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Home My WebLink AboutRes 2015-94 - Dvlpmnt Impact Fees Annual RprtCITY OF PALM DESERT FINANCE DEPARTMENT STAFF REPORT Request: Adoption of Resolution No. 2015- 94 making certain findings pursuant to Government Code Section 66001 relative to the Annual Report of Calculation of Government Code Section 66006, Development Impact Fees for the City of Palm Desert Submitted by: Paul S. Gibson, Finance Director Date: November 12, 2015 Contents: Resolution making certain findings pursuant to Government Code Section 66001 Annual Report of Calculation of Government Code Section 66006 Capital Improvement Program FY 2015-2016 Recommendation By Minute Motion, that the City Council: Receive public testimony on annual report and findings; and 2. Adopt Resolution No. 2015- 94 making certain findings pursuant to California Government Code Section 66001 and 66006. Background Following the passage of Proposition 13 in 1978, many cities began charging fees on new development to fund public improvements and services such as streets, traffic signals, parks, drainage, housing and art in public places. These fees are commonly known as development impact fees. In order to ensure that these fees were spent in a timely manner and on projects for which they were being collected, the State Legislature passed a bill known as AB 1600 (Mitigation Fee Act). This bill applies to developer fees, increased or imposed on or after January 1, 1989. AB 1600 enacts Government Code Sections 66000-66008 that generally contain four requirements: A local jurisdiction must follow the process set forth in the bill and make certain determinations regarding the purpose and use of the fees, and establish a "nexus" or connection between a development project or class of project and the public improvement being financed with the fee. 2. The fee must be segregated from the general fund in order to avoid commingling of public improvement fees and the general fund. 3. If a local jurisdiction has had possession of a developer fee for five years or more and has not committed that money to a project or actually spent that money, then Staff Report Adoption of Resolution relative to Government Code Section 66001 — Development Impact Fees November 12, 2015 Page 2 of 4 it must make findings describing the continuing need for that money. In addition, an annual report must be made of fees collected, interest earned, projects on which fees were expended, and any transfers or loans from the fee account. This report is to be reviewed by the local agency assessing the fees. 4. If a local jurisdiction cannot make the findings required under paragraph 3, the city must refund the fees collected. The Transportation Uniform Mitigation Fee, Housing Mitigation, New Construction Tax, Drainage Facility, Fringe -toed Lizard, Park & Recreation Fee, Traffic Signalization Fee, Art in Public Places Fee, AIPP Maintenance, Child Care Facility and Fire Facility Fund fees that the City collects, qualify as development impact fees. Therefore, these fees must comply with the above - referenced Government Code Sections. Government Code Section 66001 requires the City to make available to the public certain information regarding development impact fees for each fund within 180 days after the end of the each fiscal year. Expenditures of the fees collected must occur within a five-year period. The annual report attached hereto reflects the required information to conform to Government Code Sections 66001 and 66006. Originally when the fees were adopted the Ordinance/staff reports contained the necessary Nexus findings to establish each of the fees. The fees are used to assist the City in handling the increased population affecting Palm Desert on our streets, traffic signals, parks, public facilities like City Hall, housing needs for low-income housing, public art and mitigation fees to protect environmental plants and wildlife due the new development. Each fee is held in a separate fund and the report shows the fees collected and interest earned along with the expenditures paid. Lastly, the report shows the fees collected up to the five year requirement and compares it to the fund balance to verify that the fees were spent within those five years. The Building Industry Association (BIA) has been provided a copy of this report. The following are the fees that exceeded the five-year expenditures test: New Construction Tax, Housing Mitigation Fee, Drainage Facility Fee, Park and Recreation Fee, Art in Public Places, Child Care Facility and Fire Facility. All of these fees have current capital improvement budgeted projects (copy of capital budgets attached) which would bring the fees under the five- year test and will be spent within one to two years dependent on State, local and design issues. The City Manager recently convened a staff meeting with department heads to review each of these development fees along with existing projects paid from the General Fund to determine if any of these projects could be transferred to an appropriate Development Fee Fund to bring down the five-year overage. Several projects fell into this category in which the funding source could be changed from the General Fund to the surplus development fees, thereby eliminating a portion of the surplus. This includes the air conditioning units at the former sheriff station and City Hall. Secondly, staff will be working on projects listed on the Five -Year