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HomeMy WebLinkAboutULTRASYSTEM, INC - 1979-03-07 AG :1EEXENT THIS AGREEMENT, made and entered int -) this ,,,�'"`� day of 1g77� by and between the CITY OF HUNTINGTON BEACH, CALIv—ORNIA, a ivinicip&! corporatien, Lerein- of tee• referred to as CITY, and ULTRda.SYSTEMS, INC. , a lice-sed firm; hereinafter referred to as COASGLTANT, Alt r 2 C I T A L S: 1. The vity Council. of CITY is authorized to engage the services of a professional consultant firm fo:^ development, of a .,ompurer fiscal impact model of land urt - , for and on behalf of CI_Ir; and 2. ft is necessar ?•--I dest.•able thai, professional services be performed for C raoi,e specifically descrtbi�•d in the Scope of Services, hare_ after r4f'erred to -as PROJECT, attached hereto as Erhibit "A;" and by this reference inoor- rated herein and rya e a part hereof; and 3. CONSUI;TANT shall have that degree of specialized expertise co:itemy-laced w-thin California Goverm ent Cade Sec- Lion 37103 and shall 3 ve all necessary li.cenzes therefor to practice and perform the services herein contemplated; and 4. CONSULTANT agrees to perforin, the necessary tastes associated with development of a compvter fiscal it -Mt model; wad v S. CITY hereby employs CONS.LILIMT to perform the >'"`` services as required by PROJECT ane CONSULTANT agrees to provide � those services; and '^ 6. No official or employee of CITY has a financial interest in the subject natter of this agreement contemplated within the provisions of 'al. fornia Covernment Code Sections 1090-1092 artd �5= 7. CONT SU'LTATrT warrants that ii; shall perform the A` services herein contemplated in compliance with the C.,�lifornia laws related to n.inimur. hours and wages (California Labor Code Section il71 et seq.) , occupational health and saict;r (29 U_S.C. 651 et sc,q, ar.d the California Labor Code Section 6300 et seq.), and fair employment practices (29 U.S.C. Section 201 et seq. and California Labor Code Section 1410 et seq.) to the extent same are applicable herein; and 8. The parties hereto desire to set forth their rights, duties and liabilities it connec ica z ith the services to be performed under this PROJECT, NOV, THEREI=ORE, it is agreed by CITY and CONSULTANT as follows SECTION 1. GENERAL DESCRIPTION OF WORK TO BE. DONE: f I CONSULTANT shall provide all professional serv- ices as described in the Scope of Services, marked Exhibit "Alt attached ht;reto and made a part of this agreement. (b) CONSULTANT shall provide guidance in the collection of the basic data described in Exhibit "'A", Configura.tw4on Input 2. Data and Miscellaneous Revenue/Cost Data. CITY will provide staff and assume primary responsibility for the collection of the data outlined in Exhibit "B" (c) CONSULTANT shall designate a Project Manager ` tiho shall represent it 4nd be its primary contact and. agent in all, consultationF with CITY during fulfillment of the terms of this agreement. (d) For the purposes of this agreement the PlanningJ+. Director of CITY is hereby designa'ued Project Coordinator to wort: directly with CONSUL'`ANt in connection with the work of this agreer>ient. (e) CONSULTANT shall attend and assist in a maxim-zrn of two public presentations within forty-five (45) :'ays of submittal of the Final Report. SECTION 2. DISPOSITION OF PLANS, ESTRUTES AND OTHER. DOCUMENT6 CONSULTANT agrees that all original drawings, reports, bath field and office notes, calciiiations, maps ane other docu- ments, where specifically identified as a task or subtasl, product in. the Scope of Services, shall be turned over to CITY upon completion of PROJECT. CONSULTANT further agrees to provide CITY wive (5) copies of the Draft Final Report for review within four (4) months of signing, of contxact by both parties unless otherwise by mutual agreement, CITY will provide comments and suggested changes in writing to CONSULTANT within fi ceen (15) days otherwise whe Draft Final Report will be considered Ila acceptable. CONSULTANT will provide CITY with thirty (30) copies of the Final Report within thirty (30) days of submittal. � of the Draft Final Report. �. SECTION 3. DISCRIMINATION; f `nsa CONSULTANT agrees tbat in the performance of the terms g of this agreement, it will rot en.gptre in, nor permit its agents � to engage in, discrimination in employment of persons because of race, religious creed, color, national origin, ancestry,. physical handicap, medical condition, marital status, or sex E of such persons, except as provided in Szction 1120 of the t California Labor Code. Violition of this provision nay result in the imposition of penalties referred to in Division 2, Part 7, Chapter I of the California Labor Code. S 'TIO'N 4. INDEILNIFICATTON, DEFENSE, HOLD H.AR;kILESS: CONSULTANT hereby agrees to protect, defend, indemnify and save harmless CITY, its officers, agents and employees, against loss, danag*e or expense by reason of any suits, claims, demands, judLiaents any: causes of action caused by CONE ULT N'T, aAs employees, agents, subcontractors, or by any third k .ty arising out of or in consequence of CONSULTXNT'S performance of this agreement, except where such loss, damage or expen.�e is caused solely by the wrongful acts of CITY, its agents, officers or employees i-3 connection with the general supervision or direr ion of the works to be performed under this agreement, StMOINI S. WOR" "'RS, COMPENSATION: Cfl vSULTANT shall' comply `7ith all of the prcvisiop..s 4. of the Workers' Compensation Insurance and Safety Acts of the State of California, the applicable provisions of Divisickn Y and S of the California Labor Code arri all amendments thereto; a•zd all similar State or Federal acts or laws applicable; and �# si:all indemnify, defend and hold harmless CITY from and against P all claims, demands, payments, suits, actions, proceedings and M, judgments of every nature and description, including attorney's fees and costs, presented, brought or recovered against CITY, wr; _ for or on account of any liability under any of said acts which may be incurred by reason of any work to be performed by CON- SULTAINT under this agreeriert. SECTION 6. I dSUItArXE: CONSULTANT agrees to furnish to CITY and maintain in force until the completion of PROJECT a general liability insurance policy in which CITY is named as an additional insured. The policy shall insure CITY, its officers and employees, while acting within the scope of their duties, .against all claim; arising out of or in connection with PROJECT. The policy shall Provide for not :;.ess than the fol?o=aing amounts., Combined single limit bodily* injury anal/or property damage of $1,OOO,000 per occurrence. Such policy of insurance shall specifically provide that any other insurance i�a.rried by CITY which may be applicable shall be deemed excess and CONSULTANT'S insurance primary despite any conflicting provisions in CONSULTVNT''S policy to the contrary. ECTTOIN 7. INDEPENDENT CONTRACTOR: It is further understood and agreed that CONSULT91T F` yyk C E t' t i j F 1 a ww is, and shall be, acting at all times as an independent contra.e for herein and not as an employee of CITY. CONSULTANT shall secure at its expense, and be responsible for any and all pay- -" mont of income tax, social security, state disability insuzance compensation, unemployment compensation and other payroll de- ductions for CONSULTANT and its officers, agents and employees � and all business licenses, if any, in connection with the serv- ices to be performed hereunder. SECTION S. PROVISION FOR P' YME.uT* (a) In consideration of the performance of the serv- ices described in Exhibit "A," CITY agrees to pay CONSULTANT a total fee of Fourteen Ty.ousand Five Hundred and no/100ths Dollars ($14,S00) . (b) CONSULTANT shall submit monthly progress reports to CITY during the first week of each month. Included in ea`i progress report shall be a summary of the work accomplished ing the preceding Month, an account of any significant proble, encountered, and an estimated percent. PROJECT completion by (c) CONSULTANT shall: submit bi-monthly invoices f payment to CITY. CONSULTANT shall specify or. said invoice work completed in the tLme period covered by said invoice, as reporteJ by CONSULTANT in previously submitted progress xepoTts for the sate period. Upon invoice Teceipt and approval, but in no event later than frty-five (4-S) days after invoice receipt, CITY shall make payment thereon to CONSULTANT, pa.yablp to ULTRA zYSTRUS, INC. CITY shall withhold payment of One Thousand. Five 6 k Hundred and no/100ths Dollarq ($1,500) to CONSULTANT until corr.- pletion of a maximum of two (2) public presentations o- to *1o,, more than, forty-five (45) days after submittal of the Final Report, whichever occurs first. POW SECTION 9. EXTP.A WORK (a) In. the eve.,,' )riz-itio:n, in writing by the CITY'''S Project Cooi if changes from: the work as > indicated in Exhibit "A'° or for other written permission aut-horizing additional work not contemplated herein, additional compensation shall be allowed for ' A "i extra work but extra compensat?.on shall not exceed 10 percent of the total contract, as specified above, without approval of MIN, (b) CONSUz:T&NT shall submit bi-monthly invoice: which specify the a , where work was completed and the associated time fo-r- completion to the CITX'S Project Coordinator ror ap- proval. Work performed, at the request of CIn , outside the limit specified iq th4s agreement is to be designated as "EXTRA WORK" on by-monthly invoices. Dior?- performed in connection with an authorized written change order will be so designated on said invoice. SECTIO14 10 TEPNI'NATION OF CONTRAM All work shall bn done wn a s-,od and workmanlike manner and CITY reserves the right to terminate services h:ereundet• at my time wi.t : or without cause, and i4hether or not PROJECT has been fully completed, Any termination hereof, and any special instructions :=ereupier frog i CITY shall be rea.ae throug1h 7', `II t { e pk 4 Y!U CITY'S Project Coordinator, and in writing, whi0i may be de- livered in person to CONSULT-UT or nailed through the Pormal course of mail to its now-estab'l hed business address. In the event this agreement is cancelled all drawings designs CP specifications and appurtenant data may be usee by CITY without additional cost to CITY, Should CITY decide to terminate this Y agreement for any reason, CONSULTANT shall 2�e zntitled to compensation based on the completion of all wozk in each `cask to the date of termiriat i.on as described in F-<I ibit 11C11 Project Costs by Task. Such completion of work by task shall be deter- mined by concurrence of CONSULTANT Project Manager and CITY Project Coordinator. SECTION 11. SUBCONTRACTORS: This agreement is a personal service contract and the supervisory work hereunder shall nc:t be delebated to any person or entity without the consent of CITY. (Rest of page not used) y F F, SECTION 12.. ADDITIONAL PROVISIONS t CONSULMIT agrees that no regular employee of CITY shall bo employee; by its f.;rn during the time that this agreement t 4,V is in effect. �n IN WITNESS UTHEREOF, the parties hereto have caused r this agreement to be executed by and through their authorized officers t.ze day, month and year first above written. Ultra:sysvtems, Incorporated ULTRASYSTDIS, INC. 2400 Micheison Drii,e Co.isultaAt Irvine, California 92715 P.J. Stevens By `�• .n.�sx_ __ �Praszden 3 By R, L. Greengard —Tice PresI era o:rpo~a e SeUe ary CITY OF HUIT INGTON BEACH a municipal corporation ay o r ATTEST, APPROVED AS TO FORM a ty let x v tMre , ItEVIEUT-D .AND APPROVED.- I:�ITIATE AND 1� TT*! i ` , Adnnistrator . .ctxng . a n ng Di rector y ' ggC A C f f EXHIBIT A SCOPE OF SERVICES The purposes of the Huntington Beach Fiscal Impact Model Project are rv' to develop a local government fiscal impact model, specifically � ` appropriate for the ana.Lysis of cost and revenue impacts associated with specific development projects, existing development citywide or sampled by type of use, and alternative land use plans; to employ the modvA in producing fiscal impact forecasts due to financing capital improvements through various options; to provide a decision- ma.kina tool to aid in growth management decisions and a basic method for forecasting future budcet impacts; and further to develop in-house City Staff familiar4.ty with the model by providing a bri :f tra ling program and by providing written documentation of the fiscal, impact model that can assist City Staff in subsequent, continued use of the model after this project is concluded. The Huntington Beach Fiscal impact Model Project contains seven bas;.c. t•;azks to be followed by the consultant in preparing the local governr<<ent fiscal impact model of land uses.. The level of detail associated with e&--h task is strictly governed by the time-flames and budgetary limitations mutually agreed between the City and consultant as specified in this Scope of Se-vices and in Exhibit "C" project Costs by Task. The specific details of these tasks can be described as follows: R f - 3 k 2 i r;sw tt TASK 1 - IDENTIFY REVENUE SOURCES t< Consultant will identify the significant revenue sources that are impacted by new and existing development within the City of *»°�W Huntington Beach. Included in these sources are property tax, p k � sales and use taxes, various licenses and per,n4ts, vehicle code fines, motor vehicle in-lieu fees, cigarette tares, business r w license fees, gas cax receipts, and various charges for current g �v services such as zoning, engineering, subdivision, and parcel map filing fees. z TASK 2 - IDENTIFY COST SOURCES Consultant will identify the significant cost sources that are impacted by new and Busting development within the City of Huntington Beach. Included ixi these sources are general government, police and fire protection, planning, library, recrearirti, parks, human services, bt :xlding, harbors and beaches, and public works. TASK 3 DERIVE REVENUE AND COST EST:AATINC RELATIONSHIP Having ,identified the applicable ri.venues and costs, the next step is to develop the basis from which these are derived such as per capita for the various state subventions, per dollar of construction 1 value for building pex �;Lts, per dollar of assessed value for property tax, etc. for revenues, and per capita (or per acre) for police and fire protection., public health, and parks and recreation co.y;:s. Revenue and cost for �ilati,ons will then be developed on tht, basis f'rem which they are "erived. For example, in the case of a per f capita revenue a typical f+ormusdtion would be as follows f i' 3 3 i. (Number of dwelling units) (Number of people per dwelling unit) (Revenue per capita) , A similar formulation could be written for per capita costs. `. TASK 4 - COLLECT REVENUE AND COST FACTOR DATA In order to estimate the applicable revenues and casts it is necessary to compute the corresponding ::e onue and cast factors These are the quantities on the basis for which the revenues and costs are derived such as sates tax revenue per capita, motor t vehicle in-lieu fees per capita, pDlice protection cost per capita, fire protection coat per capita or per acre, public works cast ,per acre, street maintenance cost per i;a['t:, etc. The computations of r these u. -ors will be accomplished through the use of data in the city, and the use o:: the estimating relationships derived in TASK 3. TASK 5 - MODIFY EXISTING FISCAL IMPACT MODEL The fiscal impact model developed by the Consultants for the County of Orange and the cities of Anaheim and Orange u.:,ier a HUD 701 grant provides a structure which can be readily ^codified to f' : the budgetary situation of the City of Huntington Beach. Some of the revenues and costs that can be estimated n the present model do riot fit th,,a City �i of Huntington Beach ;3ituation and thus should be eliminated. on the other hand, it may be necessary to modify :some of the present model, revenue and cost formulations to fit "how it is� done in Huntington Beach" The basis for t;er2 changes would be the use ` of the revenue and cost Pstinkating ,elationships derived in TASK 4. The crud result of this process would be the development of a comp- Tuter axed cost./tevenue model which is a "replica" of how revenues and ,,&Nkomo= i' 5" 5 t costs are derived in the City of Huntington Reach fzom land use protects. This model will all, for the computation of capital costs incurred as the result of new developmen,, and will also include the 4 �r provision __r estimating capital costs according to the method of pay- ment (cash, bonds, bonds plus sinking funds,. etc. ) . TASK 6 - DEMONSTRATE JSE OF MODEL VIA ILL'USTRATIVT PROJECT EXAMPLE, GENTERAL PLAN ANALYSIS, AND SELECTED EXISTING DEVELOPMENTS ANALYSIS Having developed, as a result of TASKS 1-5, a computerized cost/ revenue model for the City, the next step in the basic contractural effort will be to demonstrate the use of the modell on both the 4 City`s computer and the CDC 6600 at the Orange County Computer Center. One or more illustrative project examples will be selected in conjun- ction with City Staff and officials. The next step will be to use the computerized fiscal impact methodology to perform an analysis of the City's currently adopted land use General Plan and existing development on a Citywide `rasis. An analysis would also be conducted to evaluate the fiscal it ict of a selected sample of existing land uses by type asp to which uses appear to pay their own way versus those which do not. Using these examples and analyses, projections will be made for a given time period of interest of the annual costs and revenues by source, the ratio of total annual revenues to total annual costs, the present worth of total revenues less total costs over the selected time period, and the cumulative development status where appropriate in terms of population, dwelling units, acres developed and land valuation. TASK 7 -- FINAL REPORT PREPARATION AND PRESENTATIONS Upon coy>pletion of TASKS 1.,-6, the Consultant will prepare ,a report (30 copiii�s try be provided to the city) documenting the effort performed in terms of data and information: collected, a description of the cost/ 5 revenue methodology developed, a listing of the computer program (copies of the program decks will also be provided) , a set of instructions regarding how to uss the program at either of the two facilities, a �• �'. discussion of the illustra;,fire examples considered in the program < " demonstration, and the fiscal impact analyses of existing land uses aid the General Plan. ;. 6 } PROPOSED SCHEDULE OF EFFORT FOR THE DEVELOPMENT OF TUE LOCAL GOVERNMENT FISCAL IMPACT MODEL Total Elapsed Time (moriths) 0 1 2 3 5 6 Initial Meeting with City Staff Task l - Identify Revenue Sources 1.0 Task 2 - identify Cost Sources 1.0 Task 3 _ Derive Revenue and Cost Estimating Relationships 1.0 Task 4 Collect Revenue and Cost Factor Data 1.5 Task. 5 Modify Existing Fiscal Nam Impact Model 1.0 Task 6 - Demonstrate Use of Model 1.5 Via Illastrative Example, General Plan Analysis, anca Selected Existing Develop- ments Analysis Task 7 Final Report Preparation 0.5+ and Presentation Submit Monthly Progress Reports ----- Submit Draft Report ----- Submit Final Report --- - Make Presentations, as Necessary • , • • •• _ ___ 6.0 ,,,,. q...:........---ae ,w wr',w,r--tire, .,, •:�-a -�• ,r: EXHIBIT B { ' z CONFIGURATION INPUTS NECESSARY FOR EVALUATION OF LAND USE FISCAL IMPACTS Z1 Residential Land Use Factors (l1 such as: number of dwelling # units by type; number of acres of each dwelling unit type; CfY number of people per dwelling init; market value per dwelling unit; fraction of Market value representing improvements. 21 Commercial. Land Use Factors (l} such as: number of commercial land use types; number of acres of each commercial use; number of commercial services per acre; conimercial square footage per acre, market value per acre of commercial use; fra -ion of market value representinq improvements. 31 It dustrial Land Use Factors (l1 such as: aunmber of industrial land use types; number of acres of each industrial use; number of industrial services per acre; industrial square footage per acre; market value per acre of industrial use; fraction of market value representing improvements. 41 PlanninS[ Factors (2) such as: linear footage of streets per acre; linear footage of storm drains per linear foot of streets; linear footage of water Imaina per acre; linear footage of sewar lines per acre; park planning standard (for existing parks) in acres per capita, (1) These may vary by geographical area within they City. (2) These may vary by type of land use.. 4 f -v> ?.)MIBIT B MISCELLA SOUS Ri;�VT,, UE AND COST-RELATED DATA NECESSARY FOR EVAT;?TION OF LAND USE FISCAL IMPACTS l} State Board of f4ualization data on total taxable retail transactions ;. :. by type of business and number of businesses in the City (preferably .� ;' for calendar year (1978) k 21 Average business license fee by type of business in the city (applicable .4 schedules arc useful,howeYer, a sample .f each existing business type should be compiled.) . a: 3) Average annual refuse collection cost per dwelling unit by type and per business by type in the City (a 7plicable schedules are useful ;. t however, a sampling would be necessary for existing developmen'4' . z 4) Average total permit and processing fees per new dwelling unit const) ucted by type and per acre (or per sq. ft. GFA) of new commerc 1, and industrial construction (this would require a sampling by type of land use) . 5) :average annual eater consumption and water revenue pt ; dwelling unit by typo and per business by type in the City (this would require a t: sampling by type of land use) , 6) Annual City operating cost per gal.lo,i (or per 100 cu. ft.) of water provided. for a 6-year period of time. 7) State Department of Finance certified clay population estimates as of January for 1973- 1978. 8) Statements of expenditures and receipts for fiscal years 1973-1978. 9) Cumulative linear footage :,or mileage) of publ;c streets maintained by the City for fiscal. years 1.973-1.978. 10) Cumulative developed acres by typo of Land use (riasidential, commercial or industrial) for fiscal years 1973--1978 (NOTE: It is recognized that the City ;fight not maintain such an annual inventory, however, it should be provided for wbatec=or years the data is available }}f f'. F f- f.: 1 =y�a 11) Cumulative linear footage <,f sewers and storm drains, if maintained w4 �x by the City, for fiscal years 1973 1978. 12) Cumulative number of developed parks and parkways maintained by the City for fiscal years 1973-1978. ; r x HUNTINGTON BEACII LAND SL FISCAL AL i 1i'r1t "i :;eiJt:L ' PROJECT COOTS BY J'ASK c k h t, rt r... i i} identify Revenue: Sources 2) identify Cost Sourc�!s 3) I7ey ile Pevenue and Cost: Estimating Rejatj,,3-jSjjipf; 4) Collect Revenue arij Factor Data �..."; .'4 iVia ijlu.,itrativo k+1(l 5) Modify Impact Jodej �} i7f'Rtt?ItSe''.:`c1?"E: �,Si? C.?i `�t;�C(fi? • SL''lected E.Xistinq I.