HomeMy WebLinkAboutAGENDA REPORT 2018 0606 CCSA REG ITEM 09ECITY OF MOORPARK,
CALIFORNIA
City Council Meeting
of June 6, 2018
ACTION Approved staff
recommendation
BY M. Benson
Consider Approval of Scenario C Allocating Park Improvement Fees Received from
Development Projects Outside the Prevailing Zones and Authorizing the Necessary
Accounting Entries to Correct the Distribution of Fees Among the Park Improvement
Zone Funds. Staff Recommendation: 1) Approve the changes to the distribution of
Park Improvement Funds as described in Scenario C of thi s report; and 2) Direct the
Finance department to process the necessary entries to correct the revenue distribution
among the Park Improvement Funds.
Item: 9.E.
MOORPARK CITY COUNCIL
AGENDA REPORT
TO: Honorable City Council
FROM: Jeremy Laurentowski, Parks and Recreation Director
DATE: May 23 , 2018 (CC Meeting of 06/06/18)
SUBJECT: Consider Approval of Scenario C Allocating Park Improvement Fees
Received from Development Projects Outside the Prevailing Zones
and Authorizing the Necessary Accounting Entries to Correct the
Distribution of Fees Among the Park Improvement Zone Funds
BACKGROUND
In 2000, the City Council approved changes to the Park Improvement Zones (Zones)
from six Zones, which included a Community Wide Zone, to three Zones. The changes
included the following three geographical areas: 1. Central Zone, which includes the
downtown area north of Los Angeles Avenue and most of the area west of the 23
freeway; 2. South Zone, which includes all areas south of Los Angeles Avenue; and 3.
East Zone, which includes the area north and east of the 23 freeway. The changes to
the Zones excluded the properties north of Los Angeles and west of Walnut Canyon, as
it was anticipated that future development in these areas would be addressed at a later
date.
The Zones were originally established by the City Council in 1986 to account for the
collection of park fees in lieu of land dedication, consistent with the Quimby Act
requirement for residential subdivisions. The state requirements for the expenditure of
in-lieu park fees are: 1. they must be expended to benefit residents of the subdivision;
and 2. be obligated within five years of receipt. The decision to reduce the number of
Zones was based on the fact that Moorpark residents utilize many of the parks
throughout the City and reducing the number of zones would provide a benefit to a
larger number of parks within certain Zone boundaries. In 1985, the City Attorney
advised the City Council that in order to meet obligation 1 above, the City could spend
the funds on either community facilities, or for a park that serves the residents of the
particular subdivision where the fees were derived. The City also collects park fees on
residential rental projects as part of development agreements, and $0.50/square foot for
commercial, industrial, and institutional buildings (unless exempt).
Item: 9.E.
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There are projects remaining both north and south of Los Angeles Avenue that will
provide future funding for various park improvements. These funding sources, together
with the Quimby requirements, comprise the City’s Park Improvement Fund. The City
Council adopted Policy 6.8, Allocation of Park Improvement Fee Payments, in which
60% of the fees collected in the Park Improvement Fund would be used for
neighborhood park facilities and 40% for community park facilities. Community park
facilities are park facilities that benefit the entire City as a whole and typically would
include projects at Arroyo Vista Community Park (AVCP), or other projects that provide
equal benefit to all Moorpark residents.
On November 15, 2017, the City Council approved additional changes to the Park
Improvement Zone boundaries. The changes included reducing the number of Zones
from three Zones to two Zones, while still maintaining a Community Wide Zone. As the
City is nearing build-out, there are limited opportunities to fund new park improvements
from new developments, particularly within some of the older City neighborhoods.
Reducing the number of park Zones from three to two allows the City greater ability to
serve some of the older neighborhoods in Moorpark, while still maintaining funding for
projects that benefit the community as a whole.
The City Council approved a Zone distribution in a north and south orientation, as
shown in Attachment 1, with Los Angeles Avenue shown generally as the Zone
boundary. This option allowed for future funding opportunities for areas north of Los
Angeles Avenue due to future planned development projects in this area of the City,
while still allowing some future funding opportunities for parks south of Los Angeles
Avenue. The following is a list of current and proposed development projects that would
provide funding through the Park Improvement Fund for future park improvement
projects. The list is not all inclusive and is subject to change.
