HomeMy WebLinkAboutFY 2010-2011 Annual Compliance Reports Planned Local Drainag 7 ,
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Council/Agency Meeting Held: a U/
Deferred/Continued to:
).Appr vet ❑ Conditionally Approved ❑ Denied ity Cler Sign t re
Council MeetingDate: March 19, 2012 Depart ID Number: PW 12-015
CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL ACTION
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 Fee 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: Motion to:
A) Approve the Planned Local Drainage Facility Fund Annual Compliance Report for Fiscal
Year 2010/11; and,
B) Approve the Sanitary Sewer Facilities Fund Annual Compliance Report for Fiscal Year
2010/11; and,
C) Approve the Fair Share Traffic Impact Mitigation Fee Program Annual Compliance Report
for Fiscal Year 2010/11.
Alternative Action(s):
Do not approve the individual compliance reports and recommend suggested revisions.
xB -125- Item 7. - 1
REQUEST FOR COUNCIL ACTION
MEETING DATE: 3/19/2012 DEPARTMENT ID NUMBER: PW 12-015
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
February 15, 2012, and recommended approval by a vote of 5-0-2.
Environmental Status: Not Applicable
Strategic Plan Goal: Improve the City's infrastructure
Attachment(s):
1. Planned Local Drainage Fund Compliance Report — Fiscal Year 2010-2011
2. Sanitary Sewer Facilities Fund Compliance Report — Fiscal Year 2010-2011
3. Fair Share Traffic Impact Mitigation Fee Program Compliance Report — Fiscal Year
2010-2011
Item 7. - 2 HB -126-
E
TTACHMENT # 1
•
CITY OF HUNTINGTON BEACH
PUBLIC WORKS COMMISSION
REQUEST FOR ACTION
Item No. PW 12-02
SUBMITTED TO: Chairman Siersema and Members of the Commission
SUBMITTED BY: Travis K. Hopkins, PE, Director of Public Works
DATE: February 15, 2012
SUBJECT: Planned Local Drainage Facilities Fund Annual Compliance
Report Fiscal Year 20 10/1 1
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
2010/11 .
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 2010/1 1 .
Item 7. - 4 HB -128-
Fiscal Status
As the result of project costs overruns for the Shields Pump Station in Fiscal Year
2001/02, the Drainage Fund maintained a negative balance of ($373,396) at the
end of the fiscal year. The Drainage Fund advanced $250,000 to the
Redevelopment Agency for improvements in 1987. With interest accrual of
$596,408, the debt amount is currently $846,408.
On June, 29, 2011 , the State of California enacted AB 1 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 draft schedule as presented shows all obligations
and a schedule of payments through June of 2012. 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 2010/11 from development was $123,953. Interest to the fund
was debited for a reduction of ($4,969).
Expenditures
No expenditures were made in 2010/1 1, or are planned for the Drainage Fund in
the foreseeable future.
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.
136&ning Balance 10110 .$492,380
Revenue
Developer fees 123,953
Interest earned 4,969
Total Revenue $ 118,984
Ex ndit"res,
Pe.. ,�
Total Expenditures 0
Beginning Balance 10/11 = x., $
37,3"396
Budgeted revenues 50,000
Budgeted expenditures 0
Estimated"Balance 10/12 Wx ($323396)
HB -129- Item 7. - 5
Rate Schedule Fiscal Year 2010/11
Drainage Fees: $13,880 per acre.
Environmental Status: Not applicable
Attachments: None
Item 7. - 6 HB -130-
H B -131- Item 7. - 7
•JJ CITY OF HUNTINGTON BEACH
PUBLIC WORKS COMMISSION
REQUEST FOR ACTION
Item No. PW 12-03
SUBMITTED TO: Chairman Siersema and Members of the Commission
SUBMITTED BY: Travis K. Hopkins, PE, Director of Public Works
DATE: February 15, 2012
SUBJECT: Sanitary Sewer Facilities Fund Annual Compliance Report
Fiscal Year 20 10/1 1
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
2010/11 .
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 7. - 8 xB -1 32-
July 2003, the Sewer Facilities Fund has existed since 1988. The following
information covers Fiscal Year 2010/1 1 .
Fiscal Status
Revenues and expenditures are summarized below for the past fiscal year. The
fund balance as of September 30, 2011 was $1,072,359.
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 $315,978 the debt amount for the fiscal year
end was $446.978.
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 draft schedule as presented shows all obligations
and a schedule of payments through June of 2012. 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 2010/11 was $164,274. Residential and commercial
developer fees contributed $31 ,458 and $120,855 respectively. Miscellaneous
revenue totaled $2,312. The fund was credited $9,649 in interest.
Expenditures
Fiscal Year 2010/1 1
Expenditures for the fund in FY 10/11 included $84,249 in salaries and $48,224 in
engineering design related to the Adams/Ranger lift station and $38,886 in
engineering and design related to the Warner Avenue Gravity Sewer project for
a total of $171,359.
