HUNTINGTON BEACH : Development Fees Uncollected by City

City Hall officials have failed to collect thousands of dollars in park and recreation fees that companies apparently owe for constructing residential developments in the city, officials said this week.

Some of the so-called in-lieu fees, which developers pay instead of donating land for parks in the new tracts, date to November and December of 1987, according to a City Hall memo that the Community Services Department sent to the treasurer’s office in May.

Assistant City Administrator Ray Silver said Tuesday that he did not yet know why the city apparently hasn’t collected the money, which could total $725,000, especially when the city earlier this year grappled to make up a $5.5-million shortfall to balance its budget.

The City Hall memo, which was made available this week, reported that five companies had obtained occupancy permits from the city without making a required payment of park and recreation in-lieu fees.

Silver said he will recommend that the City Council on Monday night authorize an outside audit of the city’s Community Development Department, which is responsible for making sure that bonds have been posted before final inspection of projects.

But Planning Director Howard Zelefsky said Tuesday that Pacific Coast Homes, one of the names on the list, claimed that it donated more land than required on a previous development and therefore was not required to pay in-lieu fees totaling more than $500,000. Zelefsky said he believes the firm is correct, but will look into it further.

City Treasurer Don Watson said he has written to the four other companies, asking them to pay the fees in question. He also has asked Pacific Coast Homes to elaborate on its contention of land credit, Watson said.

City Councilwoman Grace Winchell said: “If we are not collecting the fees, we need to look into what procedures are creating this. We are not in a position to forgive fees even for short periods of time.

“The city turns off customers’ water for a $50 bill but lets developer fees in the hundreds of thousands of dollars slip through the crack,” she said. “This is very sloppy.”