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HomeMy WebLinkAbout01 RES NO 12-27 - OLD TOWN PARKING EXCEPTION FEE- AGENDA IRVIETORT MEETING DATE: APRIL 17, 2012 TO: JEFFREY C. PARKER, CITY MANAGER FROM: COMMUNITY DEVELOPMENT DEPARTMENT Agenda Item Reviewed: City Manager Finance Director SUBJECT: RESOLUTION NO. 12 -27 (OLD TOWN PARKING EXCEPTION FEE AUTHORIZED BY ORDINANCE NO. 1416) SUMMARY: �r On March 20, 2012, the Tustin City Council unanimously approved first reading, and on April 3, 2012, adopted Ordinance No. 1416 to supplement Tustin City Code Section 9252j3(d)(3) by establishing a new parking exception option that would allow all or a portion of an Old Town infill development project's required on -site parking spaces to be met through the payment of an annual fee intended to compensate the City for the proportional use and maintenance of public parking spaces in the area. City Council support of Ordinance No. 1416 requires a public hearing prior to the subsequent establishment of the new annual parking maintenance fee. As proposed for City Council consideration in Resolution No. 12 -27, the annual maintenance fee would be $60.00 per space. RECOMMENDATION: That the City Council conduct a public hearing on the matter, and adopt Resolution No. 12 -27 establishing an annual parking maintenance fee of $60 per space, as authorized by Ordinance No. 1416 (Attachment A). APPROVAL AUTHORITY Proposed Resolution No. 12 -27 complies with the Mitigation Fee Act (Government Code § 66001(a)), which authorizes the City Council to establish, increase, or impose a development impact fee with the following findings: 1. Identify the purpose of the fee; 2. Identify how the fee will be used; 3. Determine how a reasonable relationship exists between the fee's use and the type of development project on which the fee is imposed; and 4. Determine how a reasonable relationship exists between the need for the public facility and the type of development project on which the fee is imposed. FISCAL IMPACT: If approved, Resolution No. 12 -27 would establish an annual parking maintenance fee at $60 per space. Resolution No. 12 -27 April 17, 2012 Page 2 Currently, the Orange County Library pays a fee to the City of Tustin for the maintenance of the City Hall parking spaces utilized by the Tustin Library. The County pays a proportional share (35 %) of the landscape maintenance, water, hardscape maintenance, striping, parking lot sweeping, etc. within the library's plaza and parking areas. The last quarterly invoice for the maintenance of these areas (excluding the leased premises) was $2,648 for the period October to December. If extrapolated to an annual cost ($10,592) and divided by the 191 spaces assigned to the library (178 public and 13 staff), the total cost is $55 per space, annually. As proposed, Ordinance No. 1416 would allow an Old Town developer to request the waiver of onsite parking spaces and subsequent use of a proportional number of public street or lot parking spaces. Unlike the library parking lot (which is an exclusive use), an Old Town public parking space can be shared among many different businesses on any particular day. Shared usage of the same parking space in Old Town could mean a lower percentage use than the library (assumed 33% usage), for a basic fee amount of $54 per space waived. City administrative costs (10 %) and fee collection costs applied by the County Assessor (0.3 %), result in a total proposed annual fee of $60 per space. Once established by the City Council, the fee can be reevaluated or adjusted based on analysis and in conjunction with the periodic adoption of the City's Comprehensive Fee Schedule. BACKGROUND: On March 20, 2012, the Tustin City Council unanimously approved first reading, and on April 3, 2012, adopted Ordinance No. 1416 to supplement Tustin City Code Section 9252j3(d)(3) by establishing a new parking exception option that would allow all or a portion of an Old Town infill development project's required on -site parking spaces to be met through the payment of an annual fee intended to compensate the City for the proportional use and maintenance of public parking spaces in the area. City Council support of Ordinance No. 1416 requires a public hearing prior to the subsequent establishment of the new annual parking maintenance fee. The fee would be assigned to the property's tax assessment to ensure continuous payment over the years should property ownership change. As proposed for City Council consideration in Resolution No. 12 -27, the annual maintenance fee is $60.00 per space ($54.00 plus $6.00 administrative overhead and County Assessor processing). As provided in Ordinance No. 1416, the new option does not provide exclusive use of any public parking spaces in Old Town, and the proposed fee is not intended to reflect the full cost of maintaining those parking spaces. In addition, it should be considered that the new parking fee option is not the same concept as the in lieu parking option, which is another parking option offered to developers