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COUNCIL - COMPLETE AGENDA - 02/11/2025
Fort Collins City Council Work Session Agenda 6:00 p.m., Tuesday, February 11, 2025 300 Laporte Avenue, Fort Collins, CO 80521 NOTICE: Work Sessions of the City Council are generally held on the 2nd and 4th Tuesdays of each month. Meetings are conducted in a hybrid format, however there is no public participation permitted in a work session. City Council members may participate in this meeting via electronic means pursuant to their adopted policies and protocol. How to view this Meeting: Meetings are open to the public and can be attended in person by anyone. Meetings are televised live on Channels 14 & 881 on cable television. Meetings are livestreamed on the City's website, fcgov.com/fctv. Upon request, the City of Fort Collins will provide language access services for individuals who have limited English proficiency, or auxiliary aids and services for individuals with disabilities, to access City services, programs and activities. Contact 970.221.6515 (V/TDD: Dial 711 for Relay Colorado) for assistance. Please provide 48 hours’ advance notice when possible. A solicitud, la Ciudad de Fort Collins proporcionará servicios de acceso a idiomas para personas que no dominan el idioma inglés, o ayudas y servicios auxiliares para personas con discapacidad, para que puedan acceder a los servicios, programas y actividades de la Ciudad. Para asistencia, llame al 970.221.6515 (V/TDD: Marque 711 para Relay Colorado). Por favor proporcione 48 horas de aviso previo cuando sea posible. While work sessions do not include public comment, mail comments about any item on the agenda to cityleaders@fcgov.com Meeting agendas, minutes, and archived videos are available on the City's meeting portal at https://fortcollins-co.municodemeetings.com/ City of Fort Collins Page 1 of 2 City Council Work Session Agenda February 11, 2025 at 6:00 PM Jeni Arndt, Mayor Emily Francis, District 6, Mayor Pro Tem Susan Gutowsky, District 1 Julie Pignataro, District 2 Tricia Canonico, District 3 Melanie Potyondy, District 4 Kelly Ohlson, District 5 Council Information Center (CIC) 300 Laporte Avenue, Fort Collins Cablecast on FCTV Channel 14 on Connexion Channel 14 and 881 on Comcast Carrie Daggett Kelly DiMartino Delynn Coldiron City Attorney City Manager City Clerk CITY COUNCIL WORK SESSION 6:00 PM A) CALL MEETING TO ORDER B) ITEMS FOR DISCUSSION 1. Staff Report: Homeless Outreach and Proactive Engagement Team Program Overview. The purpose of this item is to provide an overview of the activities and outcomes realized by the Homeless Outreach and Proactive Engagement (HOPE) team in 2024. 2. Financial Support for Construction & Demolition Facility in Larimer County. The purpose of this item is to discuss the City of Fort Collins’ support - financial and otherwise- of Larimer County’s Colorado Circular Communities Enterprise (C3) grant application to the Colorado Department of Public Health and Environment (CDPHE), which will enable the development and construction of a Construction & Demolition Processing Facility. 3. 2050 Tax Implementation: Parks and Recreation. The purpose of this item is to provide an update on the Parks and Recreation 2050 Tax implementation strategy and work. Information will be provided on the following topics: - Description of the Parks & Recreation 2050 Tax - The 80/20 Split - Types of Projects, and How They are Determined - Completed Projects, and Projects in the Queue - Next Steps Page 1 City of Fort Collins Page 2 of 2 4. Impact Fees 2025 Realignment. The purpose of this item is to propose a workplan for alignment of capital expansion fees and supporting studies to City Council values and priorities. Studies conducted in 2023 for updates of capital expansion fees remain unadopted, with inflationary-only fee adjustments implemented in 2024 and 2025. Staff proposes to explore modifications to the study methodologies, based on previous Council discussions, to better align the studies with other City objectives and will bring forward a proposal of revised fees to be effective January 1, 2026. C) ANNOUNCEMENTS D) ADJOURNMENT Upon request, the City of Fort Collins will provide language access services for individuals who have limited English proficiency, or auxiliary aids and services for individuals with disabilities, to access City services, programs and activities. Contact 970.221.6515 (V/TDD: Dial 711 for Relay Colorado) for assistance. Please provide advance notice. Requests for interpretation at a meeting should be made by noon the day before. A solicitud, la Ciudad de Fort Collins proporcionará servicios de acceso a idiomas para personas que no dominan el idioma inglés, o ayudas y servicios auxiliares para personas con discapacidad, para que puedan acceder a los servicios, programas y actividades de la Ciudad. Para asistencia, llame al 970.221.6515 (V/TDD: Marque 711 para Relay Colorado). Por favor proporcione aviso previo. Las solicitudes de interpretación en una reunión deben realizarse antes del mediodía del día anterior. Page 2 File Attachments for Item: 1. Staff Report: Homeless Outreach and Proactive Engagement Team Program Overview. The purpose of this item is to provide an overview of the activities and outcomes realized by the Homeless Outreach and Proactive Engagement (HOPE) team in 2024. Page 3 City Council Work Session Agenda Item Summary – City of Fort Collins Page 1 of 1 February 11, 2025 WORK SESSION AGENDA ITEM SUMMARY City Council STAFF Annie Hill, Sergeant Kelly Weaver, Lieutenant Kristy Volesky, Assistant Chief SUBJECT FOR DISCUSSION Staff Report: Homeless Outreach and Proactive Engagement Team Program Overview. EXECUTIVE SUMMARY The purpose of this item is to provide an overview of the activities and outcomes realized by the Homeless Outreach and Proactive Engagement (HOPE) team in 2024. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. Feedback from Council regarding the HOPE team and its impact in the community through its collaborative efforts with other teams. ATTACHMENTS 1. Presentation Page 4 Item 1. Program Overview Fort Collins Police Services Homeless Outreach & Proactive Engagement (HOPE) Page 5 Item 1. Agenda Introductions Team Overview Response Model Grants Pass Contact 2© 2020 City of Fort Collins Police Services Page 6 Item 1. The HOPE Team What is Homeless Outreach & Proactive Engagement (HOPE)? The HOPE team is an innovative Outreach team within the police department that uses problem-oriented policing strategies to address issues surrounding homelessness within our city. Through robust community partnerships we will provide compassionate service to our homeless population while promoting public health and safety for all Fort Collins residents. Who are the HOPE team members? Sgt. Annie Hill, CIT Certified Instructor and Director, Certified Addictions Technician William Kilcoyne CIT certified; Bailie Stine CSI, ASL, CIT Certified; Kelsey Skaar, CIT certified 3© 2020 City of Fort Collins Police Services Page 7 Item 1. Program Overview Program Goals Build relationships with individuals experiencing homelessness, business owners, and community members. Collaborate with Outreach Programs, Service Providers, and municipal and county courts to ensure a coordinated and comprehensive response to homelessness. Support and assist with maintaining the city landscape and natural areas, by addressing homeless encampments and encouraging unhoused individuals to utilize shelters as needed. The HOPE Team will provide training and education to police officers and other community members on how to effectively engage with individuals experiencing homelessness. 4 Page 8 Item 1. Response Model 5 •Support for in-progress calls for service with a homeless related issue. •Respond to homeless encampments and nuisance related properties within the city, including natural areas to promote a clean, safe, and healthy environment. •Follow up with community concerns regarding homeless related issues. •Internal referral system. •Crime analysis hot spots. •Long term problem-solving. Page 9 Item 1. Camp Clean Ups Fort Collins Municipal Code 17-181. Illegal to camp in city limits (this includes private property) Sec. 23-127. -Disposition of lost, abandoned or other unclaimed tangible property. property seized or otherwise obtained by the City may be disposed of in accordance with administrative policies. 6 Page 10 Item 1. Grants Pass Ruling •Grants Pass v. Johnson –ruling out of Grants Pass, Oregon which found it was unconstitutional to impose criminal penalties for public sleeping and camping when there is no shelter space available. This ruling made cities responsible for providing adequate shelter space. •Supreme Court overturned this ruling in June 2024 –it is not unconstitutional, and individuals can be cited/arrested for camping regardless of available shelter space •The City's stance: Maintain best practices by monitoring shelter capacity for nighttime camping. •Tents should not be erect during daytime hours (can cite) 7 Page 11 Item 1. Yearly Statistics 2023: Calls for service: 3088 Citations/ arrests: 356 Community Events: 69 Referrals to OFC: 169 Bike theft recoveries: 26 ($19,514) Camps/ sites cleaned: 1406 Sharps cleaned: 2080 RV/ Veh tows: 25 8 2024: Calls for service: 3179 Citations/ arrests: 893 Community Events: 161 Referrals to OFC: 218 Bike theft recoveries: 31 ($28,485) Camps/ sites cleaned: 1451 Sharps cleaned: 715 RV/ Veh tows: 23 Page 12 Item 1. To Access HOPE Emergencies: Call 9-1-1. Explain the situation fully to the dispatcher and they will dispatch the appropriate resources. You can request HOPE, but in an emergency, we want you to focus on answering the dispatcher’s questions. HOPE always listens for calls where we may be helpful and can join without being requested. 24/7 non-emergency dispatch line: 970-221-6540 Outreach Fort Collins: 970-658-0088 When an urgent response is not needed: Call the non-emergency line. If HOPE is not available, request a follow up from the team and we will work to follow up within 24-48 hours. Email: HOPE@fcgov.com OR use Access Fort Collins 9 Page 13 Item 1. File Attachments for Item: 2. Financial Support for Construction & Demolition Facility in Larimer County. The purpose of this item is to discuss the City of Fort Collins’ support- financial and otherwise- of Larimer County’s Colorado Circular Communities Enterprise (C3) grant application to the Colorado Department of Public Health and Environment (CDPHE), which will enable the development and construction of a Construction & Demolition Processing Facility. Page 14 City Council Work Session Agenda Item Summary – City of Fort Collins Page 1 of 2 February 11, 2025 WORK SESSION AGENDA ITEM SUMMARY City Council STAFF Tyler Marr, Deputy City Manager Jacob Castillo, Chief Sustainability Officer SUBJECT FOR DISCUSSION Financial Support for Construction & Demolition Facility in Larimer County. EXECUTIVE SUMMARY The purpose of this item is to discuss the City of Fort Collins’ support- financial and otherwise- of Larimer County’s Colorado Circular Communities Enterprise (C3) grant application to the Colorado Department of Public Health and Environment (CDPHE), which will enable the development and construction of a Construction & Demolition Processing Facility. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. What feedback do Councilmembers have regarding the potential to invest up to $1.5M of 2050 Climate Tax Revenue to support Larimer County in the development and construction of a Construction & Demolition Processing Facility, with the assumption that the facility will be designed and built in a manner that assists the City in reaching its waste and climate goals? BACKGROUND / DISCUSSION The City has established an aggressive goal to reach zero waste by 2030, meaning nothing goes to landfills; rather, waste gets reused, recycled and composted. To reach this goal, there are critical infrastructure investments needed in our region to receive, process and divert materials from the landfill into economically viable end markets. Adopted in 2018, the regionally developed Solid Waste Infrastructure Master Plan (SWIMP) identifies the infrastructure and facility needs for Larimer County and the communities therein. Among the “Tier 1”- or highest priority- projects that are slated to move forward are the new Larimer County Landfill and the recently approved Central Diversion and Transfer Station (TS) facility. Additionally, the County is preparing to submit a grant application to the State of Colorado in February of 2025 that will significantly offset the costs of building a Construction & Demolition (C&D) Processing Facility, which is another one of the “Tier 1” projects identified in the SWIMP, and critical infrastructure for the City’s zero waste pathway. The estimated total cost for the project ranges between $8.7M and $10.5M, depending on state permitting requirements. The County will be requesting $5M from the state and is looking to local partners to support the balance of the investment. Given the County’s sizable investment in the landfill and transfer station, it Page 15 Item 2. City Council Work Session Agenda Item Summary – City of Fort Collins Page 2 of 2 is likely to be economically infeasible for the County to also move forward with the C&D facility without the grant award from the State and financial assistance from local partners. During the 2025/26 budget process the City made the intentional decision to leave approximately $1.5M of the estimated $5M in 2050 Climate Tax revenue for future opportunities. At a conceptual level, the C&D Facility appears to meet the intended use of the 2050 Climate Tax and serves as a critical step in advancing zero waste goals and mitigating climate pollution. Following C&D materials, the SWIMP identifies food scraps as the next major area of opportunity for waste reduction and greenhouse gas emissions reduction. NEXT STEPS Staff will engage with Larimer County to further understand the financial need for the construction of the C&D facility and assess how its construction will assist Fort Collins in achieving its zero waste goals in a manner that we can measure and validate. Contingent on Council’s feedback, staff will draft a letter of support for the County’s grant application to the State which outlines financial commitments of the City, contingent upon the City’s confirmation that this infrastructure investment materially impacts the City’s ability to achieve its zero waste goals. Should the grant be awarded, staff would ask Council for an appropriation of the 2050 climate funds. Staff will continue to work with the County and other partners to assess additional steps needed to advance goals related to food scraps and other compostable organic waste. ATTACHMENTS 1. Presentation Page 16 Item 2. Headline Copy Goes Here Chief Sustainability Officer Jacob Castillo Deputy City Manager Tyler Marr February 11, 2025 Financial Support for Construction & Demolition Facility in Larimer County Page 17 Item 2. Headline Copy Goes HereIntroduction 2 Purpose of work session: •Provide update on current state of solid waste infrastructure investments in the region •Discuss partnership opportunity with Larimer County on a Construction & Demolition Processing Facility. •Identify next steps Page 18 Item 2. Headline Copy Goes HereCouncil Question What feedback do Councilmembers have regarding the potential to invest up to $1.5M of 2050 Climate Tax Revenue to support Larimer County in the development and construction of a Construction & Demolition Processing Facility? Page 19 Item 2. Headline Copy Goes HereSituational Overview City of Fort Collins Goal: Zero Waste Community by 2030 Being a zero waste community means that nothing goes into landfill. All of our “waste” gets reused, recycled and composted. Achieving the zero waste goal will require additional infrastructure, possible policy actions, and behavioral changes within the community. Pathways to zero waste were identified in Solid Waste Infrastructure Master Plan, adopted by multiple jurisdictions, including Fort Collins, in 2018. The SWIMP identified Tier 1 infrastructure needs, including a regional landfill, transfer station, C&D facility, composting facility, and a yard waste open windrow composting Page 20 Item 2. Headline Copy Goes HereTier 1 Project Construction Timeline There are several Tier 1 projects in various stages of development •Larimer County Landfill •Estimated capital investment: $45M •Opening early 2026 •Central Diversion & Transfer Station •Estimated capital investment: $23.7M •Estimated opening Online? •Construction & Demolition Processing Facility •Estimated capital investment: $8.7M-$10.5M •Estimated opening TBD •Composting Facility: •Currently under evaluation and study through TASP Grant Page 21 Item 2. Headline Copy Goes HereFocus: C&D Facility as Proposed by Larimer County •15,000 SF building with 2 open sides and a roof. •Share operations of the Transfer Station. •Supports 50 tons per hour mechanical processing system designed to process large volumes of C&D debris and commercial waste material. •Includes a 25,000 SF processing area designed to accept source separated materials, stockpile processed materials and loading of processed materials to specific markets to be recycled, reused or converted into useful products. •Capacity to process 130,000 tons of C&D materials annually. •Goal: Achieve a 40% or greater diversion rate (exceeding the state target of 36%) C&D Facility: Conceptual illustration provided by Larimer County Page 22 Item 2. Headline Copy Goes HereBenefits of C&D Material Recycling and Reuse C&D Recycling and Reuse is critical step in resource conservation and aids in creating a more circular economy. Other benefits include: Reduced waste sent to landfills, prolonging landfill life and decreasing environmental impacts. Decreased need for virgin materials in new construction projects. Cost savings from recycling materials rather than disposing of them in landfill. Community education and engagement through new and innovative recycling and reuse programs. Economic opportunity through product development, e.g. mulch and other products from recycled materials, and growth in the recycling/manufacturing sectors. Facilitates compliance with local regulations.Page 23 Item 2. Headline Copy Goes HereThe Numbers in Broad Strokes The proposed C&D Facility is estimated to cost between $8.7M -$10.5M. In February of 2025,the County will be pursuing a grant through the State in which they will be seeking $5M in project costs. Larimer County is asking regional partners to support the balance of the investment,specifically requesting the City of Fort Collins for $2.6M -$3.1M (1/3 of the estimated remaining cost). The City currently does not have the requested amount in the budget,however there was approximately $1.5M of the 2050 Climate Tax that was unallocated this budget cycle and was intentionally set aside for opportunities. Given the amount of investment the County is making in the new landfill and transfer station,without additional resources it is unlikely that a C&D Facility will come to fruition. Page 24 Item 2. Headline Copy Goes HereCouncil Questions What questions do you have? What feedback do Councilmembers have regarding the potential to invest up to $1.5M of 2050 Climate Tax Revenue to support Larimer County in the development and construction of a Construction & Demolition Processing Facility? Page 25 Item 2. Headline Copy Goes Here For More Information, Visit THANK YOU! fcgov.com Page 26 Item 2. File Attachments for Item: 3. 2050 Tax Implementation: Parks and Recreation. The purpose of this item is to provide an update on the Parks and Recreation 2050 Tax implementation strategy and work. Information will be provided on the following topics: - Description of the Parks & Recreation 2050 Tax - The 80/20 Split - Types of Projects, and How They are Determined - Completed Projects, and Projects in the Queue - Next Steps Page 27 City Council Work Session Agenda Item Summary – City of Fort Collins Page 1 of 6 February 11, 2025 WORK SESSION AGENDA ITEM SUMMARY City Council STAFF Dean Klingner, Community Services Director LeAnn Williams, Recreation Director Mike Calhoon, Parks Director Jill Wuertz, Sr. Manager, Park Planning & Development SUBJECT FOR DISCUSSION 2050 Tax Implementation: Parks and Recreation. EXECUTIVE SUMMARY The purpose of this item is to provide an update on the Parks and Recreation 2050 Tax implementation strategy and work. Information will be provided on the following topics: - Description of the Parks & Recreation 2050 Tax - The 80/20 Split - Types of Projects, and How They are Determined - Completed Projects, and Projects in the Queue - Next Steps GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. What feedback do Councilmembers have on the Parks and Recreation 2050 Tax implementation strategy? BACKGROUND / DISCUSSION Description of the Parks and Recreation 2050 Tax In 2023, Fort Collins voters approved the passage of a new, half cent sales tax, providing dedicated funding to Parks and Recreation, Climate Programs, and Transit until 2050. Parks and Recreation receives half of the half cent, which currently equates to approximately $10M-$11M, annually. The intent of the funding is to supplement, and not replace, existing funding for specified purposes. The entire half cent tax will be reconciled to the stated percentages by the end of 2030, 2040 and 2050. Page 28 Item 3. City Council Work Session Agenda Item Summary – City of Fort Collins Page 2 of 6 Broadly, the ballot language allows the Parks and Recreation funding to be used for two purposes: 1. Replacement, upgrade, maintenance, and accessibility of park facilities 2. Replacement and construction of indoor and outdoor recreation and pool facilities The adopted ballot language is as follows, “50% for the replacement, upgrade, maintenance, and accessibility of parks facilities and for the replacement and construction of indoor and outdoor recreation and pool facilities.” In June 2024, the Council made an initial appropriation of the available funds, and Parks and Recreation teams began implementation. Working through a framework of prioritization, staff is using the funding to expand capacity within work teams, accelerate parks and recreation infrastructure replacements, and strategically transform the scale of parks and recreation capital projects. In 2024, the City completed improvements and projects at more than 20 park locations. After a budget process in 2024, which included offers for the Climate and Transit portion of the tax as well, the following appropriations were made for the first year of the 2050 Parks & Recreation tax funding. 