(-wejoi)- meats Analysis 7? rina Rr. :Sax . Prx,parat un and Presentatiol-Is 500 AFrRWED AS TO .FOMW: ;AIL HUTT€?N "thy f�iz°a2dy �, s�p�aty yG,i�gt�Y M ..., • _.. ... .,.fin REQUEST FOR CITY COUNCIL ACTION Submitt;d by James W. Palm Department Planning Date Prepared March 77, 1979 , 13 Backup Material Attached Ej Yes; No k =_ Subject CONSULTANT C0414T tACT FOR DEVELOPMENT OF COMPUTERIZED FISCAL IMPY kCT MOREL OF LAND USES. ;•^ ' City administrator's Comments awPiPROVLO DX CJJ k t:0i.NC11, ' Approve as recomriende N _ 2 �. Statement of rssue,Recommendation,analysis, Funding Source,Al*ernative Actions: , STATEMENT OF ISSUE: Staff has formulated and reviewed in concert with Ultrasystems, Inc. a professional services agreement for +be development of ri computerized fiscal impact model of land uses as previously authorized by the City Council. The project will, provide a means of determining the potential fiscal impact of development projects and alternative land use plans. RECOMMENDED ACTIONt Authorize the execution of a professional services agreement between the City and Ultrasystems, Inc. (consultant) for development of the fiscal impact model. ANALYS I S At .its March 5, 1979 meeting, the City Council approved the selection of Ultrasystems, Inca to develop a computerized fiscal impact model. which will enable City staff to analyze fine impacts ot specifi4 devel- opment proposals and different .land use alternatives on the General Plan. Pursuant to this approval, the Planning staff and the City Attorney's Office .haveformul.ated a professional services agreement with the consultant. The contract attached for the City Council's review and <rxecut ion outlines .among other things the description of work to be clone; the disposition of plans and other dociaments; the working condi- tions under which the project will be completed; the provision for payment and, extra work; and the conditions governing a termination of agreement. f Attached -to the contract is a detailed description of the basic tasks to be followed by the cor,,sultant in preparing the fiscal impact model. 4 F f 'e t s... is Fiscal. impact N:3del - Contract � March 7, 1979 Page 2 The 'revel of dete.il asecciatad with each Mask is strictly governed by the time-frames and budgetary limitations mutually agreed betwee4, the City and the ^onsultant a5 specified. 3�R ALTERNATIVE ACT TUNS t " 1 Revise the professioital services agreement as desired. 2. Postpor.-i or cancel the study, � Each of these alternatives may involve time delays and nigher costs. Respectfully submitted, .games.. W. Pals.n Acting Planning E`.::ector t JWP CG:df Attachment; Professional Services Agreement iynd Exhibits REQUEbF FOR CITY COUNCIL.. ACTION Submitted by ,Tames W. Palin Department Planning c Bate Prepared February , , 19 79 crackup Material Attached [] Yes Nc _ Subipr Consultant i1t selection for r1 YQ '.o Xiif T2# Q computerized f1 s,.-al impact modF1 of land uses. City Administrator's Comments Approve as recommended. r w Statement of Issue, Recommendation,Analysis, Funding Source,Alternative Actions, STATEMENT OF ISSUE- Staff has reviewed the proposals submitted for the development of a computerized fiscal impact model of land uses as previously authorized by the City Council. This project will provide a means for detex:mini.ng the potential fiscal impact of development projects and alternative land use plans. RECOMMENDED ACTION: Approve the selection of Ul trasystems, Inc. to develop the fiscal Impact :model for the City for a maximum fee of c14,5o0- n, ANALYSIS At its December 4, 1978 meeting, the City Council authorized staff to solicit proposals from consultants for the devo'opment of a computerized fiscal im-act model which will enables "iffy staff to analyze the impacts of specific development proposals and different land wile alternatives on the General Plan, The project will also allow evaluation of the fiscal impact of the currently adopted land use General Plan and existing development on a Citywide basis. A th;rd: benefit of the study is to permit City staff to evaluate the fiscal impact of a selected sample of existing land uses by type of use and perform an analysin as to which developments appear to pay their owp way versus those which do not. x t x Y t t f Paae b%,o The three firms which responded to the Request for proposal are listed below, together with the estimated total cost: '. 1. Ultrasystems, Inc. $14,500 �. The Natelson Company, Inc. $11,000 3. Pro?ect Economics, Ino. $18,250 a` The three proposals were reviewed in detail by City Staff. The selection process was based on the demonstrated qualifications and t , expertise of the project staff and the firm itself, the details of the proposed work program, and the reasonableness of the cost schedule. The lowest biddin; firm lacked detail in its work program and would not commit to a specific time frame by *ask. Moreover, the other firms proposed to include a published analysis of existing development ci6ywide and a sampling of land use types to determine which ones ply their own way Versus those that do not, The highest bidder woult. add a $20,000 license fee to its proposal to set the model up on the City's computer. The $18,250 reflects use of the firm's computer facilities. Based on these factors, it is recommended that the middle bidding firm, Ultraasystems, Inc. , be given the responsibility for this project. FUNDING SOURCE- The project will be funded frcm the City's A*r, -,Recessionary Fund and personnel salari,.:�s account of the Planning Department. The Anti-Recessionary Fund will provide $9,562 to the project. The remainder of the required monies will come from the personnel salaries account of the Planninq Department. ALTERNATIVE ACTIONS 1. Felect another consultant to perform the work, 2. Tire additional City Staff to undertake the project without consultant assistance, 3. Reduce the scope of the study, 4. Po�'tpone or cancel the study. Each of these alternatives would involve time delays, higher costs, and/or a project not entirely reflecting the City's needs. R spectfully submitted, ames W. Galin Acting :Planning Director Attachment: 1 Finatwial Impavtn Statement 1 , 6- Y MJPWJ J 3 CITY OF HUla TINGTON BEACH INTER-DEPARTMENT COMMUNICATION v, HUNTING70k MACH v To Floyd G. Belsito HOrt F. B. Arguello City Administrator Director of,EjnaRca Subject Financial Impact Report - Dale February 25 ;,�979 r x. Fiscal Impact FIodel As requested, I have preps-ed a Financial impact Report relative to the development of a fiscal impact model for use in this city. If the City Council wishes to approve , this project, there are funds available in the anti-recessionary account and within the PlannFng Department's budget. There would be no direct Impact an the City's contingency account F. B. Arguello W rect r of Finance FBA/cg rF OM C!TY OF HUNT i NGTON BEACH is FINANCIAL IMPACT REPORT' Project Name Fiscal impact Model Description To provide for development of a computerized fiscal impact model x° fir,. cf land useL. t, DIRECT PROJECT COSTS 1 .1 One-Time. Costs -1,and rn., ac)- a- Acquisition Construction ties, E ui ment. Other Total Cost 14,500 $ 14500 1.2 Recurring Annual Costs Additional UMaterIals Outside Pa roil Personnel Su lt •s Services Revenues Total Cost 1.3 Replacement/Renewal Costs None 2. I NDI REC_ COSTS None 3 Financial Impact Repc— Page 2 3, NON-DOLLAR COSTS p ._r None XN` ... Yt:F 4, BENEFITS TO BE DERIVED FROM THE PROJECT 1. Will enable City staff to analyze the impact of spe; ific development .. proposals and different land use alternatives on the General Plan. 2. Will allow zvaluation of the fiscal imp-lct of the currently adopted land use General Plan and existing development on a. City-wide basis. 3. Will permit City staff to evaluate the fiscal impact of a selected sample of existing land. uses, Gy type of use. 5, PROJECT USAGE As described in 41 above. b„ EXPENDITURE TIMING Upon letting of contract and completion thereof. 7. COST OF NOT IMPLEMENTING THE PROJECT None > CITY OF HUINTINGTON BEACH W'&',", Jlw NTINGTON BEACH, CAS IFOPNIA 92648 This is to certify that the following described policies i r>~in.full form arid expire as indicated herein: O { a,stis+ot Vsittr`d: ULTRASYSTEMS=_.INCv. _.,. A�tdress; _ 2400 MICHELSON DRIVE,_ IRVINE, CALIF ALE, PERATIONS ,i. S. A. .St�crifttun c�tf 4"'torlt: .. _ .., , . _. ., Locations. _. _ _,. _ _ . _ COVERAGE POLICY NO. EXPIRATION 1NSUROR U1011'5 OF LIABILITY `+€Vi. RKMEN'S COMPENSATION RC 811066 2/2/82 Great; Arierican STATUTORY EMPLOYER'S €LABILITY €'C 811066 2/2/32 Great kiieri can $ 2,000,000..00- BODILY INJURY LIABILITY c r'i �#� t'r T, F , Combined Single Limit AND PROPERTY DAMAGE ��/Cz`�J1�1, j�y/�!�rf�` S ��� �fi�°i. /�y (lncltatJ"tn Automobile) �� y �3Cft Occurrence 4 �j i rr _ Aggregate EXCESS COMBINED SINGLE � LIMIT BODILYINJURY hf r . �, / / r � $ t:rrEach Occurrence AND PROPERTY DANIAGE � � S '_� Aggregate (Including Automobile) rr �° � - -"- ;Z I'll THE FLINT THE OLICY LISTED ABOU IS CANCELLED OR IATERIALLY ALTEPE D THE INISUROR LISTED' WILL GIVE THIRTY 30) DAYS WRITTEN ADUNCE }')rICE TO HE CERTIFICATE UDE R. - �tcixtt�k.��r��uxs�tz��rstut�cH«I��-x�,x�alfr,>�c��s�xsc+xtz:asz��b���six,�ctx�ox�w��izx:�r�x��;x�.tartx. x>;r;re l�i? ftty�;!:l4Ah� '!'Isis,certificate is issued as a matter of information only and confers no rights upon the certificate holder, This venificate does not amend,extend or alter tho coverage afforded by the policies listed above, Notwithstanding any requirement, terra, or condition of any contract or other document with respect to which this certificate is issued,the insurance afforded by the policies listed above is subject to all the terms of such policies. THE DOUGHERTY CO., INC. THE DQ GHERTY COMPANY,, INC. P.O.sox 72TI LO:'C BEACH,CALIFORNIA 90807 July 15, 1981 „ .DATE: ..a._ 1- 31 d24-i+72i BY: N Gordon M. Dougherty I i7eau*n r rip?ai a ct r.rt vxD t�'3`�1y4iUft';l 4'Crt�.rnra Ci;. k s,erx. ;.n p. it ;sl.:}r3Bpt twfHfiF!i.,'AtE�W I€'�SURAy,t.F t c.,off,, a G". ti9�;.�gc> 4tY c:f ffiur,Cin^,icr:fjpath TO tteµt. C' t>e3'?r -r�:ty Atr:trr�ey A.U.Box 191? 0TY Or-HUNTING TON k iiCH,CAttFORNfA Hunlingtonifeach.Cabfam;a92G413 A MUNICIPAL CORPORATION This is to c rtify that the policies of smurAnce as described below have been ihw d to tb.a insured by the under- signed and are in farce at this tirne.If these policies are ranceiled or chani,led in,uch a manner thit will affect this certificate,the insurance company agrees to giva 30 days prior written notme,by mail,to City sf Hurivngtor.Beach.P.0,flux 190, Huntington Beach,California 9264& Name of Insured LILTRASYSTF21S, INC. — — Address of Insured 2400 MICHELSON DRIVE, IRVINE, CALIF RNIA 92715 Location of Insured Operations _ ALL OPERATIONS Desu-ri tion of Operations �— r r POLICIES IN FORCE POLICY LIMITS 6F LIABILITY �- -� NUMBER EFFECTIVE EXPIRATION �- A, Workers Compensation PG Statutory ; x Employers Liability 791065 2/l/76 CONT. s 2,000,000 00 kr B. Public Lisbdity: Ocombined single limit per occurrence. Bodily Injury, R Wnufacturers and SLY, Contractors 9448561 9/l/77 9/1/80 Each Person s` CompreflensiYe -a General S Each Ac6dent ' flncluding products completed trperaiionsl . operty Damage S Each Accident G. Automobile Liability; $500,000. "^ Combined Single Ulmii- SLP a Bodily injury 9448561 ' 9/1/77 9/l/8li S Each Person S _ _ Each Accident Property Damage 5 Each Accident Does policy cover: 41'laasa Mack at i9.ist onel All owned automobiles I x I Yes t I No Non-owned automobiles ( x)Yes t 1 IUo Hired automobiles I x)Yes I I No D. Additional insured Endorsement: The insurer agrees that the COY of Huntington Reach and its Ciey Council,andior all City Council appointed groups, committees,commissions,boards and any other City Council arpointed body,and/or elective and appointive officers, servants or employees of the City of Huntington Beach,when eating as such are additional insureds hereunder,for the acts of the insured,and Such insurance shall be primary to any insurance of the Citv of Huntington Beach. E, Hold Harmless Agreement: By Insured' - The insured zSrees to protect,defend,indemnify,and save harmless th,?Nty of Huntington'Beach against.loss,damage or expense by re=a on of any suits,claims,demands,judgment's tnd causes of action mused by incised,his employees,agents or any subcontractor or by any third party arising out of or in consequence of the petformance of all or any operations covered fay;he certifi"to of insurance. P. t eenarks: APPROVED AS TO FORM' Excess, Liability Policy NO. 123067, Harbor Insurance Company GAIT.HUTTON Term; 9/1178 -- 9/.1/79 .city At rney Limits: $$00,000,00 Combined Single Limit Excess of Primary By. Date March 30, 1979 4T. AUTHQAY40 REPR SENT:ATIV SURANCE OMPANY INWR NCI;CC PA11i`J area WrWm lasurance Company iiairteHarbbz �AS[1rLt1ICn �:OTA an � settnaturaofAutharrMi-Rotrrmerxtxtivlsrltgr Addrw P, 0 Box 7277 Address taty Long; BeachCalifornia 90807 Telephone � (213) 424-1621. )t�tt n+or}p hal awd la MAIL TO I • cc+nPlsJsd avrsitkast 1?�� Origdsaef .grytnttsmi t).yt. „a �, a city of fi qt Pink r tarty Clark II •We.. C,btd `Utp'attwnay h P.D.Uax'1~^~�[untt 1NiA. y Wunthw"Beach,Ca. - + This is f� �`^-�- - ra bears issued to the imuted by the under- %[V.ad and are in fa t i�4U$h8` t4fiiidflJ/.r tiC, a nunntr that will affect this sr'tifita2e,the ct ' insurantompahy antingtoh Btaeti,P.Q.Box 190,Hurvirwon Beach,California$: Low 0MR,V-11 O OR ro� FJrsma of lnturasf ULTY.ASXSTSlfS 12i 4"„~* r, Address aflitsueed 2400 MICHELSON DRIVE, LEVINE, CAL.:Pt1RHIA 92115 Potation Lf lniumd Operations + OPERAfiCORS Description of Operations R.S.A. A'a POLI Pr/LfCtES tIat ZpC£ I NUMBER EFFECTIVE GXPtfiA7i0� LtialT$tJF LIABILITY .._ . A. VYorkan Corrtfasnt+n set PC 5tatutrr- ,= 2/1/76 C4 Employer?Liability 791065 ff11tttJ4 04 g2aU44 440 S.Public t.iabili + fambined sine ty, 4h�a8� _ Af aodiiy Injury: limit per bccurrenca. -LP fAanOfaetureus and 5448561 911/77 9/1180 Contractors 5 Each Person Comprahensivt f Geneva! ! 5 +_.Each Accident ; (Indoding producer eomMeted Operations) _ ProPa:tti Darn"a $ Each Awderit C. Automobile k$50,000.00 Combined S3nZle Limit Bodily Injury SIX } 3.«� '_. _>acb fibnon o 9448561 �911/77 � 9/1180 S '-� „Each Amdent Property Damage S Each Accident Uaas pgltcy bows lPlxst fihackr!twttantl All owned autombbefas f g)Yet I R* son-owned solwivowkS. f XI"$S f )III Hired sutomobnler f x f Yfa I, I No D, Additional Intafed Lndofstmsm. (PER ATTACHED) Tha insuiet ay'rtet that the City Of ffunt)riittoh Saach area its City Count??,andfor all 01y Wunc,l appointed gmupt, xummkteas.atnimess)cm,boards and any rather#sty Ccuncif 4r7point6d body,and;'or efacuto and appotntivo bfflc*rs. +. s samInts or erripfoytes of the City of l untirgton Stoch,.when acting as such are additional insureds hatauridar.for the - acts of the Insured,and such inti rancie shatl be primary to soy%mwan:'r of the City of Huntington Stash. E. field ffarrntess Aylretment. fay tnrartCi. °s.A1 Cam... ..''rf-^�u �"a-""""' � The insured agrees to protect,defend,indemnify and Lava harmlets Lhc,!'ity of Huntivivoit Beath gantttoss.ttarrssym or anpaom by frawn of soy tints,c)afms,demands,iudgmertts and ctu-a of wttfah Mused by intua Jlit antpfoyats,agents or any subwa-ntractot ar by toy third piny*ruing out of or m conirauwty of the patioimatitt x all or any Operations coirrtsatf by the cettifttatoOf inutranm Aamarlel GA LAPPROlilri iOrV ED AS TO FOAM, r J,'..Pit Fxc aB �nilLt vPo CtY Olney six'='•'C+*is Tam- 9/1/78 - 9111Y9 1,i4tst$500,000.00 tt#u*J 5ia81a Lixi.t: excvig of F2�sely y Qty Att r y l,xfit w_ ._ AUTHORIZC .EPf PSF AT)VP '5UhA C oANY tarsuty �a c �txtta ��i SYtesxz�tsfvaa Ctr>U(raYtt�#y,+''� � t� � �'t'a Yt'8 .t:�t'i'gy�.'Sr 1c44 Sat,A:Krr, it a#TMKT rYBt*abM' k fwrlt� 3 rr• F f 71 ci►'TS CITY OF HUNTINGTON B1tACH CERTIFICATE OF INSUMCE REQUIPEMENTS Proof of Workers' Compensation required, or present a oerti•- w fiCate of consent to self-Insure issued by the Director of industrial Relations (See city form, Paragraph A). F t" ' Public 1;:.ability limits insufficient. Minimum acceptable is combined single limit per occurrence including '. property_dsmage (See city form, Paragraph B). Automobile llability is required. Minimum acceptable is ; combined single limit per occurrence including property damage (See city form., Paragraph C). ;era on nsuxed a dbrseuen e ru-iolk insurance company must name the city as additional insured for the acts or omissions to act of the insured and not of the city (See city .`orm, Paragraph D). Hold haa'ml.ess agreement not ,signed by insured. The insured must h Id `he city harmless (See city fort, Paragraph E). Policy number and effective;''expirntion date missing.. Insurance company not licensed to do business in California. The Certificate of Insurance must be issued by a surplus line broker admitted in California or by an insurance company licensed to do business in California, �-� Telephone numt.-^ for insurance broker missi-g. t�[t Automobile liability, Paragraph C, does policy cover; All otimed automobiles ( )yes ( )no Non-owned automobiles ( )yes ( )no Hired ;automobiles ( )yes ( )no At least one box must be checked YES. 011 d Other. � e,�'p ' .:z t 1 '._.. Y f: f —gin t Y !, 1 am r .jr.. 1, - t V'•8 i trL{ ..�aY t t, a rt Ft 5'` 1 r t a s� sr s - y ' t .-Al." is t �. f.• ''�'. # '} 2 (*,-} .} r,Yl _ - t r � I d Y yt IMF VIM i7 a IY • a+r r tr tC 1 YI r ti{' x}w � 1:.it �' t e" t 1i^ i` h. v � `� V y ,, r � �f a �' � '�7 y�-.y" r• J a t f y e p �d + � re i i { s f 1 74 t 1 b a q r +P 7 1K fir it Y SF fi<� 'f't,ry s a r r s eiCCA t i t 7- r A �. s t x - f � Y4lit for : r llSi �c tr K -y k t. ti � + �"G �•{.,' J t t # t �i rr � }" lY'J AM F.%VlII'I#+� t�� 7r L• v 9 q+t$ xr �t yv i� F x •t h t c t-d u* u� F �,s/, i k - r v, y i 1 W,. b' I :.1 d l ,y �'It'. yw �'�r�'r■�r.�,t t. ,�r a tfP, , oe k 9 C f, � rt CITY OF HU NTINGTON BEACH Office of the City Clerk P. 0. Box 190 Huntiri ton Beach, calif. 92648 FINAL REPORT ON THE DEVELOPMENT AND APPLICATION u OF A LAND USE FISCAL IMPACT METHODOLOGY FOR THE CITY OF HUNTINGTON BEACH PREPARED BY tr� ULTRASYSTE;MS, INC. 2400 MICHELSON DRIVE IRVINE, CALIFORNIA 92715 (714) 752-7500 # } C3VEMER 1979 VOLt1ME I — METHODOLOGY DEVELOPMENT T 4 ACKNOWLEDGEMENTS w AUTHORIZED BY: Huntington Beach City Council { 5� Don MacAllister, Mayor Bob Mandic, Mayor Pro Tem Ruth Bailey Ruth Finley s Ron Pattinson John Thomas Clancy Yoder PREPARED FOR USE BY: Huntington Beach City Council x� and Hunt=n tg on Beach Planning Commission Robert Bazil, Chairman Ralph Sauer, Vice Chairman Bruce OrAer Beverly Kenefick Pram Shea John Stern Grace Winchell CITY STAFF INVOLVED: City Administrator - Floyd Belsite Accounting Officer - Mayne Lee Department of Development Services Project Staff Jarps Patin, Director June Catalano, Senior Planner Charles :lark, Associate Planner Carol Inge, Assistant Planner Hal Simmons, Planning Aide Hal Messinger, Planning Intern Rad Coulter, Planning Intern Steve Levan, Planning Intern Guy Perrin, Planning Intern Sam Feldman, Planning Intern ,. yr TABLE OF CONTENTS VOLUME 1 - METHODOLOGY DEVELOPMENT u. Section Page 1 .0 INTRODUCTION. . . . . . . . . . . . . . . . . . . . . . "> 2.0 REVENUE SOURCES . . . . . . . . . . . . . . . . . . 2-1 z 2.1 Property Tax . . . . . . . . . . . . . 2-1 7 2.2 Other Local Taxes. . . . . . . . . . . . . . . . . . 2-2 2.2.1 Sates Tax . . . . . . . . . . . . . . . 2-2 2.2.2 In-,Lieu Water Utility Tax . . . . . . . . . 2-5 2.2.3 Water Utility Tax . . . . . . . . . . . . . . 2-17 2.2.4 Gas Utility Tax . . . . 2-21 2.2,5 Te',ephone Utility Tax . . . . . . . 2-22 2.2.6 Electricity Utility Tax . . . . . . . 2-23 2.2.7 Cigarette Tax . . . . . . . . . . 2-24 N 2.2,8 Real Property Transfer Tax. . . . . . . . . . 2-24 2.3 Licenses and Permits . . . . . . . . . . . . . . . 2-25 2.3.1 Animal licenses . . . . . . . . . . . . . 2-25 2.3.2 Business Licenses . . . . . . . . . . 2-26 2.4 Revenue From Other Agencies. . . . . . . . . . . . 2-26 2.4.1 Trailer Coach License Fees . . . . . . 2-26 2.4.2 Alcoholic Beverage Fees . . . . . . . . . . . 2-31 2.4.3 Motor Vehicle In-Lieu Fees. . . . . . . . 2-31 2.4.4 Gasoline Tax . . . . . . . . . . . . . . 2-32 2.5 Development Oriented Charges . . . . . . . . . . . 2-33 2.5.1 Permit & Processing Fees. . . . . . . . . . 2-33 2.5.2 Parks & Recreation Fees . . . . . . . . . . 2-36 2.5.3 Library Fees . . . . . . . . 2-37 2.5.4 Seger Fees. . . . . . . . . . . . . . . . . 2-37 2 5.5 Drainage Fees . . . . . . . . . 2-38 2.6 Laher Revenues . . . . . . . . _ . 2-40 2.6.7 Fines, Forfeitures and Penalties. . . . 2-40 2.6.2 Miscellaneous . . . . . . 2-41 2.7 stater Fees and Service Charges . . . . . 2-42 2.7.1 beater Fees. . . . . . . . . . . . 2-42 �" 2.7.2 Dater Sales . . . . . . . . . 2-43 r TABLE OF CONTENTS f ' Section Page 3.0 COST SOURCES . . . . . . . . . . . . . . . . . . . . 3-1 3.1 General Government and Administration . . . . . . . 3-1r 3.2 Public Safety . . . . . . . . . . . . . . . . . 3-3 ` 3,2.1 Police Protection . . . . . . . . . . . . . 3-3 3.2.2 Fire Protection . . . . . . . . . . . . . . 3-8 Sys 3.3 Harbors, Beaches & Parks . . . . . . . . . . . . . 3-14 k 3.3.1 Harbors & Beaches. . . . . . . . . . . . . . 3-14 ti .. 3.3.2 Parks and Recreation . . . . . . . . . . 3-15 3.4 Public Works . . . . . . . . . . . . . . . . . . . 3-16 3.4.1 Administration & Engineering . . . . . . 3-16 3.4.2 Facility & Equipment Maintenance . . . . . 3-17 3.4.3 Street Maintenance . . . . . . . . . . . . . 3-18 3.5 Library . . . . . . . . . . . . . . . . . . . 3-19 3.6 dater Service . . . . . . . . . . . . . . . . 3-20 4.0 COMPARATIVE EVALUATION OF SELECTED LAND USES . . . 4-1 4.1 Comparison of Residential Land Uses . . . . . . . . 4-6 4.2 Comparison of Commercial Land Uses . . . . . . . . 4-23 4.3 Comparison of Industrial Land Uses . . . . . . . . 4-27 P 9P6. I �r t } ,dt�SySl I7fyS. � ABSTRACT This the first volume of a 3-volume study to develop a ' computerized fiscal impact model for use by the City in the evaluation of land use fiscal imparts. Volume 2 deals with the application of the model to evaluate the City's General Ylar, of development, and s Volume 3 contains a detailed description of the model and the various formulas utilized. The intended benefits to the City as the result of this model mm development effort are; a Information that can be used to project land use mix cost/ revenue impact. Assistance in determining the quantity of various revenue producing uses which are needed to offset net cost uses. 9 Assistance in identifying costly land uses. 0 A basis for structuring future data collection needs within the City. ® Assistance in setting land use mix goals and objectives. A decision-making tool to ail in growth planning decisions. a A means for determining the potential fiscal impact of large development proposals or zone changes. 0 Assistance in comparing various alternative land use and density cc figurations. A A basic method for forecasting future budget impacts. ry A procedure for determining how City services could be deli- vered to new development. 0 An analytical method of assessing the costs and revenues associated with new development, 0 Assistance in comparing various alternative commercial and industrial development plans. 