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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/19/2000 - FIRST READING OF ORDINANCE NO. 190, 2000, AMENDING AGENDA ITEM SUMMARY ITEM NUMBER: 26 FORT COLLINS CITY COUNCIL DATE: December 19, 2000 10 STAFF: Matt Baker SUBJECT: First Reading of Ordinance No. 190, 2000, Amending Chapter 7.5 of the City Code Relating to Street Oversizing Capital Expansion Fees. RECOMMENDATION: Staff recommends adoption of the Ordinance on First Reading. FINANCIAL IMPACT: Staff is proposing a recalculation of the Street Oversizing Fee schedule, in order to keep it current with updated information from the Institute of Traffic Engineers, the North Front Range Regional Transportation Plan, and recent updates to the City Master Street Plan. Also included in the recalculation is a 3.1% increase to adjust for inflation. The single family fee will increase from 110 $1480 to $1624 per dwelling unit. Industrial fees will increase on average $0.10 per square foot of building size, from $1.06 to $1.16 per square foot. Retail fees will increase on average $$0.08 per square foot of building size, from $3.95 to $4.03 per square foot. For most types of development, fees will increase.For several categories of development fees will remain the same or decrease.The General Fund contribution will increase from the current $500,000 per year to $550,000 per year. EXECUTIVE SUMMARY: Since the last modifications to the Street Oversizing Program were adopted in 1998, a significant amount of transportation improvements have been constructed. Staff is proposing an increase to the Street Oversizing fee for the following reasons: I. The adopted Mountain Vista Sub Area Plan and Fossil Creek Reservoir Area Plan have added more arterial and collector streets to serve new development. 2. Inflation has increased construction costs by 3.1% over the last two years. 3. Additional funds are necessary to recover costs for outparcel right-of-way, needed for roadway widenings. A recalculation of the Street Oversizing Fee results in an increase of$144 per single family dwelling unit,$0.10 per square foot of industrial use,and$0.08 per square foot of retail use(on average).The following table gives a sampling of the fees under the current and proposed schedules.The complete fee schedule is attached. DATE: December 19, 2000 2 ITEM NUMBER: 26 Current Proposed Single-Family per DU* $1480 $1624 Apartment per DU $ 926 $1041 Lt. Industrial per sq. ft. $ 1.06 $ 1.16 Office per sq. ft. $ 2.47 $ 2.71 Commercial per sq. ft. $ 3.95 $ 4.03 * DU= Dwelling Unit Staff believes this recalculation and fee increase is necessary to account for the recently adopted Mountain Vista Sub-Area Plan and Fossil Creek Reservoir Area Plan, and to keep pace with the inflation of construction costs. The methodology of the Street Oversizing Capital Expansion Fee remains the same; only the calculations have been updated to reflect the revised data. During the Council Study Session for this item,staff was asked to look at the single family housing category of the impact fee. Staff will be gathering information over the next few months to propose a differentiation in fees for different single family housing types. Detailed information can be found in the attached memorandums to the Transportation Board.The Street Oversizing Impact Fee Study Update, dated November 28, 2000, will amend the adopted Street Oversizing Impact Fee Study, July 15, 1997. BACKGROUND: The Street Oversizing Program underwent significant modifications in 1998. These modifications included a fee increase, the addition of alternate modes of transportation (such as transit, walking, and bicycling) and a change in methodology to assess fees based on trip generation. In the two years since the modifications went into effect, the Street Oversizing Program has i constructed many transportation improvements while maintaining its financial stability. The construction of Shields Street from Horsetooth to Harmony, the Drake Road Project at the Centre for Advanced Technology, and the Harmony Road Realignment are three significant Street Oversizing projects which improved arterial street segments with travel lanes,bike lanes,sidewalks, bus stops and landscaped medians.The Program also reimbursed developer projects that improved portions of Overland Trail and Ziegler Road, and completed the Centre Avenue link. The Program has increased the capacity at intersections by adding right turn lanes to mitigate the impacts of new development. In 1999,construction costs remained constant;however,analysis of the current year 2000 costs have shown an inflation increase of 3.1%. In addition to increased costs,two planning studies(Mountain Vista Sub-Area and Fossil Creek Reservoir Area) have made revisions to the City's Master Street Plan and Growth Management Areas. The Street Oversizing Capital Expansion Fee is an impact fee calculated from the amount of improvements needed with new development. When there are significant changes to the amount of transportation improvements needed,such as with the Mountain Vista Sub Area Plan,a recalculation of the fee is indicated. DATE: December 19, 2000 3 ITEM NUMBER: 26 Two other documents used to calculate the Street Oversizing Capital Expansion fee were revised since the original study was completed. First, the North Front Range Regional Transportation Plan was updated with the latest traffic modeling for Fort Collins. Second, the Institute of