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HomeMy WebLinkAboutApprove Fiscal Year 2016-17 Annual Compliance Reports for Pu Dept. ID AD-18-006 Page 1 of 3 Meeting Date:4/2/2018 7-0 CITY OF HUNTINGTON BEACH REQUEST FOR. CITY COUNCIL ACTION MEETING DATE: 4/2/2018 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Antonia Graham, Assistant to the City Manager SUBJECT: Approve Fiscal Year 2016-17 Annual Compliance Reports for Public Library, Parkland Acquisition and Park, Law Enforcement and Fire Suppression Facilities Development Impact Fees (DIF); Planned Local Drainage and Sanitary Sewer Facilities Funds and Fair Share Traffic Impact Mitigation Fee Program 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 all new floor area for all commercial and industrial development and all residential development not covered by Quimby Fees. In 2012, four new Ordinances were adopted establishing Development Impact Fees for Public Library, Parkland Acquisition and Park Facilities, Law Enforcement, and Fire Suppression Facilities. In addition, in accordance with the Huntington Beach Municipal Code and the California Government Code, three compliance reports on facilities improvement fees collected for development projects are presented for approval. The three funds managed by the Public Works Department with this requirement include Planned Local Drainage Facilities, Sanitary Sewer Facilities and the Fair Share Traffic Impact Mitigation Fee Program. California Government Code Section 66006 requires preparation of Annual Reports for Development Impact Fees (DIF). Financial Impact: Not Applicable. Recommended Action: A) Approve the Annual Compliance Report, "Public Library Facilities Development Impact Fees Annual Report Fiscal Year 2016-17;" and, B) Approve the Annual Compliance Report, "Parkland Acquisition and Park Facilities Development Impact Fee Annual Report Fiscal Year 2016-17;" and, C) Approve the Annual Compliance Report, "Law Enforcement Facilities Development Impact Fee Annual Report Fiscal Year 2016-17;" and, D) Approve the Annual Compliance Report, "Fire Suppression Facilities Development Impact Fee Annual Report Fiscal Year 2016-17;" and, t IB -29- Item 2. - 1 Dept. ID AD-18-006 Page 2 of 3 Meeting Date:4/2/2018 E) Approve the "Planned Local Drainage Facilities Fund Annual Compliance Report for Fiscal Year 2016-17;" and, F) Approve the "Sanitary Sewer Facilities Fund Annual Compliance Report Fiscal Year 2016-17;" and, G) Approve the "Fair Share Traffic Impact Fee Program Annual Report for Fiscal Year 2016-17." Alternative Action(s): Do not approve the Annual Compliance Reports and direct staff accordingly. Analysis: Reporting requirements under California Government Code 66006 specify that the City must prepare annual reports of Development Impact Fees within 180 days of the close of the fiscal year. The reports must describe the fee, the amount of the fees collected, interest earned, and identification of any expenditures from those funds. The code also specifies that reports must be reviewed by the City Council at a regularly scheduled meeting not less than 15 days following release to the public. The reports referred to in this report were released for public review on March 19, 2018 (Attachment 1). Fiscal Year 2016-17 annual reports for Public Library, Parkland Acquisition and Park Facilities, Law Enforcement, and Fire Suppression Facilities are attached for your review and approval (Attachments 2-5). A summary of the fees collected and expenditures is provided in the table below: Law Fire Parks Enforcement Suppression Library Beginning Balance $2,901,194.00 $486,355.80 $290,436.99 $353,080.00 Fees Collected (includes interest earned) $3,164,784.00 $256,103.68 $105,660.45 $209,731 .00 Expenditures $901,073.00 $0 $0 $53,806.00 Ending Balance as of 09/30/17 $5,164,905.00 $742,459.48 $396,097.44 $514,005.00 Park Expenditures: Various park improvement projects, park leases, contracted services, professional services, and staffing. As these funds are collected and their corresponding fund grows, the restricted funds may be used on projects identified in the City's General Plan, the Master Facilities Plan included in the Nexus Report that established the fees, the City's Capital Improvement Plan, or City Council approved development projects. Item 2. - 2 HB -30- Dept. ID AD-18-006 Page 3 of 3 Meeting Date:4/2/2018 Public Works: Use of the funds for the Traffic Impact, Sanitary Sewer and Planned Local Drainage fees is restricted to making system improvements as outlined in the respective master plans for each of the funds. Information contained in the reports conforms to the requirements of the Huntington Beach Municipal Code regarding revenues and expenditures in each fund. Drainage Sanitary Sewer Traffic Impact Beginning Balance $1,418,625.00 $8,166,017.00 $3,591 ,435.00 Fees Collected (includes interest earned) $63,652.00 $82,350.00 $814,496.00 Expenditures $63,795.00 $159,127.00 $610,800.00 Ending Balance as of 09/30/17 $1,418,482 $8,089,240 $3,795,131.00 Public Works Commission Action The Public Works Commission reviewed each report on February 21, 2018, and recommended approval by a vote of 7-0. Environmental Status: Not applicable. Strategic Plan Goal: Enhance and maintain infrastructure. Attachment(s): 1 . Memo to City Council dated March 19, 2018 2. 2016-17 Annual Compliance Report for the Public Library Facilities Development Impact Fees 3. 2016-17 Annual Compliance Report for the Parkland Acquisition and Park Facilities Development Impact Fees 4. 2016-17 Annual Compliance Report for Law Enforcement Facilities Development Impact Fees 5. 2016-17 Annual Compliance Report for Fire Suppression Facilities Development Impact Fees 6. Planned Local Drainage Facility Fund Annual Compliance Report for Fiscal Year 2016-17 7. Sanitary Sewer Facilities Fund Annual Compliance Report for Fiscal Year 2016-17 8. Fair Share Traffic Impact Mitigation Fee Program Annual Compliance Report for Fiscal Year 2016-17 9. Resolution 2012-23 Adopting Development Impact Fee Calculation and Nexus Study Report. HB -31- Item 2. - 3 ATTACHMENT # 1 1 �4 CITY OF HUNTINGTON BEACH Interdepartmental Memo TO: Honorable Mayor qnd City Council Members FROM: Fred Wilson, Cit n ger DATE: March 19, 2018 SUBJECT: RELEASE OF FISCAL YEAR 2016-17 DEVELOPMENT IMPACT FEE ANNUAL REPORTS FOR PUBLIC WORKS, PARKS, LAW ENFORCEMENT, FIRE SUPPRESSION, AND PUBLIC LIBRARY FACILITIES FEES Reporting requirements under California Government Code 66006 specify that the City must prepare an annual report of Development Impact Fees within 180 days of the close of the fiscal year. Additionally, the Code requires that the report be available for public review not less than 15 days prior to being reviewed at a public meeting of the City Council. The Fiscal Year 2016-17 annual reports for Public Works, Parks, Law Enforcement, Fire Suppression, and Public Library Facilities are attached for your preliminary review. They will be officially transmitted for approval at the April 2, 2018 City Council Meeting, By way of this transmittal, I am releasing the reports for public review. Please contact Antonia Graham, Assistant; to the City Manager at Antonia.graham 0),surfcity-hb.orq with any questions. Cc: Lori Ann Farrell, Assistant City Manager Michael Gates, City Attorney Robin Estanislau, City Clerk Robert Handy, Police Chief David Segura, Fire Chief Travis Hopkins, Public Works Director Marie Knight, Community Services Director Jane James, Acting Community Development Director Stephanie Beverage, Library Services Director Bob Stachelski, Transportation Manager Tom Herbel, City Engineer David Bunetta, Police Captain William Reardon, Fire Division Chief Dave Dominguez, Manager Facilities Development and Concession Ken Dills, Project Manager Kevin Justen, Senior Administrative Analyst Elaine Kuhnke, Senior Administrative Analyst Mindy James, Senior Administrative Analyst Debbie Gilbert, Senior Administrative Analyst Item 2. - 4 HB -;7_ ATTACHMENT 1 2016-17 ANNUAL COMPLIANCE REPORT FOR THE PUBLIC LIBRARY FACILITIES DEVELOPMENT IMPACT FEES H B _;;_ Item 2. - 5 PUBLIC LIBRARY FACILITIES DEVELOPMENT IMPACT FEE ANNUAL REPORT FISCAL YEAR 2016/17 1. BACKGROUND: On June 18, 2012, the City Council approved the introduction of Ordinance No. 3945 which amended the Huntington Beach Municipal Code by adding Chapter 17.67 relating to Law Enforcement Facilities Impact Fees. The second reading of the Ordinance was approved on July 2, 201 Z I. REPORTING REQUIRMENTS State Law imposes both annual and five-year reporting requirements for collection of Development Impact Fees, The specific elements to be included in the report are: • 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 the approximate date by which the construction of public improvements will commence • A description of each interfund transfer or loan made from the account or fund • 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 March 19, 2018. Fee Description: Per HBMC 17,67.065, the funds collected from the Public Library Facilities Development Impact Fee shall be used to fund the costs of expansion of the amount of library space and the number of collection items attributable to the new residential construction and shall include: The acquisition of additional property for Library construction, the construction of new facilities for Library services, the furnishing of new buildings or facilities for Library services, the purchase of Library collections to expand collections, the funding of a master plan to identify capital facilities, to serve new users and patrons, the cost of financing, projects identified in the City's General Plan, the Master Facilities Plan included in the Nexus Report, the City's Capital Improvement Plan, or City Council approved development projects. Fee Amount: On June 18, 2012, in conjunction with approval of the new Ordinance 3945, Resolution 2012- 23 was also adopted establishing new and revised development impact fees for all development within the city, As shown in Exhibit A-3 of Attachment 2, the fees vary according Item 2. - 6 HB -34- to land use and were also implemented on a graduated scale ranging from 30% to 90% of the full fee amount, Per City Council action, effective March 2016, the fees are as follows: Land Use Amount Detached Dwelling Units (per unit) $1,179.72 Attached Dwelling Units (per unit) $866.48 Mobile Home Dwelling Units (per unit) $708.85 Hotel/Motel Lodging Units (per unit) $0.041 per square foot Resort Lodging Units (per unit) $0,041 per square foot Commercial/Office Uses (per sq. ft.) No fee Industrial/Manufacturing Uses (per sq. ft.) No fee Interfund Loans No Library facilities 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 2016/17 Revenue The beginning fund balance as of September 30, 2016 was $353,080.00. During Fiscal Year 2016/17, $209,731.00 in Public Library Facilities Fees were collected. Therefore, the ending balance as of September 30, 2017 was $514,005. (This fee was not effective until September 2, 2012.) Fiscal Year 2016/17 Expenditures There were $ 53,806,00 expenditures during the 2016/17 Fiscal Year to the Library Facilities fund. All expenditures were for the Library Collection, to provide more materials for the public. As funds are collected, future reports will continue to reflect expenditures in accordance with HBMC 17.67.065 as described above. HB -35- Item 2. - 7 ATTACHMENT 2 2016-17 ANNUAL COMPLIANCE REPORT ROR THE PARKLAND ACQUISITION AND PARK FACILITIES DEVELOPMENT IMPACT FEES Item 2. - 8 EBB -36- PARKLAND ACQUISITION AND PARK FACILITIES ❑EVELOPMENT IMPACT FEE ANNUAL REPORT FISCAL YEAR 2016-17 I. BACKGROUND On June 18, 2012, the City Council approved the introduction of Ordinance No. 3946 which amended the Huntington Municipal Code by adding Chapter 17,76 relating to Parkland Acquisition and Park Facilities Development Impact Fees. The second reading of Ordinance 3946 was approved on July 2, 2012. 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 includes • 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 • 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, Fee Description: Use of Fees Per HBMC 17,76.090, the funds collected from the Parkland Acquisition and Park Facilities Development Impact Fee shall be used to fund the "costs of providing the acquisition, relocation and expansion of parkland and park facilities development attributable to new residential and nonresidential construction." Therefore, the expenses included in this report represent all costs associated with the planning, design, and construction stages of an eligible project, including staffing and professional design consultant costs. Specifically, the fees may be used as summarized below. 1 . The acquisition of additional property for the expansion of parkland and community facilities development; l H B -3 7- Item 2. - 9 2. The construction of new parks and park facilities and community use facilities; 3, The funding of a master plan to identify capital facilities to serve new parkland and park facilities and community use facilities development; 4. The cost of financing; 5. Projects identified in City of Huntington Beach General Plan, the Master Facilities Plan included in the Nexus Report, City of Huntington Beach Capital Improvement Plan (CIP), the adopted annual City of Huntington Beach budget, or City Council approved park acquisition and development projects. Since the City's Capital Improvement Plan (CIP) generally includes projects and upgrades to existing facilities of $50,000 or more, all eligible park improvements may not meet the minimum qualifications required to be included in the City's CIP. However, projects and improvements less than the $50,000 threshold are still eligible park expenses as long as they are included in the documents referenced in Item 5 above or the City's adopted annual budget. Examples of these types of expenditures include the City's annual park license fees with Southern California Edison. Since these expenses are included in the City's budget, they are eligible and included in this report. Fee Amount: On June 18, 2012, in conjunction with approval of the new Ordinance 3946, Resolution 2012-23 was also adopted establishing updated development impact fees, As shown in Exhibit A-3 of Resolution 2012-23, the fees varied according to land use and were also implemented on a graduated scale ranging from 30% to 90% of the full fee amount, However, on October 1, 2016, as allowed in Resolution 2012-23, section 10, the originally adopted fees were adjusted due to a Consumer Price Index (CPI) increase to the amounts shown below. Land Use Amount (Eff. 10/1116) Detached Dwelling Units(per unit) $16,554.73 Attached Dwelling Units(per unit) $12.732,84 Mobile Home Dwelling Units(per unit) $10,222.88 Hotel/Motel Lodging Units (per sq, ft.) $0.234 Resort Lodging Units(per unit) $0,234 Commercial/Office Uses(per sq. ft.) $0.897 Industrial/Manufacturing Uses(per sq. ft.) $0.730 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. 2 Item 2. - 10 HB -38- Ill. FINANCIAL SUMMARY Fiscal Year 2016-17 Revenue As shown in Attachment 3, the beginning Park Development Impact Fee fund balance as of September 30, 2016, was $2,901,194. During Fiscal Year 2016- 17, $3,150,305 in Park Development Impact fees was collected and $14,479 in interest was earned, for a combined total of$3,164,784. Fiscal Year 2016-2017 Expenditures As also shown in Attachment 3, $901,073 was expended for various park improvement projects, park license agreements, contracted/professional services, and staffing. The 2016-17 year end Park Development fund balance is $5,164,905 IV. PROJECTED CAPITAL IMPROVEMENT CONSTRUCTION DATES Per California Government Code 66006, the annual report should include the approximate date that construction will commence for public improvements funded through Park Development Impact Fees, A listing of these projects is summarized below. FY 2017-18 Murdy Park Sports Field Preparation of a conceptual design to create a multi-use youth sports field on the exiting turf area adjacent to Goldenwest Street, Edison Park Playground Feasibility study to determine methods to address subsidence issues in a portion of the playground and adjacent tennis courts. Beach Playground Construction of an All-inclusive Playground tot lot on the beach in the vicinity of 9th St and PCH. Project is a joint partnership between privately donated funds and park impact fees, Huntington Central Park Permanent Lot Construction of a permanent parking lot to accommodate programming at Shipley Nature Center. Peter Green Rubberized Surfacing Installation of new rubber surfacing to maintain ADA compliance. Irby Park Improvements Construction of trail and passive park improvements for the 2.91 acre undeveloped portion of the park. Central Park-Urban Forest Trail Construction of a portion of the Central Park Multi-purpose trail linking Huntington Central Park Dog Park through the Urban Forest to the northeast corner of Edwards and Ellis Streets, Project is jointly funded using park impact fees and a grant from the Habitat Conservation Fund, 3 HB -39- Item 2. - 11 FY 2018-19 Murdy Park Sports Field Construction of an additional sports field practice area, lighting, and conversion of the picnic shelter to bocce ball courts, Murdy & Edison Community Center Building Improvements Construction of modifications to improve accessibility, safety, and energy efficiency of the lobby areas and activity rooms, 4 Item 2. - 12 I-t a -40- ATTACHMENT 3 2016-17 ANNUAL COMPLIANCE REPORT FOR LAW ENFORCEMENT FACILITIES DEVELOPMENT IMPACT FEES HB -41- Item 2. - 13 LAW ENFORCEMENT FACILITIES DEVELOPMENT IMPACT FEE ANNUAL REPORT FISCAL YEAR 2016-2017 I. BACKGROUND: On June 18, 2012, the City Council approved the introduction of Ordinance No. 3942 which amended the Huntington Beach Municipal Code by adding Chapter 17.75 relating to Law Enforcement Facilities Impact Fees. The second reading of the Ordinance was approved on July 2, 2012. I. REPORTING REQUIRMENTS State Law imposes both annual and five-year reporting requirements for collection of Development Impact Fees. The specific elements to be included in the report are: • 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 the approximate date by which the construction of public improvements will commence • A description of each interfund transfer or loan made from the account orfund • 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 March 19, 2018, Fee Description: Per HBMC 17.75.090, the funds collected from the Law Enforcement Facilities Development Impact Fee shall be used to fund the costs of providing police services attributable to new residential and nonresidential construction and shall include: Item 2. - 14 HB -42- The costs of providing the acquisition, construction, furnishing of new buildings, purchase of new specialty equipment and vehicles, development of a master plan to identify capital facilities, the cost of financing, projects identified in the City's General Plan, the Master Facilities Plan included in the Nexus Report, the City's Capital Improvement Plan, or City Council approved development projects, Fee Amount: On June 18, 2012, in conjunction with approval of the new Ordinance 3942, Resolution 2012-23 was also adopted establishing new and revised development impact fees for all development within the city. The fees vary according to land use and were also implemented on a graduated scale ranging from 