HomeMy WebLinkAbout230 PARK IMPACT FEE ANNUAL REPORT FOR FY 2005/2006 Council/Agency Meeting Held: Z40
Deferred/Continued to:
U Ap roved ❑ ondifi nally Ap rove ❑ Deni d . Ci C erk' Signa e
Council Meeting Date: 4/2/2007 Department ID Number: CS 07-010
CITY OF HUNTINGTON BEACH
REQUEST FOR COUNCIL ACTION
SUBMITTED TO: HONORABLE MAYOR AND.D T CIL MEMBERS
SUBMITTED BY: PENE�OPE CUILBRETH-GRAFT, DPA, CITY ADMINISTRATOR
PREPARED BY: JIM B. ENGLE, DIRECTOR, COMMUNITY SERVIC
SUBJECT: RECEIVE AND FILE 230 PARK IMPACT FEE ANNg REPORT
FOR FY 2005/2006
Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s)
Statement of Issue:
On November 18, 2002, 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 2005/2006.
Alternative Action(s):
Modify report, and direct staff accordingly.
REQUEST FOR COUNCIL ACTION
MEETING DATE: 4/2/2007 DEPARTMENT ID NUMBER: CS 07-010
Analysis:
On November 18, 2002, 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). 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 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 16, 2007 (Attachment
2). No written requests for notification had been received by the City Clerk's Office at the
time Request for Council Action was prepared and submitted for City Council consideration.
As shown in Section III of the report, $592,035 in fees were collected during the 2005/2006
fiscal year, plus an additional $95,476 in interest. Expenditures totaled $313,416 for various
park improvements including park leases, contracted professional services, 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 $1,799,313 as of
September 30, 2006.
Environmental Status: Not applicable
Attachment(s):
City Clerk's
Page Number No. Description
1. Park Impact Fee Annual Report— FY 2005/2006
2. Memorandum dated March 14, 2007
G:\RCA\2007\07-010 Park Fee Annual Report.doc -2- 3/19/2007 9:47 AM
ATTACHMENT # 1
230 PARK IMPACT FEE ANNUAL REPORT
FISCAL YEAR 2005/2006
I. 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.
II. 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 2, 2007.
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
1
contained in the City's General Plan and described in the City of Huntington Beach Park
Strategy and Fee Nexus Study(Dec. 2001) and 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 to finance 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 due to protests during this reporting period.
III. FINANCIAL SUMMARY
Fiscal Year 2005/2006 Revenue
As shown in Attachment 2, the beginning fund balance as of September 30, 2005, was
$1,425,217. During fiscal year 2005/2006, $592,035 in fees were collected,plus $95,476
in interest, for a total revenue of$687,511.
Fiscal Year 2005/2006 Expenditures
As also shown in Attachment 2, $313,416 were expended for various park improvement
projects and staffing, including park leases, contracted/professional services, park
rehabilitation, and youth sports grants to community organizations.
2
Attachment 1
RESOLUTION NO: 2QH-12 (UPOa1.e Res 6226)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF HUNTINGTON BEACH RELATING TO THE PAYMENT OF A PARK.
"FFEPURSVANT.TQOSECTIOI4230tq0 7F.`..CF IC INIINGTON;.BEACHZQNdNC 'AND.
: .. .S'UBDM816N 0R0W*Q .
