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Home My WebLink AboutFiscal Year 2006/ 2007 Annual Fair Share Traffic Impact Fee E fin. Council/Agency Meeting Held Deferred/Continued to Approved ❑ Conditionally Approved ❑ Denied Cle 's Si ature Council Meeting Date. 3/17/2008 Department ID Number. PW 08-19 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEM S SUBMITTED BY: PAUL EMERY, INTERIM CITY ADMINISTRATOR PREPARED BY: TRAVIS K. HOPKINS, PE, DIRECTOR OF4'UBLIC WOR S SUBJECT: Approve Fair Share Traffic Impact Fee Annual Report for Fiscal Year 2006/07 S tatement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: In accordance with Section 17.65.130 of the Huntington Beach Municipal Code (HBMC), the Public Works Department is required to prepare an annual report of the status of the Fair Share Traffic Impact Fee Program for the City Council. Funding Source: No funding is required for this action. Recommended Action: Motion to: Approve the 2006/07 Traffic Impact Fee Annual Report. Alternative Action(s): Recommend revisions to the report elements. Analysis: The Fair Share Traffic Impact 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 intersection are maintained when new development is constructed within the city limits. The following sections comprise the annual report. REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 3/17/2008 DEPARTMENT ID NUMBER: PW 08-19 Fiscal Status This report presents the fund information based on the City's final audit for Fiscal Year 2006/07. During Fiscal Year 2006/07, $460,000 in Traffic Impact Fees was received and $1,645,000 expended. The program also received interest income and other adjustments for a closing balance of $6,717,000. Attachment 1 presents a more detailed accounting of the program balance over the past 6 years. 2006/07 Funded Efforts As detailed in the Fiscal Status section, $1,645,000 in expenditures was funded by the Traffic Impact Fee Program in 2006/07. The expenditures reflect actual payments/expenses rather than commitments for expenditures (executed contracts/awards, or budgeted capital projects). The following expenses were incurred during FY 2006/07: • Garfield Avenue Widening project near Delaware Street ($315,000) • Heil Avenue Widening project west of Beach Boulevard ($740,000) • Traffic Signal Improvements ($230,000) • Consultant Fees - Circulation Element Update and Signal Designs ($65,000) • Newland Street Widening ($27,000) • Ellis Avenue Widening east of Beach Boulevard ($108,000) • Personnel and Payroll ($100,000) Planned Capital Projects, Studies and Expenditures The Public Works Department has prepared a 5-year Capital Improvement Program which includes projects funded by the Traffic Impact Fee Program. Some of these efforts have been initiated in prior years and funds have not been fully expended prior to October 2007. There have also been construction contracts awarded since the beginning of the current fiscal year that obligated a substantial amount of Traffic Impact Fee funds. In total, these projects are expected to expend approximately $7 million in Traffic Impact Fee funds. 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 ($4.3 million TIF) • Heil Widening west of Beach Boulevard — ($1.7 million TIF) • Main/Utica/17t" Street Signal Reconstruction — ($385,000 TIF) • Atlanta Avenue Widening — Huntington Street to Delaware Street— ($688,000 TIF) Planned Capital Project Reimbursements Three projects which have been shown as expenditures (previous and planned) under the Traffic Impact Fee Program have partial funding of grant projects administered through 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. They will then be shown as additional revenues to the program. -2- 2/28/2008 2:50 PM REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 3/17/2008 DEPARTMENT ID NUMBER: PW 08-19 Grant fund portions of two projects have been expended prior to October 2007 and are expected to be reimbursed during Fiscal Year 2007/08. They are: ® Garfield Avenue Widening near Delaware Street— ($590,000) ® Heil Avenue Widening west of Beach Boulevard — ($780,000) Additional reimbursements to the Traffic Impact Fee are expected from two current