CIP to help bring down the surplus over the next two years. Our goal is to have all the Development fees below the five-year expenditures test by the end of next fiscal year 2016-2017. New Construction Tax Fee The New Construction Tax Fee fund balance is $1,422,423 versus the five-year revenue collected of $945,987 and exceeds the five-year test by $476,436. The future projects scheduled to draw down these funds below the five-year test are the ADA Retrofit $249,429, Material Storage Staff Report Adoption of Resolution relative to Government Code Section 66001 — Development Impact Fees November 12, 2015 Page 3 of 4 $33,465, Parking Lot Improvements $391,475 and PS Art Museum $70,000 for a total of $744, 369. Housing Mitigation Fee The Housing Mitigation Fund balance is $2,256,768 versus the five-year revenue collected of $1,048,496 and exceeds the five-year test by $903,211 plus $305,061 HCD Begin Grant balance. The future projects scheduled to draw down these funds below the five-year test are the Housing Subsidies $300,000, Neighbor Stabilization $150,000, and Low Income Housing of $1,072,030 which are listed in our 2015-2016 Five -Year Capital Project Budget listing. Drainage Facility Fee The Drainage Facility Fee fund balance is $1,924,123 versus the five-year revenue collected of $341,780, and exceeds the five-year test by $1,582,343. We currently have a drainage facility master plan that indicates the various projects that the fee is being collected to build. Unfortunately, the cost of installation of these projects requires a large fund balance to be accumulated prior to implementing the capital budget and must also be timed with other improvements occurring around these capital projects. The future projects scheduled to draw down these funds below the five-year test are the extension of Portola Drainage, Washington Drainage, Fred Waring Drainage, Frank Sinatra and Gerald Ford for $1,632,333. Park and Recreation Fee The Park and Recreation Fee fund balance is $1,103,892 versus the five-year revenue collected of $392,656, and exceeds the five-year test by $711,236. We currently have a Committee that recommends the improvements needed for the various parks that the fee is being collected to build. The future projects scheduled to draw down these funds below the five-year test are the Civic Center Amphitheater and park improvements, all playground equipment upgrades to comply with new ADA standards, Mid -Valley parkway bike path, Aquatic Center equipment and Regional Park Improvements like Hovley Soccer/Freedom Park upgrades/New Park next to future Portola Interchange. The total budgeted for the various projects is $1,759,000 which exceeds the excess five-year fund balance. Art in Public Places The Art in Public Places fund balance is $1,239,077 versus the five-year revenue collected of $1,186,027, and exceeds the five-year test by $53,050. The future projects scheduled to draw down these funds below the five-year test are the artwork on El Paseo, art purchases, maintenance of art pieces, and administrative costs to oversee projects, for a total of $433,500. General Fund is covering 50% of the cost of Salaries & Benefits. Child Care Facility The Child Care Facility fund balance is $1,021,065 versus the five-year revenue collected of $136,202 and exceeds the five-year test by $884,863. The future projects scheduled to draw down these funds below the five-year test are the purchase of land and creation of a new center for a total of $997,650. City has acquired the land at San Pablo and Fred Waring from the former Redevelopment Agency. Next step would be to develop a site plan and find a future operator. Staff Report Adoption of Resolution relative to Government Code Section 66001 — Development Impact Fees November 12, 2015 Page 4 of 4 Fire Facilitv Fund The Fire Facility fund balance is $978,696 versus the five-year revenue collected of $334,136, and exceeds the five-year test by $644,560. The future project scheduled to draw down these funds below the five-year test is the construction of a new fire station for which the land has been dedicated next to the UCR campus. The new station is estimated to cost approximately $10,679,195 with roughly 50% of the funds coming from this fee. Staff expects the fee to reach approximately $3,000,000 in 3 to 5 years, depending on development. The remaining balance of the station cost was originally budgeted from redevelopment funding prior to elimination of redevelopment agencies by the State. This elimination coupled with the housing construction slowdown has forced the City to wait for housing to be built in the north sphere prior to bidding the project. Staff recommends that City Council adopt a resolution finding that the City has complied with the five-year test under Government Code Section 66006. The attached resolution outlines the findings and should be utilized in conjunction with the Annual Report and the Capital Improvement Budget for FY 2015-2016. Fiscal Analysis Since these findings have been made and the City is in compliance with the Code, no refunds are required. There is no fiscal impact associated with the action. Report was provided to the local Desert Builders Association and Riverside BIA. Subm' d By: ZAtl Paul S. Gibson, Director of Finance RESOLUTION NO. 2015- 94 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, TO MAKE CERTAIN FINDINGS PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 66001 WHEREAS, the City of Palm Desert is required to make certain findings every five years with respect to the unexpended fund balance of certain development fee funds pursuant to California Government Code Section 66001; and WHEREAS, the information to make the required findings can be found in the Annual Report Calculation, in the 2014-2015 & 2015-2016 Capital Improvement Program, the original ordinance adopting the fees file with the City Clerk; and WHEREAS, the City Council has approved a master drainage plan, a general plan for parks and approved a regional traffic signal plan that demonstrates the purpose of the fee being charged; and WHEREAS, these findings need to be made in conjunction with the public information required in Code Section 66006. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, as follows: 1. That the above recitations are true and correct. 2. That the following findings are made as required under the Government Code Section 66006: a. That the purpose to which the developer fee is to be put has been identified. b. That a reasonable relationship has been demonstrated between the fee and the purpose for which it is charged. c. That all sources and amounts of funding anticipated to complete financing on incomplete improvements have been identified. d. That the approximate dates on which the funding referred to above is expected to be deposited into the appropriate fund have been designated. 3. That these findings are based on information provided in the City of Palm Desert Annual Development Impact Report, Operating Budget and Capital Improvement Program 2015-2016 and master plans for improvements, which is incorporated herein by reference. Page 2 of 2 of Resolution No. 2015-94 PASSED, APPROVED AND ADOPTED at the regular meeting of the Palm Desert City Council held on this day of 2015, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: ATTEST: RACHELLE KLASSEN, CITY CLERK SUSAN MARIE WEBER, MAYOR CITY OF PALM DESERT, CALIFORNIA Annual Report of Calculation of Government Code 66006 Development Impact Fees For the City of Palm Desert For Fiscal Year Ending June 30, 2015 Government Code Section 66006 requires local agencies to submit annual and five-year compliance reports detailing the status of development impact fees. The annual report must be made available to the public and presented to the public agency (City Council) at least fifteen days after it is made available to the public. This report summarizes the following information for each of the development fee programs: 1. A brief description of the fee program. 2. Schedule of fees. 3. Beginning and ending balances of the fee program. 4. Amount of fees collected and the interest earned. 5. Disbursement information and percentage funded by fees, including operating transfers. 6. Five year compliance testing of unexpended fees and future capital project commitments to expend the funds. The fee programs included in this report are the following: Section A — Transportation Uniform Mitigation Fee Section B — Housing Mitigation Fee Section C — New Construction Tax Fee Section D — Drainage Facility Fee Section E — Mufti Species Habitat Conservation Programn(MSHCP) Section F — Park & Recreation Fee Section G — Traffic Signalization Fee Section H — Art In Public Places Fee Section I — A.I.P.P. Maintenance Fund Section J — Child Care Facility Fund Section K — Fire Facilty Fund Cities Five Year Capital Improvement Budget is attached as a reference to future projects using existing cash balances for FY 2014-2015 through 2018-2019 Section A - Transportation Uniform Mitigation Fee (T.U.M.F.) The TUMF program is collected by the City and administer by the Coachella Valley Association of Government (CVAG). The City of Palm Desert collects the fee based on a Ordinance adopted by City Council based on type of building usage and vehicles generated by the residential or commercial activity on City streets. The City monthly remits the fee to C.V.A.G. to be disbursed on a regional basis for street widening projects determine yearly by CVAG Capital Project Program Budget. Fee for residential is $1837.44 and all commercial buildings are based on attached formula and data sheet schedule which varies from project to project (per ordinance) Part 1 — Fund Balance, Revenue, Interest, Expenditures, Ending Balance Fund 610-Trust Beginning Fiscal Year 14-15 Ending Account Description Fund Balance Fund Balance Revenues & Other Sources: Developer Fee 378.126 Interest Income Contributions Transfers In Total Sources 378,126 Expenditures & Other Uses: Capital Projects (Paid to CVAG) 378,126 Transfers Out Total Uses 378,126 Total Available 0 0 1 0 Part II — Compliance with expending funds within 5 Years Five Year Revenue Test rust in rust uut metnoo iUnspent Funds Represents Ending Fund Balance i June 30, 20151 Collected From FY 2014-2015 I Ending Fund Balance -0- Five year spent test met in accordance Government Code 66001 378,1 Capital Improvement Projects Fiscal Year 14-15 % Complete % Funded with Fee CVAG Payments 378,126 100% 100% Section B- Housing Mitigation Fee (Fund 214) The Housing Mitigation Fee is used to mitigate the low-income housing impacts caused by commercial and industrial development. Used to help construct or provide low-income housing assistance with the City of Palm Desert residence. A yearly and five year Low Income Housing Needs Report/Plan is compile to access the needs within the City. Fee is based on $1/sq. ft. — Commercial; $0.33/sq. ft. — Industrial; $0.40/sq. ft. — Professional; $1,000/room — Resort Hotel; $620/Room Non Resort. Part 1 — Fund Balance. Revenue. Interest Expenditures. Endina Balance Beginning Ending Fiscal Year 14-15 Account Description Fund Balance Fund Balance Revenues & Other Sources: Developer Fee 50,210 Interest Income 7,010 Contributions (State Grant)Prior Year Adjustment Neighbor Grant 15,390 Transfers In (Note Rec.) 120,000 Total Sources 192,610 Expenditures & Other Uses: Capital Projects 360,000 Transfers Out to Low Income Housing Total Uses 360,000 Total Available 2,424,168 -167,390 2,266,768 Part II — Compliance with expending funds within 5 Years Five Year Revenue Test Usina First In First Out Method iUnspent Funds Represents Ending Fund Balance i June 30, 20151 Revenues Collected From FY 2010-2011 Revenues Collected From FY 2011-2012 Revenues Collected From FY 2012-2013 Revenues Collected From FY 2013-2014 Collected From FY 2014-2015 tal Ending Fund Balance ($2,010,000 —Restricted HUD grant received FY 2008-2009) 192,E 2,256, Less 5 Year Revenue-1,048,496 HUD Begin Grant Balance-306,061 Result: Five year spent test over the limit by $903,211 however, Clty has Budgeted capital projects (FY 2015-16 $450,000 plus following year we will be budgeting another $450,000) well above the 903,211 excess that will be completed within 24 months from 6/30115 which will comply with Government **want received from/State — Federal —restricted use- timinu unrectricted- 5 Year Revenue = Five Year Capital Improvement Projects Fiscal Year 14-15 % Funded with Fee Future Commitments Low Income Housing (Unfunded Projects - Housing) 0 1,072,030 100% Homebuyer Subsidies* 360,000 300,000 100% Neighbor Stabilization* 1 0 1 150,000 100% Section C — New Construction Tax Fee (Fund 231) The New Construction Tax Fee is used for acquisition and development of public facilities like playgrounds, public structures, and street improvements. Yearly the City Council approves a five year Capital Improvement Budget that reflects current projects along with future committed projects utilizing these fees. The fee is for Industrial Buildings $0.05/sq. ft.; Residential units' $0.40/sq. ft.; all other development $0.40/sq. ft. Part 1 — Fund Balance, Revenue, Interest, Expenditures, Ending Balance Beginning Ending Fiscal Year 14-15 Account Description Fund Balance Fund Balance Revenues & Other Sources: Developer Fee 206,206 Interest Income 2238 Reimbursement 1,001 Total Sources 209,445 Expenditures & Other Uses: Capital Projects 92,013 Total Uses 92,013 Revised Beginning Balance 1 1,304,9911 117,432 1,422,423 Part II — Compliance with expending funds within 5 Years Five Year Revenue Test Using First In First Out Method Unspent Funds Represents Ending Fund Balance June 30, 2015 Revenues Collected From FY 2010-2011 148,811 Revenues Collected From FY 2011-2012 119,384 Revenues Collected From FY 2012-2013 182,856 . Revenues Collected From FY 2013-2014 285,491 Total 5 Year Revenue = Revenues Collected From FY 2014-2015 209,445945,987 Total Ending Fund Balance 1,422,423 Less: 5 Year Revenue Collected-945,987 Result: Five year spent test over the limit by $473,303 however, City has Budgeted capital projects 2015-2016 ($744,369) well 476,436 above the excess that will be completed within 24 months from 6130116 which will comply with Government Code 66001. Five Year Capital Improvement Projects Fiscal Year 14-15 Future Commitments (Capital Projects Approved Budget) ADA Retrofit 1,524 249,429 Material Storage 8347 33,465 PS Art Museum Upgrades 70,000 Parking Lot Improvements 82142 391,475 R f G (. 0n K3 T�.�� .�v f, - 0 0 AN uew COKi% r-* i 744,369 Section D — Drainage Facility Fee (Fund 232) The Drainage Facility Fee is used for planned local drainage created by the development and adjoining streets to the project. The City has adopted a master drainage plan which gets modify as new development occurs. In addition, the five-year City Capital Improvement Budget includes both current and future projects planned for use of the fees connected to the various development projects. Fees are based on which drainage map zone they reside within: Zone 1 fee is $4,000; Zone 2 is $1,000; Zone 3 is $1,000; Zone 4 is $1,000. The map is available with the public works department upon request. Part 1 — Fund Balance, Revenue, Interest, Expenditures, Ending Balance Beginning Ending Fiscal Year 14-15 Account Description Fund Balance Fund Balance Revenues & Other Sources: Developer Fee 7,020 Interest Income 5,605 Adjust Fair Market Value — GASB 31 0 Total Sources 12,626 Expenditures & Other Uses: Capital Projects 0 Total Uses 0 Total Available Beg Bal Restated to Correct Bal 1,911,498 12,625 1,924,123 Part II — Compliance with expending funds within 6 Years Five Year Revenue Test Using First In First Out Method Unspent Funds Represents Ending Fund Balance June 30, 2015 Revenues Collected From FY 2010-2011 250,392 Revenues Collected From FY 2011-2012 39,711 Revenues Collected From FY 2012-2013 17,308 Collected From FY 2013-2014 Collected From FY 2014-2015 21,744 Total 5 Year Revenue = 12,625 341.780 Total Ending Fund Less: 5 Year ,ult: Five year spent test over the limit by $1,582,028 however, City has Budgeted capital projects ($1,632,333) well above excess that will be completed within 24 months from 6/30116 which will comply with Government Code 66001. 