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HomeMy WebLinkAboutCC RES 2011-86RESOLUTION NO. 2011- 86 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 2011-2012 Capital Improvement Program, the original ordinance adopting the fees filed with the City Clerk; and WHEREAS, the City Council has approved a master drainage plan, a general plan for parks and 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. Page 1 of 2 Resolution No. 2011- 86 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 2011-2012 and master plans for improvements, which is incorporated herein by reference. PASSED, APPROVED AND ADOPTED at the regular meeting of the Palm Desert City Council held on this 10th day of November 2011, by the following vote, to wit: AYES: FINERTY, HARNIK, KROONEN, SPIEGEL, and BENSON NOES: NONE ABSENT: NONE ABSTAIN: NONE ATTEST: s4��-C.�' CZ ��.. JEAN M. BENS OfN t#61OR RA LE D. KLASSEN, JCITY CLERK CITY OF PALM DESERT, CALIFORNI� Page 2 of 2 Annual Report of Calculation of Government Code 66006 Development Impact Fees for the City of Palm Desert for Fiscal Year ending June 30, 2011 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 — Fringe -toed Lizard Fee/ 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 Facility Fund Page 1 of 12 Section A — Transportation Uniform Mitigation Fee (T.U.M.F.) The TUMF program is collected by the City and administered by the Coachella Valley Association of Governments (CVAG). The City of Palm Desert collects the fee based on an ordinance adopted by City Council based on type of building usage and vehicles generated by the residential or commercial activity on city streets. The fee is remitted to CVAG on a monthly basis to be disbursed regionally for street widening projects determined yearly through the CVAG Capital Project Program Budget. The fee for residential building is $1,837.44, and all commercial buildings are based on the attached formula and data sheet schedule which varies from project to project (per the established ordinance). Part 1 — Fund Balance, Revenue, Interest, Expenditures, Ending Balance Account Description Revenues & Other Sources: Developer Fee Interest Income Contributions Transfers In Total Sources Expenditures & Other Uses: Capital Projects (Paid to CVAG) Transfers Out Beginning Fiscal Year Fund Balance 2010-11 $269,770 269,770 269,770 Ending Fund Balance Total Uses j 269,770 1 1 Total Available 1- 0 - - 0 - 1 0 1 Part II — Compliance with Expending Funds within Five Years Five-year Revenue Test Using First In First Out Method Unspent Funds Represents Ending Fund Balance Revenues Collected from FY 2010-2011 June 30, 2011 269,770 Total Ending Fund Balance - 0 - Result: Five-year spent test met in accordance With Government Code Section 66001 Capital Improvement Projects CVAG Payments FY 2010-2011 269,770 % Complete % Funded with Fee 100% 100% Page 2 of 12 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 through constructing or providing low-income housing assistance to Palm Desert residents. An annual and five-year Low-income Housing Needs Report/Plan is compiled to assess the needs within the city. The fee is based on $1/sq. ft. — Commercial; $0.33/sq. ft. — Industrial; $0.40/sq. ft. — Professional; $1,000/room — Resort Hotel; and $620/Room Non -resort. Part 1 — Fund Balance, Revenue, Interest, Expenditures, Ending Balance Account Description Revenues & Other Sources: Developer Fee Interest Income Contributions (State Grant) Neighbor Stabilization Program Transfers In (Note Receivable) Total Sources Expenditures & Other Uses: Capital Projects Transfers Out to Low -Income Housing Total Uses Total Available Beginning Fiscal Year Ending Fund Balance 2010-11 Fund Balance 2,129,102 Part II — Compliance with Expending Funds within Five Years Five-year Revenue Test Using First In First Out Method Unspent Funds Represents Ending Fund Balance Revenues Collected from FY 2006-2007 Revenues Collected from FY 2007-2008 Revenues Collected from FY 2008-2009 Revenues Collected from FY 2009-2010 Revenues Collected from FY 2010-2011 Total Ending Fund Balance Result: Five-year spent test met in accordance with Government Code Section 66001 (Two-year balance) Capital Improvement Projects Low -Income Housing Project (Falcon/La Rocca Apartments) FY 2010-2011 302,088 June 30, 2011 1,064,110 1,214,744 2,309,418 175,553 583,696 2,410,710 15,759 32,406 325,531 210,000 583,696 302,088 302,088 281,605 Five-year Future Commitments Working on Design & Land Purchase 