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RESOLUTION NO. 2002-59
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF HUNTINGTON BEACH ESTABLISHING THE
HOLLY-SEACLIFF AREA OF BENEFIT DISTRICT
THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH DOES HEREBY FIND,
RESOLVE AND DETERMINE AS FOLLOWS:
SECTION 1: Findings and Intent. The City Council finds as follows:
A. In December 1990, the City of Huntington Beach approved Ordinance No. 3080,
thereby entering into the Holly-Seacliff Development Agreement("Development
Agreement")with Pacific Coast Homes.
B. The Development Agreement provided for the development of a residential and
commercial project("Holly-Seacliff Project")on approximately 545 acres bounded
generally by Central Park and Ellis Avenue on the north,Huntington and Main
Streets on the east, Yorktown and Clay Avenues on the south, and the City of
Huntington Beach boundary line on the west("Holly-Seacliff Project Area").
C. The Development Agreement required that Pacific Coast Homes construct certain
traffic and circulation improvements within the Holly-Seacliff Project Area,
specifically Main, Edwards, Goldenwest and Gothard Streets,and Garfield and Ellis
Avenues(the"Arterials").
D. The Development Agreement also obliged the City to(1)determine the extent to
which these Arterials resulted in street capacity in excess of the traffic demand the
Holly-Seacliff Project created; and(2)reimburse Pacific Coast Homes for the excess
street capacity from fees or exactions from other developments that would be served
by the excess capacity.
E. In May 1996,the City consented to the sale of a portion of the Holly-Seacliff Project
to PLC, a California general partnership,and the remainder to MS Vickers, II, a
Delaware limited liability company. As part of the transfer,PLC assumed the Pacific
Coast Homes' obligation to install and pay for the public facilities required under the
Development Agreement.
F. The City and the PLC implemented the reimbursement obligation of Development
Agreement through a Settlement Agreement, dated April 17,2000, that, among other
things, limited the reimbursement obligation from property owners benefiting from
the Arterials to those parcels immediately abutting the Arterials. The amount of the
reimbursement was specifically limited to the cost of ten(10) feet of pavement,plus
curb, gutter and sidewalk,and related acquisition costs. Absent PLC's construction
of the Arterials pursuant to Chapter 255 of the Huntington Beach Zoning and
Subdivision Ordinance ("HBZSO"), the abutting property owner would have been
required to install these same improvements as a condition of the development.
Section 255.04(B) specifically requires that the frontage of each parcel be improved
02reso/Holly-SeacliffTraffic Impact/6/6/02 I
Res. No. 2002-59
to its ultimate adopted geometric section, including street structural section, curbs,
sidewalks, driveway approaches and transitions. Further, HBZSO Section 250.04
requires that all land be developed consistent with the Huntington Beach General
Plan and the Circulation Element of the General Plan.
G. The cost of ten(10) feet of pavement,plus curb, gutter and sidewalk has been
analyzed in a report entitled"Holly-Seacliff Area of Benefit District Report,"
prepared by MuniFinancial and dated March 20, 2002 ("Area of Benefit Report").
The actual cost of constructing the ten (10) feet of roadway improvements,plus curb,
gutter and sidewalk was determined to be $68.10 per linear foot of property frontage.
The Area of Benefit Report then calculates the Area of Benefit Charge to be paid by
property owners that benefit from the Arterials PLC installed. The Charge varies by
property depending upon each parcel's street frontage.
H. The City Council finds and declares that, in the absence of this Resolution
establishing the Holly-Seacliff Area of Benefit District(the "District"), existing and
future sources of revenue will not be adequate to reimburse PLC for its construction
of supplemental capacity in the Arterials. Failure to provide for reimbursement
would violate Government Code Sections 66485-66489, and Section 254.18 of the
HBZSO,both of which provide that when one developer installs improvements with
supplemental capacity, the City Council shall enter into an agreement providing for
reimbursement to the developer of the cost of constructing supplemental capacity,
with the funding of the reimbursement derived from the levy and collection of a
charge on the development of the properties benefiting from the supplemental
capacity.