1,924,123 -341,780 Five Year Capital Improvement Projects Fiscal Year 14-15 Future Commitments (Capital Projects Approved Budget) Fred Waring Drain North Sphere -Drainage (ADA) Nuisance Water Frank Sinatra/Portola Gerald Ford Drainage 250,000.00 897,333.00 45,000.00 440,000.00 Total Budget/Expensel l 1,632,333.00 Section E — Mulit Species Habitat Conservation Programn(MSHCP) This fee is collected in connection with environmental endanger plants & wildlife agreements with State and Federal environmental agencies. The fee is collected and placed Into trust and remitted monthly to Coachella Valley Conservation commission to be used to acquire open space land to preserve for various plants and wildlife preserves. The new fee is $1284 per acre. Part 1 — Fund Balance, Revenue, Interest, Expenditures, Ending Balance Beginning Ending Fiscal Year 14-15 Account Description Fund Balance Fund Balance Revenues & Other Sources: Developer Fee 130,410 Interest Income Contributions Transfers In Total Sources 130,410 Expenditures & Other Uses: Capital Projects (paid to CV Conservation) 130,410 Transfers In Total Uses 130,410 Total Available -0- 0 -0- Part II — Compliance with expending funds within 5 Years Five Year Revenue Test vamy m rnaa v- m-... Unspent Funds Represents Ending Fund Balance June 30, 2015 Revenues Collected From FY 2010-2011 0— Revenues Collected From FY 2011-2012 -0— Revenues Collected From FY 2012-2013 - 0— Revenues Collected From FY 2013-2014 -0- Revenues Collected From FY 2014-2015 -0- Total Ending Fund Balance I 0- Result: Five year spent test met in accordance With Government Code 66001 Five Year Capital Improvement Projects Fiscal Year 14-15 % Funded with Fee Future Commitments Payment to C. V. 130,410 -0- 100% Conservation Comm. Section F — Park & Recreation Fee (Fund 233) The fee is used to acquire land, construct parks and recreational areas, open space, and other public facilities for the city residents. Yearly the City Council adopts a five year Capital Improvement Plan detailing the current and future projects necessary for use of the fee. The fee is only charged to residential properties based on the following formula: Number of units x 2.292(people per household) x 5 acres divided by 1000 population x land market value per acre. Part 1 — Fund Balance, Revenue, Interest, Expenditures, Ending Balance Beginning Fiscal Year 14-15 Ending Account Description Fund Balance Fund Balance Revenues & Other Sources: Developer Fee 67,481 Interest Income 3,459 Reimbursement (General Fund Contribution) 17,007 Total Sources 87,947 Expenditures & Other Uses: Capital Projects 185,811 Transfers In Total Uses 186,811 Total Available' (Beg Bal Adjusted) 1,201,766 -97,864 1,103,892 Part II — Compliance with expending funds within 5 Years Five Year Revenue Test Using First In First Out Method Unspent Funds Represents Ending Fund Balance Revenues Collected From FY 2010-2011 Revenues Collected From FY 2011-2012 Revenues Collected From FY 2012-2013 Revenues Collected From FY 2013-2014 Revenues Collected From FY 2014-2015 June 30, 201I 78,073 6,167 35,477 184,992 87,947 Total Ending Fund Less: 5 Year 5 Year Revenue = 1,1 Result: Five year spent test over the limit by $711,236 however, City has Budgeted capital projects (1,759,000) well above the excess that will be completed within 24 months from 6130115 which will 711,236 comply with Govemment Code 66001 Capital Improvement Projects Five Year Fiscal Year 14-15 (Completed in FY or Future Projects) Future Commitments 'Civic Center Amphitheater & Park Improvements 104,707 New Park - Land next to Future Portola Interchange 1,000,000 Hiking Trail Regional Park Improvements (Various Parks) 81,104 675,000 All Playground Upgrade to meet new ADA 84,000 Mid Valley Parkway Bike path - Aquatic Center 0 - Total 14-15 185,811 17590W Section G — Traffic Signalization Fee (Fund 234) The fee is used for acquisition and development of the regional traffic signals within the City created by increase traffic load added by the development. Yearly the City Council adopts a five year Capital Improvement Plan detailing the current and future projects necessary for use of the fee. The fee is charged based on the type of building constructed, which is: Residential $ 50 per unit; Commercial $500 per 1,000 sq. ft.; Industrial $500 per acre. Part 1 — Fund Balance. Revenue. Interest. Expenditures. Ending Balance Beginning Fiscal Year 1416 Ending Account Description Fund Balance Fund Balance Revenues & Other Sources: Developer Fee 16,688 Interest Income 915 Contributions-Fed/State Grant 0 Fair Market Value GASB 31 0 0 Total Sources 0 17,603 Expenditures & Other Uses: Capital Projects 77,840 i ransTers vut t i ramc z3ignai payout oT measure A Tuna — rteimo Tor i rat Total Uses 77,840 Total Available (Revised Beg Total) 307,497 -60,237 247,260 Part II — Compliance with expending funds within 5 Years Five Year Revenue Test Using First In First Out Method Unspent Funds Represents Ending Fund Balance June 30, 2015 Revenues Collected From FY 2010-2011 140,496 Revenues Collected From FY 2011-2012 37,979 Revenues Collected From FY 2012-2013 166,645 Revenues Collected From FY 2013-2014 133,448 Revenues Collected From FY 2014-2015 17,603 Total Ending Fund Balance 247,260 Less: 5 Year Revenue-496,171 Result: Five year spent test met in accordance-248,911 With Government Code 66001 Capital Improvement Projects Frank Sinatra & GF & Dinah Shore Portola & Frank Fred Waring Mod Signal Coordination Accessible Pod. Vehicle Speed Feedb Washington Street Traffic Upgrade Project Fiscal Year 14-15 77,840 5 Year Revenue = 