HomeMy WebLinkAboutReceive and File 230 Park Impact Fee Annual Report for Fisca h t" r y
2006 : ; 2 2 A", 11:
Council/Agency Meeting Held: ,� G ' ' ' `'` ~�`
Deferred/Continued to:
Approved ❑ Conditionally Approved ❑ Denied Cle 's S ature
Council Meeting Date: 4/3/2006 Department ID Number: CS 2006-04
CITY OF HUNTINGTON BEACH
REQUEST FOR COUNCIL ACTION
SUBMITTED TO: HONORABLE MAYOR AND CITY COUN IL MEMBERS
C�.e 0
SUBMITTED BY: PENELOPE C LBRET -GRAFT, CITY A MINISTRATOR
PREPARED BY: JIM B. ENGLE, DIRECTOR, COMMUNITY SERVIC S
SUBJECT: RECEIVE AND FILE 230 PARK IMPACT FEE ANNUAL REPORT
FOR FY 2004-05
Statement of Issue,Funding Source, Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s)
Statement of Issue:
On November 18, 2002, City Council approved the establishment of a Park Impact Fee to be
levied on the construction of new floor area for all commercial and industrial development,
and all residential development not covered by Quimby fees. State law requires the
preparation of an annual report.
Funding Source: Not applicable.
Recommended Action: Motion to:
Receive and file the 230 Park Impact Fee Annual Report for fiscal year 2004-05
Alternative Action(s):
Modify report, and direct staff accordingly.
REQUEST FOR COUNCIL ACTION
MEETING DATE: 4/312006 DEPARTMENT ID NUMBER: CS 2006-04
Analysis:
On November 18, 2002, City Council approved the establishment of a Park Impact Fee per
Section 230.20 of the City's Zoning and Subdivision Ordinance. This fee is imposed on the
construction of new floor area for all commercial and industrial development, and all
residential development not covered by Quimby fees (Section 254 of the City's Zoning and
Subdivision Ordinance). The purpose of the fee is for the development and rehabilitation of
the city's park and recreational facilities. The fee is based on square footage and is currently
set at $.86 per square foot for new residential and $.23 per square foot for new commercial
and industrial development.
According to the reporting requirements of California Government Code 66006, the city must
prepare an annual report (Attachment 1) describing the fee, the amount of fees collected and
interest earned, and the identification of projects on which the fees are expended. The report
is to be made available to the public within 180 days of the close of the fiscal year. The code
also specifies that the report must be reviewed by City Council at a regularly scheduled
meeting not less than 15 days following its release to the public. In addition, notices of the
time and place of the meeting are to be mailed to any interested parties who have filed a
written request. The report was released for public review on March 15, 2006 (Attachment
2). No written requests for notification have been received by the City Clerk's Office.
As shown in Section III of the report, $697,661 in fees was collected during the 2004-05 fiscal
year, plus an additional $40,501 in interest. Expenditures totaled $216,292 for various park
improvements including park leases, contracted professional services, park rehabilitation
projects, youth sports grants, and staffing costs.
Environmental Status:
Attachment(s):
City Clerk's
Page Number No. Description
1. Park Impact Fee Annual Report— FY 2004-05
2. Memorandum dated March 15, 2006
G:1RCA12006106-004 Receive and File FY 04-05 Park Impact Fee Annual Report.doc -2-
3/15/2006 1:09 PM
ATTACHMENT # 1
230 PARK IMPACT FEE ANNUAL REPORT
FISCAL YEAR 2004-2005
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 3, 2006.
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
I
contained in the City's General Plan and described in the City of Huntington Beach Park
Strategy and Fee Nexus Study(Dec. 2001) and addendum(Sept. 25, 2002) are met.
According to ZSO 254.08 (c), this standard is five acres for each 1,000 residents.
In addition, Resolution 2004-88, adopted November 15, 2004, further specifies that
Section 230.20 fees must be used to finance park and recreational facilities and
improvements included in the city's Capital Improvement Program and identified in the
Park Acquisition and Development budget as approved each year by the City Council.
Fee Amount:
According to Zoning and Subdivision Ordinance (ZSO) 230.20, the fees are to be paid
and calculated according to a schedule adopted by City Council resolution. Resolution
2002-129 sets the fee for new residential development at $.86 per square foot and $.23
per square foot for new commercial and industrial development. The fees are paid upon
issuance of any building permit or prior to final inspection on new residential
development.
Interfund Loans
No park fees were loaned during this reporting period.
Refunds Due to Protests
No refunds were made due to protests during this reporting period.
III. FINANCIAL SUMMARY
Fiscal Year 2004-05 Revenue
As shown in Attachment 2, the beginning fund balance as of September 30, 2004, was
$903,347. During fiscal year 2004-05, $697,661 in fees were collected, plus $40,501 in
interest, for a total revenue of$738,162.
Fiscal Year 2004-05 Expenditures
As also shown in Attachment 2, $216,292 was expended for various park improvement
projects and staffing, including park leases, contracted/professional services, park
rehabilitation, and youth sports grants to community organizations.
2
Attachment 1
RESOLUTION NO. 2002-12 (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 ZONINGAND.