30% to 90% of the full fee amount. Per City Council action, effective October 1, 2016, the fees were as follows: Land Use Amount Detached Dwelling Units (per unit) $362,05 Attached Dwelling Units (per unit) $746.48 Mobile Home Dwelling Units (per unit) $337.64 Hotel/Motel Lodging Units (per unit) No fee Resort Lodging Units (per unit) No fee Commercial/Office Uses (per sq. ft.) $0.953 per square foot Industrial/Manufacturing Uses (per sq, ft.) $0.406 per square foot Interfund Loans No Law Enforcement Facilities fees were loaned during this reporting period. Refunds Due to Protests No refunds were made due to protests during this reporting period, Ill. FINANCIAL SUMMARY Fiscal Year 2016-2017 Revenue The beginning fund balance as of October 1, 2017 was $486,355.80. During Fiscal Year 2016-2017, $253,770.68 in Law Enforcement Facilities Fees were collected and $2,333 of interest/bank adjustments were posted, The ending fund balance as of September 30, 2017 was $742,459.48, xB -43_ Item 2. - 15 Fiscal Year 2016-2017 Expenditures There were no expenditures during the 2016-2017 Fiscal Year to the Law Enforcement Facilities fund, Item 2. - 16 HB -44- ATTACHMENT 4 2016-17 ANNUAL COMPLIANCE REPORT FOR FIRE SUPPRESSION FACILITIES DEVELOPMENT IMPACT FEES HB -45- Ltem 2. - 17 FIRE SUPPRESSION FACILITIES DEVELOPMENT IMPACT FEE ANNUAL REPORT FISCAL YEAR 2016-2017 I. BACKGROUND: On June 18, 2012, the City Council approved the introduction of Ordinance No, 3942 which amended the Huntington Beach Municipal Code by adding Chapter 17.74 relating to Fire Suppression Facilities impact Fees. The second reading of the Ordinance was approved on July 2, 2012. II. REPORTING REQUiRMENTS State Law imposes both annual and five-year reporting requirements for collection of Development impact Fees. The specific elements to be included in the report are • 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 the approximate date by which the construction of public improvements will commence • A description of each interfund transfer or loan made from the account or fund • 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 March 19, 2018. Fee Description: Per HBMC 17.74,090, the funds collected from the Fire Suppression Facilities Development Impact Fee shall be used to fund the costs of providing additional Fire suppression/medic facilities, vehicles and specialty equipment attributable to new residential and nonresidential construction and shall include: The acquisition of additional property for fire department facilities, the construction of new facilities for fire department services, the furnishing of new buildings or facilities for fire department services, the purchase of new specialty equipment and vehicles for fire department services, the funding of a master plan to identify capital facilities to serve new Fire Department development, the cost of financing projects identified in the City's General Plan, the Master Facilities Plan included in the Nexus Deport, the City's Capital Improvement Plan, or City Council approved development projects. Item 2. - 18 HB -46- Fee .Amount: On June 18, 2012, in conjunction with approval of the new Ordinance 3943, Resolution 2012- 23 was also adopted establishing new and revised development impact fees for all development within the city. The fees vary according to land use and were also implemented on a graduated scale ranging from 30%to 90% of the full fee amount. Per City Council action, effective November 4, 2017, the fees are as follows: Land Use Amount Detached Dwelling Units (per unit) $844.11 Attached Dwelling Units (per unit) $349,85 Mobile Home Dwelling Units (per unit) $1,449.23 Hotel/Motel Lodging Units (per unit) No fee Resort Lodging Units (per unit) No fee Commercial/Office Uses (per sq. ft.) $0,301 per square foot Industrial/Manufacturing Uses (per sq. ft,) $0.0275 per square foot Interfund Loans No Fire Suppression Facilities 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 2016-2017 Revenue The beginning fund balance as of October 1, 2016 was $290,436.99. During Fiscal year 2016-2017 $104,346.45 in Fire Suppression Facilities Fees were collected and $1,314 of interest/bank adjustments were posted. The ending fund balance as of September 30, 2017 was $396,097.44. Fiscal Year 2016-2017 Expenditures There were no expenditures during the 2016-17 Fiscal Year to the Fire Suppression Facilities fund. As funds are collected, future reports will reflect expenditures in accordance with HBMC 17.74.090 as described above. HB -47- Item 2. - 19 ATTACHMENT 5 PLANNED LOCAL DRAINAGE FACILITY FUND ANNUAL COMPLIANCE REPORT FOR FISCAL YEAR 2016-17 Item 2. - 20 HB -48- e CITY OF HUNTINGTON BEACH PUBLIC WORKS COMMISSION REQUEST FOR ACTION Item No. PW 18-05 SUBMITTED TO: Chairperson and Members of the Commission SUBMITTED BY: Travis K. Hopkins, PE, Director of Public Works DATE: February 21, 2018 SUBJECT: Planned Local Drainage Facilities Fund Annual Compliance Report Fiscal Year 2016/17 - Revised Statement of Issue: In accordance with Section 14.48 of the Huntington Beach Municipal Code (HBMC), the Public Works Department is required to prepare an annual report of the status of the Planned Local Drainage Facility Fund (Drainage Fund) for the City Council. The process provides an opportunity for the Public Works Commission to review planned projects, revenues and expenditures under the program. Fundinq Source: No funding is required for this action. Impact on Future Maintenance Costs: Not applicable. Recommended Action: Motion to recommend to the City Council the approval of the Planned Local Drainage Facility Fund Compliance Report for Fiscal Year 2016/17, Alternative Action(s): Recommend revisions to the report. Analysis: The Planned Local Drainage Facilities Fund (Drainage Fund) is a development fee that is restricted to use for drainage system enhancements. Section 14.48.050 (d) requires the City Council to review the status of compliance with this Chapter, including the revenues collected and the funds expended. The following information conforms to the requirements of the HBMC regarding revenues and expenditures of the Drainage Fund. Although the reporting requirement became effective with the adoption of the revised ordinance in September 2006, the Drainage Fund has existed since 1975. The following information covers Fiscal Year (FY) 2016/17. HB -49- Item 2. - 21 Fiscal Status The Drainage Fund advanced $250,000 to the Redevelopment Agency for improvements in 1987. With interest accrual of $603,877, the debt amount is currently $867,906. As a result, the Fund maintained a negative balance over a period of ten years until FY 12/13, when the fund ended with a positive balance. In FY 2016/17, the Drainage Fund ended the year with a balance of $1 ,418,625. On June, 29, 2011 , the State of California enacted AB 1 X26, which dissolves redevelopment agencies and designates Successor Agencies to "wind-down" activities of the former redevelopment agencies under supervision of newly created Oversight Boards. On January, 31, 2012, the City's Redevelopment Agency presented an initial draft Recognized Obligation Payment Schedule (RODS) to the Successor Agency. In this case, the City has elected to become the Successor Agency. The debt noted above is included in the list of obligations; however, no payments are scheduled to the Drainage Fund within the presented time frame. Fiscal Year Change On December 18, 2017, the City Council approved an ordinance and resolutions to change the City's fiscal year from the current October 1 to September 30 time frame to July 1 to June 30. Therefore, FY 2017/18 will be a shortened (9 months) year. For the purposes of this report, the figures below represent revenues and expenditures as originally budgeted. Revenues Revenue for FY 2016117 from development was $58,004 and interest to the fund was $5,648 for total revenues of $63,652. Budgeted revenue for FY 17/18 is $100,000, Expenditures Expenditures in FY 2016/17s totaled $63,795 in consultant charges for updates to the Drainage Master Plan, Budgeted expenditures for FY 17/18 consist of a carry over encumbrance of $236,157 for the Drainage Master Plan update. Conformance with Program Goals and Objectives The Drainage Fund is intended to implement the goals and objectives of the current Drainage Master Plan. Funds collected and deposited to the fund may be expended solely for the construction or reimbursement for construction of drainage facilities. The Fund is in compliance with these requirements. Item 2. - 22 xB -50- Beginning Balance 10/16 ; $1,418,625; Revenue Developer fees 58,004 Interest earned 5,648 Total Revenue $63,652 Expenditures Drainage Master Plan 63,795 Total Expenditures ($63,795) Beginning Balance 10117' $1,418,482 Projected revenues 100,000 Budgeted expenditures 236,157 Estimated Balance 10118 $1,282,325 Rate Schedule The Drainage Fee for FY 16117 was $14,1 16 per acre. Environmental Status: Not applicable Attachments: None 1-113 -5 1- Item 2. - 23 ATTACHMENT 6 SANITARY SEWER FACILITIES FUND ANNUAL COMPLIANCE FOR FISCAL YEAR 2016-17 Item 2. - 24 Kg -52- HeCITY OF HUNTINGTON BEACH -r- PUBLIC WORKS COMMISSION REQUEST FOR ACTION Item No. PW 18-04 SUBMITTED TO: Chairperson and Members of the Commission SUBMITTED BY: Travis K. Hopkins, PE, Director of Public Works DATE: February 21 , 2018 SUBJECT: Sanitary Sewer Facilities Fund Annual Compliance Report Fiscal Year 2016/17 .. Revised Statement of Issue: In accordance with Section 14.36 of fhe Huntington Beach Municipal Code (HBMC), the Public Works Department is required to prepare an annual report of the status of the Sanitary Sewer Facilities Fund (Sanifary Sewer Fund) for the City Council. The process provides an opportunity for the Public Works Commission to review planned projects, revenues and expenditures under the program. Fundinq Source: No funding is required for this action. Impact on Future Maintenance Costs: Not applicable. Recommended Action: Motion to recommend to the City Council the approval of the Annual Sanitary Sewer Facilities Fund Compliance Report for Fiscal Year 2016/17. Alternative Action(s): Recommend revisions to the report. Analysis: The Sanitary Sewer Fund is a development fee that is restricted to use for sewer capacity enhancements. The fee is unrelated to the monthly Sewer Service Charge used for operations and maintenance of the existing sewer system. Section 14.36.070 (d) requires the City Council to review the stafus of compliance with this Chapter, including the revenues collected and the funds expended. The following information conforms to the requirements of the HBMC regarding revenues and expenditures of the Sanitary Sewer Fund, Although this requirement became effective with the adoption of the revised ordinance in 14B -s3- Item 2. - 25 July 2003, the Sewer Facilities Fund has existed since 1988. The following information covers Fiscal Year (FY) 2016/17. Fiscal Year Change On December 18, 2017, the City Council approved an ordinance and resolutions to change the City's fiscal year from the current October 1 to September 30 time frame to July 1 to June 30. Therefore, FY 2017/18 will be a shortened (9 months) year. For the purposes of this report, the figures below represent revenues and expenditures as originally budgeted. Fiscal Status Revenues and expenditures are summarized below for the past fiscal year. The fund balance as of September 30, 2017 was $8,142,167, Not included in this figure are monies owed the Sanitary Sewer Facilities Fund by the Huntington Beach Redevelopment Agency. The original advance was $131 ,000. With interest accrual, the debt amount for the fiscal year end was $458,329. On June, 29, 2011, the State of California enacted AB1X26, which dissolves redevelopment agencies and designates Successor Agencies to "wind--down" activities of the former redevelopment agencies under supervision of newly created Oversight Boards. On January, 31, 2012, the City's Redevelopment Agency presented an initial draft Recognized Obligation Payment Schedule (RODS) to the Successor Agency. In this case, the City has elected to become the Successor Agency. The debt noted above is included in the list of obligations; however, no payments are scheduled to the Sanitary Sewer Facilities Fund within the presented time frame. Revenues Total revenue for FY 2016/17 was $82,350. Residential and commercial developer fees contributed $3,312 and $35,270 respectively. The City also received its annual payment of $12,310 from the Sunset Beach Sanitary District representing the agency's share for the construction of Lift Station D. The fund was credited $31,458 in interest. Budgeted revenue for FY 17/18 is $100,000- Expenditures Fiscal Year 2016117 Expenditures for the fund in FY 15/16 consisted of $159,127 in staff and consultanf charges related to the Edgewater lift Station project. Ltem 2. - 26 HB -54- Fiscal Year 2017/18 Budgeted expenditures for the current fiscal year include $2,500,000 for the construction of the Slater Lift Station and $2,243,752 in encumbrance carry- forwards related to construction of the Edgewater Lift Station. Conformance with Program Goals and Objectives The Sanitary Sewer Facilities Fund is intended to implement the goals and objectives of the current Sewer Master Plan. Funds collected and deposited to the fund may be expended solely for the construction or reimbursement for construction of sanitary sewer facilities. The Fund is in compliance with these requirements. Summary of Revenue and Expenditures Sanitary Sewer Facilities Fund Be inning Balance '[0/16 $8,166,017 Revenue Developer fees (residential) 3,312 Developer fees (commercial) 35,270 Sunset Beach Sanitary Dist, 12,310 Interest earned 31,458 Total Revenue $82,350 Expenditures Design Services 159,127 Total Expenditures $ (159,127) Be innin Balance 10117_ " $8,089,240 Budgeted revenues 100,000 Budgeted expenditures 4,743,752 Estimated Balance 10/18 $3,445,488 Rate Structure Fiscal Year 2016/17 2. 1 1. ,_� k CQNNECTIQN_1=EEC..�.'',=.EfFectiv�",lanuar'�"5,��017, Single Family Dwelling Unit $ 2,256 Multiple Family Dwelling Unit $ 1,845 ,Nod Res�tlet�tial abased ot�yv�a�er roetei�size�elatio�shCp tti Egilivaler}t i1Wellin�Umf;�DC7���. 3/4" 1 $ 2,564 1" 2 $ 5,129 HEM -55- Item 2. - 27 1 Y2;3 3 $ 7,693 Y 11 $ 28,212 4" Compound 17 $ 43,599 4" Domestic &Turbine 33 $ 84,634 6" Compound 33 $ 84,634 6" Domestic &Turbine 67 $ 171,830 8" Domestic 117 $ 300,061 10" Domestic 183 $ 466,642 Environmental Status: Not applicable. Attachments: None Item 2. - 28 HB -56- ATTACHMENT 7 FAIR SHARE TRAFFIC IMPACT MITIGATION FEE PROGRAM ANNUAL COMPLIANCE REPORT FOR FISCAL YEAR 2016-17 HB -57- Ltem 2. - 29 • J ' CITY OF HUNTINGTON BEACH PUBLIC WORKS COMMISSION REQUEST FOR ACTION Item No. PW 18-06 SUBMITTED TO: Chairman and Members of the Commission SUBMITTED BY: Travis K. Hopkins, PE, Director of Public Works DATE: February 21 , 2018 SUBJECT: Fair Share Traffic Impact Fee Program Annual Report for Fiscal Year 2016/17 - Revised Statement of Issue: In accordance with Section 17.65.130 of the Huntington Beach Municipal Code (HBMC), the Public Works Department is required to prepare an annual report of the status of the Fair Share Traffic Impact Fee Program for the City Council. The process also provides an opportunity for the Public Works Commission to review revenues and expenditures under the program. Funding Source: No funding is required for the recommended action. All Traffic Impact Fee funds are maintained in a separate account from other City operation funds. Recommended Action: Motion to recommend approval of the 2016/17 Traffic Impact Fee Annual Report to the City Council. Alternative Action(s): Recommend revisions to the report elements or request additional information. Analysis: The Fair Share Traffic Impact Fee (TIF) program is intended to implement the goals and objectives of the General Plan by providing revenue to ensure that the adopted Level of Service standards for arterial roadways and signalized intersections are maintained when new development is constructed within the City limits and that these developments pay their fair share towards short and long term transportation improvements. The following sections comprise the annual report. Item 2. - 30 FIB -58- Fiscal Status This report presents the fund information based on the City's preliminary audit for Fiscal Year 2016/17. The balance for the fund at the beginning of the fiscal year was $3,591 ,435. During FY 2016/17, Traffic impact Fee fund recognized $814,496 in revenues including, $436,630 in Impact Fees Paid, $15,788 in interest and $362,078 in land sales related to a previous right-of-way project. Expenditures from the fund included $26,623 in miscellaneous design service, $55,588 for Brookhurst/Adams Intersection Improvements, $16,969 for Atlanta Avenue Widening and $511,620 for Edinger Widening for a total of $610,801 . The fund balance at the end of the fiscal year was $3,821 ,486. Fiscal Year Change On December 18, 2017, the City Council approved an ordinance and resolutions to change the City's fiscal year from the current October 1 to September 30 time frame to ,July 1 to June 30, Therefore, FY 2017/18 will be a shortened (9 months) year. For the purposes of this report, the figures below represent revenues and expenditures as originally budgeted, except as noted. Planned Capital Projects, Studies and Expenditures The City Council approved Capital Improvement Program (CIP) carry over funding for Fiscal Year 2017/18 in the amount of $91 ,422 for the Atlanta Avenue Widening project. Encumbrance carry over funds from FY 16/17 totaled $66,619, The revised budgeted expenditures against the fund total $158,041 . Projected estimate of Fund Balance For budget purposes, the City has estimated that approximately $100,00 in new traffic impact fee payments would be realized during FY 17/18, however, to date the City has received $245,557 resulting in a projected balance (unprogrammed funds) of $3,908,892 at year's end. Actual payments to the fund could be significantly more or less than projected. However, current programming does not rely on a specific amount being collected in FY 17/18. A summary of the fund activity is presented in tabular form below. Future Project and Fund Balance Uses of Traffic Impact Fee funds are restricted to roadway capacity projects or other projects that affect the performance of the street system to offset the impacts of traffic generated by new development. Often, these types of projects are quite expensive and can involve right-of-way acquisition and property impacts. Staff has been developing projects to address some key roadway capacity areas in the City that are also larger scale projects. With expenditures that can be millions of dollars, staff has been recommended that the Traffic Impact Fee fund accumulate a significant balance in order to make pursuit of those projects financially possible in the future. However, it is important HB -59- Item 2. - 31 to develop a program for fund expenditure to ensure the timely use of funds that are collected under this program. Staff often uses Traffic Impact Fee funds as a "matching fund" when pursuing capacity enhancing grant projects. Two such examples are improvements at the intersections of Beach/Warner and Brookhursf/Adams. Both projects are key locations where future use of Traffic Impact Fee funds are expected. Between the 2 projects, more than $8 million in expenditures are anticipated. The City