0 A methodology for forecasting "city-wide" commercial and industrial revenue. a Basic tk.ols which can assist decision-makers in the preparation of redevelopment plans. r S` 4 k i 11Qtt, :t�ftul "$ The basic features of the fiscal impact model can be summ... �d as follows: V; ` (1) considers 24 different revenue sources to the City including property tax, other local taxes, licenses and permits, revenue from other agencies, development oriented charges, other revenues, and water fees and F service charges (2) considers 10 different City public service cost sources including general government and administration, public safety, harbors, beaches and parks, public works, library and water service (3) allows for capital expenditures for public safety, harbors, beaches and parks, public works and library facilities a (4) annual costs for capital improvements can be determined on the basis of cash, bond financing (with or without sinking fund retirement), straight-line amortization or capital recovery amortization at a specified interest rate (5j Qives annual projections for each revenue and cost source on a cash flow basis or on the basis of today`s dollars (6) presents annual revenue and cost totals as well as annual revenue-to-cost ratios xi• In this volume, is presented a detailed discussion of the derivation of the revenue and cost factors utilized in the basic methodology and an application is made to selected residential, commercial and industrial land uses of specific types should they exist in the City today. rap 1.0 INTRODUCTION ;. This section presents the development of a fiscal Impact methodology _; and the derivation of the corresponding revenue and cost factors which can be us, to ,aluate development proposals in the City of Huntington Beach. The dis- ` n p, ented is based primarily on previous research* conducted under the HUn Comprehensive Planning Assistance Grant program by Ultrasystems in cor,,inction wi'h the County of Orange, the City of Anaheim and the City of Orange. The results of this previous research have been modified accordingly to reflect the types of fiscal impacts which can be expected to occur from new w. development in Huntington Beach In particular, a computerized fiscal impact model, developed over a period of nearly 4 years, has been modified to predict the specific revenues and costs associated with development activities in the City. Appendices A and 8 in this report contain the spicific revenue and cost equations, respectively, which are contained in the Huntington Beach version of this computerized fiscal impact model . Appendix C contains the output formats used to present the revenues and costs. In the determination of tow to modify this previously developed model, extensive review was undertaken to determine the major revenue and cost sources in the City which are associated with development activities. It was determined that the revenue sources expected to be impacted by new development y, are. (I) Property Tax r (2) Other Local Taxes (2.1) Sales Tax (2.2) In-Lieu Water• Utility Tax (2.3) Water Utility Tax (2.4) Gas Utility Tax z (2.5) Telephone Utility Tax `w (2.6) Electricity utility Tax (2„7) Cigarette Tax (2.8) Real Property Transfer Tax *See: user's Manual on Economic and Environmental Growth Impact Analysis., prepared�iy t o"f`naROm and M—rasystems, Inc., 30 June t 77 i-a r; x { lu b (3) Licenses and Permits (3.1 ) Animal Licenses ..._ (3.2) Business Licenses + (4) Revenue From Other Agencies I 4' (4.1) Trailer Coach License Fees (4.2) Alcoholic Beverage Fees (4.3) Motor Vehicle In-Lieu Fees t (4.4) Gasoline Tax (5) Development Oriented Charges (5.1) Permit & Processing Fees (5.2) Parks & Recreation Fees (5.3) Library Fees (5.4) Sewer Fees (5.5) Drainage Fees (6) Other Revenues (6.1) Fines, Forfeitures & Penalties (6,2) Miscellaneous (7) Water Fees and Service Charges (7.1) Water Fees (7.2) Water Sales u Similarly, the cost svarces expected to be impacted by new development are: (1) General Government and Administration (2) Public Safety (2.1) Police Protection (2.2) Fire Protection (3) Harbors, Beaches & Perks (3.1) Harbors &: Beaches (3..2) Parks & Recreation (4) Public Works (4.1) Administration & Engineering (4.2) Facility and Equipment Maintenat,ce (4.3) Street Maintenance l-2 � r 2 s x fi (5) Library (6) hater Service r. Tn order to predict these revenues and costs, it was necessary to review past historical trends and then determine on what basis they would be. derived. The latter required the develot °nt of appropriate revenue and cost factors utilizing a variety of data sources including annual statements of expenditures and receipts, audited financial statements, and miscellane�js data on land use acreage, footage of streets and annual population estimates. To illustrate the esults obtained, Table 1 .1 presents a summary of the per F`~ capita revenues over the period FY 74 through FY 79, Table 1.2 presents the revenue factors derived for estimating revenue impacts, Table 1.3 presents a summary of annual operating costs over the period FY 74 through FY 79, and Table 1.4 presents the cost factors derived for estimating cost impacts. Section 2..0 presents a detailed discussion of the derivation of these revenue factors and Section 3.0 presents a detailed discussion of the derivation of these cost factors. Finally, Section 4.0 presents illustrative A examples of the use of these factors in predicting the fiscal impacts in the City for selected development proposals. 1-�3 Table 1.1 Historical Summary of City of Huntington Beach Annual Per Capita Revenues 1971-1974 1974-1975 1975-1976 1976-1977 1977-1978 1978-1979 Historical Annual Per Per Per Per Per Per Change in Revenue Source Total Ca ita(l) Total Ca itat�� �7otai Ca ita�33 Total Ca ita�4� Total Ca ita(5) rota, Cap Per Ca i Sales and Use Tax $3,300,470 $22.98 $3,521.982 $23.81 $4,197,518 $27.56 $5,205,890 $32.93 $6,147,068 $38.11 $7.261,302 $43.31 + 13,5 Cigarette Tax 477,571 3.13 467,668 3.16 514,672 3.38 498,782 3.15 550,503 3.41 534,407 3.19 + 0.9 Animal Licenses: 117,585 0.82 78,214 0.53 104,564 0:59 150,866 0.95 131,682 0.82 120,739 0.72 - 2.6 Ebtor Vehicle in-Lieu Pees 1,339,934 9.33 1,280,409 8.66 1,413,448 9.28 1,682,217 10.64 2,059,030 12.77 2,341,592 13.99 + 8.4 4. Gasoline Ta. 11296,089 9.03 1,302,634 8.81 1,331,502 8.74 1,433,571 9.07 1,511,227 9.37 1,587,594 9.48 + 1.0 fines, Forfeitures and Penalties 510,377 3.55 538.476 3.64 499,753 3.27 593,325 3,75 720,518 4.47 1,.135,452 6.01 + 11.1 Miscellaneous 384,610 0.45 441,619 0.47 572,113 0.70 555,474 0.56 850,566 0.90 910,139 1.07 + 18,9 M0 Population A 143,600 (2 population - 147,900 ((3 population - 152,300 (4 population = 158,100 (51 population - 161,300 6 population - 167,419 7 over the period FY 74-FY 79 OMNI I I E� Mw ,..�.- v r Table 1,o2 City of Huntington Beach Revenue Factors ESTIMATED 1978-1979 HISTORICAL 1979-1980 FACTOR ANNUAL FACTOR REVENUE SOURCE M MIS FOR DETERMINATION VALUE CHANGE % VALUE Property Tax Per dollar assessed value(l) (2) — Other Local Taxes Sales Tax Per capita for residential projects $43,31(3) 13.5 $49.16(3) Per square -foot gross leasable area (See Section 2,2.1) for commercial and industrial projects In-tied Water Per dwelling unit for residential projects kSee Section 2.2.2) Utility Tax Per business for commercial and industrial (See Section 2.2.2) projects Water Utility Tax Per dwelling unit for residential projects (See Section 2.2.3) Per business for commercial and industrial (See Section 2.2.3) projects Gas Utility Tax Per dwelling unit for residential projects (See Section 2.2.4) Per business for commercial and industrial (See Section 2.2.4) projects Telephone Utility 'fax Per dwelling unit for residential projects (See Section 2.2.5) Per business for commercial and industrial (See Section 2.2.5) projects Electricity Utility Tax Per dwelling unit for residential projects (S2e Section 2,2.6) Per business for commercial and industrial (See Section 2,2.6) projects Cigarette Tax Per capita for residential projects 3.19 -0.9 3.16 Real Property Transfer Tax Per dollar of sales .00055 None .00055 1 Based onthe I%' property tax limitation of the Jarvis-Gann Initiative and the portion of property tax revenue received by the City (2) Limited to a maximum of 2% by the Jarvis-Gann Initiative (3) This is a city, 'de average; however, for individual project *he factor value used would be based on the estimated family income as 4t relates to the income requirement for house purchase. s Table 1 .2 (Continued) ; ESTIMATED 1978-1979 HISTORICAL 1979-1980 FACTOR ANNUAL FACTOR REVENUE SOURCE BASIS FOR DETERMINATION VALUE CHANGE 9; VALUE Licenses and Permits Animal Licenses Per capita for residential projects 0.72 -2.6 0.70 Business Licenses Per business for commercial and industrial (See Section 2.3.2) projects Revenue From Other Agencies Trailer Coach License Per dollar of coach value (See Section 2.4.1) Fees Alcoholic Beverage Fees Per business for commercial projects (See Section 2.4.2) Motor Vehicle In-Lieu Per capita for residential projects 13.99 8.4 15.17 Fees Gasoline Tax Per capita for residential projects 9. 18 1 .0 9.57 Development Oriented 'Charges Permit & Processing Fees Per dwelling unit for residential projects (See Section 2.5.1) Per acre or per sq. ft. for commercial and (See Section 2.5.1) industrial projects Parks & Recreation Fees Per dwelling unit for residential projects (See Section 2.5.2) Library Fees Per dwelling unit for residential projects (See Section 2.5.3) Sewer Fees Per dwelling unit on per acre for residential (See Sec{ion 2.5.4) projects Per acre for commercial and industrial (See Section 2.5.4) projects Drainage Fees Per acre (See Section 2.5.5) Other Revenues Fines, Forfeitures & Per capita for residential projects 6,01 11 .1 6.68 Penalties Miscellaneous Per capita for residential projects 1 .07 18.9 1 .27 Table 1.27.2 (Continued) -- ESTIMATED �� •. 1978{,1979 HISTORICAL 1979-1980 FACTL7n ANNUAL FACTOR REVENUE SOURCE BASIS FOR DETERMINATION VALUE CHANGE % VALUE Water Fees A Service Charge, rater Fees Per dwelling unit or per acre for (See Section 2.8.1) residential projects Per .acre for commercial and industrial (See Section 2.8.1) projects Water Sales Per dwelling unit for reside -tial projects (See Section 2.8.2) Per business for commercial and (See Section 2.8.2) industrial projects B Table 1.3 Historical Summary of City of Huntington Beach Net Annual Expenditures(l) ' Historical Annual Cost Soiree 1973-1974 1974-1975 1975-1976 1976-1977 1-977-1978 197ii-19799 Chan e % t2J General Government ;,id $3,015,849 $4,348,823 $4,554,685 $5,418,141 $6,314,581 $8,153,936 + 16.4 Administration Public SaLqj Police "rotectio❑ 4,600,501 5,394,818 6,215,791 7,382,782 8,420,844 8,991,331 + 14.3 Fire Protection 2,883,614 3,260.778 3,761,025 4,321,509 4,816,562 5,456,237 + 13.6 Harbors, Beaches and Parks _ Harbors and Beaches. 1,038,194 1,058,108 1,123,834 1,196,524 1 080,693 1,105,900 + 1.3 Parks and Recreation 1,039,264 1,299,010 1,320,055 1,386,767 1,590,642 1,293,037 + 4.5 Public Works Administration and Engineering 746,388 778,430 851,927 986,971 1,025,466 1,051.180 + 7,1 facility and Equipment 567,837 882,883 1,311.256 1,808,402 1,929,995 1,735,524 + 25.0 Maintenance Street Maintenance 1,935,795 2,252,193 2,V 266 2,113,707 2,362,019 2,682,051 + 22.6 1.1 bra ry 622,593 756,867 939,3P.6 991,209 1,203,855 1,039,717 + 10.8 Water 2,387,381 3,023,632 3,297,058 3,548,017 3,649,271 3,534,510 + 8.2 (7j"—OcM Oes capital expenditures and includes consideration of reimbursement revenues (2) over the period FY 7" - FY 79 G qe it Y+ i�'. i+ '+ y ..�-1 4' 3 J 9 Table 1.4 City of Huntington Beach Cost Factors ESTIMATED t 1978-1979 HISTORICAL 1979-1980 FACTOR ANNUAL FACTOR 'COST SOUR CE BASIS FOR DETERMINATION VALUE CHANGE VALUE General Government & Administration Per capita for residential projects $ 37,89 12.6 $ 42.68 Per acre for commercial an, industrial projects 684.33 12.5 770.13 Public S Police Protection Per capita for residential projects 41.73 10.7 46.23 Per square foot for commercial and indristrial projects (See Section 3,2,1) Fire Protection Per capita for residential projects 25.36 10.0 27.83 Per square foot for conviercial and industrial projects (See Section 3.2.3) Harbors, Beaches & Parks Harbors & Beaches Per capita for residential projects 1.30 1.4 1 .32 Parks & Recreation Per capita for residential projects 7.72 1 .3 7.62' Public Works Administration & Engineering Per acre 38.25 3.5 91 .34 Facility & Equipment Maintenance Per acre 146.70 20.8 176.07 Street Maintenance Per linear foot of streets 1.51 2.7 1 .55 Library Per capita for residential projects 6.21 7.4 6.67 Water Service Per dwelling unit for residential projects (See Section 3.6) Per business for commercial and industrial (See Section 3.6) projects r �4�» .ill l F: t I 75;eb tt. f � 2.0 REVENUE SOURCES In this section, a discussion of each of the major revenue sources -from new development is presented along with the derivation of the estimating equations for predicting future revenues. The specific detailed equations are given in Appendix A. j; 2.1 Property Tax Ma Property tax revenue is based on use of the general fund property ., tax rate applied to assessed valuation, which is defined to be 25% of the assessor market value. For 1977-1978 this tax rate was $1.55 per $100 assessed valuationn. Because of the recent of Pro osition 13, the l ' passage P total property tax revenue is limited to 1010 of the assessor market value (relative to 1975-1976) and is limited to an annual increase of no more than 21. As 4 result, the City of Huntington Beach does not actually receive the total revenue derived by applying this tax rate to the assessed valuation, but generally a smaller portion. For estimation purposes, it is assumed that the City receives property tax revenue in the same proportion as its tax rate is to the total (i.e. , for all taxing agencies) tax rate - specifically the total* 1977-1978 average tax rate considering the City, County of Orange, and the various special districts is $$10.0593 of which $1.55, or 15.4%, is the City rate. Therefore, it is assumed that the City receives 15.4% of 1% of the assessor market value. The derivation of property tax revenue is thus obtained from Av??�age� Fraction of (Property tax Number m property tax, X limitation .t of OU`s value J' factor = .01 revenue received pe,� DU / by City = .154 for residential projects, and from (Average,) Fraction ofProperty taxNber market property tax aF acres X value factor ianrevenue receveper a, factor = .O1 by City = .154 for coi,m, -vial and industrial projects *County' of Orange Tax hates 1977-1978 2-1 m f t R { ys% 2.2 Other Local Taxes 2..2.1 Sales Tax t Sales tax revenue is generally estimated on the basis of per 4' capita sales tax revenue for residential projects and on the basis of sales per square foot for commercial (or industrial) projects. " Referring to Table 1.1, historical trends show the following: Sales Tax Revenue Fiscal Year Revenue : Population = Per Capita 1978-1979 - $7,251,302 167,419 $$43.31 1977-1978 5,147,068 161 ,3GO 38.11 1976-1977 5,205,890 158,100 32,93 1975-1976 4,197,518 152,300 27.56 1974-1975 3,521,982 147,900 23.81 1973-1974 3,300,470 143,600 22.98 The approximate rate of increase per year from FY, through FY79 is 13.5%�, which implies that in 1979-1980 the estimated sales tax revenue per capita is (1.135)($43.31) _ $49.16. -} The derivation of sales tax revenue from residential projects Is generally obtained from x (Average Sales tax Number number of y. revenue of Ru's people .per I I per capita) , where the sales tax revenue per capita factor used can either be a citywide average such as that derived above or can be derived on the basis of family income. In the latter case, dwelling unit market value can in many cases be used (at least fog new construction units) to estimate family income. An approximate rule of thumb for ownership units is that market value is typically 2-1/2 times annual inco�e or, equivalently, annual income is equal to 40% of market value. On this basis, one can use the sales tax tables generated by the Internal Revenue Service to estimate the taxable retail expenditures by family income and family size In California (see Table 2.1). The City of Huntington 2-2 1tM5yxy Table 2..1 Distribution of Taxable Retail Expenditures(l) by Family Size . Family Size (Persons) ' � family Income ,2 _ 3-4 5 6 & Over Under $3,000 850 $1 ,017 $1,133 $1,133 x., $3,000- 3,999 11100 1 ,300 ',450 1,450 t t " 4,000- 4,999 1,333 1 ,550 1,733 1 ,733 5,000 5,999 1 ,550 1,783 2,000 2,000 6,000- 6,999 1,767 2,017 2,250 2,267 7,000- 7,999 1 ,967 2,233 2,483 2,533 81000 81999 2,167 2,450 2,717 2,783 91003- 9,999 2,350 21650 2,933 3,017 10,000-10,999 2,533 2,850 3,150 3,250 11,000-11,999 2,717 3,050 3,367 3,483 12,000-12,999 2,900 3,233 3,567 3,700 13,000-13,999 3,067 3,417 3,767 3,917 14,000-14,999 3,233 3,600 3,967 4,133 15,000-15,999 3,400 3,783 4,150 4,333 16,000-16,999 3,567 3,967 4,333 4,533 17,000-17,999 3,733 4,133 4,517 4,733 18,.000-18,999 3,883 4,300 4,700 4,933 19,000-19,999 4,033 4,467 4,883 5,133 20,000-49,999 (2) (3) (4) (5) (1) $ased on Internal Revenue Service optional sales tax deductions for California residents divided by .06. (2) 2420 + .0807 Income (4) 2930 + ,0977 Income (3) 2680 + .0893 Income (5) 3080 +• .1027 1h, :ome 2-3 �r. rrlt sterns; Beach then receives approximately 11 in the form of sates tax revenue. This discussion suggests the use of a formula of the form to Taxable ' (01umberf retail /Sales tax revenue DU,s X expenditures X per $1 retail .: per family sales = .0I per DU In the commercial (or industrial) project case, sales tax revenue ... can generally be derived from Number Gross leasable Annual Sales tax revenue of acres X area (GLAD X sales per per $1 retail x per acre sq.ft. GLA sales = .01 If a developer is able to provide an estimate of the annual sales per sq.ft. GLA} then this should be used; otherwise, Urban Land Institute factors could be used. For example, in Huntington Beach there are three basic types of shopping centers which are plausible fOr the size of the city and the surrounding support areas, namely, neighborhood, community and regional centers. A neighborhood center provides for the sale of convenience goods (foods, drugs and sundries) and personal services (laundry and dry cleaning, barbering, shoe repairing, etc,) for the day-to-day living needs of the immediate neighborhood. It is built around a supermarket as the principal tenant. In theor�t, the neighborhood center has a typical gross leasable area of 50,000 square feet. The neighborhood center is the smallest type of shop- ping center. In addition to the convenience goods and personal services of the neighborhood center, a community center provides a wider range of facilities for the sale of soft lines (wearing apparel for men, women, and children) and hard lines (hardware and appliances). The community center makes greater depth of Merchandise available — variety in sizes, styles, colors, and prices. It is built around a junior department store, variety store, or discount department k store as the major tenant, in addition to a supermarket. It does not have a full-line department store, though it may have a strong specialty store, In *Frost Fable 2.1 2-4 ,y s F theory, the typical size is 750,010 square feet of gross leasable area, but f °- in practice the range may vary. The community center is the intermediate or ir-between type of center, most difficult to estimate for size and pulling power. :. ` qo regional center provides for general merchandise, apparel, k. + furr,:vur :, 7 ,ie furnishings in depth and variety, is well as a range ;; of 4n-, recreational facilities. It is build aroundd one or two full- line s'xWres of generally not less than 100,000 square feet. In throrjr a Yt—ical size for definitive purposes is 400,000 square feet of gross. s. ;(At ,rya. The regional center is the second largest type of shopping cater. As such, the regional center provides services typical of a business district, yet not as extensive as a super regional, which generally ranges from 750,000-1,000,000 square feet in size. Tables 2.2-2.13 present typical annual sales results for neighbor- hood community and regional centers in the Far best based on a 1978 survey* by the urban Land Institute. These factors could be used as appropriate in lieu of any other more valid estimates. On the other hand, State Board of Equalization taxable sales data could also be used to obtain gross estimates of sales tax revenue on a per u business basis, As an example, Table 2.14 presents a summary of the average annual taxable sales per business for each of sixty-nne different business w categories in the City over the 5-year time period 1974-1978. 2.2.2 In-Lieu Water Utility Tax In-lieu water utility tax is a reimbursement to the City from the water enterprise and is derived on the basis of 15" of the total way, ;lity operating revenue which consists of (1) metered sales, (2) fire service sales, (3) irrigation sales, (4) municipal sales, and (5) construction sales. Metered sales generally comprise on the order of 96-«971% of the tota' water utility operating revenue and thus is the major contributor to the in-lieu water utility *Dollars Cents of Shopping Centers; 1978, Urban Land Institute 2-5 1 • C. '- e Table 2.2 Tenants Most Frequently Found in Neighborhond T Shopping Centers Median Sales ` Volume per Median Square Foot Tenant Classification Rank GLA s .ft. GLA GENERAL MERCHANDISE � Variety Store l9 10,160 $ 38.00 FOOD Supermarket 1 22,648 178.73 FOOD SERVICE Restaurant without liquor 7 2,400 71.95 Restaurant with liquor 9 3,600 75.65 Fast food/Carry cut 8 1 ,410 96.29 CLOTHING Ladies ready-to-wear 6 1,680 50.04 HOME APPLIANCES/MUSIC Radio, TV, Hi-Fi 14 2,000 98.14 BUILDING MATERIALS/GARDEN Hardware 18 6,000 34.89 GIFT/SPECIALTY Cards and gifts 16 1,810 39.98 JEWELRY AND COSMETICS Jewelry 20 970 61.32 LIQUOR Liquor and wine 12 2,300 130.72 DRUGS Super drug 17 15,000 89.33 x. Drug 5 4,900 78.31 PERSONAL SERVICES Beauty 2 1,200 47.65 Barber 3 640 3G.97 Cleaner and dyers 4 1,600 33.14 Laundry 10 1,500 16.76 FINANCIAL Banks 13 2,539 --- Real estate 15 1 ,200 - - OFFICES Medical and dental 11 1 ,064 -- 2-6 i i i a r, - t t3 i' ag rx 614a*14M , • Table 2.3 high Sales Volume Tenants in Neighborhood : ; . Shopping Centers Median Sales Volume per Square Foot Tenant Classification GLA Garden $205.08 Supermarket 178.73 t Liquor and wine 130.72 "` Convenience market 121.51 F Candy and nuts 102.21 Radio, TV, Hi-Fi 98.14 Luggage and leather 97.63 is t food/Carry out 96.29 ce cream parlor 89.46 Super drug 89.31 Table 2.4 Low Sales Volume Tenants in Neighborhood Shopping Centers Median Sales Volume per Square Foot Tenant Classification GLA Music studio and dance $ 6.29 Cosmetics 14.16 Floor coverings 16.61 Laundry 16.77 Plant store 18.22 Bowing alley 19.64 Arcade, amusement 22.18 Formal wear/Rental 22.47 Curtains and drapes 28.13 Costume jewelry 29.25 Table 2.5 Sales and Size Characteristics of Neighborhood Centers (Sample = 49) x. Gross Leasable Sales per Area (sq.ft. ) sq.ft. GLA Upper Decile 96,639 $1'94.84 Median 55,176 121.31 Lower Decile 26,835 59.74 2-.7 a Kx++ Table 2.6 Tenants host Frequently Found in Community Shopping Centers Y -`z Median Sales Volume per , Medi:�n Square Foot Tenant Classification Rank GLA(sq.ft.) GLA GENERAL MERCHANDISE Jr. department store 10 37,500 5 60.49 Variety store 17 15,780 37.90 FOOD Supermarket 2 22,384 200.93 i" FOOD SERVICE Restaurant without liquor 8 2,490 78.07 k#stuarant with liquor 18 4,150 75.86 Fast food/Carry out 16 1 ,323 115.51 r CLOTHING Ladies specialty 13 2,000 84.34 Ladies ready-to-wear 1 2,969 76.84 Menswear 7 3,040 79.10 SHOES Family shoes 3 3,024 62.27 HOME APPLIANCES/MUSIC Radio, TV, Hi-Fi 14 2,000 94.18 GIFTS/SPECIALTY Cards and gifts 6 2,000 50,04 JEWELRY AND COSMETICS Jeweiry 9 1,500 129,68 >. DRUGS Drug store 19 6,500 106.513 OTHER RETAIL Yard goods 20 4,000 45.84 PERSONAL SERVICES Beauty 4 1,200 47.05 Barber 12 612 49.64 Cleaner and dyers i5 1,800 35.64 FINANCIAL Banks 11 3,200 ._ OFFICES Medical and dental 5 846 2�8 r A Table 2.7 Nigh Sales Volume Tenants in Community Shopping Centers Median Sales Volume per :. Square Foot :ems Tenant Classification GLA # Key shop $318.1344 '� Supermarket 200.93' Showroom/Catalog store 180.51 Meat, poultry, and fish 176.62 Liquor any; wine 169.31 Jewelry 129.68 ;relit jewelry 129.50 Costume jewelry 126.23 Fast flood/Carry out 115.51 Lams 1088 25 Table 2.82.8 Low Sales Volume Tenants in Comunity Shopping Centers —Median Sales Volume per Square Foot Tenant Classification GLA Bowling alley $ 12.12 Laundry 20.53 Candle 23.45 Cinemas 30.22 Y Floor coverings 30.83 Interior decorator 33.04 Arcade, amusement 33.46 Cleaner and dyers 35.64 Art gallery 36.04 ,,Variety store 37.90 Table 2,.9 Sales and Size Characteristics of Community ' Centers (Sample = 39) -- - Gross Leasable Sales per Area s .ft.. s .ft. GLA Upper Dec le 255,574 $137.67 Madian 149,370 93.08 Lower Decile 77,227 53.47 2- s 1 .