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12-13-2011 CC Rpt A07 COUNCIL AGENDA STAFF REPORT CITY CLyyERKUSE ONLY RECMeeting Date: December 13. 2011 Public Hearing: ❑ 2011 DEC -6 AM 8: 08 Discussion Item: ❑ Consent Item: OF IC CITY CLERK CHINO HILLS DECEMBER 6, 2011 TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: CITY MANAGER SUBJECT: PUBLIC DISCLOSURE STATEMENTS FOR DEVELOPMENT FEES RECOMMENDATION: It is recommended that the City Council: 1. Review and accept Public Disclosure Statements for the Park and Recreation Facilities Fee, Parkland (Quimby in Lieu) Fee, Existing Infrastructure Facilities Fee, General City Facilities Fee, Traffic Facilities Fee, Storm Drain Facilities Fee, Water Facilities Fee and Sewer Facilities Fee. 2. Approve the findings that the City needs to retain the funds collected prior to July 1, 2006,for the construction of current and future projects for the Parkland (Quimby in Lieu) fee ($894,030), Traffic Facilities Fee ($792,595), Storm Drain Facilities Fee ($388,245), Water Facilities Fee ($2,924,492), and Sewer Facilities Fee ($1,762,714). BACKGROUND/ANALYSIS: In accordance with Government Code Section 66006(b), the City is required to make available on an annual basis, the collection, expenditure, and balance of the development fees account. The disclosure of the information to the public needs to be made within 180 days after the end of the fiscal year, and the City Council needs to review the disclosure statements not less than 15 days after the disclosure is made. The disclosures have been on file for public viewing in the City Clerk and the Finance Departments as of November 28, 2011. The disclosure statements are attached to this report as Exhibits A through I. In addition, Government Code Section 66001(d) requires the City Council to make findings if any portion of a development fee remains unexpended or uncommitted five or more years after initial deposit of the fee. In the event such a finding occurs, the City needs to demonstrate a reasonable relationship between how the fee is to be used and the purpose for which it was charged. For the fiscal year ended June 30, 2011, findings are required in the Parkland (Quimby in Lieu) Fee, Traffic Facilities Fee, Storm Drain Facilities Fee, Water Facilities Fee, and Sewer Facilities Fee Funds for the following portion: 1— q7 AGENDA DATE: DECEMBER 13, 2011 SUBJECT: PUBLIC DISCLOSURE STATEMENTS FOR DEVELOPMENT FEES PAGE TWO Portion held for Fund Balance as of more than Development Fee Category 06/30/11 five years Parkland (Quimby in Lieu) Fee $ 1,179,515 $ 894,030 Traffic Facilities Fee 1,009,807 792,595 Storm Drain Facilities Fee 4,932,353 388,245 Water Facilities Fee 5,117,531 2,924,492 Sewer Facilities Fee 3,694,942 1,762,714 The development fees are providing funding for eight capital projects currently under construction or are anticipated to be under construction in the 2011-12 fiscal year. Exhibit I provides a listing of the capital projects, total project cost and detail of the funding sources. The Storm Drain Facilities Fee is providing funding for three capital projects in the amount of $2,814,500 of which $1,243,613 already spent. The Water Facilities Fee is providing funding for various recycled waterline/system capital projects in the amount of $7,163,100 of which $3,997,105 already spent. The Sewer Facilities Fee is providing funding for one capital project in the amount of $210,000, as well as accumulating funds for various projects identified in the Sewer Master Plan. In addition, funds in the Parkland (Quimby in Lieu) Fee and Traffic Facilities Fee are being accumulated towards future eligible projects. REVIEW BY OTHERS: This agenda item has been reviewed by the City Attorney and the City Engineer. FISCAL IMPACT: There