HomeMy WebLinkAboutFiscal Year 2010-2011 Park Impact Fee Report Council/Agency Meeting Held:
Deferred/Continued to:
)kAp ve ❑ Conditionally Approved ❑ Denied City lerl ' Signa ure
Council Meeting Date: April 16, 2012 Department D Number: CS 12-004
CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Paul Emery, Deputy City Manager/ Interim Director of Community
Services
SUBJECT: Receive and File Park Impact Fee Report for FY 2010/11
Statement of Issue:
On November 18, 2002, the City Council approved the establishment of a Park Impact Fee to
be levied on the construction of new floor area for all commercial and industrial development
and all residential development not covered by Quimby fees. State law requires the
preparation of an annual report.
Financial Impact:
Not Applicable
Recommended Action: Motion to:
Receive and file the 230 Park Impact Fee Annual Report for fiscal year 2010/2011.
Alternative Action(s):
Do not receive and file the report and direct staff accordingly.
HB -109- Item 7. - I
REQUEST FOR COUNCIL ACTION
MEETING DATE: 411612012 DEPARTMENT ID NUMBER: CS 12-004
Analysis:
On November 18, 2002, the City Council approved the establishment of a Park Impact Fee
per Section 230.20 of the City's Zoning and Subdivision Ordinance. This fee is imposed on
all residential development not covered by Quimby fees (Section 254 of the City's Zoning
and Subdivision Ordinance) and on the construction of new floor area for all commercial and
industrial development. The purpose of the fee is for the development and rehabilitation of
the City's park and recreational facilities. The fee is based on square footage and is
currently set at $.86 per square foot for new residential and $.23 per square foot for new
commercial and industrial development.
According to the reporting requirements of California Government Code 66006, the city must
prepare an annual report (Attachment 1) describing the fee, the amount of fees collected and
interest earned, and the identification of projects on which the fees are expended. The
report is to be made available to the public within 180 days of the close of the fiscal year.
The code also specifies that the report must be reviewed by the City Council at a regularly
scheduled meeting not less than 15 days following its release to the public. In addition,
notices of the time and place of the meeting are to be mailed to any interested parties who
have filed a written request. The report was released for public review on March 15, 2012
(Attachment 2). No written requests for notification had been received by the City Clerk's
Office at the time the Request for Council Action was prepared and submitted for City
Council consideration.
As shown in Section III of the report, $130,191 in fees were collected during the 2010/2011
fiscal year, an additional $9,620.00 was gained in interest. Expenditures totaled $477,759 for
various park improvements including park leases, contracted professional services, park
rehabilitation projects, youth sports grants, and staffing costs. The fund balance for the Park
Impact Fee, per Zoning and Subdivision Ordinance Section 230.20, is $1,135,410 as of
September 30, 2011.
Environmental Status:
Not Applicable
Strategic Plan Goal:
Improve the City's infrastructure
Attachment(s):
1. Park Impact Fee Annual Report— FY 2010/2011
2. 1 Memo to City Council dated March 15, 2012
Item 7. - 2 HB -110-
ATTACHMENT # 1
230 PARK IMPACT FEE ANNUAL REPORT
FISCAL YEAR 2010-2011
I. BACKGROUND
On November 18, 2002, the City of Huntington Beach passed Emergency Interim
Ordinance No. 3594 pertaining to Section 230.20 of Chapter 230 of Title 23 of
the City's Zoning and Subdivision Ordinance.
The ordinance established a Park Impact Fee to be imposed on the construction
of new floor area for all commercial and industrial development, and all
residential development not covered by Section 254.08 of the Zoning and
Subdivision Ordinance (known as Parkland Dedication pursuant to the Quimby
Act). On December 16, 2002, Emergency Ordinance No. 3596 was also
approved, along with governing Resolution No. 2002-129.
II. REPORTING REQUIREMENTS
State law imposes both annual and five-year reporting requirements as a result
of its collection of Park Impact Fees. The specific elements to be included in the
report include:
• A brief description of the type of fee in the fund account
• The amount of the fee
• The beginning and ending balance
• The amount of fees collected and interest earned
• Identification of each public improvement on which fees are expended
• An identification of the approximate date by which the construction of
public improvements will commence if the local agency determines that
sufficient funds have been collected to complete the financing on an
incomplete building improvement
• A description of each interfund transfer loan made from the fund balance
• The amount of refunds made pursuant to any protests
The annual report is to be made available to the public within 180 days following
the close of the fiscal year. It is also to be reviewed by the City Council no less
than 15 days after the information is made available to the public at its next
regularly scheduled meeting. This year the report is being presented to the City
Council on April 16, 2012.
