O2211
F :\atty\muni\laws\als\childcarelinkage2d .doc
City Council Meeting 12-5-06
Santa Monica, California
ORDINANCE NUMBER
2211
(CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA ADDING CHAPTER 9.72 TO THE SANTA MONICA
MUNICIPAL CODE ESTABLISHING THE CHILD CARE LINKAGE PROGRAM,
THE CHILD CARE LINKAGE PROGRAM IMPACT FEE, AND ESTABLISHING
AN ADJUSTMENT AND WAIVER PROVISION
WHEREAS, Santa Monica is a coastal city in a prime location, being
bordered by the City of Los Angeles to the north, east and south; and
WHEREAS, the combination of a scenic oceanside location, excellent
climate, and the ready availability of urban facilities, services and entertainment
make Santa Monica an extremely desirable place to live and work; and
WHEREAS, land area of the City is very small - approximately eight
square miles; and
WHEREAS, because the City is fully built-out, land available for child care
facilities in the City, whether by donation or otherwise, is extremely limited; and
land which could be used for such facilities is unavailable because of the high
cost of development; and
WHEREAS, the City has prepared a study analyzing the linkages between
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child care demand and new development in the City, including the relationships
between new construction in the City and the demand for child care, and the
costs of mitigating that demand; and
WHEREAS, the study was prepared in 2003 by Keyser Marston
Associates, Inc. ("KMA"), and updated in November 2005 ("Study"); and
WHEREAS, the Study focuses on the relationships between the
construction of new buildings and resulting job growth, new employees with
children age 5 or under needing child care that can be met at or near the
workplace, the demand for child care spaces with the per square foot building
area of new construction, and the costs to build child care facilities prorated in
proportion to the demand generated by new construction type; and
WHEREAS, the Study quantifies the demand for child care space
associated with each square foot of workspace building area of new development
and the cost of mitigation through development of child care facility space; and
WHEREAS, the Study demonstrates that from the universe of each 1000
employees resulting from new construction, the demand for spaces in child care
centers located at or near the place of work is 11.14 infant and toddler spaces
and 24.54 preschool spaces, or a total of 35.68 spaces in child care centers; and
WHEREAS, the Study concluded that the cost of developing a child care
center space in Santa Monica is at least $18,500 per space excluding land, and
$55,400 per space including land, or averaged together, $36, 950; and
WHEREAS, the mitigation cost allocated to each new employee for
development of child care center space is $1,318 (35.68 x $36,950 = $1,318,380
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for 1,000 employees or $1,318 for each new employee); and
WHEREAS, the per-employee mitigation cost to building space is based
on density of employment that varies by type of building and activity within it, and
the Study indicates that there are different density factors for office, retail and
hotel building types so that the cost per square foot of new construction to
mitigate the demand for space in child care centers through the construction of
new child care spaces is $5.27 per square foot for office buildings, $3.77 per
square foot for retail buildings, and $2.64 per square foot for hotels; and
WHEREAS, the Study demonstrates that exclusive of workplace demand
for child care spaces, the child care demand associated with residential
development for every 100 households in Santa Monica is 0.3 child care center
spaces, the cost to provide based on the analysis in the Study is $111.00 per
household dwelling unit; and
WHEREAS, continued new development which does not include or
contribute toward the cost of child care facilities will only serve to further
exacerbate the current shortage; and
WHEREAS, the lack of child care facilities has a direct impact upon the
health, safety, and welfare of the residents and workforce within the City; and
WHEREAS, requiring developers to assist in the production of child care
facilities is also consistent with the City's long-standing commitment to achieve
and maintain a suitable living and workplace environment for persons at all
economic levels; and
WHEREAS, this municipal commitment conforms with State and Federal
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policies recognizing the importance of child care as a societal concern, including
but not limited to local assistance programs and recognition of child care
expenditures in the form of tax credits on personal income tax returns; and
WHEREAS, objectives of the City's General Plan include making Santa
Monica a more child friendly environment by encouraging child-care facilities in
fulfilling the City's role as a regional recreational and business center; and
WHEREAS, commencing in 1981, the City has facilitated the production of
child care facilities through the negotiation of development agreements for large
projects, and continues to operate a number of programs that provide funding for
child care center operations and scholarships; and
WHEREAS, despite this significant commitment by the City, the City's total
child care facility needs exceeds its available resources and the City's ability to
meet these needs,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA
MONICA DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Chapter 9.72 is hereby added to the Municipal Code to read
as follows:
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Chapter 9.72
Child Care Linkage Program
9.72.010
Findings and purpose.