SECTION 2: Report of the City Engineer. The City Council hereby acknowledges receipt
of the City Engineer's Report regarding the Holly-Seacliff Area of Benefit District. Said Report was
prepared by a consultant,MuniFinancial,pursuant to Section 17.68.040(b) of the Huntington Beach
Municipal Code. A copy of the Report is on file with the City Clerk. Said Report includes:
A. The total cost of the Supplemental Improvements,including right of way acquisition,
which amount is $1,949,948.40.
B. The cost of the Roadway Improvement component of the Supplemental
Improvements,which amount is $455,350.65.
The City Council hereby further acknowledges receipt from the City Engineer of a diagram
describing the boundaries of the District and identifying all parcels within the District.
SECTION 3. Holly-Seacliff Area of Benefit District.
A. Pursuant to Chapter 17.68 of the Huntington Beach Municipal Code,there is hereby
established the Holly-Seacliff Area of Benefit District.
02reso/Holly-Seacliff Traffic Impact/6/6/02 2
Res. No. 2002-59
B. Although the City Engineer Report recommends that the amount of Excess Costs are
$1,949,948.40,the City Council finds and concludes that only the Roadway
Improvement component of Excess Costs should spread as a charge to the Benefited
Properties.
C. A list of the properties identified by assessor's parcel numbers which are included
within the District is set forth in Exhibit A to this Resolution. The City Council
hereby approves Exhibit A.
D. A diagram identifying the properties which are included within the District is
attached as Exhibit B to this Resolution. The City Council hereby approves Exhibit
B.
E. An apportionment of the Excess Costs for construction of the Arterials and the
formation of the District,which represent the actual amount to be charged against
each parcel within the District, is set forth in Exhibit A. The City Council hereby
approves the Charges set forth in Exhibit A.
F. Such Charges are due and payable prior to the issuance of a final tract map, final
parcel map, or the issuance of a building permit; provided,however, such shall not be
due in connection with building permits issued in circumstances as described in
Section 17.68.110(b)of the Huntington Beach Municipal Code.
G. The City Council finds that the Charges may be adjusted to the extent that the
sidewalk, curb, gutter and driveway installed by the Developer when widening the
arterials must be reconstructed in different locations at the time the Benefited
Property obtains its building permit or final map. The owner of the Benefited
Property may apply to the City Engineer for such an adjustment at the time the
Charge is due. By way of example, if the owner of the Benefited Property must
relocate the driveway the Developer installed pursuant to the final map, the City
Engineer shall reduce the Charge by the reasonable cost of relocating the driveway.
H. Commencing on July 1, 2003, and annually thereafter,the Charges established by this
Resolution shall be adjusted based upon the change in the construction cost index
produced by Engineering News Record,published by McGraw-Hill ("Cost Index"),
during the preceding year. The City Engineer shall then adjust the Charges set forth
in Exhibit A by such percentage change. The adjusted Charge amount shall be
rounded to the nearest cent, and this amount shall constitute the Charge authorized by
Chapter 17.68 of the Huntington Beach Municipal Code and established by this
Resolution. Should the cost index be revised or discontinued, the City Engineer shall
use the revised or a comparable index as approved by the City Council for
determining fluctuations in the cost of constructing traffic improvements.
SECTION 4. California Environmental Qality Act. The City Council hereby finds that the
adoption of this Resolution is exempt from the California Environmental Quality Act("CEQA")
under Section 15273(a)(4)of the California Code of Regulations,commonly known as the CEQA
Guidelines. The City Council finds that this exemption applies because there is no reasonable
02reso/Holly-Seacliff Traffic Impact/6/6/02 3
Res. No. 2002-59
possibility that the establishment of the Area of Benefit District could negatively affect the physical
environment. To the contrary, the charge will be collected to mitigate the environmental impacts of
new development on the City's surface transportation system. Any environmental impacts associated
with specific projects that may be undertaken with charge proceeds will be assessed as each project is
formulated.