Fee Description:
As stated in Resolution 2002-129 (Attachment 1), the purpose of the fee is for the
development and rehabilitation of the City's parks and recreational facilities in
order to assure that the policies and standards for park, open space and
recreational facilities contained in the City's General Plan and described in the
City of Huntington Beach Park Strategy and Fee Nexus Study (Dec. 2001) and
1
Item 7. - 4 xB -112-
addendum (Sept. 25, 2002) are met. According to ZSO 254.08 (c), this standard
is five acres for each 1,000 residents.
In addition, Resolution 2004-88, adopted November 15, 2004, further specifies
that Section 230.20 fees must be used for park and recreational facilities and
improvements included in the city's Capital Improvement Program and identified
in the Park Acquisition and Development budget as approved each year by the
City Council.
Fee Amount:
According to.Zoning and Subdivision Ordinance (ZSO) 230.20, the fees are to be
paid and calculated according to a schedule adopted by City Council resolution.
Resolution 2002-129 sets the fee for new residential development at $.86 per
square foot and $.23 per square foot for new commercial and industrial
development. The fees are paid upon issuance of any building permit or prior to
final inspection on new residential development.
Interfund Loans
No park fees were loaned during this reporting period.
Refunds Due to Protests
No refunds were made due to protests during this reporting period.
III. FINANCIAL SUMMARY
Fiscal Year 2010-2011 Revenue
As shown in Attachment 2, the beginning fund balance as of September 30,
2010, was $1,473,358. During Fiscal Year 2010-2011, $130,191 in fees was
collected. This represents a 23% decrease from Fiscal Year 2009-10 when
$169,181 was collected.
Fiscal Year 2010-2011 Expenditures
As also shown in Attachment 2, $477,759 was expended for various park
improvement projects, park leases, contracted/professional services, staffing,
and youth sports grants to community organizations. The 2010-11 Fiscal Year
end fund balance is $1,135,411.
2
HB -113- Item 7. - 5
ATTACHMENT 1
See p2D 3S9(�
RESOLUTION NO. 2002-129 (Repeals Res 6226)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF HUNTINGTON BEACH RELATING TO THE PAYMENT OF A PARK
FEE PURSUANT TO SECTION 230.20 OF THE HUNTINGTON BEACH ZONING AND
SUBDIVISION ORDINANCE
WHEREAS, Section 230.20 of Chapter 230 of Title 23 of the City of Huntington Beach
Zoning and Subdivision Ordinance("City Zoning and Subdivision Code")requires all new
commercial and industrial development and all new residential development not covered by Chapter
254 of Title 25, of the City Zoning and Subdivision Code, except for mobile home parks,to pay a
park in-lieu fee in accordance with the requirements of Chapter 254 and calculated according to a
schedule adopted by City Council resolution;and
The City Council has reviewed a report dated December 2001 entitled"City of Huntington
Beach Park Strategy and Fee Nexus Study"(hereinafter"Park Fee Study")and an addendum
thereto dated September 25,2002 (hereinafter"Addendum"), which evaluated the impacts of
contemplated future development on existing park and recreational facilities within the City of
Huntington Beach. The Park Fee Study and Addendum include an analysis of the need for new
park and recreational facilities and improvements required by new development and sets forth the
relationship between new development, the needed facilities, and the estimated costs of those
improvements; and
The Park Fee Study and Addendum have been available for public inspection and review
prior to consideration of this resolution by the City Council after a public hearing.
THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH DOES HEREBY
FIND,RESOLVE AND DETERMINE AS FOLLOWS:
SECTION 1. Findings. After review of the Park Fee Study and Addendum, other staff
reports, and the testimony and information received on this matter,the City Council makes the
following findings:
1. That the purpose of the fee to be paid pursuant to Secton 230.20 of Chapter 230 of
Title 23 of the City Zoning and Subdivision Code("Fee")is for the development and
rehabiliation of the City's parks and recreational facilities in order to assure that the
policies and standards for park, open space and recreational facilities contained in the
City's General Plan and described in the Park Fee Study are met.
2. That additional park and recreational facilities will be needed to serve commercial,
industrial and residential development within the City subject to Section 230.20 of
the City's Zoning and Subdivision Ordinance in order to meet the policies and goals
contained in the City's General PIan.
