HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/07/2021 - FIRST READING OF ORDINANCE NO. 165, 2021, ADOPTING Agenda Item 15
Item # 15 Page 1
AGENDA ITEM SUMMARY December 7, 2021
City Council
STAFF
Dana Hornkohl, Capital Projects Manager
Dean Klingner, Deputy Director, PDT
Aaron Guin, Legal
SUBJECT
First Reading of Ordinance No. 165, 2021, Adopting the 2022 Larimer County Regional Transportation Capital
Expansion Fee Schedule.
EXECUTIVE SUMMARY
The purpose of this item is to adopt the 2022 Larimer County Regional Transportation Capital Expansion Fee
Schedule.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
In 2000, the City and Larimer County (the “County”) entered into an intergovernmental agreement (the “IGA”)
authorizing the City to collect Larimer County Regional Transportation Capital Expansion Fees (“R egional
TCEFs”) on behalf of the County. The Regional TCEFs generate revenue for capacity -related improvements to
regionally significant roadways that are necessitated by new development. The Regional TCEFs are used only
for improvements that mutually benefit both the City and the County. Regional TCEFs are collected at the time
of issuance of a building permit.
Per the IGA, the County serves as the Regional TCEF administrator and is responsible to develop project
recommendations for fee utilization. The County’s recommendations typically are based on the County’s
Transportation Master Plan, a document that identifies regionally significant roadways. Once a project has
been identified, City and County staff work together to determine Regional TCEF funding a llocations. Regional
TCEFs frequently are leveraged with other funds to support larger scale capital projects and can fully support
small scale capacity related improvements.
The City and County previously have partnered to design and construct several pr ojects along regionally
significant roadways using Regional TCEFs, including improvements to Taft Hill Road, Shields Street, and the
Shields Street/Vine Drive intersection. City and County staff continue to collaborate on efficient and effective
uses for the Regional TCEF funds; most recently agreeing to use these funds to improve a section of Taft Hill
Road between Horsetooth Road and Harmony Road.
The Larimer County Land Use Code specifies that its Regional TCEF must be updated annually to reflect
changes in road construction costs during the previous year. In July 2021, the County adopted a revised fee
schedule which increased the Regional TCEF by 2.4%. A copy of the June 15, 2021, “Transportation Capital
Expansion Fee Adjustments for 2021” memorandum to the Larimer County Board of County Commissioners
outlining the revised fees is included with this item.
Agenda Item 15
Item # 15 Page 2
The Regional TCEF increase of 2.4% is based on the Colorado Construction Cost Index reported by the
Colorado Department of Transportation (eight-quarter moving average). In comparison, the recently approved
City TCEF increase of 7.4% is based on the Construction Cost Index (Denver) reported by the Engineering
News Record (twelve-month average ending in August). Inflationary and regional pressures affected the
higher rate of increase seen in the City TCEF.
The revised (2022) Regional TCEFs, along with a comparison to the 2021 Regional TCEFs, are as follows:
Development Type 2022 Regional
Road TCEF
2021 Regional
Road TCEF
Increase or
Decrease
Residential (per Dwelling) by Square Feet of Finished Living Space
900 or less $184 $181 $3
901 to 1300 $258 $253 $5
1301 to 1800 $312 $306 $6
1801 to 2400 $366 $358 $8
2401 to 3000 $410 $401 $9
3001 to 3600 $445 $436 $9
3601 or more $476 $466 $10
Nonresidential (per 1,000 Square Feet of Floor Area)
Commercial $479 $468 $11
Office & Other Services $283 $276 $7
Industrial $114 $111 $3
The revised fees became effective within the County on July 1, 2021. Under the IGA, revisions to the Regional
TCEFs do not take effect in the City until Council approves a new fee schedule.
CITY FINANCIAL IMPACTS
The fees are collected on behalf of Larimer County and the Regional TCEF program. Revenues from the fees
will pass through City accounts and will not affect City revenue limits under Article X, Section 20 of the
Constitution of the State of Colorado. The City retains a 2% administration fee. Adoption of the Regional TCEF
Schedule will result in an increase to development fee payers.