Future Development Projects - Park Zone I (North):
• Hitch Ranch Development (Hitch Ranch Owners)
• Essex Apartment Project (Essex Portfolio)
• Meridian Hills build-out (K. Hovnanian)
• Moorpark 150 LLC (City Ventures)
• Green Isla Vistas (Grand Moorpark)
• Canyon Crest (Birdsall/Jones)
• Everett Street Apts/Condominiums (Chiu)
• Casey Road Senior Housing (Aldersgate Investments/Mansi)
• Moorpark 67 (Rasmussen)
Future Development Projects - Park Zone II (South):
• Pacific Communities (single-family homes)
• Spring Road Condominiums (Duncan/Ashley
When staff presented this report to the City Council in 2017 there was an aggregate
total of $2,435,837.09 in the Park Improvement Funds to fund certain improvement
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projects. Additionally, Resolution No. 2017-3656 was approved by the City Council on
December 6, 2017. The Resolution renamed the Park Development Fund for Zone 1
(2011) to Park Improvement Zone 2017-1 Fund (2011), and the Park Development
Fund for Zone 3 (2013) to Park Improvement Zone 2017-2 Fund (2013). All assets,
liabilities and fund balances for Park Development Fund Zone 2 (2012) were transferred
to Fund (2011) and Fund (2012) was closed.
As mentioned previously City Council Policy 6.8 requires that 60% of the fees collected
in the Park Improvement Fund are used for neighborhood park facilities and 40% for
community park facilities. Subsequent to the changes to the Zones, staff became
aware of several inconsistencies related to the distribution of Park Improvement fees.
On two occasions, the City Council approved staff’s recommendation to allocate 100%
of the park fees collected from developers to the Community Wide Park Improvement
Fund 2010 (Community Wide Fund): Archstone Communities (Item 10D CC Mtg
12/6/2000) and Vintage Crest Apartments (Item 9C CC Mtg 10/16/2002). However,
since the year 2000, fees from eight additional development projects were also credited
100% to Community Wide Fund. It appears that the inconsistency was related to the
fact that the changes to the Zone boundaries that were approved by the City Council in
2000 did not address these development projects, and it was assumed that the zone
boundaries would be revised at a future date to include them within a new or revised
zone boundary. The recent changes to the zone boundaries that were approved by the
City Council in 2017 include these development projects, as well as all other current and
future development projects, but did not address the inconsistencies in the distribution
of the park fees to the various funds.
DISCUSSION
To correct the inconsistences with the park fee distribution, staff is seeking City Council
approval of one of three Fund distribution scenarios. Scenario A is to approve the fund
distribution with 100% of the park fees distributed into the Community Wide Fund.
Scenario B is to distribute the funds based on Policy 6.8. Scenario C is a combination
of the two. The scenarios are discussed in more detail below.
Scenario A: As mentioned previously, since the year 2000 the City received $7,115,442
in park fees from development projects that were located outside the established Zones
and credited 100% of these fees to the Community Wide Fund. This scenario maintains
the full distribution of park fees associated with these development projects to the
Community Wide Fund. However, several development projects that were located
within established Zones, such as the Moorpark Highlands (Pardee Tracts 5133 and
5425), were also distributed 100% to the Community Wide Fund. Staff recommends
reallocating the park fees associated with these development projects per Policy 6.8.
Since these projects were within defined Zone boundaries, the park fees should have
been distributed accordingly. This distribution ultimately reduces the current fund
balance in the Community Wide Fund by approximately $323,560, resulting in a
proposed fund balance of $1,823,010. Additionally, it allows for a reduction in the Zone
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1 deficit, and allows for a proposed fund balance of approximately $429,488 in Zone 2.
A description showing the implementation of this scenario is shown below in table 1A.
Committing 100% of the park fees from development projects that were located outside
established Zone boundaries to the Community Wide Fund will result in a reduction of
approximately $4,269,265 to the other Zones. Since the collection of these fees,
several capital projects have been funded by the Community Wide Fund, such as the
construction of tennis courts at AVCP ($202,633), AVCP Phase II Expansion, Restroom
and Concession Building, and Gym ($5,135,216), and the AVCP Loop Trail
($1,984,986). As mentioned previously, the state requirements for the expenditure of
in-lieu park fees are: 1. they must be expended to benefit residents of the subdivision;
and 2. be obligated within five years of receipt. In 1985, the City Attorney advised the
City Council that in order to meet obligation 1, the City could spend the funds on either
community facilities, or for a park that serves the residents of the particular subdivision
where the fees were derived. Therefore, the City Council has the authority to make
recommendations regarding the distribution of park fees and has changed the
distribution identified in Policy 6.8 on two separate occasions.