Further, the City Council finds that,based on Public Resources Code Section 21083.3(b)and
the fact that this Resolution implements the Circulation Element of the General Plan, which was
analyzed pursuant to EIR 94-1,the Ordinance is currently exempt from further environmental
assessment until individual traffic improvements are submitted for approval by the City.
SECTION 5. Effective Date. This Resolution shall take effect and be in full force sixty
(60) days from and after adoption thereof, which date is June 17, 2002
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular
meeting thereof held on the 17th day of June 2002.
ATTEST:
City Clerk o6-2a -02 Mayor
REVIEWED AND
11 APPROVED: APPROVED AST FORM:
City AdniKistrator City Attorney
d 6-L b-6—OZ
ITIA D AND APP OVED:
/Director of Public Works
02reso/Holly-Seacliff Traffic Impact/6/6/02 4
Res. No. 2002-59
Res. No. 2002-59
Ex. A
Allocation of Project Costs and Charge Schedule
Project Costs
Front- Roadway
age Improve- Formation
Parcel Number Owner (ft.) ments' Costs$ Total Charge
Goldenwest Street .
110-211-01 Ghodooshim 25 $ 1,702.50 $ - $ 1,702.50
110-211-02 Borghetti 25 1,702.50 - 1,702.50
110-211-03 Marow 50 3,405.00 - 3,405.00
110-211-04 Ghodooshim 25 1,702.50 - 1,702.50
110-211-05 Ghodooshim 175 11,917.50 - 11,917.50
110-220-02 Brindle 330 22,473.00 - 22,473.00
110-220-03 Brindle 199 13,551.90 13,551.90
110-220-04 Brindle 129 8,784.90 - 8,784.90
111-120-01 S&C Oil Co. 132 8,989.20 - 8,989.20
111-120-063 Thomas NA - -
111-120-073 Thomas NA - -
111-120-083 Thomas NA - - -
111-120-09 Thomas 117 7,967.70 - 7,967.70
111-120-11 Lingle/Leckie 81 5,516.10 - 5,516.10
111-120-273 Mitchell NA - - -
111-120-28 Mitchell 132 8,989.20 - 8,989.20
111-130-11 City of H.B. 123 8,376.30 - 8,376.30
111-130-12 City of H.B. 72 4,903.20 - 4,903.20
1.11-130-14 Williams 88 5,992.80 - 5,992.80
111-130-15 Renner 145 9,874.50 - 9,874.50
Gothard Street
111-110-15 Galich 95 6,469.50 - 6,469.50
111-110-184 Mandic 290 19,749.00 - 19,749.00
111-110-19 Greer 145 9,874.50 - 9,874.50
111-110-20 Ramsey 98 6,673.80 - 6,673.80
111-110-21 Pederson 73 4,971.30 - 4,971.30
111-110-22 Pederson 73 4,971.30 - 4,971.30
111-110-383 Custer NA - - -
111-140-18 Jones 145 9,874.50 - 9,874.50
111-140-193 Gustafson NA - -
111-140-21 Thomas 20 1,362.00 - 1,362.00
111-140-22 Thomas 125 8,512.50 - 8,512.50
111-140-23 Gardner 145 9,874.50 - 9,874.50
111-140-24 Thomas 145 9,874.50 - 9,874.50
111-140-25 Weaver 145 9,874.50 - 9,874.50
111-140-27 Everroad 88 5,992.80 - 5,992-80
111-140-38 Telford 167 11,372.70 - 11,372.70
111-150-13 City of H.B. 195 13,279.50 - 13,279.50
111-150-153 Anderson/Gowdy/Gum NA - - -
111-150-163 Anderson/Gowdy/Gum NA - - -
111-150-173 Scott NA - -
111-150-19 Robrecht 95 6,469.50 6,469.50
111-150-20 Robrecht 95 6,469.50 - 6,469.50
111-150-21 Delgado 95 6,469.50 - 6,469.50
111-150-24 Elliott 201 13,688.10 - 13,688.10
Res. No. 2002-59
Ex. A
Allocation of Project Costs and Charge Schedule (cont'd)
Project Costs
