruen & Gruen (G&G) research this issue with respect to land values in Downtown Brentwood in the hope of recommending a reasonable in-lieu fee that would generate substantial revenue but not hinder economic development within the Downtown. The G&G report, “Strategies and Programs for a Vital Town Center” (April, 2003) that was previously presented to the City Council for use in the preparation and formulation of the Downtown Specific Plan, recommends the initial adoption of a $2,500 per parking space in-lieu fee. The report also calls for a reanalysis of the fee in succeeding years so as not to discourage downtown development/redevelopment but keep the fee inline with anticipated rising rents in the Downtown as the City builds out.

Based upon G&G’s analysis, a $2,500 in-lieu fee per each deficient stall for any proposed new development/redevelopment/expansion/conversion of property within the Downtown area that could not provide the parking required under the City’s Parking Ordinance was suggested. This fee would be collected at the time of building permit issuance.

This recommendation was presented to the City Council’s Economic Development Subcommittee. After discussing the topic and agreeing to the concept, the Subcommittee elected to recommend that the fee be set at $5,000 per deficient stall to better reflect the actual cost of constructing an off-street parking space. Subsequently Economic Development, Engineering, Community Development and City Attorney discussed the fee in relation to consistency with the General Plan, Redevelopment Plan and Zoning Ordinance. This led to the idea of “tweaking” the fee to include residential uses in case any were proposed, and to provide some incentive for encouraging the use of a building’s ground floor for retail, and not office, uses. Thus a “tiered” fee was created for office uses with a $10,000 per stall fee for office use on the first floor and $5,000 for office use on the second floor.

Staff is therefore presenting to the Council the recommendation of the Economic Development Subcommittee, modified by the addition of the in-lieu fee to apply to residential uses and a tiered fee for office uses. If the City Council feels the fee should be a flat $5,000 for all uses, Exhibit ‘A’ in the resolution can be easily modified.

Attachments
In-lieu Fee Resolution with map
G&G’s report “Strategies and Programs For A Vital Town Center” (available for review in the City Clerk’s and Community Development Department’s offices)

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD ADOPTING THE IN-LIEU PARKING FEE AS PRESENTED IN EXHIBIT ‘A’, AMENDING RESOLUTION NO. 2366 TO REVISE THE MASTER FEE PROGRAM.

WHEREAS, the City Council has adopted ordinances and resolutions establishing and revising fees required to be paid by new development; and

WHEREAS, Brentwood Municipal Code §§16.130.010 et seq., provides for the payment of public facility impact fees; and

WHEREAS, Brentwood Municipal Code Section 17.620.019 allows for an exception to the City’s parking requirements by establishing an in-lieu parking provisions and allows the off-street parking and loading requirements of a use to be met “by the payment of the costs of the required off-street parking spaces to be placed into a trust fund for the provision of future off-street parking facilities”; and

WHEREAS, the City Council has periodically revised development fees for public facilities, including the revisions contained in Resolutions 89-56, 93-96, 95-201, 97-217, 98-85, 99-179, 99-212, 2198, 2202, 2220 and 2202; and

WHEREAS, said resolutions were based on information contained in detailed studies of the impacts of future growth on local facilities entitled “Brentwood Capital Improvements Costs and Basis of Development Fees” for 1989, 1993, 1995, 1997, 1998, 1999, 2000, and 2001 respectively (the “Development Fee Programs”); and

WHEREAS, additional analysis and update of the impact of future development on public facilities in the City of Brentwood has been completed by the City for downtown off-street parking, entitled “Strategies and Programs For a Vital Town Center,” dated April 22. 2003; and

WHEREAS, the City of Brentwood’s supporting data were available for inspection and review for ten (10) days prior to this public hearing; and

WHEREAS, a public hearing has been noticed and held in accordance with Government Code Section 66016, 66017 and 66018; and

WHEREAS, the City Council has considered the information provided to it by those testifying, and has reviewed and considered the information provided in the staff report and staff presentation and has read and considered all of the studies related to In Lieu Parking Fees.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BRENTWOOD DOES RESOLVE AS FOLLOWS:

Section 1. Findings:

The Council makes each of the following findings:

A. The purpose of these fees is to finance parking facilities to reduce the impacts caused by future development in the City of Brentwood.

B. The parking fees implement policies of the City of Brentwood General Plan, including the policies that “new development shall contribute its fair share of the cost of on and off-site public infrastructure and services. This shall include installation of public facilities, payment of impact fees, and participation in a Capital Improvement Financing Program (Growth Management Policy 1.1.6 and 1.4.4).

