HomeMy WebLinkAboutOrdinance 3827 temporarily superseding certain City municipa (2) Huntington Beach Independent has been adjudged a newspaper of general
circulation in Huntington Beach and Orange County by Decree of the Superior ---;
Court of Orange County,State of California,under date of Aug.24, 1994,case CITY OF
A50479. HUNTINGTON BEACH
j. LEGAL NOTICE
ORDINANCE NO.'3827.1
r�OOF OF , Adopted City
Council
cil on
City Council on. i
MARCH 16,2009
P1Ti T1Q"LICATION7 "AN ORDINANCE OF
41„J i jL 1`� THE CITY OOF RDINANCE
'HUNTING-
TON TON BEACH TEMPORAR-!
ILY-SUPERSEDINGCER-I
STATE
TAIN CITY MUNICIPALI
STA 1 E OF CALIFORNIA ) ANE ZONING CODE PRO-I
VISIONS RELATING TO1
THE REQUIRED TIME OF
PAYMENT OF SPECIFIC
DEVELOPMENT IMPACT,
T�Trg� y� A �T ) SS. FEES"
COUNTY OF ®1ldt�l�lOE ) SYNOPSIS:
RESIDENTIAL DEVEL=
OPMENT THROUGHOUT,
THE NATION IS EXPER-
IENCING A SLOWDOWN..{
am the Citizen of the United States and a THE BUILDING INDUS-
TRY` ASSOCIATION Of_i
resident of the County aforesaid; I am over (BIAOC)IS REQUESTING i
the age of eighteen ears, and not a art THAT ORANGE COUNTY 1
g g y party CITIES'ADOPT AN "ECO-I
to or interested in the below entitled matter. N HEREOMIC DEVELOP-!
WHEREBY DEVELOP-!
am a principal clerk of the HUNTINGTON MENT IMPACT FEES]
h p (DIF) WOULD BE COL-�
er FINAL
BEACH INDEPENDENT, a newspaper of PRIOR C THE1
p p FINAL PRIOR
eneral circulation, printed and published in RATHER THAN AT A
g POINT PRIOR TO CON-I
STRUCTION.BIAOC CON-
the City of Huntington Beach, County of TENDS THAT HOMEBUIL
REALIZE
Orange, State of California, and the IDGNIFICANTERSDBENEFITSi
IF FEES ARE DEFERRED
attached Notice is a true and complete copy UNTIL UNITS ARE READY I
FOR OCCUPANCY, IT IS
as was printed and published on the THEIR ASSERTION THAT
FEES WOULD
following date(s). FREE DEFERI NG CAPITAL FOR
CONSTRUCTION START-
UP DURING THE'CUR-
RENT ECONOMIC DOWN
T U R N : T H U S ,
DEVELOPERS WOULD BE
ABLE TO PAY THE`REQ
UISITE FEES AT THE
END OF A PROJECT'S
CONSTRUCTION CYCLE
DUE TO CASH FLOW-}
ERATIOMarch 26, 2009 P O TIDE N T IlA LAND
Y
STRONGER ECONOMY.,
LOCAL -JURISDICTIONS
THAT HAVE ADOPTED
SIMILAR FEE DEFERRAL
PROGRAMS INCLUDE'
THE CITY OF IRVINE,
THE CITY OF ORANGE,J
AND THE COUNTY] OF 4
-ORANGE.
PASSED AND; j
ADOPTED by the City 1
i declare, under penalty of perjury, that the Council of the City of
Huntington Beach at a
foregoing is true and correct. 'regular meeting held
March 16, 2009 by the.,
following roll tali vote:,
AYES: Carchio, Dwyer,e
Green,. Bohr, Coerper,j
Hardy,Hansen
Executed on March 26, 2009 NOES:None
at Costa Mesa, California ABSTAIN:None
ABSENT:None THE FULL TEXT OF THE `I
ORDINANCE IS-AVAIL- :
ABLE IN THE CITY
CLERK'S OFFICE.
/ This,ordinance is effec-
tive 30' days, after'
/i CCC adoption.'