hopes to leverage Traffic Impact Fees to obtain grant funds for a portion of these costs. Other potential uses for funds include improvements to traffic operations and signal coordination throughout the traffic signal system and potential long-term improvements at the intersections of Beach Boulevard/Heil and Beach Boulevard/Talbert. The City is also waiting for the final determination on the property purchase value for the Atlanta Widening Project. Should the value be determined by the courts to be higher than expected, it is likely that Traffic Impact Fee funds would be recommended to be used to meet that funding need. The City is also applying for funding for future improvements along the Edinger and Warner corridors to improve signal operations and traffic flows. These projects are expected to occur in FY2020/21 but could result in the use of Traffic Impact fees for our required matching funds, estimated to be $200,000 to $350,000 out of the more than $1 .7 million in improvements. Summary of Revenue and Expenditures Traffic Impact Fund Beginning Balance 10116 $3,591,435 Revenue Traffic Impact Fees 436,630 Land Sale 362,078 Interest earned and misc.fees 15,788 Total Revenue $ 814,496 Expenditures Design Services (26,623) Brookhurst/Adams IIP (55,588) Atlanta Avenue Widening (16,969) Edinger Avenue Widening 511,620 Total Expenditures $ (610,800) Beg,inn.irig Balance10117: $3,795;131.' Budgeted revenues 245,447* Budgeted expenditures 158,041 Estimated Balance 17118 '$3,884,537 *actual revenue to date Conformance with Program Goals and Objectives The Traffic Impact Fee Program is intended to implement the goals, objectives and policies of the City of Huntington Beach General Plan, as stated in the Item 2. - 32 HB -60- Municipal Code Chapter 17.65. Completion of the planned projects implements improvements identified in the Circulation Element of the General Plan and is in conformance with the goals and objectives of the Fair Share Traffic Impact Fee program. HB -61- Item 2. - 33 ATTACHMENT 8 RESOLUTION 2012-23 ADOPTING DEVELOPMENT IMPACT FEE CALCULATION AND NEXUS STUDY REPORT Item 2. - 34 HB _67_ ATTACHMENT 2 RESOLUTION NO. 2012-23 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTXNGTON BEACH ADOPTING THE DEVELOPMENT IMPACT FEE CALCULATIONAND NEXUS REPORT FOR THE CITY OFHUNTINGTONBEACH,AND ESTABLISHING NEW AND REVISED DEVELOPMENT IMPACT FEES FOR ALL DEVELOPMENT WITHIN THE CITY WHEREAS,several policies within the City's General Plan require that new development mitigate its share 'of.the impacts to the natural and built environments and be fiscally neutral so as to not result in.'a net economic loss for the City;and' Such-General Plan policies include the maintenance of existing quality,of life, maintenance of.existing service levels and funding of new facilities, the requirement of new development to mitigate a fair share of its impacts,and calling for the use of impact fees to fund needed improvements to serve new development, among other policies;and In accordance with these General flan policies, the City Council has directed staff in the past to create development impact fees in accordance with State law. Said impact fees were codified in Chapter 17.65 and Chapter*17.66 of the Huntington Beach Municipal Code as well as Huntington Beach Zoning and Subdivision Ordinance Chapter 230.20. Pursuant to each ordinance set forth above,the amount of the development impact fee is to be set and/or updated by resolution of the City Council;and Subsequently,and periodically,staff has conducted comprehensive reviews of the City's development impact fees to determine whether those fees are adequate to defray the cost of public facilities related to new development;.those fees are set forth in Resolutions 6164,2006- 23,2000-97,2004-88,99-60 and 96-71;2002-129,2004-88 and The City contracted with Revenue & Cost Specialists, LLC to provide a updated comprehensive evaluation of the City's existing development impact fees;and Revenue & Cost Specialists, LLC prepared a report,.entitled Development Impact Fee Calculation• and Nexus Report for the City of Huntington Beach, dated October, 2011 as amended April 27, 2012 (the "Nexus Report"), that provides an evaluation of existing development impact fees, recommends an increase and change in methodology in certain development impact fees,the creation of new impact fees and establishes the nexus between the imposition of such impact_fees and the estimated reasonable cost of providing the service for which the fees are charged'.and The Nexus Report has been available for public review and comment;and The Nexus Report substantiates the need for a modification to-existing fees to changer certain methodology as well as creation of new impact fees; and. . l 12-3209.006/79289 ' HB _63_ Item 2. - 35 Resolution No.2012 23 The City has collected development impact fees.to mitigate the impacts of new development, including fees for transportation, parr land acquisition and development, library and other public facilities since the adoption of the respective ordinances and resolutions;and The City Council desires to repeal certain resolutions, create and update other development impact fee resolutions in accordance with the calculations:and recomthendations contained in the Nexus Report;and In compliance with the Mitigation Fee Act, California Government Code section 66000 et sect., the City Council held a noticed public hearing on the proposed increase in development impact fees at its regular meeting on June 18 , 2012, to solicit public input on the proposed increases to development impact fees, NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve as follows; 1. Findings pursuant to Government Code section 66001. The City Council finds and determines that the Nexus Report complies with California Government Code section 66001, and as to each of the proposed fees to be imposed on new development; (a) Identifies the purpose of the fee; (b) Identifies the use to which the fee will be put; (c) Shows a reasonable relationship between the use of the fee and the type of development project on which the fee is imposed; (d) Demonstrates a reasonable relationship between the need for the public facilities and the type of development projects on which the fee is imposed;and (e) Demonstrates a reasonable relationship between the amount of the fee and the cost of the public facilities or portion of the public facilities attributable to the development on which the fee is imposed. 2, Fees—for Uses Consistent with the Nexus Report, The City Council hereby determines that the fees imposed, pursuant to this resolution shall be used solely to finance the public facilities and/or equipment and park land acquisition described or identified in. the respective ordinances and Nexus Report, 3. Approval of Items in the Nexus Report. The City Council has considered•the specific public facilities, equipment and park land acquisition cost estimates identified in the Nexus Report and each ordinance thereto and hereby approves such public facilities, cquipment and park land acquisition cost and cost estimates and fiuther finds that the cost estimates serve as a reasonable basis for calculating and imposing.the development impact.fees as set forth in the Nexus Report. 2 12-3209,006/79289 Item 2. - 36 Kg _64_ Resolution No.2012-23 4. Consistena with General Plan. The City Council finds that-the public facilities equipment and park land acquisition and fee methodology identified in the respective ordinances and Nexus Report are consistent with the City's General Plaza and, in particular, those policies that require new development to mitigate its share of the impacts to City infrastructure and to be fiscally neutral. 5. Differentiation among Public Facilities: The City Council finds that the public facilities identified in the ,Nexus Report and fimded through the collection of development impact fees recommended in. the Nexus Report are separate and distinct from those public facilities funded through other fees presently imposed and collected by the City. To the extent that other fees imposed and collected by the City, including Specific Plan fees are used to fund the construction of the same public facilities identified in the respective ordinances and Nexus Report, then such other fees shall be a credit against the applicable development impact fees. Notwithstanding the above provision, this resolution shall not be deemed to affect the imposition or collection of the water and sewer connection fees authorized by the Huntington Beach Municipal Code, 5. CE_QA Finding, The adoption of the Nexus Report and the increase in development impact fees are not subject to the California Environmental Quality Act in that pursuant to CEQA Guidelines, section 15378(b) (4), the creation of government- funding mechanisms which do not involve any commitment to any specific project which may cause a significant effect on the environment,is not defined as a"project"-under CEQA, 7. Adoption of Report. The Nexus Report as amended April 27, 2012, including Appendices,is hereby adopted. 8. Fee Imposed. The new Development Impact Fees set by this resolution shall not apply to projects that have received discretionary project entitlement approval on or before June 5,2012 and the following milestones are met; 1. Project applicant has submitted an approved application for building pernnts within 180 days after the fee going-into effect or no later than February 18,2013. 2. From the time of initial building permit application,the project makes continued . progress toward satisfying plan check comments. 3. Building Permits are issued within 360 days after the fees go into effect. An exception to the above milestones is the involvement of an outside third party regulatory agency. In such cases the 180-days to make building permit application will begin when the developer receives clearance from that agency. The City Manager shall have the authority, in his/her sole discretion, to extend milestone dates for qualifying "gtandfathered" projects. All bther projects are subject to the fees then in effort. All existing Development Impact Fees remain in effect until final action. is taken on this resolution and respective ordinances, In the event any portion of this resolution is held invalid, the previously approved. development impact fee shall automatically apply. 9° Thing of Fee. The development impact fees imposed by this resolution shall be paid pursuant to the ordinances or resolution creating each separate fee. Until final action is 3 123209,00&79289 HB -65- Item 2. - 37 Resolution No.20 12-2 3 taken by City Council adopting the ordinances or resolution referenced herein, resolutions 6164, 2006-23,2000-97;99-60,2004-88 and 96-71 shall remain in effect. 10. Amount of Fee. The City Council hereby approves and adopts the Development Impact Fees as set forth in Exhibit"A,"attached hereto and incorporated herein as well as Nexus Report Schedules 3.2,4.3, 5.2, 6.2, 7A, 8.1, and 8.4. Exhibit A.and the Nexus Report sets forth the methodology and aggregate amount imposed as a development impact fee for both residential and nonresidential land uses and also sets forth the breakdown of each development impact fee by type of facility: The amount of the development impact fees excluding traffic impact fees shall be automatically modified annually-pursuant to the the percentage of increase or decrease in the Los Angeles-Anaheim-Riverside All Urban Consumer Price Index (CPI) or any relevant successor for the Orange County area,from'March to March of the preceding twelve(12)months. Traffic impact fees shall be increased using the Engineering News Record's construction cost index as reported for the twelve month period ending in March of each year. The escalator indices provided herein.shall not take effect until March of 2016. 11, Use of fee, The development impact fees shall be solely used for the purposes described in the respective ordinances creating the fees and the Nexus Report. Fees collected pursuant to exIsting ordinances and resolutions shall be maintained and used exclusively for those purposes and accounts for these fees shall remain in effect and shall be maintained by the City Manager or his/her designee. Fees collected under any of the categories listed in the Nexus Report may be used to finance the construction or implementation of any public facility listed in those categories to the extent that use of the fees may not exceed the percentage allocated to new development of all of the public facilities listed.in the category, or sub-category. 12. Fee Deterhrination by Type of Use. A. .Residential Development, Development impact fees for residential development shall be based upon the type of unit constructed. The development impact fee categories as shown in Exhibit A generally,correspond to the Clty's land use designations in the land use element of the Ciiy's General Plan. B. Nonresidential band Uses. Development impact fees for nonresidential land uses shall be based upon the square footage of the building or other measurement detailed In the respective development impact,fee ordinances. The development impact fee categories as .shown in Exhibit A generally correspond to 'the City's land use designations 'in the land use element of the City's General plan. C, Uses Not Specified. I12 the event that there are land uses not specified in Exhibit A, the development impact fee for such use shall be determined by the City Manager or . 4 12-3209.006179289 Item 2. - 38 HB -66- Resolution No.2012-23 his/her designee who shall determine such fee based on an analysis of the impacts of the proposed use on public facilities,equipment and/or park land. 13. Prior Resolutions Superseded. As provided herein the development impact fees approved and adopted by this resolution shall supersede and repeal any previously adopted development impact fee resolutions concerning the same,including 6164,96.71,99-60,2000-97, 2004-88 and 2006-23,2002-129,2004-88. 14. Severability. If any action, subsection; sentence, clause or phrase of this resolution, the Nexus Report, or other attachments thereto, shall be held invalid or unconstitutional by a court,o£competent jurisdiction, such invalidity'shall not affect the validity of the remaining portions of this resolution the Nexus Report, or other attachments thereto or fees levied by this resolution that. can be'given effect without the invalid provisions or applicationn of fees. In the event any section of this resolution is held invalid the previously adopted affected fees shall be automatically reinstate as if never repealed or modified herein. 15. Effective Date. Consistent with California Government Code section 66017(a), the fees as identified in attached Exhibit "A" adopted by this resolution shall take effect sixty. (60)days following final action taken on the respective ordinances or amendments thereto by the City Council. 16. Appeals. Appeals of any fees, including methodology, use, land valuation etc. created pursuant to this resolution shall be conducted as set forth in Huntington Beach Municipal Code Chapter 17.73. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 18 day of June 0 2 Mayor REV ND APPROVED: INITI AN OVED: Cit#Ua er Deputy City Manager APPROVED AS TO FORM: 5 12-3209.0 0 617 92 8 9 HB -67- Item 2. - 39 Exhibit A. Item 2. - 40 HB -68- Exhibit A-3 Aternative Fee Schedule No.3 Development Impact Fees effective 91212012) a30% Circulation Park Land/ System Open Space Law Fire (Streets, &Facilities Enforcement Suppression Signals, Public Library (No Tract Land Use Facilities Facilities Bridges) Facilities Map) Detached Dwelling Units(per Unit) $119 $277 $1,800 $1,091 $6,802 Attached Dwelling Units(per Unit) $245 $115 $1,238 $519 $4,632 Mobile Home Dwelling Units(per Unit) $111 $475 $940 $479 $3,351 Hotel/Motel Lodging Units(per Unit) No Fee No Fee $172/trlp $0,04/SF $0,23/SF Resort Lodging Units(per Unit) No Fee No Fee $172/trip $0,04/SF $0.23/SF Commercial/Office Uses(per sq.ft,) $0.312 $0,099 $4,175 No Fee $0.447 industrial/Manufacturing Uses(per sq.ft,) $0.133 $0.009 $1.279 No Fee $0.393 Development impact Fees (Effective 9/2/2013) 60% Circulation Park Land/ System Open Space Law Fire (Streets, &Facilities Enforcement Suppression Signals, e Public Library (No Tract Land Use . Facilities - Facilities Bridges) Facilities Map) Detached Dwelling Units (per Unit) $238 $553 $2,092 $1,126 $11,540 Attached Dwelling Units(per Unit) $489 $229 $1,417 $686 $8,576 Mobile Home Dwelling Units(per Unit) '$221 $950 $1,094 $588 $6,701 Hotel/Motel Lodging Units(per Unit) No Fee No Fee $172/trip $0.04/SF $0,23/SF Resort Lodging Units(per Unit) No Fee No Fee $172/trip $0,04/SF $0,23/5F Commercial/Office Uses(per sq.ft,) $0,625 $0.197 $4,175 No Fee $0.664 Industrial/Manufacturing Uses(per sq,ft,) $0,266 $0,018 $1A98 No Fee $0.555 Development Impact Fees (6ffective'9/2/2014) 90% Circulation Park Land/ System open.Space Law Fire (Streets, &Facilities Enforcement Suppression Signals, Public Library (No Tract ,Land Use Facilities Facilities Bridges) Facilities Map) i Detached Dwelling Units(per Unit) T $356 $830 $7,385 $1,160 $16,278 Attached Dwelling Units(per Unit) $734 $344 $1,597 $852 $12,520 Mobile Home Dwelling Units(per Unit) $332 $1,425 $1,248 $697 $10,052 ! Hotel/Motel Lodging Units(per Unit) No Fee No Fee $172/trip $0,04/SF $0.23/SF Resort Lodging Units(per Unit)` No Fee No Fee $172/trip $0.04/SF $0.23/SF Commercial/Office Uses (per sq.ft,) $0,937 $0.296 $4.175" No Fee $0.882 Industrial/Manufacturing Uses(persq,ft.) $0.399 $0,027 $1,716 No Fee $0.718 WePrinted;5/24/20I2,June 4Reso1Vtlon3Q 60_P0 Page 1 HB -69- Item 2. - 41 ATTACHMENT #2 PUBLIC LIBRARY FACILITIES DEVELOPMENT IMPACT FEE ANNUAL REPORT FISCAL YEAR 2016/17 I. BACKGROUND: On June 18, 2012, the City Council approved the introduction of Ordinance No. 3945 which amended the Huntington Beach Municipal Code by adding Chapter 17.67 relating to Law Enforcement Facilities Impact Fees. The second reading of the Ordinance was approved on July 2, 2012. I. REPORTING REQUIRMENTS State Law imposes both annual and five-year reporting requirements for collection of Development Impact Fees. The specific elements to be included in the report are: • 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 the approximate date by which the construction of public improvements will commence • A description of each interfund transfer or loan made from the account or fund • 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 March 19, 2018. Fee Description: Per HBMC 17.67.065, the funds collected from the Public Library Facilities Development Impact Fee shall be used to fund the costs of expansion of the amount of library space and the number of collection items attributable to the new residential construction and shall include: The acquisition of additional property for Library construction, the construction of new facilities for Library services, the furnishing of new buildings or facilities for Library services, the purchase of Library collections to expand collections, the funding of a master plan to identify capital facilities, to serve new users and patrons, the cost of financing, projects identified in the City's General Plan, the Master Facilities Plan included in the Nexus Report, the City's Capital Improvement Plan, or City Council approved development projects. Fee Amount: On June 18, 2012, in conjunction with approval of the new Ordinance 3945, Resolution 2012- 23 was also adopted establishing new and revised development impact fees for all development within the city. As shown in Exhibit A-3 of Attachment 2, the fees vary according Item 2. - 42 HB -70- to land use and were also implemented on a graduated scale ranging from 30% to 90% of the full fee amount. Per City Council action, effective March 2016, the fees are as follows: Land Use Amount Detached Dwelling Units (per unit) $1,179.72 Attached Dwelling Units (per unit) $866A8 Mobile Home Dwelling Units (per unit) $708.85 Hotel/Motel Lodging Units (per unit) $0.041 per square foot Resort Lodging Units (per unit) $0.041 per square foot Commercial/Office Uses (per sq. ft.) No fee Industrial/Manufacturing Uses (per sq. ft.) No fee Interfund Loans No Library facilities 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 2016/17 Revenue The beginning fund balance as of September 30, 2016 was $353,080.00. During Fiscal Year 2016/17, $209,731.00 in Public Library Facilities Fees were collected. Therefore, the ending balance as of September 30, 2017 was $514,005. (This fee was not effective until September 2, 2012.) Fiscal Year 2016/17 Expenditures There were $ 53,806.00 expenditures during the 2016/17 Fiscal Year to the Library Facilities fund. All expenditures were for the Library Collection, to provide more materials for the public. As funds are collected, future reports will continue to reflect expenditures in accordance with HBMC 17.67.065 as described above. IJB -71- Item 2. - 43 ATTAC H M E N T #3 ' PARKLAND ACQUISITION AND PARK FACILITIES DEVELOPMENT IMPACT FEE ANNUAL REPORT FISCAL YEAR 2016-17 I. BACKGROUND On June 18, 2012, the City Council approved the introduction of Ordinance No. 3946 which amended the Huntington Municipal Code by adding Chapter 17.76 relating to Parkland Acquisition and Park Facilities Development Impact Fees. The second reading of Ordinance 3946 was approved on July 2, 2012 (Attachment 1 ). 