Front- Roadway
age Improve- Formation
Parcel Number Owner ft. ments' Costs Total Charge
Garrield Avenue
111-110-07 Dunn 150 10,215.00 - 10,215.00
111-110-10 Roulette 50 3,405.00 - 3,405.00
111-110-14 Taylor 79 5,379.90 - 5,379.90
111-110-313 Bollman NA - - -
111-110-333 Weide NA - - -
111-110-363 Novak NA - - -
111-110-373 Boodman-Gorndon NA - -
111-120-12 Leckie 38 2,587.80 - 2,587.80
111-120-13 Thomas 50 3,405.00 - 3,405.00
111-120-14 Thomas 50 3,405.00 - 3,405.00
111-120-15 Thomas 50 3,405.00 - 3,405,00
111-120-16 Thomas 100 $ 6,810.00 $ - $ 6,810.00
111-120-17 Thomas 50 3,405.00 - 3,405.00
111-120-18 Thomas 50 3,405.00 - 3,405.00
111-120-19 Thomas 50 3,405.00 - 3,405.00
111-120-20 Thomas 68 4,630.80 - 4,630.80
111-130-01 Weir 18 1,225.80 - 1,225.80
111-130-02 Weir 75 5,107.50 - 5,107.50
111-130-05 Ashby 50 3,405.00 - 3,405.00
111-130-06 Petersen 50 3,405.00 - 3,405.00
111-130-07 Leckie 50 3,405.00 - 3,405.00
111-130-08 Leckie 50 3,405.00 3,405.00
111-130-09 Wiliams 100 6,810.00 - 6,810.00
111-130-26 Weir 75 5,107.50 5,107.50
111-140-02 Weir 25 1,702.50 - 1,702.50
111-140-04 Weaver&Mola 50 3,405.00 - 3,405.00
111-140-05 Thomas 50 3,405.00 - 3,405.00
111-140-06 Weaver&Mola 100 6,810.00 - 6,810.00
111-140-07 Lingle 100 6,810.00 - 6,810.00
111-140-08 Weaver&Mola 50 3,405.00 - 3,405.00
111-140-09 Loma Linda Univ. 18 1,225.80 - 1,225.80
111-140-36 Weir 25 1.702.50 - 1,702.50
111-140-37 Weir 50 3,405.00 - 3,405.00
159-281-03 Hassett 50 3,405.00 3,405.00
Main Street
111-150-30 Santiago 103 7,014.30 - 7,014.30
111-150-36 Southridge Homes 206 14,028.60 - 14,028.60
111-150-37 Kelter 110 7,491.00 - 7,491.00
111-150-38 S Frecido 106 7,218.60 - 7,218.60
111-150-39 Southridge Homes 105 7,150.50 - 7,150.50
Total Amount 6,684 $455,180.40 $ - $ 455,180.40
Total Parcels Charged 70
'PLC Land Company actual per foot roadway construction costs($68.10)multiplied by frontage.
2 Costs for contract professional services to calculate and document the charge. - _ -
3 No charge because property owner improvements were in place prior to PLC's improvements.
°Prior bond issue proceeds expected to fund improvement cost
r'Formation costs not included in charge.
Sources:City of Huntington Beach:MuniFinancial.
Res. No. 2002-59
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Res. No. 2002-59
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of
the City of Huntington Beach, and ex-officio Clerk of the City Council of said
City, do hereby certify that the whole number of members of the City Council
of the City of Huntington Beach is seven; that the foregoing resolution was
passed and adopted by the affirmative vote of at least a majority of all the
members of said City Council at a regular meeting thereof held on the 17th
day of June, 2002 by the following vote:
AYES: Green, Cook, Houchen, Winchell, Bauer
NOES: Boardman
ABSENT: Dettloff
ABSTAIN: None
City Clerk and ex-officio derk of the
City Council of the City of
Huntington Beach, California