It should also be noted that the fund balance for the Park Improvement Fund for Zone 1
has a negative fund balance. This is due to the fact that the Poindexter Park expansion
project, excluding the construction of the skate park, was funded by a loan from the
Special Projects Fund. The negative fund balance is reflective of the remaining balance
on the $1,500,000 loan. The cost to construct the skate park was funded by the
Community Wide Fund due to the fact the skate park provides a community benefit to
the City as a whole.
(Table 1A) – Scenario A Description
Fund
Per Books
(current)
Per Calculation
(proposed park
fee distribution)
Proposed
Adjustments
Fund Balance
Surplus / (Deficit)
(current)
Fund Balance
Surplus / (Deficit)
(proposed)
Community Wide Park
Devt Fund (2010)$10,336,306.17 $10,012,745.53 ($323,560.64)$2,146,570.78 $1,823,010.14
Park Devt Fee Zone 1
(2011)$975,742.58 $1,154,728.18 $178,985.60 ($325,018.09) ($142,600.19)
Park Devt Fee Zone 2
(2012)*$23,500.43 $26,932.73 $3,432.30
Park Devt Fee Zone 3
(2013) (New Zone 2)$913,172.05 $1,044,789.79 $131,617.74 $288,346.24 $429,488.98
Park Devt Fee Zone 4
(2114)♦$52,106.04 $61,631.04 $9,525.00
TOTAL $12,300,827.27 $12,300,827.27 ($0.00)$2,109,898.93 $2,109,898.93
* This fund has been closed and assets transferred to Zone 1 per Resolution No. 2017-3656.
Proposed adjustment reflected in Fund 2011.
♦ This fund has been closed and assets transferred to Zone 3 per item 10D CC mtg 12/6/2000.
Proposed adjustment reflected in Fund 2013.
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Scenario B: Distribute the park fees based on the percentages identified in Policy 6.8,
except for Archstone Communities and Vintage Crest Apartments. As mentioned
previously, the City Council approved staff’s recommendations to allocate 100% of the
park fees collected from Archstone Communities (12/6/2000 Item 10D) and Vintage
Crest Apartments (10/16/2002 Item 9C) to the Community Wide Fund. Both of these
development projects were located south of Los Angeles Avenue in the previously
defined Zone 3 boundary, now Zone 2. It was determined that since both of these
projects were in close proximity to Arroyo Vista Community Park (AVCP), which was
also located in the previously defined Zone 3 boundary, they would receive a direct
benefit from several projects planned at AVCP at that time. The park fees were
approved by the City Council to be utilized for the phase II expansion of AVCP and the
addition of a restroom facility.
This scenario will cause a $2.4 million deficit in the Community Wide Fund. It will
payback 100% of the Zone 1 loan, allowing for a proposed fund balance of
approximately $4,149,345 in Zone 1, and allow for a proposed fund balance of
approximately $429,488 in Zone 2. A description showing the implementation of this
scenario is shown below in table 1B.
Table 1B – Scenario B Description
Fund
Per Books
(current)
Per Calculation
(proposed park
fee distribution)
Proposed
Adjustments
Fund Balance
Surplus / (Deficit)
(current)
Fund Balance
Surplus / (Deficit)
(Proposed)
Community Wide Park
Devt Fund (2010)$10,336,306.17 $5,720,800.03 ($4,615,506.14)$2,146,570.78 ($2,468,935.36)
Park Devt Fee Zone 1
(2011)$975,742.58 $5,407,163.98 $4,431,421.40 ($325,018.09)$4,149,345.31
Park Devt Fee Zone 2
(2012)*$23,500.43 $66,442.43 $42,942.00
Park Devt Fee Zone 3
(2013) (New Zone 2)$913,172.05 $1,106,420.83 $193,248.78 $288,346.24 $429,488.98
Park Devt Fee Zone 4
(2114)♦$52,106.04 $0.00 ($52,106.04)
TOTAL $12,300,827.27 $12,300,827.27 $0.00 $2,109,898.93 $2,109,898.93
* This fund has been closed and assets transferred to Zone 1 per Resolution No. 2017-3656.
