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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/21/2010 - SECOND READING OF ORDINANCE NO. 125, 2010, AMENDIN DATE: December 21, 2010 STAFF: Mike Freeman _ John Voss Second Reading of Ordinance No. 125, 2010, Amending the City Code to Increase the Amounts of the Capital Improvement Expansion Fees Contained in Chapter 7.5 of the Code so as to Reflect Inflation in Associated Costs of Services. EXECUTIVE SUMMARY The City Code requires annual adjustments to the City's impact fees. The Capital Improvement Expansion fees and Neighborhood Parkland fee are to follow the changes in the Denver-Boulder-Greeley Consumer Price Index (CPI). Street Oversizing fees are adjusted by the changes posted in the Engineering News Record (ENR). Since the last adjustment in 2009 the CPI has increased 1.1%and the ENR has increased 5.48%. This Ordinance was unanimously adopted on First Reading on December 7, 2010. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary- December 7, 2010 (w/o attachments) ATTACHMENT 1 DATE: December 7, 2010 STAFF: Mike Freeman _ John Voss First Reading of Ordinance No. 125, 2010, Amending the City Code to Increase the Amounts of the Capital Improvement Expansion Fees Contained in Chapter 7.5 of the Code so as to Reflect Inflation in Associated Costs of Services. EXECUTIVE SUMMARY II I � �� v The City Code requires annual adju stmentsto \rtain buildi Ig pe it relayed fees. Capital Improvement Expansion fees and Neighborhood Parkland fee are-to-follow the.changes m the Denver-Boulder-Greeley Consumer Price Index (CPI). Street Oversizing fees are adjusted by the changes posted in the Engineering News Record(ENR). Since the last adjustment in 2009 the CPI has increased 1.1% and the ENR has increased 5.48%. BACKGROUND / DISCUSSION In May of 1996, Council adopted Ordinance No. 051, 1996, which established capital improvement expansion fees for Community Parkland, Police, Fire, and General Government services. The purpose of the fees is to have new development pay a proportionate share'ofthe,capit'al-improvements,and\�quipment that will be necessary to provide services to the development. The Code provisions approved by the�Ordinance provide for the annual adjustment of the fees to keep up with inflation, using the river\ Bou der(I ow-Denver-Boulder-Greeley) Consumer Price Index. The City has imposed a Parkland fee fo?�neiiggh�borh000dJparks since 1968. I I August 1996,Council adopted Ordinance No. 105, 1996, which aligned the Neighborhood Parkland fee to the housing size differentials in the Capital ImprovementExpansion fee ordinance,and updated the fee schedule to reflect pre-1996 inflation. The Neighborhood Parkland fees were adjusted for inflation in 1997-2007, along with the Capital Improvement Expansion fees. Based on the Denver-Boulder-Greeley Consumer Price Index for all urban consumers,the inflation level since the last annual adjustment is an increase of 1.1% for 2011. This Ordinance adjusts the fee schedules in Chapter 7.5 and Chapter 23 of the City Code to account for inflation. In the Ordinance,all amounts for the capital improvement expansion fees have been rounded to the nearest dollar. Calculation � � �� � Fees are adjusted only when the indexes move upward. Florl years�n whichhe index is negative,the rate will not be reduced. However, in the year(s)following no adjustments, the calculation goes back to the last adjustment period. For example, the 2010 fees were to be adjusted on the change in the CPI from July 2008 to June 2009. But because the change in CPI was negative 0.6%, the rates were not adjusted. For the 2011 fees, the adjustment is normally based on the change in CPI from July 2009 to June 2010,which was 1.7%. However,because 2010 was not adjusted, 2011 fees should be adjusted 1.7 - 0.6 = 1.1%. COPY December 7, 2010 -2- ITEM 15 FINANCIAL/ ECONOMIC IMPACTS The 2011 revenue budget in the table below reflects changes in both the rates and volume of building activity. Summary information: Revenue 2008 2009 2010 2011' Fee Type Actual Actual Forecast Budget Capital Expansion Fees 2 009=508 (-467 263 7 792,000 1,150,000 Neighborhood Parkland Fees v 1875 7911 [L_221 736V 362 000 400 000 Street Oversizing Fees D 2,,910 656/ 1 641,491 2,200,000 1,895,000 `Reflects the fee increase and a budgeted increase=in-building activity. u Rate Change 2008 2009 2010 2011 Fee Type Authorized Authorized Proposed Capital Expansion Fees 2.50% 3.70% 0.00% 1.10% Neighborhood Parkland Fees 2.50% 3.70% 0.00% 1.10% Street Oversizing Fees 4.85%_ —6.30%_ _ 0.00% 5.48% As of year-end of 2010, staff estimates that theitotal available-balance in the Capital Improvement Expansion Fund will be approximately$19.2 million, the Neighborhood Parkland-Fund about $8.0 million, and the Street Oversizing Fund nearly$3.8 million. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. COPY COPY ORDINANCE NO. 125, 2010 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING THE CODE OF THE CITY OF FORT COLLINS TO INCREASE THE AMOUNTS OF THE CAPITAL IMPROVEMENT EXPANSION FEES CONTAINED IN CHAPTER 7.5 OF THE CODE SO AS TO REFLECT INFLATION IN ASSOCIATED COSTS OF SERVICES WHEREAS, the City is a home rule municipality having the full right of self-government in local and municipal matters under the provisions of Article XX, Section 6 of the Colorado Constitution; and WHEREAS, among the home rule powers of the City is the power to regulate, as a matter of purely local concern, the development of real property within the City; and WHEREAS, the City's Comprehensive Plan shows that the rate of future growth and development in Fort Collins will require a substantial expansion in library,community park,police, fire,and general government facilities,and related capital equipment,if its level of service standards for such facilities are to be maintained; and WHEREAS, the City Council has determined that new development should contribute its proportionate share of providing such capital improvements; and WHEREAS,the City Council has broad legislative discretion in determining the appropriate funding mechanisms for financing the construction of public facilities in the City; and WHEREAS, based on the foregoing, the City Council adopted Ordinance No. 051, 1996, establishing certain capital improvement expansion fees; and WHEREAS, City Code Section 7.5-18 provides for annual fee increases in the capital improvement expansion fees corresponding to the increases in the Denver-Boulder-Greeley Consumer Price Index for all urban consumers; and WHEREAS, in September 1968, City Council adopted Ordinance No. 038, 1968, which established the original Neighborhood Parkland Fee to fund the acquisition and development of parkland, which ordinance has since been amended on several occasions to adjust the fee and to refine related procedures and requirements; and WHEREAS, with the adoption in August 1993, of Ordinance No. 082, 1993, the City Council directed the City Manager to annually review the Neighborhood Parkland Fee and submit to the Council proposed inflation-related increases based on the Denver-Boulder-Greeley Consumer Price Index; and WHEREAS, the City Code and ordinances of the City authorize the annual adjustment of all Capital Improvement Expansion Fees, including the Neighborhood Parkland Fee, for inflation; and WHEREAS, based on the Bureau of Labor Statistics most recent Denver-Boulder-Greeley Consumer Price Index for all urban consumers, staff anticipates that the Index will reflect an inflation increase of 1.10 percent since the last annual adjustment of the fees in 2008, effective January 1, 2011; and WHEREAS, based on the Engineering News Record, the cost of constructing street improvements has increased 5.48 percent since the last adjustment of the Street Oversizing Capital Improvement Expansion fee; 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 City Council has determined that it is necessary, in the interests of the protection of the public health, safety and welfare, that the Capital Improvement Expansion Fees, including the Neighborhood Parkland Fee and 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 the fee schedule in Section 7.5-28(a) of the Code of the City of Fort Collins, establishing the Community Parkland Capital Improvement Expansion Fee, is hereby amended to read as follows: 700 sq. ft and under $ 986.00 701 to 1,200 sq. ft. 1,398.00 1,201 to 1,700 sq. ft. 1,642.00 1,701 to 2,200 sq. ft. 1,889.00 2,201 sq. ft. and over 2,298.00 Section 2. That the fee schedule in Section 7.5-29(a) of the Code of the City of Fort Collins, establishing the Police Capital Improvement Expansion Fee, is hereby amended to read as follows: 700 sq. ft and under $ 72.00 701 to 1,200 sq. ft. 103.00 1,201 