2024 Budget Appropriations: • Building Capacity & Data to Expand P&R Infrastructure Replacement $552,586 (staffing): This offer adds four full-time employees to build capacity to plan, design and construct programs and projects. • Accelerated Parks and Recreation Infrastructure Replacement $750,000: This offer provides resources required to ramp up Parks and Recreation Infrastructure Replacement Programs (IRPs). This program is essential to keeping park and recreation facilities and infrastructure safe, and in usable condition. It is also imperative to preserve equity within the community to ensure that every household, regardless of the age of the neighborhood, has access to high-quality parks and recreational experiences • Transform Scale of Parks and Recreation Capital Projects Delivered - $4,000,000: This funding provides a new scale of resources which will allow for larger, more transformational projects to start; although completion of larger projects may take several years. Early funding would be encumbered for design, development and procurement. • Any collected funds in excess of what is listed above will go into a reserve fund (~approx. $4-5M in 2024). Additional information related to all offers: • The staffing model for 2024 allows the IRP to ramp up, and includes funding for positions starting in 2024, 2025, and 2026. • It is typical for multiple IRP projects to overlap over an extended period. In this budget cycle, projects from the plans listed above will begin, but are subject to change based on other situations (partnerships, safety issues, vandalism issues, continued preventative maintenance projects, etc.) that may arise. • The dedicated funding from the 2050 Tax will be supplemented with existing appropriations from historical general fund support in the Operations Services Department, and potential other funding, to complete facility replacement and improve sustainability and green infrastructure in alignment with additional strategic objectives. • The Parks system has approximately $50M in deferred asset management needs, which is tracked by the following metric: Parks Asset Management Funding Page 29 Item 3. City Council Work Session Agenda Item Summary – City of Fort Collins Page 3 of 6 The 80/20 Split At the August 27, 2024 Work Session, which included an update on the Parks and Recreation 2050 Tax Strategy, Councilmembers expressed general support for the proposed 80/20% percentage split of life-of- tax funds. Staff outlined the split between asset management and upgrades to existing parks, park facilities and recreation facilities (80% over the life of the tax), and capital for new and replacement recreation facilities and pools (20% over the lifetime of the tax). The primary rationale for this guideline is simply to operationalize a practice of prioritizing maintenance and replacement of existing parks, recreation centers and parks facilities (80%) over building new capital investments. In a follow-up memo, staff revisited assumptions based on existing analysis to determine that a split of 80% of the dedicated Parks and Recreation proceeds from the 2050 tax should be sufficient to resource the Parks and Recreation asset management needs. For both Parks and Recreation, these gaps were projected as the funding needs over the next 20 years. An approximate gap of $110M for Parks, and $55M for Recreation, combine for a total anticipated gap of $165M. Over the 20 years in the projections, that represents an average annual need of $8.25M per year. It is important to note that construction cost inflation over time, growth rates of local sales tax, updated asset assessments, and changing community needs will require these priorities, and new funding needs to be periodically updated over the lifetime of the tax. From an operational perspective, Parks and Recreation will be implementing the funding in two distinct ways. The first is building out asset management programs in Parks, and for Recreation facilities. This work is well underway and includes on-going evaluation, prioritization, and optimizing replacement of all Parks and Recreation facilities. The second is for stand-alone large capital projects that are one-time in nature and could include replacement of an existing recreation facility (i.e. Mulberry Pool) and new facilities (i.e. Southeast Community Center (SECC)). Based on the demands for ongoing asset replacement, it is unlikely that the tax could support additional new Recreation centers beyond the two listed. However, the life of the tax is long enough that circumstances may change in the future to make this possible. The August 27 Work Session was focused on the possible large capital needs in Recreation (the Southeast Community Center and the Mulberry Pool Replacement). The upcoming Work Session will provide additional information, strategy and guidance for the “replacement, upgrade, maintenance, and accessibility” portion of the tax. Types of Projects and How They are Determined Sites move through stages, typically referred to as their life cycle. These stages include: • New/Creation: New development is guided by the 2021 Parks and Recreation Plan – ReCreate. Capital Expansion Fees are the primary funding source for new neighborhood and community parks, but general fund, direct developer contributions and dedicated taxes have been used in the past. New Recreation facilities have been funded by a variety of sources, with dedicated taxes (Community Capital Improvement Project (CCIP), Building on Basics, a dedicated 5-year tax for EPIC, etc.) being the largest source. • Operations and Maintenance: Daily tasks needed to keep parks running; includes utility payments, amenity support supplies, staffing, etc. Typically funded through the General Fund for parks. • Preventative Maintenance: Projects over ~$7500, typically not covered by Operations and Maintenance, that are less frequent but recurring. Example projects include painting structures to extend life span, filling cracks and potholes in asphalt to prevent degradation from water intrusion, surfacing refreshes in playgrounds to maintain impact attenuation, pump part replacements to maintain irrigation reliability, lining raw water pipes to maintain water supply reliability, court surface repairs to maintain playability, etc. This work focuses on minimizing risk, improving safety and extending the life Page 30 Item 3. City Council Work Session Agenda Item Summary – City of Fort Collins Page 4 of 6 span of the asset. Preventative maintenance utilizes lapsing funds in both the General Fund and the 2050 Tax. • Repair & Replacement: Minor or major repair and replacement to assets due to end of useful life, safety issues, vandalism, regulatory or code compliance, material changes, etc. are funded by the 2050 Tax. Example projects include conversion of asphalt courts to post-tension concrete, replacement of windows broken by vandalism to more vandal resistant materials, etc. Replacements are guided by the following plans: 2022 Parks Infrastructure Replacement Plan 2022 Recreation Department Operational & Program Plan Update-Redesign/Rebuild: Site planning and community engagement of new and existing infrastructure and amenities. Typically, 20-30 years beyond original site plan. This process can also be driven by a change of use or changing conditions and may involve only a portion of a site or the entire park. Updates can be funded by the 2050 Tax and other sources (donation, CCIP, etc.). The 2021 ReCreate: Parks and Recreation Plan created a basic evaluation criterion when engaging the community on updates. In addition, this work follows recommendations in the 2021 Parks and Recreation Plan: 2021 P&R Plan - Action 1.1- Expand the usability of existing parks.: Parks, like other built infrastructure, have a life cycle. Recreational preferences, design preferences, and neighborhood demographics change over time. Periodically, parks must be evaluated to determine whether they are meeting community needs and performing as well as they could be. o 2021 P&R Plan-Evaluation Criteria: Community Needs: Are the community’s needs being met? Usage: How well is the site being used? Condition of existing amenities: What is the condition of existing amenities? Design & Function: Is the overall design still relevant and does it enhance the user experience? Does the park or facility still function as designed? Additional prioritization criteria (see below). Completed Projects and Projects in the Queue In 2024, 2050 Tax funds have been invested in more than 20 park and recreation locations throughout the City. Following recommendations from the 2024 budget process, the information below summarizes work to date: - Build Capacity: The vision of the ballot and ordinance languages has been incorporated into writing offers for the 2025/26 BFO offers, as well as discussions at the Parks and Recreation Advisory Board & Council (~80/20 split between asset management and new capital; allocating through BFO; discussion on SE Community Center). Staff hiring has taken place and of the four staff requested in 2024, three are now onboard and a re-organization of the Park Planning and Development division has taken place. Three additional staff will be hired as part of the 2025/26 BFO offers. This funding will also create a 10-year Recreation Capital Improvement Program (CIP) Plan, starting in 2025. Page 31 Item 3. City Council Work Session Agenda Item Summary – City of Fort Collins Page 5 of 6 - Accelerate Parks and Recreation Infrastructure Replacement Funds have been invested in more than 20 park and recreation locations throughout the City. Projects completed focused on partnership opportunities (improving the EPIC parking lot in coordination with Operation Services) or shovel ready projects that help us prepare for larger work to come (such as improving tennis courts around the City prior to the Rolland Moore tennis center planning, design & construction project); and/or fully completing existing projects underway (work at Northside Aztlan Center for the front desk and childcare outdoor spaces). Additional examples of projects completed with this funding include: Greenbriar Tennis & Basketball Court Replacement, Westfield Tennis Courts Replacement, Overland Park Bridge Repair, Wallenberg spur of the Spring Creek Trail bridge replacement, pump repairs, asphalt repairs (Rogers, Martinez, Rolland Moore). - Transforming Scale of Parks and Recreation Capital Projects Capital projects on the near horizon include the renovation of the Rolland Moore tennis center and playground, and renovation of the front desk area at Northside Aztlan Community Center. Landings Park renovation is also being scoped from this funding. The Parks Infrastructure Replacement Plan guides decision-making for replacement as discussed above. However, prioritization of park upgrade criteria has not occurred. Staff will work on developing criteria by studying precedent examples, such as: Atlanta Data-Driven Mapping Tool for Prioritizing Parks & Recreation Investments + Capital Improvements: Equity Data Tool Criteria Based System for MPRB (Minneapolis Park and Recreation Board) Capital and Rehabilitation Project Scheduling - 2016 Initial concepts are to combine relevant data already collected from the IRP plan with additional criteria such as neighborhood safety, changing neighborhood conditions, additional equity demographics, level of service, etc. Concurrent to the development of this program, the planning and design phase for Soft Gold Park will begin, since it meets much of the criteria listed above. In addition to the projects mentioned above, the design of the new Southeast Community Center is underway. Additional project ideas are listed below after the 2025/26 budget offers. Staff are focusing this exciting investment in our community to build capacity internally for additional projects, accelerate parks and recreation infrastructure replacements, and strategically transform the scale of parks and recreation capital projects. 2025/26 Budget - Offer 54.11 Parks Enhancement- 3.0 FTE - Parks and Recreation Expanded Infrastructure Replacement Program Operations (2025: 183,376; 2026: 354,379) - Offer 54.12 Parks and Recreation Infrastructure Replacement Projects (2025: $5,768,750; 2026: $5,787,968) added to 2024 capital funding Identified capital projects include: NACC Front Desk Replacement NACC Childcare Project NACC Gymnasium Improvements Lee Martinez Farm Tack Shed Addition Page 32 Item 3. City Council Work Session Agenda Item Summary – City of Fort Collins Page 6 of 6 Spring Canyon Splashpad Safety (moving pump controls above ground)-Design & Construction Rolland Moore Tennis & Playground - Planning Landings Park Update - Planning Alta Vista Update - Planning Romero Update – Planning Freedom Square Update-Planning Soft Gold Update - Planning Legacy Update-Planning - Offer 54.13 Ongoing - Parks and Recreation Infrastructure Replacement Program Operations (2025: $460,769; 2026 $477,941) - Offer 60.9 Parks Infrastructure Replacement Program (2025: $865,619; 2026: $868,953) - Offer 76.2 Design for EPIC Ice Chiller (2025: $400,000); NEXT STEPS We anticipate the creation of a dashboard to support project tracking and progress, transparency, and accountability after the GIS Analyst II position is onboarded. Precedent sites include: Parks CIP Experience from Frisco, TX MPRB Capital Improvement Program Dashboard from Minneapolis Periodic updates will also be posted to City websites as the implementation of 2050 Tax funding continues. REFERENCES 1. Parks Infrastructure Replacement Program 2. Recreation Home Page Page 33 Item 3. Headline Copy Goes Here Recreation Director LeAnn Williams Community Services Director Dean Klingner 2050 Tax Implementation: Parks & Recreation 2/11/2025 Park Planning & Development Sr. Manager Jill Wuertz Community Members at Dovetail Park Page 34 Item 3. Headline Copy Goes Here 2 Question for Council What feedback do Councilmembers have on the 2050 Parks and Recreation Tax implementation strategy? Page 35 Item 3. Headline Copy Goes Here 3 2050 Parks and Recreation Tax Details 2050 TAX OVERVIEW: •½-cent sales tax •Passed in November 2023 •Expires in 2050 •Spending shall supplement and not replace •Allocations: 25% Transit, 25% Climate, and 50% for Parks & Recreation Replacement, upgrade, maintenance, and accessibility of parks facilities and for the replacement and construction of indoor and outdoor recreation and pool facilities 2050 Parks and Recreation Tax Language Page 36 Item 3. Headline Copy Goes Here 4 How should 2050 P&R tax be split between eligible elements? 20% 80% 80% -Allocated for the replacement, upgrade, and maintenance of parks and recreation amenities 20% -Allocated for the replacement and construction of indoor and outdoor recreation and pool facilities LIFE OF TAX = 27 YEARS $10.5M (2024 dollars) x 27 years = ~$283 million ~80% = ~$227M replacement/update = ~$8.4M/year ~20% = ~$57M replacement and construction of indoor and outdoor recreation and pool facilities = ~$2.1M/year Page 37 Item 3. Headline Copy Goes Here 5 Parks and Recreation By The Numbers 4 Pools 1 outdoor & 3 indoor Recreation Facilities10 55 Parks Number of annual Recreation program participants 1 Million+Annual hours spent on playground maintenance, repairs & inspections 1,627Average age of Fort Collins’ parks37 Page 38 Item 3. Headline Copy Goes HereGoal: Update Recreation Facilities IRP 6 Note: This is an incomplete assessment of Recreation IRPPage 39 Item 3. Headline Copy Goes Here 7 Parks Infrastructure Replacement Report Note: This study only looks at full replacements. It does not include cost data associated with some of the ongoing preventative ma intenance, such as filling cracks in asphalt tennis courts annually, or replacement of smaller subsets of assets, such as full replacement of poured -in-place surfacing for a playground which has a life cycle of 8-10 years, as opposed as to the typical playground life cycle of 15 -20 years.Page 40 Item 3. Headline Copy Goes Here Park Capital Expansion Fees ›Capital Expansion fees pay for new neighborhood and community parks ¼ Cent Capital & Other ›Recreation: Partnership/ Grants, ¼ cent capital, 2050 Tax pay for new recreation facilities 2050 Tax ›Site planning and engagement of new and existing infrastructure and amenities. ›Typically 20-30 years beyond original site plan. ›Process can also be driven by a change of use and involve only a portion of a site. General Fund & 2050 Tax ›Less frequent, but recurring maintenance, such as painting, filling cracks in asphalt, surfacing refreshes, pump filter replacements, etc. Utilizes lapsing funds. 8 Life Cycle of a Park or Facility 2050 Tax ›Minor or major repairs and/or replacements to assets due to end of useful life, safety issues, vandalism,without major changes, etc. NEW (INITIAL INSTALL) General Fund ›Daily tasks needed to keep parks running, including utility payments, amenity support materials, staffing, etc. OPERATIONS & MAINTENANCE PREVENTATIVE MAINTENANCE REPAIR / REPLACEMENT UPDATE: REDESIGN / REBUILD PRIMARY FUNDING SOURCES Page 41 Item 3. Headline Copy Goes HerePreventative Maintenance 9 Asphalt Repairs Painting Surface Infill Court Resurfacing Page 42 Item 3. Headline Copy Goes HereRepair / Replacement 10 Lee Martinez Community Park: Before Replacement Lee Martinez Community Park: After Replacement Page 43 Item 3. Headline Copy Goes HereUpdate Needed: Landings Park (Est. 1984) 11 Little architectural interest; outdated End of useful life playground with missing play value Missing xeric landscaping ADA upgrades needed for hardscapes Page 44 Item 3. Headline Copy Goes HereSugar Beet Park (Est. 2019) 12 Page 45 Item 3. Headline Copy Goes Here 13 How To Allocate The 80% RECREATION PREVENTATIVE MAINTENANCE REPAIR/ REPLACEMENT UPDATE Annual: ~$8.4M $1-$4M $750K-$1.5M $1-$5M $4-$5M Total Life: ~$227M $27-$108M $20.25-$37.5M $27-$135M $108-$135M Page 46 Item 3. Headline Copy Goes HerePlanning Our Next Steps 14 Work on Prioritization Criteria for Park Updates Utilize Existing Data from Parks IRP Plan Park age Asset Condition Equity Find Additional Data Changing neighborhood conditions Neighborhood safety Additional equity demographics Level of service Recreation Capital Improvement Program (CIP) RFP release in February 2025 9-12 month process Incorporate existing Ops ADA and facility assessment EVALUATION CRITERIA Are the community’s needs being met? How well is the site being used? What is the condition of existing amenities? Is the design still relevant, and does it enhance the user experience? Does the park or facility still function as designed?Page 47 Item 3. Headline Copy Goes Here 15 Question for Council What feedback do Councilmembers have on the 2050 Parks and Recreation Tax implementation strategy? Page 48 Item 3. Headline Copy Goes Here Thank You! 16 2050 Tax Project Sign (Spanish on reverse)Page 49 Item 3. File Attachments for Item: 4. Impact Fees 2025 Realignment. The purpose of this item is to propose a workplan for alignment of capital expansion fees and supporting studies to City Council values and priorities. Studies conducted in 2023 for updates of capital expansion fees remain unadopted, with inflationary-only fee adjustments implemented in 2024 and 2025. Staff proposes to explore modifications to the study methodologies, based on previous Council discussions, to better align the studies with other City objectives and will bring forward a proposal of revised fees to be effective January 1, 2026. Page 50 City Council Work Session Agenda Item Summary – City of Fort Collins Page 1 of 3 February 11, 2025 WORK SESSION AGENDA ITEM SUMMARY City Council STAFF Josh Birks, Deputy Director, Sustainability Services Joe Wimmer, Utilities Finance Director, Financial Services SUBJECT FOR DISCUSSION Impact Fees 2025 Realignment. EXECUTIVE SUMMARY The purpose of this item is to propose a workplan for alignment of capital expansion fees and supporting studies to City Council values and priorities. Studies conducted in 2023 for updates of capital expansion fees remain unadopted, with inflationary-only fee adjustments implemented in 2024 and 2025. Staff proposes to explore modifications to the study methodologies, based on previous Council discussions, to better align the studies with other City objectives and will bring forward a proposal of revised fees to be effective January 1, 2026. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. Does Council have any additions to our recap of 2023/2024 discussions? 