HomeMy WebLinkAboutFY 2006-2007 - 230 Park Impact Fee Annual Report - Resolutio 6S
Council/Agency Meeting Held: Ll or
Deferred/Continued to:
O-Appro ed ❑ Conditionally Approved ❑ Denied City rk s SlIgnatur
Council Meeting Date: 4/21/2008 Department Number: CS08-012
CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEM
SUBMITTED BY: PAUL EMERY, INTERIM CITY ADMINISTRATOR
PREPARED BY: JIM B. ENGLE, DIRECTOR, COMMUNITY SERVI
SUBJECT: RECEIVE AND FILE 230 PARK IMPACT FEE ANNU REPORT FOR
FY 2006/2007
Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s)
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.
Funding Source: ' Not applicable.
Recommended Action: Motion to:
Receive and file the 230 Park Impact Fee Annual Report for fiscal year 2006/2007.
Alternative Action(s):
Do not receive and file the report, and direct staff accordingly.
OVERVIEW ATTACHMENT 2
230 Park Impact Fee
Annual Financial Summary Statement
for Fiscal Year 2006/2007
Fund Balance 9130/06 1,799,313
Revenue FY 2006/2007
Fees 442,001
Interest 59,223
Revenue Subtotal 501,224
Expenditures FY 2006/2007
Park Leases/ Equipment Rental 11,136
Professional/Contracted Services 100,811
Youth Sports Grant Awards 107,004
Staffing 42,794
Expenditure Subtotal 261,745
Fund Balance 9/30/07 $2,038,792
ATTACHMENT #2
•�� CITY OF HUNTINGTON BEACH
Inter Office Communication
Community Services Department
TO: Honorable Mayor and City Council Members
VIA: Paul Emery, Interim City Administrator
FROM: Jim B. Engle, Director of Community Servic
9 Y
DATE: March 31, 2008
SUBJECT: RELEASE OF 230 PARK FEE ANNUAL REPORT FOR FY 200612007
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 Park Impact 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 2006/2007 is attached for your preliminary review. It
will be officially transmitted for approval at the April 21, 2008, City Council meeting. By
way of this transmittal, I am releasing this report for public review. Please feel free to
contact me (x5495) should you have any questions regarding the attached information.
c: Jennifer McGrath, City Attorney
Joan Flynn, City Clerk
Attachments:
1. Resolution No. 2002-129
2. Overview
RCA ROUTING SHEET
INITIATING DEPARTMENT: Community Services
SUBJECT: Receive and File FY 06/07 Annual Park Fee Report
COUNCIL MEETING DATE: April 21, 2008
RCA ATTACHMENTS STATUS
Ordinance (w/exhibits & legislative draft if applicable) Attached ❑
Not Appl!cable
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 Attomey) 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 Ap licable
Bonds (If applicable) Attached El
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
[EXPLANATION FOR MISSING ATTACHMENTS
REVIEWED RETURNED FORKAPPED
Administrative Staff
Deputy City Administrator Initial
City Administrator Initial eE
City Clerk ( )
EXPLANATION FOR RETURN OF ITEM:
(Below • . For Only)
RCA Author: Brunson
REQUEST FOR CITY COUNCIL ACTION
MEETING DATE: 4/21/2008 DEPARTMENT ID NUMBER: CS08-012
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
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 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 31, 2008 (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, $442,001 in fees were collected during the 2006/2007
fiscal year, plus an additional $59,223 in interest. Expenditures totaled $261,745 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 $2,038,792 as of
September 30, 2007. Minimal 230 funds were expended in fiscal year 2006/2007; it is
anticipated expenditures in fiscal year 2007/2008 will increase significantly with projects such
as Edison Park Youth Sports Complex and LeBard Park Phase II moving into construction.
Strategic Plan Goal:
Land Use and Economic Development — The Annual Park Fee Report aids in preservation of
neighborhoods and maintaining open space for the community.
Environmental Status: No applicable.
Attachment(s):
City Clerk's
. - Number No. Description
- 1. Park Impact Fee Annual Report— FY 2006/2007
2. Memorandum dated March 31, 2008
-2- 4/8/2008 4:48 PM
ATTACHMENT # 1
230 PARK IMPACT FEE ANNUAL REPORT
FISCAL YEAR 2006/2007
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 21, 2008.
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
1
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 2006/2007 Revenue
As shown in Attachment 2, the beginning fund balance as of September 30,
2006, was $1,799,313. During fiscal year 2006/2007, $442,001 in fees were
collected, plus $59,223 in interest, for a total revenue of$501,224.
Fiscal Year 2006/2007 Expenditures
As also shown in Attachment 2, $261,745 were expended for various park
improvement projects and staffing, including park leases, contracted/professional
services, park rehabilitation, and youth sports grants to community organizations.
Fiscal year end fund balance was $2,038,792.
Note; Minimal 230 funds were expended in FY 06/07. Anticipated expenditures in
FY 07/08 will increase significantly with projects such as Edison Park Youth
Sports Complex and LeBard Park Phase II moving into construction.