to 1,700 sq. ft. 122.00 1,701 to 2,200 sq. ft. 140.00 2,201 sq. ft. and over 171.00 Commercial buildings (per 1,000 square feet) 151.00 -2- Industrial buildings (per 1,000 square feet) 41.00 Section 3. That the fee schedule in Section 7.5-30(a) of the Code of the City of Fort Collins, establishing the Fire Protection Capital Improvement Expansion Fee, is hereby amended to read as follows: 700 sq. ft and under $ 106.00 701 to 1,200 sq. ft. 151.00 1,201 to 1,700 sq. ft. 176.00 1,701 to 2,200 sq. ft. 203.00 2,201 sq. ft. and over 248.00 Commercial buildings (per 1,000 square feet) 217.00 Industrial buildings (per 1,000 square feet) 60.00 Section 4. That the fee schedule in Section 7.5-31(a) of the Code of the City of Fort Collins, establishing the General Government Capital Improvement Expansion Fee, is hereby amended to read as follows: 700 sq. ft and under $ 134.00 701 to 1,200 sq. ft. 190.00 1,201 to 1,700 sq. ft. 223.00 1,701 to 2,200 sq. ft. 257.00 2,201 sq. ft. and over 312.00 Commercial buildings (per 1,000 square feet) 243.00 Industrial buildings (per 1,000 square feet) 67.00 Section 5. That Section 7.5-71(b)of the Code of the City of Fort Collins, regarding the Neighborhood Parkland Fee is hereby amended to read as follows: Sec. 7.5-71. Collection of neighborhood parkland fee. (b) The amount of the fee established in this Section shall be determined for each dwelling unit as follows: 700 sq. ft. and under $ 886.00 701 to 1,200 sq. ft. 1,254.00 1,201 to 1,700 sq. ft. 1,475.00 1,701 to 2,200 sq. ft. 1,695.00 -3- 2,201 sq. ft. and over 2,064.00 Section 6. That Section 7.5-32 of the Code of the City of Fort Collins, regarding the Street Oversizing Capital Improvement Expansion Fee is hereby amended to read as follows: STREET OVERSIZING CAPITAL EXPANSION FEE SCHEDULE Average Weekday Transportation Vehicle Trips Impact Fee Rate Residential (per housing unit) SF Detached 9.55 2,842 per D.0 MF and Other Housing 6.59 1,961 per D.0 per Hotel/Motel 8.70 2,589 room Apartment 6.12 1,821 per D.0 Retirement Community 3.30 982 per D.0 Assisted Living 4.52 1,345 per D.0 Congregate Care Facility 2.15 640 per D.0 Residential Condominium 5.86 1,744 per D.0 Duplex 7.18 2,137 per D.0 Townhome 5.86 1,744 per D.0 Mobile Home 4.92 1,464 per D.0 Non Residential (per 1,000 so. ft.) Comm/Shopping Center 1000K GLA 32.09 5.56 /sq. ft. 500K GLA 38.65 6.70 /sq. ft. 200K GLA 54.50 9.44 /sq. ft. 50K GLA 91.65 10.92 /sq. ft. Movie Theater 77.79 13.48 /sq. ft. Fitness/Racquet Club 17.14 3.19 /sq. ft. Day Care 79.26 5.77 /sq. ft. Government Office 68.93 12.84 /sq. ft. Post Office 86.78 16.17 /sq. ft. Building Materials/Lumber 39.71 6.88 /sq. ft. Specialty Retail 40.68 7.05 /sq. ft. Discount Club 41.80 7.24 /sq. ft. Nursery(Garden Center) 36.08 6.72 /sq. ft. Sit Down Restaurant 130.34 15.53 /sq. ft. Fast Food w/Driveup 496.12 36.11 /sq. ft. Car Sales 37.50 6.09 /sq. ft. Service Station 168.56/pump 12,269.67 /pump Wholesale Tire Store 20.36 3.79 /sq. ft. Self Service Car Wash 5.79/stall 421.46 /stall Supermarket 111.51 13.29 /sq. ft. Convenience Market 737.99 53.72 /sq. ft. Furniture Store 5.06 1.47 /sq. ft. Bank 189.95 12.86 /sq. ft. -4- Drive-In Bank 265.21 19.30 /sq. ft. Insurance Building 11.45 2.13 /sq. ft. Manufacturing 3.85 1.12 /sq. ft. Warehousing 4.96 1.44 /sq. ft. Light Industrial 6.97 2.03 /sq. ft. Mini-Warehouse 2.50 0.73 /sq. ft. Business Park 14.37 4.18 /sq. ft. General Office 200K GFA 11.54 3.36 /sq. ft. 50K GFA 16.31 4.75 /sq. ft. IOK GFA 24.39 7.10 /sq. ft. Recreational 3.64/ac 1,059.84 /acre City Park 3.66/ac 1,065.66 /acre Golf Course 5.04/ac 1,467.47 /acre Elementary School 1.02/student 296.99 /student Church/Synagogue 9.11 2.65 /sq. ft. Library 54.00 15.72 /sq. ft. Hospital 16.78 4.89 /sq. ft. Nursing Home 2.60/bed 756.15 /bed Medical Clinic 31.45 9.16 /sq. ft. *Notes: 1. Rate calculation for each item based on the product of Number of Weekday Trips,Trip Adjustment Factor, and Cost Per Unit of Trip. 2. Italicized building types indicate that high pass-by trip adjustment factor is used when calculating SOS Rate. Introduced, considered favorably on first reading, and ordered published this 7th day of December, A.D. 2010, and to be presented for final passage on the 21st day of December, A.D. 2010. Mayor ATTEST: City Clerk -5- Passed and adopted on final reading on the 21st day of December, A.D. 2010. Mayor ATTEST: City Clerk -6-