C. The parking fees will enable the City to construct parking facilities and to meet the needs of new businesses/residential/office uses in the Brentwood Downtown;

D. The City and certain developers in the community have constructed some facilities that are sufficient to serve some new development. It is appropriate that new development provide revenue to reimburse fee accounts and developers, if appropriate, for costs that have been previously incurred to construct oversized facilities that directly benefit new development [Government Code Section 66007(b)(2)].

E. After considering the studies and analyses prepared by City staff and the testimony received at this public hearing, the Council approves and adopts said study, and incorporates such herein, and further finds that future development in the City of Brentwood will generate the need for the additional public off-street parking facilities specified in said report, and that these facilities are consistent with the City’s General Plan.

F. The studies and the testimony establish:

1. That there is a reasonable relationship between the fee’s use and the type of development on which the fee is imposed; and

2. That there is a reasonable relationship between the need for the public parking facilities and the impacts of the types of development for which the corresponding fee is charged; and

3. That there is a reasonable relationship between the amount of the fee and the cost of the public facility or portion of the public facility attributable to the development on which the fee is imposed; and

4. That the cost estimates set forth in the studies are reasonable cost estimates for constructing these facilities, and the fees expected to be generated by future developments will not exceed the total costs of constructing the public facilities.

5. That there is a need to construct certain parking improvements in the Downtown.

G. Pursuant to Government Code Section 66007(b)(1), the fees will be collected for public improvements or facilities for which development fee accounts have been established prior to final inspection. In addition, pursuant to Government Code Section 66007(b)(2), some of the fees may be used to reimburse the City for expenditures previously made.

Section 2. Fees Imposed:

A. New development in the City of Brentwood Town Center and Downtown area as specified in the attached map shall pay in lieu parking fees, as set forth in the Exhibit ‘A’, to this Resolution and incorporated by reference. Fees shall be charged and paid in amounts existing at the time of commencement of the project or upon issuance of the applicable City permit, notwithstanding the amounts set forth in this Resolution.

B. In the use of any inconsistency between the text of this Resolution and the text of the City of Brentwood 2002 Development Fee Program, the provisions of this Resolution shall control.

Section 3. Definitions:

A. “Square foot” shall mean every square foot of floor area as defined in the Uniform Building Code as adopted by the City of Brentwood, except for floor area devoted exclusively to parking. The City Engineer or his/her designee shall determine the square footage of any project which cannot be calculated by using the definition of the floor area.

B. “Unit” shall mean a dwelling unit as defined in the Uniform Building Code as adopted by the City of Brentwood.

Section 4. Park Facilities To Be Financed With Fees:

A. The In Lieu Parking Fees collected pursuant to this Resolution shall be used to finance the following improvements:

1. Parking Facilities in the downtown area as identified in the City’s Parking Study, completed by Gruen and Gruen, and any other parking study completed by the city.

Section 5. Collection of Fees:

A. The applicable In Lieu Parking Fee shall be determined on the basis of the fee schedule in effect at the time the building permit, or other applicable permit is issued. If no permit is required, then the fees are payable in the amounts in effect at the commencement of the project. The Community Development Director or other official or other official designated by the City Manager shall determine the amount of the fee in accordance with the standards set forth in this Resolution.

B. The In Lieu Parking Fees shall also be paid as a condition of an extension or renewal of a public permit issued after passage of this Resolution if a fee has not been paid previously.

Section 6. Exemptions.

A. To the extent a development demonstrates it has rights vested at an earlier time or a specified amount for an In Lieu Parking Fees, such as pursuant to a previously adopted development fee schedule or an agreement by and between the City and the developer, this fee schedule may not apply;

B. The fee shall not be required of any project involving replacement of existing structures destroyed by fire or other natural disaster or constructed as part of a redevelopment project, or to rehabilitation of existing structures where the total cost of the work undertaken is less than fifty percent (50%) of the value of the existing structure;

C. The following uses are categorically exempt from the fees imposed by this Resolution: Christmas Tree Lots, Seasonal Fruit Stands, Mobile Food Vendors, and Circuses and Carnivals, or a use requiring a City Council approved Temporary Use Permit.

Section 7. Exceptional Fee Circumstances:

A. A developer of projects which do not squarely fit within the development categories listed in Exhibit A shall be subject to the fees imposed pursuant to determination by the Community Development Director using the criteria set forth in the Program.

B. Nothing in this Resolution shall be construed to affect the City’s discretion, upon proper application for senior housing, congregate care facilities or affordable housing pursuant to Government Code Section 65915, to adjust the In Lieu Parking Fees.

Section 8. Use of Fee Revenues:

The revenues raised by payment of these fees shall be segregated into a separate in lieu parking account trust fund and the revenues, along with any interest earnings on such account, shall be used to pay for design, construction, and maintenance of designated off-street parking facilities, reasonable costs of outside consultant studies related thereto, costs of program development, ongoing administration of the In Lieu Parking Fees program, including legal costs, and any applicable reimbursement obligations.