(a) The purpose of this chapter is to assure that
developers of new residential and workplace
development mitigate the increased demand for child
care attributable to and generated by such
development projects by contributing to the creation
of an equitable share of child care facility spaces, and
thereby help the City meet its child care facility needs.
(b) There is a shortage of licensed child care
facilities within the City to meet local needs for child
care services. The causal connection between new
commercial and residential development and the
demand for child care facilities, as well as an estimate
of the cost of providing facilities to meet that demand
has been studied and presented to the City Council
by City staff. The information presented demonstrates
that certain new development projects create an influx
of new employees and families to the City, and thus
generate additional need for child care facilities,
creating additional and cumulative impacts on the
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system for providing child care. A lack of adequate
child care facilities in the City will have an adverse
affect on the residents' quality of life and the City's
economy, as employers will be unable to secure
employees who cannot find accessible child care
facilities. The increased demand for child care
services generated by new development projects,
unless mitigated, is detrimental to the City's public
health, safety and general welfare.
(c) The public policy of the City, as reflected by the
City's Child Care Master Plan and Land Use Element,
is to encourage child-care facilities, the provision of
which requires a partnership between public and
private participants. The fees and exactions
established by this Ordinance upon receipt shall be
used to create new child care facility spaces in the
City by public and private child care providers to offset
the demand generated by new development projects.
The City Council finds that there is a reasonable
relationship between the purpose for which the fees
established by this Ordinance are to be used and the
type of development projects on which the fees are
imposed, and between the amount of the fees and the
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cost of the child care facility or portion of the facility
attributable to the development on which the fees are
imposed.
9.72.020
Applicability of chapter.
The regulations, requirements and provisions
of this chapter and council resolutions adopted
pursuant hereto shall apply to developers of
residential, office, retail and hotel development
projects as defined in this Chapter.
9.72.030
Definitions.
The following words or phrases shall have the
following meanings when used in this Chapter:
Child Care Facility. A child day care facility as
defined in California Health and Safety Code Section
1596.76
Child Care Linkage Fee. A fee paid to the
City by an applicant pursuant to Section 9.72.040 of
this Chapter in connection with approval of a project,
to contribute to the creation of child care spaces to
meet the increased facility needs created by
increases in population and employment in the City.
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Child Care Provider. An organization which
operates a child day-care facility as defined in
California Health and Safety Code Section 1596.791.
Director. The Director of Community and
Cultural Servic,es Department, or his/her designee, or
the Director of Planning and Community
Development, or his/her designee, as appropriate.
Hotel. Hotel as defined at Santa Monica
Municipal Code Section 9.04.02.030.410 and Motel
as defined at Santa Monica Municipal Code Section
9.04.02.030.515, or any successor legislation.
Impact Formula. A formula, adopted by
Council ordinance or resolution, to determine the
amount of fee due for each project based on the
increased demand for child care that results from the
project and the per unit cost of meeting that demand.
Office. A structure or portion thereof intended
or primarily suitable for occupancy by persons or
entities which perform, provide for their own benefit,
or provide to others at that location services including,
but not limited to the following: Professional, banking,
insurance, management, consulting, technical, sales
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and design, entertainment or post-production studios,
or the office functions of manufacturing or
warehousing businesses. This definition shall
include, but not be limited to, all uses encompassed
within the meaning of Section 9.04.02.030.540, or any
successor legislation.
Project. Office, retail, hotel development
having a gross new or additional floor area of 7500
square feet or more or that changes an existing use to
a different use that increases the demand for child
care spaces, or residential development of improved
or unimproved land which conforms to development
approvals and requirements of this Code, regardless
of the nature of the project, e.g., developing
undeveloped land, expanding a use. Gross floor area
for the purposes of this definition shall be the same as
Section 9.04.02.030.315, or any successor legislation,
but shall also exclude parking area. Where the
requirements of this Chapter have been adjusted or
waived for a Project pursuant to Section 9.72.050
hereof, subsequent changes in use, project remodels
or tenant improvements that increase the demand for
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child care facility spaces shall constitute a Project as
defined herein.