Traffic Engineers released the 6th Edition of the Trip Generation Manual.Both of these revised documents were included in the recalculation of fees. The Street Oversizing Program continues to be a financially viable program to construct transportation infrastructure in newly developing areas.This recalculation is necessary to update the fee to account for the improvements that the program will be constructing, and to keep pace with inflation. I f I I I i i ORDINANCE NO. 190, 2000 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 7.5 OF THE CODE OF THE CITY OF FORT COLLINS RELATING TO STREET OVERSIZING CAPITAL EXPANSION FEES WHEREAS, the most recent modifications to the City's street oversizing program were adopted in 1998, and subsequent to said time, a significant amount of transportation improvements have been constructed in the city; and WHEREAS,the adoption of the Mountain Vista Subarea Plan and the Fossil Creek Reservoir Area Plan have added more arterial and collector streets in the city to serve new developments; and WHEREAS,inflation has increased construction costs by approximately 3.1%over the past two years; and WHEREAS, additional funds are necessary to recover costs for outparcel right-of-way needed for roadway widenings; and WHEREAS,for the foregoing reasons,the Council has determined that it is necessary,in the interests of the protection of the public health, safety and welfare, that the street oversizing fee be increased. NOW,THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Section 7.5-16 of the Code of the City of Fort Collins shall be amended to read as follows: Sec. 7.5-16. Intent. The provisions of this Article are intended to impose certain fees to be collected at the time of building permit issuance in an amount calculated as shown herein for the purpose of funding the provisions of additional capital improvements as the city'spopulation increases. The imposition of said fees is intended to regulate the use and development of land by ensuring that new growth and development in the city bear a proportionate share of the costs of capital expenditures necessary to provide community park, library, police, fire and general government and trans- portation capital improvements. Said fees shall not be used to collect more than is necessary to fund such capital improvements. The fees provided for in this Article are based on the city's Capital Improvement Expansion Cost Study, dated May 21, 1996,as amended;the city'sStreet Oversizing Impact Fee Study,dated July 15, 1997, }995 updateand Street OversiiinR Impact Fee Study,Update, dated November 28, 2000, as amended; and" e"ITE Trfp`"`fr$z4eta tvie tYlaxuti;t,';6th `Editz t, 1997, . published by the Institute of Traffic Engineers, as amended, which establish a fair and equitable allocation of costs and recognize past and future payments for new development, as well as credits for construction, dedication of land or cash contributions. Funds collected from said fees shall not be used to remedy existing deficiencies, but only to provide new capital improvements which are necessitated by new development.The amount of revenue generated by said fees shall not exceed the cost of providing the capital improvements for which they are imposed, and the same shall be expended solely to provide the specified capital improvements. Section 2. That Section 7.5-19 of the Code of the City of Fort Collins be amended to read as follows: Sec. 7.5-19. Imposition,computation and collection of fees. Payment of the fees imposed under the provisions of this Article shall be required as a condition of approval of all development in the city for which a building permit is required. The amount of such fees has been calculated using current levels of service and the data and methodologies described in Capital Im- provement Expansion Cost Study,dated May 21, 1996,as amended;the city'sStreet Oversizing Impact Fee Study, dated July 15, 1997, e# ld 59aiai i 9ft"Ln, _ . , published by the Institute of Traffic Engineers, as amended.The fees due for such development shall be payable by the feepayer to the Building Permits and Inspector Division Director prior to or at the time of issuance of the first building permit for the property to be developed, unless an agreement has been executed by the city which provides for a different time of payment. If the building permit for which a fee has been paid has expired,and an application for a new building permit is thereafter filed,any amount previously paid for a capital improvement expansion fee and not refunded by the city shall be credited against any additional amount due under the provisions of this Article at the time of application for the new building permit. Section 3. That Section 7.5-32 of the Code of the City of Fort Collins shall be amended as follows: Sec. 7.5-32. Street oversizing capital improvement expansion fee. (a) There is hereby established a street oversizing capital improvement expansion fee which shall be imposed pursuant to the provisions of this Article for the purpose of funding street oversizing improvements related to the provision of transportation services. Such fees shall be payable prior to the issuance of any building permit for a residential, commercial or industrial structure. The amount of such fee shall be determined as follows: 2 Avetag.W,.kd$r Residential er tt tpe, dwelling SF set=tea gas $1,48e-6 i re E).U. 6759 $f;621-96 per)}F3 e:7O $t,348.83perRom Apmbrient 6-12 $9$9-93 pm D.U. Retitement 3736 $51f.62 per${3- 2-t5 $333.33 perms 5.96 $968.66 per9H- hex 3-te $1,i i3.P pens.U. 19*nm ereial f3 tk 32.69 $3-12 P" Sq-Ft.6E-A -5001E 6b 38.65 $3-:75 PerS4.Ft.fah - 266fE 61=Pc 54.59 $5--29 P"S4-Ft-6h - 5ek&EA 9i 65 $6.12 Pm Sq.Ft.E;E; movie Theater 77-79 $' Per S4. Ft. H.94 $1-55 feet S4. Ft. Buy e c 67.06 $4.47-Persq.Ft.. 6om...nent6f6ce 68.93 $6.69 Pet-Sq.Ft. Post E)ffice 86-7s $8.43 per 84.FtBuilding Sfatetiais&umbm . 