�. Table 2.10 Tenants Most Frequently Found in Regional Shopping Centers Median Sales Volume per Median Square Foot # �. Tenant Classification Rank GLA s .ft. GLA GENERAL MERCHANDISE Department store 19 131 ,000 $ 65.65 FOOD Candy and nuts 13 732 121.55 FOOD SERVICE Restaurant without liquor 15 3,003 87.81 Restaurant with liquor 18 5,000 78.70 Fast food/Carry out 9 1,100 125.17 z CLOTHING Ladies specialty 4 2,038 101%13 Ladies ready-to-wear 1 4,003 91.10 Menswear 2 3,417 99.18 Family wear 16 6,157 77.63 Unisex/Jean shop 7 2,031 138.98 SHOES Family shoes 3 3,663 88.29 Ladies shoes 8 3,164 82.99 Mens and boys shoes 11 1,492 117.65 HOME APPLIANCES/MUSIC Radio, TV, HiFi 17 2,361 127.90 GIFTS/,SPECIALTY Card, and gifts 6 2,265 76.92 Books and stationery IV 3,120 96.04 JEWELRY AND COSMETICS Jewelry 5 1,792 180.32 PERSONAL SERVICES Beauty 12 1,280 68.13 Barber 20 800 61.61 "INANCIAL Banks 14 3,370 --- 2-10 F� a JAWS ' Table 2.11 High Sales Volume Tenants in Regional Shopping Centers 1- , Median Sales Volume ppr . Square Foot Tenant Classification GLA " m, Key shop $311.37 Cameras 215.84 Tobacco 191.28 Jewelry 180.32 ` Pleat, poultry, and fish 177.57 Pretzel shop 173.64 Convenience market 171.40 Creait jewelry 167.55 +t `. Costume jewelry 163.56 Supermarket 148.95 Table 2.12 Low Sales Volume Tenants in Regional Shopping Centers Median Sales Volume per Square Foot Tenant Classification GLA Bawling alley $ 10.91 Laundry 24.07 Cinemas 37.16 Cleaner and dyers 39.93 Figure salon 40.74 Variety store 42.71 Automotive (T8&A) 48.46 Upholstering 49.05 Di--count department store 50.76 Arcade, amusement 54.98 Table 2.13 Sales and Size Characteristics of Regional Centers (Sample = 22) Gross Leasable Sales per Area sq.-ft.) sq.ft. GLA Upper Dec'ile 615,085 $115.35 Median 345,025 80.88 Loiter Decile 161959 55.34 2-11 '>z �w ... JG t:. _:' S� ;v ii .,k 3 a' Y.... ,� �. � C.. � •..y � A x`. _:. � �'"'.� _� ...� v.. � �`"' .�_ '.,� Mx:. r• Table 2.12.14 Average Annual Taxable Sales by Type of Business in the City of Huntington Beach Yr 1974 1975 w 1976. _ _ ... 1977 - w 1978 Average n +T Average,_. Average Ave;3ge Average Taxable Taxable Taxable Taxable Taxable Number of Sates Number of Sales Number of Sales Number of Sales Number of Sales Business Per Business Per Business Per Business Per Eusiness Per General Business Area Permits Business Permits Business Permits Business Permits Business Permits Business Norm's Apparel Stores 28 $ 263,429 34 $ 224,206 35 $ 229,143 40 $ 230,300 52 $ 277,885 Men's Apparel Stores 12 230,750 is 188,533 14 229,500 12 303,000 13 280,692 Family Apparel Stores 12 152,250 13 79,308 11 2,909 13 122,692 18 150,667 Shoe Stores 16 209,063 16 195,063 16 .:04,688 17 194,059 18 212,167 Variety and General Stores 8 370,000 7 188,857 4 219,250 3 N.A. 6 937,167 0epsrtment and Dry Goods Stores 17 3,171,824 20 2,950,250 19 3,429,368 17 4,245,765 20 3,787.950 Art, Gift and Novelty Stores 18 25,500 20 28,850 29 24,103 32 26,500 37 35,243 Sporting Goods, Bicycle and Surfbr,ard Stores 19 157,842 23 134,130 28 124,000 27 149,407 34 144,147 Florist Shops 7 46,571 11 30,182 14 34,357 18 43,333 19 54,368 Photographic Equipment and Supply Stores 3 N.A. 5 125,600 4 205,250 5 257,600 7 270,429 Music Stores 6 93,500 10 106,000 7 140,a2o 11 212,364 12 297,750 ' Stationery and Book Stores 11 94,545 10 80,500 14 73,786 21, 62,571 25 65,880 Jewelry Stores 9 205,444 9 224,222 14 171,643 15 189,200 16 203,125 Office, Store and School Furniture and Equipment Stores 2 N.A. 4 N.A. 4 8,750 7 7,571 8 24,125 Full-Titre Specialty Stares 46 53,065 44 55,932 61 58,918 78 55,526 93 53,538 Crocery and Food Stares without Alcoholic Beverages 19 265,316 21 253,381 27 251,815 28 281,286 40 150,075 Liquor Stares 28 288,429 34 270,353 35 293,143 34 3iO,B82 35 347,200 i Y. nMjrARV Table 2.14 (Continued) a 1974 1975 6 197. 1977 1978 Average Average Average :Average Average Taxable Taxable Taxable Taxable Taxable Number of Sales Number of Sales Number of Sales Number of Sales Number of Sales Business Per Business Per Business Per Business Per Business Per rieneral Business Area Permits Business Permits Business Permits Business Permits Business Permits Business Eating and Drinking Places without Alcoholic Beverages 91 $ 171.407 107 S 162,075 116 $ 178,440 136 $ 165,375 148 $ 186,486 Drug Stares 19 470,368 21 458,476 26 437,231 27 460,074. 29 494,655 Non-Store Retailers ,._11-Time Only) 128 7,016 135 8,674 152 7,914 175 14,234 181 13,249 Part-?'ime Permittees 553 4,982 772 5,228 915 9,127 1,047 10,069 1,158 6,700 Household =nd Home Furnishing Stores 34 515,206 36 448,500 49 394,469 52 446.803 64 370,434 Radio and Household Appliance Stores 15 208,533 14 243,285 14 337,214 20 388,600 23 488,435 ;wSecond-Hand Stores 6 17,833 8 11,750 10 9,200 8 4,750 5 5,600 -Grocery Stores with Beer and Wine Licenses 18 106,222 18 119,389 i8 126,889 20 119,650 21 118,190 Grocery Stores with General Liquor Licenses 17 1,074,412 19 1,179,474 20 1,216,450 71 1,373,810 24 1,876,417 Eating and Drinking Places with Beer and Wine Licenses 34 88,382 39 87,308 42 95,524 50 105,160 60 104,817 Eating and Drinking Places with General On-Sale Licenses 32 393,938 37 411,973 35 458,943 40 501,250 46 526,370 Garden Supply and Equipment Stores 9 190,556 11 191,818 11 218,909 12 199,333 11 231,000 Lumber and Building Material Dealers 6 840,667 8 1,393,000 10 3,262,900 14 474,707 16 3,542,063 Hardware Stores 7 649,143 10 512,100 11 501,909 12 507,417 13 483,308 Plumbing and Electrical Supply Stores 0 N.A. 0 N.A. 2 N.A. 3 N.A. 3 N.A. Paint Glass and Wallpaper Stores 6 434,400 6 408,333 6 484,167 7 405,000 6 371,250 New Auto: Vehicle Dealers 15 3,864,533 15 4,364,933 16 5,079,563 15 6,464;333 15 7,351,067 Automotive Supply, Automobile 'Trailer Dealers and Trailer Supply Stores 28 148.321 2p 138,214 30 163,233 35 196,200 41 168,732 , t 3 �' i€. n k' �. � x. R .. i.. .+ � k W sC afs i.: jn Yk- �,: Y.: . 4:-". ,4 Via:, � ♦ # Y% Table 2.14 (Continued) 1914 1975 1976 19" � w _ 1978 . .�.....� ._...._.....�..m...._ .,_........�..._,.. ....� ��............,.,_. ...._ .-„ Yam.. - AJ(eage Average Average Average ,. -age Taxable Taxable Taxohic Taxable Taxable Number of Sales Number of Sales Number of SnIta Humber of Sales Number of Sales Business Ptr Businesz "er Business Per Business Per Business Per General Business Area Permits 8usincs Permits NlsirlPis Permits Casiness Permits Business Permits Business Service Stations 37 S 326;481 89 $ 374,393 85 $ 445,300 86 $ 483,198 82 $ 575,024 Usee`!-,to Vehicle 17e;iers 4 8`1253 5 81,400 6 7[,000 8 217,000 9 1291B89 e9at and:Moforcycle dealers and Seypply Stores 18 142,667 15 162,333 12 388,750 15 505,733 18 344,278 Automotive Repair Shops and Garages 43 81,070 52 72,7?1 52 78,323 78 73,133 88 67,97i Repair and Nand Trade Snops 84 3',F81 96 38,323 109 41,000 124 40,008 135 58,437 Portrait `itudios 10 39,500 B 51,750 10 44,300 10 46,50n 110 591000 .Clubs and Places of Amusement with +' On-Sale General Licenses 3 N.A. 3 N.A. 3 i<.A. 5 83,000 5 88,C00 Shoe Repair Shops 7 5,774 7 6,715 8 4,250 8 51500 9 6,111 Morticians and Undertaking Parlo s 4 :4,250 4 53,000 4 64,250 4 17,000 4 109,000 Personal service .naps and Amusement places without On-Sale General Licenses 77 12,4is 85 13,765 110 14,318 140 14,221 163 15,626 Construction Conaractors and loan ifacturers and Wholesalers of Lumber and Building )4ate,4al 35 147,829 33 145,364 30 206,900 42 181,810 52 17):712 Manufacturers and Wholesalers of Store and Of`tce Equipment 3 N.A. 5 86,200 6 69,500 10 59, `. " 10 59,100 Ilealth Services it 18,182 13 21,E31 16 Z7,313 19 43,632 32 21,!,25 Riblic Utilstier and Concerns Prnviding transportation and Allied Services 10 ! 38,143 9 60,000 12 67,,533 16 94,063 N Win , Table2,(4 (Continued) . ' _.. �1174 -.1975w...��_ 1916 1977 1978 Average AveragE - Average Average .w. Average Taxable Taxable Ta;;abte Taxable Taxable Number of Sales ftt. e-of Sales Number of Sales Number of Sa,4s dumber of ' les $uslaess Per Business Per Business Per Business Per Business Per General Busine, ss Acea Permits Btusinesss . Permits Buss nes'r. Permits Business. Permits_ Business Permits But ,less Vla;sfacturersandWholesalers of Electronic 4-id Electrical Equipment 18 $ 7,944 23 $ 14,783 23 $ 8,000 22 $ 25,136 28 $ 66,464 Dover". otal Agencies, Associations, Fraternal, Religious and ;octal 0rganfzattons 29 56,U2 28 70,429 30 70,300 30 720600 29 77,517 Business Service Yoncerns 76 12,289 80 15,867 83 A0 .120 104 59,269 111 42,703 Pry*ners a f Wholesaler- of Foo. Tobe .00, Alcotrolic Beverages arnl sarr Prodects Including Food '. Protttsing Equipment 22 11,955 19 35,053 20 42,ti00 21 38,333 20 62,35y Kanufactt rersand Wholesalers f Text+te Products, :!ouseholo Furniture and Furnishings 47 36,553 5I 54,686 60 38,'z7 70 32,829 77 46,935 efanewtururs and Wholesa 1-s of Drugs, Ghericals and A'111ed Products 9 37,222 13 38,462 11 45,706 la 79,368 24 200,625 Producers and "stributors of Notion Pictures and Manufacturers ?tid Wholesalr,,a of Motion Picture Eq0,,-etez 4*d Supplies 3 N.A. 4 48,750 6 45,667 6 52,667 5 66,000 Paw,facturers anu Wholesalers of Automotive Vehicles, Tratltrs, 62,745 Mtomutive Parts and Equipment Z3 26,522 28 38,107 34 45,559 30 83,300 55 Nanufazturers and Distributors of Transportation F.q)ipment Other than Automotive 12 376,667 16 741,063 60 82,450 29 28,931 32 77 J00 y _ r � •• '� � ^l '"Kim+ ��'. _ A, ^ g � r Table 2,14 (Continued) F 1914 1975 1976 1977 1978 Average Average Average Average Average Taxable Taxable Taxable Taxable Taxable Number of Sales Humber of Sales Number if Sales Number of Sales Number of Sales Business Per Business Per Business Per Business Pe, Business Per 6enetal Business Area Permits Businc_s Permits Business Permits Business Permits Business Permits_, Business Producers and Refiners of Petroleum, Wholesalers of Petr,)leum Products, and Manufacturers and Distributors of Oil Well Rofining and Service Station Equipment 6 S 114,333 4 $ 619,000 5 $ 258,200 5 $ 209,800 5 $ 215,600 Producers and Distributors of Heavy ,,ndustrial Equipment and Machinery `!•E.C•} 30 44,200 35 31,714 47 26,596 52 50,385 72 45,861 Pub'1 skiers Producerp and n,strihutors Ligl*t Industrial Cquignent (N.E,C,} c 0, and Art Other Permittees (N.E.C.l 98 35,6;i3 112 40,500 148 41,?36 13v 42,361 415 2.200 N.E.L. = Not elsewhere classified SOURCE: California State Board of Eoualization f i ew tax revenue. Table 2.35 presents estimates of average annual water revenue l `. Y_': '" and ---lieu water utility tax revenue on a per dwelling unit basis for ' selected residential land uses and on a per business basis for selected : commercial and industrial land i-ses, all based on t e results of a survey conducted by the City Planning Department. The derivation of in-lieu water utility tax revenue is generally . obtained from (In-lieu .ater Number X utility tax �of DU'_ revenue per DU; for resid-ntia', projects, and from Number Number of In-.1 eu grater x of acres X businesses X ( utility tax revenue pe-- acre per business for commercial and industrial projects. .; 2.2.3 Water Utility Sox A` 5% tax is imposed on the water service charge for each user of water in the City. On this basis, Table 2.15 also presents estimates of the average annual water utility tax revenue on a per dwelling unit basis for selected residential land vses and on a per business basis for selected com- mercial and industrial land uses.. The derivati n of wager utility tax revenue is generally obtained ., from. Number (Water utility tax of DU's \revenue per DU for residential projects, and from umber X (Number of (Water utility cofacres businesses Y, tax revenue �> \per acre per business for commercial and industrial projects. 2-17 Table_ 2.15 Average Annual Water Revenues and Water Consumption for Selected Land Uses in the City of Huntington Beach WATER REVENUE(8) IN-LIEU WATER WATER ANNUAL � WATER UTILITi UTILITY CONSUMPTION` TYPE 0P LAND USA _ SALES � TAX TAX _ (100 it1) Resideatial Low Densit 0-7.DYacrea Single Family (Detached) $67.23 $10.08 $3.36 161 .4 Cones,;mi nium 43.37 6.51 2.17 92.0 Mobile tc..(Je 1) 52,50 7.88 2.63 io119 Medium Density (7-15 M acre Single Family (Detached) 75.61 11.34 3.78 163.5 Condomin l�:,�. 42.16 6.32 2.11 85.9 Awtman't f" � units) 61.53 9.23 3.3a 141 .8 Apartment (5+ units) 57.12 8.57 2.86 118.5 Nigh Densi t (15+ oUlacreI Condomiriv­f 28.41 4.26 1 .42 42.5 Apartment j2-4 units) 54.83 8,22 2.74 111 ,6 Apartment (5+ units) 4MO 7,46 2.49 96.5 Commercial Regional Shopping Centex Major Department Store 2,457.27 368.59 73.72 6,144,0 Restaurant 186.40 27.96 9.32 450.0 Variety 5 ue 125.81 18.87 5.29 191 .5 MaI1 $?;pp2f 45.69 6.85 2.28 48.3 S:.!rvices(3) 72.4' 10,86 3.62 10M pp Table 2__15 '\Continued} �. WATER REVENUE(B) .Vw IN-LIEU WATER WATER ANNUAL WATER UTILITY JI T ILITY CONSUMPTION(8) TYPE OF LAND USE SALES -4TAXI TAX (100 ft3) CommuohopPing Center Junior Department Store 888.75 133.31 44.44 2,269.0 Restl4rant 2511(115 37.79 12.60 910.4 Supermarket 235.00 35.25 11.35 541.5 Drugstore (4) 154.76 23.21 7.74 355.0 General Retail & Service '' 75.10 8.57 2.86 91 .9 Laundromat/Cleaners 454.61 68.19 22.73 1 ,163.0 Neighborhood Shopping Center Supermarket 4 200,78 30.12 10,04 457.0 General Retail & Srrvi ce� � 55.36 8.30 2.77 106.�` Laundromat/Cleaners 1 ,217.06 182.56 60.85 3,152. ra '. Convenience Shopping Center Mini-market 165.65 24.85 8.28 391,0 General Retail & Service(4) 106.18 15,93 5.31 196.7 General Commercial Restaurant 345.05 51 .75 17.25 869.0 Service Station 61 .93 9.29 3.10 138.0 General Retail & Service�`l� 99.70 14.96 4.99 203.0 Hotel/Motel 5,428.48 814.27 271 .42 10,353.0 Commercial Recreation Golf Course 1,101.37 166.11 55.37 2,936.0 Airport 599.36 89.90 29.97 1,507.0 Sports Club(S) 522.k2 78.36 26.12 1,306.0 OTfice/Professional 10.15 1 .52 0.51 24.0 M1 h .,... .tr Table 2.15 (Continued) WATER REVENUE(8) IN-LIEU WATER WATER ANNUAL WATER UTILITY UTILITY CONSUMPTION(8) TYPE OF LAND USE SALES TAX TAX 100 ;t3 Industrial Oil Production 62.40 9,36 3.12 148.5 Aerospace (Major)(6) 82,365.30 12,354.80 4,11b.27 211,810.0 Light mAnufacturing! Wh,l esal e (e 20,000 1 }(7) 27.24 4,09 1.36 38.6 Light Manufacturina/Wholesale Assembly/Testing 210.28 31.54 10.51 518.0 Fabricatior 12,773.64 1,916.05 638.68 22,443.0 z Warehousing 19.60 2.94 0.98 41.9 Nan-Structural Storage/Service 119.54 17.93 5.98 280.0 Miscellaneous Service Lumber Yard 403.76 60.56 20.19 993.0 General Industrial 202.46 30.37 10.12 482.0 Public Utility Electrical Power 107,253.66 16,088.05 5,362.68 281 ,732.0 Teiep), one 1:958.41 293.760 97.92 4,031.0 (l Range = 0-12 DU/acre {2 Apparel, jewelry, yardage, shoe,, etc. (3 Medical, finance, hair salon, barrier, repair, etc,. 4 ,,4) Apparel, auto supply, realty, etc. (5) Raquette-ball, hand-ball, gymnasium, etc. (6 McDonnell-Douglas x (7) Engineering, office supply, machine shop, etc. (8) Per dwelling unit for residential projects and per business for conms rcial and industrial 1anO .k-,as SC'URCE< City of Huntington 3earh P% - :.u^ i t r S'*St 2.L 4 Gas Utility Tax a .. A 51 tax is imposed on the natural gas service charge for each user of rtatural gas in the City. According to -hf Southern California Gas } .., Company, in calendar year 1978 the consum, qnu sales by customer type in the City were as follows: Customer Type Residential Commercia;(l) Industrial(2) Number of Customers 49,695 1 ,484 206 Total Consumption (1000 cu. ft.) 4,404,240 ,196,846 11,634,224 Total Operating Revenue $8,459,671 "—,509,696 $24,547,305 Operating Revenue per Customer $170.23 $111691.17 $119,161.67 On a per customer bais the avera a annual gas utility tart revenue would be (,05) ($170,23) = $8.51 for residential customers, (.05) ($1 ,691 .17) =$84.56 for commercial customers, and (.05) ($7152161.67) = $5,958.08 for industrial custzaters. Fo- commercio . -d industrial customers there are many factors which influence r~atural gas consumption such as type of business, energy source(s) used, size in square footage, etc. Thus,the use of averages of these types could be misleading Since they are based on a mixture of many types of businesses of varying sizes, 'the derivation of gas utility tax revenue is generally obtained from (Number X (;as utility tax) of 0U"srevenue per 6U for residential projects, and ,from Number of Gas utility 4 Number businesses X tax revenue (of a` s per ccre (per business) " 4 For commercial anu industrial projects. r- (l) includes wholesale suppliers, miscellaneous retain, machine shops, hospitals insurance, real estate, 'Financial and personal services (2) includes agr cultural, mining, petroleum extrnctivn and general , nufr�ctur ng, but excludes the Edison facility 2-21 rn t K i NNW ft r 2.2.5 Telephone Utility Tax ; w; A 5% tax is imposed or all charges `or intrastate telephone com- :; municatian services in she City. Excluded fr;m� this tax are charges for coin-operated telephones, land-mobile services, maritime-mobile services and ' interstate telephone calls. The General Telephone Company basic rates by type of service are: Type of Service Monthly Charge ' Residential _ $5.45 per dial telephone plus $0.70 per extension $6.70 per push-button telephone plus $1.20 per extension Business (commercial $7.25 per dial telephone plus or industrial) $0.70 per extension $9.00 per push-button telephone plus $1.45 per extension On the basis of the monthly charge and ignoring both the existence of extension lines or additional phones on the same line and intrastate toll calls and other taxable charges., this tax wGuld generate )n an annual basis an amount equal to $3.27 per dial telephone and $4,02 per gush-button telephone for residential customers, and an amount equal to $4.35 per dial telephone and F $5.40 per push-button telephone for business customers. The derivation of telephone utility tax revenue is generally obtained from Number X Telephone utility of0U"s tax revenue per 0U for residential projects, and 'From Number Number of /Telephone utility of acres X businesses k ( tax revenue P per acre \per business for commercial and industrial projects. 2-�2 j. L � 2.2.6 Electicityt iJtii 4ty Tax j A 51" tax is imposer the electrical energy service charge for each user of electricity in the City. According to the Southern 01 ifurnia ° Edison Company, in .:alendar year 1978 the consumption and sales by customer r type in the Ciwy were as follows: � Customer Type Commercial m._. ReWpAtial and industrial Nt,imber of Customers 57,137 4,045 Total Consumption (kwhrs) 321 ,288,400 545,893,212 Total Operating Revenge $14,759,131 $21 ,055,087 Operating Revenue per Customer $258.31 $5,205.21 On a per customer basis the average annual electricity utility tax revenue would be (.05) ($258.31) = $12.92 for residential customers, and (.05) ($5,205,211 = $260,26 for commercial/industrial customers.. The latter q.':entily is no doubt high for commercial customers due to being heavily basea by the consumption; attributed to manufacturing industries in the City, however, it is not post%le to obtain a separation of the electrical energy consumed into conmercial versus industrial users. The derivation of electricity utility tax revenue is generally obtained from a Number X Electricity utility 'Uf OU,S (tax revenue per OU for residential proaects, and from Number s ,lumber of � (Electricity utility of acre X bisinessos X tax revenue f per acre I \per business a for commercial and industrial projects, 2-23 t 7 � 2,2.7 Cigarette Tax ' According to Section 30462 of the Revenue and Ta -ution Code, r3 igaretta t, monies are first apportioned bet..een cities and counties in ` the proportion that local sales tax distributed to each city and each `'. . co4:nty bears to the total of zucn local sales tax distributed. Fifty per- cent of the city's share is allocated in the proportion that the local salts i tax revenues of each city bears to the total local sales tax revenues of all the cities and 50 percent is allocated in the proportior that the pbpu•- Tation of each city bears to the total population of ali the cities. For these reasons, one gen(yrall,y estimates cigarette tax revenue on a per .capita basis. Cigarette tax revenue is thus derived on the basis of per capita cigarette tax revenue^ for residential projects. Referring to Table I , his- torical trends shove the following: Cigarette Revenue Fiscal Year Tax ,Revenue_ Eo ation - 'er Capita 1978-1979 _ $534,407 167,419 $3.19 ~ 1977-1978 550,503 161,300 3.41 1976-1977 498,782 158,100 3.15 1975-1976 514,672 152,300 3,38 19i4-1975 467,F68 147,900 3.16 1973-1974 477,571 143,600 3J3 The approximate rate of decrease ner year from FY74 through 1=Y79 is 0 M, which implies that in 1979-7980 the estimated cigarette tax revenue per capita is (0.991) ($3,19) - $3.16. The derivation, ref cigarette tax revenue is generally obtained from iNumber Average Cigarette of Uif`s number of X tax revenue people per DU per capita 2.2.8 Real Property Transfer Tax The real property transfer tax is based can the valve of the sales transaction and is compul. ted on the basis of $0.275 per $500 of sales or, 2-•24 "tk r f equivalently, $0.00055 per $1 of sales. The derivation of real property 3 transfer tax revenue is Obtained from ., 3 Average (Real propertyNumber market ; X X transfer Of OU'sJ value ti per OU tax rate f for residential projects, and from Ave iiumbet markets Real r�roaerty� X X transfer (Of acres value tax rate . per acre for commercial and industrial projects. 2.3 licenses and Permits 2.3.1 Animal Licenses ;revenue from animal licenses is assumed to be darived on a per p capita basis. 41%efe, ''ng to Fable 1,1 , historical trends show the following: Animal Revenue Fiscal Year License r-,es population - Per Capita ;> 1978,1979 $120,739 167,419 $0.72 1977-1978 131,682 161 ,300 0.82 1976-1977 150,866 158,100 0,95 1975.1975 104,564 152,300 0.69 1974-1975 78,214 147,900 0.53 1973-1974 117,585 143,600 0.82 The approximate rate of decrease per yaar from FY74 through F''79 is M%, ;which implies that in 1979-1980 the stimated animal license fee revenue per capita is (0.974) ($0.72) = $0.70. The derivation of animal license foe revenue is obtained from w AverageAnimal license hurropr k *'►tber of X of OU'S tfees per capita ' i le per OU 2-25- 1. i' S �4q 2.3.2 Business Licenses o Business license tax revenue varies according to a number of u factors such as type of business, number of employees and number ox com- mercial vehicles. illustrative examples rf average !