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Home My WebLink About2008/2009 Fair Share Traffic Impact Mitigation Fee Annual CoCouncil/Agency Meeting Held:_ Deferred/Continued to: YLAppraved ❑ Conditionally Approved ❑ Denied Cie s Sign re Council Meeting Date: April 5, 2010 Depart m nt ID Number: PW 10-020 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Administrator PREPARED BY: Travis K. Hopkins, PE, Director of Public Works SUBJECT: Approve Developer Fee Funds Annual Compliance Reports Statement of Issue: In accordance with the Huntington Beach Municipal Code and the California Government Code, the City Council must receive annual compliance reports on facilities improvement fees collected for .development projects. The three funds with this requirement included Planned Local Drainage Facilities, Sanitary Sewer Facilities, and Fair Share Traffic Impact Mitigation Fee. Funding Source: No funding is required for the recommended action Recommended Action: Motion to: A) Approve the Planned Local Drainage Facility Fund Annual Compliance Report for Fiscal Year 2008/09 B) Approve the Sanitary Sewer Facilities Fund Annual Compliance Report for Fiscal Year 2008/09 C) Approve the Fair Share Traffic Impact Mitigation Fee Annual Compliance Report for Fiscal Year 2008/09 Alternative Action(s): Recommend revisions to any of the reports Item 7. - REQUEST FOR COUNCIL ACTION MEETING DATE: 4/5/2010 DEPARTMENT ID NUMBER: PW 10-020 Analysis: The three funds included in this report are comprised of fees paid by developers. Use of the funds is restricted to making system improvements as outlined in the respective master plans. Information contained in the reports conforms to the requirements of the Huntington Beach Municipal Code regarding revenues and expenditures in each fund. Public Works Commission Action: The Public Works Commission reviewed each report on March 17, 2010 and recommended approval by a vote of 7-0. The Commission expressed concern that the loans from the Drainage and Sanitary Sewer Funds to the Redevelopment Agency were over 20 years old and did not have a repayment schedule. Environmental Status: No applicable Strategic Plan Goal: Maintain, Improve and Obtain Funding for Public Improvements Attachment(s): Fair Share Traffic Impact Mitigation Fee Annual Report Fiscal Year 2008/09 The Fair Share Traffic Impact Mitigation Fee program is intended to implement the goals and objectives of the General Plan by providing revenue to ensure that the adopted Level of Service standards for arterial roadways and signalized intersections are maintained when new development is constructed within the City limits. The following sections comprise the annual report. Fiscal Status This report presents the fund information based on the City's final audit for Fiscal Year.2008/09. The balance for the fund at the beginning of the fiscal year was $2.24 million. During FY 2008/09, Traffic Impact Fee fund recognized $4.7 million in revenues including the following: • Grant reimbursements $2.8 million • Transfers $1 million • Impact Fees Paid $871,000 • Interest $64,000 Expenditures from the fund totaled $6.35 million during the year, including $5.8 million in capital expenditures and $530,000 in personnel and professional services. The majority of the personnel expenses were attributable to the management and inspection of the major capital projects funded by the Traffic Impact Fee fund. At the end of FY 2008/09, the Traffic Impact Fee Fund had a cash balance of $626,275. 2008/09 Funded Efforts As detailed in the Fiscal Status section, there was $6.35 million in expenditures in the Traffic Impact Fee program in 2008/09. The expenditures reflect actual payments/expenses including the following major efforts: • Garfield Widening project near Delaware ($150,000) • Heil Widening Project west of Beach Boulevard ($1 million) • Traffic Signal Improvements ($1 million) • Newland Widening ($3.8 million) • Atlanta Widening ($87,000) • Design, professional services, fund administration ($310,000) Planned Capital Projects, Studies and Expenditures The Public Works Department has prepared a five-year Capital Improvement Program which includes projects funded by the Traffic Impact Fee Program. No new projects were funded through the Traffic Impact Fee Fund for FY 2009/10 due to the expected low fund balance. However, several projects are still on- going or have accrued expenses during the current fiscal year. The following is a list of current capital improvement program projects funded all, or in part by the Traffic Impact Fee fund: • Newland Street Widening - Channel to PCH - $560,000 TIF • Atlanta Widening -Huntington to Delaware - $192,000 TIF • Circulation Element Update - $91,000 TIF Capital Project Reimbursements Three projects which have been shown as expenditures (previous and planned) under the Traffic Impact Fee program have partial funding through grants administered by the Orange County Transportation Authority (OCTA) or Caltrans. The actual costs against the Traffic Impact Fee program are not accurately reflected until full reimbursement for these grants has been received. On two projects, the City has also purchase private property and has significant surplus vacant lots. All of these are revenues or assets to the program. The majority of reimbursements from OCTA was received during FY 2008/09 and are reflected in the revenue. Some additional reimbursements are expected in the current fiscal year. The City still retains the vacant lots and will look to sell those lots when it appears to be favorable to do so. These are significant assets that could have a total value between $750,000 and $1,500,000. The Newland Widening project, north of Pacific Coast Highway, is a Redevelopment Agency project as part of the Southeast Redevelopment Area. The funding of this project through the Traffic Impact Fee fund results in the redevelopment area incurring debt to the fund. Over time, the debt is to be paid back to the Traffic Impact Fee fund. However, a payment schedule has not been established, pending analysis of future revenue potential within the redevelopment area. Projected Program Balance Assuming that full expenditures and reimbursements will be completed within the 2009/10 fiscal year, the Traffic Impact Fee fund balance is expected to be approximately $100,000, not including real estate assets and assumes no reimbursements from the Southeast Area Redevelopment Area. Conformance with Program Goals and Objectives The Traffic Impact Fee Program is intended to implement the goals, objectives and policies of the City of Huntington Beach General Plan, as stated in the Municipal Code Chapter 17.65. Completion of the planned projects implements improvements identified in the Circulation Element of the General Plan and is in conformance with the goals and objectives of the Fair Share Traffic Impact Mitigation Fee program. Summary of Revenue and Expenditures Fair Share Traffic Impact Mitigation Fund Fiscal Year 2008/09 Beginning Balance 10/08 $21240,000 Revenue Developer fees 871,000 OCTA grant reimbursement 2,800,000 Transfer from Gas Tax 1,000,000 Interest earned 64,000 Total Revenue $4,735,000 Expenditures Garfield widening @ Delaware (150,000) Heil widening west of Beach Blvd (1,000,000) Traffic Signal installations (1,000,000) Newland widening (3,800,000) Atlanta widening (88,000) Design, professional services, administration 310,000 Total Expenditures ($6,348,000) _-Beginning Balance 10/09 $627,000 Budgeted revenues 320,000 Budgeted expenditures (843,000) Estimated Balance 10/10 $104,000