500,000 2,410,710J % Funded with Fee 100% Page 3 of 12 Section C — New Construction Tax Fee (Fund 231) The New Construction Tax Fee is used for acquisition and development of public facilities such as playgrounds, public structures, and street improvements. The City Council annually approves a five-year Capital Improvement Budget that reflects current projects along with future committed projects utilizing these fees. The fee for Industrial Buildings is $0.05/sq. ft.; Residential units' fee is $0.40/sq. ft.; all other development $0.40/sq. ft. Part 1 — Fund Balance, Revenue, Interest, Expenditures, Ending Balance Account Description Revenues & Other Sources: Developer Fee Interest Income Prior Yr Adjustment Transfers In from General Fund -LOAN Total Sources Expenditures & Other Uses: Capital Projects Transfers Out Total Uses LTotal Available Beginning Fund Balance Fiscal Year Ending 2010-11 Fund Balance 1,122,373 Part II — Compliance with Expending Funds within Five Years Five-year Revenue Test Using First In First Out Method Unspent Funds Represents Ending Fund Balance Revenues Collected from FY 2006-2007 Revenues Collected from FY 2007-2008 Revenues Collected from FY 2008-2009 Revenues Collected from FY 2009-2010 Revenues Collected from FY 2010-2011 Total Ending Fund Balance Result: Five-year spent test met in accordance with Government Code 66001 (Two-year balance) Capital Improvement FY 2010-2011 Projects ADA Retrofit Parking Lot *Repayment of General Fund Sheriff Substation PS Art Museum ADA Curb 89,151 58,000 June 30, 2011 597,098 344,582 398,829 112,873 148,811 1,124, 033 Five-year 129,262 19,549 148,811 147,151 147,151 1,660 1,124,033 Future Commitments 433,650 350,000 70,000 100,000 % Funded with Fee 100% 100% 100% 100% 100% 20% Page 4 of 12 Section D — Drainage Facility Fee (Fund 232) The Drainage Facility Fee is used for planned local drainage created by a development and adjoining streets to the project. The City has adopted a master drainage plan which is modified 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 upon the drainage map zone within which they are located: 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 through the Public Works Department upon request. Part 1 — Fund Balance, Revenue, Interest, Expenditures, Ending Balance Account Description Revenues & Other Sources: Developer Fee Interest Income Contributions from CVAG Total Sources Expenditures & Other Uses: Capital Projects Total Uses 1 1 Total Available Beginning Fiscal Year Fund Balance 2010-11 5,430,898 Part II — Compliance with Expending Funds within Five Years Five-year Revenue Test Using First In First Out Method Unspent Funds Represents Ending Fund Balance Revenues Collected from FY 2006-2007 Revenues Collected from FY 2007-2008 Revenues Collected from FY 2008-2009 Revenues Collected from FY 2009-2010 Revenues Collected from FY 2010-2011 Total Ending Fund Balance Result: Five-year spent test is over the limit by $2,746,801. However, City has budgeted capital projects ($4,936,811) well above the excess that will be completed within 24 months from 6/30/11 which will comply with Government Code 66001. Capital Improvement FY 2010-2011 Projects Portola Ave Drainage North Sphere - Drainage (ADA) Country Club Drive 210,470 Frank Sinatra/Portola 1,457,758 Hwy 111 Non -State 7,050 37,872 205,470 250,392 1,668,228 Ending Fund Balance 1,668,228 1 (1,417,836) 1 4,013,062 1 June 30, 2011 395,204 310,925 168,043 141,697 250,392 Total=1,266,261 4,013,062-1,266,261=2,746,801 Five-year % Funded with Fee Future Commitments 100% 1,852,188 100% 1,741,605 -Const. 100% 3,095,200 -Const. 100% 100,000 -Design 100% Page 5 of 12 Section E — Fringe -toed Lizard Fee / Wildlife Mitigation (MSHCP) This fee is collected in connection with environmental agreements relative to endangered plants and wildlife with State and Federal environmental agencies. The fee is collected, placed into a Trust, and remitted monthly to the Center for Natural Lands Management to be used to acquire open space land for various plants and wildlife preserves. The new fee is $1,284 per acre. Part 1 — Fund Balance, Revenue, Interest, Expenditures, Ending Balance Account Description Revenues & Other Sources: Developer Fee Interest Income Contributions Transfers In Total Sources Expenditures & Other Uses: Capital Projects (paid to CV Conservation) Transfers In Total Uses Total Available Beginning Fiscal Year Fund Balance 2009-10 -0- Part II — Compliance with Expending Funds within