3. That the Fee imposed as a condition of development approval in connection with the
construction of new floor area for all commercial, industrial and residential
G:UtESOLUM2002\in lieu panic-clean.doc I
Item 7. - 6 HB -114-
development projects subject to Section 230.20 of the City Zoning and Subdivision
Code, shall be used to develop and rehabilitate park and recreational facilities within
the City to assure the provision of park land and recreational facilities needed to
serve such development at established City service levels standards within a
reasonable period of time.
4. That the Fee hereby imposed is reasonably related to the impacts of new residential,
commercial and industrial development because, as determined by the Park Fee
Study and the Addendum,future residents will benefit from appropriately planned,
and constructed park and recreational facilities. The Fee is reasonably related to the
impacts of development on the City's park land and recreational facilities because,
and demonstrated by the Fee Study and the Addendum,the type of development
subject to the Fee generates increased use of park and recreational facilities
throughout the City which necessitates development and rehabiliation of the City's
existing park and recreational facilties and acquisition of additional facilities. The
Fee proceeds will be used to mitigate these impacts.
5. That there is a reasonable relationship between the amount of the Fee and the portion
of the cost of needed park and recreational facilities and/or improvements
attributable to new development in the City because the amount of the Fee is based
upon the square footage of the proposed development.
6. The fees collected pursuant to this Resolution shall be transferred for deposit into a
separate fund from any fees or revenues of the city and all such funds shall be
accounted for. The account shall be an interest bearing account and all interest
received shall be credited to such account and used solely for purposes of that
account.The City shall commit or expend park fees deposited to the account within
five years from the date of deposit.
SECTION 2. Definitions. For the purposes of this Chapter,the following terms shall be
defined as follows:
(a) "New development"shall mean the construction of new floor area for a residential,
commercial or industrial project;
(b) "Commercial or Industrial Development Project"shall mean the construction of New Floor
area on a lot in any non-residential zoning district of the City;
(c) "Floor Area"shall mean the area of all floors and levels as defined in the Huntington Beach
Building Code;
(d) "Residential Development Project"shall mean the construction of new Floor Area on a lot
in any residential zoning district of the City.
SECTION 3. Fee. For new residential development,the Park Fee shall be equal to$0.86
per square foot. For each new commercial development,the fee shall be$ 0.23 per square foot.
For each new industrial development,the fee shall be $ 0.23 per square foot.
G:\KESOLUTN\2002\in lieu park-clean.doc 2
HB -115- Item 7. - 7
SECTION 4. Payment of Fee. The Park Fee shall be charged upon issuance of any
Building Permit. A Park Fee imposed on new commercial or industrial development shall be paid
upon issuance of a Building Permit. A Park Fee imposed on new residential development shall be
paid prior to the final inspection.
SECTION 5. Use of Fee. All fees collected pursuant to Section 230.20 of the City Zoning
and Subdivision Code shall be used to finance the park and recreational facilities and improvements
identified in the"Park Development and Rehabilitation Capital Improvement Plan"as adopted by
the City Council on an annual basis.
SECTION 6. Exemptions. The following development shall be exempt from the payment
of fees pursuant to this Section:
1. Development of real property into housing units that are either rented, leased, sold,
conveyed or otherwise transferred,at a rental price or purchase price 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 Code or"very low income
household"as defined in Section 50105 of the California Health and Safety Code,
and provided that the applicant executes an agreement, in the form of a deed
restiction,second trust deed, or other legally binding and enforceable document
acceptable to the City Attorney and binding on the owner and any successor-in-
interest to the real property being developed, guaranteeing that all of the units
developed on the real property shall be maintained for lower and very low income
households whether as units for rent or for sale or transfer, for the lesser of a period
of thirty years or the actual life or existence of the structure, including any addition,
renovation or remodeling thereto.
2. Reconstruction of any residential,commercial, or industrial development project tht
is damaged or destroyed as a result of a natural disaster, as declared by the Governor.
Any reconstruction of real property, or portion thereof, which is not substantially
equivalent to the damaged or destroyed property, shall be deemed to be new
construction and only that portion which exceeds substantially equivalent
construction to be assesed a fee.