is no financial impact if the findings for the Parkland (Quimby in Lieu) fee, Traffic Facilities Fee, Storm Drain Facilities Fee, Water Facilities Fee and Sewer Facilities Fee programs are approved by the City Council. The City will be able to retain the deposits for future capital projects use. If the findings are not approved, the City will be required to refund the fees held for more than five years as described in Government Code Section 66001(e). Respectfully submitted, Recommended by: ,te& fit, 11 Michael S. Ffeager, City Manager Jut/f3) Laa'ster, Finance Director MSF:JRL:BS:MH:ddk..// Attachments: Disclosure Statements - Exhibits A-I 1-2 EXHIBIT A CITY OF CHINO HILLS PUBLIC DISCLOSURE STATEMENT PARK&RECREATION FACILITIES FEE FOR THE FISCAL YEAR ENDED JUNE 30, 2011 Beginning fund balance $ (1,950517.22) Income: Park&recreation facilities fee $ 61,761.00 Apportioned interest (2,239.13) (a) 59521.87 Total Resources Available (1,891,395.35) Expenditures: Debt service payments 23537.68 (b) Administrative overhead 19,500.00 Total Expenditures 43,437.68 Ending fund balance June 30, 2011 $ (1,934,833.03) Notes: Interfund Loans Liability: New Community Park $ 2,385,750.00 Principal Loan Payments in FY 10-11 New Community Park $ 300,000.00 (a) The apportioned interest is negative due to the reversal of fair market value adjustment for the prior year. The reversal of fair market value adjustment for the prior year is greater than the interest received for the current year. (b) This amount represents interest expenditures paid on the interfund loan. Interest charges are based on the City's composite interest rate earned on investments. 1-3 EXHIBIT B CITY OF CHINO HILLS PUBLIC DISCLOSURE STATEMENT PARKLAND (QUIMBY IN-LIEU) FEES FOR THE FISCAL YEAR ENDED JUNE 30, 2011 Beginning fund balance $ 1.151.400.55 Income: Quimby in-lieu fees collected $ 17,340.00 Apportioned interest 12,714.61 30,054.61 Total Available 1.181,51510 Expenditures: Administrative overhead 2.000,00 Total Expenditures 2,008.08 Ending fund balance June 30, 2011 $ 1.178.515.16 1-4 EXHIBIT C CITY OF CHINO HILLS PUBLIC DISCLOSURE STATEMENT EXISTING INFRASTRUCTURE FEE FOR THE FISCAL YEAR ENDED JUNE 30,2011 Beginning fund balance $ 1,860,452.38 Income: Existing infrastructure fee $ 51,665.22 Assessment District lien payoff 2,088.42 Assessment District credits 178,810.99 Developer Agreement credits 61,382.53 (c) Apportioned interest 4,712,48 298,659.64 Total Available 2,159,112.02 Expenditures: Developer Reimbursement Agreement 4,337,402.16 (b) Interest on Developer Agreement Credit 61,382.53 (c) Assessment District credits 180,899.41 (a) Administrative overhead 17,442.35 Total Expenditures 4,597,126.45 Ending fund balance June 30,2011 $ (2,438,014.43) Notes: Outstanding Interfund Obligation based on agreement 99-176(Richland/Pinehurst),00-48(Rhodes)and 00-49 (Griffin): General Facilities Fee $ 761,482.00 Traffic Facilities Fee 140,597.00 Storm Drain Facilities Fee 681,655.00 Water Facilities Fee 3,560,977.00 Sewer Facilities Fee 292,529.62 Interfund Obligation outstanding at June 30,2011 $ 5,437,240.62 Outstanding Interfund Obligation based on agreement 95-34(LaBand): Storm Drain Facilities Fee $ 12,719.28 Water Facilities Fee 38,543.68 Sewer Facilities Fee 1,864.63 Interfund Obligation outstanding at June 30,2011 $ 53,127.59 (a) Amounts represent assessment district credits taken by the developers at the time when permits were pulled. As a result,outstanding development related obligations were reduced by the credits taken. (b) Amounts represent partial or full payments of obligations per developer agreements(A08-65,A87-638/97-18, A97-15,A91-976,&A99-176) (c) Amounts represent interest component for agreements A91-976,A99-176,A00-48,and A00-49. 