496,171 Five Year Approved Budge 160,000 59,380 0 0 160,000 359,380 % Funded with Fee 100% 100% 100% 100% 100% 100% Section H — Art In Public Places Fee (Fund 436) The fee is used to acquire, develop, install and maintain artwork to be displayed in the city (City owned land), the administration of the program and community public art education programs. The City has an Art in Public Places committee that meets monthly to decide both location and type of art that will be placed throughout the City. Developers may choose to place and develop art within their project site without paying a fee to the City. Yearly the City Council adopts a five-year Capital Improvement Plan and administration plan detailing the current and future projects necessary for use of the fee. Part 1 - Fund Balance, Revenue, Interest, Expenditures, Ending Balance Beginning Fiscal Year 14-15 Ending Account Description Fund Balance Fund Balance Revenues & Other Sources: Developer Fee 289,582 Interest Income 4,293 Contributions 20 Total Sources 293,895 Expenditures & Other Uses: Capital Projects/Administration of Project 485,822 Transfers Out - AIPP Maint Fund per Ord -0- Total Uses 485,822 Revised Beginning Balance 1,431,004 -191,927 1,239,077 Part II - Compliance with expending funds within 5 Years Five Year Revenue Test Using First In First Out Method Unspent Funds Represents Ending Fund Balance Revenues Collected From FY 2010-2011 Revenues Collected From FY 2011-2012 Revenues Collected From FY 2012-2013 Revenues Collected From FY 2013-2014 Revenues Collected From FY 2014-2015 Total Ending Fund Less: 5 Year t: Five year spent test over the limit by $57,643 however, City has ated capital projects ($433,600) well above the excess that will be leted within 24 months from 6/30/15 which will comply with ,nment Code 66001 Government Code 66001 June 30, 2015 53,273 151,168 252,281 435,410 Total 5 Year Revenue = 293,895 1,186,027 1,239,077 -1,186,027 Capital Improvement Fiscal Year 14-15 Five Year Capital Budget Administration (General Fund picking up 50% of Salaries) 321,531 338,600 Prof. Architecture/Eng 5,861 Art Work -El Paseo 46,969 0 Art /Placement/Purchase 63,447 49,000 AIPP Maint of ART 48,014 46,000 485,822 433,500 Section I — A.I.P.P. Maintenance Fund (Fund 240) A portion of the Art in Public Places fee is used to cover the yearly maintenance of all the art placed within the City on public places. The City of Palm Desert placed General Fund cash within the fund of a sum of $300,000 to be used as a loan to have sufficient funds to adequately maintain the Artwork until sufficient funds are collected to cover the yearly costs. Part 1 — Fund Balance, Revenue, Interest, Expenditures, Ending Balance Beginning Fiscal Year 14-15 Ending Account Description Fund Balance Fund Balance Revenues & Other Sources: Developer Fee Interest Income Contributions (Damage Restitution) Transfers In -0- Totai Sources -0- Exoenditures & Other Uses: Maintenance of Art Work -0- Transfers Out Total Uses 0- Total Available-0- Part II — Compliance with expending funds within 5 Years Five Year Revenue Test Using First In First Out Method Unspent Funds Represents Ending Fund Balance June 30, 2015 Loan From General Fund —Transfer In Revenues Collected From FY 2012-2013 Total Ending Fund Balance -0- Result: Five year spent test met in accordance With Government Code 66t101 Capital Improvement Projects Fiscal Year 14-15 Five Year Capital Project Budget Maintenance of Art -0- 100% M\WP51TOUNCILUnnual Repon-Devclupm t rmput Fm 2012-13.doc Section J — Child Care Facility Fund 228 The City of Palm Desert is interested in providing funding, through impact fees for new child care homes and centers, in order to meet some of the child care demand generated by employees and commercial uses in the City. A Nexus Study was prepared and approved by City Council in August 2005. Yearly, the City will adopt a budget to use these funds to create new facilities and equipment. Part 1 — Fund Balance, Revenue, Interest, Expenditures, Ending Balance Beginning Ending Fiscal Year 14-15 Account Description Fund Balance Fund Balance Revenues & Other Sources: Developer Fee 25,483 Interest Income 3,534 Contributions 167 Transfers In Total Sources 29,184 Expenditures & Other Uses: Land Purchase - San Pablo/Fred Waring SE Corner 500,000 Transfers Out Total Uses 600,000 Total Available 1,491,881 -470,816 1,021,066 Part II — Compliance with expending funds within 5 Years Five Year Revenue Test Using First In First Out Method Unspent Funds Represents Ending Fund Balance June 30, 2014 Revenues Collected From FY 2010-2011 29,845 Revenues Collected From FY 2011-2012 26.854 Revenues Collected From FY 2012-2013 20.847 Collected From FY 2013-2014 29,472ITotal 5 Year Revenue = Collected From FY2014-2015 29,184 136,202 Total Ending Fund Balance 1,021,065 Less: 5 Year Revenue-136,202 Result: Five year spent test over the limit by $884,863 however, City has Budgeted capital projects ($997,650) well above the excess that will be completed within 24 months from 6130115 which will comply with Government Code 66001 Capital Improvement Projects Fiscal Year 14-15 Five Year % Funded with Fee Capital Budget Land Purchase(San Pablo & Fred Waring SE Corner) 500,000 997,650 (Design/Study New Facility) 100/o of o Bermuda Dunes@Portola Attempting to locate land and facility to acquire. Section K — Fire Facility Fund (235) The City of Palm Desert is interested in providing funding, through impact fees for new