Residential Development. Development of a
multi -family dwelling units for a household as those
terms are defined in Sections 9.04.02.030.270 and
9.04.02.030.415, or any successor legislation,
respectively, including but not limited to multi- family
residences of more than one unit, apartments,
condominiums, townhouses or the multi-family
residential component of a mixed use project, for
which City permits and approvals are sought.
Residential Development, for purposes of defining a
Project subject to this chapter, does not include the
following: day care centers; churches, temples,
synagogues, and other buildings or structures used
for religious worship; repair and reconstruction of any
building damaged by flood, fire or other disaster;
governmental facilities; affordable housing units;
community care facilities; senior citizen housing
development.
Retail. A business which is engaged in selling
goods or merchandise to the general public and which
may provide services incidental to the sale of such
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goods as defined in Section 9.04.02.030.345, or any
successor legislation.
9.72.040
Child Care Requirement.
For any project defined herein, the developer
shall pay a child care nnkage fee or participate in the
construction or establishment of child care facilities in
accordance with the following:
(a) Child Care Linkaqe Fee. Fees shall be
computed as follows:
(1) For Residential Development Projects
that result in the addition of a dwelling unit - $111.00
per dwelling unit.
(2) All Office, Retail and Hotel Projects shall
pay the following based on the gross square footage
of the proposed Project: Office - $5.27 per sq. ft.
Retail- $3.77 per sq. ft.
Hotel - $2.64 per sq. ft.
(3) For mixed residential/nonresidential
development, the sum of the fee required for each
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component as set forth above in sections (1) and (2)
of this subsection.
(b) Timinq of Fee Payment.
(i) Fees shall be imposed at the time of
approval of any discretionary permit for a
development project subject to this Chapter or, if the
fees cannot be lawfully imposed as a condition of
discretionary project approval, at the time of any other
subsequent permit required for the development to
proceed, including but not limited to building permits.
The project applicant shall pay fees according to the
schedule of fees in place on the date the fees are
paid, except that the applicant for a vesting tentative
map for a development project shall pay the fees in
effect on the date the application for the vesting
tentative map is deemed complete.
(ii) No building permit for any development
project shall be issued unless a contract to pay the
fees has been executed with the Planning and
Community Development Department, and no final
inspection shall be approved unless fees have been
paid. For development projects subject to this
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Chapter, Child Care Linkage Fees shall be paid on
the date final inspection approval is received and prior
to Certificate of Occupancy. If a residential
development project contains more than one dwelling
unit and is approved for development in phases, the
developer shall pay the fees in installments based on
the phasing of the residential development project.
Each fee installment shall be paid at the time when
the first dwelling unit within each phase of
development has received its final inspection.
(iji) For all projects subject to this Chapter,
the City may require the payment of fees at an earlier
time if the fees will be collected for public
improvements or facilities for which an account has
been established and funds appropriated and for
which the City has adopted a proposed construction
schedule or plan prior to final inspection, or the fees
are to reimburse the City for expenditures previously
made.
(c) Facilities In Lieu of Fees. The developer
of a residential or non residential project may satisfy
the requirement for the payment of fees by agreeing
to participate in the construction or establishment of
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one or more child care facilities. Such participation
shall be secured generally as follows:
(1) Type and Cost of Participation. A
developer seeking to satisfy the child care
requirements of this Chapter through participation in
the construction or establishment of new child care
facilities shall submit documentation acceptable to the
Director of Planning and Community Development to
support the request for participation in lieu of fees.
The documentation shall establish that the type and
cost of participation including, but not limited to,
construction, rehabilitation of existing structures
conforming to license and zoning requirements, or
land or premises dedication, bears a reasonable
relationship to the fee otherwise required in
subsection (a). Construction Cost Indexes, prevailing
wage rates, and the best available index of costs of
equipment and supplies shall be utilized to determine
the level of participation relative to the required fee.
In the case of land or premises dedication, the market
value of land or premises dedicated shall be
reasonably related to the fee otherwise required in
subsection (a). If the actual construction cost or
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market value is greater than the required relevant
fees, the City shall have no obligation to pay the
excess amount.
