(a) The city council may waive all or any portion of an impact fee required by this division, if privately supplied parks and recreation, library, general government, police or fire and rescue services provided for the sole use of the residents or occupants of a project are of such a nature as to reduce the project's impact upon the city's capital needs for expansion of that particular public service. The amount waived under the authority of this provision shall not exceed the actual cost of such facilities, or one-half of the applicable impact fee, whichever is less, credited against that category of impact fees receiving such reduced impact.

(b) The parks and recreation services impact fee reduction for a residential project shall be based upon a minimum of 35 square feet of enclosed recreation area per dwelling unit and a maximum of 200 square feet of enclosed recreation area per dwelling unit. If those conditions are fulfilled, the waiver of one-half of the parks and recreation impact fee shall be granted.