2. Do you have any questions or comments about the proposed 2025 work plan? BACKGROUND / DISCUSSION Fee History and Current State: Impact fees (also known as capital expansion fees) are one-time payments imposed on new development that must be used solely to fund growth-related capital projects. An impact fee represents new growth’s proportionate share of capital facility needs. Fees cannot be used for improvements which solely benefit adjacent development, existing deficiencies, and/or for maintenance. The City collects capital expansion fees for neighborhood parks, community parks, fire protection, police, general government, and transportation. In November 2024, staff proposed adoption of capital expansion fees determined by studies conducted by external consultants in 2023. For the comprehensive study and update of fees, the City contracted with Economic & Planning Systems to update the Capital Expansion Fees (CEFs) and with TischlerBise to update the Transportation Capital Expansion Fees (TCEFs). In place of adopting the full fees presented by the studies, inflationary adjustments were approved by City Council for both 2024 and 2025. All capital expansion fees have received inflationary-only adjustments since the most recent comprehensive studies conducted in 2017. Page 51 Item 4. City Council Work Session Agenda Item Summary – City of Fort Collins Page 2 of 3 Concurrent with the capital expansion fee work of 2023/24, Utilities staff updated impact fee models that were ultimately adopted in full for 2025 implementation. Utilities development fees include Water, Wastewater, and Stormwater Plant Investment Fees (PIFs) and Electric Capacity Fee (ECF). Utilities will continue updating fee models on a bi-annual basis and are not planned for inclusion in the 2025 capital expansion fee review. Realignment Objectives: The 2023 studies largely relied on an incremental expansion (or level of service) methodology, which bases the fees on the existing levels of service of the City’s facilities and capital assets. The incremental expansion method is a common technique and appropriate for the City’s capital growth projections due to the limitation of detailed capital improvement plans. This approach catalogs the current level of service in the city and converts it to a value per unit of service demand (e.g. service population or vehicle miles traveled). Considering discussions from previous Council Work Sessions, staff are working to evaluate the assumptions and variables included in the level of service approach to understand the maneuverability within the study models to best reflect the City’s policy objectives. Examples include a review of the unit square footage fee schedules, impact on affordable housing costs, future growth and level of service assumptions, and future transportation infrastructure goals. Staff is committed to maintaining the data- driven and defensible approach provided by the existing models and will be simultaneously conducting a legal review of the methodologies used. Proposed 2025 Timeline: After direction-setting and guidance from the February work session, staff will continue assessing methodological options to bring forward modifications at a mid-year Council Finance Committee meeting and Council Work Session. Staff is tentatively planning to propose an updated fee schedule in 2025 for an effective date of January 1st, 2026. 2023 Study Original Proposed Fees (not including 2024 or 2025 inflationary adjustments): Transportation Capital Expansion Fees (TCEFs): Page 52 Item 4. City Council Work Session Agenda Item Summary – City of Fort Collins Page 3 of 3 Capital Expansion Fees (CEFs): NEXT STEPS Council Finance Committee – May/June 2025 Council Work Session – July/August 2025 ATTACHMENTS 1. 2023 Capital Expansion Fee Study 2. 2023 Transportation Capital Expansion Fee Study 3. Presentation Page 53 Item 4. 2023 Capital Expansion Fee Study Prepared for: City of Fort Collins, Colorado Prepared by: Economic & Planning Systems, Inc. November 21, 2023 EPS #233062 Page 54 Item 4. Table of Contents 1. Executive Summary ................................................................................ 1 Introduction ................................................................................................. 1 Current Capital Expansion Fee Program ............................................................ 1 Proposed Updated Capital Expansion Fee Program ............................................. 2 Updated Capital Expansion Fees ...................................................................... 3 Legal Standards for Impact Fees ..................................................................... 5 2. Methodology .......................................................................................... 7 Impact Fee Methodologies .............................................................................. 7 Level of Service Definition .............................................................................. 8 Cost Allocations by Land Use Type ................................................................... 8 Service Population ......................................................................................... 9 Residential Occupancy Factors ...................................................................... 10 Nonresidential Occupancy Factors .................................................................. 12 3. Neighborhood and Community Parks Capital Expansion Fees ........................ 13 Level of Service Definition ............................................................................ 13 Residential Capital Expansion Fee Calculation .................................................. 15 4. Police Capital Expansion Fee .................................................................... 16 Level of Service Definition ............................................................................ 16 Residential Capital Expansion Fee Calculation .................................................. 17 Nonresidential Capital Expansion Fee ............................................................. 17 5. Fire Protection Capital Expansion Fee........................................................ 18 Level of Service Definition ............................................................................ 18 Residential Capital Expansion Fee Calculation .................................................. 19 Nonresidential Capital Expansion Fee ............................................................. 20 6. General Government Capital Expansion Fee ............................................... 21 Level of Service Definition ............................................................................ 21 Residential Capital Expansion Fee Calculation .................................................. 22 Nonresidential Impact Fee ............................................................................ 22 Page 55 Item 4. List of Tables Table 1. Current Capital Expansion Fees ............................................................... 2 Table 2. Updated Residential and Nonresidential Capital Expansion Fees, 2023 .......... 4 Table 3. Fort Collins Service Population Calculation, 2023 ....................................... 9 Table 4. Fort Collins Residential Service Demand Factor Calculation, 2023 ............... 10 Table 5. Fort Collins Residential Occupancy Factors .............................................. 11 Table 6. Fort Collins Nonresidential Occupancy Factors ......................................... 12 Table 7. Parks Cost per Service Unit, 2023 ......................................................... 13 Table 8. Parks Maintenance Facility per Capita Cost, 2023 ..................................... 14 Table 9. Neighborhood Parks Residential Capital Expansion Fee, 2023 .................... 15 Table 10. Community Parks Residential Capital Expansion Fee, 2023 ........................ 15 Table 11. Police Inventory and Replacement Cost per Capita, 2023 .......................... 16 Table 12. Police Residential Capital Expansion Fee, 2023 ........................................ 17 Table 13. Police Nonresidential Capital Expansion Fee, 2023 ................................... 17 Table 14. Fire Protection Inventory and Replacement Cost per Capita, 2023 .............. 18 Table 15. Fire Protection Asset Cost by Service Area, 2023 ..................................... 19 Table 16. Fire Residential Capital Expansion Fee, 2023 ........................................... 19 Table 17. Fire Protection Nonresidential Capital Expansion Fee, 2023 ....................... 20 Table 18. General Government Inventory and Replacement Cost, 2023 .................... 21 Table 19. General Government Residential Capital Expansion Fee, 2023 ................... 22 Table 20. General Government Nonresidential Capital Expansion Fee, 2023 ............... 22 List of Appendix Tables Table A-1. Comparison of Major Inputs: 2017 vs. 2023 Study ................................... 24 Table A-2. Current Residential Impact Fee Comparisons .......................................... 25 Table A-3. Current Nonresidential Impact Fee Comparisons ...................................... 26 Page 56 Item 4. Economic & Planning Systems, Inc. 233062 - Draft Impact Fee Report 11-21-23.docx 1 1. Executive Summary Introduction This Report was prepared by Economic & Planning Systems (EPS) for the City of Fort Collins to update its Capital Expansion Fee (CEF) program. CEFs are the City’s term for what are defined as impact fees under State of Colorado law. The Report documents costs and other supporting data to provide the nexus and proportionality requirements needed to adopt impact fees to comply with State of Colorado law and other case law regarding development charges. Capital Expansion fee calculations are provided for the following fee categories currently levied by the City on new development: • Neighborhood Parks • Community Parks • Police • Fire Protection • General Government Current Capital Expansion Fee Program The City collects impact fees or CEFs for neighborhood parks, community parks, fire protection, police, general government, and transportation (Table 1). The transportation impact fee is known as the Transportation Capital Expansion Fee or TCEF. The TCEF is currently undergoing an update contained in a separate study. Residential capital expansion fees are charged per dwelling unit with the fees varying by the size of the dwelling unit, as large units have larger average household sizes than smaller units. The current residential CEFs (including the TCEF) range from a total of $9,296 for dwelling units up to 700 square feet to $19,049 for units over 2,200 square feet. These fees apply to all dwelling unit types (e.g., single family and multifamily) and are applied based on the gross square feet in the building permit application. In total, nonresidential CEFs are $12,737 per 1,000 sq. ft. ($12.74 per sq. ft.) for commercial buildings, $10,118 per 1,000 sq. ft. ($10.12 per sq ft.) for office/other service buildings, and $3,021 per 1,000 sq. ft. ($3.02 per sq. ft.) for industrial buildings. Capital expansion fees are collected typically at the time of building permit for building construction. Page 57 Item 4. 2023 Capital Expansion Fee Study 2 Table 1. Current Capital Expansion Fees Proposed Updated Capital Expansion Fee Program This Report documents the calculations for a new capital expansion fee program with the following proposed changes. New Fee Land Use Types A new fee for land use comprised of offices and other services is proposed. Traditionally, office and other services impact fees have been charged at the same rate as retail/commercial developments. However, the TCEF fees have been charging office and other service impact fees at a different rate than retail/commercial developments. To create consistency between the CEF and TCEF fees, EPS is proposing that office and other services impact fees be added to the fee schedule to create more consistency with the TCEF fees. Land Use Type Neighborhood Park Community Park Fire Police General Government TCEF (Transportation)Total Residential (per dwelling) Up to 700 sq. ft.$2,108.00 $2,977.00 $516.00 $289.00 $703.00 $2,703.00 $9,296.00 700 - 1,200 sq. ft.$2,822.00 $3,985.00 $698.00 $391.00 $948.00 $5,020.00 $13,864.00 1,201 - 1,700 sq. ft.$3,082.00 $4,351.00 $759.00 $425.00 $1,035.00 $6,518.00 $16,170.00 1,701 - 2,200 sq. ft.$3,114.00 $4,396.00 $772.00 $431.00 $1,051.00 $7,621.00 $17,385.00 Over 2,200 sq. ft.$3,470.00 $4,901.00 $859.00 $480.00 $1,170.00 $8,169.00 $19,049.00 Nonresidential (per 1,000 sq. ft.) Commercial $0.00 $0.00 $650.00 $364.00 $1,777.00 $9,946.00 $12,737.00 Office and Other Services $0.00 $0.00 $650.00 $364.00 $1,777.00 $7,327.00 $10,118.00 Industrial $0.00 $0.00 $152.00 $85.00 $419.00 $2,365.00 $3,021.00 Source: City of Fort Collins; Economic & Planning Systems Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]1-Current Fees Page 58 Item 4. Economic & Planning Systems, Inc. 3 Updated Capital Expansion Fees This report provides calculations of the maximum capital expansion fees that the City may charge, supported by this nexus and proportionality analysis. The law allows City Council to adopt the full fees determined in this report, or to adopt lower fees for a variety of policy reasons determined to be in the interest of the City. The proposed maximum residential and nonresidential capital expansion fees are shown below in Table 2. Updated residential fees range from $6,684 to $13,893 (Table 2). The range in residential fees is based on the average household size in each size category and dwelling unit type. Larger homes tend to have larger household sizes, creating more impact on public facilities. Increases in the residential fees range from 1.4 percent to 27.7 percent. For smaller residences, the fee percent increase is lower due to the proportionally larger decrease in average household size for smaller units. For example, the household size in housing units smaller than 700 square feet decreased from 1.78 in 2017 to 1.40 in 2023. Meanwhile, units over 2,200 square feet only decreased by 0.04 persons per dwelling unit from 2.95 in 2017 to 2.91 in 2023. Fees vary according to the employment and customer/visitor generation factors for each land use type explained further in Chapter 2. Nonresidential fees range from $953.13 to $3,673.89 per 1,000 square feet. Changes in the nonresidential fees range from a decrease of 28.0 percent for office and other services to an increase of 45.3 percent for industrial land uses. The decrease in office and other services land uses is a result of updating the fee category to align with the TCEF fees as described in the previous section. Page 59 Item 4. 2023 Capital Expansion Fee Study 4 Table 2. Updated Residential and Nonresidential Capital Expansion Fees, 2023 Fire Police Total Land Use Type Neighborhood Park Community Park Update Residential (per dwelling) Up to 700 sq. ft.$2,813.46 $2,140.12 $603.52 $381.89 $745.25 $6,684.24 700 - 1,200 sq. ft.$4,260.38 $3,240.76 $913.90 $578.29 $1,128.52 $10,121.85 1,201 - 1,700 sq. ft.$4,782.88 $3,638.21 $1,025.98 $649.21 $1,266.93 $11,363.21 1,701 - 2,200 sq. ft.$5,144.61 $3,913.37 $1,103.58 $698.31 $1,362.74 $12,222.61 Over 2,200 sq. ft.$5,847.97 $4,448.40 $1,254.46 $793.78 $1,549.06 $13,893.67 Nonresidential (per 1,000 sq. ft.) Retail/Commercial $0.00 $0.00 $1,281.17 $810.68 $1,582.04 $3,673.89 Office and Other Services $0.00 $0.00 $701.02 $443.58 $865.64 $2,010.24 Industrial $0.00 $0.00 $332.38 $210.32 $410.43 $953.13 Current Residential (per dwelling) Up to 700 sq. ft.$2,108.00 $2,977.00 $516.00 $289.00 $703.00 $6,593.00 700 - 1,200 sq. ft.$2,822.00 $3,985.00 $698.00 $391.00 $948.00 $8,844.00 1,201 - 1,700 sq. ft.$3,082.00 $4,351.00 $759.00 $425.00 $1,035.00 $9,652.00 1,701 - 2,200 sq. ft.$3,114.00 $4,396.00 $772.00 $431.00 $1,051.00 $9,764.00 Over 2,200 sq. ft.$3,470.00 $4,901.00 $859.00 $480.00 $1,170.00 $10,880.00 Nonresidential (per 1,000 sq. ft.) Retail/Commercial $0.00 $0.00 $650.00 $364.00 $1,777.00 $2,791.00 Office and Other Services $0.00 $0.00 $650.00 $364.00 $1,777.00 $2,791.00 Industrial $0.00 $0.00 $152.00 $85.00 $419.00 $656.00 Percent Change Residential (per dwelling) Up to 700 sq. ft.33.5%-28.1%17.0%32.1%6.0%1.4% 700 - 1,200 sq. ft.51.0%-18.7%30.9%47.9%19.0%14.4% 1,201 - 1,700 sq. ft.55.2%-16.4%35.2%52.8%22.4%17.7% 1,701 - 2,200 sq. ft.65.2%-11.0%43.0%62.0%29.7%25.2% Over 2,200 sq. ft.68.5%-9.2%46.0%65.4%32.4%27.7% Nonresidential (per 1,000 sq. ft.) Retail/Commercial ----97.1%122.7%-11.0%31.6% Office and Other Services ----7.8%21.9%-51.3%-28.0% Industrial ----118.7%147.4%-2.0%45.3% Source: City of Fort Collins; Economic & Planning Systems Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]2a-Impact Fee Summary General GovernmentParks Page 60 Item 4. Economic & Planning Systems, Inc. 5 Legal Standards for Impact Fees Impact fees can be charged by local governments on new development to pay for capital facilities needed to serve growth. The State of Colorado has adopted a standard with the adoption of Senate Bill 15, codified as Section 29-20-104 and 104.5 of the Colorado Revised Statutes following a Colorado Supreme Court decision. The Colorado Supreme Court ruled in Krupp v. Breckenridge Sanitation District (1999) that the District could assess an impact fee based on a set of development characteristics that reflect the general performance of a proposed use, rather than the specific conditions of an individual proposal. While traditional exactions are determined on an individual basis and applied on a case-by-case basis, an “impact fee” is calculated based on the impact of all new development and the same fee is shared to all new development in a particular class.”1 The finding of the Court distinguishes impact fees, as a legislatively adopted program applicable to a broad class of property owners, from traditional exactions, which are discretionary actions applicable to a single project or property owner. In 2001, the State Legislature provided specific authority in adopting Senate Bill 15 that “provides that a local government may impose an impact fee or other similar development charge to fund expenditures by such local government on capital facilities needed to serve new development.” The bill amended Title 29 of the Colorado statutes that govern both municipalities and counties and defines “local government” to include a county, home rule, or statutory city, city, or territorial charter city. The law requires local governments to “quantify the reasonable impacts of proposed development on existing capital facilities and establish the impact fee or development charge at a level no greater than necessary to defray such impacts directly related to proposed development.” The standard that must be met within the State of Colorado requires mitigation to be "directly related" to impacts. 1 Colorado Municipal League, Paying for Growth, Carolynne C. White, 2002. Page 61 Item 4. 2023 Capital Expansion Fee Study 6 Impact Fee Requirements • Capital Facilities – Fees may not be used for operations or maintenance. Fees must be spent on new or expanded capital facilities, which have been further defined as directly related to a government service, with an estimated useful life of at least five years and that are required based on the charter or a general policy. • Existing Deficiencies – Fees are formally collected to mitigate impacts from growth and cannot be used to address existing deficiencies. In the analysis used to establish an impact fee program, the evaluation must distinguish between the impacts of growth and the needs of existing development. • Capital Maintenance – Major “capital maintenance” projects are not typically eligible to be funded with impact fees unless it can be shown that the project increases the capacity of the community to accommodate growth. In that case, only the growth-serving element of the project is eligible to be funded with impact fees. • Credits – In the event a developer must construct off-site infrastructure in conjunction with their project, the local government must provide credits against impact fees for the same infrastructure, provided that the necessary infrastructure serves the larger community. Credits may not apply if a developer is required to construct such a project as a condition of approval due to the direct impact on the capital facility created by the project. Credits are handled on a case-by-case basis. • Timing – The City must hold revenues in accounts dedicated to the specific use. Funds must be expended within a reasonable period or returned to the developer. The State enabling legislation does not specify the maximum length of time to be used as a “reasonable period.” This has been generally accepted or interpreted to be a 10-year period. • Accounting Practices – The City must adopt stringent accounting practices as specified in the State enabling legislation. Funds generated by impact fees may not be commingled with any other funds. • Affordable Housing – The law allows impact fees on affordable housing “as defined by the community” to be waived. Page 62 Item 4. Economic & Planning Systems, Inc. 7 2. Methodology This chapter describes common impact fee calculation techniques, the methodology used to calculate new impact fees, and important estimates and factors used in the calculations. Impact Fee Methodologies There are several methods that can be used to calculate impact fees. The two most common techniques are the Plan-Based Method and the Incremental Expansion Method. The method chosen needs to be appropriate for the local circumstances as described below. Colorado law does not specify the methodology to be used; these methods are commonly used in Colorado and in other states. Plan-Based Method This method uses a community’s long-range comprehensive plan, capital improvement plan, or other adopted plan identifying capital facilities and infrastructure needed to serve growth. Projects identified in these plans are costed out and included in the fee program. A growth projection is made over the time period for which the defined projects are needed or planned to be built. The fee calculation is essentially the cost of the planned project(s) divided by the forecasted amount of growth. This method is best used when detailed capital project planning has been done. The plan-based method has limitations. First, many communities are not able to conduct capital planning with the level of detail needed in an impact fee study. It can be difficult to tie future facility needs with expected growth, and growth can be unpredictable. The fee calculations are highly sensitive to the amount of forecasted growth, as growth is the denominator in the fee calculation. Incremental Expansion Method The Incremental Expansion Method is a more frequently used method for calculating impact fees. This method is also called the “level of service” method. This technique answers the question: What should each new unit (increment) of development pay to maintain the city’s current level of service? Page 63 Item 4. 