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Home My WebLink About2008/2009 Park Impact Fee Annual Report - Section 230.20 of Council/Agency Meeting Held:_ Deferred/Continued to: �.Appr ve ❑ Conditionally Approved 0 Denied i Cler 's Signaf re Council Meeting Date: April 19, 2010 Department ID Number: CS 10-006 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Administrator PREPARED BY: Jim B. Engle, Director of Community Services SUBJECT: Receive and File 230 Park Impact Fee Annual Report for FY 2008/2009 Statement of Issue: On November 18, 2002, the City Council approved the establishment of a Park Impact Fee to be levied on the construction of new floor area for all commercial and industrial development and all residential development not covered by Quimby fees. State law requires the preparation of an annual report. Funding Source: Not applicable Recommended Action: Motion to: Receive and file the 230 Park Impact Fee Annual Report for fiscal year 2008/2009. Alternative Action(s): Do not receive and file the report, and direct staff accordingly. Item 10. a Page 1 REQUEST FOR COUNCIL ACTION MEETING DATE: 4/19/2010 DEPARTMENT ID NUMBER: CS 10-006 Analysis: On November 18, 2002, the City Council approved the establishment of a Park Impact Fee per Section 230.20 of the City's Zoning and Subdivision Ordinance. This fee is imposed on all residential development not covered by Quimby fees (Section 254 of the City's Zoning and Subdivision Ordinance), and on the construction of new floor area for all commercial and industrial development. The purpose of the fee is for the development and rehabilitation of the city's park and recreational facilities. The fee is based on square footage and is currently set at $.86 per square foot for new residential and $.23 per square foot for new commercial and industrial development. According to the reporting requirements of California Government Code 66006, the city must prepare an annual report (Attachment 1) describing the fee, the amount of fees collected and interest earned, and the identification of projects on which the fees are expended. The report is to be made available to the public within 180 days of the close of the fiscal year. The code also specifies that the report must be reviewed by the City Council at a regularly scheduled meeting not less than 15 days following its release to the public. In addition, notices of the time and place of the meeting are to be mailed to any interested parties who have filed a written request. The report was released for public review on March 30, 2009 (Attachment 2). No written requests for notification had been received by the City Clerk's Office at the time the Request for Council Action was prepared and submitted for City Council consideration. As shown in Section III of the report, $149,172 in fees were collected during the 2008/2009 fiscal year, plus an additional $71,124 in interest. Expenditures totaled $357,556 for various park improvements including park leases, contracted professional services for design and environmental, park rehabilitation projects, youth sports grants, and staffing costs. The fund balance for the Park Impact Fee, per Zoning and Subdivision Ordinance Section 230.20, is $1,597,240 as of September 30, 2009. Environmental Status: N/A Strategic Plan Goal: Maintain, Improve and Obtain Funding for Public Improvements Attachment(s): Description 1. Park Impact Fee Annual Report — FY 2008/2009 2. Overview of Park Fee Annual Report 3. Memorandum dated March 30, 2010 Item 10. - Page 2 ATTACHMENT # 1 230 PARK IMPACT FEE ANNUAL REPORT FISCAL YEAR 20081200.9 L BACKGROUND On November 18, 2002, the City of Huntington Beach passed Emergency Interim Ordinance No. 3594 pertaining to Section 230.20 of Chapter 230 of Title 23 of the City's Zoning and Subdivision Ordinance. The ordinance established a Park Impact Fee to be imposed on the construction of new floor area for all commercial and industrial development,. and all residential development not covered by Section 254.08 of the Zoning and Subdivision Ordinance (known as Parkland Dedication pursuant to the Quimby Act). On December 16, 2002, Emergency .Ordinance No. 3596 was also approved, along with governing Resolution No. 2002-129. If. REPORTING REQUIREMENTS State law imposes both annual and five-year reporting requirements as a result of its collection of Park Impact Fees. The specific elements to be included in the report include: • A brief description of the type of fee in the fund account ® The amount of the fee ® The beginning and ending balance The amount of fees collected and interest earned Identification of each public improvement on which fees are expended ® An identification of the approximate date by which the construction of public improvements will commence if the local agency determines that sufficient funds have been collected to complete the financing on an incomplete building improvement ® A description of each interfund transfer loan made from the fund balance • The amount of refunds made pursuant to any protests The annual report is to be made available to the public within 180 days following the close of the fiscal year. It is also to be reviewed by the City Council no less than 15 days after the information is made available to the public at its next regularly scheduled meeting. This year the report is being presented to the City Council on April 19, 2010. Fee Description: As stated in Resolution 2002-129 (Attachment 1), the purpose of the fee is for the development and rehabilitation of the City's parks and recreational facilities in order to assure that the policies and standards for park, open space and recreational facilities contained in the City's General Plan and described in the City of Huntington Beach Park Strategy and Fee Nexus Study (Dec. 2001) and 1 Item 10. - Page 4 addendum (Sept. 25, 2002) are met. According to ZSO 254,08 (c), this standard is five acres for each 1,000 residents. In addition, Resolution 2004-88, adopted November 15, 2004, further specifies that Section 230.20 fees must be used for park and recreational facilities and improvements included in the city's Capital Improvement Program and identified in the Park Acquisition and Development budget as approved each year by the City Council. Fee Amount: According to Zoning and Subdivision Ordinance (ZSO) 230.20, the fees are to be paid and calculated according ,to a schedule adopted by City Council resolution. Resolution 2002-129 sets the fee for new residential development at $.86 per square foot and $.23 per square foot for new commercial and industrial development. The fees are paid upon issuance of any building permit or prior to final inspection on new residential development. Interfund Loans No park fees were loaned during this reporting period. Refunds Due to Protests No refunds were made die to protests during this reporting period. Ill. FINANCIAL SUMMARY Fiscal Year 2008/2009 Revenue As shown in Attachment 2, the beginning fund balance as of September 30, 2008, was $1,734,500. During fiscal year 2008/2009, $149,172 in fees were collected, plus $71,124 in interest, for a total revenue of $220,296. As expected, revenues in 2008/2009 were well below the trend in recent past, due to the economic downturn and subsequent large decrease in construction projects within the city. Fiscal Year 2008/2009 Expenditures As also shown in Attachment 2, $357,556 were expended for various park improvement projects and staffing, including park leases, contracted/professional services, rehabilitation of the clubhouse facility at Lake View Park, and youth sports grants. to community organizations. Fiscal year end fund balance was $1,597,240. Contractual expenditures in FY 08/09 continued with projects such as Edison Park Youth Sports Complex and LeBard Park Phase 11 moving forward. Item 10. e Page 5 ATTACHMENT #2 OVERVIEW ATTACHMENT 2 230 Park Impact Fee Annual Financial Summary Statement for Fiscal Year 200812009 Fund Balance 9/30108 1,734,500 Revenue FY 200812009 Fees 149;172 Interest 71,124 Revenue Subtotal 220;296 Expenditures FY 2008/2009 Park Leases/ Equipment Rental 11,100 Professional/Contracted Services 95,551 Youth.Sports Grant Awards 150,000 Lake View Clubhouse 7,896 Staffing 93,009 Expenditure Subtotal 357,556 Fund Balance 9130109 $1,597,240 Item 10. m Page 7 ATTACHMENT #3 CITE' OF HUNTINGTON Inter Office Communication y . } Community Services [department A TO: Honorable Mayor and City Council Members VIA: Fred A. Wilson, City Administrator FROM: Jim B. Engle, Community Services Direct GATE: March 30, 2010 SUBJECT: RELEASE OF 230 PARK FEE ANNUAL REPORT FOR FY 200812009 On November 18, 2002, the City Council approved the establishment of a Park Impact Fee per Section 230.20 of the City's Zoning and Subdivision Ordinance. This fee is imposed on the construction of new floor area for all commercial and industrial development, and all residential development not covered by Quimby fees (Section 254 of the City's Zoning and Subdivision Ordinance). According to reporting requirements of California Government Code 66006, the.City must prepare an annual report of these fees and make the report available to the public within 180 days of the close of the fiscal year. The Code also specifies that the report must be reviewed by the City Council not less than 15 days following its release to the public. The annual report for fiscal year 2008/2009 is attached for your preliminary review. It will be officially transmitted for approval at the April 19, 2010, City Council meeting. By way of this transmittal, I am releasing this report for public review. Please feel free to contact me should you have any questions regarding the attached information. C. Jennifer McGrath, City Attorney Joan Flynn, City Clerk Attachments: 1. Overview 2. Resolution No. 2002-129 Item 10. e Page 9