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HomeMy WebLinkAboutPlanned Local Drainage Facility Fund Annual Compliance ReporCouncil/Agency Meeting Held: / Deferred/Continued to: ,Approve ❑ Conditionally Approved ❑ Denied ° Citgl4k Kgign&re Council Meeting Date: April 18, 2011 Department 1D Number: PW11-021 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 2009/10; and, B) Approve the Sanitary Sewer Facilities Fund Annual Compliance Report for Fiscal Year 2009/10; and, C) Approve the Fair Share Traffic Impact Mitigation Fee Program Annual Compliance Report for Fiscal Year 2009/10. Alternative Action(s): Do not approve the individual compliance reports and recommend suggested revisions. H -2- Item 6. - 1 REQUEST FOR COUNCIL ACTION MEETING DATE: 4/18/2011 DEPARTMENT ID NUMBER: PW11-021 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 16, 2011, and recommended approval by a vote of 7-0. The Commission expressed concern over the loans from all three funds to the Redevelopment Agency. On January 28, 2011, the City Council/Redevelopment Board approved a Cooperation Agreement, which included a promissory note memorializing indebtedness of the Redevelopment Agency and setting forth a repayment schedule for these and other loans. Environmental Status: Not applicable. Strategic Plan Goal: Enhance Economic Development Attachment(s): Item 6. - 2 HB -2- ATTACHMENT #1 ®� CITY OF HUNTINGTON BEACH PUBLIC WORKS_ COMMISSION 113 REQUEST FOR ACTION Item No. PW 11-05 SUBMITTED TO: Chairman Siersema and Members of the Commission SUBMITTED BY: Travis K. Hopkins, PE, Director of Public Works DATE: March 16, 201 1 SUBJECT: Planned Local Drainage Facilities Fund Annual Compliance Report Fiscal Year 2009/ 10 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 2009/10. 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 2009/10. HB -267- Item 6. - 13 Fiscal Status As the result of project costs overruns for the Shields Pump Station in Fiscal Year 2001 /02, the Drainage Fund maintains a negative balance of ($492,380). The Drainage Fund advanced $250,000 to the Redevelopment Agency for improvements in 1987. With interest accrual of $565,343, the debt amount is currently $815,343. Revenues Revenue for FY 2009/10 from development was $58,125. Interest to the fund was debited for a reduction of ($8,183). Expenditures No expenditures were made in 2009/10, 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. Beginning Balance 10/09 ($542,322 Revenue Developer fees 58,125 Interest earned 8,183 Total Revenue $ 49,942 Ex nciitures..t 777 3. :. Total Expenditures 0 Be' -Balance 10' $492;380 ginning/10 a,& Budgeted revenues 50,000 Budgeted expenditures 0 Estimated Balance 10/11 ($442380 Rate Schedule Fiscal Year 2009/10 Drainage Fees: $13,270 per acre. Please note: this fee is accurate for the reporting period of FY 09/10. A revised fee of $13,880/acre went into effect October 1, 2010. Environmental Status: Not applicable Attachments: None Item 6. - 14 HB -268-