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 • 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. Fee Description: Use of Fees Per HBMC 17.76.090, the funds collected from the Parkland Acquisition and Park Facilities Development Impact Fee shall be used to fund the "costs of providing the acquisition, relocation and expansion of parkland and park facilities development attributable to new residential and nonresidential construction." Therefore, the expenses included in this report represent all costs associated with the planning, design, and construction stages of an eligible project, including staffing and professional design consultant costs. Specifically, the fees may be used as summarized below. 1. The acquisition of additional property for the expansion of parkland and community facilities development; 1 Item 2. - 44 HB -72- 2. The construction of new parks and park facilities and community use facilities; 3. The funding of a master plan to identify capital facilities to serve new parkland and park facilities and community use facilities development; 4. The cost of financing; 5. Projects identified in City of Huntington Beach General Plan, the Master Facilities Plan included in the Nexus Report, City of Huntington Beach Capital Improvement Plan (CIP), the adopted annual City of Huntington Beach budget, or City Council approved park acquisition and development projects. Since the City's Capital Improvement Plan (CIP) generally includes projects and upgrades to existing facilities of $50,000 or more, all eligible park improvements may not meet the minimum qualifications required to be included in the City's CIP. However, projects and improvements less than the $50,000 threshold are still eligible park expenses as long as they are included in the documents referenced in Item 5 above or the City's adopted annual budget. Examples of these types of expenditures include the City's annual park license fees with Southern California Edison. Since these expenses are included in the City's budget, they are eligible and included in this report. Fee Amount: On June 18, 2012, in conjunction with approval of the new Ordinance 3946, Resolution 2012-23 was also adopted establishing updated development impact fees. As shown in Exhibit A-3 of Resolution 2012-23, the fees varied according to land use and were also implemented on a graduated scale ranging from 30% to 90% of the full fee amount. However, on October 1, 2016, as allowed in Resolution 2012-23, section 10, the originally adopted fees were adjusted due to a Consumer Price Index (CPI) increase to the amounts shown below. Land Use Amount (Eff. 10/1/16) Detached Dwelling Units(per unit) $16,554.73 Attached Dwelling Units (per unit) $12.732,84 Mobile Home Dwelling Units (per unit) $10,222.88 Hotel/Motel Lodging Units (per sq. ft.) $0.234 Resort Lodging Units (per unit) $0.234 Commercial/Office Uses(per sq. ft.) $0.897 Industrial/Manufacturing Uses (per sq. ft.) $0.730 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. 2 HB -73- Item 2, - 45 III. FINANCIAL SUMMARY Fiscal Year 2016-17 Revenue As shown in Attachment 3, the beginning Park Development Impact Fee fund balance as of September 30, 2016, was $2,901,194, During Fiscal Year 2016- 17, $3,150,305 in Park Development Impact fees was collected and $14,479 in interest was earned, for a combined total of $3,164,784. Fiscal Year 2016-2017 Expenditures As also shown in Attachment 3, $901 ,073 was expended for various park improvement projects, park license agreements, contracted/professional services, and staffing. The 2016-17 year end Park Development fund balance is $5,164,905 IV. PROJECTED CAPITAL IMPROVEMENT CONSTRUCTION DATES Per California Government Code 66006, the annual report should include the approximate date that construction will commence for public improvements funded through Park Development Impact Fees. A listing of these projects is summarized below. FY 2017-18 Murdy Park Sports Field Preparation of a conceptual design to create a multi-use youth sports field on the exiting turf area adjacent to Goldenwest Street. Edison Park Playground Feasibility study to determine methods to address subsidence issues in a portion of the playground and adjacent tennis courts. Beach Playground Construction of an All-Inclusive Playground tot lot on the beach in the vicinity of 9th St and PCH. Project is a joint partnership between privately donated funds and park impact fees. Huntington Central Park Permanent Lot Construction of a permanent parking lot to accommodate programming at Shipley Nature Center. Peter Green Rubberized Surfacing Installation of new rubber surfacing to maintain ADA compliance. Irby Park Improvements Construction of trail and passive park improvements for the 2.91 acre undeveloped portion of the park. Central Park-Urban Forest Trail Construction of a portion of the Central Park Multi-purpose trail linking Huntington Central Park Dog Park through the Urban Forest to the northeast corner of Edwards and Ellis Streets. Project is jointly funded using park impact fees and a grant from the Habitat Conservation Fund. 3 Item 2. - 46 HB -74- FY 2018-19 Murdy Park Sports Field Construction of an additional sports field practice area, lighting, and conversion of the picnic shelter to bocce ball courts, Murdy & Edison Community Center Building Improvements Construction of modifications to improve accessibility, safety, and energy efficiency of the lobby areas and activity rooms. LISTING OF ATTACHMENTS: 1. Ordinance No. 3946 2. Resolution No. 2012-23 3. Overview Park Development Fee Annual Summary Statement 4 HB -75- Item 2, - 47 ATTACHMENT 1 ORDINANCE NO. 3946 AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH AMENDING THE HUNTINGTON BEACH MUNICIPAL CODE BY ADDING CHAPTER 17.76 RELATING TO PARKLAND ACQUISITION AND PARK FACILITIES DEVELOPMENT IMPACT FEES The City Council of the City of Huntington Beach does hereby ordain as follows: SECTION 1. The Huntington Beach Municipal Code is hereby amended to add Chapter 17.76, said chapter to read as follows: Chanter 17.76 PARKLAND ACQUISITION AND PARK FACILITIES DEVELOPMENT IMPACT FEES Sections 17.76.010 Legislative findings. 17.76.020 Intent and Purpose. 17.76.030 Definitions, 17.76.040 Parkland Acquisition, and Park Facilities Development Impact Fee. 17.76.050 Fund Established. 17.76.060 Fee imposed. 17.76.070 Calculation of Parkland Acquisition and Park Facilities Development Impact Fee. 17.76.075 Fee Payments for Phased Development Projects 17.76.076 Fee Adjustments. 17.76.080 Payment of fee. 17.76.090 Use of funds. 17.76.100 Refund. 17.76.110 Exemptions and credits. 17.76.120 Appeals. 17.76.130 Credit for Construction of Non-Site Related Improvements. 17.76.140 Eligible Expenditures from Fee Reserve Account 1.7.76.150 Annual report and amendment procedures.. 17.76.160 Effect of Parkland Acquisition and Park Facilities Development Impact Fee on zoning and subdivision regulations. 17.76,170 Violation--Penalty. 17.76.180 Severability. 1 11-3209,002/79301 Item 2. - 48 HB -76- Ordinance No.3946 17.76.010-Legislative findings. A. The State of California, through the enactment of Government Code Sections 66001 through 66009 has authorized the City to enact development impact fees. B. The imposition of development impact fees is a method of ensuring that new development bears a proportionate share of the cost of capital facilities and other costs necessary to accommodate such development. These fees are established to promote and protect the public health, safety and welfare. C. A well-planned park system, with a variation in the size and nature of facilities offered is an important amenity to residents of the City. The City considers a mixture of passive and active park space uses optimal. Future residential development that does not require subdivision, will impact the City's existing park system by creating additional park users thus necessitating additional space for athletic fields, community facilities "tot lots," and other active uses and passive uses as well as passive space for businesses to enjoy. D. Funds to pay for the cost of acquisition and development of additional parkland and development of currently owned but underutilized parkland as well as development of facilities will be needed to serve the increasing users caused by development in the City. Without additional parks, parks development and community facilities, the City's current parks and community facilities will become overcrowded and overused. E. Pursuant to the "Development Impact Fee Calculation and Nexus Report for the City of Huntington Beach" ("Nexus Report") dated October, 2011, as amended April 27, 2012, which is incorporated herein by reference in these findings as though set forth in full, the fees established pursuant to this Chapter are derived from, based upon, and do not exceed the costs of parkland acquisition, park development and community facilities attributable to applicable new residential or nonresidential development. This study is based in part upon master planning to more specifically identify capital facilities to serve new development; the acquisition, relocation and expansion of parkland and park development and community facilities. F. The fees collected pursuant to this Chapter shall be used to finance the acquisition, relocation and expansion of parkland, park development, and community facilities in furtherance of the City General.Plan, as well as identified in the Nexus Report, and the attached City of Huntington Beach Master Facilities Development Plan, and the City of Huntington Beach Capital Improvement Plan. F. A detailed study of the impacts of future residential and nonresidential construction in the City, along with an analysis of the need for the acquisition, relocation and expansion of parkland and park facilities development is set forth in the Nexus Report. G. As set forth in the Nexus Report, there is a reasonable relationship between the need for the acquisition, relocation and expansion of parkland, park development, 2 12-3200.002/79301 1113 -77- Ltem 2. - 49 Ordinance No.3946 community facilities, and the impacts of the types of development for which the corresponding fee is charged. In addition, there is a reasonable relationship between the fee's use and the type of development to which the fee is charged and a reasonable relationship between the amount of the fee and the cost of the facilities or portion thereof attributable to the development on which the fee is imposed. 17.76.020 Intent and Purpose. A Parkland Acquisition and Park Facilities Development Impact fee is being created for the purpose of assuring that the impacts created by new development in the City of Huntington Beach pay a fair share of the proportional. costs for the acquisition, relocation and expansion of parkland, park development and community use facilities and related costs necessary to accommodate such development. This fee was once identified as a development impact fee in Resolution 2002-129 created pursuant to Huntington Beach Zoning and Subdivision Ordinance section 230.20. This Chapter is intended to implement the goals, objectives and policies of the City of Huntington Beach General Plan, as well as following the recommendations in the Nexus Report including the Master Facilities Plan and the City of Huntington Beach Capital Improvement Plan by ensuring that the City's acquisition, relocation and expansion of parkland and community facilities development are maintained when new development is constructed within the City limits. By imposing a fee that is reasonably related to the burdens created by new development on the City's parklands, together with funding available from other City revenue sources, the City will be able to purchase land and construct the required capital improvements to accommodate projected growth and fulfill the goals, objectives and policies of the City's General Plan and Master Facilities Plan a part of the Nexus Report. It is the intent of the City Council that the fee required by this Chapter shall be supplementary to any conditions imposed upon a development project pursuant to other provisions of the Municipal Code, the Subdivision Map Act, the California Environmental Quality Act, other state and local laws, ordinances or chapter provisions which may authorize the imposition of conditions on development. 17.76.030 -Definitions. Shall be as set forth in Chapter 17.73 of this Code. 17.76.040 -Parkland Acquisition and Park Facilities Development Impact Fee. There is imposed a Parkland Acquisition and Park Facilities Development Impact Fee on all non- subdivided new residential and nonresidential development. 17.76.050 - Fund established. A Parkland Acquisition and Park Facilities Development Impact Fee fund is established. The Parkland Acquisition and Park Facilities Development Impact Fee fund is a fund to be utilized for payment of the actual or estimated costs of parkland acquisition and community facilities development as set forth in Chapter 8 of the Nexus Report which includes the City of Huntington Beach Master Facilities Plan, as well as the City of Huntington Beach Capital Improvement Plan related to new residential and nonresidential.construction. 3 12-3209.002(79301 Item 2. - 50 1113 -78- Ordinance No. 3946 17.76.060 -Fee imposed, A. Any person who, 60 days after the effective date of this Development Impact Fee, seeks to engage in non-subdivided Residential or Nonresidential development by obtaining a building permit or other discretionary approval is required to pay a Parkland Acquisition and Park Facilities Development Impact Fee in the manner and amount as set forth,in the current City of Huntington Beach Fee Resolution separately adopted. B. No certificate of occupancy, temporary certificate of occupancy, or building permit approval for the activities listed in this Chapter, shall be issued unless and until the Parkland Acquisition and Park Facilities Development Impact Fee required by this Chapter has been paid to the City. 17.76.070 - Calculation of Parkland Acquisition and Park Facilities Development Impact Fee. A. At the time of the issuance of the building permit, the Director of Planning and Building or his/her designee ("Director") shall calculate the amount of the applicable Parkland Acquisition and Park Facilities Development Impact Fee due as specified in. the current fee resolution setting the amount of the fee. .B. The Director shall calculate the amount of the applicable Parkland Acquisition and Park Facilities Development Impact Fee due by: t. Determining the number and type of dwelling units in a residential development and multiplying the same by the Parkland Acquisition and Park Facilities Development Impact Fee amount per dwelling unit or pad as established by the current fee resolution setting the amount of the fee; 2. Determining the gross square feet of floor area or number of lodging units, type of use and location in a nonresidential development, and multiplying the same by the Parkland Acquisition and Park Facilities Development Impact Fee amount as established by the current fee resolution setting the amount of the fee; 3. Determining the number and type of dwelling units and the nonresidential number of lodging units or gross square feet of floor area, type of use and location, in a structure containing mixed uses which include a residential use, and multiplying the same by the Parkland Acquisition and Park Facilities Development Impact Fee amount for each use as established by the current fee resolution setting the amount of the fee; 4. Determining the gross square feet of floor area or number of lodging units, type of use and location in a structure containing mixed uses which include 4 12-3209.002/79301 1-113 -79- Item 2. - 51 Ordinance No. 3946 two (2) or more nonresidential principal uses, and multiplying the same by the Parkland Acquisition and Park Facilities Development Impact Fee amount as established by the current fee resolution. The gross square feet of floor area of any accessory use will be charged at the same rate as the predominant principal use unless the Department of Planning and Building finds that the accessory use is related to another principal use. 17.76.075 Fee Payments for Phased Development Projects. If a Development Project will be constructed in phases, and separate building permits and certificates of occupancy will be issued for each phase, fees imposed pursuant to this Chapter shall be calculated on the basis of the development characteristics of the entire Development Project. Payment of the fees may be made separately for each phase, provided the amount paid for each phase shall be equal to the percentage that that phase represents of the total development project's development characteristics. The fee shall be the fee in effect at the time payment is due. 17.76.076 Fee Adjustments. Shall be as set forth in Chapter 17.73 of this Code. 17.76.080 Payment of fee. A. The City shall collect from the applicant the Parkland Acquisition and Park Facilities Development Impact Fee prior to the issuance of a certificate of occupancy, temporary certificate of occupancy, or final building permit approval. B. Except for any administrative charge allocated to the City, all funds collected shall be properly identified and promptly transferred for deposit in the Parkland Acquisition and Park Facilities Development Impact Fee fund and used solely for the purposes specified in this Chapter. 