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HomeMy WebLinkAbout2012-2013 Annual Compliance Reports for the Planned Local Dr Dept. ID PW14-016 Page 1 of 2 Meeting Date: 3/17/2014 CITY OF HUNTINGTON BEACH 9 REQUEST FOR. CITY COUNCIL ACTION MEETING DATE: 3/17/2014 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Travis K. Hopkins, PE, Director of Public Works SUBJECT: Approve Annual Compliance Reports for the Planned Local Drainage Fund, Sanitary Sewer Facilities Fund and Fair Share Traffic Impact Mitigation Program 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 include Planned Local Drainage Facilities, Sanitary Sewer Facilities and Fair Share Traffic Impact Mitigation Fee Program. Financial Impact: Not applicable. Recommended Action: A) Approve the Planned Local Drainage Facility Fund Annual Compliance Report for Fiscal Year 2012/13; and, B) Approve the Sanitary Sewer Facilities Fund Annual Compliance Report for Fiscal Year 2012/13; and, C) Approve the Fair Share Traffic Impact Mitigation Fee Program Annual Compliance Report for Fiscal Year 2012/13. Alternative Action(s): Recommend revisions to any of the reports. Analysis: , Three developer fee compliance reports are presented for approval. Use of the funds is restricted to making system improvements as outlined in the respective master plans for each of the funds. 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 February 19, 2014, and recommended approval by a vote of 7-0. Environmental Status: Not applicable 1 -41- Item 3. - I Dept. ID PW14-016 Page 2 of 2 Meeting Date:3/17/2014 Strategic Plan Goal: Improve the City's infrastructure Attachment(s): 1. Annual Drainage Fund Report 2. Annual Sewer Facilities Fund Report 3. Annual Traffic Impact Fee Fund Report Item 3. - 2 HB -4-7- ATTACHMENT # 1 •�J CITY OF HUNTINGTON BEACH ° PUBLIC WORKS COMMISSION REQUEST FOR ACTION Item No. PW 14-04 SUBMITTED TO: Chairperson and Members of the Commission SUBMITTED BY: Travis K. Hopkins, PE, Director of Public Works DATE: February 19, 2014 SUBJECT: Planned Local Drainage Facilities Fund Annual Compliance Report Fiscal Year 2012113 Statement of Issue: In accordance with Section 14.48 of the Huntington Beach Municipal Code (HBMC), the Public Works Department is required to prepare an annual report of the status of the Planned Local Drainage Facility Fund (Drainage Fund) for the City Council. The process provides an opportunity for the Public Works Commission to review planned projects, revenues and expenditures under the program. Funding Source: No funding is required for this action. Impact on Future Maintenance Costs: Not applicable. Recommended Action: Motion to recommend to the City Council the approval of the Planned Local Drainage Facility Fund Compliance Report for Fiscal Year 2012/13. Alternative Action(s): Recommend revisions to the report. Analysis: The Planned Local Drainage Facilities Fund (Drainage Fund) is a development fee that is restricted to use for drainage system enhancements. Section 14.48.050 (d) requires the City Council to review the status of compliance with this Chapter, including the revenues collected and the funds expended. The following information conforms to the requirements of the HBMC regarding revenues and expenditures of the Drainage Fund. Although the reporting requirement became effective with the adoption of the revised ordinance in September 2006, the Drainage Fund has existed since 1975. The following information covers Fiscal Year 2012/13. 1AB _4;_ Item 3. - 3 Fiscal Status The Drainage Fund advanced $250,000 to the Redevelopment Agency for improvements in 1987. With interest accrual of $601 ,854, the debt amount is currently $851,854. As a result, the Fund maintained a negative balance over the last ten years. In Fiscal Year 2012/13, revenue from developer fees exceeded expectations and the Drainage Fund ended the year with a positive balance of $40,917. On June, 29, 2011 , the State of California enacted ABl X26, which dissolves redevelopment agencies and designates Successor Agencies to "wind-down" activities of the former redevelopment agencies under supervision of newly created Oversight Boards. On January, 31, 2012, the City's Redevelopment Agency presented an initial draft Recognized Obligation Payment Schedule (ROPS) to the Successor Agency. In this case, the City has elected to become the Successor Agency. The debt noted above is included in the list of obligations; however, no payments are scheduled to the Drainage Fund within the presented time frame. Revenues Revenue for FY 2012/13 from development was $316,999. Interest to the fund was debited for a reduction of ($952). Now that the fund is at a positive balance, interest revenue will be credited going forward. Expenditures No expenditures were made in FY 2012/13. Staff will monitor the fund as revenue is received and assess the need for future drainage projects. Conformance with Program Goals and Objectives The Drainage Fund is intended to implement