HomeMy WebLinkAboutFair Share Traffic Impact Mitigation Fee Program Annual CompCouncil/Agency Meeting Held:
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Council Meeting Date: April 18, 2011
Department ID 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.
HB -255- 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 -256-
ATTACHMENT #3
�`J J CITY OF HUNTINGTON BEACH
g PUBLIC WORKS COMMISSION
REQUEST FOR ACTION
Item No. PW 1 1-07
SUBMITTED TO: Chairman Siersema and Members of the Commission
SUBMITTED BY: Travis K. Hopkins, PE, Director of Public Works
DATE: March 16, 2011
SUBJECT: Fair Share Traffic Impact Fee Program Annual Report for Fiscal
Year 2009/10
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 2009/10 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.
Item 6. 4 HB -258-
Fiscal Status
This report presents the fund information based on the City's final audit for Fiscal
Year 2009/10. The balance for the fund at the beginning of the fiscal year was
$626,236. During FY 2009/10, Traffic Impact Fee fund recognized $91,716 in
revenues including the following:
■ Grant reimbursements $28,281
■ Impact Fees. Paid $76,684
■ Interest (negative accrual) ($13,249)
Expenditures from the fund totaled $1.25 million during the year, including
$660,000 in capital expenditures related to the Newland Avenue, Atlanta
Avenue and Heil Avenue widening projects and $590,000 in personnel and
professional services. The fund balance at the end of the fiscal year was a
negative $532,833.
As part of staff's review of efforts funded during the 2009/10 Fiscal Year, several
instances were noted where expenditures against the fund will be reimbursed
through grants or fund transfers. These adjustments/acknowledgments are
further detailed in the Capital Project Reimbursements section. Ultimately, the
final audit for the program only recognizes "cash" balances and does not
reflect these assets. This results in the final reflected balance being negative.
The $1.25 million in expenditures for 2009/10 reflect actual payments/expenses
including the following major efforts:
• Newland Widening ($775,000)
• Atlanta Widening ($105,000)
• Design, professional services, fund administration ($370,000)
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 20010/11
due to the expected low fund balance. However, several projects are still on-
going or will accrue 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 - $269,000 TIF
• Atlanta Widening - Huntington to Delaware - $99,000 TIF
• Circulation Element Update - $86,000 TIF
HB -25- Item 6. - 5
Capital Project Reimbursements
The actual costs ' against the Traffic Impact Fee program are not accurately
reflected until full reimbursement for grants has been received. At this time, the
City is awaiting final grant reimbursement for two projects totaling $190,000. We
also have acquired real estate assets from two projects. The City had
purchased private property and the fund now owns surplus vacant lots. 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 depending on market conditions at the time.
The City has also used the Traffic Impact Fee fund as a temporary funding
location for projects funded through other programs including grants and
Proposition 42 funds. As the projects progress, grant reimbursements for
expenses and transfers from the Proposition 42 fund will be made to the Traffic
Impact Fee fund. Of the $1.25 million in expenses incurred against the program
in 2009/10, approximately $490,600 in reimbursements and transfers are
expected back into the fund.
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. Current legislation regarding Redevelopment Agencies
may also reflect the ability to reimburse these expenses in the future.
2009/10 Fund Balance Including Assets
Final Audited Fund Balance - $532,833
Reimbursable Expenses (grants) +$270,600
Reimbursable Expenses (fund transfers) +$220,000
Real Estate Assets (low estimate) +$500,000
Total +$427,167
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 6. - 6 HB -260-