(2) Approval of Participation. The Director
of Planning and Community Development, after
consultation with the Director of the Community and
Cultural Services Department, shall determine and
approve the type and cost of participation in the
construction or establishment of facilities.
(3) Verification of Participation. The Director
of Planning and Community Development shall
require that the developer submit a written verification
of participation in meeting these requirements. Said
verification shall consist of documentation sufficient to
enable the Director to readily determine compliance
with the provisions of this Chapter. Upon receipt of
documentation sufficient to demonstrate compliance,
the Director shall issue a notice that the developer
has complied with the requirements of this Chapter.
(4) The Director's determination of the type
and cost of participation in the construction or
establishment of child care facilities pursuant to this
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Section may be appealed to the City Council if such
appeal is filed within fourteen consecutive calendar
days from the date that the decision is made in the
manner provided in Part 9.04.20.24, Sections
9.04.20.24.010 through 9.04.20.24.040 of this Code.
9.72.050
Fee Adjustments or Waivers.
(a) A developer of any Project subject to the
fee described in Section 9.72.040(a) may request that
the requirements of this Chapter be adjusted or
waived based upon the absence of a reasonable
relationship or nexus between the impacts of that
development and either the amount of the fee
charged or the type and cost of the facilities to be
established or constructed in lieu of fee through
participation. The grounds for such request may
include, but are not limited to, circumstances where
the particular design and use of the workspace
building area prevent the proposed Project from
generating the demand for child care facility spaces in
the amount of the Child Care Linkage fee required by
this Chapter.
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(b) To receive an adjustment or waiver, the
developer must submit an application to the Director
of Planning and Community Development, or his/her
designee, at the time the developer files a project
application. The developer shall bear the burden of
presenting substantial evidence to support the
request and set forth in detail the factual and legal
basis for the claim, including all supporting technical
documentation.
(c) The Director of Planning and
Community Development shall render a written
decision within ninety (90) days after a complete
application is filed. The Director's decision may be
appealed to the City Council if such appeal is filed
within fourteen consecutive calendar days from the
date that the decision is made in the manner
provided in Part 9.04.20.24, Sections 9.04.20.24.010
through 9.04.20.24.040 of this Code. The decision of
the City Council shall be final. If an adjustment or
waiver is granted, any change in use from the
approved project shall invalidate the adjustment or
waiver.
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9.72.060
Fee Revenue Account.
Pursuant to Government Code Section 66006,
the Child Care Linkage Fee Reserve Account is
hereby established. The fees paid pursuant to the
provisions of this Ordinance shall be placed into the
Child Care Linkage Fee Reserve Account and used
solely for the purpose described in this Chapter. All
monies in this Reserve Account shall be held
separate and apart from other city funds. All interest
or other earnings of such Reserve Account shall be
credited to that Account.
9.72.070
Use of Funds.
Funds in the Child Care Linkage Fee Reserve
Account shall be expended on the construction and
establishment of child care facilities within the
corporate limits of the City of Santa Monica, exclusive
of ongoing operating expenses and general
maintenance. Such expenditures may include, but
shall not be limited to, the following:
(a) The reimbursement for all direct and
indirect costs incurred by the City for the development
of child care facilities pursuant to this Chapter,
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including but not limited to, the costs of land
acquisition, planning, legal advice, engineering,
design, construction and equipment.
(b) The reimbursement for all costs incurred
by the City associated with the administration of the
Reserve Account, including but not limited to, audits,
and yearly accounting and reports.
(c) The making of loans at conventional,
low, or no interest, loan guarantees, or grants to child
care providers for child care facility capital
improvements, including but not limited to, land
acquisition, planning, design, and construction
(including rehabilitation) which result in the provision
of additional child care facilities.
9.72.080
Automatic Annual Adjustment
Each fee imposed by this ordinance shall be
adjusted automatically on July 1 of each fiscal year,
beginning on July 1, 2007, by a percentage equal to
the appropriate Engineering Construction Cost Index
as published by Engineering News Record, or its
successor publication, for the preceding twelve (12)
months.