�nnual fees on a per business basis are presented ir; Table 2.16. Business license tax reverue is derived from t Sl �N�-:giber of Average business umber of acres businesses X lc?nse tax per acr` per business x 2.4 Revenue From Other Agencies 2.4.1 Trailer Coach License Fees At the time of vehicle registration, the Department of Motor Vehicles collects an annual license fee of 21P of the market value of trailer coaches. According to the Revenue and Taxation Code Secs. 11003.3 and 11003.4, all license tfi<3, paid on trailer coaches, less the cost of administration, are apportioned to the county where the trailer coach, is located and is distributed rn the basis of one-third to the city in which it is located, one-third to the school district and one-third to the county. For the trailer coach owner this amounts to an in-lieu tax, which serves as--an improvement tax instead of a property tax,* The State Department of Motor Vehicles has established a license fee schedule based on 400 possible classes of coaches. There are 2 J classes denoted AA through LZ which are the most common and 180 classes denoted MB through ZZ which are less common, denoting higher priced coaches. The basis for the fee is $11 per side plus an amount per side based on the trailer coach class, market value and aye as determined relative to an 18 year depreciation schedule. For example, a new class AA coach would pay $1 + $11 = $12 per side in 1978 versus a new class ZZ coach which would. pay $1 ,637 + $11 = $1,648 per side in 1978. illustrative schedules of the variable component of the fee based on coach class and age are as follork. *T�`his w 1 change on July 1, 1980 as the result of SB 1004 in that all new mobile homes sld after this date will be placed on the local property tax rolls and will no longer be subject to vehicle license feQs. 2-25 Table 2.16 Average Annual Business License Fees per Business by Type of Business in the City of Huntington Beach General Business Area Ayera2e Fee Per Business a s+ s . Women's App . el Stores $ 57 ! . Men s Apparel Stores 47 r Family Apparel Stores 42 Shoe Stores 42 t Variety and General Stars 92 Department and Dry Goods Stores 172 # Art, Gift and Novelty Stores 39 Sporting Goods, Bicycle and Surfboard Stores 42 Florist Shops 38 Photographic Equipment and Supply Stores 46 Music Stores 43 Stationery and Book Stores 46 Jewelry Stores 39 Office, Store and School Furniture and Equipment Stores 38 Full-Time Specialty Stores 41 Grocery and Food Stores without Alcoholic Beverages 42 Liquor Stares 46 Eating and Drinking Places without Alcoholic Beverages 71 Drug. Stares 64 Non-Store Retailers (Full--Time Only) 33 Part-Time Permittees 41 Household and Home Furnishing Stores 46 Radio and Household Appliance Stores 44 Second-Hand Sta-as 38 Grocery Stores with Beer and Wine Licenses 39 Grocery Stares with. General Liquor Licenses 149 Eating and Drinking Places with beer and Wine Licenses 50 Eating and Drinking Places with General On-Sale Licenses 207 Garden Supply and Equipment Stores 156 2-2 h Table 2.16 (Continued) A General Business Area Average "Fee Per Business y" Lumber and Building Material Dealers $102 Hardware Stores 66 '' Paint, Glass and Wallpaper Stores 48 New Auto Vehicle Dealers 178 Automotive Supply, Automobile Trailer Dealers � and Trailer Supply Stores 48 Service Stations 38 Used Auto Vehicle Dealers 50 r Boat and Motorcycle Dealers and Supply Stores 42 Automotive Repair Shops and Garages 46 Repair and Hand Trade Shops 56 Portrait Studios 39 Clubs and Places of Amusement with On-Sale General Licenses 66 Shoe Repair Shops 36 Morticians and Undertaking Palors 42 Personal Service Shops and Amusement P`iaces without On-Sale General Licenses 41 Construction Contractors and Manufacturers and Wholesalers of Lumber and Building Material 64 Manufacturers and Wholesalers of Store and Office Equipment 42 Health Services 90 Public Utilities and Concerns Providing Transportation and Allied Services 85 Manufacturers and Wholesalers of Electronic and Electronic Equipment 77 Governmental Agencies, Associations, Fraternal, Religious and Social Organizations 41 Business Service Concerns 41 Producers and Wholesalers of Food, Tobacco, Alcoholic Beverages and Farm Products including Food Processing Equipment 55 Manufacturers and Wholesalers of Textile Products, Household. Furniture and Furnishings 48 Manufacturers and Wholesalers of Drugs, Chemicals and Allied Products 47 2-28 1 131 nis, Table 2.16 (Continued) General Business Area Average Fee Per Business => Producers and Distributors of Motion Pictures ` - and Manufacturers and Wholesalers of Motion Picture Equipment and Supplies $ 38 Manufacturers and Wholesalers of Automotive Vehicles, Trailers, Automotive Parts and Equipment 72 Manufacturers and Distributors of Transportation a Equipment Other than Automotive 52 Producers and Refiners of Petroleum, Wholesalers of Petroleum roducts, and Manufacturers and Distributo,s of flii Well Refining-: a,,d Service Station Equipment 133 Producers and Distributors Gf Heavy Industrial Equipment and Machinery (N.E,C. ) 58 Publishe-s, Producers and Distributors light Industrial Equipment ("' E.C,) and. All Other Permittees (N,E.O.) 44 Mobile Home Parks 4100) Apartments (2) Hotels and Motels (3) Ni E.C, Not elso sere classified (1) Plus $374 f P annual operating permit fee (2) $6 per unit for complexes with 3 or more units (3) $6 per unit 2a-29 s } E Al ` Coach Class Tom' Age (yrs.) AZ CZ EZ KZ RD 7Z� ":f 0 70 219 369 668 1 ,052 1,637 Y ' 1 57 181 304 550 867 1 ,348 2 45 142 239 432 681 1 ,059 3 37 116 195 354 557 867 4 33 103 174 314 495 770 i 29 90 152 275 433 674 x 6 25 77 130 235 371 578 7 20 64 108 196 309 481 $ 20 62 104 189 '197 462 9 19 59 100 181 285 443 lfl 18 57 95 173 272 44 11 37 54 91 165 260 404 12 16 52 87 157 248 385 13 16 49 82 149 235 366 14 15 46 78 141 223 347 1$ 14 44 74 134 210 327 16 13 41 69 126 198 308 17 or older 12 39 65 118 186 289 'ge Decrease Per Year ( ) 10.9 10.7 1018 10.7 10.7 10.7 In 1978-1979 the City of Huntington Beach received $87,140 in E trailer coach license fees. Based on an estima'Le of 3,318 mobile homes in 1978, this implies an annual revenue of $87,140/3,318 , $M26 per coach. The derivation of trailer coach license fee revenue is obtained from Average fee fraction of dumber value per per dollar of license fee of trailer. X t;~ailer �(License trailer coach '�(to revenue returned coaches ,:each value = .02 city ; ,333 Where, if one chooses to use the fee schedule, an estimate is given by Number License fee of trailer (�11 + (fee from schedule)]) per dollar coach sides ---- of trailer Average value of coaches coach value in coach Mass represented by given coach *This provides an estimate of the annual assumed deprecation rate in trailer coach value, 2-3tk {; P "M 2.4.2 Alcoholic Beverage Fees According to Section 25761 of the Business and Professions -Code, alcoholic beverage control license fees are apportioned in the proportion " that the amount of fees collected in each city and county bears to the total amount collected throughout the State. There are tt5'o categories of licenses, namely: "on-sale" and "off- sales, On-sale licenses generally include bars and restaurants of which, as of June 1978, there were 118 such licences in Huntington Beach. Off- sale licenses include manufacturers, wholesalers, liquor stores and grocery , stores of which, as of Oune 1978, there were 101 such licenses in Huntington Beach. The total fees and fines collected durirg the period January- a December 1978 amounted to $63,82.7 or $291 per license on an annual basis. This discussion suggests that alcholic beverage license revenue be derived on a per business basis and is thus obtained as follows: Number dumber of Alcoholic (of acres X nusinessas X beverage license per acre fee per business 2.4,3 Motor vehicle In-Lieu Fees According to Section 11005 of thei Revenue and Taxation Code, motor vehicle in-lieu fees are distributed 50 percent to cities in the proportion that the population of each bears to the populations of all cities and 50 per- cent to counties in the proportion that the population of each county bears to the population of all counties. For this reason this revenue is estimated on a per capita basis. Motor vehicle in-lieu fee revenue is thus derived on the bass of per capita motor vehicle in-'lieu fees for residential project.x, Referring to 'fame 1.1, historical trends show the following: Motor Vehicle In"-Lieu Revenue Fiscal Year F?e Revenue Population = Per Capita 1978-1979 $2,341,592 167,419 $13.99 1977-1978 2,059,030 161,300 12.77 1976-1977 1,682,217 158,100 10.64 1975-1976 1,413,448 152,300 9.28 1974--1975 1,280,409 147,900 8.66 1973-1074 1,339,934 143,600 9.33 2-31 i :jig •' iY `, . ®rq { The approximate rate of increase per year from FY 74 through FY 79 is 8.4%. ; which implies tha- in 1979-1980 the estimated motor vehicle in-lieu fee revenue per capita is (1.084) ($13.99) = $15.17. 1 The derivation of motor vehicle in-lieu fee revenue is generally '> obtained from (Average (Motor vehicle t _ Number number of in-lieu fee fl �of DE1's people per E ;}er capita 2.4.4 Gasoline Tax r According to the Streets and Highways Code Sec. 2104(d), a base sum is established from the tax per gallon specified by the Motor Vehicle Fuel License Tax Law and i4 based ,n the respective portions that the number of fee paid and exempt vehicles registered in each county bears to the total number of fee paid and exempt vehicles registered in the State. A portion of this base sum is distributed on the basis of a number of criteria including fixed allocations and miles of mainta4ned roads; however, according to Sec.. 2106(c)(3), the remaining amount of the base sum for each county is apportioned to the cities within the county in the proportion that the popu- lation of each city bears to the total populatio .of all cities in the county. Furthermore, according to Sec. 2107, a portion of the tax revenues collected under the Motor Vehicle Fuel License Tax Law is apportioned to each city in the proportion that the population of the city bears to the total population of all cities in the State.. For these reasons, one generally estimates gasoline tax revenue on a per capita basis. Gasoline tax revenue is thus derived on the basis of per capita gusoiine tax revenue for residential projects. Referring to Table 1 .1 , historical Y trends shcw the following: Gasoline Revenue Fiscal ,Year Tax Revenue emulation - Per Capita 1978-1979 $1.587,594 167,419 $9.48 1977-1978 1 ,511,227 161 ,300 9.37 1976-1977 1,433,571 158,100 9.07 1975-1976 1,331,502 152,300 8.74 1974-1975 1,302,634 147,900 8.81 1973-1974 1,296,089 143,600 9.03 4x, °' 2-32 W S lf.. k� AM ° . , The approximate rate of inc-ease per year from FY 74 through FY 79 is 1 .0%, which implies that in 1979-1980 the estimated gasoline tax revenue per capita � is (1.01) ($9.48) = $9.57. The derivation of gasoline tax revenue is general,, obtained from ° { w. , n Number AveragF- (t: Golinef DU's Xnumber of X, xrev:nue people per Dper capita 215 1^.evelowient oriented Charges 2.5.1 Permit & Processing Fees Permit and processing fees include the various development-oriented charges (excluding park foes, library fees, sewer fees, storm water drainage fees, and water fees) such as; development plan review, tentative tract appli- cation, plan check, engineering ant; inspection, right-of-way encroachment, grading permit, building permit, plumbing permit, electrical permit, mechanical permit, and various filing and appeil fees. Since these charges can be ex- pected to 'vary according to a variety of factors, an average fee would provide 4 a reasonable estimate of the permit and processing fee revenue expected from new development, Table 2.17 presents typical average permit and processing fee values for selected land uses in the City based: on a survey conducted by the Planning Department, These survey results suggest the'- erivation of permit and processing fee revenue be obtained from Number Avera., at of 0U1 X processing fee revenue per DU for residential projects, and from either (Average permit 'lumber x processing fee of acres revenue per acre or Number to ber cf Average permit & of acres X square feat X processing fee per acre revenue per sq. ft, \ t for coo rcial and industrial projects. 2-3,3 Table 2.17 Average flees and Development Charges by Typ: of Land Use in the City of Huntington Beach PERMIT & PARKS & LAND USE PROCESSING RECREATION LIBRARY SEXIER WATER Low Density Residential (0-7 DUJacre). Single Family (Detached) $679 per DU $903 per DU $ 58 per DU $391 per DU $195 per OU 1 ,/58 per acre 876 per acre Condominium 622 per DU 812 per DU 30 per DU 71 per DU 38 per OU 342 per acre 185 per acre Mobile Home* 42 per DU 610 per DU 191 per DU 73 per DU 36 per OU 503 per acre 249 oer ac-z Medium Density Residential (7-15 DU/acre) Single Family (Detached) b39 per DU 1,171 per DU 36 per DU 73 per DU 36 per OU 538 per acre 267 per acre ry Condominium 316 per DU 976 per OU 6 per OU 73 per DU 36 per DU 717 per acre 356 per acre Apartments (7-4 units) 341 per DU 785 per DU 58 per DU 73 per DU 36 per DU 1,841 per DU 531 per acre Apartments (5+ units) 180 per DU 454 per DU 40 per DU 72 per OU 30 per OU 899 per acre ;72 per acre Hugh Density Residential (15+ DU/acre) Condominium 385 per DU 878 per DU 05 per DU 73 per DU 36 per DU 1,209 per acre 600 per acre Apartments (2-4 units) 325 per DU 772 per DU 52 per OU 73 per Doi 36 per DU 1 ,131 per acre 562 per acre Apartments (5+ units) 333 per OU 870 per DU 42 per DU 73 per DU 36 per DU 1 ,450 peracre 720 per acre * up 12 DU/acre Z MY xaI?ze 2.17 Continued) PERMIT 4 LEND USE PROCESSING RECREATION iIBRARi SEWER WATER Commercial, Community Center $1,3;5 per acre - __ 298 per acre 171 per acre 0.139 per ft2 Neighborhood Center ,5?9 per acre __ __ 271 per acre 186 per acre 0.167 per ft2 Convenience Center 2,310 per acre -- 199 per acre 680 per acre 0.302 per ft2 General Cooparcial 1,344 per acre -- -- 278 per acre 539 per acre 0.093 per ft2 ry Commercial Recreation 809 per acre 276 per acre 288 per acre 0.180 per ft2 Office Professional i, ,•: per acre -- __ 242 per acre 347 per acre 0.196 per ft2 Industrial LightManufacturing(<20,000 ft2) 984 per acre -- -- 312 per acre 273 per acre 0.058 per ft2 Light Manufacturing(,*-20,000 ft2) 473 per acre __ -_ 323 per acre 159 per acre 0.025 per ft2 Non-Structural Storage 517 per acre -- -- 278 per acre 349 per acre 0.437 per ft2 Miscellaneous Service 681 per acre 295 per acre 241 per acre 0.130 per ft2 Warehousing 1,325 per acre -_ 289 per acre 369 per acre 0,076 per ft2 ote: acre= gross acre SOURCE: City of Huntington Beach Planning Department 2.5.2 Parks & Recreation Fees PvI or to recordation of a final subdivision nap, subdividers are . required-to Medicate l.., d, pay a fee in lieu thereof, or bath, at the option of the City, for park and recreational purposes. The amount of the fee is ' 1 based upon the fair market value of the amount of land which otherwise would ` F be required to be dedicated as determined from the followinq formula: 15 acres * Population (Number 1000 pQr 1000 X density X { of DUI s)/(ponulation) population factor per DU, 1l where 3.55 for single family 1.18 for multiple family single/bachelor Population density 1.49 for multiple family I bedroom factor per DU 2.30 for multiple family 2 bedrooms 3.20 for multiple family 3+ bedrooms 1.80 for mobile home. An alternative approach, currently in use, to determine the amount of the parks and recreation fee is to use the following schedule: Type of Unit Fee per Unit Single Family $1,171 Multiple Fami y Single/Bachelor 389 1 Bedroom 492 2 Bedroom 759 3 Bedroom t 1,056 Mobile Nome 594 Table 2.17 presents typical Average values of parks and recreation fees on a per dwelling unit basis as the result of a survey conducted by the Planing Department This discussion suggests that the derivation of parks and recreatien fee revenue be obtained from Current City standard for land. devoted to park and recreational purposes 2-36 r r } Ik r > and Average pants Numberof Dfl's X recreation) fee x y per jxc for residential projects only. r.. 2.5.3 Library Fees An excise tax pertaining tc. conenunity enrichment library fees is imposed upon the const:ru Lion of new residential units 4n the City on the basis of $0.05 per square foot of floor area, including any area in a building designed for the parking of vehicles. The term :`residential unit" means a single fam��ly dwelling, a dwelling unit in a au lex, apartment house or dwelling r g 9 p , group, and any other place designed for human occupan y which contains a kitchen, and any space in a mobile :hotne park designed or intended for a house trailer, mobile home, camper or similar vehicle. For mobile home parks, the square s footage of floor area is calculated as only that portion of the lot indicated on the original construction plans for the mobile home proper and its carport. Table 2.17 presents typical at,erage values of library fees on a per dwelling unit basic as the result of a survey conducted by the Planning Department. This discussion suggests that the derivation of 14brary fee revenue be obtained from Number Average library of DU°s X fees per Del for residential projects only. 2.5.4 Sewer Fees Sewer fees are collected by the City as a condition to granting the application and furnishing sewer service to the premises on the basis of the fallowing schedule: (1) $90 for the first dwelling unit plus $60 for each additional dwelling unit or parcels containing less than 10,000 sq� ft: (2) $60 per dwelling unit or $300 per net acre, whichever is greater, for parcels containing more than 10,,000 square feet (3) $300 per net acre for all commercial and industrial developments. 2-37 x t In addition, Orange County Sanitation District (Nos. 3 and 11) fees are collected on the basis of $50 for each 1000 square feet of floor area with ; : a $250 minimum fee for commercial and industrial developments, and on the ^ basis of $250 per dwelling unit for residential developments. For its ser- vices in collecting the fees, the City retains 5% of all such fees collected. The total of fees derived from the above fee schedule and from this 5% ser- vice charge represent the sewer fee revenue collected. Table 2.17 presents �. typical average values of sewer fees as the result of a survey conducted buy the Planning Department. It is important to note that for commercial and F. industrial uses these fees are shown on a per gross acre basis. The derivation of sewer fee revenue is obtained from either Number (Sewer fee of DU's X revenue per DU) or from (Plumber (Sewer fee I acres revenue per acre for residential projects. For commercial and industrial projects the latter formulation is used. 2.5..5 Drainage Fees A drainage fee is imposed upon new development according to w drainage district in which the project is located using the following fee schedule and making reference to Figure 2.1; Drainage Fee Per District Gross Acre 2 $ 500 " 2A 2,000 3 3,000 4 0 2Y38 F �k 4 t ��.• r `��.. ` • �� \\ tart ����lkkkkvqq.. Rp1 . r TO cir '' rlr � ,�li. .w1 �vN ✓ti, k } �hf .h !f �'` {Fr i!•`+`tlflk`t F _' `\iA k�f f y���rA � R•1 '�! ., � h .s'rk�\ icy yr� •r,.�''!ty i,�„ .,f` .��'Ffi}r . � yr! ,�. rr �ti♦�fr � � , Y E4cf1 iiA/MC HUNTINGTON BEACH CALIFORNIA ,ro.o4nx°� cru.uM� MASTER PLAN STORM DRAIN SYSTEM .«�. �. NlaRCH a:?975 { iP \ `et f n.��'xw n` Jr•• e bra tr `�' ° �✓ l�� � �,4 ,y�J f � *`... .. 4 h s r is r S � ,,,,"M; �-^' ��• 1 'Fy�;f+ ��•Y it'. ,.r\ �✓e wft a ?UW#kq mm'smm-o* atwar t Drainage Fee Per District Gross Acre 5 $ 2,000 .: 5A 2,000 :. i 47A. 5B 0 5C 0 ,.` ,° 5D 0 6A 2,000 "Y 6B 2,000 € 6C 3,000 7A 2,800 7B 2,000 7C 2,000 70 2,000 7E 3,000 7F 2,000 7G 3,000 7H 3,330 71 4,000 8A 0 88 5,600 8C 4,500 8D 1 ,650 8E 0 8F 2,300 8G 6,000 8H 2,500 9 4,000 10 1 ,500 11 0 12 5,000 This discussion suggests that the determination of drainage fee revenue be obtained from (Number ) X (Drainage 1 of acres fee per acre for all types of projects. 2.6 Other Revenues 2.6.1 Fines, Forfeitures and Penalties Revenue* from fines, forfeitures and penalties is assumed to be derived from residential projects on a per capita basis. Referring to Table 1.1, historical trends show the following; 11, *includes court fines, library fines & foes, and traffic fines 2-40 u., wuu-mow'• n ah-M[ 61:i 4.r, Fines, Forfeitures, Revenue Fiscal Year and Penalties - Population = Per Capita r 1978-1979 $1,005,452 167,419 $6.01 1977-1978 720,518 161,300 4.47 1976-1977 593,325 158,100 3.75 197b-1976 498,753 152,300 3.27 1974-1975 538,476 147,900 3.64 fi 1973-1974 510,877 143,600 3.55 The approximate rate of increase per year from FY 74 through FY 79 is 11.1%, which implies that in 1979-1980 the estimated fines forfeitures api penalties revenue per capita is (1.011) ($6.01) = $6.68. The derivation of revenue from fines, forfeitures and penalt es is obtained from umber Average Fines, forfeitures (0"f DUI X number of X and penalties revenue eo le per DU per capita P � �a } P P P / for residential projects only. 2.6.2 Miscellaneous Miscellaneous revenue consists of those revenues derived from pier and beach concessions, parking lots, the Sunset Vista camper facility and parking meters. These revenues are derived from both residents and non- residents of the City. In order to estimate the amount of these revenues directly attributable to residents it is assumed that they are in the same Y proportion as the observed percentage of visitors to the beach area as re- corded in incident reports by the Department of Harbors and Beaches. Referring to Table 1.1, historical trends show the following: .LL. 2-41 i Fraction of Miscellaneous Visitors from Revenue Fiscal Year Revenue X City Population = Per Capita 1978-1979 $910,139 0.197 167,419 $1.07 r 1977-1978 850,566 0.170 161,300 0.90 1976-1977 555,474 0.160 158,100 0.56 1975-1976 572,113 0.186 152,300 0.70 1974-1975 441,619 0.157 147,900 0.47 1973-1974 384,610 0.168 143,600 0.45 s The approximate ra:e of increase pet, yEar from FY 74 to FY 79 is 18.9%, which implies that in 19i9 - 1980 the estimated miscellaneous revenue per capita is } (1.189)($1.07) = $1.27. The derivation of miscellaneous revenue is obtained from :lumber Average t4iscelianeous� (of 0tl,s X number of X revenue per people per DU capita forr residential projects only, 2.7 Water Fees and Service Charges_ 2.7.1 Water Fees Water fees basically incl-ude: (1) water service fees collected as a condition to granting the application and furnishing water service to the premises, (2) water connection and meter installation charges, and (3) con- struction water charges, dater service charges are derived on the following basis. (1) $30 per dwelling unit on parcels containing less than 10,000 sq. ft. (2) $30 per dwelling unit or .