Section 9. Periodic Review and Adjustments to Fees:

A. Within one hundred eighty (180) days after the close of each fiscal year, the City Manager or his designee shall prepare a report for the City Council, pursuant to Government Code Section 66006, identifying the balance of fees in the account at the beginning and end of the fiscal year, the fee, interest, and other income, and the amount of expenditure by public facility, any refunds, and other expenditures.

B. The City shall make the periodic report available to the public, and the City Council shall review the report at a regularly scheduled meeting in accordance with Section 66006.

C. The City shall similarly conduct the periodic review under Government Code Section 66001(d) every five (5) years.

D. Pursuant to Government Code Section 66002, the City Council shall also annually review, as a part of the Capital Improvement Plan, the approximate location, size, time of availability and estimates of cost for all facilities or improvements to be financed with the fees. The annual review shall also include a review of the administrative charge. The City Council shall make findings identifying the purpose to which the existing fee balances are to be put and demonstrating a reasonable relationship between the fee and the purpose for which it is charged. This annual review of the Capital Improvement Plan may warrant adjustments to the In Lieu Parking Fees adopted herein.

E. Those fees established by this Resolution shall on July 1 of each year be automatically increased or decreased from the amount then applicable by the same percentage as the percentage of increase or decrease in construction costs between June 1 of the calendar year immediately preceding and June 1 of the current calendar year, based on the Engineering News-Record Construction Costs Index, without further action of the City Council.

Section 11. Subsequent Analysis of the Fees:

The fees established herein are adopted and implemented by the Council in reliance on the comprehensive study that has been prepared by the City and the consultants to the City. During the coming years, the City will continue to gather additional information that may affect the type and timing of improvements, changes in the cost of construction, and other information that may change the fee calculations. Notwithstanding any term or condition of any land use entitlement granted by the City, it is existing policy that the City Council may revise the fees to incorporate the findings and conclusions of further studies and any revisions in the City’s General Plan or Downtown Specific Plan, as well as an increase due to inflation and increase due to construction costs, and that such revisions shall apply to any prior approved projects.

Section 12. Effective Date of Revised Fees:

The fees provided in this Resolution shall be effective on October 26, 2003, which is at least sixty (60) days after the adoption of this Resolution; provided, however, that, upon enactment of this Resolution, the City may request voluntary compliance with the adopted fees or place it as a condition of a project’s approval.

Section 13. Severability:

Each component of the In Lieu Parking Fees and all portions of this Resolution are severable. Should any individual component of the fee or other provision of this Resolution be adjudged to be invalid and unenforceable, the remaining provisions shall be and continue to be fully effective, and the fee shall be fully effective except as to that portion that has been judged to be invalid.

Section 14. Exemption from California Environmental Quality Act (CEQA):

The City Council finds that CEQA does not apply to the adoption of this Resolution, pursuant to Sections 15061 and 15273 of the State CEQA Guidelines because:

A. The Fees established by this Resolution will be collected for the purposes of obtaining funds for capital projects necessary to maintain the current levels of service within existing service areas to serve new development as foreseen and identified in the City’s General Plan.

B. To the extent that any fees authorized by this Resolution will be used to fund new facilities, the construction of those facilities will not take place until there has been CEQA review of the development projects which will pay the fees, and the construction of each public facility will be subject to CEQA review. Therefore, it can be seen with certainty that the adoption of this Resolution establishing public facilities fees will not have a significant effect on the environment.

Section 15. Statute of Limitations:

Any judicial action or proceeding to attack, review, set aside, void, or annul the fees established by this Resolution shall be commenced within one hundred twenty (120) days of the passage of this Resolution. Any action to attack an increase adopted pursuant to Sections 10 or 11 shall be commenced within one hundred twenty (120) days of the increase.

Section 16. Amend Resolutions:

The City’s Master Fee Resolution No. 2366 is hereby amended to add the In Lieu Parking Fees adopted by this resolution, as set forth in Exhibit ‘A.’

Resolution No. 2366 is hereby amended by revising the City of Brentwood 2002 Development Fee Program to include In Lieu Parking Fees as set forth in Exhibit ‘A.”

PASSED, APPROVED AND ADOPTED this 26th day of August, 2003 by the following vote:

EXHIBIT A

Land Use Fee

Residential
One space shall be located on site and any additional space off site shall be $5,000 per required parking space.

Retail/Commercial $5,000 per space

Office $10,000 per space for First Floor square ft. $ 5,000 per space for Second Floor sq. ft.
$ 2,500 per space for Third Floor sq. ft.
 

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