Fiscal Year 201 1/12
Budgeted expenditures for the current fiscal year include $23,314 in
encumbrance rollovers, $400,000 in new funds and $190,620 in carry over funds
for design work on the Trinidad Sewer Lift Station. In addition, $525,260 for
Warner Avenue Gravity Sewer was carried over. Total budgeted expenditures
are $1,139,194
HB -133- Item 7. - 9
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.
Item 7. - 10 HB -134-
Summary of Revenue and Expenditures
Sanitary Sewer Facilities Fund
Beginning Balance 10/10 $1,079,444
Revenue
Developer fees (residential) 31,458
Developer fees (commercial) 120,855
Miscellaneous revenue 2,312
Interest earned 9,649
Total Revenue $ 164,274
,Ex eriditures :: ;.
Salaries and Benefits (84,249)
Design services 87,110
Total Expenditures ($171,359)
Beginning Balance 10/1 1 r $1,072,359
Budgeted revenues 147,310
Budgeted expenditures (1,139,194)
Estimated Balance 10112 1 $80,475
Rate Structure Fiscal Year 2010/11
,: `
Single Family Dwelling Unit $ 2,136
Multiple Family Dwelling Unit $ 1,747
1 on Resid tt,6[{ sed on wat rnet unship t n#Dwelling t n t,
ION
M. : ize & fiype M. a ..00,11
3/4" 1 $ 2,136
1" 2 $ 4,855
1 '/z" 3 $ 7,283
2" 5 $ 12,141
3" 11 $ 26,709
4" Compound 17 $ 41,276
4" Domestic &Turbine 33 $ 80,126
6" Compound 33 $ 80,126
6" Domestic &Turbine 67 $ 162,678
8" Domestic 117 $ 284,079
10" Domestic 183 $ 441,788
Attachments: None
HB -135- Item 7. - I I
ATTACHMENT #3
CITY OF HUNTINGTON BEACH
g PUBLIC WORKS COMMISSION
REQUEST FOR ACTION
Item No. PW 12-08
SUBMITTED TO: Chairman Siersema and Members of the Commission
SUBMITTED BY: Travis K. Hopkins, PE, Director of Public Works
DATE: February 15, 2012
SUBJECT: Fair Share Traffic Impact Fee Program Annual Report for Fiscal
Year 20010/1 1
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 2010/1 1 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 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.
HB _137- Item 7. - 13
Fiscal Status
This report presents the fund information based on the City's final audit for Fiscal
Year 2010/11 . The balance for the fund at the beginning of the fiscal year was
$-532,833. During FY 2010/11, Traffic Impact Fee fund recognized $683,029 in
revenues including the following:
• Grant reimbursements $33,094
■ Impact Fees Paid $99,790
■ Interest (negative accrual) ($18,272)
■ Land Sales $239,988
® Reimbursement from Prop 42 (Atlanta) $276,972
Expenditures from the fund totaled $123,376 during the year, with the majority of
those expenses ($80,934) in personnel salaries and benefits related to program
and project administration. The fund balance at the end of the fiscal year was
$26,821 .
Few projects were actually funded during FY 2010/11 under the Traffic Impact
Fee program due to the negative fund balance. Only minor efforts related to
land sales and grant reimbursements for previously completed projects were
pursued during the year.
On June, 29, 2011, the State of California enacted AB 1 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 draft schedule as presented shows all obligations
and a schedule of payments through June of 2012. The debt to the Traffic
Impact Fund is not currently broken out specifically in the schedule, but staff will
add it to the final ROPS that will be submitted to the County Auditor-Controller,
State Controller and the State Department of Finance in April.
Planned Capital Projects, Studies and Expenditures
The Public Works Department has prepared a five-year Capital Improvement
Program that has included projects funded by the Traffic Impact Fee Program in
previous years. No new projects were funded through the Traffic Impact Fee
Fund for FY 20011/12 due to the low fund balance. Small expenses for staff time
related to the administration of the fund is expected and should be less than
$10,000.
Item 7. - 14 HB -138-
Capital Project Reimbursements
The actual costs against the Traffic Impact Fee program are not accurately .
reflected until full reimbursement for grants has been received. As of the end of
the 2010/11 fiscal year, the City was awaiting final grant reimbursement for two
projects. We recently received final payment of approximately $25,000 for the
grant. We also have acquired real estate assets from two projects. The City had
purchased private property and the fund now owns surplus vacant lots. One lot
was sold during the fiscal year netting just under $240,000 back into the fund.
The City still retains other vacant lots and will look to sell those lots when it
appears as opportunities and favorable market conditions allow. These are
significant assets that could have a total value between $500,000 and
$1 ,000,000 depending on market conditions at the time.
2010/11 Fund Balance Including Assets
Final Audited Fund Balance $ 26,821
Real Estate Assets (low estimate) $500,000
Total $526,821
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.
HB -139- Item 7. - 15