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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 10/03/2006 - SECOND READING OF ORDINANCE NO. 150, 2006, AUTHORI ITEM NUMBER: 30 AGENDA ITEM SUMMARY DATE: October 3, 2006 FORT COLLINS CITY COUNCIL STAFF: Ann Turnquist SUBJECT Second Reading of Ordinance No. 150, 2006, Authorizing Amendments to the Intergovernmental Agreements Between the City and Poudre School District and Thompson School District Pertaining to the Land Dedication and In-Lieu Fee Requirements Contained in Such Agreements. RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. EXECUTIVE SUMMARY Since 1998, the City of Fort Collins has collected a fee-in-lieu of land dedication for both Poudre School District and Thompson School District. These fees allow a residential developer to pay a school site fee to the School Districts rather than to dedicate a parcel of land to the District for development of future schools. The ability of the school districts to require land dedication is provided under State of Colorado Statute. The last time the amount of these fees was adjusted was in 2001. This Ordinance, adopted on First Reading on September 19,2006 by a vote of 6-1 (Nays: Brown), changes the amount of the fees for each district and also modifies the fee structure to reduce the cost in payments for larger, multi- family developments. The school districts requested a substantial increase to the fees in reaction to substantial increases in the cost of securing appropriate school sites. The Ordinance was amended on First Reading to phase in the fee increase for the Poudre School District. The first increase will take place on January 1, 2007 and increase the fee to $1200 per dwelling unit. The second increase to $1800 per dwelling unit will occur on January 1, 2008. ITEM NUMBER: 27 AGENDA ITEM SUMMARY DATE: September 19, 2006 FORT COLLINS CITY COUNCIL STAFF: Ann Turnquist SUBJECT First Reading of Ordinance No. 150, 2006, Authorizing Amendments to the Intergovernmental Agreements Between the City and Poudre School District and Thompson School District Pertaining to the Land Dedication and In-Lieu Fee Requirements Contained in Such Agreements. RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. FINANCIAL IMPACT The proposed ordinance will n ave" ci ' fel -C. of Fort Collins because the fees will be collected on behalf of dre an om l cts. Revenues from the fees will pass through City accounts an ill t ect te li 'ts under Article X, Section 20. EXECUTIVE SUMMARY Since 1998, the City of Fort Collins has collected a fee-in-lieu of land dedication for both Poudre School District and Thompson School District. These fees allow a residential developer to pay a school site fee to the School Districts rather than to dedicate a parcel of land to the District for development of future schools. The ability of the school districts to require land dedication is provided under State of Colorado Statute. The last time the amount of these fees was adjusted was in 2001. This ordinance will change the amount of the fees for each district and also modifies the fee structure to reduce the cost in payments for larger, multi-family develo(mes. The§chool districts requested a substantial increase to the fees in reaction to substantial i Ch7e)tr,n ypriate school sites. BACKGROUND In April, 1998, the City of Fort Collins and Thompson and Poudre School Districts entered into Intergovernmental Agreements regarding land dedication for new developments, including a provision for fees-in-lieu of land dedication. This system of land dedication and fees-in-lieu of dedication has been in place for eight years, and is now in need of review. The school districts have asked that the amount of the fees be increased to reflect both the increasing cost of land and revised September 19, 2006 -2- Item No. 27 school site standards. The Districts have also asked to modify the structure of the fees to create fee categories for one to four residential units and five or more residential units. Fees are based on a number oCof i s s' siz student population projections, enrollment capacities of each t 1(el i gh and high schools),and the cost of developed land within the s t. 1 e same ctors are included for both Poudre and Thompson Districts,the ree c ati e diff t because each of the input factors are different between the districts. Site sizes and enrollment capacities are set by School District policy and the cost of developed land is somewhat lower within the Thompson School District boundaries