17.76.090 Use of funds. A. Funds collected from the Parkland Acquisition and Park Facilities Development Impact Fee shall be used to fund the costs of providing the acquisition, relocation and expansion of parkland and park facilities development attributable to new residential and nonresidential construction and shall include: 1. The acquisition of additional property for the expansion of parkland and community facilities development; . 2. The construction of new parks and park facilities and community use facilities (except for non-residential as set forth in the Nexus report) and; 3. The funding of a master plan to identify capital facilities to serve new parkland and park facilities and community use facilities development; 4. The cost of financing (e.g., interest payments). 5 12-3209.002179301 Item 2. - 52 HB -so- Ordinance No.3946 5. Projects identified in City of Huntington Beach General Plan, the Master Facilities Plan included in the Nexus Report, City of Huntington Beach Capital Improvement Plan, adopted. annual City of Huntington Beach budget, or City Council approved park acquisition and development projects. B. Funds shall not be used for periodic or routine maintenance or to maintain or repair existing parkland or park facilities or community facilities. C. Revenue raised would be limited to capitalized cost related to growth. D. In the event that bonds or similar debt instruments are issued for advanced provision of capital facilities for which Parkland Acquisition and Park Facilities Development Impact Fees may be expended, impact fees may be used to pay debt service on such bonds or similar debt instruments to the extent that the facilities provided are of the type described in this Chapter. E. Funds may be used to provide refunds as described in this Chapter. 17.76.100 Refund. A. Any applicant who has paid a Parkland Acquisition and Park Facilities Development Impact Fee(s) pursuant to this Chapter may apply to the Director for a full or partial refund of same, if, within one (1) year after collection of the Parkland Acquisition and Park Facilities Development Impact Fee the Fee has been modified as follows: reduction in the number of dwelling units, a change in the type of dwelling units, a reduction in square footage, or the applicability of an exemption pursuant to this Chapter. In the event a refund is issued, the City may retain a sum up to twenty (20%) percent of the Parkland Acquisition and Park Facilities Development Impact Fee paid by the applicant to offset the administrative costs of refund. In no event shall a refund exceed the amount of the Parkland Acquisition and. Park Facilities Development Impact Fee actually paid. B. Erroneous or Illeyal Collection. Fees will be refunded if the applicant demonstrates to the satisfaction of the Director that they were erroneously or illegally collected. If the Director determines the fees were not erroneously or illegally collected, then the applicant may appeal the decision pursuant to Chapter 17,73.030 Appeals. An application for a refund pursuant to this Section must be filed within ninety (90) days after the payment of the fees. C. City Failure to Commit Funds. Pursuant to the Mitigated Fee Act, upon application of the then current landowner, fees will be refunded if the City fails to commit them to a project of the nature or type identified in the Nexus Report within five years from the date that the fees were collected from the applicant. For purposes of this subsection, fees are deemed to have been "committed" if they have been budgeted or otherwise encumbered by the City for an eligible improvement, studies, design drawings or any necessary applications for approval by other governmental agencies have been 6 12-3209.002/79301 HB -81- Item 2. - 53 Ordinance No.3946 initiated, construction bidding has been - initiated, or improvements are under construction. Eligible refunds, plus interest at the City's average annual cost of funds, will be made only upon an application filed within 180 days of the expiration of the fifth anniversary of the fee payment. 17.76.110 Exemptions and credits. A. Exemptions. Any claim of exemption must be made no later than the time of application for a building permit or construction approval. Any claim of exemption must be filed in the same manner and will be considered pursuant to the same procedure as for a fee adjustment as provided in this Chapter 17.73. The following shall be exempted from payment of the Parkland Acquisition and Park Facilities Development Impact Fee: 1. Residential Development a. Alteration or expansion of an existing residential building in which no additional dwelling units are created, the use is not changed, and where no additional relocation and expansion of parkland and park facilities development will be provided over and above those provided by the existing building; b. The replacement of a destroyed or partially destroyed building or structure with a new building or structure of the same size and use, provided that no additional relocation or expansion of parkland and park facilities development will be required over and above those provided by the original use of the land; C. The construction of residential accessory buildings, structures or uses which will not require additional acquisition, relocation or expansion of parkland and park facilities development over and above those provided by the principal building or use of the land; d. Construction, replacement or rebuilding of a single-family dwelling (one (1) unit per lot) on an existing lot of record, or the moving and relocation of a single-family home from one (1) lot within the City to another lot within the City. This exemption shall not apply to tract development, to the development of more than one (1) unit per lot, nor to the replacement of a single-family dwelling with more than one (1) dwelling unit; 2. Affordable housing for lower income households. Property rented, leased, sold, conveyed or otherwise transferred, at a rental price or purchase price which does not exceed the "affordable housing cost," as defined in Section 50052.5 of the California Health and Safety Code when provided to a "lower income household" as defined in Section 50079.5 of the California Health and Safety 7 12-3209.002/79301 Item 2. - 54 HB -82- Ordinance No, 3946 Code or "very low-income household" as defined in Section 50105 of the California Health and Safety Code. This exemption shall require the applicant to execute an agreement to guarantee that the units shall be maintained for lower and very low-income households whether as units for rent or for sale or transfer. The agreement shall be in the form of a deed restriction or other legally binding and enforceable document acceptable to the City Attorney and shall bind the owner and any successor-in-interest to the real property being developed. The agreement shall subordinate, if required, to any state or federal program providing affordable housing to lower and very low-income households. The agreement shall be recorded with the Orange County Recorder prior to the issuance of a certificate of occupancy. Applicant or any successor-in-interest shall be required to provide annually, or as requested, the names of all tenants or purchasers, current rents and income certification to insure compliance. Voluntary removal of the housing restriction or violation of the restriction shall require the applicant or any successor-in-interest to pay the then applicable Parkland Acquisition and Park Facilities Development Impact Fee at the time of voluntary conversion or as imposed at the time of violation on the unit in violation, plus any attorneys' fees and costs of enforcement, if applicable; B. Credits. Any applicant whose development is located within a community facilities district (CFD) or , and is subject to the assessments thereof, shall receive an offset credit towards the fees established by this Chapter to the extent that the assessments fund improvements within the CFD which would otherwise be funded by the development impact fees established by this Chapter. 17.76.120 Appeals. Shall be as set forth in Chapter 17.73 of this Code. 17.76.130 Credit for Construction of Non-Site-Related Improvements. Applications for credit for construction of non-site-related improvements shall submit applicable engineering drawings, specifications and construction cost estimates or the like to the Director. The Director shall determine any credit for improvement based on either these cost estimates or alternative estimates if the Director determines reasonably that the estimates submitted by the applicant are either unreliable or inaccurate. In no event shall the amount of the credit exceed the improvement cost specified in the Nexus Report, or other applicable basis for the fee, nor shall the credit exceed the amount that would otherwise apply. No final inspection or certificate of occupancy for the Development Project may be issued until: (1) the construction is completed and accepted by the City; (2) a suitable maintenance and warranty bond is received and accepted by the City; and (3) all design, construction, inspection, testing, bonding and acceptance procedures are in strict compliance with City paving, drainage and other applicable requirements. 17.76.140 Eligible Expenditures From Fee Reserve Account. All monies and interest earnings in any Reserve Account shall be expended on the projects of the nature or type identified in the Nexus Report, or such other report as may be prepared from time to time to 8 12-3209.002/79301 HB _83)_ Item 2. - 55 Ordinance No.3946 document the reasonable fair share of the costs to mitigate the acquisition, relocation and expansion of parkland and park facilities development impacts of new development. 17.76.150 Annual report and amendment procedures. A. Within one hundred eighty (180) days after the last day of each fiscal-year, the Deputy City .Manager of the City of Huntington Beach shall evaluate progress in implementation of the Parkland Acquisition and Park Facilities Development Impact Fee and shall prepare a report thereon to the City Council in accordance with Government Co e ection 66006,incorporating among other things: 1. Any parkland acquisition, park development and community facilities development commenced, purchased or completed utilizing monies from the Parkland Acquisition and Park.Facilities Development Impact Fee fund; 2. The amount of the fees collected and the interest earned; 3. The amount of Parkland Acquisition and Park Facilities Development Impact Fees in the fund; and 4. Any recommended changes to the Parkland Acquisition and Park Facilities Development Impact Fee, including, but not necessarily limited to changes in this Parkland Acquisition and Park Facilities Development Impact Fee chapter or fee resolution. B. Based upon the report and such other factors as the City Council deems relevant and applicable, the City Council may amend the ordinance codified in this Chapter or the fee resolution implementing this Chapter. Changes to the Parkland Acquisition and Park Facilities Development Impact Fee rates or schedules may be made by amending the fee resolution. Any change which increases the amount of the Parkland Acquisition and Park Facilities Development Impact Fee shall be adopted by the City Council only after a noticed public hearing.Nothing herein precludes the City Council or limits its discretion to amend the ordinance codified in this Chapter or the fee resolution establishing Parkland Acquisition and Park Facilities Development Impact Fee rates or schedules at such other times as may be deemed necessary. 17.76.160 Effect of Parkland Acquisition And Park Facilities Development Impact Fee on zoning and subdivision regulations.. This Chapter shall not affect, in any manner, the permissible use of property, density/intensity of development, design and improvement standards and public improvement requirements or any other aspect of the development of land or construction of buildings, which may be imposed by the City pursuant to the City's zoning regulations, subdivision regulations or other ordinances or regulations of the City, which shall be operative and remain in full force and effect without limitation with respect to all residential and nonresidential development. 9 12-3209,002/79301 Item 2. - 56 HB -84- Ordinance No. 3946 17.76.170 Violation—Penal . A violation of this Chapter shall be prosecuted in the same manner as misdemeanors are prosecuted; and upon conviction, the violator shall be punishable according to law. However, in addition to or in lieu of any criminal prosecution, the City shall have the power to sue in civil court to enforce the provisions of this Chapter. 1.7.76.180 Severability. If any section, phrase, sentence, or portion of this Chapter is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portions shall be deemed a separate, distinct, and independent provision; and such holding shall not affect the validity of the remaining portions thereof. SECTION 2. This ordinance shall become effective 30 days after its adoption. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 2nd day of July , 20 12 Mayor ATTEST: INITI T AN ROVED. City Clerk Deputy City Manager REVI ND APPROVED: APPROVED AS TO FORM: ilryanager �CiAttorney I-, ki 10 12-3209,002179301 11B -85- Item 2. - 57 Ord. No. 3946 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) 1,JOAN L. FLYNN, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing ordinance was read to said City Council at a regular meeting thereof held on.June 18,2012,and was again read to said City Council at a regular meeting thereof held on July 02,2012, and was passed and adopted by the affirmative vote of at least a majority of all.the members of said City Council. AYES: Shaw, Carchio, Bohr, Boardman NOES: Harper, Dwyer,Hansen ABSENT: None ABSTAIN: None I,Joan L.Flynn,CITY CLERK of the City of Huntington Beach and ex-officio Clerk of the City Council,do hereby certify that a synopsis of this ordinance has been published in the Huntington Beach Fountain Valley Independent on July 12,2012. In accordance with the City Charter of said City Joan L. Flynn,Cis Clerk C Clerk.and ex-officio erk. Senior Deouty City Clerk of.the City Council of the City of Huntington.Beach, California Item 2. - 58 1-113 -86- I ATTACHMENT 2 RESOLUTION NO. 2012 m 2 3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ADOPTING THE DEVELOPMENT IMPACT FEE CALCULATIONAND NEXUS REPORT FOR THE CITY OF HUNTINGTON BEACH,AND ESTABLISHING NEW AND REVISED DEVELOPMENT IMPACT FEES FOR ALL DEVELOPMENT WITHIN THE CITY WHEREAS,several policies within the City's General Plan require that new development mitigate its share of the impacts to the natural and built environments and be fiscally neutral so as to not result in a net economic loss for the City;and- Such General Plan policies include the maintenance of existing quality of life, maintenance of,existing service levels and funding of new facilities, the requirement of new development to mitigate a fair share of its impacts, and calling for the use of impact fees to fund needed improvements to serve new development, among other policies; and In accordance with these General Plan policies, the City Council has directed staff in the past to create development impact fees in accordance with State law. Said impact fees were codified in Chapter 17.65 and Chapter 17.66 of the Huntington Beach Municipal Code as well as Huntington Beach Zoning and Subdivision Ordinance Chapter 230.20. Pursuant to each ordinance set forth above,the amount of the development impact fee is to be set and/or updated by resolution of the City Council;and Subsequently,and periodically, staff has conducted comprehensive reviews of the City's development impact fees to determine whether those fees are adequate to defray the cost of public facilities related to new development;.those fees are set forth in Resolutions 6164,2006- 23,2000-97,2004-88,99-60 and 96-71; 2002-129,2004-88 and The City contracted with Revenue & Cost Specialists, LLC to provide a updated comprehensive evaluation of the City's existing development impact fees; and Revenue & Cost Specialists, LLC prepared a report, entitled Development Impact Fee Calculation and Nexus Report for the City of Huntington Beach, dated October, 2011 as amended April 27, 2012 (the "Nexus Report"), that provides an evaluation of existing development impact fees, recommends an increase and change in methodology in certain development impact fees, the creation of new impact fees and establishes the nexus between the imposition of such impact.fees and. the estimated reasonable cost of providing the service for which the fees are charged, and The Nexus Report has been available for public review and comment; and The Nexus Report substantiates the need for a modification to existing fees to change certain methodology as well as creation of new impact fees; and 1 12-3209.006/79289 HB _87_ Item 2. - 59 I Resolution No.2012-23 The City has collected.development impact fees.to mitigate the impacts of new development, including fees for transportation, park land acquisition and development, library and other public facilities since the adoption of the respective ordinances and resolutions;and The City Council desires to repeal certain resolutions, create and update other development impact fee resolutions in accordance with the calculations .and recommendations contained in the Nexus Report; and In compliance with the Mitigation Fee Act, California Government Code section 66000 et seg., the City Council held a noticed public hearing on the proposed increase in development impact fees at its regular meeting on Jurie 18 , 2012, to solicit public input on the proposed increases to development impact fees, I NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve as follows: I 1. Findings pursuant to Government Code section 66001. The City Council finds and determines that the Nexus Report complies with California Government Code section 66001, and as to each of the proposed fees to be imposed on new development: (a) Identifies the purpose of the fee; (b) Identifies the use to which the fee will be put; (c) Shows a reasonable relationship between the use of the fee and the type of development project on which the fee is imposed; (d) Demonstrates a reasonable relationship between the need for the public facilities and the type of development projects on which the fee is imposed;and (e) Demonstrates a reasonable relationship between the amount of the fee and the cost of the public facilities or portion of the public facilities -attributable to the development on which the fee is imposed. 2. Fees for Uses Consistent with the Nexus Report. The City Council hereby determnes that the fees imposed, pursuant to this resolution shall be used solely to finance the public facilities and/or equipment and park land acquisition described or identified in the respective ordinances and Nexus Report. 3. Approval of Items in the Nexus Report. The City Council has considered the specific public facilities, equipment and park land acquisition cost estimates identified in the Nexus Report and each ordinance thereto and hereby approves such public facilities, equipment and park land acquisition cost and cost estimates and further finds that the cost estimates serve as a reasonable basis for calculating and imposing the development impact fees as set forth in the Nexus Report. 