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9.72.090
Annual Report
Except for the first year that this ordinance is in
effect, within 180 days after the last day of each fiscal
year, the Director of the Community and Cultural
Services Department shall make available to the
public and submit for review by the City Council the
information required by Government Code section
66006(b)(1) pursuant to the procedures set forth in
section 66006(b)(2).
9.72.100
Refunds
(a) If a development permit upon which a
child care linkage fee was collected expires, is
vacated or voided, without commencement of
construction, upon request of the developer, the
developer shall be entitled to a refund of the
unexpended child care linkage fee paid, less a portion
of the fees sufficient to cover costs of collection,
accounting for and administration of the fees paid.
The fee payer shall submit a written request for a
refund to the Director of Planning and Community
Development within one year of the expiration date of
the permit. Failure to timely submit a request for
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refund may constitute a waiver of any right to a
refund.
(b) Fees collected pursuant to this Chapter
which remain unexpended or uncommitted for five or
more fiscal years after deposit into the Reserve
Account may be refunded as provided by Government
Code section 66001 (e) and (t).
9.72.110
Fee Revision by Resolution
The amount of the child care linkage fees and
the formula for the automatic annual adjustment
established by this Chapter may be reviewed and
revised periodically by resolution of the City Council
utilizing the best available information. This
ordinance shall be considered enabling and directive
in this regard.
9.72.120
Regulations
The City Manager, or her/his designee, is
authorized adopt administrative regulations or
guidelines that are consistent with and that further the
terms and requirements set forth within this Chapter,
which is hereby codified in Article 9, Chapter 9.72 et.
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seq. of the Santa Monica Municipal Code or as
otherwise designated by the City Clerk. All such
administrative regulations or guidelines must be in
writing.
SECTION 2. This Ordinance shall apply to all development applications
meeting the criteria for applicability as defined herein determined complete after
the effective date of this Ordinance.
SECTION 3. Any provision of the Santa Monica Municipal Code or
appendices thereto inconsistent with the provisions of this Ordinance, to the
extent of such inconsistencies and no further, is hereby repealed or modified to
that extent necessary to effect the provisions of this Ordinance.
SECTION 4. If any section, subsection, sentence, clause, or phrase of
this Ordinance is for any reason held to be invalid or unconstitutional by a
decision of any court of competent jurisdiction, such decision shall not affect the
validity of the remaining portions of this Ordinance. The City Council hereby
declares that it would have passed this Ordinance and each and every section,
subsection, sentence, clause, or phrase not declared invalid or unconstitutional
without regard to whether any portion of the ordinance would be subsequently
declared invalid or unconstitutional.
SECTION 5. The Council finds that the adoption of this ordinance is
exempt from the provisions of the California Environmental Quality Act pursuant
to CEQA Guideline 915378 (b)(3), in that it involves creation of a governmental
funding mechanism or other governmental fiscal activity which do not involve
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commitment to any specific project which may result in a potentially significant
physical impact on the environment, and CEQA Guideline ~15060(c)(2), in that
the option to construct or establish on-site child care facilities authorized by the
ordinance itself does not involve commitment to any specific project, it is a matter
of speculation whether a developer of a project subject to the proposed child
Care Linkage Program will select the on-site option and, in cases where
individual projects select the onsite option, the project will be subject to CEQA
review.
SECTION 6. The Mayor shall sign and the City Clerk shall attest to the
passage of this Ordinance. The City Clerk shall cause the same to be published
once in the official newspaper within 15 days after its adoption. Pursuant to
California Government Code section 66017(a), this Ordinance shall become
effective 60 days after its adoption.
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Approved and adopted this 5th day of December, 2006.
~.
RiG ard Bloom, Mayor
State of California )
County of Los Angeles) ss.
City of Santa Monica )
I, Maria M. Stewart, City Clerk of the City of Santa Monica, do hereby certify that the
foregoing Ordinance No. 2211 (CCS) had its introduction on November 28,2006, and
was adopted at the Santa Monica City Council meeting held on December 5,2006, by
the following vote:
Ayes: Council members:
Genser, McKeown, O'Connor, Shriver
Mayor Bloom
Noes:
Council members:
Holbrook
Mayor Pro Tern Katz
Abstain: Council members: None
Absent: Council members: None
ATTEST:
~::L.\ ~J
Maria M. Stewart, CIty Clerk