$150 per net acre, whichever is greater, for any parcel containing 10,000 sq.. ft, of area :r more (3) $150 per net acre for all commercial and manufacturing developments, and those portions of trailer parks which accomodate overnight parking. f 2-42 r k •1 {Y x� 7n (1) and (2), a "dwelling unit" includes each residential quarter in hotels, apartments and motels, and each trailer space providing permanent facilities in trailer parks. Water connection and meter installation charges are based t on the actual cost of labor and material in laying such service lines, in- cluding the cost of the meters, the cost of replacing pavement plus an over- head charge. Construction water charges are derived on the basis of a number of criteria such as a Vat rate per dwelling unit, lineal feet of curb, square fe , , of sidewalk, square feet of concrete pavement, barrels of cement used in R, construction, amount of backfill settled, and quantity of water used, Table ' 4y 2.17 present': typical average values of water fees by type of land use based on a survey conducted by the Flanging Department. This discussion suggests that the derivation of water fee revenue be obtained from either Numbe:� Water fee of 0;: x l revenue per OU) or from +Number Water fee revenue tof acres X (per acre for residential projects% For commercial and industrial orojects the latter formulation is used. 2.7 .2 Water Sales Waver sales revenue is derived on the basis of water consumption using the following rate schedule: Dorr�stic, Commercial and Industrial Service Quantity rates First 500 cu, ft. or less $2.45 Over 500 cu, ft., per 100 cu. ft. $0.38 Minimum Charges Size of service Minimum charge per month Water in cu. ft. 5/8" or 3/4" $ 2.45 500 l" 4.90 11000 1-1/'211 7.35 1 ,500 2" 9,50 2,000 2-43 K Y i fk Size of service Minimum charge per month Water in cu. ft. t 3" $ 24.50 5,000 4" 49.00 10,000 6" 98.00 20,000 y 8" 147.00 30,000 ' , 10" 196.00 40,000 A charge of One Dollar ($1) shall oe made for each unit in excess x' of one connected to each meter. "Unit" means any building or a portion of a building consisting of one or mo a rooms separated from the rest of the building by a partition, occupied independently of the other parts of the building or another building. m Table 2.15 presents typical average values of annual water sales } by type of land use based on a survey conducted by the Planning Department. This discussion suggests that the derivation of water sales revenue be obtained from Number (Average water of DU's) X sales revenue per DU for residential projects, and from Number (Average water {of acres X sales revenue .�^r acre for commercial and industrial projects. 2-44 a i s a h 3.0 COST SOURCES In the section, a discussion or each of the major cost sources 3 from new develop« nt is presented along with the derivation of the Asti- �w mating equations for predicting future costs. The specific detailed equa- tions are given in Appendix B. 3.1 General Government and Administration General government and administration costs are those generally associated o.th the following cost categories: City Council Non-Departmental* Civic Promotions Administration Office of the City Administrator Internal Auditor Budget & Research Council Support Public Information Economic Development Civil Defense Data Processing Purchasing Central Services Word Processing City Treasurer Central Cashier & Treasury Management Risk Management Animal License City Attorney City Clerk Public & departmental Elections Personnel Finance Administration " Accounting & Records Business License *excluding Parking authority payment and street light electricity which are chased back to Harbors and Beaches and Street Maintenance} respectively. w 3>I i t A, Planning Administration � �: Current Planning Advance Planning Land else Building & Community Development Administration Plan Review and Inspection Certificate of Occupancy For residential projects these costs are allocated first on the basis of developed acres for residential land uses and then cn a per capita basis. Referring to Table 1.3, historical trends show the following: General Government Fraction of & Administration Developed Acres Cost Per Fiscal Year Costs A Residential Population = Capita 1978-1979 $8,153,936 0.778 167,419 $37.89 1977-1978 6,314,581 0.781 161,300 30.57 1976-1977 5,418,141 0.790 158,100 27.07 1975-1976 4,F54,685 0.789 152,300 23.60 1974-1975 4,:,48,823 3.788 147,900 23.17 1973-1974 3,815,849 0.786 143,600 20.89 The approximate rate of increase per year from FY 74 through FY 79 is 12.6%, which implies that in 1979-1980 the estimated general government and adminis- tration costs per capita are (1.126) ($3 .89) = $42.68. The derivation of general government and administration costs is obtained from Number Average General governmentsr of DU's number of x and administration1 people pe r I cost per capita For commercial and industrial projects these costs are allocated first on the basis of developed acres for commercial and industrial land uses and then on a per acre basis. Historical trends show the following: 3-2 r General Government Fraction of Number of � & Administration Developed Acres Commercial/Industrial Cost Per Fiscal Year Costs X Commercial/Industrial Developed Acres - Acre 1978-1979 $8,153,936 0.222 2,645 $684.38 1977-1978 6,314,581 0,219 2,561 539.98 Yh 1976-1977 5,418,141 0,210 2,346 485.00 1975-1976 4,554,685 0.211 2,252 426.75 1974-1975 4,348,823 0.212 2,206 417.93 1973-1974 3,815,849 0,214 2,153 379.28 The approximate rate of increase per year from FY 74 through FY 79 is 12.5% which implies that in 1979-1980 the estimated general government and administration costs per acre are (1,125) ($684.38) - $770.13. The derivation of general government and administration costs is obtained from General government umber(ONf acres X and administration /// (cost per acre 1 3.2 Public Safety 3.2.1 Police Protection Police protection costs are those generally associated with the following cost categories., Police Administration General Support Personnel Police & Public Affairs Records Training Planning & ResearF"h Crime Analysis Vice & Organized :rime Investigative Scientific Investigation Patrol Communications Jail Traffic Aero 3-3 NMI- G , 44 z•: M '6 Reimbursement revenues such as those associated with Special police Service ` and Post Reimbursement are deducted from the total costs derived from the above categories in order to obtain the net annual cost of police protection. rM As in the case of general g goverment and administrative costs, police protection costs are generally prorated first on the basis of developed acres and then on the basis of per capita for residential projects. The criterion for this method of allocation is based on the assumption that devel- opment places a greater demand on police resources than does non-development (ass is evidenced by the police call activity data of Table 3.1). The further proration of the residential share of police protection costs on a per capita basis is an attempt to recognize that as population increases then the de- mand for police protection service should increase. Eased on this method of allocation, for residential projects these costs are allocated first on the basis of developed acres for residential land uses and then on a per capita basis. Referring to Table 1.3, historical trends show the following: Y Police Fraction of 4 protection Developed Acres Cost per Fiscal Year Cost X Residential - Population = Ca ita 1978-1979 $8,991 ,331 0.778 167,419 $41.78 1977-1978 8,420,844 0.781 161,300 40.77 1976-1977 7,382,782 0.790 158,100 36.89 1975-1976 6,215,791 M89 152, 00 32.20 1974-1975 5,394,818 0,788 147,900 28.74 1973-1974 4,600,501 0.786 143,600 25.18 The approximate rate of increase per year from FY 74 through Fv 79 is 10.7%, which implies that in 1979-1980 the estimated police protection cost per capita is (1 .10') �$41.78) = $46.23. The derivation of police protection cost is obtained from x liuraerPolice protection of Out X (Average number of J � cost per capita eo le er D people P 3-4 Table 3.1 Distribution of Police Department Cali Activity by Type of Land Use in the City of Huntington Beach for Calendar Year 1978 NUMBER PERCENT OF TYPE OF LAND USE OFCALLS TOTAL Single Family 14,537 19.9 uA ' rffi Multi-Family i 2-4 Units 1,184 1.6 Apartments 6,179 8.5 .,_ Mobile Homes 263 0.4 Other Residential(i) 1 ,754 2.4 Commercial 13,457 18.4 Industrial 125 0.2 Streets & Highways 29,386 40.2 City Parks 446 0.5 City Beach & Pier 908 l.2 State Beach 129 0.2 Miscellaneous(2) 4,717 6.5 73,085 100.0 (1) Includes inclosed y rds, open yards and alley ways (2) Includes school yarc and buildings, church yards and buildings, public buildings, and construction sites SOURCE. City of Huntington Beach Police Department a ti; 8-5 For commnercial and industrial projects these costs are allocdted firstY`y on the basis of developed acres and then, in order to make the costs more sensi- tive to the specific type of land use, on a per square foot basis. Relative to commercial land uses, historical trends show the following: Police Fraction of Total Cost �4 Protection Developed Acres for Commercial Fiscal Year Cost X Commercial Land Uses 1978-1979 $8,991 ,331 .100 $899,133 1977-1978 8,420,844 .i00 842,084 1976-1977 7,382,782 .100 738,278 1975-,1976 6,215,791 .099 615,363 1974-1975 5,394,818 .099 534,087 1973-1974 4,600,501 .100 460,050 The approximate rate of increase per year from FY 74 through FY 79 is 14.3%. The next step is to estimate police protection costs on the basis of the type of commercial use. Referring to Table 3.2, this would be accomplished as follows for fiscal year 1978--1979: Fraction Commercial of Developed Square Cost Per Type -— Name Police Cost X Acres by Type = Footage = Sg. Ft. 1 Regional Shopping Center $899,133 .0505 866,879 $.052 2 Community Shopping Center 899,133 .1877 2,104,537 .080 3 Neighbnrhood Shopping Center 899,133 .0980 979,981 .090 4 Convenience Shopping Center 899133 .0516 625,264 .074 5 General Commercial 899,133 .2829 2,236,866 .114 6 Commercial Recreation 899,133 .2849 132,213 1.938 7 Office/Professional 899,133 .0444 601,529 .066 _s The derivation of police protection cost is thus obtained feom Number of X (Number of sq. (Police protection acres of ft. per acre X cost per sq. ft. coms ercial of commercial of commercial type use type use type use 3-6 v Table 3.2 Descriptions` of Existinr Commercial Uses in the City of Huntington 8f-ach . Building ,;c.fiber Square JMe: Name Description of Acres Footage 1 Regiunal Shopping Center Contains a wide range of shops anchored by one to-five 60.35 866,879 major department stores in a single complex, and gen- erally is in excess of 35 acres. 2 Community Shopping Contains small shops and offices anchored by a 224.35 2,104,537 Center junior department store and/or supermarket; may include a bank or savings and loan, major restaurant or drug store; usually 10-35 acres. 3 Neighborhood Shopping Contains small short and offices anchored by a super- 117.08 979,981 Center market and, possibly, a drugstore; usually 2-10 acres. 4 Convenience Shopping Contains small shops, offices and a food store; usually 61.67 625,264 Center less than 2 acres. 5 General Commercial Includes single or multiple uses (not in a complex) 338.09 2,236,866 along a major arterial highway with a regional market orientation; some common uses include service stations, drive-in restaurants, automobile sales and repair, furniture and appliance stores, entertainment and amusements; also includes individual or complexes of hotels, motels, specialty shops, and/or offices; size of uses varies. 6 Commercial Recreation Includes airport, golf courses, racquetball clubs, and 340.56 132,213 public marinas; size of uses varies, 7 Office/Professional General professional use such as attorneys, doctors, 53.07 601,529 business services, etc. ti :t SOURCE: City Planning Department 74 Relative to industrial land uses, historical trends show the followingt Police Fraction of Total Cost , ' Protection Developed Acres for industrial . Fiscal Year Cast X Industrial Land Uses 1978--1979 $8,991 ,331 J 22 $1,096,942 k, 1977-1978 8,420,844 .119 1,002,080 1976-1977 7,382,782 .110 812,106 » 1975-1976 6,215,791 .112 696,169 1974-1975 5,394,818 .113 609,614 1973-1974 4,600,501 .114 524,457 The approximate rate of increase per year from FY 74 through FY 79 is 15.9% The next step is to estimate police protection costs on the basis of the type of industrial use. Referring to Table 3.3, this would be accomplished as follows for fiscal year 1978-1979: Fraction Cormnercial of Developed Square Cost Per Type _ Dame _ Police Cost X Acres_ by Type_ Footage 59. Ft. 1 Oil Production $1,096,942 .3766 N.A. Ni A. 2 Aerospace 1 ,096,942 .1639 1,081,914 $.166 3 Light Manufacture/ Wholesale(a 20,000 ft2) 1,096,942 .0697 1,860,748 ,041 4 Light Manufacture/ Wholesale(< 20,000 ft2) 1 ,096,942 .1478 3,',33,149 .053 5 Warehousing 1 ,096,942 .0277 563,630 .054 6 Non-Structural Storage/ Service 1 ,096,942 ,0565 67,056 .924 7 Miscellaneous Service 1,096,942 .0774 435,464 .195 8 Public Utility 1,096,942 .0804 72,867 1.230 The derivation of police protection cost is thus obtained frog+ Number of O umber of sq, (Police protection acres of X t. per acre X cost per sg, ft. industrial of industrial of industrial type use type use type use 3,2.Z fire Protection .Fire Protection costs are those generally associated with the following cost categories: 3�8 u 11141 Table 3.33.3 Description* of Existing Industrial Uses in the City ; of Huntington Beach Building Number Square Name _ Description of Acres Foota e l Oil Production Includes extraction, storage and/or office areas 2 Aerospace McDonnell-Douglas facilities 237.65 1 ,081 ,914 3 tight Manufacture/ Includes general industry with 20,000 sq. ft. or 101.04 1 ,860,748 Wholesale more of building area per user, where manifacture (?20,000 ft2) and/or wholesale are the dominant activities 4 Light Manufacture/ T .-ludes general industry with less than 20,000 214.37 3,033,149 Wholesale sq. ft. of building area per user, where manufacturer (< 20,000 ft2) and/or wholesale are the dominant activities 5 Warehousing Includes structural storage as the dominant activity 40.20 563,530 r G Non-Structural Includes such uses as recreation vehicle storage, boat 81.99 67,056 Storage/Service yards, maintenance yards, trucking yards, auto wrecking and junk yards, and ready-mix concrete facilities 7 Miscellaneous Service Includes general services within industrial areas 112.27 435,464 and lumber yards S P:ublic Utility Southern California €dison Company and General Telephone 116.56 72,867 facilities * SOURCE: City Planning Department } ., ,., ,x kgtyh Epp;'y1ry}+�((�'�JJY.��aajt-,!e{'m`js; CA Fare Administration Fire Prevention & inspection Fire Controls Support Services , Fire Joint Powers Medical Aid Paramedic ~ Fire Station Building Maintenance.. s _ Reimbursement revenues such as those associated with Fire Joint Powers are deducted from the total costs derived from the above categories in order to obtain the net annual cos of fire protection. As in the case of allocating police protection costs, fire protection costs are generally prorated first on the basis of developed acres and then on the basis of per capita for residential projects and on the basis per square foot of use for commercial and industrial projects. -he criterion .or this method of allocation is Tikewise based on the assumption that development places a greater demand on fire resources than does non-development (as is evidenced by the fire call activity data of Table 3.4). The further proration of the residential share of fire protection costs on a per capita basis is an attempt to recognize that as population increases then the demand for fire protection service should increase. Based on this method of allocation,, for residential projects these costs are allocated first on the basis of developed acres for residential land uses and then on a per capita basis. Referring to Table 1 .3, historical trends show the following: Fire Fraction of Protection Developed Acres Cost Per Fiscal Year Cost x Residential Population_ Capita 1978-1979 $5,456,237 O X8 167,419 $25.36 1977-1978 4,816,562 0.78T 161,300 23.32 19764.197? 4,321,509 0.790 158,100 2L 59 1975-1976 3,761,025 0.789 152,300 19.48 1974-1975 2,360,778 0.788 147,900 12.58 1973-1974 2,883,614 0.786 143,600 15.78 Tile approximate rate of increase per year from FY 74 through FY 79 is 10;0%, u which implies that in 1979-1980 the estimated fire protection cost per capita is (1,100) ($M 36) - $27.88.. The derivation of fire protection cost is obtained from 3-10 Table 3.4 Distribution of Fire Department Call Activity by Type of Land Use; in the City of Huntington Beach for Calendar Year 1978 Fire Incidents Emer ency/Medical Assistance Non-Fire&Non-Emergency/Medical(4) Number Percent Number Percent Number Percent Type of Land Use of Calls of Total of Calls(l) of Total of Calls of Total Single Family 240 20.6 1 ,548 65.8 425 30.0 Condominiums 2 0.2 70 3.0 2 0.1 Mult -Family Duplexes 2 0.2 - - 3 0.2 Apartments (3-6 units) 138 11.8 108 4.6 117 8.3 Apartments (7+ units) 47 4.0 - 43 3.0 Mobile Homes 10 0.9 162 6.9 20 1.4 Commercial 91 7,8 15 0.6 134 9.4 Industrial 43 3.7 197 8.4 80 5.6 ca 'F Streets & Highways 323 27.7 - 214 15.1 City Parks 114 9.8 - - 12 0.8 City Beach & Pier 2 0.2 252 10.7 3 0.2 Miscellaneous(2) 155 13.3 - 365 25.7 1,167 100.2(3) 2,352 100.0 1 ,418 99.8(3) (1) Only 40% of the total emergency/medical assistance calls could be assigned to a particular land use k (2; Includes vacant lots, roadway areas, median strips, open fields, railroad right-of-ways, etc. (3) Not 100.0 due to round-off (4) All calls other than fire incidents or emergency/medical assistance SOURCE: City of Huntington Beach Fire Department 7Vi ' Average Number (Fire protection Of DU's<� X number of X lcost per capita) people per 0U Relative to commercial land uses, historical trends show the following; Fire Fraction of Total Cost Protection Developed Acres for Commercial Fiscal Year Cost X commercial - land Uses 1978-1979 $5,456,237 .100 $545,624 1977-1978 4,816,562 .100 481,656 1976-1977 4,321 ,509 .100 432,151 r 1975-1976 3,761,025 .099 376,103 1974-1975 2,360,77t .099 236,078 1973-1974 2,833,674 .100 288,361 ' i The approximate rate of increase per year from FY 74 through FY 79 is 13.6%. The next step is to estimate fire p-otection costs on the basis of the type of commercial use. Referring to Table 3.2, this would be accomplished as follows for fiscal year 1978-1979s i raction Commercial Of Developed Square Cost Per Type dame Fire Cost X Acres by Type Footage = Sq. Ft. 1 Regional Shopping Center $545,624 10505 866,879 $.032 2 Community Shopping Center 545,624 .1877 2,104,537 .049 3 Neighborhood Shopping Center 545,624 .0980 979,981 .055 4 Convenience Shopping Center 545,624 .0516 625,264 .045 5 General Commercial 545,624 .2829 2,236,866 .069 6 Commercial P.ecreation 545,624 .2849 132,213 1.176 7 Office/Professional 545,624 ,0444 601,529 .040 The derivation of fire protection cost is thus obtained from Number of ,Number of sq. . Fire protection, acres of Y, ft. per acre X cost per sq. ft. ) commercial of commercial of commercial r type use type use type use. I Relative to industrial land tses, historical trends show the following., 3„-12 c fait r Vic .' o 4 � � Fire Fraction of Total Cost Protection Devc-loped Acres for Industrial Fiscal Year Cost X Commercial - Land Uses 1978-1979 $5,456,237 .122 $665,661 ' 1977-1978 4,8T6,562 J 19 573,171 1976-1977 4,321,509 .110 475,366 1975-1976 3,761,025 .112 421,235 1974-1975 2,360,778 .113 266,768 1973-1974 2,88 ,614 .114 328,732 m The approximate rate of increase per year from FY 74 through FY 79 is 15.2%. The next step is to estimate fire protection cost on the basis of the type of industrial use. Referring to Table 3.3, this would be accomplished as follows for fiscal year 1978-1979: Fraction Industrial of Developed Square Cost Per e Nark - Fire Cost X Acres by TYpe Footage = Sq- Ft. 1 Oil production $665,661 .3766 N.A, N.A. 2 Aerospace 665,661 .1639 1,081 ,914 $.101 3 Light. Manufacture/ Wholesale {>_20,000 ft2 665,661 .0697 1 ,860,748 .025 4 Light Manufacture/ Wholesale (< 20,000 ft2 665,661 1478 3,033,149 .032 0 Warehousing 665,661 .0277 563,630 .033 6 Non-Structural Storage/Service 665,661 .0565 67,056 .561 7 Miscellaneous Service 665,661 .0774 435,464 1118 8 Public Utility 665,661 .0804 72,867 .734 3-13 s ,a fl. t The derivation of fire protection cost is thus obtained froo'n t:}; Number of /Number of sq. (Fire protection 'm p acres of ! ft. per acre cost per sq. ft, industrial of industrial of industrial -`' (type use type use type use 3.3 Harbors, Beaches & Parks 3.3.1 Harbors & Beaches } Harbors and beaches costs are those generally associated with the following categories Administration Lifeguard Beach Maintenance Parking Facility Municipal Pier Parking Meters Mechanical Maintenance Building Maintenance Parking Authority Payment Reimburserwnt revenues such as those associated with the Junior Lifeguard Program and County Lifeguard & Maintenance are deducted from the total costs derived from the above categories in order to obtain the net annual harbors and beaches cost. Since these expenditures benefit both residents and non- residents of the City, it is :assumed that the portion of those expenditures borne by residentss is in the same proportion as the observed percentage of visitors to the beach area as recorded in incident reports by the Department of Parbors and Beaches. Referring to Fable 1 .3, historical trends show the following: X 3-14 x tav Fraction of Harbors & Visitors from Gosh Per Fiscal Year Beaches Cost X City Population T Capita 1978-1979 $1,705 900 0.197 167,41.9 $ 1.30 A 1977--1578 1,080,693 O X0 16T,300 1.14 1976-1977 1,1.96,524 0.160 158,100 1 .21 � 1975-1976 1,123,834 0.186 152,300 1,37 1974--1975 T,058,108 0,157 147,900 1.12 1973-1974 1,038,194 0.168 143,600 1.21 `. The a)proximate rate of increase par year from FY 74 through rY 79 is 1 .4%, which implies that in 1979-3980 the estimated harbors and beaches costper acre is (7.014) ($1 ,30) = $1 .32. The derivation of harbors and beaches cast is obtained from Number Average (Harbors and of 0�11 y X number of beaches cost J people per D!1 per capita for resid.ntial projects only. 3.3.2 Parks and Recreation Parks and recreation costs are those generally associated with the following cast categories: Recreation & Parks Administration Recreation Administration Warehouse Comunity Centers City Gym & Pool Adult Sports Boys Sports Girls Sports Summer & Adventure Playground Instructional Classes Aquatics Special Events & Excursions Sumer (lay Camp After School Playgrounds 3-15 fi. R 1 f Oak View Center Park Maintenance .4 Nature Center ;,r•,� Building Maintenance -,� Recreation, Parks & Human Services . : Reimbursement r,ovenues sucf s those associated with recreation fees and recreation contracts are deducted from the total costs derived from the # ` above categories in order to obtain the net annual parks and recreation cost. Referring to Table 1.3, historical trends show the following: F . Parks & Recreation Cost Per Fiscal Year Cost Population - Capita 1978-1979 $1 ,293,037 167,419 $7.72 1977-1978 1,590,642 161,300 9.86 1976-1977 1,386,767 158,100 8.77 1975-1976 1 ,320,055 152,300 8.67 1974-1375 1,299,010 147,900 8.78 1973-1974 1,039,264 143,600 7.24 The approximate rate of increase per year from FY 74 through FY 79 is 1.3%, which implies that in 1979-1980 the estimated parks and recreation cost cost per capita is (1 .013) ($7.72) = $7.82. The derivation of parks and recreation cost is obtained from Number (Average 1 (Parks & recreation1 of Di1`s� numoer of cost per capita ; people per Dil for residential projects only. 3.4 Public Works 3.4..1 Administration & Engineering Administration and engineering costs are those generally associated with the following cost categories: Administration Design Engineer "g Surveying Construction Inspection Traffic Engineering 3-16 4 ♦ � qFN/` kcal l�• '. Special inspection fee revenues are deducted from the total costs derived from the above categories in order to obtain the net annual_ administration and engineering cdst. , Administration and engineering costs are prorated on the basis of total developed acres for residential, commercial or Indus rial land uses under the assumption that these land use types (exclusive of transportation, public or quasi-public uses) place the major burden on administration and engineering services. Referring to Table 1.3, historict trends show the following: i t Administration & Developed Cost per Fiscal Year Engineering Cost - Acres Acre 1978-1979 $1,051,180 11,912 $88.25 1977-1978 1 ,025,466 11 ,696 87.68 1976-1977 986,971 11,106 88.23 1975-1976 851,927 10,682 7935 1974-1975 778,430 10,402 74.8 1973-1974 746,388 10,044 74.31 The approximate rate of increase per year from FY 74 through FY 79 is 3.5 , which implies than in 1979-1980 the estimated administration and engineering cost per acre. is (1 .035) ($88.25) = $91.34. The derivation of administration and engineering cost is obtained from Administration [Number & of acres X engineering cost per acre for all land user. 3.4.2 Facilit & Equipment Maintenance Facility and equipment maintenance cost are those generally associated with the following cost categories; Administration Mechanical Maintenance Vehicle Painting & Body Repair Sewer & Storm drain Line Maintenance Sewer & Storm Drain Pump Station 3-17 Equipment Maintenancetv Mechanical Fabrication -< ' Bridges & Channels Pool Car Maintenance Building Maintenance Building & Equipment Special Repairs As in the case of administration and engineering costs, these costs are pro- ' rated on the basis of total developed acres for residential, commercial or industrial land uses under the Pssumption that these land use types (exclusive of transportation, public or quasi-public uses) place the major burden on 4 facility and equipment maintenance services, Referring to Tut„e 1.3, histor- icaI trends show the following: Facility & Equipment Maintenance Developed Cast Per Fiscal Year Cost _Acres - Acre 1978-1979 $1,735,524 11 ,912 $145.70 1977-1978 1,929,995 11,696 165.01. 