BOARD / COMMISSION RECOMMENDATION
City staff did not present this item to any Boards and Commissions as the fees are being adjusted only for
inflation.
PUBLIC OUTREACH
As these fees are managed and administered by Larimer County, City staff did not participate in scheduled
public outreach.
ATTACHMENTS
1. Transportation Capital Expansion Fee Adjustments (PDF)
LARIMER COUNTY | ENGINEERING DEPARTMENT
P.O. Box 1190, Fort Collins, Colorado 80522-1190, 970.498.5700, Larimer.org
MEMORANDUM
TO: Board of County Commissioners
FROM: Mark Peterson, County Engineer
DATE: June 15, 2021
RE: Transportation Capital Expansion Fee Adjustments for 2021
Since 1998, under the terms of the Land Use Code, Larimer County has been collecting transportation
capital expansion fees (TCEF) from new traffic generating development to be used for improvements to
the road system to accommodate the increase in traffic generated by the new development. The
current Land Use Code specifies an effective date for the annually updated TCEF’s as July 1st, which is
consistent with the effective date for the annual cost of living updates for the Planning and Building
Department fees.
This memorandum is intended as notification to the Board of County Commissioners that the annual
review of the Larimer County Transportation Capital Expansion Fees (TCEFs) for 2021 is resulting in an
increase of 2.4% from the 2020 values. As an example of what this change would mean, the TCEF on a
new single-family home (between 1,801 SF – 2,400 sf) would increase by $110, from $4,628 to $4,738.
See the table below for the complete current 2020 fee schedule and the schedule that would be
effective based on a 2.4% increase.
The methodology for the adjustment in the TCEF’s each year is specified in the Land Use Code and is
intended to reflect changes in road construction costs. The data is based on an 8-quarter moving
average calculated from Colorado Construction Cost Index quarterly data compiled and reported by the
Colorado Department of Transportation (CDOT).
The procedure spelled out in the Land Use Code states that, if the change in fees is less than or equal to
5%, the new fees become effective without further action by the BCC. If the change in fees is greater
than 5%, the BCC shall determine the percentage to be used to update the fees. Since the percentage
change is less than 5% this year at 2.4%, approval by the BCC is not required. However, we still wanted
to bring this to the BCC for informational purposes on the TCEF schedule that will be applied for the
upcoming year, which will be effective July 1, 2021.
ATTACHMENT 1
June 15, 2021
Transportation Capital Expansion Fee Adjustments
Page 2
Residential TCEF
Finished Living Space per Dwelling
(Square Feet)
2020 TCEF 2021 TCEF
(with 2.4% Increase)
($) ($)
900 or less $2,341 $2,396
901-1300 $3,282 $3,360
1301-1800 $3,953 $4,047
1801-2400 $4,628 $4,738
2401-3000 $5,192 $5,317
3001-3600 $5,654 $5,788
3601 or more $6,041 $6,185
Commercial Use per 1,000 SF of Floor
Area
2020 TCEF 2021 TCEF
(with 2.4% Increase)
($) ($)
Industrial $1,439 $1,474
Commercial $6,064 $6,208
Office & Other Services $3,568 $3,654
-1-
ORDINANCE NO. 165, 2021
OF THE COUNCIL OF THE CITY OF FORT COLLINS
ADOPTING THE 2022 LARIMER COUNTY REGIONAL
TRANSPORTATION CAPITAL EXPANSION FEE SCHEDULE
WHEREAS, the City and Larimer County (the “County”) previously entered into an
intergovernmental agreement (the “IGA”), as amended from time to time, whereby the City
collects a Regional Transportation Capital Expansion Fee (also known as a “regional road
impact” fee) on behalf of Larimer County at the time of issuance of building permits, which fee
raises revenue for road improvements on regionally significant roadways that are necessitated by
new development; and
WHEREAS, the City and the County have established a procedure pursuant to City Code
Section 7.5-82 for the City Council to consider and approve any County-proposed changes to the
Regional Transportation Capital Expansion Fee schedule (the “Regional TCEF Schedule”) to
reflect changes in construction costs, or other relevant factors; and
WHEREAS, the last changes to the Regional TCEF Schedule were accomplished by City
Council’s adoption of Ordinance No. 153, 2020, and the County is now proposing a revised fee
schedule that increases the Regional TCEF by 2.4%, reflecting increases in road construction
costs based on an eight-quarter moving average calculated from the Colorado Construction Cost
Index data compiled by the Colorado Department of Transportation; and
WHEREAS, under the terms of the IGA, revisions to the Regional TCEF Schedule do not
take effect in the City until the City Council approves the new fee schedule; and
WHEREAS, the City Council has determined that it is in the best interests of the City that
the County’s proposed changes to the Regional TCEF Schedule be adopted to further the public
interest of adequately funding road improvements that are necessitated by new developments
along regionally significant roadways that impact the City.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That the 2022 Larimer County Regional Transportation Capital Expansion
Fee Schedule attached hereto as Exhibit “A” and incorporated herein by reference is hereby
adopted and approved and shall go into effect in Fort Collins upon the effective date of this
Ordinance.