WHEREAS,Section 230.20 of Chapter 230 of Title 23 of the City of Huntington Beach
Zoning and Subdivision Ordinance("City Zoning and Subdivision Code")requires all new
commercial and industrial development and all new; sidgn*.90evelopment not covered by Chapter
254'of Title 25,of the City Zoning and Subdivision Code,except for mobile home parks,to pay'a '
park in-lieu fee in accordance with the requirements of Chapter 254 and calculated according to a
schedule adopted by City Council resolution;and
The City Council has reviewed a report-dated December 2001 entitled"City of Huntington
BeachPark Strategy and Fee Nexus Study"(hereinafter`T'ark Fee Study")and an addendum
thereto dated September 25,2002(hereinafter"Addendum'),which evaluated the impacts of
contemplated future development on existing park and recreational facilities within the City of
Huntington Beach. The.Park Fee Study.and Addendum include an analysis of the need for new
park and recreational facilities and improvements required by new development and sets forth the
relationft.between new development,the aeeded.facilities;and the-ooisnaw.costs of those..':
• itriproyecents;and.-
The Park Fee Study and Addendum have been available for public inspection and review
prior to consideration of this resolution by the City Council after a public hearing.
THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH DOES HEREBY
FIND,RESOLVE AND DETERMINE ASFOLLOWS:
EEQUON 1. E dings. After review of the Park Fee Study and Addendum,other staff
reports, and the testimony and information received on this matter,the City Council makes the
fallowing Endings:
1 .. That the Iautpose of the fec ta;be paid.pursuant to Becton 230.20�of Chaplet30 of
Tine 23'of�tbe Citx antiubclivisiori Code("F`ee")cis fQz the developniant�d
rehmii6fi of tie City's parks and rex reational facilitiesf iri ordet to assure fliai'thd
policies and standards for park,open space and recreational facilities contained in the
City's General Plan and described in the Park Fee Study are met.
2. That additional park and recreational facilities will be needed to serve.commorcial,
industrial and residential development within the City subject to S,eotion 230.20 of
the City's Zoning and Subdivision Ordinance iii order to meet the policies and goals
f contained In the City's Qeneral Plan.
3. That the Fee unposed as a condition of development approval in connection with the
construction of new floor arm for all commercial,industrial and residential
E5.6
a�soLti-rr�oonu,Ifeu paricackaneoc 1 •
:......_..._.........— .._.__........._......_................................................................................_.
s
4
♦ ' {F{
• J
development projects subject to Section 230.20 of the City Zoning and Subdivision-
Code,Code,shall be used to develop and rehabilitate park and recreWonal facilities within �.
the City`fo assure the provision of park land lmd recreational faeilitiesimded to
serve such development at established City service levels standards within a
reasonable period of time'.. .7`hatxheFei�berebyilnposed 'reasonabXyrela�ed'#o.1finaact ;afu$wedeitiaJ,. 4
commercial and industrial development because,as determined by the Park Fee
Study aW the Addendum,future residents will benefit from appropriately planned,
and constructed park and rocreatlonal facilities. The Fee is reasonably related to the
impacts of development on the Cihr's park land and recreational des because,
and demonstrated by the Fee Study and the Addendum,the type of development 3
subject to the Fee generates increased use of park and recreational facilities
throughout the City which necessitates development-and rehabiliation of the Caty's
existing park and recreational faaildw and acquisition of additional facilities. The
Fee proceeds will be used to mitigate these impacts.
S. That there is a reasonable relationship between the amount of the Fea and-the portion
of the cost of needed park and recreational facilities and/or improvements
attributable to new development in the City because thb amount of the Fee is based
upon the square footage of the.proposed development.
• s•. ¢.• The fees cgllected pursuant to this ResoltidoQshalt.he•transf�crre�l.for deposit-inta:a _
separate f and fib irl x fees of roveuues pf the•citi.and:� .sucli>i i s shalh•b&•: E
accouirted bbr:The aoCoimt s1i 11 be an'interesf r'sah acabum tini(all fid6r,e
received shall be credited to such account and used solely for purposes of that
account.The,City shall commit or expend park fees deposited to the account within
five years from the date of deposit.
SHC•1'ipN Z. De ' 'ons. For the purposes of thus Chapter,the following terms shall be
defined as follows.
(a) "New development"shall mean the construction of new floar area for a residential,
commercial or industrial project;
(b)-"Commercial or Industrial Development ProjecC-shall mw,the construction of New Floor
.area'on slut iir'any non-esilential• an;n district'ofthe City;".