2 12-3209.006/79289 Item 2. - 60 HB -88- Resolution No.2012-23 4. Consistency with General Plan, The City Council finds that the public facilities equipment and park land acquisition and fee methodology identified in the respective ordinances and Nexus Report are consistent with the City's General Plan and, in particular, those policies that require new development to mitigate its share of the impacts to City infrastructure and to be fiscally neutral. 5. Differentiation among Public Facilities: The City Council finds that the public facilities identified in the Nexus Report and funded through the collection of development impact fees recommended in the Nexus Report are separate and distinct from those public facilities funded through other fees presently imposed and collected by the City. To the extent that other fees imposed and collected by the City, including Specific Plan fees are used to fund the construction of the same public facilities identified in the respective ordinances and Nexus Report, then such other fees shall be a credit against the applicable development impact fees. Notwithstanding the above provision,this resolution shall not be deemed to affect the imposition or collection of the water and sewer connection fees authorized by the Huntington Beach Municipal Code. 6. CEQA Finding. The adoption of the Nexus Report and the increase in development impact fees are not subject to the California Environmental Quality Act in that pursuant to CEQA Guidelines, section 15378(b) (4), the creation of government- funding mechanisms which do not involve any commitment to any specific project which may cause a significant effect on the environment,is not defined as a"project"under CEQA. 7. Adoption of Report. The Nexus Report as amended April 27, 2012, including Appendices,is hereby adopted. 8. Fee Imposed. The new Development Impact Fees set by this resolution shall not apply to projects that have received discretionary project entitlement approval on or before June 5,2012 and the following milestones are met: 1. Project applicant has submitted an approved application for building permits within 180 days after the fee going.into effect or no later than February 18, 2013. 2. From the time of initial building permit application, the project makes continued progress toward satisfying plan check comments. 3. Building Permits are issued within 360 days after the fees go into effect. An exception to the above milestones is the involvement of an outside third party regulatory agency. In such cases the 180 days to make building permit application will begin when the developer receives clearance from that agency. The City Manager shall have the authority, in his/her sole discretion, to extend milestone dates for qualifying "grandfathered" projects. All other projects are subject to the fees then in,effect. All existing Development Impact Fees remain in effect until final action is taken on this resolution and respective ordinances. In the event.any portion of this resolution is held invalid, the previously approved. development impact fee shall automatically apply. 9. Timin of f Fee. The development impact fees imposed by this resolution shall be paid pursuant to the ordinances or resolution creating each separate fee, Until final action is 3 12-3209.006n92 S9 HB -89- Item 2. - 61 Resolution No.2012-23 taken by City Council adopting the ordinances or resolution referenced herein, resolutions 6164, 2006-23,2000-97,99-60,2004-88 and 96-71 shall remain in effect. 10. Amount of Fee. The City Council hereby approves and adopts the Development Impact Fees as set forth in Exhibit"A,"attached hereto and incorporated herein as well as Nexus Report Schedules 3,2, 43, 52, 6.2, 7'.1, 8.1, and 8.4. Exhibit A and the Nexus Report sets forth the methodology and aggregate amount imposed as a development impact fee for both residential and nonresidential land uses and also sets forth the breakdown of each development impact fee by type of facility; The amount of the development impact fees excluding traffic impact fees shall be automatically modified annually pursuant to the the percentage of increase or decrease in the Los Angeles-Anaheim-Riverside All Urban Consumer Price Index (CPI) or any relevant successor for the Orange County area,from March to March of the preceding twelve(12)months. Traffic impact fees shall be increased using the Engineering News Record's construction cost index as reported for the twelve month period ending in March of each year. The escalator indices provided herein shall not take effect until March of 2016. 11. Use of fee. The development impact fees shall be solely used for the purposes described in the respective ordinances creating the fees and the Nexus Report. Fees collected pursuant to existing ordinances and resolutions shall be maintained and used exclusively for those purposes and accounts for these fees shall remain in effect and shall be maintained by the City Manager or his/her designee. Fees collected under any of the categories listed in the Nexus Report may be used to finance the construction or implementation of any public facility listed in those categories to the extent that use of the fees may not exceed the percentage allocated to new development of all of the public facilities listed in the category, or sub-category. 12. Fee Determination by Type of Use. A. Residential Development. Development impact fees for residential development shall be based upon the type of unit constructed. The development impact fee categories as shown in Exhibit A generally correspond to the City's land use designations in the land use element of the Ciiy's General Plan. B. Nonresidential Land Uses. Development impact fees for nonresidential land uses shall be based upon the square footage of the building or other measurement detailed in the respective development impact fee ordinances. The development impact fee categories as shown in Exhibit A generally correspond to the City's land use designations in the land use element of the City's General Plan. C. Uses Not Specified. In the event that there are land uses not specified in Exhibit A, the development impact fee for such use shall be determined by the City Manager or 4 12-3209.006/79289 Item 2. - 62 HB -90_ Resolution No.2012-23 his/her designee who shall determine such fee based on an analysis of the impacts of the proposed use on public facilities, equipment and/or park land. 13° Prior Resolutions Superseded. As provided herein the development impact fees approved and. adopted by this resolution shall supersede and repeal any previously adopted development impact fee resolutions concerning the same,including 6164, 96-71, 99-60, 2000-97, 2004-88 and 2006-23, 2002-129, 2004-88. 14. Severability. If any action, subsection, sentence, clause or phrase of this resolution, the Nexus Report, or other attachments thereto, shall be held invalid or unconstitutional by a court of competent jurisdiction, such invalidity shall not affect the validity of the remaining portions of this resolution the Nexus Report, or other attachments thereto' or fees levied by this resolution that. can be given effect without the invalid provisions or application of fees. In the event any section of this resolution is held invalid the previously adopted affected fees shall be automatically reinstate as if never repealed or modified herein. 15. Effective Date. Consistent with California Government Code section 66017(a), the fees as identified in attached Exhibit "A" adopted by this resolution shall take effect sixty. (60) days following final action taken on the respective ordinances or amendments thereto by the City Council. 16. Appeals. Appeals of any fees, including methodology, use, land valuation. etc. created pursuant to this resolution shall be conducted as set forth in Huntington Beach Municipal Code Chapter 17.73. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 18_ day of June �12 Mayor REV$AaVED: INITI WCityvan-ager ROVED: Ci Deputy APPROVED AS TO FORM: City Attorney 'fY1 ��_a3••!�. 5 12-3209.006/79289 1-113 -91- Item 2. - 63 i Exholbolt Item 2. - 64 HB _92_ i Exhibit A-3 Aternative Fee Schedule No.3 Development Impact Fees (Effective 9/2/2012) 30% Circulation Park Land/ System Open Space Law Fire (Streets, &Facilities Enforcement Suppression Signals, Public Library (No Tract Land Use Facilities Facilities Bridges) Facilities Map) Detached Dwelling Units(per Unit) $119 $277 $1,800 $1,091 $6,802 Attached Dwelling Units(per Unit) $245 $115 $1,238 $519 $4,632 Mobile Home Dwelling Units(per Unit) $111 $475 $940 $479 $3,351 Hotel/Motel Lodging Units (per Unit) No Fee No Fee $172/trip $0.04/SF $0,23/SF Resort Lodging Units(per Unit) -No Fee No Fee $172/trip $0,04/SF $0.23/SF Commerclal/Office Uses(per sq.ft.) $0.312 $0,099 $4,175 No Fee $0.447 industrial/Manufacturing Uses(per sq,ft.) $0.133 %009 $1.279 No Fee $0.393 Development Impact Fees (Effective 9/2/2013) 60% Circulation Park Land/ System Open Space Law Fire (Streets, & Facilities Enforcement Suppression Signals, - Public Library (No Tract Land Use . Facilities Facilities Bridges) Facilities Map) Detached Dwelling Units (per Unit) $238 $553 $2,092 $1,126 $11,540 Attached Dwelling Units(per Unit) $489 $229 $1,417 $686 $8,576 Mobile Home Dwelling Units(per Unit) $221 $950 $1,094 $588 $6,701 Hotel/Motel Lodging Units(per Unit) No Fee No Fee $172/trip $0.04/SF $0,23/SF Resort Lodging Units(per Unit) No Fee No Fee $172/trip $0,04/SF $0,23/SF Comm erclal/Office Uses(per sq.ft.) $0.625 $0,197 $4.175 No Fee $0.664 Industrial/Manufacturing Uses(per sq.ft.) $0.266 $0.018 $1.498 No Fee $0.555 Development Impact Fees (Effective 9/2/2014) 90% Circulation Park Land/ System Open Space Law Fire (Streets, &Facilities Enforcement Suppression Signals, Public Library (No Tract Land Use Facilities Facilities Bridges) Facilities Map) Detached Dwelling Units(per Unit) $356 $830 $2,385 $1,160 $16,278 Attached Dwelling Units(per Unit) $734 $344 $1,597 $852 $12,520 Mobile Home Dwelling Units(per Unit) $332 $1,425 $1,248 $697 $10,052 Hotel/Motel Lodging Units(per Unit) No Fee No Fee $172/trip $0.04/SF $0.23/SF Resort Lodging Units(per Unit)— No Fee No Fee $172/trip $0.04/SF $0.23/SF Commercial/Office Uses (per sq.ft,) $0,937 $0.296 $4.175 No Fee $0.882 Industrial/Manufacturing Uses(per sq,ft.) $0.399 $0.027 $1,716 No Fee $0.718 Date Printed:5/24/2012,June 4 Resolutlon 30090 Page 1 H13 -93- Item 2. - 65 OVERVIEW ATTACHMENT 3 Park Development Impact Fee Annual Financial Summary Statement Fiscal Year 2016-17 Amount Fund Balance 9/30/16 (inc. all Park Dev Impact Fee Funds) 2,901,194 Revenue FY 2016-17 Amount Fees (Fund 228) - Residential 2,972,244 Fees (Fund 235) - Non Residential 117,403 Fees (Fund 236)- Public Art in Parks 60,658 Combined Fund Interest 14,479 Revenue Total 3,164,784 Percent Funded with Dev. Impact Expenditures FY 2016-17 Amount Fees Park Improvements (A) 424,605 100% Park Acquisition- Encyclopedia Lots/LeBard (Year 2 of 5) 333,027 100% Park License Agreements 9,085 100% Professional/Contracted Services (B) 20,079 100% Staffing 114,277 50% Expenditure Total 901,073 Fund Balance (9/30/17) (inc. all Park Dev Impact Funds) $5,164,905 A) Central Park Tot Lot Surfacing, Worthy Park, Youth Sports Grants, Huntington Harbour Marina Trash Skimmers, Park Monument Signs B) Professional Services for Concept Designs for Murdy Park Fields and Irby Park Item 2. - 66 HB -94- ATTACHMENT #4 LAW ENFORCEMENT FACILITIES DEVELOPMENT IMPACT FEE ANNUAL REPORT FISCAL YEAR 2016-2017 I. BACKGROUND: On June 18, 2012, the City Council approved the introduction of Ordinance No. 3942 which amended the Huntington Beach Municipal Code by adding Chapter 17.75 relating to Law Enforcement Facilities Impact Fees. The second reading of the Ordinance was approved on July 2, 2012 (Attachment 1). I. REPORTING REQUIRMENTS State Law imposes both annual and five-year reporting requirements for collection of Development Impact Fees. The specific elements to be included in the report are: • 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 the approximate date by which the construction of public improvements will commence • A description of each interfund transfer or loan made from the account or fund • 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 March 19, 2018. Fee Description: Per HBMC 17.75.090, the funds collected from the Law Enforcement Facilities Development Impact Fee shall be used to fund the costs of providing police services attributable to new residential and nonresidential construction and shall include: HB -95- Item 2. - 67 The costs of providing the acquisition, construction, furnishing of new buildings, purchase of new specialty equipment and vehicles, development of a master plan to identify capital facilities, the cost of financing, projects identified in the City's General Plan, the Master Facilities Plan included in the Nexus Report, the City's Capital Improvement Plan, or City Council approved development projects. Fee Amount: On June 18, 2012, in conjunction with approval of the new Ordinance 3942, Resolution 2012-23 was also adopted establishing new and revised development impact fees for all development within the city. The fees vary according to land use and were also implemented on a graduated scale ranging from 30% to 90% of the full fee amount. Per City Council action, effective October 1, 2016, the fees were as follows: Land Use Amount Detached Dwelling Units (per unit) $362.05 Attached Dwelling Units (per unit) $746.48 Mobile Home Dwelling Units (per unit) $337.64 Hotel/Motel Lodging Units (per unit) No fee Resort Lodging Units (per unit) No fee Commercial/Office Uses (per sq. ft.) $0.953 per square foot Industrial/Manufacturing Uses (per sq. ft.) $0.406 per square foot Interfund Loans No Law Enforcement Facilities 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 2016-2017 Revenue The beginning fund balance as of October 1 , 2016 was $486,355.80. During Fiscal Year 2016-2017, $253,770.68 in Law Enforcement Facilities Fees were collected and $2,333 of interest/bank adjustments were posted. The ending fund balance as of September 30, 2017 was $742,459.48. Item 2. - 68 HB -96- Fiscal Year 2016-2017 Expenditures There were no expenditures during the 2016-2017 Fiscal Year to the Law Enforcement Facilities fund. LISTING OF ATTACHMENTS: 1 . Ordinance No. 3942 HB -97- Item 2. - 69 ATTACHMENT #5 FIRE SUPPRESSION FACILITIES DEVELOPMENT IMPACT FEE ANNUAL REPORT FISCAL YEAR 2016-2017 Ie BACKGROUND: On June 18, 2012, the City Council approved the introduction of Ordinance No. 3942 which amended the Huntington Beach Municipal Code by adding Chapter 17.74 relating to Fire Suppression Facilities Impact Fees. The second reading of the Ordinance was approved on July 2, 2012. II. REPORTING REQUIRMENTS State Law imposes both annual and five-year reporting requirements for collection of Development Impact Fees. The specific elements to be included in the report are: • 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 the approximate date by which the construction of public improvements will commence • A description of each interfund transfer or loan made from the account or fund • 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 March 19, 2018. Fee Description: Per HBMC 17.74.090, the funds collected from the Fire Suppression Facilities Development Impact Fee shall be used to fund the costs of providing additional Fire suppression/medic facilities, vehicles and specialty equipment attributable to new residential and nonresidential construction and shall include: The acquisition of additional property for fire department facilities, the construction of new facilities for fire department services, the furnishing of new buildings or facilities for fire department services, the purchase of new specialty equipment and vehicles for fire department services, the funding of a master plan to identify capital facilities to serve new Fire Department development, the cost of financing projects identified in the City's General Plan, the Master Facilities Plan included in the Nexus Report, the City's Capital Improvement Plan, or City Council approved development projects. Item 2. - 70 HB -98- Fee Amount: On June 18, 2012, in conjunction with approval of the new Ordinance 3943, Resolution 2012-23 was also adopted establishing new and revised development impact fees for all development within the city. The fees vary according to land use and were also implemented on a graduated scale ranging from 30% to 90% of the full fee amount. Per City Council action, effective November 4, 2017, the fees are as follows: Land Use Amount Detached Dwelling Units (per unit) $844.11 Attached Dwelling Units (per unit) $349.85 Mobile Home Dwelling Units (per unit) $1,449.23 Hotel/Motel Lodging Units (per unit) No fee Resort Lodging Units (per unit) No fee Commercial/Office Uses (per sq. ft.) $0.301 per square foot Industrial/Manufacturing Uses (per sq. ft.) $0.0275 per square foot Interfund Loans No Fire Suppression Facilities 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 2016-2017 Revenue The beginning fund balance as of October 1, 2016 was $290,436.99. During Fiscal year 2016-2017 $104,346.45 in Fire Suppression Facilities Fees were collected and $1,314 of interest/bank adjustments were posted. The ending fund balance as of September 30, 2017 was $396,097.44. Fiscal Year 2016-2017 Expenditures There were no expenditures during the 2016-17 Fiscal Year to the Fire Suppression Facilities fund. As funds are collected, future reports will reflect expenditures in accordance with HBMC 17.74.090 as described above. H 13 -99- Item 2. - 71 ATTACHMENT #6 H 7 CITY OF HUNTINGTON BEACH PUBLIC WORKS COMMISSION REQUEST FOR ACTION 5 Item No. PW 18-05 SUBMITTED TO: Chairperson and Members of the Commission SUBMITTED BY: Travis K. Hopkins, PE, Director of Public Works DATE: February 21 , 2018 SUBJECT: Planned Local Drainage Facilities Fund Annual Compliance Report Fiscal Year 2016/17 - Revised Statement of Issue: In accordance with Section 14.48 of the Huntington Beach Municipal Code (HBMC), the Public Works Department is required to prepare an annual report of the status of the Planned Local Drainage Facility Fund (Drainage Fund) for the City Council. The process provides an opportunity for the Public Works Commission to review planned projects, revenues and expenditures under the program. Funding Source: No funding is required for this action. Impact on Future Maintenance Costs: Not applicable. Recommended Action: Motion to recommend to the City Council the approval of the Planned Local Drainage Facility Fund Compliance Report for Fiscal Year 2016/17. Alternative Action(s): Recommend revisions to the report. Analysis: The Planned Local Drainage Facilities Fund (Drainage Fund) is a development fee that is restricted to use for drainage system enhancements. Section 14.48.050 (d) requires the City Council to review the status of compliance with this Chapter, including the revenues collected and the funds expended. The following information conforms to the requirements of the HBMC regarding revenues and expenditures of the Drainage Fund. Although the reporting requirement became effective with the adoption of the revised ordinance in September 2006, the Drainage Fund has existed since 1975. The following information covers Fiscal Year (FY) 2016/17. Item 2. - 72 HB -100- Fiscal Status The Drainage Fund advanced $250,000 to the Redevelopment Agency for improvements in 1987. With interest accrual