City Council Agenda
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Memo to: |
Manteca City Council |
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From: |
Brandy Clark, Director of Parks, Recreation & Transit |
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Prepared by: |
Brandy Clark, Director of Parks, Recreation & Transit Brad Wungluck, Director of Development Services Michael Rosales, Park Planning and Development Manager |
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Date: |
August 18, 2026 |
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Subject: |
Conduct a public hearing and adopt a resolution adopting the Park Impact Fee Nexus Study and Park Impact Fees |
Recommendation:
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Conduct a Public Hearing and consider adopting a Resolution:
1. Adopting the August 2026 Park Dedication and In-Lieu Fee and Park Acquisition and Improvement Fee Nexus Study.
2. Adopting the Park Acquisition and Improvement Fee Project List (Capital Improvement Plan), pursuant to Government Code sections 66016.5 and 66002.
3. Adopting updated Park Dedication and In-Lieu Fees and Park Acquisition and Improvement Fees.
4. Directing staff to implement the updated fees effective January 1, 2027, including the phased implementation schedule.
5. Waive the first reading by substitution of the title and introduce an ordinance of the City Council of the City of Manteca State of California repealing and replacing Chapter 3.20 of the Manteca Municipal Code, entitled “Park Acquisition and Improvement Fees”, and adding Chapter 3.21, of the Manteca Municipal Code entitled “Park Dedication and In-Lieu Fees”.
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Background:
The City of Manteca has experienced sustained residential growth, increasing demand for neighborhood and community parks, trails, recreational amenities, and other public park facilities. Maintaining the City's adopted level of park service as the community grows requires continued investment in land acquisition and park development.
The City established its Park Acquisition and Improvement Fee Program in 1988 to ensure that new residential development contributes its proportionate share toward the capital costs of parks facilities needed to serve future residents. The program was updated in 1999, indexed utilizing the Engineering News Record Construction Cost Index in 2003, and comprehensively revised in 2016.
Since the 2016 update, the City has adopted an updated General Plan and the Parks and Recreation Master Plan Update in February 2026, revised its Capital Improvement Program and long-range park planning, and updated its population and housing projections. Land acquisition, construction, and park development costs have also increased substantially. Additionally, Assembly Bill 602 and other changes in State law established new requirements for calculating, documenting, and administering development impact fees.
To address these changes and maintain compliance with State law, the City retained Harris & Associates to prepare the August 2026 Park Dedication and In-Lieu Fee and Park Acquisition and Improvement Fee Nexus Study. The Nexus Study was prepared in accordance with the Mitigation Fee Act (Government Code Sections 66000 et seq.), the Quimby Act (Government Code Section 66477), and applicable California case law.
The Nexus Study evaluates projected residential growth and the additional park facilities needed to maintain the City’s adopted standard of five acres of developed parkland per 1,000 residents. It establishes the required relationship between future development and the need for additional neighborhood, community, and special-use parks, trails, and supporting recreational improvements. It also identifies the proportionate share of eligible capital costs that may be recovered through development impact fees.
The Nexus Study identifies approximately $832 million in eligible park capital improvements needed to accommodate future growth. The City is projected to collect up to approximately $364.7 million in park impact and in-lieu fee revenue from future residential development. The remaining costs are expected to be funded through a combination of grants, Measure Q revenues, General Fund resources, developer partnerships, regional funding opportunities, and other available funding sources.
To comply with Assembly Bill 602, the updated residential impact fees are calculated on a per-square-foot basis rather than a flat fee per dwelling unit. This methodology recognizes differences in residential unit sizes and more accurately allocates anticipated demand. The updated program also distinguishes between Park Dedication and In-Lieu Fees authorized by the Quimby Act and Park Acquisition and Improvement Fees authorized by the Mitigation Fee Act, providing greater transparency regarding the purpose and legal basis of each fee.
The Nexus Study incorporates current land values, construction costs, demographic projections, and capital project estimates. It also updates the methodology for neighborhood park land dedication credits to ensure developers receive appropriate credit for qualifying improvements consistent with State law and City policy.
Because the updated fees reflect substantial increases in land and construction costs since the last comprehensive update, staff recommends phasing in the increases beginning January 1, 2027. The phased schedule allows the City to move toward full cost recovery for growth-related park costs while reducing the immediate financial impact on residential development and providing greater predictability to the development community. The proposed schedule recognizes current economic conditions while ensuring that future residents contribute their proportionate share toward the park facilities they will use.
The City worked collaboratively with the development community throughout the update process. Staff met with representatives of the Building Industry Association and several local and national homebuilders to consider their questions, concerns, and recommendations. Many of those recommendations were incorporated into the Nexus Study and proposed phasing schedule.
The City worked collaboratively with the development community throughout the update process. Staff met with representatives of the Building Industry Association and several local and national homebuilders to consider their questions, concerns, and recommendations. Many of those recommendations were incorporated into the Nexus Study and proposed phasing schedule.
Notice of the public hearing was provided in accordance with Government Code Section 66016 and all other applicable noticing requirements. The proposed Nexus Study, project list, and fee schedule were also made available for public review as required by State law.
The proposed ordinance would repeal and replace Chapter 3.20 and add Chapter 3.21 of the Manteca Municipal Code to align the City’s regulations with current State law, distinguish the two park fee programs, and clarify the application of the fees and available credits for parkland and facilities provided by developers.
PROPOSED PARK ACQUISITION AND IMPROVEMENT FEE
NOTE: Fees shown are for both Subdivision/Quimby and Non-Subdivision. See the table below and Table 3-6 Park Impact Fee Summary in the Nexus Study for further breakdown of total fee per square foot.
Fiscal Impact:
Adoption of the Park Acquisition and Improvement Fee schedule is projected to generate approximately $358.6 million over the planning horizon identified in the Nexus Study. Revenues collected will be restricted to eligible growth-related park acquisition and improvement projects necessary to serve new development, as identified in the Nexus Study and Park Acquisition and Improvement Fee Project List. Actual revenues will depend on the timing, type, and pace of future residential development.
Documents Attached:
1. Attachment 1 - Resolution
2. Attachment 2 - Exhibit A to Resolution - Park Dedication and In-Lieu Fee and Park Acquisition and Improvement Fee Nexus Study
3. Attachment 3 - Exhibit B to Resolution - Capital Improvement Plan
4. Attachment 4 - Exhibit C to Resolution - Phased Implementation Schedule - Park Acquisition and Improvement Fee
5. Attachment 5 - Parks Impact Fee Ordinance
6. Attachment 6 - PowerPoint
7. Attachment 7 - Letters of Support