-2-
Introduced, considered favorably on first reading, and ordered published this 7th day of
December, A.D. 2021, and to be presented for final passage on the 21st day of December, A.D.
2021.
__________________________________
Mayor
ATTEST:
_______________________________
Interim City Clerk
Passed and adopted on final reading on the 21st day of December, A.D. 2021.
__________________________________
Mayor
ATTEST:
_______________________________
Interim City Clerk
LARIMER COUNTY | ENGINEERING DEPARTMENT
P.O. Box 1190, Fort Collins, Colorado 80522-1190, 970.498.5700, Larimer.org
Transportation Capital Expansion Fee Schedule
Effective July 1st, 2021
•The fee is based on the current Larimer County Transportation Capital Expansion Fee
(TCEF) Study. The TCEF Study and TCEF Sections of the Larimer County Land Use Code
are at www.larimer.org/engineering/development-review.
•The “Residential” tiered fee schedule based on square footage applies to building permits
for new residential structures with an application date after June 30, 2018. For new
residences constructed after this date, the TCEF will be applied to any new or additional
finished living space square footage, including permits for additions, basement finishes &
detached buildings. In such cases, the total fee due is based on the incremental
difference between the existing & proposed finished living square footage. Finished living
square footage excludes unfinished basements, attics, and garage floor area. The
“Residential” tiered fee structure will not be applied to additions or finishes of existing
living space IF the original residential building permit was initiated before July 1, 2018.
•The “Nonresidential” fee schedule is based on building use and total square feet. The
TCEF applies to new square footage and to changes of use of existing square footage of
three general nonresidential categories that are further defined below:
o “Industrial” includes the processing or production of goods, along warehousing,
transportation, communications, and utilities.
o “Commercial” includes retail development and eating/drinking places, along with
entertainment uses often located in a shopping center (e.g. movie theater).
o “Office & Other Services” includes offices, health care and personal services,
business services (e.g. banks) and lodging. Public and quasi-public buildings that
provide educational, social assistance, or religious services are also included in
this category.
Land Use Type County Road
TCEF
Regional Road
TCEF
Total
Per Unit
Residential (per Dwelling) by Square Feet of Finished Living Space
900 or less (Square Feet) $2,212 $184 $2,396
901-1300 (Square Feet) $3,102 $258 $3,360
1301-1800 (Square Feet) $3,735 $312 $4,047
1801-2400 (Square Feet) $4,372 $366 $4,738
2401-3000 (Square Feet) $4,907 $410 $5,317
3001-3600 (Square Feet) $5,343 $445 $5,788
3601 or more (square Feet) $5,709 $476 $6,185
Nonresidential (per 1,000 Square Feet of Floor Area)
Industrial $1,360 $114 $1,474
Commercial $5,729 $479 $6,208
Office and other Services $3,371 $283 $3,654
EXHIBIT A