than in the Poudre School District boundaries. The effect of the proposed change in per dwelling unit costs would be as follows: Poudre School District: Fee per dwelling unit: Current Fee 2007 Fee 1-4 attached dwelling units $763 $1,800 5 or more attached dwelling units $763 $ 900 Thompson School District �� Pi Fee per dwelling unit: 0 C rrent Fee 2007 Fee 1-4 attached dwelling units $688 $1,342 5 or more attached dwelling units $688 $946 The City's Intergovernmental Agreements with Poudre School District and Thompson School District allow for periodic updates to the fees and land dedication requirements. The agreements also require that the City conduct a public hearing prior to any changes in the fee or land requirement. Each of the School Boards has reviewed its methodology for this program and requested that the City Council approve these revisions. The detailed methodology for calculating the fees are provided in Exhibits A and B of the Ordinance. The increases to the fees are substantial and reflect the significant growth in land costs and the cost of infrastructure and construction of utilities over the past five years. Both School Districts have acknowledged that such a signifi tcre feP ira both because of the impact on builders who need predictable osts ah a to u e School Districts for failing to capture the increased cost of a uiring s ools' dis is have committed to updating the fees on a more regular basis in future uind f construction costs to make fee increases more predictable. COMMUNITY INPUT: Over the past several months,the School Districts have worked with the Homebuilders Association (HBA) to review the proposed fee structure and seek opportunities to minimize the impact of a substantial fee increase on residential builders within Larimer County. Issues with the fee have been . ....._. ._ _. .__ September 19, 2006 -3- Item No. 27 raised by the HBA as the school districts have sought to increase the fees in Fort Collins, Loveland, and Larimer County and to institute the fee for the first time in the Town of Wellington. The HBA opposes the fees for several reasons,including its belief that the fees are calculated inappropriately, that the school districts have rtion 0 n t they should consider selling before assessing a fee-in-lier land a ns that the size of school sites is inappropriate. A detailed des e H oncerns included in Attachment 1. Poudre and Thompson School Districts have both worked to address the concerns of the HBA. They have reviewed the methodology used for developing the fees and outlined the authority that their respective elected School Boards have regarding policies for school site sizes and class sizes. Poudre School District has offered to phase-in its fee increase over twelve months, with an increase to $1,200 effective for the next year, and the final increase to$1,800 a year later. The HBA stated that it couldn't support an increase to the $1,800 level, even with a phased in approach, therefore PSD is asking City Council to approve the fee increase to $1,800 effective 90 days after the adoption of the IGA amendments (January 1, 2007). Written responses to the specific concerns of the HBA from both Poudre and Thompson School Districts are included as Attachment 2 and 3. In addition to the Districts' work with the Homebuilders Association, Thompson School District staff met with several of the or d per a e uY thin the District boundaries to develop cost estimates for IanThese iscus n lculation of the cost of future school site acquisitions. Both is ' s ave so reseroposed amendments to their respective School Boards at a pub is meeting and have received Board approval for the changes to the Payment-in-Lieu of Land dedication fee schedule. Thompson School District has encouraged a member of the HBA to volunteer to participate on its existing community task force which is charged with reviewing the districts methodologies and calculations so that the HBA can have input on this issue in future years. ATTACHMENTS 1. Letter from the Home Builders Association of Northern Colorado to Poudre School District and Thompson School District, dated August 11, 2006. 