.
(c) "Floor Area"shall mean the area of all floors and levels as defined in the Huntington Beach
Building Code;
1
(d) "Residential Development Project"shall man the construction;of new Floor Area on a lot
in any residential zoning district of the City.
a
-SE-MgN 3. Let. For new residential development,the Park Fee shall be equal to$0.86 a
• per square foot, For each new commercial development,the fee shall be$0.23 per square foot.
For each now industrial development,the fee shall be$0.23 per square foot.
E5 .7
Q 1RESOM•[1OMMO lieu Trade.CIM&C 2
SEC;=4. Pavement of Fee. The Park Fee shall be charged upon issuance of any
Building Permit, A Park Fee imposed on new commercial or industrial development shad be paid
. / upon issuance of a Building Permit. A Park Fee imposed on new residential development shall be
paid prior to the final inspection.
;. 'SECTION• •5. se qf, .':AU Fees collected Pii Uopt td Seotfon.-230.20.of the.City anii,�ig '
_ d Subdii�ision Code:sha�l,tie:used xo fitiinc� a ►aria anti rest'eatioiia ;f cillt u<s;arid impr �atii
identified in the"Park Development and Rehabilitation Capital Improvement Plan"as adopted by
the City Council on an annual basis.
SE(M—ON¢. E%qWJJQna. The following development shall be exempt from the payment
Of fees pursuant to,this Section;
1. Development of real property into housing units that are either rented,leased,sold,
conveyed or otherwise transferred,at a rental price or purchase price WVch does not
exceed the"affordable housing cost"as defined in Section 50052S of the California
Health and Safety Code when provided to a`lower income household" as defined in
Secdon50079.5 of the California Health and Safety Code or"very low income
household"as defined in Section 50105 of the California Health and Safety'Code,-
and provided that the applicant executes an agreement,in the form of a deed
restiction,seconid trust deed,or other legally binding and enforceable document
acceptable to the City Attorney and binding on the owner and any successor-in-
. _ interest to the real pmpepty being developed,guaranteeing#fiat Al of units '
developed Qn the real property shall be iiiaintained for lowex.antl'Nery Sow mcome':
households iRrliether as ii&ts-for-reef oi'for sale o'r bt6sfer,for the les9er"of a peiridct
of thirty years or the actual life or existence of the structure,including-any additions
renovation or remodeling thereto.
2. Reconstruction of any residential;•commercial,or industrial development project tht
is damaged or destroyed as a result of a natural disaster,as declared-by the Governor.
Any reconstruction of real property,or portion thereof,which is not substantially
equivalent to the damaged or destroyed property,shall be deemed to be new
construction and.only that portion which exceeds substanially equivalent }
construction to be assesed a fee.
SECTION 7 Call&pia Environmental duality Act. The City Councij.hereby finds that
die adoption a£this R+esolutian,iis*einptt'.in the Califorrua 3nvitx�nmeatal'C�t,AtytyA4t.('KCB0A'•')'
uitder$ectioti 15273(a)(4)"of the Californua Code of Regulations,commonly known as the C$QA
Guidelines. The City Council finds that this exemption applies because there is no reasonable
possibility that the modification of the parkland in-lieu,fee could negatively affect the physical
envh mnent. To the contrary,the Fees will be collected to mitigate the environmental impacts of
new development on the City's park and recreational facilities. Any environmental impacts
associated with specific projects that may be undertaken with Fee proceeds.will be assessed as each
project is formulated. The City Council also hereby finds that the adoption of this Resolution is
exempt from CEQA pursuant to the Supplemental Environmental Categorical Exemptions adopted
the City Council pursuant to Resolution No.4501,which provides that minor amendments to
zoning ordinances that do not change the development standards intensity or density are exempt as a
Class XX exemption.
etcuR.ssot t M002Va aw pall-*Mdoo 3 E5.8
ON 8. �ff�ctive Date. This Resolution shall take effect immediately.
fON 9. Resolution No. 6226 is hereby repealed.