3666 $2:97-pm Sq.Ft.. SPccialtYRea*l 4668 $3.95 Pm Sq. Ft 71.16 $4-:75 36-19 $3.5 t Per S+ Ft. 268.96 $13.4i P" S4. Ft. 633-F3 $42.i9 Pm Sq.Ft. eal Sales 47.52 $+63 Per Sq. Ft. _I IV i, +33-66 t=T $8,877-56 Per Pump 1e8-e6 tst $',208.?,9 Per Stall SnPerllturket H5.59 $8.38- Pei Sq. Ft. 887-66 $59-21-PcrS4. Ft Famitme-Store d-35 $6.42-PC' 54. Ft. t mrk i 89.95 $i 2.69 Pet S4. Ft orive=h,Bm,k 29 i.i i $19.43- Pet Sq. 1 isti ft ce Building -i i.45 $h 11 Pet S4. i 3 ses Rate. P.i....I Destinations Manufacturing 3:t15 $e:59-Peru-Ft: Warehousing 4sfl $8-74 Pl- 84.Ft. bight Endustrin! 6 94 $1-96 Per Sq.Ft. 3efitti-Wmelrovse z1.61 $0.46 Pa sq-Ft.. Business Park }4 ' $2.t8 Per 84.Ft. senczaf Office —266f£6FA 1}5$ $t :15 Per6q-Ft.6FA 58K 6Frt 16.31 $2`47 Persq-Ft sF�c ---WK sFfc $439 $PerSq-Ft Grfc Reeheational 3f4 fnc $552.f4 Pet Acre Eitp Park 3-.66 Mc $555.22-Per mete 6olffoutsc 6.33me $1,263.66 Pet Acre £lemenrmy-school tB3 istudent W6.25-Per student elmfclysynagogue 97% $F.-17 Pet Sj-Ft. L-ibtary 4530 $6.98 Pet Sq.Ft. ifospitaf f6.69 $2`53 Per S4.Ft. Nulling Home 2-.W/bed $393:99 Per Bed Medical clinic 23.79 $3.61 Per ST Ft. Hvtr Rate k.lationfo, ench it....band m,the pwdact vy'Nu,rbo qf Weekday 1�ip., Ti 0 STREET OVERSIZING CAPITAL EXPANSION FEE SCHEDULE Average Weekday Transportation Vehicle Trips Impact Fee Rate Residential (Per Housine Unit) SF Detached 9.55 $1,624 per D.U. MF and Other Housing 6.59 $1,120 per D.U. Hotel/Motel 8.70 $1,479 per Room Apartment 6.12 $1,041 per D.U. Retirement Community 3.30 $561 per D.U. Assisted Living 4.52 $769 per D.U. Congregate Care Facility 2.15 $366 per D.U. Residential Condominium 5.86 $996 per D.U. Duplex 7.18 $1,221 per D.U. Townhome 5.86 $996 per D.U. Mobile Home 4.92 $837 per D.U. 4 � w V�icte 7'Hps Non=Residential Pee. 0011 Sa.Ft � Cotom/Shop 4111.: enter IQ441 32.09 3$65 $313 4L6,5 $ +1 F#tn �q�itat�"itib 17,14 $I�E'q�SEYt�t 4 719 W 'Phtl 11 i sm R �l5 ffis•. 4 80 $t1 Y F q fit, Dtetrsgt�iti, ter) 30,08 $3${ Per�q t Sit s't k. .. l3owre.m Res rant 13434 $8$ Pek9 Fi Fast"Fact llie5faurant wl Drivemp A9t512 $24,d3' Per Sq.Ft Car Sales 37.50 $3:41t,PGr Sq Ft Service Atatia+ 16$:56!pump $7 410$j le'i;'Puntp Wholesale ltiti°Store 20.3t $2:t!PertSq.Ft S,glf� arli'ast �v5:79/stall $240;Ei2Pcjr:Sta11 Superrnarket Yl 1;51 $7 59,Pe(Sq. t: Convenience" arket 737.99 $3Q69 Per Sq.Ft; Furniture Store 5.06 $0.84 Per Sq.Ft.. Bank 189.95 $7.35 Per Sq.Ft. Drive-In Bank 265.21 $11.03 Per Sq.Ft. Insurance Building 11.45 $1.22 Per Sq.Ft. Manufacturing 3.85 $0.64 Per Sq.Ft. Warehousing 4.96 $0.83 Per Sq.Ft. Light Industrial 6.97 $1.16 Per Sq.Ft. Mini-Warehouse 2.50 $0.42 Per Sq.Ft. Business Park 14.37 $2.39 Per Sq.Ft. General Office 200K GFA 11.54 $1.92 Per Sq.Ft.GFA 50K GFA 16.31 $2.71 Per Sq.Ft.GFA 1OK GFA 24.39 $4.06 Per Sq.Ft.GFA Recreational 3.64/ac $605.59 Per Acre City Park 3.66/ac $608,91 Per Acre Golf Course 5.04/ac $838150 Per Acre Elementary School 1.02/student $169.70 Per Student Church/Synagogue 9.11 $1.52 Per Sq.Ft. • Library 54.00 $8.98 Per Sq.Ft. 5 SIM $525�Pa, i - M icit inic iteirk bqid ' t�th -'04CUO U"0"" fw, �rb PSI Tt d, ,W "" (N�tor,and z Yw Pays,, -aclxuttm-hk_ Wil w.ten Introduced and considered favorably on first reading and ordered published this 19th of December, 2000, and to be presented for final passage on the 2nd day of January, A.D. 2001. Mayor ATTEST: City Clerk Passed and adopted on final reading this 2nd day of January, A.D. 2001. Mayor ATTEST: City Clerk 6 Transportation Services a Engineering Department 4 City of Fort Collins TO: Transportation Board 01� THRU: Ron Phillips, Executive Director of Transportation Servic Gary Diede, Director of Traffic Operations Cam McNair, City Engineer } W n FROM: Matt Baker, Street Oversizing Program Manager) ` DATE: October 17, 2000 RE: Street Oversizing Fee Update The Street Oversizing fee schedule underwent significant revisions in 1998. These revisions included: • Increase of fees to recover costs of the newly adopted Street Standards. • Inclusion of all modes of transportation. • Use of trip generation as a more equitable way to allocate fees. Since the revisions were adopted in 1998, the Street Oversizing Program has constructed 19 lane miles of roadway, including 51 auxiliary turn lanes; 2.3 miles of landscaped medians; 14.9 miles of bike lanes; 6.4 miles of sidewalks; 17 enhanced crosswalks; 7 bus pads (3 with shelters); and 18 traffic signals or signal upgrades. In addition, several major street segments are slated to be improved with development over the next two years. The Street Oversizing Program has begun the implementation of the City Plan vision to make choices for transportation a real possibility. Over the past year, there have been planning efforts that have made significant changes to the City's proposed transportation network. The Mountain Vista Sub-Area Plan, adopted in 1999, set policies and zoning for the Northeast area of the City. Included were 281 North College Avenue • P.O. Box 580 • Fort Collins, CO 80522-0580 • (970) 221-6605 • FAX (970) 221-b378 •.vwwv.ci.fort-collinsxo.us revisions of the City's Master Street Plan that laid out a modified grid system of collector and arterial streets. The Fossil Creek Reservoir Area Plan was ajoint City/County planning effort that resulted in 4,300 acres of unincorporated Latimer County being included in the City's Urban Growth Area. These two planning efforts, as well as other Master Street Plan changes, such as the realignment of Vine Drive between College Avenue and Lemay Avenue, indicate the need for a slight recalculation of the Street Oversizing fee. Proposed Fee Modifications Staff is proposing a recalculation of the Street Oversizing Fee using the following data: • Inclusion of the Mountain Vista and Fossil Creek Reservoir Area Plans • Inflation of construction costs • Addition of expenditures for out-parcel right of way These items will increase the Street Oversizing Fee $144.00 per single family dwelling unit, and adjust the industrial and retail fee rates by minus $0.16 to plus $0.24 per square foot. Mountain Vista Sub Area The recently adopted Mountain Vista Sub Area Plan set policies and land use for the Northeast Area of the City. The transportation element of the plan envisions a modified grid system of streets to provide connectivity. The major entryways are Mountain Vista from the East, Timberline from the South, and Vine Drive from the West. A realignment of Mountain Vista and Timberline is proposed in the area of the activity center. The rest of the street network would be minor(2-lane) arterials and collector streets. The Mountain Vista Sub Area Plan made significant changes to the Master Street Plan in this area. 2 The number of lane miles increased in the Mountain Vista Sub Area from 46.6 to 116.3 lane miles. This increase in the amount of streets, bike lanes, and sidewalks necessary to serve the area results in an increase to the Street Oversizing fees. Fossil Creek Reservoir Area In 1999, The City of Fort Collins and Larimer County adopted the Fossil Creek Reservoir Area Plan, which expanded the boundaries of the City's Growth Management Area. The transportation element of the plan did not significantly change the street classifications. The lower densities are expected in this area because of the large lake and surrounding natural areas. The Fossil Creek Reservoir Area would actually lower the Street Oversizing fees, due to the addition of developable land subject to the collection of fees, without a significant increase in the lane miles of oversized streets. The number of lane miles stays constant in the Fossil Creek Reservoir Plan area, 78.8 before, and 79.4 after. Inflation of Construction Costs The Consumer Price Index (CPI) is an indicator of inflation across a broad spectrum of the consume market. There is a more specialized inflation indicator for construction materials and labor costs published by the Engineering News Record (ENR) for the Denver region. In addition, staff tracks unit expenditures on roadway construction projects, including projects with Street Oversizing Program participation. The Street Oversizing Program has enjoyed relatively constant street construction costs over the last few years, even with a slight material price increase for concrete. However, staff has seen price increases in asphalt materials this year due to the high oil prices encountered last summer and has been notified of future increases in 2001. The increase to the fee for inflation of construction costs is 3.1 percent, which is consistent with the ENR Construction Cost Index. Landscaped medians were adopted as an element of the City Arterial Street Standard in • 1996 and have been included in Street Oversizing construction projects since 1997. The 3 City Parks and Recreation Department, which maintains the medians, CDOT, which has jurisdiction over the State Highway System, and the City Engineering Department, have all made revisions to the landscaped median standards. These revisions have added significant costs to the construction of landscaped medians. Two of the revisions with the most impact on construction costs are irrigation taps and a subdrain/liner system. 1. The Parks Department is adapting new development standards for median landscaping construction, specifying spray or bubbler irrigation systems. Because spray type systems are less tolerant of pressure drops to maintaining efficiency, additional water taps are needed to irrigate landscaped medians. Approximately seven taps per mile of median are indicated with spray systems, versus three taps previously used. This has increased costs approximately $40,000 per mile for tap fees and installation. 2. The City Engineering Department and Colorado Department of Transportation have expressed concerns over irrigated medians saturating roadway foundations, leading to premature pavement failures.New requirements include plastic or rubber liners to keep water from migrating out of the median area, and subdrain systems to collect excess water from the median and carry it underneath the roadway into existing storm water systems. Staff estimates these requirements to add an additional $60,000 per mile of landscaped medians. Traffic signal costs have also risen dramatically over the last few years. New technology such as LED light heads, high-speed controller circuits, pedestrian push buttons in medians, and video traffic detection have increased safety, reliability, and operational efficiency. However, average costs have risen from $60,000 to $80,000 per signalized intersection. Staff is proposing that the Street Oversizing Capital Expansion Fee be increased to recover the inflation of construction costs as noted above. 