CITY OF
S lg natu r HUNTINGTON BEACH
2000 MAIN STREET
HUNTINGTON BEACH,
CA 92648
.714-536-5227" _s
JOAN L.FLYNN,
CITY CLERK
Published Huntington{
Beach Independent
March 26,2009 034-5001
eJ
om'/IAWo �
Council/Agency Meeting Held: -1 2X
Deferred/Continued tom C7 /E]� -3
N7—daq
]Ap oved ❑ Conditionally Approved ❑ Denied City CI rk's Vgnatur
Council Meeting Date: 3/2/2009 Department ID Number: PL09-04
CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: HONORABLE MAYOR AND CITY COUN L MEMBERS
SUBMITTED BY: FRED A. WILSON, CITY ADMINIST
BOB HALL, DEPUTY CITY ADMINISTRATOR �l
PREPARED BY: ROSS CRAMMER, DIRECTOR OF BUILDING & SAFETY
YI—
JIM ENGLE, DIRECTOR OF COMMUNITY SERVICES VA&
SCOTT HESS, DIRECTOR OF PLANNINCh�tj i3
TRAVIS HOPKINS, DIRECTOR OF PUBLIC WORK
SUBJECT: ADOPTION OF AN ORDINANCE DEFERRING CERTAIN
DEVELOPMENT IMPACT FEES
Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s)
Statement of Issue:
Adoption of this ordinance would defer the collection of payment of certain Development
Impact Fees on residential developments for one year in order to help stimulate the local
building economy.
Funding Source:
Not applicable. However, there would be some short term revenue loss due to loss of
interest from the deferral of these fees.
Recommended Action: Motion to:
"Adopt ordinance 3827 , an ordinance of the City of Huntington Beach temporarily
superseding certain city municipal and zoning code provisions relating to the required.time of
payment of specific development impact fees."
Alternative Action(s):
1. "Deny ordinance 3827 , an ordinance of the City of Huntington Beach temporarily
superseding certain city municipal and zoning code provisions relating to the required time of
payment of specific development impact fees, deferring collection of certain development
impact fees."
REQUEST FOR CITY COUNCIL ACTION
MEETING DATE: 3/2/2009 DEPARTMENT ID NUMBER: PL09-04
2. "Continue ordinance 3827 , an ordinance of the City of Huntington Beach temporarily
superseding certain city municipal and zoning code provisions relating to the required time of
payment of specific development impact fees, deferring collection of certain development
impact fees," and direct staff accordingly.
Analysis:
At the February 2, 2009 City Council meeting, staff brought forth an ordinance to defer
development impact fees for residential developments of 25 or fewer units. Council directed
staff to continue the ordinance and revise it to apply to all residential development projects.
Residential development throughout the nation is experiencing a slowdown. The Building
Industry Association of Orange County (BIAOC) is requesting that Orange County cities adopt
an "Economic Stimulus" whereby Development Impact Fees would be collected prior to the
final inspection rather than at a point prior to construction. BIAOC contends that
homebuilders would realize significant benefits if fees are deferred until units are ready for
occupancy. It is their assertion that deferring fees would free capital for construction start-up
during the current economic downturn. Thus, developers would be able to pay the requisite
fees at the end of a project's construction cycle due to cash flow considerations and a
potentially stronger economy. Local jurisdictions that have adopted similar fee deferral
programs include the City of Irvine, the City of Orange,and the County of Orange.
Development Impact Fees (DIF) are assessed on new projects to fairly mitigate the impacts
to city infrastructure and services created by the construction of new commercial, industrial
and residential projects by providing funding for both new infrastructure and improvements to
existing infrastructure. The City assesses the following impact fees:
• Library Development
• Library Enrichment
• Traffic Impact
• Sewer Connection
• Drainage
• Water Capital
• Affordable Housing
• Park and Recreation
These fees are established and collected pursuant to the Huntington Beach Municipal Code
and Zoning and Subdivision Ordinance.
Staff is bringing forth for Council consideration deferral of DIF for residential projects. The
fees that would be covered by this ordinance are:
• Parks and Recreation
• Library Enrichment
• Drainage Fee
-2- 2/12/2009 9:33 AM
REQUEST FOR CITY COUNCIL ACTION
MEETING DATE: 3/2/2009 DEPARTMENT ID NUMBER: P(I 09-04
• Affordable Housing in-lieu fee
® Sewer (exclusive of the Orange County Sanitation District fee)
Traffic Impact Fees and Library Development Fees are payable prior to the final inspection,
and thus, a deferral would be unnecessary. Fees would not be collected until the final
inspection of residential units. The ordinance would go into effect 30 days after passage by
the City Council and would be in effect for one year unless extended. The net impact of this
ordinance is difficult to estimate. The deferral of the collection of these fees would result in a
short term loss of interest as well as affect cash flow; however, all deferred fees will
ultimately be received. Conversely, additional revenue could be received from development
impact fees and property taxes paid for new homes that would otherwise not have started
without the deferral of the development impact fee.