2023 Capital Expansion Fee Study 8 This approach takes a snapshot of the current level of service in the city and converts it typically to a value per unit of service demand (e.g. per capita or per service population). The current level of service is defined as the inventory of the city’s existing facilities and capital assets, and the cost to replicate that level of service (replacement cost) as the city grows. The asset inventory or value is then converted to a cost per capita, per dwelling unit, or per nonresidential square foot that is the basis for the fee. The Incremental Expansion Method was used in this study to calculate impact fees for Parks, Police, Fire, and General Government. Level of Service Definition Using the Incremental Expansion Method, this study defines the level of service (LOS) as the replacement cost of the existing facilities and capital equipment in the City in 2023. The fee calculations document the current inventories of parks facilities and land, police facilities and fleet/equipment, fire facilities and fleet/equipment, and general government facilities and fleet/equipment. The LOS is converted to a cost or value per service population that is used to calculate the impact fees for each major land use type. Cost Allocations by Land Use Type Many City services and related capital facilities are provided for residential and commercial (nonresidential) development. To ensure that impact fees are proportional to the impact by type of land use, it is necessary to allocate the level of service or facility costs to residential and nonresidential development. For all categories, the City’s service population combined with person-occupancy factors are used to allocate costs as described in the next section. Page 64 Item 4. Economic & Planning Systems, Inc. 9 Service Population Under the incremental expansion method, the impact fee is based on the cost to maintain the current infrastructure standard expressed as the replacement cost per service population. Under this method, each new increment of development pays a fee that is designed to maintain the current level of service per unit of service population (replacement cost per service population). Service population is a metric that combines the resident population plus in-commuting workers for a total “daily” or “functional” population. Capital expansion fee calculations use service population and person-occupancy factors by land use type as the basis for allocating costs to residential and nonresidential development (except for parks, which uses residential population). The calculation of service population is shown in Table 3. The City of Fort Collins estimated its population to be 174,445 people in 2023. There are an estimated 107,677 jobs in Fort Collins and an estimated 102,037 employees (workers) after adjusting for people who hold multiple jobs. In- commuters account for 57.8 percent of the job holders and because they are present in the City for only part of a day, they are weighted at 50 percent of the impact of a full-time resident. These adjustments add 29,507 of equivalent population to the population resulting in a service population of 203,952. Table 3. Fort Collins Service Population Calculation, 2023 Description 2023 Source Service Population Population A 174,445 City of Fort Collins, 2023 Jobs 107,677 North Front Range MPO TAZ, 2023 Jobs Per Employed Person 1.06 LEHD, 2020 Employees 102,037 Calculation In-Commuters 57.8%LEHD, 2020 Commuting Employee Weight 50.0%EPS Estimate In-Commuting Employee Impact B 29,507 Calculation Total Service Population = A + B 203,952 Source: TischlerBise; North Front Range MPO TAZ, 2023; U.S. Census LEHD; Economic & Planning Systems Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]20-Service Population Page 65 Item 4. 2023 Capital Expansion Fee Study 10 Residential Occupancy Factors Occupancy factors are developed in this section to convert new development into increments of new service population. The occupancy factors also allocate service demand between residential and nonresidential land uses. As shown in Table 4, people are estimated to spend approximately 71.3 percent of their day at home, which is equivalent to the residential service demand factor. The other 29.7 percent of the time spent away from home is accounted for in the nonresidential occupancy factors. Table 4. Fort Collins Residential Service Demand Factor Calculation, 2023 Description Factor 2023 Source Residential Conditions Population 174,445 City of Fort Collins, 2023 Nonworking Residents 52.0%90,711 LEHD, 2020 Working Residents 48.0%83,734 LEHD, 2020 Out Commuter Residents 50.6%42,369 LEHD, 2020 Work/Live Residents 49.4%41,364 LEHD, 2020 Residential Service Demand Nonworking Residents 20 hours per day 1,814,228 person-hours per day Out Commuter Residents 14 hours per day 593,169 person-hours per day Work/Live Residents 14 hours per day 579,102 person-hours per day Residential Total A 2,986,498 person-hours per day Total Person-Hours per Day B 24 4,186,680 population X 24 hours Residential Service Demand Factor =A/B 71.3%percent of day spent at home (population's allocation to residential land uses) Source: U.S. Census Longitudinal Employer-Household Dynamics (LEHD); U.S. Census; Economic & Planning Systems Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]23-Residential Service Demand Page 66 Item 4. Economic & Planning Systems, Inc. 11 Next, the service population per dwelling unit is estimated using average household sizes and the time spent away from the home. The average household size for single family and multiple dwelling units was obtained from the U.S. Census Public Use Microdata Sample (PUMS), and the averages by household size ranges were calibrated from the American Housing Survey. The previously calculated residential service demand factor was then applied to generate the residential occupancy factors, as shown in Table 5. For example, a home with 1,890 square feet has an average household size of 2.56 persons and a 1.83- person occupancy factor. As highlighted in an analysis and memorandum sent to the City Council on March 30, 2023, an 1,890 square foot household in Fort Collins was used as a basis for residential comparative analysis. This report will also use the 1,890 square foot household as an example for each of the fee categories to help provide specific context to this study update. Table 5. Fort Collins Residential Occupancy Factors Description Index Average HH Size % of Time in Unit Impact Fee Factor Fort Collins Average 100.0%2.36 71.3%1.68 By Square Feet Up to 700 sq. ft.59.2%1.40 71.3%1.00 700 - 1,200 sq. ft.90.0%2.12 71.3%1.51 1,201 - 1,700 sq. ft.100.7%2.38 71.3%1.70 1,701 - 2,200 sq. ft.108.4%2.56 71.3%1.83 Over 2,200 sq. ft.123.3%2.91 71.3%2.08 Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]24-Occupancy_Factor Source: 2019 U.S. Census Bureau American Housing Survey, Division 8 (Mountain); Economic & Planning Systems Page 67 Item 4. 2023 Capital Expansion Fee Study 12 Nonresidential Occupancy Factors Nonresidential occupancy factors were derived from trip rate factors, vehicle occupancy data, and employment generation factors, as shown in Table 6. Daily trip rates are one-half the average daily trip ends during a weekday and are sourced from the Institute of Transportation Engineers’ (ITE) Trip Generation Manual. Employee density figures were from the TCEF study being prepared by TischlerBise. Using these factors, service population figures were derived for three general land use categories, ranging from 0.55 for industrial uses, to 2.12 for retail and commercial uses. This method accounts for on-site employment and customers or visitors that are comprised of the resident population as well as people coming into the city for shopping, leisure, or business activities. Table 6. Fort Collins Nonresidential Occupancy Factors Land Use Unit Daily Trips[1] Persons per 1,000 sq. ft. Employees per 1,000 sq. ft. Sq. Ft.(Trip ends / 2)(8 hours/day)(8 hours/day) A B C = A * B D E Retail/Commercial 1,000 820 37.75 18.88 1.91 36.11 2.12 8 16.98 Office and Other Services 1,000 710 9.74 4.87 1.18 5.75 3.15 8 25.17 Industrial 1,000 110 4.87 2.44 1.18 2.87 1.57 8 12.56 Land Use Vistors per 1,000 sq. ft. Service Population (8 hours/day)per day F = C - D G H = F * G I = E + H J = I / J Retail/Commercial 33.99 1.00 33.99 50.97 24 2.12 Office and Other Services 2.60 1.00 2.60 27.77 24 1.16 Industrial 1.30 0.50 0.65 13.21 24 0.55 Source: Economic & Planning Systems [1]The daily trips are the daily trip ends divided by 2 so that non-residential land uses are not charged for both ends of a trip (origin and destination) Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]28-NR_Occupancy Factors Total Hours Total Hours in Day Visitor Hour Factor Vistor Hours ITE Code Daily Trip Ends Persons/ Trip Employee Hours in Day Employee Hours Page 68 Item 4. Economic & Planning Systems, Inc. 13 3. Neighborhood and Community Parks Capital Expansion Fees This chapter documents the level of service, replacement cost estimates, cost allocations, and other calculations used to determine the Parks CEF for neighborhood parks and community parks. Capital expansion fees are collected to fund facility construction, equipment purchases, and land acquisition. As the City grows, the space needed for these support functions also grows. Capital expansion fees will be used to maintain the current level of service, expressed as the replacement cost of its maintenance facilities, developed parkland, and land cost to replace such parkland. The City currently manages 573 acres of community parks and 384 acres of neighborhood parks. Level of Service Definition The total estimated replacement cost of parks facilities is $350,566,728 for neighborhood parks and $266,667,038 for community parks, as shown in Table 7. The replacement cost, which is split into two fee categories, is $2,009.61 per residential population for neighborhood parks and $1,528.66 per residential population for community parks. This value includes the replacement cost estimates for all maintenance facilities, all parkland, and the land cost estimates for all parklands. Table 7. Parks Cost per Service Unit, 2023 Description Neighborhood Parks Community Parks Development Cost per Acre A $580,708 $215,342 Developed Acres B 422 573 Existing Park Replacement Cost = A x B $245,058,961 $123,390,913 Land Cost per Acre A $250,000 $250,000 Developed Acres B 422 573 Existing Land Cost = A x B $105,500,000 $143,250,000 Maintenance Facility Cost per Acre A $7,767 $26,124 Developed Acres B 422 573 Maintenance Facility Need = A x B $3,277,656 $14,969,230 Total Park Replacement Cost $350,566,728 $266,667,038 Cost per Residential Population 174,445 $2,009.61 $1,528.66 Source: City of Fort Collins; Economic & Planning Systems Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]7-Parks Cost per Service Unit Page 69 Item 4. 2023 Capital Expansion Fee Study 14 To determine the development cost of the maintenance facilities, East District, Spring Canyon, and Fossil Creek maintenance facility development costs were used to estimate a replacement cost per acre based on community and neighborhood park acres served by each facility, as shown in Table 8. As previously determined by the City, the cost allocation of maintenance facilities is 80 percent for community parks and 20 percent for neighborhood parks. Table 8. Parks Maintenance Facility per Capita Cost, 2023 Description Replacement Cost Maintenance Facilites East District $7,325,000 Community Park Share (80%)$5,860,000 Community Park Acres Served 118 Community Park Cost/Acre $49,493 Neighborhood Park Share (20%)$1,465,000 Neighborhood Park Acres Served 84 Neighborhood Park Cost/Acre $17,399 Spring Canyon $1,815,147 Community Park Share (80%)$1,452,117 Maintenance Facility Need 103 Community Park Cost/Acre $14,098 Total Park Replacement Cost $363,029 Neighborhood Park Acres Served 132 Neighborhood Park Cost/Acre $2,750 Fossil Creek $2,623,710 Community Park Share (80%)$2,098,968 Community Park Acres Served 142 Community Park Cost/Acre $14,781 Neighborhood Park Share (20%)$524,742 Neighborhood Park Acres Served 167 Neighborhood Park Cost/Acre $3,152 Total Replacement Cost $11,763,856 Maintenance Facility Need Community Park Average Cost/Acre $26,124 Neighborhood Park Average Cost/Acre $7,767 Source: City of Fort Collins; Economic & Planning Systems Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]6-Maintenance Fac. Cost Page 70 Item 4. Economic & Planning Systems, Inc. 15 Residential Capital Expansion Fee Calculation The replacement cost per service population is multiplied by the household sizes for each housing unit size range. Park fees are charged only on residential development and full household size factors are used. For a single-family home or multifamily unit that is 1,890 square feet, the fee per unit is $5,144.61 for neighborhood parks (Table 9) and $3,913.37 for community parks (Table 10), which equates to $9,057.88 per unit. This is based on an average household size of 2.56 people. The capital expansion fee was calculated for a range of unit sizes as currently permitted in the City of Fort Collins fee schedule. Table 9. Neighborhood Parks Residential Capital Expansion Fee, 2023 Table 10. Community Parks Residential Capital Expansion Fee, 2023 Updated Fee Current Fee Description per unit per unit Cost per Service Population $2,009.61 Residential Up to 700 sq. ft.1.40 $2,813.46 $2,108.00 700 - 1,200 sq. ft.2.12 $4,260.38 $2,822.00 1,201 - 1,700 sq. ft.2.38 $4,782.88 $3,082.00 1,701 - 2,200 sq. ft.2.56 $5,144.61 $3,114.00 Over 2,200 sq. ft.2.91 $5,847.97 $3,470.00 Source: Economic & Planning Systems Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]8-NParks-Res. Impact Fee Avg. HH Size Updated Fee Current Fee Description per unit per unit Cost per Service Population $1,528.66 Residential Up to 700 sq. ft.1.40 $2,140.12 $2,977.00 700 - 1,200 sq. ft.2.12 $3,240.76 $3,985.00 1,201 - 1,700 sq. ft.2.38 $3,638.21 $4,351.00 1,701 - 2,200 sq. ft.2.56 $3,913.37 $4,396.00 Over 2,200 sq. ft.2.91 $4,448.40 $4,901.00 Source: Economic & Planning Systems Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]9-CParks-Res. Impact Fee Avg. HH Size Page 71 Item 4. 2023 Capital Expansion Fee Study 16 4. Police Capital Expansion Fee This chapter documents the level of service, replacement cost estimates, cost allocations, and other calculations used to determine the Police Capital Expansion Fee. Fees are collected to fund facility expansions, fleet replacement, and equipment replacement. These fees will be used to maintain the current level of service, expressed as the replacement cost of police facilities, fleet, and capital equipment. The police department currently has 3 primary facilities and 430 fleet vehicles. Level of Service Definition The total replacement cost of police facilities, fleet, and equipment is $77,990,689, as shown in Table 11. The replacement cost is $382.40 per service population. This value accounts for debt owed and an estimated 90 percent capacity factor based on current utilization. Table 11. Police Inventory and Replacement Cost per Capita, 2023 Description Quantity Cost Factor Capacity Factor Bldg. Cost Land Cost Replacement Cost Police Facilities Per SF Police Facilities 3 $517 90%$60,753,240 $3,421,110 $58,099,026 IT Capital Equipment --------18,414,943 Subtotal $517 $60,753,240 $3,421,110 $76,513,969 Police Fleet Inventory Per Unit Admin Vehicle 29 $33,916 $983,559 Drug Task Force 11 31,842 350,258 Equipment 4 209,137 836,549 Investigation 83 37,400 3,104,223 Mobile Command Vehicle 1 440,929 440,929 Patrol 296 41,644 12,326,696 Public Safety 6 97,887 587,323 Subtotal 430 $43,325 $18,629,537 Debt Principal 2012 COPS -$7,430,000 2019 COPS -6,604,740 Vehicle Equipment -3,118,078 Subtotal -$17,152,818 Total $77,990,689 Cost per Service Population Functional Population:203,952 $382.40 Source: City of Fort Collins; Economic & Planning Systems Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]10-Police_Inv. RC Page 72 Item 4. Economic & Planning Systems, Inc. 17 Residential Capital Expansion Fee Calculation For a single-family home or multi-family unit that is 1,890 square feet, the fee per unit is $698.31. This is based on an occupancy factor of 1.83 people adjusted for time spent at home, as shown in Table 12. The capital expansion fee was calculated for a range of unit sizes as currently permitted in the City of Fort Collins fee schedule. Table 12. Police Residential Capital Expansion Fee, 2023 Nonresidential Capital Expansion Fee Using the previously derived service population and occupancy factors, the proposed nonresidential impact fee was calculated for three major land uses as shown in Table 13. Proposed capital expansion fees range from $0.21 per square foot for industrial uses to $0.81 per square foot for retail/commercial uses. Table 13. Police Nonresidential Capital Expansion Fee, 2023 Description Factor Updated Fee Current Fee per unit per unit Cost per Service Population $382.40 Residential Up to 700 sq. ft.1.00 $381.89 $289.00 700 - 1,200 sq. ft.1.51 $578.29 $391.00 1,201 - 1,700 sq. ft.1.70 $649.21 $425.00 1,701 - 2,200 sq. ft.1.83 $698.31 $431.00 Over 2,200 sq. ft.2.08 $793.78 $480.00 Source: Economic & Planning Systems Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]11-Police-Res. Impact Fee Description Service Pop.Updated Fee Updated Fee Updated Fee Current Fee per 1,000 sq. ft.per 1,000 sq. ft.per sq. ft.per 1,000 sq. ft.per 1,000 sq. ft. Cost per Service Population $382.40 Nonresidential Retail/Commercial 2.12 $810.68 $0.81 $810.68 $364.00 Office 1.16 $443.58 $0.44 $443.58 $364.00 Industrial 0.55 $210.32 $0.21 $210.32 $85.00 Source: Economic & Planning Systems Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]12-Police-Non Res. Fee Page 73 Item 4. 2023 Capital Expansion Fee Study 18 5. Fire Protection Capital Expansion Fee This chapter documents the current Fire Protection Capital Expansion fee structure, replacement cost estimates, cost allocations, and other factors used to calculate the proposed Fire Protection Capital Expansion Fees. The Poudre Fire Authority (PFA) consists of eleven staffed fire stations, two volunteer fire stations, one headquarters, and one training facility, which serve a variety of emergency response needs. These include fire suppression, emergency medical response, hazardous materials response, technical rescue, fire prevention, public outreach and education, and wildland preparedness planning and response. PFA is the overarching authority that serves a large portion of Larimer County including Fort Collins. The Poudre Valley Fire Protection District (PVFPD) collects separate impact fees for its service area outside of the City of Fort Collins. Level of Service Definition The total replacement cost of Fire Protection facilities, fleet, and equipment is $145,020,455, as shown in Table 14. The total replacement cost is for the entire PFA district including areas outside of Fort Collins. The asset inventory needs to be allocated to Fort Collins for its CEF calculation, which is shown in Table 15. Table 14. Fire Protection Inventory and Replacement Cost per Capita, 2023 Description Location Factor Cost Factor Bldg. Cost Land Cost Replacement Cost Fire Facilities SF Cost per SF Burn Building (Training)3400 W. Vine Drive 1,560 $650 $1,014,000 $0 $1,014,000 Fire Stations --111,630 650 72,559,500 4,987,466 77,546,966 Vacant Land (Future Station #18)4500 E. Mulberry ----0 675,000 675,000 Fit Tower Training 3400 W. Vine 3,764 650 2,446,600 0 2,446,600 Offices --25,974 650 16,883,100 831,307 17,714,407 Training Center A 3400 W. Vine Drive 13,970 650 9,080,500 698,298 9,778,798 Subtotal 156,898 $650 $101,983,700 $7,192,071 $109,175,771 Fire Fleet Inventory Units Cost per Unit Fleet 22 $44,214 $972,713 Battalion Chiefs 8 41,552 332,413 Frontline Apparatus 45 465,978 20,968,995 Reserves 5 760,000 3,800,000 Training 13 196,521 2,554,774 Support 6 28,570 171,420 Antiques 3 38,499 115,496 Lawn Mowers 25 5,960 149,000 Equipment 92 48,541 4,465,734 Misc.15 154,276 2,314,139 Subtotal 189 $189,654 $35,844,684 Total $145,020,455 Source: City of Fort Collins; Poudre Fire Authority; Economic & Planning Systems Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]13-Fire_Inv. RC Page 74 Item 4. Economic & Planning Systems, Inc. 19 The City of Fort Collins generates 84.99 percent of PFA calls. The replacement cost attributable to the City is therefore $123,252,885, or $604.32 per service population, as shown in Table 15. Table 15. Fire Protection Asset Cost by Service Area, 2023 Residential Capital Expansion Fee Calculation For a single-family home or multifamily unit that is 1,890 square feet, the fee per unit with the City of Fort Collins is $1,103.58. This is based on an occupancy factor of 1.83 people adjusted for time spent at home. The capital expansion fee was calculated for a range of unit sizes as currently permitted in the City of Fort Collins fee schedule (as shown in Table 16). Table 16. Fire Residential Capital Expansion Fee, 2023 Description Call Volume Total Replacement Cost Functional Population Cost per Service Population A B = A / B Total 100.00%$145,020,455 PFA Fort Collins 84.99%$123,252,885 203,952 $604.32 Source: City of Fort Collins; Poudre Valley Fire Authority; Economic & Planning Systems Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]14-FoCoFireAssets Description Factor Updated Fee Current Fee per unit per unit Cost per Service Population $604.32 Residential Up to 700 sq. ft.1.00 $603.52 $516.00 700 - 1,200 sq. ft.1.51 $913.90 $698.00 1,201 - 1,700 sq. ft.1.70 $1,025.98 $759.00 1,701 - 2,200 sq. ft.1.83 $1,103.58 $772.00 Over 2,200 sq. ft.2.08 $1,254.46 $859.00 Source: Economic & Planning Systems Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]15-FC Fire-Res. Impact Fee Page 75 Item 4. 