in Old Town. The in lieu parking option cost (recently estimated at approximately $18,000 per parking space) is required to include four times the assessed land value as calculated by Successor Agency staff. A growing number of cities are similarly confronted with the obstacle to new infill development or intensification of use that parking regulations can impose on older commercial areas. Some cities are beginning to charge a fair market price for the use and maintenance of public street parking and lot parking when onsite parking spaces are being waived. Fullerton, for example, determined that the City provided an abundance of public parking lots and structures for their old town area, and lowered their parking fee to $0 for infill development or intensification of uses (i.e. a restaurant replacing an office use). Another example of a similar low -fee program is the City of Pasadena, which currently assesses $146.53 per space per year in their old town area. After many years, Newport Beach recently suspended their program to reassess their fee of $150 per year after business complaints that the fee was too high. Resolution No. 12 -27 April 17, 2012 Page 3 ANALYSIS Staff has prepared a fee calculation that recovers a proportion of the City's cost to maintain a public parking space in Old Town (Attachment 1 to Resolution No. 12 -27). The Mitigation Fee Act (Government Code § 66001(a)), authorizes the City Council to establish, increase, or impose a development impact fee with four findings (identified in "Approval Authority," above). The following discussion is provided to support a City Council determination that the proposed fee meets the required findings: 1) Identify the purpose of the fee. The purpose of the fee is to compensate the City for the proportional use and maintenance of public streets or lot parking areas, as authorized by Ordinance No. 1416. The City Council approved a comprehensive Old Town Parking Study which included a parking survey of the Old Town commercial area and found that a significant number of available public parking spaces exist in the area. Acquisition of additional public parking areas is not necessary at this time. The past. practice of approving "no- cost" parking leases or in -lieu fee waivers provides no offset for maintenance costs assumed by the City for public parking facilities utilized for private purposes. Ordinance No. 1416 established a new parking exception option that allows all or a portion of a project's required on -site parking spaces to be met through the payment of an annual $60 fee intended to compensate the City for the proportional use and maintenance of public parking. 2) Identify how the fee will be used. The fee will be used to offset the City's cost in performing routine maintenance of public street and lot parking areas in Old Town (including street sweeping, repair, landscape maintenance, etc.). 3) Determine how a reasonable relationship exists between the fee's use and the type of development project on which the fee is imposed. New development in Old Town may meet the City's parking requirements by providing required parking onsite or in any other manner provided by the Code. Ordinance No. 1416 established a new parking exception option that allows a project's required on -site parking spaces to be met through the payment of an annual $60 fee intended to compensate the City for the proportional use and maintenance of public parking. It is reasonable that a private developer authorized to utilize a public street or lot for private parking purposes compensate the City for the use and maintenance of that parking. The proportional cost to maintain an Old Town public parking space has been determined to be similar to the current actual cost of maintaining City parking facilities, landscaping, paving, etc., for County of Orange use of the City of Tustin's parking for the Tustin Library. 4) Determine how a reasonable relationship exists between the need for the public facility and the type of development project on which the fee is imposed. The implementation of the parking option provided in Ordinance No. 1416 will occur only upon a developer's request, and subsequent approval by the City. It is reasonable that the City receive compensation for the use and maintenance of any parking spaces approved to be located on an Old Town public street or lot. Resolution No. 12 -27 April 17, 2012 Page 4 PUBLIC NOTICE A public notice was printed in the Tustin News on April 5 and 12, 2012. Information on the proposed fee was made available for the public to view on April 6. No communications were received on this item as of the date of the preparation of this staff report. ENVIRONMENTAL ANALYSIS Pursuant to Section 15378(b)(3), the establishment of a fee by Resolution No. 12 -27 is not a project, as defined by the California Environmental Quality Act (CEQA), and is therefore exempt from environmental review. zgZ- . 