1976-1977 1,808,t.02 11,186 161.67 1975-1976 1,311,2b5 10.682 122.75 1974-1975 882,883 10,402 M 88 1973-1974 567,887 10,044 56.54 The approximate rate of increase per year from FY 74 through FY 79 is 20.8%,. which implies that in 1979-1980 the estimated facility and equipment mainte- nance cost per acre is (1 .208) ($145.70) = $176.07, �E The derivation of facility and equipment maintenance cost is ob- tdined from Number ) X Facility & equipment of acres maintenance cost per acre for all land uses. 3.4.3 Street Maintenance Street maintenance costs are those generally associated with the fallowing cost categories: Street Ma€ntenace Plan Check, Inspection & Design Street Signing & painting 3-18 A� Street Tree Maintenance , Landscape Maintenance Street & Special Lighting V" Street Sweeping Tree & Landscape ChemicalsY , IZA Parking Control Street Light Electricity '. Street maintenance costs are allocated on the basis of per foot of street maintained. Referring to Table 1.3, historical trends show the following; Street Maintenance Street Cost Per ' Fiscal Year Cost Eoota e Foot 1978-1979 $2,682,051 1,773,552 $1 .51 1977- 1978 2,362,019 1 ,719,696 1 .37 ; 1976-1977 2,113,707 1,672,176 1.26 1975-1976 2,145,266 1,633,104 1.31 1974-1975 2,252,193 1,486,320 1.52 1973-1974 1,935,795 1,466,784 1.32 The approximate rate of increase per year from FY 74 through FY 79 is 2.7%, " which implies that in 1979--1930 the estimated street maintenance cost per foot is (1.027) ($1�51) = $1.55. ry The derivation of street m4i;:tenance cost is obtained from Number (street (Street maintenance (ofacres} footage cost per foot per acre for all land uses.. r 3.5 Library Library casts are those generally associated with the following cost categories; Media Services Technical Services Children's Services Reference Services Adult Library Services Administration Extension Services Library guilding Maintenance Sat<llite Libraries 3,-19 r �r IM V 3u Library service revenue is deducted from the total costs derived from the above categories in order to obtain the net annual library cost. Library costs are generally allocated on the basis of per capita );7 rf since the;e ct:`Ms are normally attributed to population. Referring to �r Table I A. hi,,t-= ;cz. trends show the following. 1 i`1rary Cost Per ' Fiscal Yr-.PT. lost - Population - Capita i.. 1978w1+"9 $1,039,717 167,419 $6.21 1,203,855 161,300 7.46 -a 7,54-`1P :M 991,209 158,100 6.27 'I975-1976 939,386 152,300 6.17 1974-1975 756,857 147,900 5.12 1973-1974 622,590 143,600 4.34 The approximate rate of increase per year from FY 74 through FY 79 is 7.4%, which imr.lies that in 1979-1980 the estimated library cost per capita is (1.O74) ($6,21) = $6.67. The derivation of library cost is obtained from Number Averse (Librarycost 3� numberr of X per capita (of MIS) people per DU for residential projects only. 3.6 Water Service Water service costs are those generally associated with the following cost categories- Source of Supply-0peration Pumping Expense-Operation Water Treatment Plant-Operation Transmission & Distribution Customer Accounting Administrative & General Other Expenses Other income Deductions w Pump Station Mai,.tenance Building Maintenancn 3-20 �.ry Total water service costs are prorated on a per unit of consumption basis such fY: as per 100 cu.. ft. or per gallon. Referring to Table 1.3 and using annual s water production data provided by the Dater Department, historical trends show the following: Water Service Cost Fiscal Year $/gallon $J100 cu. ft. 1978-1979 .00038 0.2868 1977-•1978 .00042 M164 1976-1977 .00039 M920 1975-1976 .00035 0.2618 1974-1975 �00036 0.t676 1973-1974 .00030 0.2261 The approximate rate of increase per year from FY 74 thrrtagh FY 79 is 4.9%, which implies that in 1979-1980 the estimated water service costs will be (1.049) ($0,00038) = $0.00040 per gallon or, equivalently, (1 .049) ($0.2868) $0.3009 per 100 cu. €t. This discussion suggests that the derivation of water service costs be obtained from (Number (Average annual beater service of OU's) X water consumption X cost per unit: per DU (of consumption for residential projects, and from ' Slumber Number of Rverage annual Water service of acres X businesses k water consumpt%on Y ost per unit per acre per business (OC€ consumption for commercial and industrial projects. In these formulations the annual water consumption estimates are derived from the data in Table 2.15. 3-21 F t l a^ qq t 5 R i F M 4.0 COMPARATIVE EVALUATION OF SELECTED? LAND USES In order to obtain a comperative evaluation of new development if it were to occur today in the City, viewed in the context of the revenues to be ? generated versus the costs to be incurred in 1979 only, fourteen residential, ' seven commercial and five industrial land uses w,- v selected for comparison ; purposes. These uses are not necessarily typical of existing developments in the City today, but conceivably could be built in the near future. These specific land uses selected can be described as follows: (I RES' JENTIAL CASE: Low Density ESTATE - Though not existing in the City at present, this type of development would consist of estate single family detached units ranging from l to 4 units per acre in density. They would be two story, 3 and 4 bedroam units and have a full market value of approximately $300,000. SINGLE FAMILY DETACHED, MARINA - These are single family homes such as those located on Trinidad Island in Huntington Harbour, Typical densities range from 4 to b units per acre. Some units are waterfront homes with docks, while others are on the interior portion of the island and have no direct water access. Market values differ according to such access, but $306,000 is an average value for new marina homes regardless of location. SINGLE FAMILY DETACHED REGULAR These are normal single family homes located in inland areas throughout the City, Densities can be expected to range from 4 to 5 units pr:r acre. An example of such units would be those off of Springdale Street, .ith of Talbert Avenge. Full market value averages $175,900 per unit. CONDO, MARINA - These are low density condominiums located in water oriented areas such as the Seagate development in Huntington Harbour, Densities can be expected to range from 6 to 7 units per acre and the average full value per unit is $225 000. 4_1 r 4'' t i C CONDO REGULAR - These are low density condominiums located in inland areas u throughout the City. Densities range from 6 to 7 units per acre. An example � . s of this type of development is located at the northwest corner of Ellis Avenue , and Newland Street.. Full market value auexlges $120,000 per unit. ate.s F MOBILE HOME - This is a typical mobile home such as those located in various * mobile home parks throughout the City, Because mobile homes are purchased elsewhere and then moved to a park, density and location have no effect on their value. Typical new mobile home values range from $20,000 to $45,000 _T with $35,000 being average. CASE: Medium DenSitY SINGLE FAMILY DETACHED, TOWNLOT These are single family units b-+ilt in the R.s Townlot and Oldtown areas of the City. Lot sizes are primarily 25 ft. X117 ft. Despite the small lot and building dimensions, values are generally high due to the close proximity to ocean. Densities range from 7 to 11 units per acre with 8.9 being typical of newer construction. An example of this type of develop- ment can be found on the Southwest corner of Twenty-first Street and Orange Avenue. Furl market value averages $150,000 per unit. CONDO REGULAR_ - These are medium density condominiums located in inland areas throughout the City. Densities vary widely from 8 to 15 units per acre with 10 being average. An example of this type of development can be found on the Southeast corner of Ellis Street and Chapel Lane. Full market values average $110,000 per unit. APARTMENT 2-4 REGULAR 4 These are 2 to 4 unit apartment buildings located in p inland areas throughnut the City. Densities typically range from 9 to 14 units per acre with 10.5 being average. An example of this type of development can be found on harbour Bluffs Circle, South of Warner Avenue and East of Balsa Chica Street. Full market val -es average $65,800 per unit. 4-2 �kr f APARTMENT 5+, REGULAR - These are 5 or More unit apartment buildings located in inland areas throughout the City. Densities range from 13 to 15 units per r.g acre. One of the few examples of this type of development existing in the City would be those units on the northwest corner of 17th and Florida Streets. Full " market values average $60,0O0 per unit. CASE: High Density CONC3 REGULAR - These are high density condominiums located in inland areas throughout thr City. Densities range from 15 to 20 units per acre. An example of this type of development can b,Y found. on El Arroyo Drive, south of Suter Avenue and crest of Newland Street. Full market value averages $95,000 per unit. APARTMENT 2-4 TOWNLOT These are 2 to 4 unit structures built in the Townlot and Oldtown areas of the City. Densities range from 17 to 20 units per acre. The average value per unit at $65,500 is generally higher than similar structures located elsewhere because of the close proximity to the ocean. An example of this type of development can be found c,r the southwest corner of 12th Street and Pecan Avenue. APARTMENT 2-4, REGULAR - These are high density 2-4 unit structures located in inland areas throughout the City, Densities range from 15 to 20 units per acre. An example of this type of development can be found on Valley Circle, north of Garfield Avenue and east of Beach Blvd. Full market value per unit averages $$5,500 per unit APARTMENT 5*, REGULAR - These are 5 or more unit structures located in inland areas throughout the City. Densities typically range from 20 to 30 units per acre. An example of this type of development can be found on the northeast corner of Nolla►id Drive and Beach Blvd. Full market value averages $52,000 per unfit. 4,3 �'� ult�rtsysterns_: .,» t2) COMMERCIAL M Community Center A is a 10 to 35 acre shopping center with greater than 100,000 , square feet of building space. The primary anchors are a supermarket and drug , store, Other tenants include restaurants and numerous small shops and offices. An example of this type of development may be 'ound on the southwest corner of Edinger Avenue and Sher Lane. Typical full market value is $800,000 per acre. Commuoji j Center B is a 10 to 35 acre shopping center with greater than 100,000 square feet of building space. The primary anchors are a junior department store ` and supermarket. Other tenants may include restaurants, small shops or offices. An example of this type of development would be on the northwest corner of Brookhurst Street and Adams Avenue. Typical full market value is $900,000 rer acre. Neighborhood Center is a 2 to 10 acre shopping center with 50,000 to 100,000 square feet of building space, The primary anchors are a supermarket and drugstore. Other tenants may include restaurants, small shops and offices. An example of this type of development would be the nL `hwest corner of At".anta Avenue and Magnolia Street. Typical full market value is $700,000 per acre. Convenience Center is less than 2 acres in size and consists of small shops and offices, A quick food pick-up store is generally the primary tenait. An example of this type Lf development is the southeast corner of 17th Street and Orange Avenue, Typical full market value is $550,000 per acre. Mixed Commercial/Office takes the form of a complex with more than 150,000 square feel of building space. It typically features high-rise offices, restaurants, banks and a hotel and theater. Though there is no existing development of this type in the City, there are plans for a similar complex on Center Drive at the 405 l:rL:!way, Full market vall�e of this type of development is approximately $2.8 million per acre. 4-4 t r t Ste Office/Professional is any building or complex featuring private medical or _ business service concerns. An example of this type of development is the 5 acre ; complex on the northeast corner of Yorktown and Main Street. A typical full ri,rket value is $500,000 per acre. � x Mixed Specialty Commercial and Residential is a theme development featuring ground level speciality shops and upstairs residential units which are essentially r= ` medium density condomiiiums. Included in the development may be several small -, offices, restaurants and hotels. A typical size may be 8 acres with 50 residential units. Old World on Center Drive is an example of this type of development. Typical full market value is $l million per acre. (3) INDUSTRIAL J oht Manufacturing, 8000 - 30,000 square fee Tenant features manufacture and/or wnt lesale as the dominant activities. Tenants may include machine shops, auto repair, art studies, electronics and chemical manufacture, and engineering coa.ipanics. Building to lot size may typically run 18,000 square feet per acre. An example: of 'his type of development may be found in the Huntington Industrial :'art nezi;° lsa. Avenue and Graham Avenue. Full market value averages $600,000 Per Li b ivikojuw(.Ic.turinq, Less than 8a000 square feet/Te-jnt also features manufacture and//.- :ibo;c-sa)e as the dominant activities. Because building size per occupant is gall there is likely to be a larger number of machine and auto repair shops than iu o�Lher light manufacturing developments. Building to lot size may average 17,000 square feet per acre. An example of this type of development can be found on the northwest corner of Slater Avenue and Nichols Street. Fuil market value is typically $575,000 per acre. Mini-Warehousing consists of a complex of building structures i:ontaining many small storage units which are leased out to private parties. The primary use is structural storage, and few or no retail sales are generated. A typical complex may be 3 acres 4-5 f y A ge ' in size and contain greater than 50,000 square feet of building space, with , . y.. an average of 210 sq. ft. per unit. An example of this type of development ,.;" can be found on Gothard Street south of Large Circle. Full market value may average $475,000 per acre. `> Regular Warehou!iinq features structural storag^ as the aominant activity, but ' limited retail sales may be generated. Tenants typically occupy no less than 11,000 square feet of building space and there are generally 15,000 to 20,000 square feet of building per acres. An example of this type of development can be found in the Huntington Indus�rial Park. Full trarket value averages $550,000 per acre. r Combination Non-Structural Storage/Miscellaneous Service is a mixture of uses typically found in the Gothard Industrial Corridor. Included may be recreation vehicle storage, auto wrecking, auto repair and trucking operations. All of these uses feature limited building space and generate few retail sales. Full market value for such a mixture of uses averages $95,000 per acre. The specific characteristics assumed for evaluation of each of these three ca *egories of land uses are presented in Tables 4.1 through 4.3. Relative to the revenue and cost factors derived previously in Sections L,0 and 3.0, respectively, Tables 4.4 and 4.5 present the basic assumptions and factors to be used. 4.1 Comparison of Residential Land Uses Residential land uses in the City of Huntington Beach can generally be expected to have impacts in the following revenue categories; (1) Property tax (2) Other local taxes such as sales tax, in-lieu water utility tax, water utility tax, gas utility tax, telephone utility tax, electricity utility tax, and cigarette tax. 4-6 Table 4.1 Characteristics of Residential Land Uses Evaluated STREET DENSITY POPULATION FULL MARKET VALUE ($1 00A FOOTAGE (4} TYPE OF USE , I1U ACRES PER DU tQW NOMIhtAL !iIGH PER ACRE Low Bens, tt Est t 1.50 3.50 275 300 375 160,00 SPD 1 Marina 4.78 3,21 275 306 475 224.25 SFD0) Regular 4.46 3.20 140 175 220 254.84 Cando Marina 6.85 2.69(2) 200 225 410 99.43 Cando Regular 6.24 1 .71 100 110 120 9'5.51 Mobile hu,de 6.83 1 .97 30�5} 35(5) 45(5} 91 .00 .a Medium Densi ty SFD(l) Townlot 8.40 2.93(2) 145 150 160 221 .00 Conch Regular 8.94 1 .96 95 100 115 126.20 Apt, 2-4 Regular 14.45 2.10(3} 60 66 70 210.56 Apt 5+ Regular 13.20 1.81 55 60 65 172-00 High -Density Condo Regular 16.00 2.22(3) 90 95 110 96.50 Apt. 2-4 Regular 15.44 2.58(2 50 56 65 223.10 Apt. 2-4 Townlot 18.30 2.14(fl 6U 57 70 221 .00 Apt. 5+ Regular 24.57 1.51 50 52 60 220.30 �T) Si ng C�_T-am l j-96Uc�e {2} Assume equal to 3.0 for sales tax determination (3) Assume equal to 2.0 for sales tax determination 4) Arterial plus non-arterial (public only) 5} Plus $1 ,152 in local improvements ` , 4 � t Wwl Owl", Table 4.2 Characteristics of Co►toercial Land Uses Evalui,ted SQUARE MARKET TAXABLE STREET -W,Ark VALUE SALES FOOTAGE NUMBER ►iUMBEk TYPE:OF USE. VER ACRE nER ACRE PER SQ. FT.a PER ACRE G; ACRES OF TPNANTS Cotw--iity Center Type A 9,957,36(9) $ 821,070 $ 63.23 125.51 14.59 30(l) Community Center Type B 10,458.66(g) 862,838 108.54 125.51 12 36 12(2) Neighborhood Center 8,769.41('0) 723,4,7 40,12 i99.70 8.37 16(3) Convenience Center 7,098,77(ll) 585,548 68.70 288.21 1,62 7(4) Mixed Ca.,�mercial/Office 42,288,,1 (12) 2,814,,919 8.103) 70.68 14.21 (C) Office/Professional 7,650,27(13) 524,590 ; 248.50 5.49 (S) Mixed Specialty Commercial and Residential 7,332,07tl4) 1,159,794 59.74 137.06 7.76 (7) (1) 1 grocery with general liquor license, 1 drug stor-, 3 restaurant° with bee and wine licenses, 1 resta.urant with general on-s}le license, l -estaurarit without alcoholic beverages, 2 food stores without alcoholic beverages, 2 florists, i sportii:q gords store, 'r Jewelry store, 1 stationery store., 1 music store, 1 home furnishings store, 2 radio/arpliz,ce stares, 1 men's :,pparel store, women's apparel stores, 2 health se,-vices stores, 2 personal service shops, 1 specieity store, and 4 business service concerns. (2) 1 grocery with gercral liquor licensF--, 1 drug store, 1 separtment store, 2 restaurants with beer and wine licenses, l women's apparel store, 2 perscnal service shops, and 4 business service concerns, r � 71 - u � c. Table 4.2 (Coat.) (3) 1 grocery with general liquor license, 1 drug store, 3 restaurants with beer and wine licenses, 1 family appz-rel store 1 teen's apparel store, l household furnishings storey l sporting goods stare, 1 food store wiuiout alcoholic beverages, 1 auto supply store, 2 personal service shops, and 3 business service concerns. (4) 1 liquor store, l food store without alcoholic beverages, t restaurant with brpr and wine license, 1 health service office, l personal service shop, 1 business service concern and l auto supply store. (5) 1 restaurant without alcoholic beverages, 2 restaurants Ath general on-sale license, 76 office building tenants, l theater, 1 hotel with 250 rooms, 2 business service concerns, l personal service shop, and 1 gift store, (6) 20 business service con-erns, (7) 42 specialty sh.ps, 1 restaurant with general on-sale license; 7 business serviv-, concerns, 2 personal service shops and/or amusement places, and l hotel with 30 rooms. w (8) Based on 5,000 sq. ft. coffee strop @ $78.07 per sq. ft. plus 55,250 sq. ft. restaurant @ $75.86 per sq. ft. plus 10,0V sq. ft. theater @ $30.22 per sq. plus 236 sq. ft. gift shop @ $3t.90 per sq. ft., averaged over 60C,914 sq. ft. Type 2 commercial (10) Type 3 commercial (11) Type 4 commercial (12) 77.53°% is Type 5 commercial and 22.47% is Type 7 commercial (13) Type 7 comercial (14) 91.56% is Type 5 commercial and 8.44% is iype 7 commercial r. .r Table 4.8 Characteristics of Industrial Land Uses Evaluated SQUARE MARKET TAXABLE STREET FOQiAGE VALUE SAGES FOOTAGE NUMBER NUMBER TYPE OF USE PER ACRE PER ACRE PER SQ. FTC. PER ACRE OF ACRES OF TENANTS Licht Manufacturing 16 502,97(4) $576,104 $10.60 222.03 9.77 87 (1) (e 8,000 sq. ft.Itenant) Light Manufactui: .? 1I,6G1.25 614,444 8.13 222.03 11.59 39 0) (8 004-O'000 sq. ft./ tenant) Mini-Warehousing 18,785.76(6) 476,000 0 161 .26 2.88 5 (2) Regular Warehousing 20,568.97(6) 562,500 5.09 161.26 0.58 1 (2) Combination Non-Structural/ 1,263.45(7) 95,047 17.79 184.80 17.2q (4)") Miscellaneous Service (1) Producers and distributors of light industrial equipm4rit. (2) Miscellaneous storage of public items and manufactured goods. (3 2 automotive repair/wrecking shops, l vehicle storage yard, and l trucking business. (4 Type 4 industrial. (5 Consists of 24.53% Type 3 industrial a:ld 75.47% Type 4 industrial. (6) Type 5 industrial . (7) Type 6 industrial. 