of $603,877, the debt amount is currently $867,906. As a result, the Fund maintained a negative balance over a period of ten years until FY 12/13, when the fund ended with a positive balance. In FY 2016/17, the Drainage Fund ended the year with a balance of $1 ,418,625. On June, 29, 2011 , the State of California enacted AB 1 X26, which dissolves redevelopment agencies and designates Successor Agencies to "wind-down" activities of the former redevelopment agencies under supervision of newly created Oversight Boards. On January, 31, 2012, the City's Redevelopment Agency presented an initial draft Recognized Obligation Payment Schedule (BOPS) to the Successor Agency. In this case, the City has elected to become the Successor Agency. The debt noted above is included in the list of obligations, however, no payments are scheduled to the Drainage Fund within the presented time frame. Fiscal Year Change On December 18, 2017, the City Council approved an ordinance and resolutions to change the City's fiscal year from the current October 1 to September 30 time frame to July 1 to June 30. Therefore, FY 2017/18 will be a shortened (9 months) year. For the purposes of this report, the figures below represent revenues and expenditures as originally budgeted. Revenues Revenue for FY 2016/17 from development was $58,004 and interest to the fund was $5,648 for total revenues of $63,652. Budgeted revenue for FY 17/18 is $100,000. Expenditures Expenditures in FY 2016/17s totaled $63,795 in consultant charges for updates to the Drainage Master Plan. Budgeted expenditures for FY 17/18 consist of a carry over encumbrance of $236,157 for the Drainage Master Plan update. Conformance with Program Goals and Objectives The Drainage Fund is intended to implement the goals and objectives of the current Drainage Master Plan. Funds collected and deposited to the fund may be expended solely for the construction or reimbursement for construction of drainage facilities. The Fund is in compliance with these requirements. FIB -101- Item 2. - 73 Beginning Balance 10/16 $1,418,625 Revenue Developer fees 58,004 Interest earned 5,648 Total Revenue $63,652 Expenditures Drainage Master Plan (63,795 Total Expenditures ($63,795 Beginning Balance 10/17 $1,418,482 Projected revenues 100,000 Budgeted expenditures 236,157 Estimated Balance 10/18 $1,282,325 Rate Schedule The Drainage Fee for FY 16117 was $14,1 16 per acre. Environmental Status: Not applicable Attachments: None Item 2. - 74 HB -102- ATTAC H M E N T #7 CITY OF HUNTINGTON BEACH PUBLIC WORKS COMMISSION REQUEST FOR ACTION Item No. PW 18-04 SUBMITTED TO: Chairperson and Members of the Commission SUBMITTED BY: Travis K. Hopkins, PE, Director of Public Works DATE: February 21 , 2018 SUBJECT: Sanitary Sewer Facilities Fund Annual Compliance Report Fiscal Year 2016/17 - Revised Statement of Issue: In accordance with Section 14.36 of the Huntington Beach Municipal Code (HBMC), the Public Works Department is required to prepare an annual report of the status of the Sanitary Sewer Facilities Fund (Sanitary Sewer Fund) for the City Council. The process provides an opportunity for the Public Works Commission to review planned projects, revenues and expenditures under the program. Funding Source: No funding is required for this action. Impact on Future Maintenance Costs: Not applicable. Recommended Action: Motion to recommend to the City Council the approval of the Annual Sanitary Sewer Facilities Fund Compliance Report for Fiscal Year 2016/17. Alternative Action(s): Recommend revisions to the report. Analysis: The Sanitary Sewer Fund is a development fee that is restricted to use for sewer capacity enhancements. The fee is unrelated to the monthly Sewer Service Charge used for operations and maintenance of the existing sewer system. Section 14.36.070 (d) requires the City Council to review the status of compliance with this Chapter, including the revenues collected and the funds expended. The following information conforms to the requirements of the HBMC regarding revenues and expenditures of the Sanitary Sewer Fund. Although this requirement became effective with the adoption of the revised ordinance in HB -103- Item 2. - 75 July 2003, the Sewer Facilities Fund has existed since 1988. The following information covers Fiscal Year (FY) 2016/17. Fiscal Year Change On December 18, 2017, the City Council approved an ordinance and resolutions to change the City's fiscal year from the current October 1 to September 30 time frame to July 1 to June 30. Therefore, FY 2017/18 will be a shortened (9 months) year. For the purposes of this report, the figures below represent revenues and expenditures as originally budgeted. Fiscal Status Revenues and expenditures are summarized below for the past fiscal year. The fund balance as of September 30, 2017 was $8,142,167. Not included in this figure are monies owed the Sanitary Sewer Facilities Fund by the Huntington Beach Redevelopment Agency. The original advance was $131 ,000. With interest accrual, the debt amount for the fiscal year end was $458,329. On June, 29, 2011 , the State of California enacted AB 1 X26, which dissolves redevelopment agencies and designates Successor Agencies to "wind-down" activities of the former redevelopment agencies under supervision of newly created Oversight Boards. On January, 31 , 2012, the City's Redevelopment Agency presented an initial draft Recognized Obligation Payment Schedule (BOPS) to the Successor Agency. In this case, the City has elected to become the Successor Agency. The debt noted above is included in the list of obligations; however, no payments are scheduled to the Sanitary Sewer Facilities Fund within the presented time frame. Revenues Total revenue for FY 2016/17 was $82,350. Residential and commercial developer fees contributed $3,312 and $35,270 respectively. The City also received its annual payment of $12,310 from the Sunset Beach Sanitary District representing the agency's share for the construction of Lift Station D. The fund was credited $31 ,458 in interest. Budgeted revenue for FY 17/18 is $100,000.. Expenditures Fiscal Year 2016/17 Expenditures for the fund in FY 15/16 consisted of $159,127 in staff and consultant charges related to the Edgewater Lift Station project. Item 2. - 76 HB -104- Fiscal Year 2017/18 Budgeted expenditures for the current fiscal year include $2,500,000 for the construction of the Slater Lift Station and $2,243,752 in encumbrance carry- forwards related to construction of the Edgewater Lift Station. Conformance with Program Goals and Objectives The Sanitary Sewer Facilities Fund is intended to implement the goals and objectives of the current Sewer Master Plan. Funds collected and deposited to the fund may be expended solely for the construction or reimbursement for construction of sanitary sewer facilities. The Fund is in compliance with these requirements. Summary of Revenue and Expenditures Sanitary Sewer Facilities Fund Beginning Balance 10/16 $8,166,017 Revenue Developer fees (residential) 3,312 Developer fees (commercial) 35,270 Sunset Beach Sanitary Dist. 12,310 Interest earned 31,458 Total Revenue $82,350 Expenditures Design Services 159,127) Total Expenditures $ (159,127) Beginning Balance 10/17 $8,089,240 Budgeted revenues 100,000 Budgeted expenditures 4,743,752 Estimated Balance 10/18 $3,445,488 Rate Structure Fiscal Year 2016/17 _qi ITY SEWER CONNECTIOM FEES aEffective January 6, 201°7 Single Family Dwelling Unit $ 2,256 Multiple Family Dwelling Unit $ 1 ,845 !�i111 k i � � i". t�i PlliG'7i — w��� + h"tii4lll i*: - None Relsidential (based on water meter sizeii,relationship to-Equivalent®Fwelling4;.Unit,rEDU 13 ) _ 1 9iN � d Meter4Slze=B� Type E®U sy r - Charge „r ,k51 kx..lw, ,tia ate. 'k.b l ems' €#Y i�. 5c+; a, 3/4" 1 $ 2,564 1" 2 $ 5.129 HB -105- Item 2. - 77 1 '/2" 3 $ 7.693 2" 5 $ 12,824 3" 11 $ 28,212 4" Compound 17 $ 43,599 4" Domestic & Turbine 33 $ iv 84,634 6" Compound 33 $ _ 84,634 6" Domestic &Turbine' 67 $ 171,830 8" Domestic 117 $ 300,061 10" Domestic 183 $ 466,642 Environmental Status: Not applicable. Attachments: None Item 2. - 78 Hs -106- ATTAC H M E N T #8 HCITY OF HUNTINGTON BEACH PUBLIC WORKS COMMISSION REQUEST FOR ACTION Item No. PW 18-06 SUBMITTED TO: Chairman and Members of the Commission SUBMITTED BY: Travis K. Hopkins, PE, Director of Public Works DATE: February 21 , 2018 SUBJECT: Fair Share Traffic Impact Fee Program Annual Report for Fiscal Year 2016/17 - Revised Statement of Issue: In accordance with Section 17.65.130 of the Huntington Beach Municipal Code (HBMC), the Public Works Department is required to prepare an annual report of the status of the Fair Share Traffic Impact Fee Program for the City Council. The process also provides an opportunity for the Public Works Commission to review revenues and expenditures under the program. Funding Source: No funding is required for the recommended action. All Traffic Impact Fee funds are maintained in a separate account from other City operation funds. Recommended Action: Motion to recommend approval of the 2016/17 Traffic Impact Fee Annual Report to the City Council. Alternative Action(s): Recommend revisions to the report elements or request additional information. Analysis: The Fair Share Traffic Impact Fee (TIF) program is intended to implement the goals and objectives of the General Plan by providing revenue to ensure that the adopted Level of Service standards for arterial roadways and signalized intersections are maintained when new development is constructed within the City limits and that these developments pay their fair share towards short and long term transportation improvements. The following sections comprise the annual report. HB -107- Item 2. - 79 Fiscal Status This report presents the fund information based on the City's preliminary audit for Fiscal Year 2016/17. The balance for the fund at the beginning of the fiscal year was $3,591 ,435. During FY 2016/17, Traffic Impact Fee fund recognized $814,496 in revenues including, $436,630 in Impact Fees Paid, $15,788 in interest and $362,078 in land sales related to a previous right-of-way project. Expenditures from the fund included $26,623 in miscellaneous design service, $55,588 for Brookhurst%Adams Intersection Improvements, $16,969 for Atlanta Avenue Widening and $51 1 ,620 for Edinger Widening for a total of $610,801 . The fund balance at the end of the fiscal year was $3,821 ,486. Fiscal Year Change On December 18, 2017, the City Council approved an ordinance and resolutions to change the City's fiscal year from the current October 1 to September 30 time frame to July 1 to June 30. Therefore, FY 2017/18 will be a shortened (9 months) year. For the purposes of this report, the figures below represent revenues and expenditures as originally budgeted, except as noted. Planned Capital Projects, Studies and Expenditures The City Council approved Capital Improvement Program (CIP) carry over funding for Fiscal Year 2017/18 in the amount of $91 ,422 for the Atlanta Avenue Widening project. Encumbrance carry over funds from FY 16/17 totaled $66,619. The revised budgeted expenditures against the fund total $158,041 . Projected estimate of Fund Balance For budget purposes, the City has estimated that approximately $100,00 in new traffic impact fee payments would be realized during FY 17/18, however, to date the City has received $245,557 resulting in a projected balance (unprogrammed funds) of $3,908,892 at year's end. Actual payments to the fund could be significantly more or less than projected. However, current programming does not rely on a specific amount being collected in FY 17/18. A summary of the fund activity is presented in tabular form below. Future Project and Fund Balance Uses of Traffic Impact Fee funds are restricted to roadway capacity projects or other projects that affect the performance of the street system to offset the impacts of traffic generated by new development. Often, these types of projects are quite expensive and can involve right-of-way acquisition and property impacts. Staff has been developing projects to address some key roadway capacity areas in the City that are also larger scale projects. With expenditures that can be millions of dollars, staff has been recommended that the Traffic Impact Fee fund accumulate a significant balance in order to make pursuit of those projects financially possible in the future. However, it is important Item 2. - 80 HB -108- to develop a program for fund expenditure to ensure the timely use of funds that are collected under this program. Staff often uses Traffic Impact Fee funds as a "matching fund" when pursuing capacity enhancing grant projects. Two such examples are improvements at the intersections of Beach/Warner and Brookhurst/Adams. Both projects are key locations where future use of Traffic Impact Fee funds are expected. Between the 2 projects, more than $8 million in expenditures are anticipated. The City hopes to leverage Traffic impact Fees to obtain grant funds for a portion of these costs. Other potential uses for funds include improvements to traffic operations and signal coordination throughout the traffic signal system and potential long-term improvements at the intersections of Beach Boulevard/Heil and Beach Boulevard/Talbert, The City is also waiting for the final determination on the property purchase value for the Atlanta Widening Project. Should the value be determined by the courts to be higher than expected, it is likely that Traffic Impact Fee funds would be recommended to be used to meet that funding need. The City is also applying for funding for future improvements along the Edinger and Warner corridors to improve signal operations and traffic flows. These projects are expected to occur in FY2020/21 but could result in the use of Traffic Impact fees for our required matching funds, estimated to be $200,000 to $350,000 out of the more than $1 .7 million in improvements. Summary of Revenue and Expenditures Traffic Impact Fund Beginning Balance 10/16 $3,591,435 Revenue Traffic Impact Fees 436,630 Land Sale 362,078 Interest earned and misc.fees 15,788 Total Revenue $ 814,496 Expenditures Design Services (26,623) Brookhurst/Adams IIP (55,588) Atlanta Avenue Widening (16,969) Edinger Avenue Widening 511,620 Total Expenditures $ (610,800) Beginning Balance 10/17 $3,795,131 Budgeted revenues 245,447* Budgeted expenditures 158,041 Estimated Balance 17/18 $3,884,537 *actual revenue to date Conformance with Program Goals and Objectives The Traffic Impact Fee Program is intended to implement the goals, objectives and policies of the City of Huntington Beach General Plan, as stated in the HB -109- Ltem 2. - 81 Municipal Code Chapter 17.65. Completion of the planned projects implements improvements identified in the Circulation Element of the General Plan and is in conformance with the goals and objectives of the Fair Share Traffic Impact Fee program. Item 2. - 82 HB -110- ATTACHMENT #9 RESOLUTION NO. 2012-23 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH. ADOPTING THE DEVELOPMENT IMPACT FEE CALCULATION AND NEXUS REPORT FOR THE CITY OF HUNTINGTON BEACH, AND ESTABLISHING NEW AND REVISED DEVELOPMENT IMPACT FEES FOR ALL DEVELOPMENT WITHIN THE CITY WHEREAS, several policies within the City's General Plan require that. new development mitigate its share of the impacts to the natural and built environments and be fiscally neutral so as to not result in a net economic loss for the City; and Such General Plan policies include the maintenance of existing quality of life, maintenance of existing service levels and funding of new facilities, the requirement of new development to mitigate a fair share of its impacts, and calling for the use of impact fees to fund needed improvements to serve new development, among other policies; and In accordance with these General Plan policies, the City Council has directed staff in the past to create development impact fees in accordance with State laws Said impact fees were codified in Chapter 17.65 and Chapter 17.66 of the Huntington Beach Municipal Code as well as Huntington Beach Zoning and Subdivision Ordinance Chapter 230.20. Pursuant to each ordinance set forth above, the amount of the development impact fee is to be set and/or updated by resolution of the City Council; and Subsequently, and periodically, staff has conducted comprehensive reviews of the City's development impact fees to determine whether those fees are adequate to defray the cost of public facilities related to new development; those fees are set forth in Resolutions 6164, 2006- 23, 2000-97, 2004-88, 99-60 and 96-71; 2002-1295 2004-88 and The City contracted with Revenue & Cost Specialists, LLC to provide a updated comprehensive evaluation of the City's existing development impact fees; and Revenue & Cost Specialists, LLC prepared a report, entitled Development Impact Fee Calculation and Nexus Report for the City of Huntington Beach, dated October, 2011 as amended April 27, 2012 (the "Nexus Report"), that provides an evaluation of existing development impact fees, recommends an increase and change in methodology in certain development impact fees, the creation of new impact fees and establishes the nexus between the imposition of such impact fees and the estimated reasonable cost of providing the service for which the fees are charged; and The Nexus Report has been available for public review and comment; and The Nexus Report substantiates the need for a modification to existing fees to change certain methodology as well as creation of new impact fees; and 1 12-3209.006/79289 H B -l l I- Item 2. - 83 Resolution No,2012-23 The City has collected development impact fees to mitigate the impacts of new development, including fees for transportation, park land acquisition and development, library and other public facilities since the adoption of the respective ordinances and resolutions; and The City Council desires to repeal certain resolutions, create and update other development impact fee resolutions in accordance with the calculations and recommendations contained in the Nexus Report; and In compliance with the Mitigation Fee Act, California Government Code section 66000 et seq., the City Council held a noticed public hearing on the proposed increase in development impact fees at its regular meeting on June 18 , 2012, to solicit public input on the proposed increases to development impact fees, NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve as follows: 1. Findings pursuant to Government Code section 66001. The City Council finds and determines that the Nexus Report complies with California Government Code section 66001, and as to each of the proposed fees to be imposed on new development: (a) Identifies the purpose of the fee; (b) Identifies the use to which the fee will be put; (c) Shows a reasonable relationship between the use of the fee and the type of development project on which the fee is imposed; (d) Demonstrates a reasonable relationship between the need for the public facilities and the type of development projects on which the fee is imposed; and (e) Demonstrates a reasonable relationship between the amount of the fee and the cost of the public facilities or portion of the public facilities attributable to the development on which the fee is imposed. 2. Fees for Uses Consistent with the Nexus Report. The City Council hereby determines that the fees imposed, pursuant to this resolution shall be used solely to finance the public facilities and/or equipment and park land acquisition described or identified in the respective ordinances and Nexus Report. 