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 system for providing child care. A lack of adequate child care facilities in the City will have an adverse effect 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 Chapter 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 Chapter 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 cost of the child care facility or portion of the facility attributable to the development on which the fees are imposed.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)
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.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)
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 9.65.040 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.
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 Services 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 Chapter 9.51 and Motel as defined at Santa Monica Municipal Code Chapter 9.51, 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 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 Chapter 9.51, or any successor legislation.
Project.
Office, retail, hotel development having a gross new or additional floor area of 7,500 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 Chapter 9.52, 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 9.65.050 hereof, subsequent changes in use, project remodels or tenant improvements that increase the demand for 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 Chapters 9.51 and 9.52, 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 goods as defined in Chapter 9.51, or any successor legislation.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)
For any project defined herein, the developer shall pay a child care linkage fee or participate in the construction or establishment of child care facilities in accordance with the following:
A. 
Child Care Linkage 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:
a. 
Office: $5.27 per square foot.
b. 
Retail: $3.77 per square foot.
c. 
Hotel: $2.64 per square foot.
3. 
For mixed residential/nonresidential development, the sum of the fee required for each component as set forth above in paragraphs 1 and 2 of this subsection.
B. 
Timing of Fee Payment.
1. 
The project applicant shall pay fees according to the schedule of fees in place on the date the fees are paid, except that the project applicant for a project that has vested rights under State or local law shall pay the applicable fees in accordance with those vested rights.
2. 
The Child Care Linkage fee shall be paid in full upon issuance of certificate of occupancy or final inspection, whichever occurs last.
C. 
Facilities In Lieu of Fees. The developer of a residential or nonresidential project may satisfy the requirement for the payment of fees by agreeing to participate in the construction or establishment of 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 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 Section may be appealed to the City Council if such appeal is filed within 14 consecutive calendar days from the date that the decision is made in the manner provided in Section 9.37.130.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015; amended by Ord. No. 2792CCS, 10/8/2024)
A. 
A developer of any project subject to the fee described in Section 9.65.040(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.
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 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 Section 9.37.130. 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.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)
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 Chapter 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.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)
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, 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.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)
Each fee imposed by this Chapter shall be adjusted automatically on July 1st 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 months.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)
Except for the first year that this Chapter is in effect, within one hundred eighty 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).
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)
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 refund may constitute a waiver of any right to a refund.
B. 
Fees collected pursuant to this Chapter which remain unexpended or uncommitted for 5 or more fiscal years after deposit into the reserve account may be refunded as provided by Government Code Section 66001(e) and (f).
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)
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 Chapter shall be considered enabling and directive in this regard.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)
The City Manager, or her/his designee, is authorized to 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 9.65 of the Santa Monica Municipal Code or as otherwise designated by the City Clerk. All such administrative regulations or guidelines must be in writing.
(Added by Ord. No. 2486CCS §§ 1, 2, adopted June 23, 2015)