77 V - y Table 4.4 Assumptions and Factors Used in the Comparative Evaluation of Annual Revenues From Land Uses in the City of Huntington Beach REVENUE. SOURCE �ASSUMPTIONS AND FACTORS USED Property Tax Derived on the basis of full market value times 0.01 times 0.154. (See Section 2.1) Other Local faxes Salas Tax For residential lfnd uses, fare. _ income (I) as a function, of dwelling unit price (P) is computed f,om the equation I - ,21874P + 17,789. Then for the given numh r of people per dwelling a-it and the corresponuSng family income, 1% of the corresponding value of Table 2.1 is salected as the f per dwelling unit sales tax revenue. For commercial and industrial lane uses, sales tax is based on IZ of taxable sales per q. ft. of business type. in-Lieu Wat ,r Utility Tax See Table 2.15 Water Utility Tax See Table 2.15 Gas Utility Tax For residential ,and uses, gas utility tax is assumed to average $8.51 per dwelling unit, For commercial and industrial land uses, Southerr California Gas Company summary data i4c inadequate for the pur ose of computing m-aningful estimates. (See Section 2.2 Based on Walker & Lee survey data Table 4 (Cont,) ` REVENUE SOURCE ASSUMPTIONS AND FACTORS USED Telephone Utility Tax. For residential land uses, telephone utility tax is assumed to average $4.02 per dwelling unit based ou the assumption of push-button telephones. For commercial and industrial 1prd uses. telephone utility tax is assumed to average $4.35 per business based on the assumption of dial telephones. Electricity Utility Tax For residential land uses, electricity utility tax is assumed to average $12.92 per dwelling unit. For commercial and industrial land uses, Southern W ifornia Edison Company s=aary data 'is inadequate for the purpose of computing meaningful estimates. (See Section 2.2.6) Cigarette Tax Cigarette tax revenue is estimated on the basis of $3.19 per capita for residential projects only_ Real Property Transfer Tax Not considered since this revenue is only derived upon the sale of property. Licenses and Permits Animal Licenses Animal license rove,ue is estimated on the basis of $0.72 per capita for �,eMdential projects only. Business Licenses see Table 2.16 F-t. Table4.4 ( on't,) REVEMUE SOURCE ASSUMPTIONS AND FACTORS USED Revenue From Other A encies Trailer Coach License Fees Derived on the basis of -full market value times 0.02 times 0.333. (See Section 2.4.1) Alcoholic Beverage Fees Alcoholic beverage fee rever,:ue is estimated on the basis of $291 per license (on-sale or off-sale) Motor Vehicle In-Lieu Fees Motor vehicle in-lieu fee revenue is estimated on the basis of $13.99 per capita for residential projects only. Gasoline Ta'e fasoline tax revenue 4s estimated on the basis of 1_48 per capita for residential projects only. DevelopTent Oriented Charges Permit & Processing Fees iJot considered since a one-time fee. Parks & Recreation Fees Not considered since a one-time fee. Library Fees Not considered since a one-time fee. Sewer Fees Not considered since a one-time fee. Drainage Fees Not considered since a one-time fee. Other Revenues Fines, Forfeitures & Penalties Fines, forfeitures and penalties revenue is estimated on the basis of $6.01 per capita for residential projects only. Miscellaneous 'Miscellaneous revenue is estimated on the basis of $1 .07 per capita for residential projects only. c .,._ .py � ,�+ •,�j'2 M...,ate'.:' - p f z; r Table 4.5 Assumptions and Factors Used in the Comparative Evaluation of Annual Costs From land Uses in the City of Huntington Beach E COST SOURCE - ASSUMPTIONS AND FACTORS USED General Government m For residential land uses, general government and admin- Administration istration costs are derived on the basis of $37.8�- per capita For commercial and industrial land uses, general govern- me,-;t and administration costs are derived on the basis of $684.38 per acre. Public Safes Police Protect-Ion For residential 1—id uses, police protection cost. is derived- on the basis of $41.78 per capita. For commercial and industrial land uses, see Section 3.2.1 . Fire Protection For residential land uses, fire protection cost is derived on the basis of $25.36 per capita. For commercial and industrial land uses, see Section 3.2.2. Harbors, Beaches & ,?arks Harbors &Beaches Harbors and beaches costs are derived on the basis of $1 .30 per capita for residential projects only. Parks & Recreation Parks and recreation costs are derived on the basis of $7,72 per capita for residential projects only. err ar. Taber (Cont,.) COST SOURCE ASSUMPTIONS AND FA TORS USED Public Works Administration $r Adminy�;traticn and engineering costs are derived on the Engineving basis of $88.25 per acre for all land uses. Facility & Equipment Facility and equipment maintenance costs are derived on Maintenance the basi 1 $Iks.?0 per acre for all land uses, Street maintenance Street maintenance cost is derived on the basis of $1 .51 per foot. Lwrary library Lost is derived on the oasis el t5.21 per capita for residential projects only. rq "Y F .a is ' �'`• (3) Licenses and permits such as animal licenses and business *, i• licenses (for apartments aid mobile home parks). (4) Revenue from other agencies such as trailer coach license fees (for mobile homes), motor vehile in-lieu fees and gasoline tax. s.. (5) Other revenues such as fines, forfeitures and penalties, ands , `. k various miscellaneous revenues. ' : ` Table 4.6 presents a summary of thesQ 1979 revenue impacts on a per dwelling unit basis for each of the fourteen residential land uses selected. Likewise, residential 'and uses in the City of Huntington Beach can generally be expected to have impacts in the following cost categories: 0) General yovernment and administration (2) Public safety such as police and fire protection, (3) Harbors and beaches (4) Parks and recreation (5) Public works such as administration and engineering, facility and equipment maintenance, and street maintenance. F (6) Library ,able 4.7 presents a summary of these 1979 cost impacts on a per dwelling unit basis for each of the fourteen residential land uses selected. TaM e 4.8 presents a summary comparisons of the per dwelling unit 1�79 revenues and costs. 1t is readily observed that: (1) in the low density land uses, the Lower density uses given by the estate and single family detached regular uses appear to not pay their own way in comparison to the other higher density uses. (21 at the mediurf density level, ownership units represented by V.1 single family detached townlot and condominium regular uses �.dpear to pay their own way whereas rental units do not. (3) at the high density level, the results are simil.:,r to those At the medium density level except that extremely high density rental units appear to pay their own way whereas lower density rental units do not. It is of interest to determine how sensitive these observations are to variations in dwelling unit market value b,�;ed on the ranges presented in Table 4.1 . In this regard, Table 4.9 presents the illustrative ranges of revenues less costs ;a 4-16 ja_ble,j.4 1919 Per Owelling Unit Revenues for Residential Land Uses in the City of Huntington Beach Piedium Density.._ Iriwh Density SFp SFD Condo Cood-1 K"$Iile SF6 Condo Apt.2-4 r '. 5+ Condo Apt. 2-4 Apt, 2-4 Apt.5t Estate K-rina Regular Marina. R�qk r Rome Townl R,eautar Regular _,;Oak Reg.•'ar Rc4uiar Townlot Re9u1a� REVENUE SOUVE Property Tax * $462 $471 $270 $347 $169 $ 2 $231 $154 $102 92 $146 $ 86 $103 80 Other LocalTaxes $ales Tax 101 10Z 17 87 58 45 72 56 50 49 56 r4 50 48 In-Lieu Rater Utility 10 TO 10 7 7 8 11 6 9 9 4 d 9 7 Tax Water Utilitf Tax 3 3 3 2 2 3 a 2 3 3 1 3 3 3 Gay. Utility Tax 9 9 9 9 9 9 9 9 9 9 9 9 9 Telephone Util'ty Tox 4 4 4 4 4 4 4 4 4 4 4 4 4 4 Electricity Utility Tax 13 13 13 13 13 13 13 13 13 13 13 13 13 13 w Cigarette Tax 71 10 10 9 5 6 9 6 7 6 7 8 7 5 Licenses and Pemits Animal Licenses 3 2 2 2 1 1 2 1 2 1 2 2 2 1 Business Licenses 0 0 0 0 0 $ 0 0 6 6 0 6 6 6 Reyenue.frjogklfiPr enci0s Trailer Coach License 0 0 0 0 0 233 0 0 0 0 0 0 0 0 ees Motor ehicle In-Lieu 49 45 45 38 24 28 41 27 29 25 31 36 30 11 Fees ,;a saline r 33 30 30 26 16 19 28 19 20 17 21 24 20 14 0t�ser Revenues Fines, Forfeitures S 21 14 19 16 10 12 18 12 13 11 13 16 13 9 Perial ties Miscellaneous a s 3 _3 2 2 3 2 2 __2 2 3 2 2 TOTAL a 723 $ 721 $495 $563 $320 $390 $449 S 3t1 $ 269 $247 $308 $272 $271 $222 U51ng nooinai dwelling unit values M rT1W Table 4.7 1919 Per welling Unit Public Service Casts for Residential Land Uses it the City of4untington Beach -__ L p_w 0en11iM Medium 40ensi ry - __ __ High Density _ Sr0 SFR N Condo Ca .o Mobile SFD Condo Apt.2-4 Apt, 5+ Condo Apt.2--4 Apt.2-4 Apt.S+ state Mdrina Regular Marina, Regular H9. Tawnlot _Regular Regular Regular Requiar Re ular Townlot Regular General Govermmnt $133 $122 $121 $102 $ 55 $ 7b $111 $ 74 $ 80 d 69 $ 84 $ 98 $ 81 S 57 t Administration Public Safety; Mire Protection 146 134 134 112 71 82 122 82 88 76 93 108 89 63 Fite Protection 53 i11 81. 68 43 50 74 50 53 46 56 65 54 38 Harbors. Beaches "?rks Harbors b Beaches 5 4 4 3 2 3 4 3 3 2 3 3 3 2 Parks S Recreation 27 ?5 25 21 13 15 23 15 16 14 17 20 17 12 J Public storks yAdnirftratoh & 59 18 20 13 14 13 11 t0 6 7 6 6 5 4 Engineering Facility & Equipment 97 30 33 21 23 21 17 16 10 9 9 8 6 Maintenance Street Maintenance 161 71 86 22 23 20 40 21 22 ?0 9 :'2 18 14 Library 22 20 20 17 11 12 18 12 11 11 14 16 _ _13 —9 TOTAL S 739 $505 $524 $~379 $255 $291 $420 $283 $291 $256 $291 $347 $288 $205 I 4 t f_I .2� arY Table 4,.8 Comparison of 1979 per Dwelling Unit Revenues and Costs for Residential Land Uses i ) the City of Huntington Beach v 'k- r.rw Revenue Revenue- ;" ,. Minus to-Cost Type of Residential Use Revenue Cost Cost Ratio Low Density � Estate $723 $739 ($15) 0.98 SFD Marina 7 505 216 1 ,43 w SFD Regular 495 524 (29) 0,94 Condo Marina 563 379 184 1.49 Condo Regular 320 265 55 1.21 Mobile dome 390 291 99 .34 Medium Density SFD Townlot 449 420 29 1.07 Condo Regular 711 283 28 1.10 Apt. 2-4 Regular 269 291 (22) 0.92 Apt. 5 Regular 247 256 0,96 High Density Condo Regular 308 291 17 1,06 Apt, 2-4 Regular 272 347 (75) 0.18 Apt. 2-4 Townlot 271 2F8 (17) 0.94 Apt, 5+ Regular 222 20S 17 1.08 4.19 T i able 4.3 Conparison of 1979 Per Dwelling Unit Revenue Ranges and Cosh, for Residential Land Uses in the Cit J Huntington Reach Revenue y„_ Revenue Minus Cost (Revenue-To-Cost Ratio Type,.nf Residential,tlse Low Nominal Nth Cost LoN Nominal Fish_ 66w om na._ li? N. Eow_IIeR� Estate $6A0 $723 $ 893 $739 ($59) ($16) $154 0.92 1.21 SF0 Marina r,63 721 1,015 505 163 216 510 1.32 1.43 2.01 SFU Regular 434 495 572 524 (90) (29) 48 C.83 0.94 1.09 Condo Marina 519 663 883 379 140 184 504 i.W 1,49 2,33 Condo Regular 303 320 338 265 38 55 73 1.14 1.21 1.28 Mobile Hom- 356 390 458 291 65 99 167 1.22 1.34 1 57 NediuT Density r SF0 Townlot 440 449 466 420 20 29 46 1.05 1,07 1.11 Condo Regular 303 311 337 283 20 28 54 1,07 1.10 1.19 Ap' 2-4 Regular 259 269 276 291 (32) (22) (15) 0.89 0.92 0.95 Apt- Regular 239 247 256 25C (17) ( 9) 0 0.93 0.96 1.00 High 0snsi tr Condo Regular 30 308 334 291 9 17 43 1.03 1.06 1.15 Apt. 2-4 Regular 261 272 28, 347 86) (75) '60) 0,75 0.78 0.83 Apt, 2-4 Towniot 260 271 277 28G �28) (17) (11) 0.90 0.94 0.96 Apt. 5+ Regular 218 222 236 205 13 17 31 1.06 1.08 1.15 ,a n k t r uJr ,; ,yam and revenue-to-cost ratios for taese potential market value ranges. Generally .` speaking, the observations stated previously are still true, however, there appears to �_ a crossover in estate unit market value be $300,000 and ; $375,000 so that breakeven occurs. In particular, referring to Table 4.10, we aee that estate units with market value of at least $308,736 car be expected � ,> to pay their own way in 1979 whereas estate units with value less than $308,736 f cannot be expected to pay their own way. Similarly, single family detached regular dwelling units also show a crossover around $191,160, which means that units with market value at least $191 ,160 can be expected to pay their own way in 1979 whereas units with market value less than $191,160 cannot be expected to pay their own way. 3 It is also noteworthy to observe that the minimum market value per dwelling unit for mobile homes to pay their own way in 1979 is approximately $30,700, which is considerably less than new mobile home units could be bought for today. In other words, a new mobile home unit in the City today would appear to pay its own way on the basis of comparing 1979. revenues with 1979 costs; however, this could change after July 1, 1980 when new mobile home units will no longer pay vehicle license fees and will be placed on the property fax rolls. If this were the case in 1979, then, referring to Table 4..6, the trailer coach license fees would be reduced —,)m $233 to ,$0 whereas the property ta:. revenue would increase by (.01)(,154)($35,000) = $54. The net effect would be a total annual revenue of $390 _ $233 -r :$54 = $211 . In comparison to the 1979 cost of ,$291 (referring to Table 43), we observe that the result would be a deficit rather than a surplus in 1979. The point is that this change in taxation of mobile homes could significantly alter the annual revenue-to-cost ratio for City services. In addition, the formulas in Table 4.10 can be used to compute. 1979 revenue and cost estimates for other choices of dwelling unit market value and people per dwelling unit. IT IS IMPORTANT TO NOTE THAT THE DATA AND 'INFORMATION PRESENTED IN TABLES 4,6 - 4.10 ARE FOR ONE POINT_ IN TIME ONLY NAMELY, 1979,. THUS, IT IS A STATIC COMPARISON OF REVENUES AND COSTS ASSOCIATED WITH SELECTED RESIDENTIAL 4-2?' Table 4,10 1979 Per Dwelling unit Revenue and Cost Formulas for Residential land Uses in the City of Huntington Beach Dwelling Unit Breakeven Type of Residential Use Revenue Formula Cost Formula Market Value* Lp�w Densj Estate .0017353V+81.58+34,46P 120.26P+317.03 $308,736 SFD Marina .0017353V+81 .58+34.46P 120,26P+119.78 180,728 SFD Regular .0017353V+81.58+34.46P 120.26P+138.74 191,160 Condo Marina .0017353V+76.82+34.46P 120.26P+ 56.07 121,047 Condo Regular ,0017165V+72,69+34,46P 120.26P: 60.60 78,432 Mobile home .0068431V+81.70+34,46P 120.26P+ 54.37 20,706 MedMedium4m Donau SFD Townlot .0017.353V+83.26+34,46P 120.26P+ 67.58 135,835 { Cando Regular 0017165V+72.44+34.46P 120.26P+ 47.48 83,430 Apt. 2-4 Regular .0017165V+82.32+34.46P 120,26P+ 38.19 79,260 Apt, 5+ Regular .0017165V+81.44+34,46P 120.26P+ 37.40 65,002 Hioh.Densit Condo Regular .0017165069.94+34.46F 120.26PI• 23.73 84,047 Apt. 2-4 Regular .0017353V+85.10+34 46P 120.26P+ 36.97 99,829 Apt. 2-4 Toanlot .0017165V+80.97+34.46P 120,26P+ 31.02 77,869 Apt. 5+ Regular .GG17165V+79.96+34.46P 120.26P+ 23.06 42,329 NOTE: V= dwelling unit market value P= population per dwelling unit Based on using the population per dwelling unit values of Table 4.1 in the revenue and cost formulas to determine the value of V for which revenue equals cost. L 'Ali t xt LAND USE'S IN THE CITY. AS SHOWN EARLIER IN 74BLES 1 .? AND 1.4, THE REVENUE AND COST FACTORS VARY EACH YEAR, THUS CAUSING A DYNAMIC SITUATION TO OCCUR EACH YEAR RATHER THAN THE STATIC SITUATION EXAMINED IN THESE TABLES, xT IS FOR THIS REASON THAT ONE CANNOT NECESSARILY INFER THAT A RESIDENTIAL DEVELOPMENT WHICH PAYS ITS OWN WAY TODAY WILL CONTINUE TO DO SO IN THE LONG-RUN OR FOR ANY FUTURE t YEAR. } 4.2 Comparison of Commercial Land Uses Commercial land uses in tna City of Huntington Beach can be expected s ;# to impact the fo lowing revenues: (1) Property tax (2) Other local taxes such, as sales tax, in-lieu .eater utility tax, water utility tax, gas utility tax, teleQhone utility tax, and electricity utility tax. (3) Licenses id permits such as business licenses and alcoholic beverage , -s, Table 4.11 presents the expected impacts on these annual revenues for the seven selected coamercial land uses. Also, commerCal land uses impact various public service costs of the follo� ing types:. (1 ) General government and administration (2) Public safety such as police and fire protection (3) Public works such as administration and engineering, facility and equipment maintenance, and street maintenance. Table 4.12 presents the expected impacts on these annual public service costs for the seven sele ted comercial land uses. In summ t, Table 4.73 shows that all of the commercial land !uses with the exception of '`ice/professional generate revenues significantly in excess of casts, ranging f im a love of $2,440 per acre for neighborhood centers to a high of $10,391 per ire for community centers. The deficit associated with office/ professional use can be directly attributed to the lack of sales tax revenue the significance of this is readily observed from the sales tax revenue estimates shown in Table 4.11 for the other commercial uses. 4-23 Table 4.11 1979 Per Acre Revenues for Commercial Land Uses in the Cite )f Huntington Beach Mixed Community Community Mixed Specialty Center Center Neighborhood Convenience Cowinercial/ Office/ Commercial REVENUE SOURCE _Type A Type s_ Center Center Office Professional &Residential Property Tax $1 ,264 $ 1329 $1,114 $ 902 $ 4,335 $ 808 $1 ,786 Other Local Taxes Sagas Tax M 6,293 11,352 3,518 4,877 13,429(4) 0 4.4500) In-Lieu stater Utility 32 21 39 74 86 6 155 Water Utility Tax 11 7 13 25 29- 2 52 Gas Utility Tax (2) (2) (2) (2) (2) (2) 49(3) Telephone Utility Tax 9 4 8 19 102 16 81 (3) Electricity utility Tax (2) (2) (2) (2) (2) (2) 75. Cigarette Tax 0 0 0 0 0 0 50 IM N Licenses and Permits Animal Licenses 0 0 0 0 0 0 11 Business Licenses 119 64 100 221 373 149 335 Alcoholic Beverage 100 71 139 359 20 Q 38 Fees Motor Vehicle In-Lieu 0 0 0 0 0 0 219 Fees Ua�;oline Tax 0 0 0 0 0 0 148 Other Revenues Fines, Forfeitures & 0 0 0 0 3 0 94 Penalties Miscellaneous 0 0 0 0 0 0 17 TOTAL $7,828 $12,848 $4,931 $6,477 $18,374 $ 981 $7,560 a (1 Assumes 80% of residential expenditures are elsewhere in the City (2� Unable to meaningfully estimate ( (3) From residential use only (4) $3,442 in sales tax plus $9,987 in bed tax revenue (based on $36 per night, 727, occupancy and 6% bed tax) Table 4,12 1979 Per Acre Public Service Costs for Commercial Land Uses in the City of Huntington Beach Mixed Community Community Mixed Specialty Center Center Neighborhood ;-lnvenience Commercial/ Office/ Commercial COST SOURCE TYPe Fi Tye8� Center ` Center ry Office Professional & Residential General Govermient $ 684 $ 684 $ 684 $ 684 $ 684 $ 684 $1,277 Administration Public_Safes Police Protection 796 837 789 525 4,3b5 505 1 ,460 Firs Protection 488 512 482 319 2,642 306 885 Harbors, Beaches & Parks Harbors & Beaches 0 0 0 0 0 0 20 Parks & Rec-,eation 0 0 0 0 0 0 121 Public Works Administration & 88 88 88 88 88 88 88 Engineering Facility & Equipment 146 146 146 146 146 146 146 Maintenance Street Maintenance 190 190 302 435 107 375 207 Library — 0 vm,_..._0 -- 0 -- p 0 —0 97 TOTAL $2,392 $2,457 $2,491 $2,197 $8,032 $2,104 $4,301 0 3 Table 4.13 Co arisen of Per Acre 1979 Revenues and f Public Service Costs for Commercial Land i Uses in the City of Huntington Beach 3 rp„ Revenue Revenue Hinus to-Cast � Ty pe of Cozrmercial Land Use Revenue 4rest Cost Ratio Community Center Type A $ 7,828 $ 2,392 $ 5,436 3.27 f� Comunity Center Type 8 12,848 2,457 10,391 5.23 Neighborhood Center 4,931 ?,491 2,440 1.98 Convenience Center 6,477 2,197 4,280 2.95 Mixed Cotmarmercial/Office 18,374 8,032 10,342 2.29 Office/Professional 981 2,104 (1,123) 0.47 Mixed Specialty Comercial 7,560 4,301 3,259 1.76 & Residential 4-2 y { s /f a �� Ms7y' As in the case of the residential analysis in Section 4.1 , IT IS IMPOR- TANT TO MOTE THAT THESE OBSERVATIONS ARE FOR ONE POINT IN TIME ONLY NAMELY, 1979, �F " BECAUSE OF THE FACT THAT THE ANNUAL REVENUE AND COST FACTO"S ARE DYNAMIC IN THE SENSE THAT THEY CHANGE EACH YEAR, CONCLUSIONS MADE FOR FUTL .E YEARS OR IN THE LONG-RUN COULD CONCEIVABLY BE DIFFERrNT. y 4.3 Comparison of Industrial Land Uses Industrial land uses in the City of Huntington Beach can be expected to have similar types of revenue (with the exception of alcoholic beverage fees) and cost impacts as commercial land uses. In this regard, Tables 4.14 and 4.15 present the expected annurl revenue and cost impacts, respectively, for the five selected industrial uses. Table 4.16 presents a summary of revenues versus costs in which it is observed that warehousing and various non-structure storage and related uses do not pay their way in 1979. Generally, because manufacturing business in the size range 8,000-30,000 sq, ft. are wholesale oriented rather than retail oriented, there is a lack of significant sales tax revenue which would have the effect of causing industrial uses of this type to be less attractive from a fiscal point of view. This is indeed the case as is shown in Table 4.16 for this type of light manufacturing use. By comparison, light manufacturing uses requiring less than 8,000 sq. ft. are more retail oriented ­-1 thus generate revenues it excess of costs. It should not necessarily be from these results that manu- facturing uses do not: generate revenues of costs, since this may or may not be the case. That 'Is important generally the determining factor in whether or not such a use pays its own way is whether or not retail sales tax is generated, Likewise, as in the case of the selected commercial uses, IT IS I11POR- TANT TO NOTE THAT THESE OBSERVATIONS ARE FOR ONE POINT IN TIME, ONLY - NAMELY, 1979, BECAUSE OF THE FACT THAT THE ANNUAL REVENUE AND COST FACTORS ARE DYN411C IN THE SENSE THAT THEY CHANGE EACH YEAR, CONCLUSIONS MADE FOR FUTURE. YEARS OR IN THE LONG- RUN COULD CONCEIVABLY BE DIFFERENT. 4-2 7 Table 4.14 1979 Per Acre Revenues for Industrial hand uses . - in the City of Huntington Beach Light Manufacturing Warehousing Less Than 8,000 to Combination 8,000 sq.ft. 30,000 sq.ft. Mini Regular ikon-Struct,iral/ REVENUE SOURCE Per Tenantµ Per Tenant w_ Warehousi nq Warehousing Miscellaneous Service Property Tax $ 887 $ 946 $ 733' $ 866 $ 146 Other Local Taxes. Sales Tax 1 ,749 1,431 0 1 ,047 225 In-Lieu ;!dater utility Tax 36 7 5 5 4 Water Utility Tax 12 2 2 2 1 Gas Utility Tax (I Telephone Utility Tax 3 3 8 8 1 Electricity Utility Tax (l� 0 ) (I ) (1 ) (1 � Licenses and_ Permits ca Business licenses 392 79 S5_ 84 _ 12 TOTAL $3,115 $ 2, 71 $ 813 $ 2,012 $ 389 (1) Unable to meaningfully estimate : a r Table 4,15 1579 Per Acre Public Service Costs for Ind0strxal r Land Uses in the City of Huntington b:-ach , l i4ht Manufacturigg_ Warehousir, Less Than 3,000 to Combination 8,000 sq.ft. 30,000 sq,ft. Mini Regular Nan-Structural! COST SOURCE. Per Tenant_. Per tenant j arehousin Wat,ehousiig Miscel laneou 3,-r,?ice General twiernment & $ 684 684 t84 $ u84 $ 684 Administration Public Safe' Police Protection 875 881 1,014 1,111 1,167 Fire Protection K28 533 6?0 679 709 Puhl is Works U Administration & 88 83 88 88 88 Engineering Facility & Equipment 146 146 146 146 146 Maintenance Street Maintenance 335 335 244 _ 244 _279 TOTAL, $2,656 $2,667 $2,796 $2,952 $3,07' s •r $ u, �z Iab e 4.1.16 Comparison of Per I,-re 1979 Revenues and Public Service Cost> for Industria0 Land Uses in the City of Huntington Beach � iN Revenue Revenue- Minus to-Cost } Type of Industrial band Use, Revenue Cost Cost Ratite ° r^; Light.Manufacturing 4� �'.. <8,000 sq. ft. Per 'Tenant $3,115 $2,656 a 459 1.17 B4OOU - 30,000 sq. ft, 2,471 2,667 (196) 0.93 Per Tenant # Warehousing Mini Wareh using 813 21796 (11983) 0.29 Regular Warehousinq 2,012 21952 (940) 0.68 Gowination Hon-Structural/ 389 3,073 (2,684) 0.13 Miscellaneous Service 4-30