projects. First, the Garfield widening project included acquisition of two entire parcels. The revenues gained from the subsequent sale of these parcels will be returned to the Traffic Impact Fee Fund. Potential revenues are estimated at $500,000 for the two parcels. The Newland Street 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 repayment schedule has not been established at this time, pending analysis of future revenue potential within the redevelopment area. Projected Program Balance Assuming that full expenditures and reimbursements will be completed within the 2007/08 fiscal year, the Traffic Impact Fee Fund is expected to have a balance reduced to approximately $2 million. This includes an assumption of less than $500,000 in new fee payments and no reimbursements from the Southeast Area Redevelopment Area for the Newland Street Widening project. 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 (Attachment 2). Completion of the planned projects implements system 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 Fee program. Public Works Commission Action: The Public Works Commission reviewed and approved the Fair Share Traffic Impact Fee report on February 20, 2008, 5-0-2 (Harlow and Kirkorn absent). Strategic Plan Goal: F-1 Create long-term financial strategies for funding the backlog of capital projects and maintenance requirements, and ensuring sufficient reserves to withstand major revenue fluctuations in order to ensure continuation of city services during economic downturns. -3- 2/28/2008 2:50 PM REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 3/17/2008 DEPARTMENT I® NUMBER: PW 08-19 1-1 Improve the City's plan for funding and completing infrastructure needs, and develop strategies for resolving crucial infrastructure problems to preserve the physical foundation of the community and enable the community's value to grow. Attachment(s): Numb-or0' bled Pao o D-e.5crip1i0 1. Traffic Impact Fee Program Fiscal Activity Summary -4- 3/3/2008 9:16 AM ATTACHMENT # 1 ATTACHMENT I Traffic Impact Fee Program Fiscal Activity Summary 10/1/01 to 9130/07 I A 2 tty-, \Z\\,054 1011/200 1011/�931 lk "'OR, 4 t 20,06 03012004%F' ABb -4111 10\U '6�63 , 1�11 All �1/20011 to 4 �,',�"x 7 a-i" A 012 Fund Balance Beginning of Year 5,941,000 6,898,000 7,448,000 7,612,000 8,985,000 7,480,000 Revenues Interest and Other 224,000 201,000 149,000 201,000 887,000 422,000 Fees 1,142,000 739,000 889,000 1,706,000 428,000 460,000 Transfers from General Fund (matching funds required in previous program) Total Revenues $ 1,366,000 i $ 940,000 $ 1,039,000 $ 1,907,000 $ 1,315,000 $ 882,000 Expenses 409,000 390,000 875,000 534,000 2,820,000 1,645,000 Difference 957,000 550,000 164,000 1,373,000 (1,505,000) (763,000) lFund Balance End of Year - 1 $ 6,898,000 1 $ 7-,-4-4-8-700-0-7$ 7,612,000 $ 8,985,000 $ 7,480,000 1 $ 6,71710001 RCA ROUTING SHEET INITIATING DEPARTMENT: Public Works SUBJECT: Approve Fair Share Traffic Impact Fee Annual Report COUNCIL MEETING DATE: March 17, 2008 RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Attached ❑ Not Applicable Resolution (w/exhibits & legislative draft if applicable) Attached ❑ Not A plicable Tract Map, Location Map and/or other Exhibits Attached Not Applicable ❑ Contract/Agreement (w/exhibits if applicable) Attached ❑ (Signed in full by the City Attorney) Not Applicable Subleases, Third Party Agreements, etc. Attached ❑ (Approved as to form by City Attorney) Not Applicable Certificates of Insurance (Approved by the City Attorney) Attached ❑ Not Applicable Fiscal Impact Statement (Unbudgeted, over $5,000) Attached ❑ Not Applicable Bonds (If applicable) Attached ❑ Not Applicable Staff Report (If applicable) Attached ❑ Not Applicable Commission, Board or Committee Report (If applicable) Attached Not Applicable ❑ Findings/Conditions for Approval and/or Denial Attached ❑ Not Applicable EXPILAHATIOH FOR P&ISSING ATTACHMENTS REVIEWED RETURNED FOR WARPED Administrative Staff ( ) Deputy City Administrator (Initial) ( ) ( ) City Administrator (Initial) ( ) ( ) City Clerk ( ) EXPLANATION FOR RETURN OF ITEM: ldw,4i�FWC OherKs,VselOW RCA Author R. 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