Proposed adjustment reflected in Fund 2011.
♦ This fund has been closed and assets transferred to Zone 3 per item 10D CC mtg 12/6/2000.
Proposed adjustment reflected in Fund 2013.
Scenario C: This scenario includes the same distribution as in Scenario A, with the
exception of the park fees received from the most recent development project, Toll
Brothers T5463. Park fees totaling $1,024,075 were received from July, 2015 through
June, 2017. This scenario distributes the fees received from the Toll Brothers project
60% to Fund 2011 and 40% to Fund 2010 per Policy 6.8. This will allow for a proposed
fund balance of $1,208,565 in the Community Wide Fund and a proposed fund balance
of $471,845 in Zone 1. As in the other scenarios, this will also allow for a proposed fund
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balance of approximately $429,488 in Zone 2. A description showing the
implementation of this scenario is shown below in table 1C.
Table 1C – Scenario C Description
Fund
Per Books
(current)
Per Calculation
(proposed park
fee distribution)
Proposed
Adjustments
Fund Balance
Surplus / (Deficit)
(current)
Fund Balance
Surplus / (Deficit)
(proposed)
Community Wide Park
Devt Fund (2010)$10,336,306.17 $9,398,300.53 ($938,005.64)$2,146,570.78 $1,208,565.14
Park Devt Fee Zone 1
(2011)$975,742.58 $1,769,173.18 $793,430.60 ($325,018.09)$471,844.81
Park Devt Fee Zone 2
(2012)*$23,500.43 $26,932.73 $3,432.30
Park Devt Fee Zone 3
(2013) (New Zone 2)$913,172.05 $1,044,789.79 $131,617.74 $288,346.24 $429,488.98
Park Devt Fee Zone 4
(2114)♦$52,106.04 $61,631.04 $9,525.00
TOTAL $12,300,827.27 $12,300,827.27 ($0.00)$2,109,898.93 $2,109,898.93
* This fund has been closed and assets transferred to Zone 1 per Resolution No. 2017-3656.
Proposed adjustment reflected in Fund 2011.
♦ This fund has been closed and assets transferred to Zone 3 per item 10D CC mtg 12/6/2000.
Proposed adjustment reflected in Fund 2013.
Staff recommends that the City Council approve Scenario C, as this scenario allows for
positive fund balances in all the Park Improvement Funds, pays off the Zone 1 loan due
to the Poindexter Park Expansion Project, and allows for the consideration of several
projects in Zone 1 that will need to be addressed in the near future, such as replacing
the restroom building at Campus Park. In the future, unless there is a special condition
approved by the City Council regarding a particular development project, the park fees
will be distributed per Policy 6.8.
Funding through the Park Improvement Fund is one-time money and will only be
replenished by future development projects within the City. At the City’s current
projected build-out, staff estimates that there will be approximately $22,000,000 more
funding from park fees to fund future park improvement projects through the Park
Improvement Funds. A separate staff report will be presented to the City Council
regarding a seven year Capital Improvement Program (CIP) for the Parks, Recreation,
and Community Services Department and Public Works Department. It is anticipated
that a large portion of the park projects listed in the CIP could be funded with future
funding from the Park Improvement Funds.
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FISCAL IMPACT
Scenario A will allow for a fund balance of approximately $1,823,010 in the Community
Wide Fund; a negative fund balance of $142,600 in Zone 1; and a fund balance of
approximately $429,488 in Zone 2.
Scenario B will allow for a negative fund balance of approximately $2,468,935 in the
Community Wide Fund; $4,149,345 in Zone 1; and a fund balance of approximately
$429,488 in Zone 2.
Scenario C will allow for a fund balance of approximately $1,208,565 in the Community
Wide Fund; $471,845 in Zone 1; and a fund balance of approximately $429,488 in Zone
2.
STAFF RECOMMENDATION (Roll Call Vote)
1. Approve the changes to the distribution of Park Improvement Funds as described in
Scenario C of this report; and
2. Direct the Finance department to process the necessary entries to correct the
revenue distribution among the Park Improvement Funds.
Attachments:
1. Current Park Improvement Zones
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