1-5 EXHIBIT D CITY OF CHINO HILLS PUBLIC DISCLOSURE STATEMENT GENERAL CITY FACILITIES FEE FOR THE FISCAL YEAR ENDED JUNE 30,2011 Beginning fund balance $ 1,128,321.98 Income: General city facilities fee $ 45,670.50 Apportioned interest 2,808.88 48,479.38 Total Available 1,176,801.36 Expenditures: Administrative overhead 12,600.00 Total Expenditures 12,600.00 Ending fund balance June 30, 2011 $ 1,164,201.36 Notes: The ending balance at June 30, 2011 includes a General City Facilities Fee long term receivable of$761,482 from Existing Infrastructure Fees Fund, in accordance with developer agreement 99-176(Richland/Pinehurst), 00-48 (Rhodes) and 00-49(Griffen). 1-6 EXHIBIT E CITY OF CHINO HILLS PUBLIC DISCLOSURE STATEMENT TRAFFIC FACILITIES FEE FOR THE FISCAL YEAR ENDED JUNE 30, 2011 Beginning fund balance $ 1,003,965.31 Income: Traffic facilities fee $ 5,635.50 Apportioned interest 6,106.41 11,741.91 Total Available 1,015,707.22 Expenditures: Administrative overhead 5,900.00 Total Expenditures 5,900.00 Ending fund balance June 30,2011 $ 1,009,807.22 Notes: The ending balance at June 30,2011 includes a Traffic Facilities Fee long term receivable of$140,597 from Existing Infrastructure Fees Fund in accordance with developer agreements 99-176 (Richland/Pinehurst),00-48(Rhodes) and 00-49(Griffen) 1-7 EXHIBIT F CITY OF CHINO HILLS PUBLIC DISCLOSURE STATEMENT STORM DRAIN FACILITIES FEE FOR THE FISCAL YEAR ENDED JUNE 30,2011 Beginning fund balance $ 6,015240.26 Income: Storm drain facilities fee $ 35,309.40 Apportioned interest 42,362.41 77,671.81 Total Available 6,092,912.07 Expenditures: Administrative Overhead 14,500.00 Debt Service Payment 345,090.25 (a) Capital improvement projects English Channel Improvements 1,842.69 Los Serranos Channel Mitigation Project 130.00 Peyton Drive/Eucalyptus Avenue Project 798,995.95 Total Expenditures 1,160,558.89 Ending fund balance June 30,2011 $ 4,932,353.18 Notes: Interfund loan Receivable: Kline/Maloof Land Acquisition $ 2,391,036.73 The ending balance at June 30, 2011 includes a total Storm Drain Facilities Fee long term receivables of $701,610.96 from the Economic Incentive Program, in accordance with agreements 08-65 (Crossroads Marketplace), Obligations Receivable,and the Existing Infrastructure Fee Fund, in accordance with developer agreements 99-182(Lennar/Rolling Ridge), 99-176(Richland/Pinehurst), 00-48 (Rhodes)and 00-49(Griffen). (a) This amount represents reimbursement of the Principal and Interest payments of the 2007 COPs from the Storm Drain Facilities Fee Fund for the portion of the English Channel Improvements paid by the General Fund to date. 1-8 EXHIBIT G CITY OF CHINO HILLS PUBLIC DISCLOSURE STATEMENT WATER FACILITIES FEE FOR THE FISCAL YEAR ENDED JUNE 30,2011 Beginning fund balance $ 11,463,534.15 Income: Water facilities fee $ 174,617.00 Apportioned interest 49,185.00 Other revenue 4,330.00 228,132.00 Total Available 11,691,666.15 Expenditures: Debt service payments 23,198.69 (a) Administrative overhead 57,000.00 Professional services 16,754.90 Developer Reimbursement Agreement 3,346,356.00 (b) Capital improvement projects Additional pump at Soquel Canyon Pump Station 100,523.97 High zone recycling water system 2,618,077.44 Intermediate zone recycled water reservoir 69,874.00 Peyton Drive/Eucalyptus Avenue Project 339,037.65 Reservoir No. 18 402.50 Supervisory control and data acquisition system(SCADA) 2,910.00 Total Expenditures 6,574,135.15 Ending fund balance June 30,2011 $ 5,117,531.00 Notes: Interfund Loans Liability: Monte Vista Interconnect $ 1,224,900 Pellisier well modifications and Los Serranos Golf Course conversion 286,300 Monte Vista Water Distribution Capacity 800,900 Interfund loan amount outstanding at June 30,2011 $ 2,312,100 Principal Loan Payments in FY 10-11 Monte Vista Interconnect $ 