the goals and objectives of the current Drainage Master Plan. Funds collected and deposited to the fund may be expended solely for the construction or reimbursement for construction of drainage facilities. The Fund is in compliance with these requirements. Item 3. - 4 TIB -44- Beginning Balance 10/12 ($275,130) Revenue Developer fees 316,999 Interest earned (952) Total Revenue $ 316,047 ;Expenditures. _.... Total Expenditures 0 Beginning Balance 10/13 $40,917 Budgeted revenues 90,000 Budgeted expenditures 0 Estimated Balance 10/14 $130,917 Rate Schedule Fiscal Year 2012/13 Drainage Fees: $13,880 per acre. Environmental Status: Not applicable Attachments: None I1 -45- Item 3. - 5 ATTACHMENT 2 ®J i CITY OF HUNTINGTON BEACH PUBLIC WORKS COMMISSION REQUEST FOR ACTION Item No. PW 14-03 SUBMITTED TO: Chairperson and Members of the Commission SUBMITTED BY: Travis K. Hopkins, PE, Director of Public Works DATE: February 19, 2014 SUBJECT: Sanitary Sewer Facilities Fund Annual Compliance Report Fiscal Year 2012113 Statement of Issue: In accordance with Section 14.36 of the Huntington Beach Municipal Code (HBMC), the Public Works Department is required to prepare an annual report of the status of the Sanitary Sewer Facilities Fund (Sanitary Sewer Fund) for the City Council. The process provides an opportunity for the Public Works Commission to review planned projects, revenues and expenditures under the program. Funding Source: No funding is required for this action. Impact on Future Maintenance Costs: Not applicable. Recommended Action: Motion to recommend to the City Council the approval of the Annual Sanitary Sewer Facilities Fund Compliance Report for Fiscal Year 2012/13. Alternative Action(s): Recommend revisions to the report. Analysis: The Sanitary Sewer Fund is a development fee that is restricted to use for sewer capacity enhancements. The fee is unrelated to the monthly Sewer Service Charge used for operations and maintenance of the existing sewer system. Section 14.36.070 (d) requires the City Council to review the status of compliance with this Chapter, including the revenues collected and the funds expended. The following information conforms to the requirements of the HBMC regarding revenues and expenditures of the Sanitary Sewer Fund. Although this requirement became effective with the adoption of the revised ordinance in Item 3. - 6 HB -146- July 2003, the Sewer Facilities Fund has existed since 1988. The following information covers Fiscal Year 2012/13. Fiscal Status Revenues and expenditures are summarized below for the past fiscal year. The fund balance as of September 30, 2013 was $4,524,555. Not included in this figure are monies owed the Sanitary Sewer Facilities Fund by the Huntington Beach Redevelopment Agency. The original advance was $131 ,000. With interest accrual of $318,853, the debt amount for the fiscal year end was $449,853. On June, 29, 2011 , the State of California enacted AB1 X26, which dissolves redevelopment agencies and designates Successor Agencies to "wind-down" activities of the former redevelopment agencies under supervision of newly created Oversight Boards. On January, 31 , 2012, the City's Redevelopment Agency presented an initial draft Recognized Obligation Payment Schedule (ROPS) to the Successor Agency. In this case, the City has elected to become the Successor Agency. The debt noted above is included in the list of obligations; however, no payments are scheduled to the Sanitary Sewer Facilities Fund within the presented time frame. Revenues Total revenue for FY 2012/13 was $2,727,171 . Residential and commercial developer fees contributed $93,737 and $2,607,783 respectively. Miscellaneous revenue totaled $24,620. The fund was credited $1 ,031 in interest. Expenditures Fiscal Year 2012/13 Expenditures for the fund in FY 12/13 included $73,359 in salaries charged to the Trinidad Lift Station and Warner Avenue Gravity Sewer projects and $108,791 in engineering design related to the Trinidad station for a total of $182,150. Fiscal Year 2013/14 Budgeted expenditures for the current fiscal year include $486,960 in encumbrance rollovers and $400,000 in new funds for lift station design. In addition, $392,000 for Trinidad Lift Station was carried over from FY 2012/13 to FY 2013/14. Total budgeted expenditures are $1 ,278,960. HB -47- Item 3. - 7 Conformance with Program Goals and Objectives The Sanitary Sewer Facilities Fund is intended to implement the goals and objectives of the current Sewer Master Plan. Funds collected and deposited to the fund may be expended solely for the construction or reimbursement for construction of sanitary sewer facilities. The Fund is in compliance with these requirements. Environmental Status: Not applicable. Summary of Revenue and Expenditures Sanitary Sewer Facilities Fund Beginning Balance 10/12 $1,979,534 Revenue Developer fees (residential) 93,737 Developer fees (commercial) 2,607,783 Miscellaneous revenue 24,620 Interest earned 1,031 Total Revenue $ 2,727,171 EXpel4d9tUrE.'