4 Out-Parcel Right of Way (ROW) As the City grows, there are areas annexed into the City that were previously developed, usually as single family residences fronting the arterial street. In addition, there are county developments enclaved and force annexed into the City, which did not dedicate ROW or improve the arterial street frontage. In many cases, the responsibility for ROW and improvement becomes a City Capital Project, using sales tax funding. Under current ordinances and impact fee legislation, this is the proper method of correcting existing deficiencies. However, there are certain instances where the impacts of new development require the acquisition of ROW from existing out-parcels. To the extent possible, development should contribute for its impacts for ROW acquisition costs. Staff is proposing an increase to the Street Oversizing Capital Expansion Fee to include a minor level of out-parcel ROW acquisition. Citv General Fund Contribution to the Street Oversizing Fund The City's Street Oversizing Program is an impact fee program that assigns transportation costs to development based on trip generation. There is a certain portion of these transportation costs, which are not attributable to new development. These are "pass-by" trips or existing background traffic from existing residents. With any increase in development impact fees, there must be a corresponding increase in the City's General Fund contribution to maintain proportionality. Currently the City contributes $500,000 per year to the Street Oversizing Fund. This contribution is calculated to rise to $550,000 per year with the adoption of the currently proposed Street Oversizing Capital Expansion Fee increase. Adding it All Up Staff has recalculated the Street Oversizing Capital Expansion Fee based on the change to the Master Street Plan from the Mountain Vista and Fossil Creek Reservoir Areas, Out- Parcel ROW, and the inflation of construction costs used to construct City roadways. A partial comparison of fee rates is as follows: 5 Current Fee Proposed Fee Single Family $1,480 per Dwelling Unit $1,624 per Dwelling Unit Multi Family $1,021 per Dwelling Unit $1,121 per Dwelling Unit Light Industrial $1.06 per sq. foot $1.16 per sq. foot General Office 200K Gross Floor Area $1.75 per sq. foot $1.92 per sq. foot 50K Gross Floor Area $2.47 per sq. foot $2.71 per sq. foot IOK Gross Floor Area $3.70 per sq. foot $4.06 per sq. foot Shopping Center Retail IOOOK Gross Floor Area $3.12 per sq. foot $2.98 per sq. foot 500K Gross Floor Area $3.75 per sq. foot $3.59 per sq. foot 200K Gross Floor Area $5.29 per sq. foot $5.06 per sq. foot 50K Gross Floor Area $6.12 per sq. foot $6.24 per sq. foot City's GF Contribution $500,000 per year $550,000 per year In recalculating the fee, Staff has included the 1999 update to the Northern Front Range Regional Transportation Plan, ITE Trip Generation 6`h Edition, and Hitchens, (ITE Compendium). These updates contain the latest data available for Fort Collins, and more accurately reflect development projects for certain land uses. However, they have minimal effect on the fee rates calculated. Trip adjustment factors were analyzed to assess "pass by" and diverted-link trips for commercial and neighborhood retail, mixed use buildings, and daycare centers. The result was a slightly lower trip adjustment factor for most retail uses. Summary Staff is recommending an increase in the Street Oversizing Capital Expansion Fee to reflect recently adopted Master Plan changes to developing areas, Out-Parcel ROW, and for the inflation of construction costs. This is in keeping with the City of Fort Collins' policy to require new development to pay for growth related impacts on public facilities. 6 Impact fees are one-time payments that fund the development or expansion of public facilities needed to accommodate new development. The intent is for new development to pay for its "proportional share" of the capital costs of additional infrastructure capacity. Impact fees may not be used to correct existing deficiencies in public facilities. Impact fees cannot be used to fund operating costs. Impact fees can be imposed without a vote of the people, but are subject to legal standards of proportionality. The Street Oversizing Program has been a successful implementation of an impact fee program in Fort Collins. Since its implementation in 1979, over 47 miles of the Arterial and Collector street network in Fort Collins have been improved through the program, having a value of 43.6 million dollars. The Street Oversizing Program has been a viable funding option to improve street infrastructure with new development. • 7 Transportation Services Engineering Department 44a City of Fort Collins TO: Transportation Board THRU: Ron Phillips, Executive Director of Transportation Service Gary Diede, Director of Traffic Operations Cam McNair, City Engineer /}Am FROM: Matt Baker, Street Oversizing Program Manager/}t,� ,/ I DATE: October 17, 2000 RE: Questions and Answers on the Street Oversizing Program Update Issues about the proposed update to the Street Oversizing Capital Expansion Fee are presented in question and answer format. It has been two years since the Street Oversizing Fees were last increased. Why . wasn't