175,000 Pellisier well modifications and Los Serranos Golf Course conversion 40,900 Monte Vista Water Distribution Capacity 114,400 $ 330,300 The ending balance at June 30,2011 includes a total Water Facilities Fee long term receivables of$3,613,620.18 from the Economic Incentive Program,in accordance with agreements 08-65(Crossroads Marketplace),Obligations Receivable,and the Existing Infrastructure Fee Fund,in accordance with developer agreements 99-176(Richland/Pinehurst),00-48(Rhodes)and 00-49(Griffen). (a) This amount represents interest expenditures paid on the Interfund loans. Interest charge are based on the City's composite interest rate earned on investments. (b) This amount represents the settlement for agreement#A11-46,section 2.1.4 payable to Chino Hills Land West. 1-9 EXHIBIT H CITY OF CHINO HILLS PUBLIC DISCLOSURE STATEMENT SEWER FACILITIES FEE FOR THE FISCAL YEAR ENDED JUNE 30, 2011 Beginning fund balance $ 5,101,125.02 Income: Sewer facilities fee $ 30,289.02 Apportioned interest 41,268.33 71,557.35 Total Available 5,172,682.37 Expenditures: Administrative overhead 2,100.00 Developer Reimbursement Agreement 1,475,640.00 (a) Total Expenditures 1,477,740.00 Ending fund balance June 30, 2011 $ 3,694,942.37 Notes: lnterfund Loan Receivable: Kline/Maloof Land Acquisition $ 2,391,036.73 The ending balance at June 30, 2011 includes a total Sewer Facilities Fee long term receivables of $294,708.60 from the Economic Incentive Program, in accordance with agreements 08-65 (Crossroads Marketplace), Obligations Receivable, and the Existing Infrastructure Fee Fund, in accordance with developer agreements 99-176 (Richland/Pinehurst), 00-48 (Rhodes) and 00-49(Griffen). (a) This amount represents the settlement for agreement#A11-46, section 2.1.4 payable to Chino Hills Land West. 1-10 EXHIBIT I CITY OF CHINO HILLS PUBLIC DISCLOSURE STATEMENT DETAIL OF CURRENT AND FUTURE CAPITAL PROJECTS FOR THE FISCAL YEAR ENDED JUNE 30,2011 PROJECTED DATE TO DATE OF FUNDING DESCRIPTION TOTAL COST COMMENCE COMPLETION SOURCE PERCENT AMOUNT STORM DRAIN FACILITIES FEE English Channel Improvement 5,449,000 FY02/03 FY 11112 Storm Drain Facilities Fee 27% 1,497,000 Grant 65% 3,567,800 Community Facilities District No.2 7% 364,200 Los Serranos Channel Mitigation Project 1,031,200 FY00/01 FY11/12 Storm Drain Facilities Fee 42% 434,200 General Fund 12% 122,400 Community Facilities District No.5 46% 474,600 Peyton Drive/Eucalyptus Avenue Project 23,946,500 FY97/98 FY 11/12 Storm Drain Facilities Fee 4% 883,300 General Fund 11% 2,725,500 Measure I 5% 1,102,000 Traffic Facilities Fee 17% 4,044,100 Prop 1B Fund 5% 1,265,400 Grant 43% 10,411,300 Water Fund 1% 150,000 Water Facilities Fee 1% 340,000 Community Facilities District No,2 13% 3,024,900 Total Storm Drain Facilities Fee 2,814,500 WATER FACILITIES FEE High Zone Recycled Water System 3,207,000 FY 05/06 FY 11/12 Water Facilities Fee 97% 3,207,900 Developer Contribution 3% 89,100 Intermediate Zone Recycled Water Reservoir 2,588,400 FY06/07 FY 11/12 Water Facilities Fee 100% 2,688,400 Peyton Drive/Eucalyptus Avenue Project 23,946,500 FY97/98 FY 11/12 Water Facilities Fee 1% 340,000 General Fund 11% 2,725,500 Measure I 5% 1,102,000 Traffic Facilities Fee 17% 4,044,100 Storm Drain Facilities Fee 4% 883,300 Prop 1B Fund 5% 1,265,400 Grant 43% 10,411,300 Water Fund 1% 150,000 Community Facilities DisMct No.2 13% 3,024,900 Reservoir No,18 194,500 FY03/04 FY 11/12 Water Facilities Fee 100% 194,500 Supervisory Control&Data Acquisition System-Water 832,300 FY 99/00 FY 11/12 Water Facilities Fee 100% 832,300 Total Water Facilities Fee 7,163,100 SEWER FACILITIES FEE Supervisory Control&Data Acquisition System-Sewer 210,000 FY 10/11 FY 11/12 Sewer Facilities Fee 100% 210,000 Total Sewer Facilities Fee 210,000 1 -11