Additionally, one program in the City's adopted Housing Element would allow developments
with projects containing a minimum of 49 percent affordable housing units to defer payment
of development impact fees until prior to the final inspection. Although this ordinance
encompasses all residential projects, not just affordable projects, implementation of the
ordinance would allow the City to take credit for meeting its housing goals.
Park and Recreation fees for projects that require a Tentative Tract Map are calculated
based on appraised land value. If collection of this fee is deferred, it is recommended that
the land value be appraised at the time that the map is recorded.
As a condition of deferment, applicants for projects over 25 units would need to submit a
letter of agreement secured by an irrevocable letter of credit prior to the issuance of building
permits in order to guarantee payment from a third party in the event of a bankruptcy. As an
alternative, the applicant could record a contract that constitutes a lien. Projects that have
filed a tract map or obtained grading permits prior to this ordinance taking effect are not
eligible to defer the fees, preventing projects that have paid or obligated their fees from
retroactively seeking deferral or reimbursement of these monies.
Strategic Plan Goal:
F-2 Fully understand the financial implications of financial decisions before they are
made, and recognize and disclose fiscal impacts of the pension crisis. Adoption of
this ordinance could result in a short term reduction in cash flow, but ultimately, it is
the intent of this measure to increase revenues from development impact fees and
property taxes paid for new homes that would otherwise not have started without the
deferral of the development impact fee.
Environmental Status:
Projects over which public agencies exercise ministerial authority, such as this agreement
contracting for preparation of environmental documentation, are categorically exempt from
the California Environmental Quality Act pursuant to Section 15300.1.
-3- 2/19/2009 9:41 AM
REQUEST FOR CITY COUNCIL ACTION
MEETING ®ATE: 3/2/2009 DEPARTMENT I® NUMBER: PL09-04
Attachment(s):
pq
1. Ordinance No. 3827
2. Letter From Building Industry Association of Southern California
-4- 2/12/2009 9:33 AM
ATTACHMENT # lL]j
ORDINANCE NO. 3827
AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH
TEMPORARILY SUPERSEDING CERTAIN CITY MUNICIPAL AND
ZONING CODE PROVISIONS RELATING TO THE REQUIRED TIME
OF PAYMENT OF SPECIFIC DEVELOPMENT IMPACT FEES
WHEREAS, the City Council of the City of Huntington Beach has adopted certain fees and
charges relating to mitigation of the impact of new residential development upon City
infrastructure, such as roadways and parks, and to provide for affordable housing by the adoption of
those certain ordinances hereinafter specified and enumerated in Section 2 of this ordinance
(hereinafter collectively the "Development Impact Fees"); and
Pursuant to the provisions of the Huntington Beach Municipal Code and the Huntington
Beach Zoning and Subdivision Ordinance, said Development Impact Fees are currently required to
be paid by the developers of new residential units at the time of issuance of building permits for
construction of such residential units; and
Due to recent changes in economic conditions relating to the housing market throughout the
nation, including, in the City of Huntington Beach, construction of many residential projects
heretofore approved, or in the process of being approved, by the City of Huntington Beach have
been deferred by the owners and developers of such projects due to such economic conditions; and
The City of Huntington Beach relies on new residential development in the City to stimulate
the local economy and provide direct and indirect benefits to the City and its residents and
businesses by creating construction jobs, new market-rate and affordable housing units and new tax
bases and revenues to the community; and
It is therefore in the public interest and to the public benefit for the City Council to stimulate
and encourage new residential development in the City of Huntington Beach by the adoption of an
ordinance that temporarily defers the payment of certain Development Impact Fees,
NOW, THEREFORE,THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH
DOES HEREBY ORDAIN AS FOLLOWS:
Section 1. The City Council does hereby adopt the measures hereinafter set forth in this
ordinance which shall be known and referred to as the Development Impact Fee Deferral Program
for New Residential Development.