there an inflation adjustment in 1999? Staff analyzed the cost and inflation indicators last year. Even though there were increases in certain construction materials, such as concrete, 1999 street construction costs remained constant. The Street Oversizing Program implemented several cost saving measures. One strategy was to combine several developments into one roadway construction project. This minimizes the impact of multiple construction periods on the travelling public and has realized significant cost savings due to economies of scale. Another successful strategy was to fully close an arterial roadway during the construction period. In certain locations having adequate detour routes, full roadway closures for construction can save 30% to 40% over the cost of working under traffic conditions. And finally.. active management of projects by the Street Oversizing Program rather than passive inspection and acceptance has resulted in all Street Oversizing Projects over the last two years being completed ahead of schedule and 5% to 15% under budget. The result vas that street construction costs for the Street Oversizing Program did not increase in 1999 and is showing a modest (3.1%) increase in the year 2000. Is the inflation increase to the Street Oversizing Fee based on the Consumer Price Index (CPI)? No. The CPI is based on a broad range of consumer goods, which does not accurately reflect the inflation in street construction costs. In fact, the CPI is higher than the rise in construction prices. There are other indicators that are much more representative, such as the Denver Regional Construction Cost Index, published by the Engineering News 281 North College Avenue • P.O. Box 580 • Fort Collins, CO 80522-0580 • (970) 221-6605 • FAX (970) 221-b378 wwwo.fort-collins.co.us Record (ENR). In addition, staff tracks unit costs on all Street Oversizing projects. Staff uses a combination of the ENR and actual Fort Collins street construction costs to determine the inflation factor adjustments needed. Have alternative sources of funding been considered? There are limited options on alternative funding for arterial street improvements with development. Although development excise and other taxes have been considered, current City goals and objectives indicate development impact fees as the preferred method to finance public facilities for new development. These goals and objectives are articulated in the City Comprehensive Plan. An important philosophy in the City Comprehensive Plan is that new development's proportionate share of street improvements be reasonable and equitable. Staff believes that basing a new development's share on the trip generation formula more equitably distributes the costs of transportation improvements. The City needs to take the"all modes" concept seriously. The Street Oversizing Program will make "all modes" capital improvements related to new development but will not correct existing deficiencies in other travel modes. The City has other programs such as the Capital Improvements Program and the Pedestrian Access Program to address such deficiencies. More funds should go toward transit. How will the impact fee increase affect transit? A portion of the impact fee collected is used for construction of bus pull-outs and shelters on new arterial streets. Another portion will be used to help purchase buses and pay other capital costs necessary to extend transit to newly developed areas. Will an increase in the Street Oversizing fees deter commercial stores from building where the new neighborhoods are? This would not promote the idea of neighborhood commercial that the City Plan states. The slight increase to the Street Oversizing Fees is necessary to recover the costs of transportation infrastructure of the adopted City Plan and the new Street Standards. A neighborhood commercial store is convenient to the neighborhood with transit stops, pedestrian pathways and bicycle corridors allowing residents a choice of travel alternatives. The update to the Street Oversizing Program has modified the trip adjustment factors used for both neighborhood commercial retail and service uses. Because neighborhood uses have much smaller market area, a higher amount of pass by and diverted link trips is justified. This results in slightly lower neighborhood commercial fees. This fee increase could be supported more easily if it were more than just new development paying. The increase in traffic is not solely due to new development. The methodology of the Street Oversizing Capital Expansion Fee calculates the impact of new development based on the increase in traffic attributable to new development. There is also a traffic increase due to"travel behavior" which is attributable to existing residents driving more and making longer trips. This portion of the cost of improvements has never been included in the Street Oversizing Capital Expansion Fee calculations. Instead, it is paid for by an annual contribution from the City's General Fund to the Street Oversizing Fund. This annual General Fund contribution also needs to increase from $500,000 to $550,000 per year to cover costs. A supplemental budget request for this increase has been submitted by staff for Council consideration. It is not just new development paying, but everyone paying their fair share. Has it been considered to adjust the fees based on the distance new development is from the City center? Staff looked at adjusting the fees based