HomeMy WebLinkAbout2002/2003 Park Impact Fee Annual Report Pursuant to Huntingt If ac-
�M �A LI
Council/Agency Meeting Held:
Deferred/Continued to:
Approved ❑ Conditionally Approved ❑ Denied Cit CI r 's ign tur
Council Meeting Date: April 19, 2004 Department ID Number: CSO4-012
CITY OF HUNTINGTON BEACH .�
G
REQUEST FOR COUNCIL ACTION
SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS o - -:
SUBMITTED BY: RAY SILVER, City Administratordr,;e-V r
PREPARED BY: JIM B. ENGLE, Director of Community Servic s D
SUBJECT: RECEIVE AND FILE FISCAL YEAR 2002-03 P RK IMPACT FEE
ANNUAL REPORT
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 Fee to be levied on new commercial, industrial, and residential development, other than
residential subdivisions. State law requires the preparation of an annual report.
Funding Source: Not applicable.
Recommended Action: Motion to:
1. Receive and file fiscal year 2002-03 Park Impact Fee Annual Report (Attachment 1).
Alternative Action(s): Modify report, and direct staff accordingly.
Analysis: On November 18, 2002, City Council approved the establishment of a Park Fee
per Section 230.20 of the City's Zoning and Subdivision Ordinance. The fee is levied on
new commercial, industrial and residential development, other than residential
subdivisions. The purpose of the fee is for the development and rehabilitation of the City's
parks 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 describing the fee, the amount of fees collected and interest earned,
the identification of the projects on which the fees will be expended, as well as an
approximate schedule. 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
04-012 Receive and File 02-03 Park Impact Fee Annual Report --
1E3
ATTACHMENT 2
Park Impact Fee Program Annual Financial Summary Statement
November 19,2002-September 30, 2003
r
Fund Balance $0
Revenues
Fees Collected_I 20900209.472701 ! $ 601,899.00
I 20900209._47280; $ 55,904.00
rt $ 657,803.00
--------------------------- -- --
Interest $ 11,211.40
Expenses 0 •��
69
* Fees adopted by City Council on 11/18/02 as emergency interim ordinance No. 3594; fee collection begins 11/19/02
**Includes$318,670 collected based on fees relating to settlement agreement
*** None expended during 1 st year of collection
AR
CITY OF HUNTINGTON BEACH
FB
HUNTINGTONBEACH Community Services Department
To: Honorable Mayor and City Council Members
Via: Ray Silver, City Administrator
From: Jim B. Engle, Director of Community Service
Date: March 17, 2004
Subject: PARK IMPACT FEE ANNUAL REPORT FOR FY 2002-03
On November 18, 2002, the City Council approved the establishment of a Park
Fee per Section 230.20 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 the first reporting period is attached for your preliminary
review. It will be officially transmitted for approval at the April 19, 2003, City
Council meeting. By way of this transmittal, I am releasing this report for public
review. Please feel free to contact me if you should have any questions
regarding the attached information.
C.
Bill Workman, Assistant City Administrator
Jennifer McGrath, City Attorney
Connie Brockway, City Clerk
JBE:ek
RCA ROUTING SHEET
INITIATING DEPARTMENT: Community Services
SUBJECT: Receive and File 2002-03 Park Impact Fee Annual Report
COUNCIL MEETING DATE: Aril 19, 2004
RCA ATTACHMENTS STATUS
Ordinance (w/exhibits & legislative draft if applicable) Not Applicable
Resolution (w/exhibits & legislative draft if applicable) Not Applicable
Tract Map, Location Map and/or other Exhibits Not Applicable
Contract/Agreement (w/exhibits if applicable)
(Signed in full by the City Attorney) Not Applicable
Subleases, Third Party Agreements, etc.