2. Letter from Poudre ScCSchool ct to a Home Builders Association of Northern Colorado, dated August 16, 2006 3. Letter from Thompso istric o om uilders Association of Northern Colorado, dated Septe20 ORDINANCE NO. 150, 2006 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING AMENDMENTS TO THE INTERGOVERNMENTAL AGREEMENTS BETWEEN THE CITY AND POUDRE SCHOOL DISTRICT AND THOMPSON SCHOOL DISTRICT PERTAINING TO THE LAND DEDICATION AND IN-LIEU FEE REQUIREMENTS CONTAINED IN SUCH AGREEMENTS WHEREAS, on April 21, 1998, the City entered into an intergovernmental agreement with the Poudre School District, which agreement provides for the dedication of land by developers in the City to said school district for the construction of new schools needed to offset the impacts of their development, or, in the alternative, for the payment of a fee in-lieu of such dedication; and WHEREAS,on April 21, 1998,the City entered into a similar intergovernmental agreement with the Thompson School District; and WHEREAS,these agreements are collectively referred to below as the"School Agreements;" and WHEREAS,the requirements imposed upon developers pursuant to the School Agreements have been embodied in the Chapter 7.5 of the City Code; and WHEREAS, Section 7.5-48(d)of the City Code states, in essence,that the amount of the in- lieu fee to be paid by developers is to be established by the School Agreements and is to be equal to the fair market value of the property that could otherwise be required to be reserved for future dedication to the school district; and WHEREAS, Section 7.5-51(b)of the City Code calls for review by the City Council,at least every two years,of the land dedication and in-lieu fee schedule requirements attached to the School Agreements as Exhibit "A" (pertaining to school district planning standards) and Exhibit "B" (methodology for calculating the in-lieu fee); and WHEREAS, Section 1 of each of the School Agreements states that the school planning standards(Exhibit"A")should be reviewed annually by the school district and the City and adjusted by mutual agreement as needed,and paragraph 5(a)of such agreements states that both the standards and methodology are to be updated annually; and WHEREAS, both of the School Agreements, as well as Section 7.5-51(b)of the City Code, require that a public hearing be held by the City before any changes in the amount of the in-lieu fee; and WHEREAS,both the Poudre School District and the Thompson School District have adopted proposed revisions to Exhibits "A" and "B" to their respective agreements with the City and have requested that the City Council approve the same; and WHEREAS,after a public hearing regarding the proposed changes,the City Council believes that the proposed revisions to said Exhibits "A" and "B" are in the best interests of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the amendments to Exhibits "A" and "B" of the Poudre School District Agreement, as shown on Attachment 1, attached hereto and incorporated herein by this reference, are hereby approved by the City Council. Section 2. That the amendments to Exhibits "A" and "B" of the Thompson School District Agreement, as shown on Attachment 2, attached hereto and incorporated herein by this reference, are hereby approved by the City Council. Section3. That the Mayor is hereby authorized to execute,onbehalf of the City, addenda to the School Agreements reflecting the amendments authorized by this Ordinance. Introduced, considered favorably on first reading, and ordered published this 19th day of September, A.D. 2006, and to be presented for final passage on 3rd day of October, A 006. i May r ATTEST: City Clerk Passed and adopted on final reading on the 3rd day of October, A.D. 2006. Mayor ATTEST: City Clerk Attachment 1 Page 1 of 2 Exhibit A Poudre School District School District Planning Standards i. Student Yield Per Dwelling Unit Category A Category B I to 4 attached S or more attached dwelling units dwelling units Elementary School 0.35 %2 Category A Middle School 0.10 %2 Category A High School 0.09 /2 Categor A Total 0.54 students 'h Category A ii. School Facility Enrollment Capacities Elementary School 525 students Junior High School 750 students High School 1,800 students iii. School Site Acreage Requirements' Elementary School 15 acres Middle School 30 acres High School 80 acres iv. Developed Land Value for 20063 $100,000 'A ver-age student yields for elementary,junior high school,and high school based on information collected by Western Demographics, Inc. Includes all residential dwelling types within the School District. 