on vehicle miles traveled by existing residents. This type of fee adjustment is better suited to larger cities where the infrastructure is complete. The City of Fort Collins' core infrastructure has not yet been completed, so the methodology chosen for the modified program (projected trip generation of new development) is better suited to a growing city like Fort Collins. Existing elements of the Street Oversizing Program, such as the criteria for participation in oversizing streets, is one of the City's primary methods for discouraging leap-frog development. This policy requires that streets needed to serve new development be constructed or paid for at the time building permits are issued. It also tries to avoid the chronic congestion of streets resulting from development approval issued without regard to the availability of traffic capacity. This policy, along with Adequate Public Facilities (APF) ordinances, zoning and open space acquisition can be effective tools in achieving land use objectives. When distinguishing fee categories, is it possible to distinguish affordable housing from others? Basing the fee calculation on trip generation does not distinguish affordable housing from other types. Affordable housing units constructed by the Fort Collins Housing Authority are exempt from Street Oversizing Fees. There is a provision to defer the payment of Street Oversizing Fees from building permit to Certificate of Occupancy issuance for affordable housing units, but this only helps with a builders cash flow, not relieve any fee payments. Is there a way for development to minimize the fee through innovation in reducing • vehicle trips or instituting Transportation Demand Management (TDM) programs? Any capital improvements of a TDM program that are included in the Street Oversizing Program can be directly credited against any Street Oversizing fees due for a particular development project. For instance, any bus stops, additional transit routes, pedestrian ways or bikeways built with the development to encourage alternative transportation can be credited against Street Oversizing fees. Transportation Services �l Engineering Department City of Fort Collins Street Oversizing Impact Fee Study Update City of Fort Collins Transportation Service Area Engineering Department November 28, 2000 281 North College Avenue • P.O. Box 580 • Fort Collins,CO 80=-0580 • (970) 331-v605 • FAX (970) 2=1-6378 wWw.ci.fort-collins.co.us Street Oversizing Impact Fee Study City of Fort Collins Engineering November 28, 2000 Purpose of This Study The adoption of significant changes to the City's Master Street Plan with the Mountain Vista Sub-Area Plan and the recent expansion of the City's growth management area into the Fossil Creek Reservoir Area indicate a need to recalculate the transportation improvements required with new development. In addition, the Street Oversizing Fee needs to be adjusted for slight construction cost increases, as well as for acquisition of rights-of-way where needed to complete continuous road segments (i.e., county out-parcels). And finally, some of the underlying data used in the original impact fee study has undergone recent revisions, including a new edition of the Institute of Traffic Engineers' Trip Generation Manual, and an update of the Northern Front Range Regional Transportation Plan. These should be included in the impact fee model to more accurately reflect the proportion of costs. The purpose of this update is to recalculate the Street Oversizing Capital Expansion Fee with the most recent data available, to adequately capture the actual costs of the Street Oversizing Program. General Methodology Staff has evaluated the methodology used in the July 15, 1997 Street Oversizing Impact Fee study (attached), and finds it appropriate. It acknowledges the functional transportation capacity created by multi-modal improvements (e.g. bike lanes and transit) in transportation infrastructure needed to serve new development. Street Oversizing Capital Expansion Fee The estimated costs to complete the arterial and collector street network (including bike lanes and pedestrian ways) have been revised to correspond with the latest update to the Master Street Plan (March 21, 2000). Significant revisions to the Master Street Plan since the original fee study include the Mountain Vista Sub-Area, Fossil Creek Reservoir Area, and the realignment of Vine Drive at College Avenue. The infrastructure costs include streets, bus bays and shelters, commuter bicycle lanes, sidewalks and ADA ramps, and other improvements that increase the modal capability of the street into a transportation corridor. Inflation of construction costs since the original study was included in the revised estimates. Trip rates were revised according to the Street Oversizing Impact Fee Study City of Fort Collins Engineering November 28, 2000 . latest edition of the manual titled Trip Generation (6"), published by the Institute of Traffic Engineers. Trip adjustment factors were looked at to more accurately assess "pass by" and directed link trips for commercial neighborhood retail, mixed use buildings, and daycare centers. Primary trip factors for shopping centers, drive-in banks, fast food restaurants and convenience stores are from the ITE manual. Daycare center primary trip factor from Hitchens, ITE Comperdium. Primary trip factors for other retail uses interpolated by market area. The result was a slightly lower trip adjustment factor for these uses based on the ITE formula less 10% for diverted link trips. All other studies and adopted plans used in the original Street Oversizing Impact Fee Study remain unchanged. This update revises the following attachments to the July 15, 1997 Street Oversizing Impact Fee Study. List of Attachments: Replace Street Oversizing Impact Fee Study, July 15, 1997, attachments with the following revisions: 1. Street Oversizing Capital Expansion Fee Calculation: Projection for Growth- Related Transportation Costs and Calculation of Cost per Trip Capacity. 