SECTION 7. California Environmental Quality Act. The City Council hereby finds that
the adoption of this Resolution is exempt from the California Environmental Quality Act("CEQA")
under Section 15273(a)(4)of the California Code of Regulations,commonly known as the CEQA
Guidelines. The City Council finds that this exemption applies because there is no reasonable
possibility that the modification of the parkland in-lieu fee could negatively affect the physical
environment. To the contrary,the Fees will be collected to mitigate the environmental impacts of
new development on the City's park and recreational facilities. Any environmental impacts
associated with specific projects that may be undertaken with Fee proceeds will be assessed as each
project is formulated. The City Council also hereby finds that the adoption of this Resolution is
exempt from CEQA pursuant to the Supplemental Environmental Categorical Exemptions adopted
the City Council pursuant to Resolution No.4501, which provides that minor amendments to
zoning ordinances that do not change the development standards intensity or density are exempt as a
Class XX exemption.
GARESOLUT(V aOMin lieu pa&-clean.doc 3
Item 7. - 8 H13 -116-
SECTION 8. Effective Date. This Resolution shall take effect immediately.
SECTION 9. Resolution No. 6226 is hereby repealed.
SECTION 10. The Park Fee Study and the Addendum are hereby approved and adopted.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular
meeting thereof held on the 16th day of December ,2002.
ATTEST: /
rdla
City Clerk Mayor
REVIEWED AND APPROVED: APPROVED AS TO FORM:
City A nistrator Ci A e �t
INITIATED AND APPROVED:
(��_ 6 �Ex//,t
"Dir to Community S ices
GARESOLUTNUDOZin lieu park-clem.doc 4
HB -117- Item 7. - 9
Res. No. 2002-129
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, CONNIE BROCKWAY, the duly elected, qualified City Clerk
of the City of Huntington Beach, and ex-officio Clerk of the City Council of
said City, do hereby certify that the whole number of members of the City
Council of the City of Huntington Beach is seven; that the foregoing resolution
was passed and adopted by the affirmative vote of at least a majority of all the
members of said City Council at an regular meeting thereof held on the
16th day of December 2002 by the following vote:
AYES: Green, Sullivan, Boardman, Cook, Houchen, Hardy, Houchen
NOES: None
ABSENT: None
ABSTAIN: None
v
City Clerk and ex-officio CI rk of the
City Council of the City of
Huntington Beach, California
Item 7. - 10 HB -1 1 S-
OVERVIEW ATTACHMENT 2
230 Park Impact Fee
Annual Financial Summary Statement
for Fiscal Year 2010-11
Fund Balance 9/30/10 1,473,358
Revenue FY 2010-2011
Fees 130,191
Interest 9,620
Revenue Total 139,811
Expenditures FY 2010-2011
Park Improvements (A) 223,959
Park Leases/Equipment Rental 5,951
Professional/Contracted Services (B) 89,389
Youth Sports Grant Expenditures 95,905
Staffing 62,555
Expenditure Total 477,759
Fund Balance 9130111 $1,135,410
A) Construction of 8th Field at Huntington Central Park Sports Complex
B) Professional design/landscape architect services for Bartlett, Edison Park Reconfiguration, and
Harmony Cove Channel
HB -119- Item 7. - 11
ATTACHMENT #2
CITY OF HUNTINGTON BEACH
Inter Office Communication
Community Services Department
TO: Honorable Mayor and City Council Members
VIA: Fred A. Wilson, City Administrator
FROM: Paul Emery, Deputy City Administrator/ Community Services to
DATE: March 15, 2012
SUBJECT: RELEASE OF 230 PARK FEE ANNUAL REPORT FOR FY 2010-2011
On November 18, 2002, the City Council approved the establishment of a Park Impact
Fee per Section 230.20 of the City's Zoning and Subdivision Ordinance. This fee is
imposed on the construction of new floor area for all commercial and industrial
development, and all residential development not covered by Quimby fees (Section 254
of the City's Zoning and Subdivision Ordinance).
According to reporting requirements of California Government Code 66006, the City
must prepare an annual report of these fees and make the report available to the public
within 180 days of the close of the fiscal year. The Code also specifies that the report
must be reviewed by the City Council not less than 15 days following its release to the
public.
The annual report for fiscal year 2010-2011 is attached for your preliminary review. It
will be officially transmitted for approval at the April 16, 2012, City Council meeting. By
way of this transmittal, I am releasing this report for public review. Please feel free to
contact me should you have any questions regarding the attached information.
C. Jennifer McGrath, City Attorney
Joan Flynn, City Clerk
Attachment:
230 Park Impact Fee Annual Report— Fiscal Year 2010-2011
xB -121- Item 7. - 13