Section 2. Notwithstanding any provision of any other ordinance or resolution
heretofore adopted to the contrary, the payment of the following specific development impact fees
for construction (excluding remodels) of new residential development projects in the City of
Huntington Beach shall be deferred until, and collection thereof by the responsible City agency,
department, official or employee shall be made prior to final inspection for such residential units by
the City of Huntington Beach:
1. Park and recreation fee required pursuant to HBZSO Section 254.08.(1).
2. Library Development Fee required pursuant to HBMC Section 17.66.050.
08-1791M2/31029 1
Ordinance No. 3827
3. Traffic Impact Fee required pursuant to HBMC Section 17.65.070.
4. Sewer Impact Fee required pursuant to HBMC Section 14.36.090.
5. Affordable housing in-lieu fee required pursuant to HBZSO 230.26.C.3.
6. Drainage Fee required pursuant to HBMC Section 14.48.050.
7. Library Enhancement Fee required pursuant to HBMC Chapter 3.40.
8. Park Acquisition and Development Fee required by Ordinance 3596 and Resolution
2002-129.
Section 3. Final inspection by the City of Huntington Beach of Qualified Projects shall
not occur until payment of such development impact fees are made to the City of Huntington Beach
in full. The amount of the development impact fees due and payable shall be based upon the fee
schedules and amounts in effect at the time said development impact fees would have been due and
payable in the absence of this Ordinance.
Section 4. Payment of such development impact fees shall be deemed a debt due and
owning to the City of Huntington Beach at such time which debt shall only be deemed satisfied and
discharged upon payment in full to the City of Huntington Beach.
Section 5. The provisions of this Ordinance for deferral of payment of development
impact fees shall expire one year from the date of the adoption of this Ordinance unless the City
Council shall have first acted to extend or otherwise alter the provisions of this Ordinance prior to
that time.
Section 6. Nothing contained in this Ordinance shall be deemed to authorize or permit
the deferral of payment of any fee or charge imposed upon residential development within the City
of Huntington Beach except for those development impact fees expressly enumerated in Section 2
hereof.
Section 7. New residential development projects that have obtained grading permits
from the City or received approval of a final tract map from the City, prior to the effective date of
this Ordinance shall not be eligible to defer the fees listed herein. Nothing contained in this
Ordinance shall be deemed to create any new fee charge, or increase any existing fee or charge, to
which the procedures specified in Section 66017 of the Government Code of the State of California
would be applicable.
Section 8. As a condition of the deferment of time of payment of any development
impact fee(s) pursuant to this Ordinance, the City shall require the property owner, or lessee if the
lessee's interest appears of record, prior to and as a condition of issuance of the building permit, to
execute either a contract secured by a lien, or a letter of agreement secured by an irrevocable letter
of credit. In either event, the development impact fee(s) shall be paid prior to final inspection, as set
forth below.
1. With regard to a contract, the obligation to pay the development impact fee(s) shall
inure to the benefit of, and be enforceable by, the City regardless of whether the City
is a party to the contract. The contract shall contain a legal description of the
property affected, shall be recorded in the office of the county recorder of Orange
County and, from the date of recordation, shall constitute a lien for the payment of
the development impact fee(s) which shall be enforceable against successors in
08-1791.002/31029 2
Ordinance No. 3827
interest to the property owner or lessee at the time of issuance of the building permit.
The contract shall be recorded in the grantor-grantee index in the name of the City of
Huntington Beach as grantee and in the name of the property owner or lessee as
grantor. The City shall record a release of the obligation, containing a legal
description of the property, when the obligation is paid in full. The contract shall
require the property owner or lessee to provide appropriate notification of the
opening of any escrow for the sale of the property for which the building permit was
issued and to provide in the escrow instructions that the fee or charge be paid to the
City of Huntington Beach from the sale proceeds in escrow prior to disbursing
proceeds to the seller. The executed contract shall be deemed to supersede any
conflicting provision contained in any applicable development agreement with
regard to the time of payment of any development impact fee(s).
2. As an alternate to recording a contract that constitutes a lien, the property owner or
lessee if the lessee's interest appears of record may, prior to and as a condition of
issuance of the building permit, execute a letter of agreement and provide an
irrevocable letter of credit pursuant to procedures established by the Director of
Planning.