2. Street Oversizing Capital Expansion Fee Schedule. 13. List of future out-parcel right-of-way acquisitions. Street Oversizing Capital Expansion Fee: Projection of Transportation Costs to the Year 2015 Trans ortation Projects Needed Sol el to Serve New De o ment Local Access Portion (Developer Attributable to Responsibility) Changed Travel Impact Fee 2015 Total Behavior . Portion Street Construction $184,334,637 $71,890,509 $28,111,032 $84,333,097 Bicycle Lanes $17,381,483 $6,778,778 $2,650,676 $7,952,028 Pedestrian Facilities $14,740,710 $11,792,568 $737,036 $2,211,107 Grade Separations $8,670,000 $2,167,500 $6,502,500 Transit $7,806,095 $1,951,524 $5,854,571 Outparcel ROW $2,559,150 $1,279,575 $1,279,575 TOTAL $235,492,075 $90,461,855 $36,897,343 1 $108,132,878 Tri2 Increase 442,614 110,653 331,961 Subtotal Cost Per Trip Capacity $326 Transportation Costs Attributable to LOS Increase* Transit Level of Service Increase $9,540,783 Bike/Pedestrian LOS Increase $11,370,000 Neighborhood traffic mitigation $2,280,000 Credit for Sales Tax ($14,418,000) TOTAL $8,772,783 Total Projected Vehicle Trips 1,224,972 Average Cost Per Trip (8,772.783 divided by 1,224,972)= $7 Total Cost per Unit of Trip Capacity $333 *Note: The only portion of the LOS cost increase that is included in the fee calculations is that portion attributable to the impacts of new development. Transportation Impact Fee Schedule Trip Adjustment Factors Residential 0.511 Comm/Shop Ctr 0.32 Other Non Residential 0.5 Neighborhood Service 0.125 Neighborhood Mixed Use 0.22 Cost Per Unit Of Trip Capacity $332.74 Average Weekday Transportation Vehicle Trips Impact Fee Rate Residential .Per Housina Unit SF Detached 9.55 $1,624 per D.0 MF and Other Housing 6.59 $1,120 per D.0 Hotel/Motel 8.70 $1,479 per Room Apartment 6.12 $1,041 per D.0 Retirement Community 3.30 $561 per D.0 Assisted Living 4.52 $769 per D.0 Congregate Care Facility 2.15 $366 per D.0 Residential Condominium 5.86 $996 per D.0 Duplex 7.18 $1,221 per D.0 Townhome 5.86 $996 per D.0 Mobile Home 4.92 $83737 per D.0 Average Weekday Vehicle Trips Non Residential Per 1,000 Sa.Ft. Comm/Shopping Center 1000K GLA 32.09 $3.18 Per Sq. Ft. 500K GLA 38.65 $3.83 Per Sq. Ft. 200K GLA 54.50 $5.40 Per Sq. Ft. 50K GLA 91.65 $6.24 Per Sq. Ft. Movie Theater 77.79 $7.70 Per Sq. Ft. Fitness/Racquet Club 17.14 $1.83 Per Sq. Ft. Day Care 79.26 $3.30 Per Sq. Ft. Government Office 68.93 $7.34 Per Sq. Ft. Post Office 86.78 $9.24 Per Sq. Ft. Building Materials/Lumber 39.71 $3.93 Per Sq. Ft. Specialty Retail 40.68 $4.03 Per Sq. Ft. Discount Club 41.80 $4.14 Per Sq. Ft. Nursery(Garden Center) 36.08 $3.84 Per Sq. Ft. Sit Down Restaurant 130.34 $8.87 Per Sq. Ft. Fast Food Restaurant w/Driveup 496.12 $20.63 Per Sq. Ft. Car Sales 37.50 $3.99 Per Sq. Ft. Service Station 168.56 /pump $7,010.83 Per Pump Wholesale Tire Store 20.36 $2.17 Per Sq. Ft. . Self Service Car Wash 5.79 /stall $240.82 Per Stall Supermarket 111.51 $7.59 Per Sq. Ft. Page 1 Convenience Market 737.99 $30.69 Per Sq. Ft. Furniture Store 5.06 $0.84 Per Sq. Ft. Bank 189.95 $7.35 Per Sq. Ft. Drive-In Bank 265.21 $11.03 Per Sq. Ft. Insurance Building 11.45 $1.22 Per Sq. Ft. Manufacturing 3.85 $0.64 Per Sq. Ft. Warehousing 4.96 $0.83 Per Sq. Ft. Light Industrial 6.97 $1.16 Per Sq. Ft. Mini-Warehouse 2.50 $0.42 Per Sq. Ft. Business Park 14.37 $2.39 Per Sq. Ft. General Office 200K GFA 11.54 $1.92 Per Sq. Ft. 50K GFA 16.31 $2.71 Per Sq. Ft. 10K GFA 24.39 $4.06 Per Sq. Ft. Recreational 3.64 /ac $605.59 Per Acre City Park 3.66 /ac $608.91 Per Acre Golf Course 5.04 lac $838.50 Per Acre Elementary School 1.02 /student $169.70 Per Student Church/Synagogue 9.11 $1.52 Per Sq. Ft. Library 54.00 $8.98 Per Sq. Ft. Hospital 16.78 $2.79 Per Sq. Ft. Nursing Home 2.60 /bed $432.06 Per Bed Medical Clinic 31.45 $5.23 Per Sq. Ft. *Note:Rate calculation for each item based on the product of Number of Weekay Trips, Trip Adjustmer Factor, and Cost Per Unit of Trip. Page 2 OutyarceI ROW DRAKE ROAD between Overland Trail and Taft Hill 5 county parcels on South side 1 county outparcel on North side at Overland and Drake HORSETOOTH between Overland Trail and Taft Hill Horse farm on North side 13 lots on South side at Imperial Estates TAFT HILL South of Harmony Realignment West Side at subdivision(Taft Canyon) 5 lots on West side Old County dump Open space areas HARMONY ROAD between College and Shields 4 lots on South side F.R.C.C. HARMONY ROAD between Shields and Taft Hill . The Ridge Comer property TIMBERLINE ROAD Horsetooth to Harmonv 7 lots on West side TRILBY ROAD between Lemay and Shields 8 lots on South side (including trailer park) 18 lots on North side LEMAY North of Mulberry 5 county subdivisions Realignment of Lemay ZIEGLER ROAD Drake to CR36 4 lots West Side 1 county subdivision and 2 lots East Side ELIZABETH Taft to Overland 9 lots North side SHIELDS STREET Harmonv to Fossil Creek 3 lots West Side Natural area