' } ECTI4?1`1.10: The Park lw e�:,Stgdy and fhe:Adde shun.are hex isy'a ip t► ed at►c 'adopted:'
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular
meeting thereofheld on the 16th day of December .2002.
ATTEST:eA,.�- -,A
•City Cleric Mayor
REV�WED AND APPROVED: APPROVED AS TO FORM:
City-AdnB'nistrator C1
DUMATED AND.APPROVED:
u� Community S 'ces
. Y
S
i
- 2
3
y
S
E5 .9
a.uMLUM00zw tka park-olexAft 4
, i
230 Park Impact Fee ATTACHMENT 2
Annual Financial Summary Statement
for Fiscal Year 2005/2006
I ,,IN a,
r � a
71,
Fund.Balance9/30/05 � , 1425 217"
Revenue' 10 �FY 2Q05/2OU6 �g �
It
m 3 Interesta95,476
Revenue Subtotal ;� - 6$7511 °
g '
go
Expenditures q�.Fl(20'U5/2006 '`
ePar44
k�Leas�esEquipment Rental g12222 g
� Professional/Contracted Semces91,636 _
t �' .�^��_' € �� � �.�� sti
a Park eehablitation/Repas
XMI
Youth Sporiww, rant Awards 139 350
66,470
�Expenditure Subfoaa/ 313,416
� � �� b +� :
�a�i..=� x�.,a. �"1 �`us. .� e� .fir �',"_;.'x�. " `_w• xr�
;FundBalance.9/30/06 �' ` ` '
%a'" t...•: ."+. WIM_,'1a.-^, r ak' z -fig a crab r-,'P,c s•m
"
h may" d'
r-AA
ATTACHMENT #2
•�� CITY OF HUNTINGTON BEACH
[DID Inter Office Communication
Community Services Department
TO: Honorable Mayor and City Council Members
VIA: Penelope Culbreth-Graft, DPA, City Administrator
FROM: Jim B. Engle, Director of Community Services
DATE: March 14, 2007
SUBJECT: Release of 230 Park Fee Annual Report for FY 2005/2006
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 2005/2006 is attached for your preliminary review. It
will be officially transmitted for approval at the April 2, 2007, 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
Attachment
RCA ROUTING SHEET
INITIATING DEPARTMENT: Community Services
SUBJECT: Receive and File FY 05106 230 Annual Park Fee Report
COUNCIL MEETING DATE: April 2, 2007
RCA ATTACHMENTS I STATUS ,
Ordinance (w/exhibits & legislative draft if applicable) Attached ❑
Not Applicable E
Resolution (w/exhibits & legislative draft if applicable) Attached ❑
Not Applicable E
Tract Map, Location Map and/or other Exhibits Attached ❑
Not Ap licable E
Contract/Agreement (w/exhibits if applicable) Attached ❑
(Signed in full by the City Attorney) Not Applicable E
Subleases, Third Party Agreements, etc. Attached ❑
(Approved as to form by City Attome ) Not Applicable E
Certificates of Insurance (Approved by the City Attorney) Attached ❑
Not Applicable
Fiscal Impact Statement (Unbudget, over$5,000) Attached ❑
Not Applicable E
Bonds (If applicable) Attached ❑
Not Applicable E
Staff Report (If applicable) Not Applicable
Commission, Board or Committee Report (If applicable) Attached ❑
Not Ap licable E
Findings/Conditions for Approval and/or Denial Attached ❑
Not Ap licable E
EXPLANATION FOR MISSING ATTACHMENTS
REVIEWED RETURNED FORWARDED
Administrative Staff
Assistant City Administrator Initial
City Administrator Initial
City Clerk ( )
EXPLANATION FOR RETURN OF,)TEM -,.
(Below • . For Only)
RCA Author: Brunson