Fire Station and equipment, in order to meet some of the new commercial and residential development in the northern half of the City. A Nexus Study was prepared and approved by City Council in June 2006. Commercial development rate is $0.22 per square foot, industrial/office rate is $0.20 per square foot, and residential development would be based on a $2,262 per acre depending on density of units built. Yearly, the City will adopt a budget to use these funds to create new facilities and equipment. Part 1 — Fund Balance, Revenue, Interest, Expenditures, Ending Balance Beginning Fiscal Year 14-15 Ending Account Description Fund Balance Fund Balance Revenues & Other Sources: Developer Fee 40,023 Interest Income 2799 Contributions Total Sources 42,822 Expenditures & Other Uses: Design, Construction & Equipment -0- Total Uses 0 Total Avallable 935,8741 42,822 978,696 Part II — Compliance with expending funds within 5 Years Five Year Revenue Test Using First In First Out Method Unspent Funds Represents Ending Fund Balance Revenues Collected From FY 2010-2011 Revenues Collected From FY 2011-2012 Revenues Collected From FY 2012-2013 Revenues Collected From FY 2013-2014 Revenues Collected From FY 2014-2015 Total Ending Fund Less: 5 Year Raven Result: Five year spent test over the limit by $644,560 however, City has Budgeted capital projects ($10,679,195) well above the excess that will be completed In next 5 years from 6/30116 which will comply with Government Code 66001 Half the building cost will be paid by this fund and the balance from City reserves per Nextus study. June 30, 2014 Prior to Building Facility 52,925 City needs to 41,478 collect by these 89,130 Dev. Fund= 107,781 Total 5 Year Revenue = 4 Million. 42,822 334,136 -334, Five Year Capital Improvement Projects Fiscal Year 14-15 % Funded with Fee Capital Budget $10,679,195 Upon New New Fire Station (DOF approved land transfer to City - May 2014) - 0 - Housing units built in North 50% Sphere Land acquired, preliminary design complete, awaiting development prior to building facility. City budget could not support new facility. 3 y 4 � : iICT 5 t x a 3 K" AxA E ' � 9 g T� � 3 N � 2 3 } � u� x i z Y;Y 1\$ ` 4� �3 ry E t ��4 b w yw roA r LLti � v x � 1611 a `z �a t 4 S� T 0. LL �k mg M }l T mm �.... ._.-HT C \ � 0 \ f "t k dry; ,v v f t ti 3. I�III y �i �y i P � k a t r a @` PROJECT COUNT i i r x ' t e :.a � PROJECT COUNT i '«9 Gt w F e a r z { i b � i ; 8� � CCLL 3 a s w�� d s � � t t V11 1: sy Hem I 1 PROJECT COUNT 3 ' 3 i a�f e� x'ti r � f� �a v PROJECT COUNT a; s t CITY OF PALM DESERT Exhibit 3 CAPITAL IMPROVEMENT PROGRAM NO.2015- EXISTING PROJECTS IN FISCAL YEAR 2014-15 CONTINUED TO FY 2015-2016 PROJECT TITLE ESTIMATED ACCOUNT FUNDING FY 2014.15 PROJECT NUMBERS SOURCES to FY1s-16 TOTAL FOR 'SEE "07E LIFE OF PROJECT 1 Street Resurfacing Continuing 1104311-4332000 General Fund 364,198 Perking Lot Maintenance Continuing 1104313-4332000 General Fund 38,945 Gas Tax Flmd 1 None ilfeasure A Fund 213 IISNS Upgrades Program Continuing 2134250-4400100 Measure A Fund 213 75,000 LED indication Replacement Program Continuing 2134250-4400100 Measure A Fund 213 50,000 Traffic Signals -Accessible Pedestrian Program Continuing 2134292-4400100 Measure A Fund 213 50,000 Street Resurfacing Continuing 2134311-4332000 Measure A Fund 213 1,105,775 ADA Retrofit Curb & Gutter Continuing 2134312-4400100 Measure A Fund 213 79,117 San Pablo Right Turn at FW (Southeast Corner) 365,000 2134342-4400100 Measure A Fund 213 365,000 Gerald Ford East of Cook Improvements 265,000 2134346-4400100 Measure A Fund 213 265,000 Portolan-10 Interchange ROW/ Design 71,993,000 2134351-4400100 Measure A Fund 213 15,110,661 HWY 111 Sidewalk Infilt 85,000 2134362-4400100 Measure A Fund 213 85,000 Monterey Improvement - FW to CC 6,500,000 2134368-4400100 Measure A Fund 213 4,500,000 Jefferson Street Interchange 0 1-10 312.500 2134372.4400100 Measure A Fund 213 239,538 HWY 111 to FW (Northwest Corner) and Sidewalk 380.000 2134383.4400100 Measure A Fund 213 300,000 Fred Waring Turn Pocket Hwy 111 775,000 2134384-4400100 Measure A Fund 213 543,295 Monterey Ave Romp Modification 12,000.000 2134389.4400100 Measure A Fund 213 79,198 Housina Affligation Fund 21 None QQBQ Fund 220 None Chikkare Fund City Childcare Facility 1,500,000 2284800-4400100 Childcare Fund 228 997,650 Public fe None New Construction Tex Fund 231 PS Art Museum Upgrades 70,000 2314164-4400100 New Construction Tax FD 231 18,973 ADA Retrofit Curb & Gutter Continuing 2314312-4400100 New Construction Tax FD 231 124,429 City -Wide Parking Lots Development 100,000 2314313-4332000 New Construction Tax FD 231 141,475 DrWhoue Fond ?32 North Sphere Drainage 4,400,000 2324393.4400100 Drainage Fund 232 360,000 Park & Rae Fecll/des Fswd 233 None Traffic Shmals Fund ?34 IISNS Upgrades Program Continuing 2344250-4400100 Slgnalization FD 234 24,380 Traffic Signal Maintenance Project 135.000 234438144MI00 Signalizatlon FD 234 135,000 Fire Fw1lifles Fund 235 New North Sphere Fire Station 3,504,271 2354270-4400100 Fire Facilities Fund 235 909,606 Recycllna Fund 236 None l:new Independer= Loan Fund 23T None CITY OF PALM DESERT Exhibit 3 CAPITAL IMPROVEMENT PROGRAM NO. 2015- EXISTING PROJECTS IN FISCAL YEAR 2014-15 CONTINUED TO FY 2015-2016 PROJECT TITLE ESTIMATED ACCOUNT FUNDING FY 2014-15 PROJECT NUMBERS SOURCES to FYts-15 TOTAL FOR • SEE NOTE LIFE OF PROJECT Air QualftyAferntFn 2 None AayAdc Center Fund Y42 None Caollat PWI Reserve Fund 