2023 Capital Expansion Fee Study 20 Nonresidential Capital Expansion Fee Using the previously derived service population and occupancy factors, the proposed nonresidential capital expansion fee was calculated for three major land uses as shown in Table 17. Proposed fees range from $0.33 per square foot for industrial uses to $1.28 per square foot for retail/commercial uses. Table 17. Fire Protection Nonresidential Capital Expansion Fee, 2023 Description Service Pop.Updated Fee Updated Fee Updated Fee Current Fee per 1,000 sq. ft.per 1,000 sq. ft.per sq. ft.per 1,000 sq. ft.per 1,000 sq. ft. Cost per Service Population $604.32 Nonresidential Retail/Commercial 2.12 $1,281.17 $1.28 $1,281.17 $650.00 Office 1.16 $701.02 $0.70 $701.02 $650.00 Industrial 0.55 $332.38 $0.33 $332.38 $152.00 Source: Economic & Planning Systems Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]16-FC Fire-Non Res. Fee Page 76 Item 4. Economic & Planning Systems, Inc. 21 6. General Government Capital Expansion Fee This chapter documents the level of service, replacement cost estimates, cost allocations, and other calculations used to determine the General Government Capital Expansion Fee. These fees are collected to fund facility expansions for general government purposes such as office space for city staff, facilities maintenance buildings, city fleet, equipment, and courts and justice functions. As the city grows, the space needs for these support functions also grows. Capital Expansion fees will be used to maintain the current level of service, expressed as the replacement cost of its major facilities and fleet. Level of Service Definition The total replacement cost of general government is estimated at $152,198,009, as shown in Table 18. The replacement cost for general government is $746.25 per service population. This value includes all facilities owned by the City of Fort Collins including City Hall and other administrative buildings, streets and traffic operations, IT equipment, general governmental vehicles, and heavy equipment. Table 18. General Government Inventory and Replacement Cost, 2023 Description Location Factor Cost Factor Bldg. Cost Land Cost Replacement Cost Facilities SF Cost per SF 281 North College 281 N College Ave 37,603 $513 $19,290,339 $855,000 $20,145,339 City Hall 300 LaPorte Ave 31,553 583 18,401,710 1,306,358 19,708,068 215 N Mason Office 215 N Mason St 72,000 518 37,324,800 1,238,000 38,562,800 300 LaPorte (OPS Services)300 LaPorte Ave 26,564 540 14,344,560 0 14,344,560 Streets Building 625 9th St 51,314 513 26,324,082 1,817,640 28,141,722 Traffic Operations Building 626 Linden St 9,500 540 5,130,000 424,440 5,554,440 Fleet / FACs Warehouse - Loomis 518 N Loomis Ave 10,122 432 4,372,704 22,050 4,394,754 IT Equipment ----------9,706,551 Subtotal 238,656 $525 $125,188,195 $5,663,488 $140,558,234 Fleet Quantity Cost per Unit Heavy Equipment 180 $112,554 $20,259,649 Misc. Maintenance Equipment 67 43,531 2,916,571 Vehicles, Trucks, and Trailers 96 52,782 5,067,109 Subtotal 343 $82,342 $28,243,329 Debt Principal 2012 COPS -$280,000 2019 COPS -13,780,260 Vehicle Equipment -2,543,294 Subtotal -$16,603,554 Total $152,198,009 Cost per Service Population Functional Population:203,952 $746.25 Source: City of Fort Collins; Economic & Planning Systems Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]17-Gen Gov_Inv. RC Page 77 Item 4. 2023 Capital Expansion Fee Study 22 Residential Capital Expansion Fee Calculation For a single-family home or multifamily unit that is 1,890 square feet, the fee per unit is $1,362.74. This is based on an occupancy factor of 1.83 people adjusted for time spent at home, as shown in Table 19. The capital expansion fee was calculated for a range of unit sizes as currently permitted in the City of Fort Collins fee schedule. Table 19. General Government Residential Capital Expansion Fee, 2023 Nonresidential Impact Fee Using the previously derived service population and occupancy factors, the proposed nonresidential impact fee was calculated for three major land uses as shown in Table 20. Proposed capital expansion fees range from $0.41 per square foot for industrial uses to $1.58 per square foot for retail/commercial uses. Table 20. General Government Nonresidential Capital Expansion Fee, 2023 Description Factor Updated Fee Current Fee per unit per unit Cost per Service Population $746.25 Residential -- Up to 700 sq. ft.1.00 $745.25 $703.00 700 - 1,200 sq. ft.1.51 $1,128.52 $948.00 1,201 - 1,700 sq. ft.1.70 $1,266.93 $1,035.00 1,701 - 2,200 sq. ft.1.83 $1,362.74 $1,051.00 Over 2,200 sq. ft.2.08 $1,549.06 $1,170.00 Source: Economic & Planning Systems Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]18-Gen Gov-Res. Impact Fee Description Service Pop.Updated Fee Updated Fee Updated Fee Current Fee per 1,000 sq. ft.per 1,000 sq. ft.per sq. ft.per 1,000 sq. ft.per 1,000 sq. ft. Cost per Service Population $746.25 Nonresidential Retail/Commercial 2.12 $1,582.04 $1.58 $1,582.04 $1,777.00 Office 1.16 $865.64 $0.87 $865.64 $1,777.00 Industrial 0.55 $410.43 $0.41 $410.43 $419.00 Source: Economic & Planning Systems Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]19-Gen Gov-Non Res. Fee Page 78 Item 4. APPENDIX: Peer Communities Impact Fee Comparisons Page 79 Item 4. Appendix: 2023 Capital Expansion Fee Study 24 Table A-1. Comparison of Major Inputs: 2017 vs. 2023 Study Description 2017 2023 Update Difference % Change Household Size Up to 700 sq. ft.1.78 1.40 -0.38 -21.3% 700 - 1,200 sq. ft.2.40 2.12 -0.28 -11.7% 1,201 - 1,700 sq. ft.2.61 2.38 -0.23 -8.8% 1,701 - 2,200 sq. ft.2.65 2.56 -0.09 -3.4% Over 2,200 sq. ft.2.95 2.91 -0.04 -1.4% Non-Residential Occupancy Factors (Employees per 1,000 sq. ft. + Visitors) Retail/Commercial 2.25 2.12 -0.13 -5.8% Office and Other Services --1.16 ---- Industrial 0.53 0.55 0.02 3.8% Service Population Population --174,445 ---- Functional Population 157,626 203,952 46,326 29.4% Asset Value Neighborhood Parks $153,272,704 $350,566,728 $197,294,024 128.7% Community Parks 216,422,189 266,667,038 50,244,849 23.2% PFA Fort Collins 55,846,482 123,252,885 67,406,403 120.7% Police 31,264,546 77,990,689 46,726,143 149.5% General Government 100,991,253 152,198,009 51,206,756 50.7% Total $557,797,174 $970,675,349 $412,878,175 74.0% Source: Duncan Associates; Economic & Planning Systems Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]3-Comp to 2017 Page 80 Item 4. Economic & Planning Systems, Inc. 25 Table A-2. Current Residential Impact Fee Comparisons Fort Collins Land Use Type Current Boulder Cheyenne Greeley Loveland Longmont Residential (per dwelling) Single Family - 1,890 sq. ft $7,510.00 $5,918.00 $400.00 $6,213.00 $8,299.00 $8,325.17 Multi Family - 1,890 sq. ft.$7,510.00 $5,918.00 $400.00 $6,213.00 $5,721.00 $4,792.93 Residential (per dwelling) Single Family - 1,890 sq. ft $431.00 $482.00 $949.37 $280.00 $1,104.00 -- Multi Family - 1,890 sq. ft.$431.00 $482.00 $949.37 $280.00 $769.00 -- Residential (per dwelling) Single Family - 1,890 sq. ft $772.00 $430.00 --$728.00 ---- Multi Family - 1,890 sq. ft.$772.00 $430.00 --$728.00 ---- Residential (per dwelling) Single Family - 1,890 sq. ft $1,051.00 $759.00 ----$1,370.00 -- Multi Family - 1,890 sq. ft.$1,051.00 $759.00 ----$953.00 -- Residential (per dwelling) Single Family - 1,890 sq. ft $7,621.00 $228.00 $1,514.25 $7,213.00 --$2,060.56 Multi Family - 1,890 sq. ft.$7,621.00 $228.00 $1,211.40 $7,213.00 --$2,060.56 Residential (per dwelling) Single Family - 1,890 sq. ft $17,385.00 $7,817.00 $2,863.62 $14,434.00 $10,773.00 $10,385.73 Multi Family - 1,890 sq. ft.$17,385.00 $7,817.00 $2,560.77 $14,434.00 $7,443.00 $6,853.49 Source: City of Boulder; City of Cheyenne; City of Greeley; City of Loveland; City of Longmont; City of Fort Collins; Economic & Planning Systems Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]4-Res Example Parks Fire General Government Police Total Transportation Page 81 Item 4. Appendix: 2023 Capital Expansion Fee Study 26 Table A-3. Current Nonresidential Impact Fee Comparisons Fort Collins Land Use Type Current Boulder Cheyenne Greeley Loveland Longmont Nonresidential (per 1,000 sq. ft.) Commercial $364.00 $790.00 $603.42 $841.00 $489.10 -- Office and Other Services $364.00 $320.00 $295.00 $452.00 ---- Industrial $85.00 $190.00 $518.63 $230.00 $62.70 -- Nonresidential (per 1,000 sq. ft.) Commercial $650.00 $680.00 --$1,872.00 ---- Office and Other Services $650.00 $980.00 --$1,006.00 ---- Industrial $152.00 $630.00 --$513.00 ---- Nonresidential (per 1,000 sq. ft.) Commercial $9,946.00 $600.00 $2,422.81 $8,347.00 --$3,340.00 Office and Other Services $7,327.00 $240.00 $1,817.11 $5,383.00 --$1,450.00 Industrial $2,365.00 $150.00 $1,817.11 $2,742.00 --$450.00 Nonresidential (per 1,000 sq. ft.) Commercial $1,777.00 $430.00 ----$526.70 -- Office and Other Services $1,777.00 $620.00 -------- Industrial $419.00 $400.00 ----$75.20 -- Nonresidential (per 1,000 sq. ft.) Commercial $12,737.00 $2,500.00 $3,026.23 $11,060.00 $1,015.80 $3,340.00 Office and Other Services $10,118.00 $2,160.00 $2,112.11 $6,841.00 $0.00 $1,450.00 Industrial $3,021.00 $1,370.00 $2,335.74 $3,485.00 $137.90 $450.00 Source: City of Boulder; City of Cheyenne; City of Greeley; City of Loveland; City of Longmont; City of Fort Collins; Economic & Planning Systems Z:\Shared\Projects\DEN\233062 Fort Collins Impact Fee Study\Models\[233062-Impact Fee Model 10-12-23.xlsx]5-Non-Res Comps Police Fire Transportation General Government Total Page 82 Item 4. Transportation Capital Expansion Fee Study Submitted to: City of Fort Collins, Colorado October 20, 2023 Prepared by: 4701 Sangamore Road Suite S240 Bethesda, Maryland 20816 800.424.4318 www.tischlerbise.com Page 83 Item 4. 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Transportation Capital Expansion Fee Study City of Fort Collins, Colorado i Transportation Capital Expansion Fee Study City of Fort Collins, Colorado Executive Summary ....................................................................................................................................... 2 Transportation Capital Expansion Fees by Type of Land Use ................................................................... 2 General Impact Fee Requirements ............................................................................................................... 4 Colorado Impact Fee Enabling Legislation ................................................................................................ 4 Additional Legal Guidelines ....................................................................................................................... 4 Impact Fee Methodologies ....................................................................................................................... 6 Transportation Capital Expansion Fee – Roadway Capacity Component ..................................................... 8 Existing Levels of Service for Transportation ............................................................................................ 8 Development Prototypes and Projected Vehicle Miles of Travel ........................................................... 10 Capital Cost per Vehicle Miles of Travel ................................................................................................. 12 Revenue Credit Evaluation ...................................................................................................................... 12 Input Variables for TCEF – Roadway Capacity Component .................................................................... 13 Revenue Projection from Maximum Supportable Fee Amounts ............................................................ 14 Transportation Capital Expansion Fee – Active Modes Component .......................................................... 15 Active Modes Capital Plan ...................................................................................................................... 15 Active Modes Capital Plan Cost Analysis ................................................................................................ 15 Revenue Credit Evaluation ...................................................................................................................... 16 Input Variables for TCEF – Active Modes Component ............................................................................ 17 Revenue Projection from Maximum Supportable Fee Amounts ............................................................ 18 Implementation and Administration .......................................................................................................... 19 Credits and Reimbursements .................................................................................................................. 19 Citywide Service Area.............................................................................................................................. 19 Expenditure Guidelines ........................................................................................................................... 19 Development Categories......................................................................................................................... 20 Appendix A – Land Use Assumptions .......................................................................................................... 21 Base Year Population and Housing Units ................................................................................................ 21 Population and Housing Unit Projections ............................................................................................... 23 Current Employment and Nonresidential Floor Area ............................................................................. 24 Employment and Nonresidential Floor Area Projections ....................................................................... 26 Vehicle Trip Generation .......................................................................................................................... 27 Residential Trip Generation by Housing Unit Size (sq. ft.) ...................................................................... 30 Appendix B – Active Modes Project Lists .................................................................................................... 33 Page 85 Item 4. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 1 [Page Intentionally left blank] Page 86 Item 4. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 2 EXECUTIVE SUMMARY The City of Fort Collins currently collects Transportation Capital Expansion Fee (TCEF) based on a 2017 study completed by TischlerBise. The City has retained TischlerBise to update its TCEF program. The 2023 TCEF study uses a combination of incremental expansion and plan-based methodologies to provide improvements for all modes of travel. Figure 1 provides an overview of the methodology and cost components used in the Fort Collins study. Figure 1. TCEF Methods and Cost Components Transportation Capital Expansion Fees by Type of Land Use As documented in this report, the City of Fort Collins has complied with applicable legal precedents and Colorado’s Impact Fee enabling legislation (discussed below). The TCEF schedule is proportionate and reasonably related to the cost of capital improvements needed to accommodate new development. Specific costs have been identified using local data and current dollars. With input from City staff, TischlerBise determined demand indicators for transportation capacity and calculated proportionate share factors to allocate costs by type of development. The TCEF methodology also identifies the extent to which new development is entitled to various types of credits to avoid potential double payment of growth-related capital costs. Figure 2 shows the maximum supportable TCEF schedules. For residential development, updated amounts are based on square feet of finished living space. Garages, porches and patios are excluded from the TCEF assessment. Fees by dwelling size rather than type simplifies administration, improves proportionality, and is consistent with the way other Capital Expansion Fees are collected in Fort Collins. For nonresidential development, TCEFs are stated per thousand square feet of floor area, using three broad categories. The TCEF schedule for nonresidential development is designed to provide a reasonable fee amount for general types of development. For unique developments, the City may allow or require an independent assessment. Active modes improvements and expansions were included in the 2017 analysis. There has been further emphasis on active modes and to provide further clarity the maximum supportable fee schedule is broken down by roadway capacity and active modes. Types of Improvement Cost Allocation Service Area Cost Recovery Incremental Expansion Plan-Based Capacity Roadway Expansion Vehicle Miles of Travel (VMT)Citywide -Roadway Capacity - Active Modes Person and Jobs Citywide -- Bike Lanes, Ped/Bike Intersections, Signals Page 87 Item 4. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 3 Figure 2. Maximum Supportable TCEF up to 700 11.79 $2,863 0.99 $272 $3,135 $2,703 $432 16% 701 to 1,200 20.54 $4,988 1.77 $487 $5,475 $5,020 $455 9% 1,201 to 1,700 26.20 $6,363 2.27 $625 $6,988 $6,518 $470 7% 1,701 to 2,200 30.39 $7,380 2.64 $726 $8,106 $7,621 $485 6% over 2,200 33.73 $8,191 2.94 $809 $9,000 $8,169 $831 10% Commercial 45.48 $11,045 2.12 $702 $11,747 $9,946 $1,801 18% Office & Other Services 26.56 $6,450 3.26 $1,075 $7,525 $7,327 $198 3% Industrial 11.93 $2,897 2.86 $944 $3,841 $2,365 $1,476 62% Residential (per dwelling unit) Percent Change Maximum Supportable Fee Square Feet of Finished Living Space Percent Change Development Type Nonresidential (per 1,000 square feet) Maximum Supportable Fee Increase/ Decrease Roadway Capacity Fee Roadway Capacity Fee Current Fees VMT per Unit Active Modes Fee Current Fees Increase/ Decrease Persons per Unit Jobs per KSF Active Modes Fee VMT per KSF Page 88 Item 4. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 4 GENERAL IMPACT FEE REQUIREMENTS Colorado Impact Fee Enabling Legislation For local governments, the first step in evaluating funding options for transportation improvements is to determine basic options and requirements established by state law. Some states have more conservative legal parameters that basically restrict local government to specifically authorized actions. In contrast, “home-rule” states grant local governments broader powers that may or may not be precluded or preempted by state statutes depending on the circumstances and on the state’s particular laws. Home rule municipalities in Colorado, like Fort Collins, have the authority to impose impact fees based on both their home rule power granted in the Colorado Constitution and the impact fee enabling legislation enacted in 2001 by the Colorado General Assembly. Impact fees (also known as capital expansion fees) are one-time payments imposed on new development that must be used solely to fund growth-related capital projects, typically called “system improvements”. An impact fee represents new growth’s proportionate share of capital facility needs. In contrast to project-level improvements, impact fees fund infrastructure that will benefit multiple development projects, or even the entire service area, as long as there is a reasonable relationship between the new development and the need for the growth-related infrastructure. Project-level improvements, typically specified in a development agreement, are usually limited to transportation improvements near a proposed development, such as ingress/egress lanes. According to Colorado Revised Statute Section 29-20-104.5, impact fees must be legislatively adopted at a level no greater than necessary to defray impacts generally applicable to a broad class of property. The purpose of impact fees is to defray capital costs directly related to proposed development. The statutes of other states allow impact fee schedules to include administrative costs related to impact fees and the preparation of capital improvement plans, but this is not specifically authorized in Colorado’s statute. Impact fees do have limitations, and should not be regarded as the total solution for infrastructure funding. Rather, they are one component of a comprehensive portfolio to ensure adequate provision of public facilities. Because system improvements are larger and more costly, they may require bond financing and/or funding from other revenue sources. To be funded by impact fees, Section 29-20-104.5 requires that the capital improvements must have a useful life of at least five years. By law, impact fees can only be used for capital improvements, not operating or maintenance costs. Also, development impact fees cannot be used to repair or correct existing deficiencies in existing infrastructure. Additional Legal Guidelines Both state and federal courts have recognized the imposition of impact fees on development as a legitimate form of land use regulation, provided the fees meet standards intended to protect against regulatory takings. Land use regulations, development exactions, and impact fees are subject to the Fifth Amendment prohibition on taking of private property for public use without just compensation. To comply with the Fifth Amendment, development regulations must be shown to substantially advance a legitimate governmental interest. In the case of impact fees, that interest is the protection of public Page 89 Item 4. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 5 health, safety, and welfare by ensuring development is not detrimental to the quality of essential public services. The means to this end are also important, requiring both procedural and substantive due process. The process followed to receive community input (i.e., stakeholder meetings, work sessions, and public hearings) provides opportunities for comments and refinements to the impact fees. There is little federal case law specifically dealing with impact fees, although other rulings on other types of exactions (e.g., land dedication requirements) are relevant. In one of the most important exaction cases, the U. S. Supreme Court found that a government agency imposing exactions on development must demonstrate an “essential nexus” between the exaction and the interest being protected (see Nollan v. California Coastal Commission, 1987). In a more recent case (Dolan v. City of Tigard, OR, 1994), the Court ruled that an exaction also must be “roughly proportional” to the burden created by development. There are three reasonable relationship requirements for development impact fees that are closely related to “rational nexus” or “reasonable relationship” requirements enunciated by a number of state courts. Although the term “dual rational nexus” is often used to characterize the standard by which courts evaluate the validity of development impact fees under the U.S. Constitution, TischlerBise prefers a more rigorous formulation that recognizes three elements: “need,” “benefit,” and “proportionality.” The dual rational nexus test explicitly addresses only the first two, although proportionality is reasonably implied, and was specifically mentioned by the U.S. Supreme Court in the Dolan case. Individual elements of the nexus standard are discussed further in the following paragraphs. All new development in a community creates additional demands on some, or all, public facilities provided by local government. If the capacity of facilities is not increased to satisfy that additional demand, the quality or availability of public services for the entire community will deteriorate. Development impact fees may be used to cover the cost of development-related facilities, but only to the extent that the need for facilities is a consequence of development that is subject to the fees. The Nollan decision reinforced the principle that development exactions may be used only to mitigate conditions created by the developments upon which they are imposed. That principle likely applies to impact fees. In this study, the impact of development on infrastructure needs is analyzed in terms of quantifiable relationships between various types of development and the demand for specific facilities, based on applicable level-of-service standards. The requirement that exactions be proportional to the impacts of development was clearly stated by the U.S. Supreme Court in the Dolan case and is logically necessary to establish a proper nexus. Proportionality is established through the procedures used to identify development-related facility costs, and in the methods used to calculate impact fees for various types of facilities and categories of development. The demand for facilities is measured in terms of relevant and measurable attributes of development (e.g., a typical housing unit’s average weekday vehicle trips). A sufficient benefit relationship requires that impact fee revenues be segregated from other funds and expended only on the facilities for which the fees were charged. The calculation of impact fees should also assume that they will be expended in a timely manner and the facilities funded by the fees must serve the development paying the fees. However, nothing in the U.S. Constitution or the state enabling Page 90 Item 4. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 6 legislation requires that facilities funded with fee revenues be available exclusively to development paying the fees. In other words, benefit may extend to a general area including multiple real estate developments. Procedures for the earmarking and expenditure of fee revenues are discussed near the end of this study. All of these procedural as well as substantive issues are intended to ensure that new development benefits from the impact fees they are required to pay. The authority and procedures to implement impact fees is separate from and complementary to the authority to require improvements as part of subdivision or zoning review. Impact fees must increase the carrying capacity of the transportation system. Capacity projects include, but are not limited to the addition of travel lanes, intersection improvements (i.e., turning lanes, signalization or roundabouts) and widening roads (e.g., adding travel lanes, paved shoulders, and bike lanes). Whenever improvements are made to existing roads, non-impact fee funding is typically required to help pay a portion of the cost. Impact Fee Methodologies In contrast to project-level improvements, impact fees fund growth-related infrastructure that will benefit multiple development projects, or the entire jurisdiction (referred to as system improvements). There are three general methods for calculating one-time charges for public facilities needed to accommodate new development. The choice of a particular method depends primarily on the timing of infrastructure construction (past, concurrent, or future) and service characteristics of the facility type being addressed. Each method has advantages and disadvantages in a particular situation, and can be used simultaneously for different cost components. Reduced to its simplest terms, the process of calculating infrastructure costs for new development involves two main steps: (1) determining the cost of development-related capital improvements and (2) allocating those costs equitably to various types of development. In practice, TCEF calculations can become quite complicated because of many variables involved in defining the relationship between development and the need for facilities within the designated service area. The following sections discuss three basic methods. COST RECOVERY (PAST IMPROVEMENTS) The rationale for recoupment, often called cost recovery, is that new development is paying for its share of the useful life and remaining capacity of facilities already built, or land already purchased, from which new growth will benefit. This methodology is often used for utility systems that must provide adequate capacity before new development can take place. INCREMENTAL EXPANSION (CONCURRENT IMPROVEMENTS) The incremental expansion method documents current level-of-service (LOS) standards for each type of public facility, using both quantitative and qualitative measures. New development is only paying its proportionate share for growth-related infrastructure needed to maintain current standards. Revenue will be used to expand or provide additional facilities, as needed to keep pace with new development. Page 91 Item 4. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 7 PLAN-BASED (FUTURE IMPROVEMENTS) The plan-based method allocates costs for a specified set of improvements to a specified amount of development. Improvements are typically identified in a capital improvements plan and development potential is identified by land use assumptions. There are two options for determining the cost per service unit: 1) total cost of a public facility can be divided by total service units (average cost), or 2) the growth-share of the capital facility cost can be divided by the net increase in service units over the planning timeframe (marginal cost). CREDITS Regardless of the methodology, a consideration of “credits” is integral to a legally defensible impact fee study. There are two types of “credits” with specific characteristics, both of which should be addressed in studies and ordinances. • First, a revenue credit might be necessary if there is a double payment situation and other revenues are contributing to the capital costs of infrastructure to be funded by TCEF revenue. This type of credit is integrated into the TCEF calculation, thus reducing the gross amount. In contrast to some studies that only provide general costs, with credits at the back-end of the analysis, Fort Collins’s 2023 transportation TCEF update uses growth shares to provide an up- front reduction in total costs. Also, the 2023 update provides TCEF revenue projections to verify that new development will fully fund the growth cost of future infrastructure (i.e., only TCEF revenue will pay for growth costs). • Second, a site-specific credit or developer reimbursement might be necessary for dedication of land or construction of system improvements to be funded by TCEF revenue. This type of credit is addressed in the administration and implementation of the TCEF program. Page 92 Item 4. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 8 TRANSPORTATION CAPITAL EXPANSION FEE – ROADWAY CAPACITY COMPONENT The City of Fort Collins Transportation Capital Expansion Fees (TCEF) are calculated using an incremental approach for roadway capacity improvements. Transportation improvements that provide additional vehicular capacity, account for approximately 91 percent of the growth-related cost in the analysis while active modes represent 9. The roadway capacity component of the TCEF is derived from custom trip generation rates (see Appendix A), trip rate adjustment factors, and the capital cost per vehicle miles of travel (VMT). The latter is a function of average trip length, trip-length weighting factor by type of development, and the growth cost of transportation improvements. Existing Levels of Service for Transportation There are currently 497 lane miles of arterial streets in the City of Fort Collins. The steps to calculate a current level of service for the City’s arterial street network involve calibrating existing development to the system network. To do so, development units by type are multiplied by adjusted vehicle trip ends per development unit. The factors used to calculate the current level of service expressed in vehicle miles of travel (VMT) are discussed below, and shown in Figure 5 after the discussion. VEHICLE MILES OF TRAVEL VMT is a measurement unit equal to one vehicle traveling one mile1. In the aggregate, VMT is the product of vehicle trips multiplied by the average trip length. For the 2023 TCEF update, the average trip length is calibrated to lane miles of existing City arterials within Fort Collins. TRIP GENERATION RATES The 2023 TCEF update is based on average weekday vehicle trip ends (AWVTE). For residential development, trip rates are customized using demographic data for Fort Collins, as documented in Appendix A. For nonresidential development, trip generation rates are from the reference book Trip Generation published by the Institute of Transportation Engineers (ITE 11th Edition, 2021). A vehicle trip end represents a vehicle either entering or exiting a development (as if a traffic counter were placed across a driveway). To calculate transportation fees, trip generation rates require an adjustment factor to avoid double counting each trip at both the origin and destination points. Therefore, the basic trip adjustment factor is 50 percent for industrial, institutional, and office development. As discussed further below, the TCEF methodology includes additional adjustments to make the fees proportionate to the infrastructure demand for particular types of development. 1 Typical VMT calculations for development-specific traffic studies, along with most transportation models of an entire urban area, are derived from traffic counts on particular road segments multiplied by the length of that road segment. For the purpose of the TCEF study, VMT calculations are based on attraction (inbound) trips to development located in the service area, with trip length limited to the road network considered to be system improvements (arterials and collectors). This refinement eliminates pass-through or external- external trips, and travel on roads that are not system improvements (e.g., state highways). Page 93 Item 4. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 9 ADJUSTMENT FOR PASS-BY TRIPS For retail development, the trip adjustment factor is less than 50 percent because such development attract vehicles as they pass by on arterial roads. For example, when someone stops at a convenience store on the way home from work, the convenience store is not the primary destination. For the average shopping center, ITE indicates that 25 percent of the vehicles that enter are passing by on their way to some other primary destination. The remaining 75 percent of attraction trips have the commercial site as their primary destination. Because attraction trips are half of all trips, the trip adjustment factor is 75 percent multiplied by 50 percent, or approximately 38 percent of the trip ends. TRIP LENGTH WEIGHTING FACTOR BY TYPE OF LAND USE The transportation fee methodology includes a percentage adjustment, or weighting factor, to account for trip length variation by type of land use. TischlerBise derived the weighting factors using household survey results provided by North Front Range Metropolitan Planning Organization (NRFMPO, 2010). As shown in Figure 3, trips associated with residential development are approximately 110 percent of the average trip length. Conversely, trips associated with commercial development (i.e., retail and restaurants) are approximately 66 percent of the average trip length while other nonresidential development typically accounts for trips that are 100 percent of the average for all trips. Figure 3. Average Trip Length by Trip Purpose in North Front Range Type of Development Trip Purpose Trips Average Miles Per Trip Weighting Factor 1-Residential All other at home activities 4,920 5.30 3.469 1-Residential Dropped off passenger 566 4.36 0.328 1-Residential Picked up passenger 557 3.47 0.257 1-Residential Indoor recreation/entertainment 516 4.80 0.330 1-Residential Change transportation mode 354 9.37 0.441 1-Residential Outdoor recreation/entertainment 254 6.60 0.223 1-Residential Service private vehicle 160 5.44 0.116 1-Residential Working at home 127 4.06 0.069 1-Residential Loop Trip and Other travel related 55 2.71 0.020 1-Residential School at home 7 2.03 0.002 1-Residential Total 7,516 5.255 1.10 2-Retail/Restaurant Routine shopping 1,236 2.76 1.571 2-Retail/Restaurant Eat meal outside home 577 3.10 0.824 2-Retail/Restaurant Other 180 5.37 0.445 2-Retail/Restaurant Major purchase / specialty item 91 6.15 0.258 2-Retail/Restaurant Drive through 88 1.80 0.073 2-Retail/Restaurant Total 2,172 3.170 0.66 3-Other Nonresidential Attend a class 790 2.59 0.756 3-Other Nonresidential Work/business related 618 8.48 1.937 3-Other Nonresidential Errands (bank, dry cleaning, etc.)475 2.34 0.411 3-Other Nonresidential Personal business (attorney, accountant)241 5.50 0.490 3-Other Nonresidential Health care 224 6.39 0.529 3-Other Nonresidential Civic/religious 196 5.13 0.372 3-Other Nonresidential Other activities at school 92 3.72 0.126 3-Other Nonresidential All other activities at work 70 5.82 0.151 3-Other Nonresidential Total 2,706 4.771 1.00 TOTAL 12,394 4.784 Data Source: Table R-27, NFRMPO Household Survey, 2010. Analysis excludes "Visit friends/relatives" because the average distance of 22.43 miles traveled is an outlier, approximately four times the overall average. "Work/job" travel was also excluded because trip origns and destinations can not be allocated between residential and type of nonresidential development. Page 94 Item 4. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 10 LANE CAPACITY The TCEF roadway capacity component is based on established daily per lane capacities for arterial roads. According to City staff, arterial roads were established to have a daily per lane capacity of 7,700, assuming 12 feet travel lanes, with no additional shoulder width, in an urban area. AVERAGE VEHICLE TRIP LENGTH The City of Fort Collins recently completed a travel diary study which surveyed residents on their daily travel including modes, distance, and purpose. Based on the results of the study, the average vehicle trip length in Fort Collins is 4.90 miles. ORIGIN & DESTINATION TRIP ANALYSIS Lastly, there is a demand on Fort Collins transportation network that is not associated with any development within city limits. Specifically, there are vehicle trips that originate and end outside of Fort Collins. The nature of these trips means there is a demand that is not Fort Collins growth-related thus not eligible for TCEF funding. Therefore, TischlerBise partnered with transportation engineers at Felsburg Holt & Ullevig to identify the thru-trips (external – external) in Fort Collins. Based on analysis of the Fort Collins travel demand model, seven percent of trips were identified as external – external. As a result, a seven percent reduction is included in the demand calculation. Figure 4. Origin & Destination Trip Analysis Development Prototypes and Projected Vehicle Miles of Travel The relationship between the amount of development within Fort Collins and vehicle miles of travel (VMT) is documented in Figure 5. In the table below DU means dwelling unit; KSF means 1,000 square feet of nonresidential development; Institute of Transportation Engineers is abbreviated ITE; VTE means vehicle trip ends. Trip generation rates by bedroom range are documented in Appendix A – Land Use Assumptions. Projected development over the next ten years and the corresponding need for additional lane miles is shown in the lower section of Figure 5. Fort Collins has a current infrastructure standard of 1.62 arterial lane miles per 10,000 VMT. Based on the detailed demand factors and projected growth, VMT is projected to increase from 3.07 million to 3.55 million over the next ten years (or 13 percent). To accommodate projected development over the next ten years, Fort Collins will need 61.9 additional lane miles of complete streets to maintain current levels of service. Origin/Destination Internal External Internal 50%15% External 28%7% Source: Felsburg Holt & Ullevig analysis of Fort Collins travel demand model Page 95 Item 4. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 11 Figure 5. Projected VMT Increase to Development within Fort Collins Development Weekday Development Primary Trip Trip Length Type VTE Unit Adjustment Wtg Factor Residential 0-1 Bedroom 4.26 DU 58%1.10 R1 Residential 2 Bedrooms 6.34 DU 58%1.10 R2 Residential 3 Bedrooms 8.80 DU 58%1.10 R3 Residential 4+ Bedrooms 10.56 DU 58%1.10 R4 Commercial 37.01 KSF 38%0.66 NR1 Office & Other Services 10.84 KSF 50%1.00 NR2 Industrial 4.87 KSF 50%1.00 NR3 Avg Trip Length (miles) [1]4.90 Vehicle Capacity Per Lane 7,700 Base Year 1 2 3 4 5 10 10-Year 2023 2024 2025 2026 2027 2028 2033 Increase Residential 0-1 Bedroom 6,212 6,320 6,429 6,550 6,671 6,792 7,524 1,312 Residential 2 Bedrooms 17,883 18,195 18,507 18,856 19,205 19,554 21,660 3,777 Residential 3 Bedrooms 24,688 25,118 25,549 26,030 26,512 26,993 29,901 5,213 Residential 4+ Bedrooms 23,807 24,222 24,637 25,102 25,566 26,031 28,835 5,028 Commercial KSF 10,024 10,060 10,097 10,135 10,173 10,211 10,393 370 Office & Other Services KSF 21,999 22,215 22,430 22,627 22,823 23,019 23,950 1,951 Industrial KSF 10,944 10,979 11,014 11,049 11,083 11,117 11,378 434 0-1 Bedroom Trips 15,349 15,615 15,885 16,184 16,483 16,782 18,590 3,242 2 Bedroom Trips 65,759 66,907 68,054 69,337 70,621 71,904 79,648 13,889 3 Bedroom Trips 126,008 128,202 130,402 132,857 135,317 137,772 152,615 26,607 4+ Bedroom Trips 145,813 148,355 150,897 153,745 156,587 159,435 176,609 30,795 Commercial Trips 140,970 141,485 142,000 142,535 143,071 143,607 146,169 5,199 Office & Other Services Trips 119,232 120,403 121,573 122,637 123,700 124,764 129,808 10,576 Industrial Trips 26,650 26,735 26,820 26,904 26,987 27,071 27,706 1,057 Total Inbound Vehicle Trips 639,780 647,702 655,631 664,199 672,766 681,334 731,145 91,365 Vehicle Miles of Travel (VMT)3,073,002 3,113,973 3,154,985 3,199,451 3,243,911 3,288,376 3,548,550 475,548 Arterial Lane Miles 497 502.3 507.6 513.4 519.2 525.0 558.9 61.9 Ten-Year VMT Increase =>13% [1] Source: Fort Collins Travel Diary Study (2022) Fort Collins Travel Model 5-Year Increment Page 96 Item 4. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 12 Capital Cost per Vehicle Miles of Travel As indicated by the travel demand model above, there is a need for 61.9 new lane miles to continue providing the current level of service to projected future demand. Furthermore, seven percent of the demand on the Fort Collins transportation network is from external – external trips. As a result, 57.6 miles is attributed to future growth in Fort Collins (61.9 lane miles x [1 - 0.07] = 57.6 lane miles). Additionally, Fort Collins staff estimates the construction cost of a new lane mile being $2,000,500. By combining the projected need in lane miles and cost per lane mile results in a growth-related capital cost per $115.5 million. Over the next ten years, there is a projected increase of 475,548 VMT. Comparing the growth-related capital cost and growth in VMT, the study finds a capital cost of $242.85 per VMT ($115,488,00 / 475,548 VMT = $242.85 per VMT, rounded). Figure 6. Capital Cost per VMT Revenue Credit Evaluation A credit for other revenues is only necessary if there is potential double payment for system improvements. In Fort Collins, Road & Bridge Fund property taxes and gas tax revenue will be used for maintenance of existing facilities, correcting existing deficiencies, and for capital projects that are not TCEF system improvements. As shown later in Figure 8, TCEF revenue over the next ten years mitigates the growth-related share of the roadway capacity needs. Thus, there is no potential double payment from other revenues to fund the growth cost of roadway capacity projects. Importantly, seven percent of the future need is attributed to external – external trips which represents $8.6 million. This is not attributed to Fort Collins development, thus, not eligible for TCEF funding. Fort Collins will have to identify other revenues (i.e., grants) to support this external cost. 10-Year Need in Roadway Lane Miles 61.9 Lane Miles Attributed to External - External Trips (7%)4.3 Fort Collins Growth-Related Lane Miles 57.6 Construction Cost per Lane Mile $2,005,000 Fort Collins Growth-Related Construction Cost $115,488,000 10-Year Increase in Vehicle Miles Traveled (VMT)475,548 Capital Cost per VMT $242.85 Page 97 Item 4. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 13 Input Variables for TCEF – Roadway Capacity Component A summary of inputs for the roadway capacity component of the TCEF program are detailed in Figure 7. Residential fees are based on the square footage of the dwelling unit while there are three nonresidential development types in the fee schedule (consistent with the current Fort Collins TCEF schedule). The roadway capacity TCEF is found by multiply the VMT demand factor and the growth cost per VMT. For example, the fee for a housing unit over 2,200 square feet is $8,191 (33.73 VMT per unit x $242.85 per VMT = $8,191 per unit). The fees represent the highest supportable amount for each type of applicable land use and represents new growth’s fair share of the cost for capital facilities. The City may adopt fees that are less than the amounts shown. However, a reduction in TCEF revenue will necessitate an increase in other revenues, a decrease in planned capital expenditures, and/or a decrease in levels of service. Figure 7. Maximum Supportable TCEF – Roadway Capacity Component Roadway Expansion $242.85 Gross Total $242.85 Net Total $242.85 up to 700 11.79 $2,863 701 to 1,200 20.54 $4,988 1,201 to 1,700 26.20 $6,363 1,701 to 2,200 30.39 $7,380 over 2,200 33.73 $8,191 Commercial 45.48 $11,045 Office & Other Services 26.56 $6,450 Industrial 11.93 $2,897 Development Type VMT per KSF Roadway Capacity Fee Nonresidential (per 1,000 square feet) Square Feet of Finished Living Space VMT per Unit Roadway Capacity Fee Fee Component Cost per VMT Residential (per dwelling unit) Page 98 Item 4. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 14 Revenue Projection from Maximum Supportable Fee Amounts This section summarizes the potential cash flow to the City of Fort Collin if the TCEF is implemented at the maximum supportable amounts. The cash flow projections are based on the assumptions detailed in this chapter and the development projections discussed in Appendix A – Land Use Assumptions. At the top of Figure 8, the cost of growth over the next ten years is listed. The summary provides an indication of the TCEF revenue generated by new development. The fee for the average sized single family and multifamily units are used in the calculations. Shown at the bottom of the figure, the maximum supportable TCEF is estimated to generate $111.3 million in revenue while there is a growth- related cost of $115.5 million, offsetting about 97 percent of the growth-related costs. The remaining funding gap represents the external – external share of future demand on the transportation network. Figure 8. Projected Revenue from Maximum Supportable TCEF – Roadway Capacity Component Infrastructure Costs for Transportation Facilities Total Cost Growth Cost Roadway Capacity $124,109,500 $115,488,000 Total Expenditures $124,109,500 $115,488,000 Projected Development Impact Fee Revenue Single Family Multifamily Commercial Office Industrial $7,380 $4,988 $11,045 $6,450 $2,897 per unit per unit per KSF per KSF per KSF Year Housing Units Housing Units KSF KSF KSF Base 2023 47,183 25,406 10,024 21,999 10,944 1 2024 47,769 26,087 10,060 22,215 10,979 2 2025 48,354 26,768 10,097 22,430 11,014 3 2026 49,009 27,529 10,135 22,627 11,049 4 2027 49,663 28,291 10,173 22,823 11,083 5 2028 50,318 29,052 10,211 23,019 11,117 6 2029 50,972 29,813 10,249 23,215 11,152 7 2030 51,627 30,575 10,287 23,412 11,186 8 2031 52,508 31,599 10,323 23,591 11,250 9 2032 53,389 32,624 10,358 23,770 11,314 10 2033 54,271 33,649 10,393 23,950 11,378 Ten-Year Increase 7,087 8,243 370 1,951 434 Projected Revenue $52,304,559 $41,115,500 $4,083,218 $12,585,770 $1,257,186 Projected Revenue =>$111,346,000 Total Expenditures =>$124,109,000 Non-Impact Fee Funding =>$12,763,000 Page 99 Item 4. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 15 TRANSPORTATION CAPITAL EXPANSION FEE – ACTIVE MODES COMPONENT The City of Fort Collins TCEF are calculated using a plan-based approach for active mode expansions. Transportation improvements that provide additional vehicular capacity, account for approximately 91 percent of the growth-related cost in the analysis while active modes represent 9. The active modes component of the TCEF is based on the demand from residential and nonresidential development and allocated based on the percent of commuters who walk or bike to work. Person per housing unit and employee density factors are then applied to find the proportionate demand from the development types. Active Modes Capital Plan The 2022 Active Modes Plan is the guiding document for the capital expansion plans for bike and pedestrian infrastructure in Fort Collins. The Plan identified High, Medium, and Low priority/readiness projects needed in the coming future to address existing demand and future demand from development. Since the TCEF study examines infrastructure need over the next ten years, City staff has advised that the high and medium project lists are a realistic plan over that planning horizon. Between the two lists there are 200 projects ranging from small spot treatments addressing signage and side paths to extensive separated bike lane expansion projects. Pages from the Plan listing the projects are provided in the appendix of this report.2 Overall, the capital plans for active mode expansion totals $87,554,000 over the next ten years. Active Modes Capital Plan Cost Analysis Based on the projected growth in demand on the Fort Collins transportation network, 13 percent ($11.4 million) of the total capital cost of the Active Modes Plan is attributed to development over the next ten years. As shown in Figure 9, the cost is allocated to residential and nonresidential demand based on the data from the Travel Diary Study Report (2022). From the survey, 22 percent of commuters in Fort Collins use active modes to travel to work. This factor is used to allocate the active modes capital cost to nonresidential demand while the remaining 78 percent is allocated to residential demand. The allocated costs are compared to the 10-year projected increase in population and jobs to find capital cost per unit factors. For example, the capital cost per person is $275.18 ($11,382,000 x 78 percent / 32,262 population increase = $275.18 per person). 2 The Active Modes Plan can also be found on the City’s website at https://www.fcgov.com/fcmoves/active- modes-plan. Page 100 Item 4. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 16 Figure 9. Active Modes Cost Analysis Revenue Credit Evaluation A credit for other revenues is only necessary if there is potential double payment for system improvements. In Fort Collins, there are general revenues and grants for maintenance of existing facilities and addressing existing demand. However, there are no other revenues available to address future demand on active mode infrastructure. As shown later in Figure 11, TCEF revenue over the next ten years mitigates the growth-related share of the active modes plan. Thus, there is no potential double payment from other revenues to fund the growth cost of active modes projects. High and Medium Priority Projects $87,554,000 Growth-Share of Project List 13% Growth-Related Cost of Active Modes Plan $11,382,020 Residential Nonresidential Proportionate Share [1]78.0%22.0% Attributed Capital Cost $8,877,976 $2,504,044 10-Year Population/Jobs Increase 32,262 7,580 Capital Cost per Person/Job $275.18 $330.37 [1] Source: Fort Collins Travel Diary Study Report (2022) Page 101 Item 4. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 17 Input Variables for TCEF – Active Modes Component A summary of inputs for the active modes component of the TCEF program are detailed in Figure 10. Residential fees are based on the square footage of the dwelling unit while there are three nonresidential development types in the fee schedule (consistent with the current Fort Collins TCEF schedule). The active modes TCEF is found by multiply the person/job demand factor and the growth cost per person/job. For example, the fee for a housing unit over 2,200 square feet is $809 (2.94 persons per unit x $275.18 per person = $809 per unit). The fees represent the highest supportable amount for each type of applicable land use and represents new growth’s fair share of the cost for capital facilities. The City may adopt fees that are less than the amounts shown. However, a reduction in TCEF revenue will necessitate an increase in other revenues, a decrease in planned capital expenditures, and/or a decrease in levels of service. Figure 10. Maximum Supportable TCEF – Active Modes Component Fee Component Cost per Person Cost per Job Active Modes $275.18 $330.37 Gross Total $275.18 $330.37 Net Total $275.18 $330.37 up to 700 0.99 $272 701 to 1,200 1.77 $487 1,201 to 1,700 2.27 $625 1,701 to 2,200 2.64 $726 over 2,200 2.94 $809 Commercial 2.12 $702 Office & Other Services 3.26 $1,075 Industrial 2.86 $944 Residential (per dwelling unit) Development Type Jobs per KSF Active Modes Fee Nonresidential (per 1,000 square feet) Square Feet of Finished Living Space Persons per Unit Active Modes Fee Page 102 Item 4. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 18 Revenue Projection from Maximum Supportable Fee Amounts This section summarizes the potential cash flow to the City of Fort Collins if the TCEF is implemented at the maximum supportable amounts. The cash flow projections are based on the assumptions detailed in this chapter and the development projections discussed in Appendix A – Land Use Assumptions. At the top of Figure 11, the cost of growth over the next ten years is listed. The summary provides an indication of the TCEF revenue generated by new development. The fee for the average sized single family and multifamily units are used in the calculations. Shown at the bottom of the figure, the maximum supportable TCEF is estimated to generate $11.9 million in revenue while there is a growth- related cost of $11.4 million, offsetting all growth-related costs. The remaining funding gap represents the existing demand in Fort Collins and will be funded through other revenues. Figure 11. Projected Revenue from Maximum Supportable TCEF – Active Modes Component Total Cost Growth Cost Active Modes $87,554,000 $11,382,020 Total Expenditures $87,554,000 $11,382,020 Projected Development Impact Fee Revenue Single Family Multifamily Commercial Office Industrial $726 $487 $702 $1,075 $944 per unit per unit per KSF per KSF per KSF Year Housing Units Housing Units KSF KSF KSF Base 2023 47,183 25,406 10,024 21,999 10,944 1 2024 47,769 26,087 10,060 22,215 10,979 2 2025 48,354 26,768 10,097 22,430 11,014 3 2026 49,009 27,529 10,135 22,627 11,049 4 2027 49,663 28,291 10,173 22,823 11,083 5 2028 50,318 29,052 10,211 23,019 11,117 6 2029 50,972 29,813 10,249 23,215 11,152 7 2030 51,627 30,575 10,287 23,412 11,186 8 2031 52,508 31,599 10,323 23,591 11,250 9 2032 53,389 32,624 10,358 23,770 11,314 10 2033 54,271 33,649 10,393 23,950 11,378 Ten-Year Increase 7,087 8,243 370 1,951 434 Projected Revenue $5,145,408 $4,014,284 $259,522 $2,097,628 $409,660 Projected Revenue =>$11,927,000 Total Expenditures =>$87,554,000 Non-Impact Fee Funding =>$75,627,000 Page 103 Item 4. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 19 IMPLEMENTATION AND ADMINISTRATION Development impact fees (in this case TCEF) should be periodically evaluated and updated to reflect recent data. Fort Collins has consistently annually updated the TCEF schedule based on local inflation data. If cost estimates or demand indicators change significantly, the City should redo the fee calculations. Colorado’s enabling legislation allows local governments to “waive an impact fee or other similar development charge on the development of low- or moderate-income housing, or affordable employee housing, as defined by the local government.” Credits and Reimbursements A general requirement that is common to impact fee methodologies is the evaluation of credits. A revenue credit may be necessary to avoid potential double payment situations arising from one-time impact fees plus on-going payment of other revenues that may also fund growth-related capital improvements. The determination of revenue credits is dependent upon the impact fee methodology used in the cost analysis and local government policies. Policies and procedures related to site-specific credits should be addressed in the resolution or ordinance that establishes the impact fees. Project-level improvements, required as part of the development approval process, are not eligible for credits against impact fees. If a developer constructs a system improvement included in the fee calculations, it will be necessary to either reimburse the developer or provide a credit against the fees due from that particular development. The latter option is more difficult to administer because it creates unique fees for specific geographic areas. Based on national experience, TischlerBise typically recommends reimbursement agreements with developers that construct system improvements. The reimbursement agreement should be limited to a payback period of no more than ten years and the City should not pay interest on the outstanding balance. The developer must provide sufficient documentation of the actual cost incurred for the system improvement. The City should only agree to pay the lesser of the actual construction cost or the estimated cost used in the impact fee analysis. If the City pays more than the cost used in the fee analysis, there will be insufficient fee revenue for other capital improvements. Reimbursement agreements should only obligate the City to reimburse developers annually according to actual fee collections from the applicable Benefit District. Citywide Service Area The TCEF service area is defined as the entire incorporated area within Fort Collins. The infrastructure funded through the TCEF is citywide benefiting and can be attributed to demand throughout the city. Expenditure Guidelines Fort Collins will distinguish system improvements (funded by transportation capital expansion fees) from project-level improvements, such as local streets within a residential subdivision. TischlerBise Page 104 Item 4. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 20 recommends limiting transportation fee expenditures to arterials and collectors, and should be consistent with Fort Collins City Code. System improvements that are eligible for transportation fee funding could include: • Constructing an arterial or collector street. • A carrying-capacity enhancement to existing arterials or collectors, such reconstruction to add greater street width, including additional vehicular travel lanes, bike lanes, and/or shoulders. • Adding turn lanes, traffic signals, or roundabouts at the intersection of a State Highway with a City arterial or collector, or a City arterial with another City arterial or collector. Development Categories Proposed transportation fees for residential development are by square feet of finished living space, excluding unfinished basement, attic, and garage floor area. Appendix A provides further documentation of demographic data by size threshold. The three general nonresidential development categories in the proposed TCEF schedule can be used for all new construction within the Service Area. Nonresidential development categories represent general groups of land uses that share similar average weekday vehicle trip generation rates, as documented in Appendix A. • “Industrial” includes the processing or production of goods, along with warehousing, transportation, communications, and utilities. • “Commercial” includes retail development and eating/drinking places, along with entertainment uses often located in a shopping center (i.e., movie theater). • “Office & Other Services” includes offices, health care and personal services, business services (i.e., banks) and lodging. Public and quasi-public buildings that provide educational, social assistance, or religious services are also included in this category. An applicant may submit an independent study to document unique demand indicators for a particular development. The independent study must be prepared by a professional engineer or certified planner and use the same type of input variables as those in this transportation capital expansion fee update. For residential development, the fees are based on average weekday vehicle trip ends per housing unit. For nonresidential development, the fees are based on average weekday vehicle trips ends per 1,000 square feet of floor area. The independent fee study will be reviewed by City staff and can be accepted as the basis for a unique fee calculation. If staff determines the independent fee study is not reasonable, the applicant may appeal the administrative decision to City elected officials for their consideration. Page 105 Item 4. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 21 APPENDIX A – LAND USE ASSUMPTIONS Development-related capital expansion fees often use per capita standards and persons per housing unit or persons per household to derive proportionate share fee amounts. Housing types have varying household sizes and, consequently, a varying demand on City infrastructure and services. Thus, it is important to differentiate between housing types and size. When persons per housing unit (PPHU) is used in the development impact fee calculations, infrastructure standards are derived using year-round population. In contrast, when persons per household (PPHH) is used in the development impact fee calculations, the fee methodology assumes all housing units will be occupied, thus requiring seasonal or peak population to be used when deriving infrastructure standards. Thus, TischlerBise recommends that fees for residential development in Fort Collins be imposed according to persons per housing unit. Based on housing characteristics, TischlerBise recommends using two housing unit categories for the TCEF study: (1) Single Family and (2) Multifamily. Each housing type has different characteristics which results in a different demand on City facilities and services. Figure 12 shows the US Census American Community Survey 2021 5-Year Estimates data for the City of Fort Collins. Single family units have a household size of 2.54 persons and multifamily units have a household size of 1.73 persons Figure 12. Fort Collins Persons per Housing Unit Base Year Population and Housing Units The City of Fort Collins has provided its own 2023 base year household population estimate which is what will be used to calculate base year housing units. Figure 13. Base Year Household Population In 2023, there are an estimated 72,590 housing units in Fort Collins. The housing mix and PPHU factors in Figure 12 are applied to the household population to estimate single family and multifamily units. Overall, single family housing is 65 percent of the total, while multifamily is 35 percent. House-Persons per Housing Persons per Housing Vacancy holds Household Units Housing Unit Mix Rate Single Family 115,988 44,342 2.62 45,625 2.54 65%3% Multifamily 42,457 22,862 1.86 24,496 1.73 35%7% Subtotal 158,445 67,204 2.36 70,121 2.26 4% Group Quarters 8,197 TOTAL 166,642 Source: U.S. Census Bureau, 2021 5-Year Estimate American Community Survey Single unit includes detached and attached (i.e. townhouse) and mobile homes Units in Structure Persons Base Year Fort Collins, CO 2023 Household Population [1]164,053 [1] Source: City of Fort Collins Population Estimate Page 106 Item 4. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 22 Figure 14. Base Year Housing Units However, recent trends over the last three years show multifamily housing growing at a greater rate than single family at 54 percent vs 46 percent of total housing growth respectively as shown in Figure 15. This is the trend that will be used for housing and population growth projections. Figure 15. Building Permit History In 2023, the household population in Fort Collins is estimated to be 164,053. To estimate the total residents, the group quarters population of 10,392 is applied to the household population. As a result, the 2023 population is estimated at 174,445 residents and will be used for housing and population projections. Figure 16. Base Year Population 2023 Fort Collins, CO Housing Units [1] Single Family 47,183 Multifamily 25,406 Total 72,590 [1] Source: City of Fort Collins Population Estimate; PPHU Factors 2020-2023 Fort Collins, CO Building Permits Single Family 1,104 46% Multifamily 1,284 54% Total 2,388 Source: City of Fort Collins Percent of Total 2023 2023 2023 Fort Collins, CO Household Population Group Quarters Population Total Population Population 164,053 10,392 174,445 Source: City of Fort Collins Population Estimate Page 107 Item 4. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 23 Population and Housing Unit Projections From the 2023 base year housing unit totals, there is a projected increase of 21 percent in housing stock over the next ten years. Following the trend that there is more multifamily development (54 percent) than single family development (46 percent), there is an estima ted 8,243 multifamily units and 7,087 single family units projected. Population growth is assumed to continue with housing development based on the PPHU factors by housing type. As a result, there is a projected increase of 32,262 residents over the next ten years. This is an 18.5 percent increase from the base year, slightly lower than housing development at 21 percent since there is a shift in multifamily deve lopment and smaller household sizes. Figure 17. Residential Development Projections Base Year 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Population [1]174,445 177,109 179,774 182,753 185,733 188,713 191,693 194,673 198,684 202,696 206,707 32,262 1.5%1.5%1.7%1.6%1.6%1.6%1.6%2.1%2.0%2.0%18.5% Housing Units [2] Single Family 47,183 47,769 48,354 49,009 49,663 50,318 50,972 51,627 52,508 53,389 54,271 7,087 Multifamily 25,406 26,087 26,768 27,529 28,291 29,052 29,813 30,575 31,599 32,624 33,649 8,243 Total 72,590 73,856 75,122 76,538 77,954 79,370 80,786 82,202 84,108 86,014 87,920 15,330 [2] Source: Housing growth is projected based on housing development and PPHU factors [1] Source: City of Fort Collins Population Estimate; Population growth is projected based on housing development and PPHU factors by type of home Total Increase Percent Increase City of Fort Collins, CO Page 108 Item 4. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 24 Current Employment and Nonresidential Floor Area The impact fee study will include nonresidential development as well. Job estimates are from North Front Range MPO Traffic TAZ database. The model forecasts employment growth for the entire city from 2020 to 2045 in five-year increments. To find the total employment in the base year, 2023, a straight- line approach from 2020 to 2025 was used. Listed in Figure 18, 107,677 jobs are estimated in the City of Fort Collins. Nearly half the employment is in the office industry. However, retail, industrial, and institutional industries have a significant presence as well. Figure 18. Base Year Employment by Industry The base year nonresidential floor area for the industry sectors is calculated with the Institution of Transportation Engineers’ (ITE) square feet per employee averages, Figure 19. For industrial the Light Industrial factors are used; for institutional the Hospital factors are used; for retail the Shopping Center factors are used; for office the General Office factors are used. Figure 19. Institute of Transportation Engineers (ITE) Employment Density Factors By combining the base year job totals and the ITE square feet per employee factors, the nonresidential floor area is calculated in Figure 20. There is an estimated total of 43 million square feet of nonresidential floor area in Fort Collins. The office and industrial industries account for almost two - thirds of the total floor area at 37 percent and 25 percent respectively, while retail accounts for 23 percent and institutional accounts for 14 percent of the total. Base Year 2023 Industrial 17,181 16% Institutional 17,433 16% Retail 21,282 20% Office 51,782 48% Total Jobs 107,677 100% Employment Industries Source: North Front Range MPO TAZ employment database Percent of Total Employment ITE Demand Emp Per Sq Ft Industry Code Land Use Unit Dmd Unit Per Emp Industrial 110 Light Industrial 1,000 Sq Ft 1.57 637 Institutional 610 Hospital 1,000 Sq Ft 2.86 350 Retail 820 Shopping Center 1,000 Sq Ft 2.12 471 Office 710 General Office 1,000 Sq Ft 3.26 307 Source: Trip Generation , Institute of Transportation Engineers, 11th Edition (2021) Page 109 Item 4. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 25 Figure 20. Base Year Nonresidential Floor Area Base Year Sq. Ft.Base Year Jobs [1]per Job [2]Floor Area (Sq. Ft.) Industrial 17,181 637 10,944,355 Institutional 17,433 350 6,101,592 Retail 21,282 471 10,023,588 Office 51,782 307 15,896,963 Total 107,677 42,966,498 [1] Source: North Front Range MPO TAZ employment database Employment Industries [2] Source: Trip Generation, Institute of Transportation Engineers, 11th Edition (2021) Page 110 Item 4. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 26 Employment and Nonresidential Floor Area Projections Based on the TAZ employment database, over the ten-year projection period, it is estimated that there will be an increase of 7,580 jobs. The majority of the increase comes from the office sector (58 percent); however, the institutional sector (23 percent) has a significant impact as well. The nonresidential floor area projections are calculated by applying the ITE square feet per employee factors to the job growth. In the next ten years, the nonresidential floor area is projected to increase by 2.8 million square feet, a 6 percent increase from the base year. The office and institutional sectors have the greatest increase. Figure 21. Employment and Nonresidential Floor Area Projections Base Year 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Jobs [1] Industrial 17,181 17,236 17,291 17,345 17,399 17,453 17,507 17,560 17,661 17,762 17,862 681 Institutional 17,433 17,621 17,809 17,980 18,152 18,323 18,495 18,666 18,832 18,999 19,165 1,732 Retail 21,282 21,359 21,437 21,518 21,599 21,680 21,760 21,841 21,916 21,991 22,066 785 Office 51,782 52,271 52,760 53,204 53,648 54,091 54,535 54,979 55,374 55,768 56,163 4,381 Total Jobs 107,677 108,487 109,297 110,047 110,797 111,547 112,297 113,047 113,784 114,520 115,257 7,580 Industrial 10,944 10,979 11,014 11,049 11,083 11,117 11,152 11,186 11,250 11,314 11,378 434 Institutional 6,102 6,167 6,233 6,293 6,353 6,413 6,473 6,533 6,591 6,650 6,708 606 Retail 10,024 10,060 10,097 10,135 10,173 10,211 10,249 10,287 10,323 10,358 10,393 370 Office 15,897 16,047 16,197 16,334 16,470 16,606 16,742 16,879 17,000 17,121 17,242 1,345 Total Floor Area 42,966 43,254 43,542 43,810 44,079 44,348 44,616 44,885 45,164 45,443 45,721 2,755 City of Fort Collins, CO Total Increase [2] Source: Trip Generation, Institute of Transportation Engineers, 11th Edition (2021) [1] Source: North Front Range MPO TAZ employment database Nonresidential Floor Area (1,000 square feet) [2] Page 111 Item 4. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 27 Vehicle Trip Generation RESIDENTIAL VEHICLE TRIPS BY HOUSING TYPE A customized trip rate is calculated for the single family and multifamily units in Fort Collins. In Figure 22, the most recent data from the US Census American Community Survey is inputted into equations provided by the ITE to calculate the trip ends per housing unit f actor. A single family unit is estimated to generate 12.70 trip ends and a multifamily unit is estimated to generate 6.00 trip ends on an ave rage weekday. Figure 22. Customized Residential Trip End Rates by Housing Type Owner-occupied 74,579 33,116 2,493 35,609 2.09 Renter-occupied 55,237 11,226 20,369 31,595 1.75 Total 129,816 44,342 22,862 67,204 1.93 Housing Units (3) =>45,625 24,496 70,121 Persons per Housing Unit =>2.54 1.73 2.26 Persons in Trip Vehicles by Trip Average National Trip Difference Households (4)Ends (5)Type of Unit Ends (6)Trip Ends Ends per Unit (7)from ITE Single Family 115,988 323,073 88,984 832,918 577,996 12.70 9.43 35% Multifamily 42,457 97,146 40,832 194,723 145,934 6.00 4.54 32% Total 158,445 420,219 129,816 1,027,640 723,930 10.80 4. Total population in households from Table B25033, 2020 American Community Survey 5-Year Estimates. 7. Trip Generation, Institute of Transportation Engineers, 11th Edition (2021). 2. Households by tenure and units in structure from Table B25032, 2020 American Community Survey 5-Year Estimates. 5. Vehicle trips ends based on persons using formulas from Trip Generation (ITE 2021). For single-family housing (ITE 210), the fitted curve equation is EXP(0.89*LN(persons)+1.72). To approximate the average population of the ITE studies, persons were divided by 12 and the equation result multiplied by 558. For multi-family housing (ITE 221), the fitted curve equation is (2.29*persons)-64.48 (ITE 2017). 6. Vehicle trip ends based on vehicles available using formulas from Trip Generation (ITE 2021). For single-family housing (ITE 210), the fitted curve equation is EXP(0.92*LN(vehicles)+2.68). To approximate the average number of vehicles in the ITE studies, vehicles available were divided by 21 and the equation result multiplied by 256. For multi-family housing (ITE 221), the fitted curve equation is (4.77*vehicles)-46.46 (ITE 2021). Households by Structure Type (2) Single Family 1. Vehicles available by tenure from Table B25046, 2020 American Community Survey 5-Year Estimates. 3. Housing units from Table B25024, 2020 American Community Survey 5-Year Estimates. Tenure by Units in Structure Vehicles Available (2)Multifamily Total Vehicles per HH by Housing Type Local Trip Ends per Unit Page 112 Item 4. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 28 RESIDENTIAL VEHICLE TRIPS ADJUSTMENT FACTORS A vehicle trip end is the out-bound or in-bound leg of a vehicle trip. As a result, so to not double count trips, a standard 50 percent adjustment is applied to trip ends to calculate a vehicle trip. For example, the out-bound trip from a person’s home to work is attributed to the housing unit and the trip from work back home is attributed to the employer. However, an additional adjustment is necessary to capture City residents’ work bound trips that are outside of the city. The trip adjustment factor includes two components. According to the National Household Travel Survey (2009), home-based work trips are typically 31 percent of out-bound trips (which are 50 percent of all trip ends). Also, utilizing the most recent data from the Census Bureau's web application "OnTheMap”, 51 percent of Fort Collins workers travel outside the city for work. In combination, these factors account for 8 percent of additional production trips (0.31 x 0.50 x 0.51 = 0.08). Shown in Figure 23, the total adjustment factor for residential housing units includes attraction trips (50 percent of trip ends) plus the journey-to-work commuting adjustment (8 percent of production trips) for a total of 58 percent. Figure 23. Residential Trip Adjustment Factor for Commuters NONRESIDENTIAL VEHICLE TRIPS Vehicle trip generation for nonresidential land uses are calculated by using ITE’s average daily trip end rates and adjustment factors found in their recently published 11th edition of Trip Generation. To estimate the trip generation in Fort Colins, the weekday trip end per 1,000 square feet factors highlighted in Figure 24 are used. Figure 24. Institute of Transportation Engineers Nonresidential Factors For nonresidential land uses, the standard 50 percent adjustment is applied to office, industrial, and institutional. A lower vehicle trip adjustment factor is used for retail because this type of development attracts vehicles as they pass-by on arterial and collector roads. For example, when someone stops at a convenience store on their way home from work, the convenience store is not their primary destination. Employed Fort Collins Residents (2019)73,469 Residents Working in the City (2019)36,223 Residents Commuting Outside of the City for Work 37,246 Percent Commuting Out of the City 51% Additional Production Trips 8% Standard Trip Adjustment Factor 50% Residential Trip Adjustment Factor 58% Source: U.S. Census, OnTheMap Application, 2019 Employment ITE Demand Wkdy Trip Ends Wkdy Trip Ends Industry Code Land Use Unit Per Dmd Unit Per Employee Industrial 110 Light Industrial 1,000 Sq Ft 4.87 3.10 Institutional 610 Hospital 1,000 Sq Ft 10.77 3.77 Retail 820 Shopping Center 1,000 Sq Ft 37.01 17.42 Office 710 General Office 1,000 Sq Ft 10.84 3.33 Source: Trip Generation , Institute of Transportation Engineers, 11th Edition (2021) Page 113 Item 4. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 29 In Figure 25, the Institute for Transportation Engineers’ land use code, daily vehicle trip end rate, and trip adjustment factor is listed for each land use. Figure 25. Daily Vehicle Trip Factors Residential (per housing unit) Single Family 210 12.70 58% Multifamily 220 6.00 58% Nonresidential (per 1,000 square feet) Industrial 110 4.87 50% Institutional 610 10.77 50% Retail 820 37.01 38% Office 710 10.84 50% Land Use ITE Codes Daily Vehicle Trip Ends Trip Adj. Factor Source: Trip Generation, Institute of Transportation Engineers, 11th Edition (2021); National Household Travel Survey, 2009 Page 114 Item 4. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 30 Residential Trip Generation by Housing Unit Size (sq. ft.) As an alternative to simply using average trip generation rates for residential development by housing type, TischlerBise has derived custom trip rates using demographic data for Fort Collins. Key inputs needed for the analysis (i.e., average number of persons and vehicles available per housing unit) are available from the U.S. Census Bureau’s American Community Survey (ACS). FORT COLLINS CONTROL TOTALS As previously shown in Figure 12, Fort Collins averages 2.26 residents per housing unit. Single family includes detached and attached dwellings and manufactured housing. Duplexes and apartments are combined as multifamily. The average number of persons per housing unit in Fort Collins will be compared to national averages derived from traffic studies tabulated by the Institute of Transportation Engineers (ITE). Trip generation rates are also dependent upon the average number of vehicles available per dwelling. Figure 26 indicates vehicles available by housing type within Fort Collins. As expected, single family housing has more vehicles available per dwelling (1.95) than multifamily housing (1.67). Figure 26. Vehicles Available per Housing Unit DEMAND INDICATORS BY DWELLING SIZE Custom tabulations of demographic data by bedroom range can be created from individual survey responses provided by the U.S. Census Bureau, in files known as Public Use Microdata Samples (PUMS). Because PUMS files are available for areas of roughly 100,000 persons, Fort Collins is included in Public Use Microdata Area (PUMA) 103 that covers the northern portion of Larimer County. At the top of Figure 27, cells with yellow shading indicate the survey results, which yield the unadjusted number of persons and vehicles available per dwelling. These multipliers are adjusted to match the control totals for Fort Collins, as documented in Figure 12 and Figure 26. Tenure Vehicles Available [1]Single Family Multifamily Total Vehicles per Household by Tenure Owner-occupied 74,579 33,116 2,493 35,609 2.09 Renter-occupied 55,237 11,226 20,369 31,595 1.75 Total 129,816 44,342 22,862 67,204 1.93 Housing Type Vehicles Available Housing Units [3] Vehicles per Housing Unit Single Family 88,984 45,625 1.95 Multifamily 40,832 24,496 1.67 Total 129,816 70,121 1.85 Households [2] [1] Vehicles available by tenure from Table B25046, American Community Survey, 2017- [3] Housing units from Table B25024, American Community Survey, 2021 [2] Households by tenure and units in structure from Table B25032, American Community Survey, 2021 Page 115 Item 4. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 31 In comparison to the national averages based on ITE traffic studies, Fort Collins has fewer persons per dwelling, but a greater number of vehicles available per dwelling. Rather than rely on one methodology, the recommended multipliers shown below with grey shading and bold numbers are an average of trip rates based on persons and vehicles available (all types of housing units combined). In Fort Collins, the average housing unit is estimated to yield an 8.40 Average Weekday Vehicle Trip Ends (AWVTE). Figure 27. Average Weekday Vehicle Trips Ends by Bedroom Range To derive average weekday vehicle trip ends by dwelling size, TischlerBise matched trip generation rates and average floor area, by bedroom range, as shown in Figure 28. Floor area averages were calculated with certificate of occupancies issued from 2020 through 2022. The logarithmic trend line formula is derived from the four actual averages in Fort Collins. The trend line is then used to derive estimated trip ends by dwelling size thresholds. In 2017, TischlerBise completed the previous TCEF for Fort Collins. At that time, the average size home (1,701 to 2,200 square feet) was estimate to generate 8.92 daily vehicle trip ends. Compared to the updated average rate of 9.72 vehicle trip ends, the average size home has increased by 8 percent. Bedroom Vehicles Housing Housing Unadjusted Adjusted Unadjusted Adjusted Range Available 1 Units1 Mix Persons/HU Persons/HU2 VehAvl/HU VehAvl/HU2 0-1 457 386 388 8.6%1.18 1.17 0.99 0.97 2 1,885 1,678 1,117 24.6%1.69 1.68 1.50 1.47 3 3,585 3,217 1,542 34.0%2.32 2.30 2.09 2.05 4+4,410 3,630 1,487 32.8%2.97 2.94 2.44 2.39 Total 10,337 8,911 4,534 2.28 2.26 1.97 1.93 National Averages According to ITE (Trip Generation Manual, 11th Edition, 2021) ITE AWVTE per AWVTE per AWVTE per Housing Persons per Veh Avl per Code Person Vehicle Available Household Mix Household Household 221 Apt 1.84 5.10 4.54 35%2.47 0.89 210 SFD 2.65 6.36 9.43 65%3.56 1.48 Wgtd Avg 2.37 5.92 7.72 3.18 1.27 Recommended AWVTE per Dwelling Unit by Bedroom Range AWVTE per AWVTE per HU Based HU Based on on Persons3 Vehicles Available 4 0-1 2.77 5.74 4.26 2 3.98 8.70 6.34 3 5.45 12.14 8.80 4+6.97 14.15 10.56 Total 5.36 11.43 8.40 AWVTE per Dwelling by House Type AWVTE per AWVTE per HU Based HU Based on on Persons3 Vehicles Available 4 221 Apt 4.10 9.89 7.00 1.73 1.67 210 SFD 6.02 11.54 8.78 2.54 1.95 All Types 5.36 11.44 8.40 2.26 1.93 Fort Collins VehAvl/HU Persons1 Bedroom Range AWVTE per Housing Unit5 ITE Code AWVTE per Housing Unit5 Fort Collins Persons/HU Unadjusted VehAvl/HU 1. American Community Survey, Public Use Microdata Sample for CO PUMA 00103 (2017-2021 5-Year). 2. Adjusted multipliers are scaled to make the average PUMS values match control total s for Fort Collins, based on American Community Survey (2017-2021 5-Year). 3. Adjusted persons per housing unit multiplied by national weighted average trip rate per person. 4. Adjusted vehicles available per housing unit multiplied by national weighted average trip rate per vehicle available. 5. Average of trip rates based on persons and vehicles available per housing unit. Page 116 Item 4. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 32 Figure 28. Residential Vehicle Trip Ends by Dwelling Size Bedrooms Square Feet Trip Ends Sq Ft Range Trip Ends 0-1 781 4.26 up to 700 3.77 2 1,162 6.34 701 to 1,200 6.57 3 1,729 8.80 1,201 to 1,700 8.38 4+2,684 10.56 1,701 to 2,200 9.72 over 2,200 10.79 Actual Averages per Hsg Unit Fitted-Curve Values y = 5.1986ln(x) -30.289 R² = 0.9931 0.00 2.00 4.00 6.00 8.00 10.00 12.00 0 500 1,000 1,500 2,000 2,500 3,000 Tr i p E n d s p e r H o u s i n g U n i t Square Feet of Living Area Average Weekday Vehicle Trip Ends by Dwelling Square Footage Unit size ranges are based on current fee schedule and consistent with residential certificates of occupancy issued from 2020 -2022 . Average weekday vehicle trip ends per housing unit are derived from 2021 ACS PUMS data for the area that includes Fort Collins. Page 117 Item 4. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 33 APPENDIX B – ACTIVE MODES PROJECT LISTS Below are pages from the Fort Collins Active Modes Plan (2022) listing the high and medium priority/readiness projects. Page 118 Item 4. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 34 Figure 29. High Priority/Readiness Projects Page 119 Item 4. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 35 Figure 30. High Priority/Readiness Projects cont. Page 120 Item 4. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 36 Figure 31. High Priority/Readiness Projects cont. Page 121 Item 4. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 37 Figure 32. Medium Priority/Readiness Projects Page 122 Item 4. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 38 Figure 33. Medium Priority/Readiness Projects cont. Page 123 Item 4. Transportation Capital Expansion Fee Study City of Fort Collins, Colorado 39 Figure 34. Medium Priority/Readiness Projects cont. Page 124 Item 4. Headline Copy Goes Here Financial Services, Utilities Finance Director Joe Wimmer Josh Birks February 11, 2025 Impact Fees 2025 Realignment Sustainability Services, Deputy Director Page 125 Item 4. Headline Copy Goes Here 2 Agenda •Fee History & Current State •2023-2024 Recap and Policy Alignment •Recommendation for 2025 Workplan •Questions & Discussion Page 126 Item 4. Headline Copy Goes Here 3 Questions for City Council •Does Council have any additions to our recap of 2023/2024 discussions? •Do you have any questions or comments about the proposed 2025 work plan? Page 127 Item 4. Headline Copy Goes Here 4 Current State •In January 2025, Capital Expansion Fees (CEFs) were updated with an inflationary factor in lieu of fees proposed by 2023 studies. •Utilities Electric Capacity Fee and three Plant Investment Fees (PIFs) have been fully updated. •CEFs have received inflationary-only updates since previous 2017 study adoption. •Financial difference of $2.0M from 2023 study’s proposed fees versus inflationary updates Page 128 Item 4. Headline Copy Goes Here 5 2023-2024 Discussion & Questions Recap Key Theme: Balancing desired level of service and fee impact on housing development costs •Existing level of service versus future level of service model assumptions •Future state of active modes and roadways goals •Square footage fee structure impact on incentivizing types of development •Comparison with peer regional cities Page 129 Item 4. Headline Copy Goes Here 6 Realignment Scope & Objectives Realignment effort focus: •Fee ability to affect policy through valid model adjustments. •Fee alignment with adopted policies, council priorities, values. Committed to maintain: •Data driven methodologies. •Integrity of studies and fee schedules. •Defensibility and compliance with changing legal environment. Legal Fair Defensible Adopted Plans, Policies, Goals Council Priorities, Values Page 130 Item 4. Headline Copy Goes Here Growth ApportionmentFee AllocationLevel of Service Inputs Preliminary Lever Identification 7 Examples: •Capacity factor / adequate public facility discounts •Active modes travel assumptions •Future parks, roadways, vehicle miles traveled compared to existing LOS •Outside financial contribution assumptions •Studies propose maximum supportable fee amounts •New growth paying entire proportionate share of capital need •Partial fee adoption to mitigate housing affordability impacts •Infill development scaling •Square footage range adjustments. Current maximum 2,200 sq.ft. •Residential dwelling unit categories e.g. single family, multifamily •Parkland nonresidential allocations Page 131 Item 4. Headline Copy Goes Here 8 2025 Workplan Timeline 1) Comprehensive legal review 2) Assess methodological options 3) Propose alignment adjustments to 2023 study assumptions 4) Recommend fee schedules for January 1, 2026, implementation 5) Plan for next cycle of comprehensive study updates Feb 2025 Q1-Q3 2025 Jan 2026 January 1st Fee Implementation May/June Council Finance Committee July/August Council Work Session City Council Adoption February 11th, Council Work Session Fall 2025 Page 132 Item 4. Headline Copy Goes Here 9 Future Cadence Next capital expansion fee study and detailed update planned for 2030 implementation 2017-2025 2026 2027 2028 2029 2030 Capital Expansion Fees Inflation Update Inflation Inflation Inflation Update Transportation CEFs Inflation Update Inflation Inflation Inflation Update Electric Capacity Fees Updated Update Inflation Update Inflation Update Water Supply Requirement Updated Update Inflation Update Inflation Update Water, Wastewater, Stormwater PIFs Updated Update Inflation Update Inflation Update Page 133 Item 4. Headline Copy Goes Here 10 Questions for City Council •Does Council have any additions to our recap of 2023/2024 discussions? •Do you have any questions or comments about the proposed 2025 work plan? Page 134 Item 4. Headline Copy Goes Here Appendix 11 Page 135 Item 4. Headline Copy Goes Here 12 TCEF: 2023 Study Update (TischlerBise) Residential Unit Roadway Fee % of Total Active Modes % of Total Update Total 2023 Total Change % Change up to 700 sq. ft.Dwelling $2,863 91%$272 9%$3,135 $2,703 $432 16% 701-1,200 sq. ft.Dwelling $4,988 91%$487 9%$5,475 $5,020 $455 9% 1,201-1,700 sq. ft.Dwelling $6,363 91%$625 9%$6,988 $6,518 $470 7% 1,701-2,200 sq. ft.Dwelling $7,380 91%$726 9%$8,106 $7,621 $485 6% over 2,200 sq. ft.Dwelling $8,191 91%$809 9%$9,000 $8,169 $831 10% Development Type Unit Roadway Fee % of Total Active Modes % of Total Update Total 2023 Total Change % Change Commercial 1,000 sq. ft.$11,045 94%$702 6%$11,747 $9,946 $1,801 18% Office & Other Services 1,000 sq. ft.$6,450 86%$1,075 14%$7,525 $7,327 $198 3% Industrial 1,000 sq. ft.$2,897 75%$944 25%$3,841 $2,365 $1,476 62% Page 136 Item 4. Headline Copy Goes Here 13 CEF: 2023 Study Update (Economic & Planning Systems, Inc.) Residential Unit N'hood Park Comm. Park Fire Police Gen. Gov't Update Total 2023 Total Change % Change up to 700 sq. ft.Dwelling $2,813 $2,140 $604 $382 $745 $6,684 $6,593 $91 1% 701-1,200 sq. ft.Dwelling $4,260 $3,241 $914 $578 $1,129 $10,122 $8,844 $1,278 14% 1,201-1,700 sq. ft.Dwelling $4,783 $3,638 $1,026 $649 $1,267 $11,363 $9,652 $1,711 18% 1,701-2,200 sq. ft.Dwelling $5,145 $3,913 $1,104 $698 $1,363 $12,223 $9,764 $2,459 25% over 2,200 sq. ft.Dwelling $5,848 $4,448 $1,254 $794 $1,549 $13,894 $10,880 $3,014 28% Development Type Unit N'hood Park Comm. Park Fire Police Gen. Gov't Update Total 2023 Total Change % Change Commercial 1,000 sq. ft.$1,281 $811 $1,582 $3,674 $2,791 $883 32% Office and Other Services 1,000 sq. ft.$701 $444 $866 $2,010 $2,791 ($781)-28% Industrial 1,000 sq. ft.$332 $210 $410 $953 $656 $297 45% Page 137 Item 4.