Section 9. This ordinance shall become effective thirty (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 16th day of March 5200_9
Of
ATTEST: INITI D D APPROVED:
City erk Direc or of Manning
REVIEW D APPROVED: Fty
VED AS TO FORM:
City i strator orney
2 I-1 O 1 �7' 1 1 I
08-1791.002/31029 3
Ord. No. 3827
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 ordinance was read to said City Council at a regular
meeting thereof held on March 2,2009,and was again read to said City Council at a
regular meeting thereof held on March 16, 2009, and was passed and adopted by the
affirmative vote of at least a majority of all the members of said City Council.
AYES: Carchio, Dwyer, Green, Bohr, Coerper, Hardy, Hansen
NOES: None
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 March 26,2009.
In accordance with the City Charter of said City
Joan L. Flynn, City Clerk CiU Clerk and ex-officio Gerk
Senior Deputy City Clerk of the City Council of the City
of Huntington Beach, California
ATTACHMENT #2
Building Industry Association of Orange County
Economic Stimulus Proposal
City of Huntington Beach, California Orange Count)
Chapter
The BWOC requests consideration for the following:
Building Mustry Association
Tees of Southern Cdifauia
® Collection of all non-public safety related Development Impact Fees(DIF)to the 17744 Sky Park Circle
issuance of Certificate of Occupancy, Fees include. Suite 170
o Parks(including in-lieu park facility fees)&Recreation Fee Irvine,California 92614
949.553.9500
o Library Impact Fee fax 949553.9507
o Sewer Fee www,biaoc.com
o Drainage Fee wwsv.enodethomewur o b
ainag Your indwhy's omitprehersive
o Traffic&Roads hWact Fee online wide to new homes
o Affordable Housing In Lieu Fee
• Refund of DIFs paid in the last year on projects currently under construction.
Refunds would be transferred into an escrow account for the purpose of funding PRESIDENT
OAVID GREMGER
improvements and infrastructure. FIELDSTONE C0MMUM I IES
• Impose a moratorium on increase of all fees including buildinglplanr*1&and
VICE PRESIDENT
development related public works fees. PAUL JOHNSON
. ,, .L _* RANCHO NHSSION VIEJO
Aite:�rttative:Building Materials 2no VICE PRE-WENT
OEBRAPEMBFR
• City-wide approval of the use of PEX tubing as an alternative to copper•piping. JOHN LAING HONES
TREASURER
DAVE BARTLET7
SROOKFIELD kOMES
SECRETARY
PAOL HE2NANDEZ
THE IRVINE COWANY
MEDIATE PAST PRESIDENT
TIM WSUNAS
- THE SHOPOFFGROUP
. - - TRADECOWRACTORCOUNCI.VP
JIM YATES
GOLDEN WEST PWMBING
ASSOCIATE VICE PRESIDENT
LAER PEARCE
LAER PEARCE&ASSOCIATES
MEMBER-AT-LARGE
BILL WATT
BAYWOOD DEVELOPMENT
AIEMSER-AT-iARGE
ANDY BERNSTEIN
JACKSON,DEMARCO.TIDUS,
PETERSEN&PECKENPAUGh
KRISTNE TFSALIJAN
CHIEF EXECUTIVE OFFICER
13-12
RCA ROUTING SHEET
INITIATING DEPARTMENT: Planning
SUBJECT: Development Impact Fee Deferral
COUNCIL MEETING DATE: March 2, 2009
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 Applicable
Contract/Agreement (w/exhibits if applicable) Attached ❑
(Signed in full by the City Attorney) Not Applicable
Subleases, Third Party Agreements, etc. Attached ❑
(Approved as to form by City Attorney) Not Applicable
Certificates of Insurance (Approved by the City Attorney) Attached ❑
Not Applicable
Fiscal Impact Statement (Unbudgeted, over $5,000) Attached ❑
Not Applicable
Bonds (if applicable) Attached ❑
Not Applicable
Staff Report (If applicable) Attached ❑
Not Applicable
Commission, Board or Committee Report (If applicable) Attached ❑
Not Applicable
Findings/Conditions for Approval and/or Denial Attached , ❑
Not Applicable
( XPLANATIOH FOR HIISSM ATTACHG�lii EHTS
REVIEWED RETURNED FOR A DED
Administrative Staff ( )
Deputy City Administrator (Initial) ( ) ( )
City Administrator (Initial) ( ) 411
City Clerk ( )
EXPLANATION FOR RETURN OF ITEM:
•
RCA Author: S. Hess/C. Davis