3. Approval of Items in the Nexus Report. The City Council has considered the specific public facilities, equipment and park land acquisition cost estimates identified in the Nexus Report and each ordinance thereto and hereby approves such public facilities, equipment and park land acquisition cost and cost estimates and further finds that the cost estimates serve as a reasonable basis for calculating and imposing the development impact fees as set forth in the Nexus Report. 2 11-11M.006/79289 Item 2. - 84 HB -1 12- Resolution No. 2012-23 4. Consistency with General Plan. The City Council finds that the public facilities equipment and park land acquisition and fee methodology identified in the respective ordinances and Nexus Report are consistent with the City"s General Plan and, in particular, those policies that require new development to mitigate its share of the impacts to City infrastructure and. to be fiscally neutral. 5. Differentiation among Public Facilities. The City Council finds that the public facilities identified in the Nexus Report and funded through the collection of development impact fees recommended in the Nexus Report are separate and distinct ftom those public facilities funded through other fees presently imposed and collected by the City. To the extent that other fees imposed and collected by the City, including Specific Plan fees are used to fund the construction of the same public facilities identified in the respective ordinances and Nexus Report, then such other fees shall be a credit against the applicable development impact fees. Notwithstanding the above provision, this resolution shall not be deemed to affect the imposition or collection of the water and sewer connection fees authorized by the Huntington Beach Municipal Code. 6. CEQA Finding. The adoption of the Nexus Report and the increase in development impact fees are not subject to the California Environmental Quality Act in that pursuant to CEQA Guidelines, section 15378(b) (4), the creation of government funding mechanisms which do not involve any commitment to any specific project which may cause a significant effect on the environment, is not defined as a "project" under CEQA. 7. Adoption of Report. The Nexus Report as amended April 27, 2012, including Appendices, is hereby adopted. 8, Fee Imposed. The new Development Impact Fees set by this resolution shall not apply to projects that have received discretionary project entitlement approval on or before June 5, 2012 and the following milestones are met; 1. Project applicant has submitted an approved application for building permits within 180 days after the fee going into effect or no later than February 18, 2013. 2. From the time of initial building permit application, the project makes continued progress toward satisfying plan check comments. 3. Building Permits are issued within 360 days after the fees go into effect An exception to the above milestones is the involvement of an. outside third party regulatory agency. In such cases the 180 days to make building permit application will begin when the developer receives clearance from that agency. The City Manager shall have the authority, in his/her sole discretion, to extend milestone dates for qualifying "grandfathered" projects. All other projects are subject to the fees then in effect. All existing Development Impact Fees remain in effect until final action is taken on this resolution and respective ordinances. In the event any portion of this resolution is held invalid, the previously approved development impact fee shall automatically apply. 9. Timing of Fee. The development impact fees imposed by this resolution shall be paid pursuant to the ordinances or resolution creating each separate fee. Until final action is 3 12-3209.006/79289 HB -113- Item 2. - 85 Resolution No.20I2-23 taken by City Council adopting the ordinances or resolution referenced herein, resolutions 6164. 2006-23, 2000-97, 99-60, 2004-88 and 96-71 shall remain in effect. 10. Amount of Fee. The City Council hereby approves and adopts the Development Impact Fees as set forth in Exhibit "A," attached hereto and incorporated herein as well as Nexus Report Schedules 3.2, 4.3, 5.2, 6.2, 7.1, 8.1, and 8.4. Exhibit A and the Nexus Report sets forth the methodology and aggregate amount imposed as a development impact fee for both residential and nonresidential land uses and also sets forth the breakdown of each development impact fee by type of facility. The amount of the development impact fees excluding traffic impact fees shall be automatically modified annually pursuant to the the percentage of increase or decrease in the Los Angeles-Anaheim-Riverside All Urban Consumer Price Index (CPI) or any relevant successor for the Orange County area, from March to March of the preceding twelve (12) months. Traffic impact fees shall be increased using the Engineering News Record's construction cost index as reported for the twelve month period ending in March of each year. The escalator indices provided herein shall not take effect until March of 2016. 11. Use of fee. The development impact fees shall be solely used for the purposes described in the respective ordinances creating the fees and the Nexus Report. Fees collected pursuant to existing ordinances and resolutions shall be maintained and used exclusively for those purposes and accounts for these fees shall remain. in effect and shall be maintained by the City Manager or his/her designee. Fees collected under any of the categories listed in the Nexus Report may be used to finance the construction or implementation of any public facility listed in those categories to the extent that use of the fees may not exceed the percentage allocated to new development of all of the public facilities listed in the category, or sub-category. 12. Fee Determination by Type of Use. A. Residential Development. Development impact fees for residential development shall be based upon the type of unit constructed. The development impact fee categories as shown in Exhibit A generally correspond to the City's land use designations in the land use element of the City's General Plan. B. Nonresidential Land Uses. Development impact fees for nonresidential land uses shall be based upon the square footage of the building or other measurement detailed in the respective development impact fee ordinances. The development impact fee categories as shown in Exhibit A generally correspond to the City's land use designations in the land use element of the City's General Plan. C. Uses Not Specified. In the event that there are land uses not specified in Exhibit A, the development impact fee for such use shall be determined by the City Manager or 4 t 2-3209.006/79289 Item 2. - 86 HB -114- Resolution No. 2012-23 his/her designee who shall determine such fee based on an analysis of the impacts of the proposed use on public facilities, equipment and/or park land. 13. Prior Resolutions Superseded. As provided herein the development impact fees approved and adopted by this resolution shall supersede and repeal any previously adopted development impact fee resolutions concerning the same, including 6164, 96-7 1, 99-60, 2000-97, 2004-88 and 2006-23, 2002-129, 2004-88. 14. Severability. If any action, subsection, sentence, clause or phrase of this resolution, the Nexus Report, or other attachments thereto, shall be held invalid or unconstitutional by a court of competent jurisdiction, such invalidity shall not affect the validity of the remaining portions of this resolution the Nexus Report, or other attachments thereto or fees levied by this resolution that can be given effect without the invalid provisions or application of fees. In the event any section of this resolution is held invalid the previously adopted affected fees shall be automatically reinstate as if never repealed or modified herein. 15. Effective Date. Consistent with California Government Code section 66017(a), the fees as identified in attached Exhibit "A" adopted by this resolution shall. take effect sixty (60) days following final action taken on the respective ordinances or amendments thereto by the City Council. 16. Appeals. Appeals of any fees, including methodology, use, land valuation etc. created pursuant to this resolution shall be conducted as set forth in. Huntington Beach Municipal Code Chapter 17.73. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the, 8 day of June 9 0 12 Mayor la NDAPPROVED: INITIAL' AND A ROVED: er Deputy City Manager APPROVED AS TO FORM: ^ City Attorney n11 _ 3..Q 5 12-3209.006/79289 HB -115- Item 2. - 87 Exhibit A Exhibit A-3 Aternative Fee Schedule No. 3 Development Impact Fees (Effective 9/2/2012) 30% Circulation Park Land/ System Open Space Law Fire (Streets, & Facilities Enforcement Suppression Signals, Public Library (No Tract Land Use Facilities Facilities Bridges) Facilities Map) Detached Dwelling Units (per Unit) $119 $277 $1,800 $1,091 $6,802 Attached Dwelling Units(per Unit) $245 $115 $1,238 $519 $4,632 Mobile Home Dwelling Units (per Unit) $111 $475 $940 $479 $3,351 Hotel/Motel Lodging Units (per Unit) No Fee No Fee $172/trip $0.04/SF $0.23/SF Resort Lodging Units (per Unit) No Fee No Fee $172/trip $0.04/SF $0.23/SF Commercial/Office Uses(per sq.ft.) $0.312 $0,099 $4.175 No Fee $0.447 Industrial/Manufacturing Uses (per sq. ft.) $0.133 $0.009 $1.279 No Fee $0.393 Development Impact Fees (Effective 9/2/2013) 60% Circulation Park Land/ System Open Space Law Fire (Streets, & Facilities Enforcement Suppression Signals, Public Library (No Tract Land Use Facilities Facilities Bridges) Facilities Map) Detached Dwelling Units (per Unit) $238 $553 $2,092 $1,126 $11,540 Attached Dwelling Units (per Unit) $489 $229 $1,417 $686 $8,576 Mobile Home Dwelling Units (per Unit) $221 $950 $1,094 $588 $6,701 Hotel/Motel Lodging Units (per Unit) No Fee No Fee $172/trip $0.04/SF $0.23/SF Resort Lodging Units (per Unit) No Fee No Fee $172/trip $0.04/SF $0,23/SF Commercial/Office Uses (per sq. ft.) $0.625 $0.197 $4.175 No Fee $0.664 Industrial/Manufacturing Uses (per sq.ft.) $0.266 $0.018 $1.498 No Fee $0.555 Development Impact Fees (Effective 9/2/2014) 90% Circulation Park Land/ System Open Space Law Fire (Streets, & Facilities Enforcement Suppression Signals, Public Library (No Tract Land Use Facilities Facilities Bridges) Facilities Map) Detached Dwelling Units (per Unit) $356 $830 $2,385 $1,160 $16,278 Attached Dwelling Units (per Unit) $734 $344 $1,597 $852 $12,520 Mobile Home Dwelling Units (per Unit) $332 $1,425 $1,248 $697 $10,052 Hotel/Motel Lodging Units (per Unit) No Fee No Fee $172/trip $0.04/SF $0.23/SF Resort Lodging Units (per Unit) No Fee No Fee $172/trip $0.04/SF $0.23/SF Commercial/Office Uses (per sq. ft.) $0.937 $0.296 $4.175 No Fee $0.882 Industrial/Manufacturing Uses (per sq.ft.) $0.399 $0,027 $1,716 No Fee $0.718 Date Printed;5/24/2012,June 4 Resolutlon 306090 HB -1 17- Item 2. - 89 Exhibit A-3 Alternative Fee Schedule No. 3 Schedule of Rates for Traffic Impact Fees (Effective 9/2/2012) Recommended Cost per 30%Increase 1000 sq.fit,dwelling unit Scenario Cost per Adjusted Average Trip-end Additional Cost per or other unit(90%of 1000 sq.ft,dwelling Land Use Trip Ends Distance to Trip Trip Miles Trip Mile original) unit or other unit RESIDENTIAL LAND USES{per Unit Detached Dwelling Unit 8,76 7.91 0.5 34.6 $ 50.22 $ 1,737.61 /Unit $ 1,722.55 /Unit Apartment 6.15 7.9 0.5 24.3 $ 50.22 $ 1,220.35 /Unit $ 1,209.50 /Unit Condominium/Townhouse 5.36 7.9 0.5 21.2 $ 50.22 $ 1,064.66 /Unit $ 1,054.55. /Unit Mobile Home Dwelling 4.57 7.9 0.5 18.1 $ 50.22 $ 908.98 /Unit $ 899.59.. /Unit RESORT/TOURIST(per Unit or Entry Door);: Hotel 6.29 7.6 0.5 23.9 $ 64.34 $ 1,537.73 /Room $ 11218.63 /Room All Suites Hotel 3.77 7.6 0.5 14.3 $ 64.34 $ 920.06 /Room $ 729.93 /Room Motel 4.34 7.61 0.5 16.5 $ 64.34 $ 1,061.61 /Room J,$ 841.02 /Room INDUSTRIAL,(per 1000 SF) General Light Industrial 6.17 9.0 0.5 27.8 $ 64.34 $ 1,788.65 /1,000 sf $ 1,279,46 /1,000 Heavy Industrial 5.97 9.0 0.5 26.9 $ 64.34 $ 1,730.75 /1,000 sf $ 1,238V /1,000 Manufacturing 2.73 9.0 0.5 12.3 $ 64.34 $ 791.38 /1,000 sf $ 566.11 /1,000 Warehousing 4.39 9.0 0.5 19.8 $ 64.34 $ 1,273.93 /1,000 sf $ 910,74I of /1,000 COMMERCIAL(per 1,000 SF) Office Park 7.42 8.8 0.5 32.6 $ 64.34 $ 2,097.48 11,000 sf $ 1,522.61 f,000 Research Park 5.01 8.8 0.5 22.0 $ 64.34 $ 1,415.48 /1,000 sf $ 1,027.85 sf,000 Business Park 9.34 8.8 0.5 41.1 $ 64.34 $ 2,644.37 /1,000 sf $ 1,917.85 sf,000 Bldg.Materials/Lumber 29.35 4.3 0.5 63.1 $ 64.34 $ 4,059.85 /1,000 sf $ 4,059.85 /1,000 Store j Garden Center 23.45 4.3 0.5 50.4 $ 64.34 $ 3,242.74 /1,000 sf $ 3,242.74 f,000 Movie Theater 2.47 4.3 0.5 5.3 $ 64.34 $ 341.00 /1,000 sf $ 341.00 f,000 Church 5.92 4.3 0.5 12.7 $ 64.34 $ 817A2 /1,000 sf $ 817.12 of,000 Medical-Dental Office 22.21 8.8 0.5 97.7 $ 64.34 $ 6,286.02 /1,000 sf $ 4,559.89 f,000 General Office Building 7.16 8,8 0.5 31.5 $ 64.34 $ 2,026.71 /1,000 sf $ 11470.08 f,000 Shopping Center 30.2 4.3 0.5 64.9 $ 64.34 $ 4,175,67 /1,000 sf $ 4,175.67 sf,000 Hospital 11.42 4.3 0.5 24.6 $ 64.34 $ 1,582.76 /1,000 sf $ 1,582.76 f,000 Discount Center 62.93 4.3 0.5 135,3 $ 64.34 $ 8,705.20 /1,000 sf $ 8,705.20 f,000 High-Turnover Restaurant 8.9 4.3 0.5 19.1 $ 64.34 $ 1,228.89 /1,000 sf $ 1,228.89 /1,000 sf Convenience Market 43,57 4.3 0.5 93.7 $ 64.34 $ 6,028,66 /1,000 sf $ 6,028.66 f,000 Office Park 13.97 4.3 0.5 30.0 $ 64.34 $ 1,930,20 /1,000 sf $ 1.930.20 f,000 OTHER(as noted)_ Cemetery 3.07 4.3 0.5 6.6 $ 64.34 $ 424.64 /Acre $ 424.64 /Acre Service Station/Market 107.69 4.3 0.5 231.5 $ 64.34 $ 14,894.71 /Fuel $ 14,894.71 /Fuel av Position Position Service Station w/Car 99,35 4.3 0.5 213.6 $ 64.34 $ 13,743.02 /Fuel $ 13,743.02 /Fuel Wash Position Position Page 2 Item 2. - 90 HB -1 )S- Exhibit A-3 Aternative Fee Schedule No. 3 Schedule of Rates for Traffic Impact Fees (Effective 9/2/2013) Recommended Cost per 60%Increase Scenario 1000 sq.ft, dwelling unit Cost per 1000 sq.ft, Adjusted Average Trip-end Additional Cost per or other unit(90%of dwelling unit or other Land Use Trip Ends Distance to Trip Trip Miles Trip Mile original) unit RESIDENTIAL LAND USES(per Unit) Detached Dwelling Unit 8.76 7,9 0.5 34.6 $ 57.39 $ 1,985.69 /Unit $ 1,938.39 /Unit Apartment 6.15 7-9 0.5 24.3 $ 57.39 $ 1,394.58 /Unit $ 1,361.20 /Unit Condominium/Townho 5.36 7,9 0.5 21.2 $ 57.39 $ 1,216.67 /Unit $ 1,187.17 /Unit use Mobile Home Dwelling 4,57 7.9 0.5 18.1 $ 57.39 $ 1,038.76 /Unit $ 1,013.15 /Unit RESORT/TOURIST`(per Unit or Entry Door) Hotel 1 6.291 7.61 0.51 23.9 $ 64.34 1 $ 1,537.73 1/Room 1 $ 1,355.39. /Room All Suites Hotel 1 3.77 7.6 0.51 14.3 $ 64.34 1 $ 920.06 1!Room 1 $ 811.41 /Room Motel 4,341 7.6 C).51 16.5 $ 64.34 1 $ 1,061.61 1/Room 1 $ 935.56 1 /Room INDUSTRIAL (per.1000 SF) General Light Industrial 6.17 9.0 0.5 27.8 $ 64.34 $ 1,788.65 11,000 sf $ 1,497.69 11,000 sf Heavy Industrial 5.97 9.0 0.5 26.9 $ 64.34 $ 1,730.75 /1,000 sf $ 1,449:18 /1,000 sf Manufacturing 2.73 9.0 0.5 12.3 $ 64.34 $ 791.38 /1,000 sf $ 662.65 /1,000 sf Warehousing 4.39 9.01 0.51 19.8 $ 64,34 $ 1,273.93 /1,000 sf $ 1,066.39 /1,000 sf COMMERCIAL(per 1,000 SF) Office Park 7.421 8.8 0.5 32-6 $ 64,34 $ 2,097.48 /1,000 sf $ 1,768.99 /1,000 sf Research Park 5.01 8.8 0.5 22.0 $ 64.34 $ 1,415A8 11,000 sf $ 1,193.98 /1,000 sf Business Park 9.34 8.8 0.5 41.1 $ 64.34 $ 2,644.37 /1,000 sf $ 2,229.22 /1,000 sf i Bldg. Materials/Lumber 29.35 4.3 0.5 63.1 $ 64.34 $ 4,059.85 /1,000 sf $ 4,059.85 11,000 sf Store Garden Center 23.45 4.3 0.5 50.4 $ 64.34 $ 3,242.74 /1,000 sf $ 3,242.74 11,000 sf Movie Theater 2.47 4.3 0.5 5.3 $ 64.34 $ 341.00 /1,000 sf $ 341,00 /1,000 sf Church 5.92 4.3 0.5 12.7 $ 64.34 $ 817.12 /1,000 sf $ 817.12 11,000 sf Medical-Dental Office 22.21 8.8 0.5 97.7 $ 64.34 $ 6,286.02 /1,000 sf $ 5,299,66 /1,000 sf General Office Building 7,16 8.8 0.5 31.5 $ 64.34 $ 2,026,71 /1,000 sf $ 1,708.63 11,000 sf i Shopping Center 30.21 4.3 0.5 64.9 $ 64.34 $ 4,175.67 11,000 sf $ 4,175.67 11,000 sf Hospital 11,42 4.3 0.5 24.6 $ 64.34 $ 1,582.76 /1,000 sf $ 1,582.76 /1,000 sf Discount Center 62.93 4.3 0.5 135.3 $ 64.34 $ 8,705.20 11,000 sf $ 8,705.20 /1,000 sf High-Turnover 8.9 4.3 0.5 19.1 $ 64.34 $ 1,228.89 /1,000 sf $ 1,228.89 /1,000 sf Restaurant Convenience Market' 43.57 4.31 0.5 93.7 $ 64.34 $ 6,028.66 /1,000 sf $ 6,028.66 /1,000 sf Office Park J 13.971 4.3 C).51 30.0 $ 64,34 $ 1,930 20 /1,000 sf $ 1,930.20 /1,000 sf OTHER(asinoted)_ Cemetery 3.07 4.3 0.5 6.6 $ 64.34 $ 424.64 /Acre $ 424.64 /Acre Service Station/Market 107,69 4.3 0.5 231.5 $ 64,34 $ 14,894.71 /Fuel $ 14,894.71 /Fuel ra Position ice Station w/Car 99,35 4.3 0.5 213.6 $ 64,34 $ 13,743,02 /Fuel $ 13,743.02h Position Position Page 3 H Q -1 19- Item 2. - 91 Exhibit A-3 Aternative Fee Schedule No. 3 Schedule of Rates for Traffic Impact Fees (Effective 9/2/2014) Recommended Cost per Adjusted Average Trip-end to Additional Cost per 1000 sq.ft, dwelling unit or Land Use Trip Ends Distance Trip Trip Miles Trip Mile other unit(90% of original) RESIDENTIAL LAND'USES (per Unit) Detached Dwelling Unit 8.76 7.9 0,5 34.6 $ 64.34 $ 2,226.16 /Unit Apartment 6.15 7.9 0.5 24.3 $ 64.34 $ 1,563.46 /Unit Condom iniu m[Town hou 5.36 7.9 0,5 21.2 $ 64.34 $ 1,364.01 /Unit se Mobile Home Dwelling 4.57 7.9 0.5 18.1 $ 64.34 $ 1,164.55 /Unit RESORT/TOURIST( e'r Unit or Ent Door Hotel 6.29 7.6 0.5 23.9 $ 64.34 $ 1,537.73 /Room All Suites Hotel 3.77 7.6 0.5 14.3 $ 64.34 $ 920.06 /Room Motel 4.34 7.6 0.5 16.5 $ 64.34 $ 1,061.61 /Room INDUSTRIAL ( per 1,0,0.0 SF) General Light Industrial 6.17 9.0 0.5 27.8 $ 64.34 $ 1,788.65 /1,000 sf i i Heavy Industrial 5.97 9.0 0.5 26.9 $ 64.34 $ 1,730.75 /1,000 sf Manufacturing 2.73 9.0 0.5 12.3 $ 64.34 $ 791.38 /1,000 sf Warehousing 4.391 9.01 0.51 19.8 $ 64.34 $ 1,273.93 /1,000 sf COMMERCIAL_AL (Per 1`,000 SF.) Office Park 7.42 8.8 0.5 32.6 $ 64.34 $ 2,097.48 /1,000 sf Research Park 5.01 8.8 0.5 22.0 $ 64.34 $ 1,415.48 /1,000 sf Business Park 9.34 8.8 0.5 41.1 $ 64.34 $ 2,644.37 /1,000 sf Bldg. Materials/Lumber 29.35 4.3 0.5 611 $ 64.34 $ 4,059.85 /1,000 sf Store Garden Center 23.45 4.3 0.5 50.4 $ 64.34 $ 3,242.74 /1,000 sf Movie Theater 2.47 4.3 0.5 5.3 $ 64.34 $ 341.00 /1,000 sf Church 5.92 4.3 0.5 12.7 $ 64.34 $ 817.12 /1,000 sf Medical-Dental Office 22.21 8.8 0.5 97.7 $ 64.34 $ 6,286.02 11,000 sf General Office Building 7.16 8.8 0.5 31.5 $ 64.34 $ 2,026.71 /1,000 sf Shopping Center 30.2 4.3 0.5 64.9 $ 64.34 $ 4.175.67 11,000 sf Hospital 11.42 4.3 0.5 24.6 $ 64.34 $ 1,582.76 /1,000 sf Discount Center 62.93 4.3 0.5 135.3 $ 64.34 $ 8,705.20 /1,000 sf High-Turnover Restaurant 8.9 4.3 0.5 %1 $ 64.34 $ 1,228.89 /1,000 sf Convenience Market 43.57 4.3 0.5 93.7 $ 64.34 $ 6,028.66 /1,000 sf Office Park 13.97 4.31 0.51 30.0 $ 64.34 $ 1,930.20 1 /1,000 sf OTHER(asnoted): Cemetery 3.07 4.3 0.5 6.6 $ 64.34 $ 424.64 (Acre Service Station/Market 107,69 4.3 0,5 231.5 $ 64.34 $ 14,89431 Position Service Station w/Car 99.35 4.3 0.5 213,E $ 64.34 $ 13,743.02 /Fuel Wash Position Page 4 Item 2. - 92 H 13 -120- Res. No. 2012-23 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH I, JOAN L. FLYNN the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on June 18, 2012 by the following vote: AYES: Shaw, Carchio, Bohr, Boardman NOES: Harper, Dwyer, Hansen ABSENT: None ABSTAIN: None Ci y Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California HB -121- Rem 2. - 93