(Approved as to form by City Attome Not Applicable
Certificates of Insurance (Approved by the City Attorney) Not Applicable
Financial Impact Statement Unbud et, over $5,000 Not Applicable
Bonds If applicable Not Applicable
Staff Report If applicable Attached
Commission, Board or Committee Report If applicable) Not Applicable
Findings/Conditions for Approval and/or Denial Not Applicable
EXPLANATION FOR MISSING ATTACHMENTS
REVIEWED RETURNED FOR A DED
Administrative Staff
Assistant City Administrator Initial
City Administrator Initial
[City Clerk
EXPLANATION FOR RETURN OF ITEM:
SpaceOnly)
RCA Author: Kuhnke/Engle
REQUEST FOR COUNCIL ACTION
MEETING DATE: April 19, 2004 DEPARTMENT ID NUMBER: CSO4-012
public. In addition, notices of the time and place of the meeting are to be mailed to all
interested parties who have filed a written request. The report was released for public review
on March 17, 2004 (Attachment 2). No written requests for notification have been received.
As shown in Section III of Attachment 1, a total of$657,803 in fees was collected beginning
November 19, 2002, through September 30, 2003. Since-this was the first--ear__of_collection,
no fees were expended. During the upcoming budget cycle, the Community Services
Department will update its Capital Improvement Plan to reflect projects to be funded with
Park Fees.
Environmental Status: Not applicable.
Attachment s�:
City Clerk's
Page Number No. Description
1 Park Impact Fee Annual Report— Fiscal Year 2002-03
2 Memorandum dated March 17, 2004
RCA Author: Kuhnke/Engle
G:\RCA\2004\04-012 Receive and File 02-03 Park Impact Fee Annual Report.doc -2-
3/19/200411:36 AM
ATTACHMENT # 1
PARK IMPACT FEE ANNUAL REPORT
FISCAL YEAR 2002-2003
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 Code. The ordinance established a Park 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, 2003, Emergency Ordinance No. 3596 was also approved, along with governing
Resolution No. 2002-129 (Attachment 1).
The purpose of the fee is 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. 2004) and addendum
(Sept. 25, 2002)are met. According to ZSO 230.20 the fees are to be paid and calculated
according to a schedule adopted by City Council resolution.
II. REPORTING REQUIREMENTS
State law imposes both annual and five-year reporting requirements as a result of its
collection of Park 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. This year the report will be presented to the City Council at its April 19, 2004,
meeting.
1
Fee Description:
All Park Fees must 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." According to ZSO 254.08 (c),this standard is five acres for each 1,000
residents.
In addition, Park Fees must be used to finance park and recreational facilities and
improvements identified in the Capital Improvement Plan as adopted by the City Council
on an annual basis as part of the city's budget cycle.
Fee Amount:
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
As shown in Attachment 2,the fund began with a balance of zero and ended with a
balance of $669,014, which includes $11,211 in interest. A total of$657,803 in fees was
collected beginning November 19, 2002, through September 30, 2003. Of the $657,803
collected, $318,670 was a single fee paid as part of a settlement agreement pertaining to
the Ellis Single Room Occupancy project. While based on a different formula,the party
agreed to pay all fees in place at the time of the settlement, and thus the fees are included
in the Park Fee fund.
Since this was the first year of collection, no Park Fees were expended during this
reporting period(2002-03). During the upcoming Fiscal Year 04-05 budget cycle,the
Community Services Department will update its Capital Improvement Plan(CIP)to
include projects to be funded with Park Fees in the coming years.
2
Attachment 1
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
rehabiliafion 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 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
GARESULUM1 002\in lieu park-clean.doc I
• 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 tho 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 Shalt 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 m 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:\RESOLUTN\2002\in lieu park-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. 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 Ouality 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.
GAESOLUTM200in lieu park-clean.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.Addenduml 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:
City Clerk Mayor
REVIEWED AND APPROVED: APPROVED AS TO FORM:
CityA nstrator Ci A o e
Il��
INITIATED AND APPROVED:
Dir to Community S6krices
G:\RESOLUTN\2002\in lieu park-clean.doc 4