$ Salaries and Benefits ( 3,359) Design services (108,791 Total Expenditures ( 182,150) Beginning Balance`10/13 $4524,555 Budgeted revenues 115,000 Budgeted expenditures (11278,960) Estimated Balance 10114 $3,360,595 Item 3. - 8 f 17 B -4 8- Rate Structure Fiscal Year 2011/12 r �!�'Y SIE l CC3NN T!©N IF S Eff'ecti clober �� 2flI a Single Family Dwelling Unit $ 2,256 Multiple Family Dwelling Unit 1,845 Non �sidential based op water eter size etationship to qu�u t u✓elling Unit, ©�.) ;y 410 I�et+ r Size &Typ g � . . arge 3/4" 1 $ 2,564 1" 2 $ 5.129 1 '/2" 3 $ 7.693 2" 5 $ 12,824 3" 11 $ 28,212 4" Compound 17 $ 43,599 4" Domestic &Turbine 33 $ 84,634 6" Compound 33 $ 84,634 6" Domestic &Turbine 67 $ 171,830 8" Domestic 117 $ 300,061 10" Domestic 183 $ 466,642 Attachments: None 1_1B -49- Item 3. - 9 ATTACHMENT #3 fL- ®J J CITY OF HUNTINGTON REACH �- PUBLIC WORKS COMMISSION REQUEST FOR ACTION Item No. PW 14-05 SUBMITTED TO: Chairman and Members of the Commission SUBMITTED BY: Travis K. Hopkins, PE, Director of Public Works DATE: February 19, 2014 SUBJECT: Fair Share Traffic Impact Fee Program Annual Report for Fiscal Year 2012/13 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. The process also provides an opportunity for the Public Works Commission to review revenues and expenditures under the program. Funding Source: No funding is required for the recommended action. All Traffic Impact Fee funds are maintained in a separate account from other City operation funds. Recommended Action: Motion to recommend approval of the 2012/13 Traffic Impact Fee Annual Report to the City Council. Alternative Action(s): Recommend revisions to the report elements or request additional information. Analysis: The Fair Share Traffic Impact Fee (TIF) 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 and that these developments pay their fair share towards short and long term transportation improvements. During the FY 201 1/12 fiscal year, the City Council approved an update of the Fair Share Traffic Impact Fee including minor revisions to the Municipal Code and the fee structure. The following sections comprise the annual report. Item 3. - 10 HB -50- Fiscal Status This report presents the fund information based on the City's preliminary audit for Fiscal Year 2012/13. The balance for the fund at the beginning of the fiscal year was $266,282. During FY 2012/13, Traffic Impact Fee fund recognized $1,405,892 in revenues including the following: ® Land Sales $ 778,978 ■ Impact Fees Paid $ 624,525 ® Interest and Miscellaneous $ 1,389 Expenditures from the fund totaled $165,696 including, $42,466 in personnel salaries and benefits related to program and project administration, $15,958 in professional services and $97,368 in litigation costs related to the Garfield Avenue Widening settlement. The fund balance at the end of the fiscal year was $1,506,478. Budgeted projects for FY2012/13 included Atlanta Avenue Widening and Brookhurst/Adams Intersection Improvements, the latter of which was carried over to the current fiscal year's CIP. Planned Capital Projects, Studies and Expenditures The City Council approved funding for Fiscal Year 2013/14 in the amount of $180,000 for a study of the potential reconfiguration of the Beach/Ellis/Main Street intersection to improve traffic flow efficiency and reduce congestion. In addition, Council also approved the carry over of $88,838 for the aforementioned Brookhurst/Adams Intersection Improvements. Budgeted expenditures for FY 13/14 also include $40,412 in encumbrances carried over from FY 12/13, bringing the total budget for the year to $309,250. There are a few projects envisioned in the Traffic Impact Fee program that require substantial funding. Staff has recommended limited project programming is over the past two years to allow the fund balance to increases to a level sufficient to fund larger projects. Staff will continue to look for and prioritize opportunities to obtain grant funds for TIF eligible projects and consider use of TIF funds as local matching funds. Staff anticipates the possibility of funding a portion of the upcoming Atlanta Widening right-of-way and construction phase with Traffic Impact Fee funds. This will be more fully presented in the FY 2014/15 Capital Improvement Program as it develops. Capital Project Reimbursements During the FY 2012/13 Fiscal Year, staff worked to dispose of excess real property owned by the Traffic Impact Fee fund. The sale of two properties were finalized during the fiscal year and only one lot remains. The lot is relatively small and no 1-T B --1- Item 3. - 11 pending sale is expected in the current fiscal year. The overall assessed value of the real estate asset is between $100,000 and $180,000. 2012/13 Fund Balance Including Assets Final Audited Fund Balance $1 ,506,478 Real Estate Assets (low estimate) $ 100,000 Total $1,606,478 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 Fee program. Item 3. - 12 11B -52-