9 06— Tor Dana L. Ogdori AICP Assistant Director S: \Cdd \mrepore \pa rk i ngfeereso I utio n.doc Attachment A Resolution No. 12 -27 Attachment 1: Fee Calculation Elizabeth A. Binsack Director of Community Development Attachment A RESOLUTION NO. 12 -27 A RESOLUTION OF THE TUSTIN CITY COUNCIL ESTABLISHING AN ANNUAL FEE FOR THE USE AND MAINTENANCE OF PUBLIC PARKING IN OLD TOWN TUSTIN AS AUTHORIZED BY ORDINANCE NO. 1416 The City Council of the City of Tustin does hereby resolve as follows: The City Council finds and determines as follows: A. That on June 20, 1988, the Tustin City Council adopted Ordinance No. 1001 providing three parking options to assist the development of new projects in Old Town without the provision of all required onsite parking. B. That on February 19, 2008, the Tustin City Council approved a comprehensive Parking Study for Old Town Tustin which found that Old Town Tustin's existing parking supply is not heavily utilized, and that there is significant public parking available. C. That the acquisition of additional public parking areas is not necessary at this time. And, "no- cost" leases and in -lieu waivers utilized in the past provide no offset for maintenance costs assumed by the City for public parking facilities utilized for private purposes. D. That on April 3, 2012, the Tustin City Council approved Code Amendment 2012- 002 by adopting Ordinance No. 1416 creating a fourth parking option to foster economic development, create jobs, and increase the number of persons shopping and working in Old Town Tustin. That implementation of Ordinance No. 1416 requires the establishment of a fee to reimburse the City of Tustin for the use and maintenance of public street and lot parking facilities in Old Town needed to substitute for all or a portion of a private development project's waived onsite parking requirement (including street sweeping, street repair, landscape maintenance, etc.). F. That the purpose of the fee is to compensate the City for the proportional use and maintenance of public streets or lot parking areas, as authorized by Ordinance No. 1416. The City Council approved a comprehensive Old Town Parking Study which included a parking survey of the Old Town commercial area and found that a significant number of available public parking spaces exist in the area. Acquisition of additional public parking areas is not necessary at this time. The past practice of approving "no- cost" parking leases or in -lieu fee waivers provides no offset for maintenance costs assumed by the City for public parking facilities utilized for private purposes. Ordinance No. 1416 establishes a new parking exception option that allows all or a portion of a project's required on -site parking spaces to be met through the payment of an annual fee intended to compensate the City for the proportional use and maintenance of public parking. Resolution No. 12 -27 Establishing Annual Parking Fee Page 2 G. That a fee amount would be used to compensate City's cost in performing routine maintenance of public street and lot parking areas in Old Town (including street sweeping, repair, landscape maintenance, etc.). H. That a reasonable relationship exists between the fee's use and the type of development project on which the fee is imposed in that new development in Old Town may meet the City's parking requirements by providing required parking onsite or in any other manner provided by the Code. Ordinance No. 1416 would establish a new parking exception option that allows all or a portion of a project's required on -site parking spaces to be met through the payment of an annual fee intended to compensate the City for the proportional use and maintenance of public parking. It is reasonable that a private developer authorized to utilize a public street or lot for private parking purposes to compensate the City for the use and maintenance of that parking. The proportional cost to maintain an Old Town public parking space has been determined to be similar to the current actual cost of maintaining City parking facilities, landscaping, paving, etc., for County of Orange operation of the Tustin Library; $54 per space, with City administrative costs (10 %) and fee collection costs applied by the County Assessor (0.3 %), resulting in a total proposed annual fee of $60 per space waived (see Attachment 1 for fee calculation). A reasonable relationship exists between the need for the public facility and the type of development project on which the fee is imposed in that the implementation of the parking option provided in Ordinance No. 1416 would occur only upon a developer's request, and subsequent approval by the City. It is reasonable that the City receive compensation for the use and maintenance of any parking spaces approved to be located on an Old Town public street or lot. II. Therefore, the Tustin City Council hereby determines that the parking fee authorized by Ordinance No. 1416 shall be $60 per parking space per year. PASSED AND ADOPTED at a regular meeting of the Tustin City Council held on the 17'� day of April, 2012. JOHN NIELSEN MAYOR ATTEST: PAMELA STOKER CITY CLERK Resolution No. 12 -27 Establishing Annual Parking