2
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Attachment 1
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RESOLUTION NO: 2 2--1 ("Poole Res 6226)
5
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF HUNTINGTON BEACH RELATING TO THE PAYMENT OF A PARK
PURSUANT:TO SE TIOI 230=Z0�DF• UUN�TII�IGTON.BBACH'ZONINCr'AI+dD�.'
.SUBDIY8ION ORDAfCli .
i
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 den_ti9Ilevclopment not covered by Chapter
254'of Title 25,of the City Zoning and Subdivision Code,except for mobile home parks,to pay it
park in lieu fee in accordance with the requirements of Chapter 254 and caladated 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 adsting 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
relatiomhip.betwem new development,the needed.facilities;and.th_e.wed costs of those
• .' itriproveanents;and: _.: :."
The Park Fee Study and Addendum have been available for public inspection and review i
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:
SF0ON 1. Fines 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 feo to.be.paid pursuant to Becton 230.20,of Chaplet 230 of
Tile 23•of f c City and;�ubdivisioii Code("Fee") s fox the developmcrtt ct
rehabil 4a ii of the City''s parks and remkiona1 faciilitied iti order to assure that'thd '
policies and standards for parr 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 Secdon 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 areirfor all commercial,industrial and residential
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development projects subject to Section 230.20 of the City Zoning and Subdivision
Code,shall be used to develop and rehabilitate park and wereittional facilities within
the City fo assure the provision,of park land and recreational facilitiesAteded to
serve such development at established City service levels standards within a
reasonable period of time-.
:Ihat ho Fco heraby i posed ls'teaso=b]yrel�Ced to.#h�"impact ;of u�vsr:reeedeiifial,.
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 Citf 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 rehabiliadoa of the CIVS
existing park and recreational facildes and acquisition of additional facfiities. The
Fee proceeds will be used to mitigate these impacts.
S. 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 thb amount of the Fee is based
upon the square footage of the proposed development.
6. The fees,cgllected pursuant to this Resolutio4 shall be•transferreSl for deposit into-A
Merate fund f of aaX foes_cik revemis=of the:cit}t and: tl•sucli fu ►�ds,shall.fi
" accounted for.-We dvdoimt shm be an itrteresti ring account an aA fire
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.
Sj: MN 2. ngaUons. For the purposes of this Chapter,the following terms shall be
defined as follows:
(a) "New development"shall mean the conshuction of new floor area for a residential,
commercial or industrial project;
(b� "Commercial or Industrial Development Pro
jext"•shall mean,the conshwdon of New-floor
., .• •• • . "•�•area'on:af%t ia'any non resi�tentiat•�oning_ ctoftbe 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.
E TX4 3. &e . 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.
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�C'�ION 4• PAMSM 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
.J upon issuance of a Building Permit. A Park Fee imposed on new residential development shall be
paid prior to the final inspection. E
i
: .SE i\ •S� Woof,R&.-:All feds collected vorsiiant to Socfion 2�0.�0.:of tliieCit��onitig.'
:and subdivisiQn Code:sha7l be:usdd il6nce the arlt Duct re readorial;f citifies:arid'inipr s%em rite
identified in the"Park Development and Rehabilitation Capital Improvement Plan"as adopted by
the City Council on an annual basis.
SEMON¢. Exenay. . 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 clues 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 CaUfornia Health and SafetyCode,•
and provided that the applicant executes an agreemeirt,is the fonn 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 rW PtoPY being developed,guaranteeing filet ill o£the units
developed 9�tine real piop�rty shall:be iriaintained'fox iower.aiui Fiery low iacie
households whether a§iuuts-fbilenf or:fo'r sate or UtOisfer,'for'&lesser'ova peridd -
of thirty years or the actual life or existence of the structure,including-any addition;-
renovation or remodeling thereto.
2. Reconstruie ion of any residential;•commercial,or industrial development project tht ;
is damaged or destroyed as a result of a natural disaster,as dechwed-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. E
'i30N Califorgia Environmental�,,uality Act. The City Council hereby finds that
*e atopdon of this Rcsolution'is,exeinptfro%n the Califoiia llovironmental'Qnality AO(KCEQA'•').
jj
under$ecdoli 15273(a)(4)'of the'California Code of ltegulatibns,'commWy known as the UQA 1
Guidelines. The City Council fords that this exemption applies because there is no reasonable
possibility that the modification of the parkland in-lieu,fee oould 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.
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SEMON I Weedn Pa#e. This Resolution shall take effect immediately i
SF�CTION 9. Resolution No. 6226 is hereby repealed
: : SECTION 10: The-ParkFce:Studp and the;Ad4e". are h rAY--a 06$,W aild-ad
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PASSED AND ADOPTED bythe City Council of the City of Huntington Beach at a regular
meeting thereof held on the 16th day of Deer ,2002.
ATTEST:
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.0ty Clerk Mayor
REVIEWED AND APPROVED: APPROVED AS TO FORM: ,
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city')kkirnistrator C"Ae3
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WnATED AND APPROVED:
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