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 xesidenti 1.0evelopment not covered by Chapter
254:of Title 25,of the City Zoning and Subdivision Code,except for mobile home parks,to pay ii
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
Q 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:
L. That.the purpose of the fee to.,be.paid.pursuant to Secton 230.20.0 Chapter 23.0 of
Title 23'of the City Zonif'
.. . Subdivigio ode ("Fee").is for the developmerlt*and
rehabiliation of the City's parks.and recreational facilifies in.order to assure-thafthe
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 Plan.
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
GARESOLUM00211n lieu park-clean.doc 1
a
• 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. t the.Fee-hereby iknposed'ls'reasonablyrelaled to the impacts;of new:residetitial,
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.inta:a
separate fund from aMy fees or revenues.of the city.and:all such. ►cls shall.be :..,.
accounted for. The abebunt shift be an interest:bet ft account ancY 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 loi iri any non-residential.zoning,district,of the City;
(c) "Floor Area"shall mean the area of all floors and levels as defined in the Hunting7<on 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.
GARESOLU11V OOZIn lieu pwk-clean.doc 2
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. .Al,I fees collected pursuant to Section.230.20-of the.City2onitig.
slid Subdivnision Code.shall be.used;.to finance"the park and reereational`;facilities:and imprgvenients
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 Qn the real property.shall be maintained for.lowe�r.and-.very low income-
households whether as units for rent or' for sale or transfer,for the lesser ofa 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 Califoiaiia)✓nvironmental`Quality_A�t.(4`CEQA")
under Section' I5273(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.
GARESOLUTM20021in lieu park-clm.doc 3
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'hdreby,.appro�red 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:
City Clerk Mayor
REVIEWED AND APPROVED: APPROVED AS TO FORM:
City ZM7�Ad ator Ci A o e .a '`-
--a ,
INITIATED AND.APPROVED:
�" Dir to Community S6hices
GAPMOLUTN12002\in lieu pe*.clew.doc 4
ATTACHMENT 2
230 Park Impact Fee Annual Financial Summary Statement
11/19/02 to 9/30/05
f t 1011I04 9/30/05`
Actrvit _ r :.11/19102 __.9/30/03 10/1/03=9/30/04 _ a
Prior Fiscal Year Fund Balance $ - $ 669,836.70 $ 903,347.08
Fiscal Year Revenues
Fees 657,803.00 639,841.50 697,661.21
Interest 12,033.70 18,887.93 40,501.15
Subtotall $ 669,836.70 1 $ 658,729.43 $ 738,162.36
Fiscal Year Expenses I - 1 425,219.051 216,292.87
Fund Balance End of Year 1 $ 669,836.70 1 903,347.08 1,425,216.57
Fiscal Year 2004-05 Expenditures:
Park Leases/Equipment Rental $ 12,137.30
Contracted/Professional Services $ 14,802.23
Park Rehabilitation/Repairs $ 10,167.58
Youth Sports Grant Awards $ 118,815.02
Staffing $ 60,370.74
$ 216,292.87
ATTACHMENT #2
0
CITY OF HUNTINGTON BEACH
HUNTINGTONBEACH Community Services Department
To: Honorable Mayor and City Council Members
Via: Penelope Culbreth-Graft, City Administrator
From: Jim B. Engle, Director of Community Servi es
Date: March 15, 2006
Subject: RELEASE OF 230 PARK FEE ANNUAL REPORT FOR FY 2004-05
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 2004-05 is attached for your preliminary review.
It will be officially transmitted for approval at the April 3, 2006, 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
JBE:ek
Attachment
RCA ROUTING SHEET
INITIATING DEPARTMENT: Community Services
SUBJECT: Receive and File FY 04-05 230 Annual Park Fee Report
COUNCIL MEETING DATE: April 3, 2006
RCA ATTACHMENTS STATUS
Ordinance (w/exhibits & legislative draft if applicable) Attached ❑
Not Applicable
Resolution (w/exhibits & legislative draft if applicable) Attached ❑
Not Applicable
Tract Map, Location Map and/or other Exhibits Attached ❑
Not Ap licable
Contract/Agreement (w/exhibits if applicable) Attached ❑
(Signed in full by the City Attorney) Not Applicable
Subleases, Third Party Agreements, etc. Attached
tt Applicable
(Approved as to form by City Attorney)
Not Certificates of Insurance (Approved by the City Attorney) Attached ❑
Not Applicable
Fiscal Impact Statement (Unbudget, over $5,000) Attached ❑
Not Applicable
Bonds (If applicable) Attached ❑
Not Ap licable
Staff Report (If applicable) Attached ❑
Not Ap licable
Commission, Board or Committee Report (If applicable) Attached ❑
Not Ap licable
Findings/Conditions for Approval and/or Denial Attached ❑
Not Applicable
EXPLANATION FOR MISSING ATTACHMENTS
REVIEWED RETURNED FORWARDED
Administrative Staff r'
Assistant City Administrator Initial )
City Administrator Initial ( }
City Clerk )
EXPLANATION FOR RETURN OF ITEM:
Only)(Below Space For City Clerk's Use
RCA Author: kuhnke