400 Public Counter at Code Compliance 9,100 4004161.4400100 Year 2010 Fund 400 1,930 Undergrounding Continuing 4004256-4400100 Year 2010 Fund 400 150,000 Geodetic Survey Control Network 79,000 40G4300-4309000 Year 2010 Fund 400 79,000 Alessandro Improvements 5,681,708 4004341-4400100 Year 2010 Fund 400 218,775 Portola Ave Free Right at Fred Waring 1,410,000 4004438.4400100 Year 2010 Fund 400 1.048,195 Mid Valley Bike Path 6,800.000 4004544.4400100 Year 2010 Fund 400 257,436 El Paseo-Muhl-Use Community Center 1,700,000 4004679-4400100 Year 2010 Fund 400 1,641,788 Pmoldent's Plaza Rehabilitation 4,000,000 4004692-4400100 Year 2010 Fund 400 25.350 1ElI Parkway Project 291,000 4004915-4400100 Year 2010 Fund 400 65,737 Property Acquisition Continuing 4004950-4401000 Year 2010 Fund 400 300,000 d 420 Nuisance Water Inlat/Drywell Continuing 4204291-44001GO Drainage Facilities FD 420 237,665 Strom Drainage Maintenance Continuing 4204314-WO100 Drainage Facilities FD 420 159,768 North Sphere Drainage 4,400,000 4204393-4400100 Drainage Facilities FD 420 80,000 Economk Development Fund 425 Fagads Program Continuing 4254430-4387500 Economic Development 425 280,000 Civic Center Park Improvements Continuing 430.4674454.40.01 Park & Rec Fac. FD 430 47,686 A None OP SlanaltzsHon Fund 440 None Golf Capital Fund 441 None tF ONE Solution Enterprise Software Continuing 6304190-4404000 Equipment Replacement 415,640 TOTAL I T $ ,971,110 NOTE: APPROPRIATIONS AND/OR ENCUMBRANCES FOR RESUDGET/CARRYOVER FROM FISCAL YEAR 2014-15 TO 2015-16 NOTE: DUE TO TIMING OF EVENTS, NO CONTRACT HAS BEEN OBTAINED, HOWEVER, FUNDS NEED TO BE CARRIED OVER TO PREVENT SHORTING IN COMING FISCAL YEAR. Continuing aA opdations are amounis which have been appropriatedin FY 2014-15 and are not expected to be expended by June 30. 2015. These lunds are prirm* for capital budgets and spedlic programs that overlap (kcal years. When authorized, contbwkng app►oprieflm amounts am added to the new fiscal year budget amounts in order to IrWA ad approved spending. The exact amount of appropriations for carryover in each fund k4caled WN be deteanlned at the end of the fiscal year during the Prsparsflan of Hnandal statements. This amount will kXfude: t) purchase orders and contracts encumbered totals and 2) unencumbered balances as of June 30, 2015 for appropdatiom approved by the Gfy Council through the list meerk+g in June, 2015. AMOUNTS ARE SUBJECT TO CHANGE DUE TO PROJECTS APPROVED BY COUNCIL PRIOR TO JUNE 30, 2015 Note: Above amounts are as of January, 2015 LEGAL NOTICE CITY OF PALM DESERT PUBLIC HEARING RELATIVE TO ANNUAL REPORT OF DEVELOPER IMPACT FEE NOTICE IS HEREBY GIVEN that a Public Hearing will be held before the Palm Desert City Council to consider filing a report and resolution on Developer Impact Fees as of June 30, 2015. SAID PUBLIC HEARING will be held on Thursday, November 12, 2015, 4:00 p.m. in the Council Chamber of the Palm Desert Civic Center, 73-510 Fred Waring Drive, Palm Desert. All citizens are invited to present oral or written comments relative to the proposed impact fee report. Any citizen unable to attend may submit written comments to the City Clerk prior to the Public Hearing. Copies of the report may be reviewed at the Civic Center, Monday through Friday between the hours of 8:00 a.m. and 5:00 p.m. R HELLE D. KLASSE , CITY CLERK CITY OF PALM DESERT, CALIFORNIA (760) 346-0611 Sanchez, Gloria From: Moeller, Charlene <CMOELLER@palmspri.gannett.com> Sent: Tuesday, October 13, 2015 4:07 PM To: Sanchez, Gloria Subject: RE: Legal Notice - PH 11/12/2015 - Developer Impact Fees Ad received and Will publish can date(s) regUe�;ted. Charlene Moeller I Customer Care Representative / Legals The Desert Sun Media Group 750 N. Gene Autry Trail, Palm Springs, CA 92262 t 760.778.4578 i f 760.778,4528 IegalsCdthedesertsun.com / dpwlegals@thedesertsun.com The Coachella Valley's 41 Source in News & Advertising! www.DesertSun.com I twitter @MyDesert I facebook thedesertsun This email and any files transmitted with it are confidential and intended for the individual to whom they are addressed. If you have received this email in error, please notify the sender and delete the message from your system From: gsanchez@cityofpalmdesert.org[mailto:gsartchez@citvofpalmdesert.org] Sent: Tuesday, October 13, 2015 3:38 PM To: Email, TDS-Legals <legals@thedesertsun.com> Cc: pgibson@cityofpalmdesert.org; lespinoza@cityofpalmdesert.org; nortega@cityofpalmdesert.org; rklassen@cityofpalmdesert.org Subject: Legal Notice - PH 11/12/2015 - Developer Impact Fees Hi, Charlene! PLEASE PUBLISH THE FOLLOWING: NOTICE OF PUBLIC HEARING Public Hearing Relative to Annual Report of Developer Impact Fees as of June 30, 2015 TWICE IN THE DESERT SUN Thursday, October 29, 2015 Thursday, November 5, 2015 If you have any questions or require additional information, please contact me. Thank you and have a nice evening! M. GLo-r-i Scu� Records Technician GOVERNMENT CODE Ms. Gretchen Gutierrez, CEO Ms. Deborah McGarrey, Public Affairs SECTS. 66000 - 66025 Desert Valleys Builders Association Southern California Gas Company Current Requests for Notice 75100 Mediterranean 75095 Mayfair Drive SC8051 As of January 2015 Palm Desert CA 92211 Palm Desert CA 92211-5102 Director of Governmental Affairs Ms. Jennifer Cusack, Region Mgr. Riverside Co. Chapter-B I A So. Cal. Local Public Affairs - S. C. E. 3891 111h Street 36100 Cathedral Canyon Drive Riverside CA 92501 Cathedral City CA 92234