Five Years Five-year Revenue Test Using First In First Out Method Unspent Funds Represents Ending Fund Balance Revenues Collected from FY 2006-2007 Revenues Collected from FY 2007-2008 Revenues Collected from FY 2008-2009 Revenues Collected from FY 2009-2010 Revenues Collected from FY 2010-2011 Total Ending Fund Balance June 30, 2011 Result: Five-year spent test met in accordance With Government Code Section 66001 -0- - 0- - 0- - 0- - 0- -0- 82,870 82,870 82,870 Ending Fund Balance 82,870 0- 0 Capital Improvement FY 2010-2011 Five-year Projects Future Commitments Payment to Coachella 82,870 -0- Valley Conservation Committee % Funded with Fee 100% Page 6 of 12 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 city residents. The City Council annually 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 - 1000 (population) x land market value per acre. Part 1 — Fund Balance, Revenue, Interest, Expenditures, Ending Balance Account Description Revenues & Other Sources: Developer Fee Interest Income Contributions (Insurance Settlement) Transfers In Total Sources Expenditures & Other Uses: Capital Projects Transfers In Total Uses Beginning Fund Balance Total Available 1,755,053 Part II — Compliance with Expending Funds within Five-year Revenue Test Using First In First Out Method Unspent Funds Represents Ending Fund Balance Revenues Collected from FY 2006-2007 Revenues Collected from FY 2007-2008 Revenues Collected from FY 2008-2009 Revenues Collected from FY 2009-2010 Revenues Collected from FY 2010-2011 Total Ending Fund Balance Result: Five-year spent test met in accordance With Government Code 66001 (1 Years) Capital Improvement Projects *Civic Center Amphitheater & Park Improvements New Community Center Design Hiking Trail Park Improvements (various parks) All Playground Upgrade to meet new ADA Mid Valley Parkway bike path Aquatic Center Fiscal Year 2010-11 Five Years June 30, 2011 1,896,904 210,664 226,960 42.757 78,073 1,395,193 FY 2010- 2011 170,601 267,332 67,305 10,768 78,073 437,933 437,933 (359,860) 1 Ending Fund Balance 1,395,193 Five-year % Funded Future with Fee Commitments 209,860 100% 50% 25% 880,000 50% Page 7 of 12 Section G — Traffic Signalization Fee (Fund 234) The fee is used for acquisition and development of the regional traffic signals in Palm Desert created by increase traffic load added by the development. The City Council annually 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 as follows: Residential $50 per unit; Commercial $500 per 1,000 sq. ft.; Industrial $500 per acre. Part 1 — Fund Balance, Revenue, Interest, Expenditures, Ending Balance Account Description Revenues & Other Sources: Developer Fee Interest Income Contributions Transfers In Total Sources Expenditures & Other Uses: Capital Projects Transfers Out (Traffic Signal payout of Measure A Fund — Reimbursement for Traffic Signals Total Uses Total Available Beginning Fiscal Year Ending Fund Balance 2010-11 Fund Balance 6,484 4,425 129,587 140,496 328,463 328,463 725,250 (187,967) Part II — Compliance with Expending Funds within Five Years Five-year Revenue Test Using First In First Out Method Unspent Funds Represents Ending Fund Balance June 30, 2011 Revenues Collected from FY 2006-2007 374,812 Revenues Collected from FY 2007-2008 137,663 Revenues Collected from FY 2008-2009 70,972 Revenues Collected from FY 2009-2010 38,342 Revenues Collected from FY 2010-2011 140,496 Total Ending Fund Balance Result: Five-year spent test met in accordance 537,283 With Government Code 66001 (3 1/2 Years) Capital Improvement Projects Frank Sinatra Fred Waring Modification Signal Coordination FY 2010-2011 237,352 1,171 89,940 537,283 Five-year % Funded with Fee Future Commitments 783,426 100% 100% 100% Page 8 of 12 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 Account Description Revenues & Other Sources: Developer Fee Interest Income Contributions Total Sources Expenditures & Other Uses: Capital Projects/Administration of Project Transfers Out — AIPP Maint Fund per Ord Total Uses Total Available Beginning Fund Balance 2,098,556 Fiscal Year Ending 2010-11 Fund Balance Part II — Compliance with Expending Funds within Five Years Five-year Revenue Test Using First In First Out Method Unspent Funds Represents Ending Fund Balance Revenues Collected from FY 2006-2007 Revenues Collected from FY 2007-2008 Revenues Collected from FY 2008-2009 Revenues Collected from FY 2009-2010 Revenues Collected from FY 2010-2011 Total Ending Fund Balance Result: Five-year spent With Government Code Capital Improvement Administration Prof. Architecture/Eng Art Work —El Paseo Art/Placement/Purchase AIPP Maintenance 1% test met in accordance 66001 (3 Years) FY 2010-2011 277,769 4,848 57,425 55,256 42,877 38,068 14,856 133 53,273 438,175 -0- 438,175 (384,902) June 30, 2011 923,567 412,842 378,299 122,440 53,273 1,713.654 Future Commitments 100,000 1,713,654 % Funded with Fee 60% 100% 100% 100% 100% Page 9 of 12 Section I — A.I.P.P. Maintenance Fund (Fund 240) A portion of the Art in Public Places fee is used to cover the annual maintenance of all art placed in Palm Desert public locations. The City of Palm Desert placed General Fund cash within the fund in the amount of $300,000 to be used as a loan in order to have funds available to adequately maintain the Artwork until sufficient funds are collected to cover the yearly costs. Part 1 — Fund Balance, Revenue, Interest, Expenditures, Ending Balance Account Description Revenues & Other Sources: Developer Fee Interest Income Contributions (Damage Restitution) Transfers In Total Sources Expenditures & Other Uses: Maintenance of Art Work Transfers Out Beginning Fund Balance Fiscal Year Ending 2010-11 Fund Balance -0- -0- -0- 1 Total Uses 1 -0- 1 1 Total Available -0- 1 -0- 1 Part II — Compliance with Expending Funds within Five Years Five-year Revenue Test Using First In First Out Method Unspent Funds Represents Ending Fund Balance Loan from General Fund — Transfer In Revenues Collected from FY 2010-2011 June 30, 2011 $300,000 Loan from General Fund Total Ending Fund Balance -0- Result: Five-year spent test met in accordance With Government Code 66001 Capital Improvement Projects Maintenance of Art FY 2010-2011 Five-year Future Commitments -0- 100% -0- % Funded with Fee Page 10 of 12 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 adopts a budget to use these funds to create new facilities and equipment. Part 1 — Fund Balance, Revenue, Interest, Expenditures, Ending Balance Account Description Revenues & Other Sources: Developer Fee Interest Income Contributions Transfers In Total Sources Expenditures & Other Uses: Design, Construction & Equip (Wallaroo) Transfers Out Total Uses Total Available Beginning Fund Balance 1 1 1,565,680 Fiscal Year Ending 2010-11 Fund Balance Part II — Compliance with Expending Funds within Five Years Five-year Revenue Test Using First In First Out Method Unspent Funds Represents Ending Fund Balance Loan from General Fund — Transfer In Revenues Collected from FY 2006-2007 766,590 Revenues Collected from FY 2007-2008 257,680 Revenues Collected from FY 2008-2009 212,717 Revenues Collected from FY 2009-2010 120,213 Revenues Collected from FY 2010-2011 29,845 June 30, 2011 Total Ending Fund Balance 1,489,707 Result: Five-year spent test met in accordance With Government Code 66001 (Five years) 19,232 10,613 29,845 105,818 105,818 (75,973) 1,489,707 Capital Improvement FY 2010-2011 Five-year % Funded with Fee Projects Future Commitments Land Purchase(Spanish) 100,923 1,340,000 (Land & New Fac) 100% Wallaroo Center 4,895 Attempting to locate land and facility to acquire. Page 11 of 12 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 the needs of 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. The 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 Account Description Revenues & Other Sources: Developer Fee Interest Income Contributions Transfers In Beginning Fiscal Year Ending Fund Balance 2010-11 Fund Balance 48,460 4,465 Total Sources 52,925 Expenditures & Other Uses: Design, Construction & Equipment -0- Total Uses Total Available 644,560 52,925 697,485 Part II — Compliance with Expending Funds within Five Years Five-year Revenue Test Using First In First Out Method Unspent Funds Represents Ending Fund Balance Loan from General Fund — Transfer In Revenues Collected from FY 2006-2007 235,604 Revenues Collected from FY 2007-2008 118,306 Revenues Collected from FY 2008-2009 130,326 Revenues Collected from FY 2009-2010 29,954 Revenues Collected from FY 2010-2011 52,925 Total Ending Fund Balance 697,485 Result: Five-year spent test met in accordance With Government Code 66001 (Five-year balance) June 30, 2011 Capital Improvement FY 2010-2011 Five-year % Funded with Fee Projects Future Commitments New Fire Station - 0 - 3,504,271 50% Land Purchase 100% Land acquired, preliminary design complete, awaiting development prior to building facility. City budget could not support new facility. Page 12 of 12