'Based on Poudre School District.Site Selection Criteria. Average land value based on report prepared by Shannon and Associates dated March 14, 2006. Adjustments to occur every l years in the even year based on changes to the Larimer County Assessor's"Residential Lot Classification': Exhibit B Poudre School District School District Methodology Based on the School District Planning Standards contained in Exhibit A, calculation of land dedication or in-lieu payments uses the following procedures: 1. The student yield is determined by the number of attached dwelling units. (e.g. Category A, Elementary5choo/= 0.35). 2. The amount of land required per student is calculated by dividing the acreage by the capacity. (e.g. Elementary School= 15 acres/525 students = 0.02-9. 3. The acreage per dwelling unit is determined by multiplying the student yield by the per student land requirement. (e.g. 0.35 yield x 0.029 acres = 0.0161) 4. To convert the land dedication requirement into in-lieu payments, the acreage per dwelling unit is multiplied by the developed land value. (e.g. 0.010 acres x $100,000 = $1,000.00) Summary The total land dedication or in-lieu payment per dwelling unit is: Category A Category B 1 to 4 attached units 5 or more attached units Land .=1 Elementary School 0.0100 acres $ 1,000 0.005 acres $500 Middle School 0.0040 acres $ 400 0.002 acres $200 High School 0.0040 acres 400 0.002 acres 200 Total 0.0180 acres 1 800 0.009 acres 900 Approved Fee: (Phased January 1, 2007- $1,200 $600 implementation per Fort December 31, 2007 Collins City Council January 1, 2008- $1,800 $900 December 31, 2008 To determine the land or in-lieu payments for a proposed residential development, the per dwelling unit totals above would be multiplied by the total number of dwelling units in the development. (e.g. 300 single family units = 0.0180 x 300 = 5.4 acre dedication or $1,800 x 300 = $540,000 PILCD 'PILO means 'payment-in-lieu-of land dedication Attachment 2 Page 1 of 2 Exhibit A Thompson School District R2-J Loveland, Colorado School District Planning Standards V. Student Yield Per Dwelling Unitl Category A Category B I to 4 attached S or more attached dwelling units dwelling units Elementary School 0.19 0.15 Middle School 0.12 0.07 High School 0.16 0.11 Total 0.47 students 0.33 students vi. School Facility Enrollment Capacities2 Elementary School 550 students Middle School 900 students High School 1,500 students vii. School Site Acreage Requirementsz Elementary School 12 acres Middle School 30 acres High School 45 acres viii. Developed Land Value for 20063 $106,325 'Average student yields for elementary,middle school, and high school hased on Census 2000 and District's October I, 2000 enrollment report.Includes all residential dwelling types within the School District. 'Based on Thompson School District Board of Education Policy FBC and Regulation FBC-R. 'Average land value per acre of$38,170 plus raw water requirements and infrastructure costs per acre (utilities stubbed to the site, '/:ofstreel development costs for a site, and avedot grading)of$68,155. Details of calculations and sources of base numbers available from the Planning Services office of the District. Annual adjustments to occur based on Dodge Index changes. Attachment 2 Page 2 of 2 Exhibit B Thompson School District R2-J Loveland, Colorado School District Methodoloev Based on the School District Planning Standards contained in Exhibit A, calculation of land dedication or in-lieu payments uses the following procedures: 5. The student yield is determined by the number of attached dwelling units. (e.g. Category A, middle school = 0.12). 6. The amount of land required per student is calculated by dividing the acreage by the capacity. (e.g. Middle School = 30 acres/900 students = 0.0333). 7. The acreage per dwelling unit is determined by multiplying the student yield by the per student land requirement. (e.g. 0.12 yield x 0.0333 acres = 0.0040) 8. To convert the land dedication requirement into in-lieu payments, the acreage per dwelling unit is multiplied by the developed land value. (e.g. 0.0040 acres x$106,325 = $425.30) Summary The total land dedication or in-lieu payment per dwelling unit is: Category A Category B l to 4 attached units 5 or more attached units Land PILO' Land PILO' Elementary School 0.0042 acres $ 447 0.0033 acres $351 Middle School 0.0040 acres $ 425 0.0023 acres $245 High School 0.0048 acres $ 510 0.0032 acres $350 Total 0.0130 acres $1,382 0.0089 acres $946 To determine the land or in-lieu payments for a proposed residential development, the per dwelling unit totals above would be multiplied by the total number of dwelling units in the development. (e.g. 300 single family units = 0.0130 x 300 = 3.9 acre dedication or $1,382 x 300 = $414,600 PILO) 'PILO means "payment-in-lieu-of'land dedication