Fee Page 3 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) CERTIFICATION FOR RESOLUTION NO. 12 -27 PAMELA STOKER, City Clerk and ex- officio Clerk of the City Council of the City of Tustin, California, does hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and foregoing Resolution No. 12 -27 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 17'" day of April, 2012, by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: PAMELA STOKER, CITY CLERK Attachment 1 Estimated Cost of Maintenance of a Public Parking Space Long -Term Public Parking Improvement Cost Assumptions: 1. Parking stall is 24 ft. long by 8 ft. (street) or 20 ft. long by 8 ft. wide (parking lot). The larger (street) totals 192 s.f. Actual utilization of public street or drive aisles (lot) not included in calculations. 2. Unit cost of 2 inch cold milling (grinding) asphalt Is $0.15 per s.f. 3. Unit cost of asphalt compacted in place is $90 per ton 4. Unit cost of slurry seal is $0.25 per s.f. 5. Unit cost to remove and replace curb is $50 per foot 6. 2 inch grind and asphalt overlay at 21 year intervals 7. Replace 10% of curb at 21 year intervals 8. Slurry seal at 7 year intervals Calculations The above unit costs result in the following costs of pavement maintenance per 192 s.f. stall for each application: 1. 2 inch cold milling @ $0.15 per s.f. _ $28.80 2. 2 inch asphalt overlay: 2.45 ton per stall @ $90 per ton = $220.32, 3. Replace 2.5 ft. of curb @ $50 per ft. _ $125 4. Slurry seal @ $0.25 per s.f. _ $48.00 Conclusions Over a period of 28 years the following maintenance schedule would apply: Years No. 1 & 21: 2 inch grind, asphalt overlay and curb repair @ $375 per stall (items 1, 2, and 3 above) per application for a total of $750. Years No. 7, 14 and 28 slurry seal @ $50 per stall (item 4, above) per application for a total of $150. Total Long -Term Public Parking Improvement Cost per stall over a 28 year period: Subtotal Cost $ 30.00 $220.00 $125.00 $ 50.00 Total Cost $750.00 +$150.00 $900.00 Total Long -Term Public Parking Improvement Cost Per Stall ($900128 years): $32.14 per year. Maintenance Costs' Assumptions /Calculations 1. Landscape Maintenance @ $1,633.72/157 spaces 2. Irrigation (water) @ $654.16/157 spaces 3. Tree Trimming @ $15.75/per tree /10 %/7 years 4. Hardscape @ $40.84/157 spaces 5. Sweeping @ $15.14 /perspace /33% 6. Striping @$ 24.25 /per space /7 years Electrical (None) Difference between Library proportional share (35 %) and proposed private proportional use (estimated at 33 %) Cost $10.41 $ 4.17 $ 0.23 $ 0.26 $ 5.00 $ 3.46 0.00 $23.53 1.41 TOTAL $22.12 Total Maintenance Costs Per Stall., $12.11 per year. Grand Total Long -Term Public Parking Improvement and Maintenance Costs ($32.14 +$22.12) Per Stall = $54.26 Per Year. City Administrative Cost (10 %) = $ 5.43 County Assessor Cost (0.3 %) = $0.18 - Note, fees required by the County Assessor for the collection of the proposed City parking fee is an estimate only. The County fee is not set by the City of Tustin, is subject to change, and is in addition to the total recommended fee below. TOTAL RECOMMENDED FEE: $60.00 ' Source. 2009 Tustin Library Lease between the City of Tustin and the County of Orange, and extrapolation from costs associated with maintenance of the library parking lot as taken from the last quarterly invoice (October to December). Notes: A. The costs described in this estimate are for the non - exclusive use of parking spaces as identified in the Old Town Parking Study and include use of public on- street parking spaces, the City's parking structure, the City's public water yard parking facility, etc. B Pursuant to an agreement between the County of Orange and City of Tustin, the County pays a proportionate 35% share of the total costs to maintain the public parking area at the Tustin Library. Maintenance costs for the proportional use of Old Town public parking spaces could be similar. The cost assumptions used above were taken from that agreement, with certain exceptions noted which were not believed to be fully applicable to this study. C All existing, available public spaces are currently being swept and are fully funded. However, the proposal to collect $5.00 annually for street sweeping is intended to address the incremental soiling of a parking space, or to address storm water quality issues that may apply with the additional use allowed by Ordinance No. 1416. D. Electrical costs are incurred and paid for through a separate process by property owners in the area. The use of an existing public parking space in Old Town, as authorized by Ordinance No. 1416, would not place an additional electrical cost burden on the community. This issue could be looked at in the future, as needed. E. The County of Orange has agreed to pay 35% of the costs associated with the use of the City's public parking area. The current study assumed only 33% usage of public parking spaces as authorized by Ordinance No. 1416. Consequently, the overall cost assumptions were reduced to address this proportional difference in use.