HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 01/04/2011 - SECOND READING OF ORDINANCE NO. 125, 2010, AMENDIN DATE: January 4, 2011
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 Ordinancewas unanimously
adopted on First Reading on December 7, 2010.
Second Reading of this Ordinance was postponed on December 21,2010,to address several questions raised. First,
Councilmembers inquired about whether the process followed for updating the Capital Expansion Fees was consistent
with the City's practices. City Code Sec. 7.5-18 dictates that, "The amount of the fee will be increased annually
according to the Denver-Boulder Consumer Price Index for Urban Consumers, as published by the Bureau of Labor
Statistics." The proposed Ordinance is consistent with this Code provision. Second, Council and a member of the
public inquired about the use of the Denver-Boulder CPI as the appropriate index for these fees. This index was
included in the Code adopted in 1997, as the most appropriate, least volatile index for accounting for cost changes
over time.
As staff noted at the December 21, 2010 meeting, Council is scheduled to review two groups of development related
fees in depth during 2011. A work session is scheduled for April 26, 2011, to review proposed changes to
Development Review and Building Permit Fees. Staff is currently conducting a detailed analysis of these fees and
will propose adjustments. Council action on this item is tentatively scheduled for June 2011. The second phase of
the Fee Study includes a detailed review and recalculation of Capital Expansion Fees. This portion of the Study is
slated for the 3rd and 4th quarter of 2011. Based on Council's discussion of this Ordinance on December 21, 2010,
the review of the Capital Expansion Fees will also include further review of which index is appropriate for annual
adjustments, and language which allows for both increases and decreases to fees and regionally comparative fee
data.
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)
2. Staff memo re: Question regarding adjusting Capital Impact Fees, December 7, 2010
ATTACHMENT 1
DATE: December 7, 2010 k AGENDA ITEM SUMMARY
STAFF: Mike Freeman _
John Voss
T COLLINS CITY COUNCIL
---- AM
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 F� 7\\ 17
The City Code requires annual adjustments 06 certain ilding permit related fees. 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%.
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 shareZf—tthe caps aliimprovements,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 Denver-Boulder(now-Denver-Boulder-Greeley) Consumer Price Index.
The City has imposed a Parkland fee fof'neighborhood-parks since 1968. In-August 1996,Council adopted Ordinance
No. 105, 1996, which aligned the Neighborhood Parkland fee to the housing size differentials in the Capital
Improvement Expansion 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
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Fees are adjusted only when the indexes move upward. Flogyearsn which the 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%.
C 0 y
D
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 F=4'67 263 7 792,000 1,150,000
Neighborhood Parkland Fees I v 1875 7911 I.L221 736\/ 362 000 400,000
Street Oversizin Fees /-7 2,,9.10 656/ I F 641,49111 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%
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As of year-end of 2010, staff estimates that the'total available-balance Ie balance i �the Capital Improvement Expansion Fund
will be approximately$19.2 million, thle Neighborhood Parlkland-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
ATTACHMENT 2
Finance Department
City, of 2n° N.Floor
Fort Collins For Mason Street
PO Box 580
Fort Collins,CO 80522
970.221.6788
970.221.6782 fax
fcgov.com
MEMORANDUM
Date: December 7, 2010
To: Mayor and City Council .
From: Darin Atteberry, City Manager -�
Mike Freeman, Chief Financial Officer
John Voss, Interim Finance Director
Subject: Question Regarding Adjusting Capital Impact Fees
The Leadership Team asked for an explanation of why the rate is not reduced in years when the
index is negative and, yet is "net adjusted" when the rates go up. Section 7.12-18 of the City Code
states "The amount of the fee will be increased annually" based on the change in the Consumer
Price Index or CPI. Staff and the City Attorney's Office has interpreted that this does not allow for
decreases. Because of this interpretation and past practice, it is appropriate to adjust the fees by
comparing the most recent CPI adjustment to the CPI adjustment that was used the last time the fees
were adjusted.
. 2009 Fees
The adjustment in 2009 was 3.7% and was based on the change in the index from June 2007
(201.258) to the June 2008 index (208.741).
The formula is (208.741 - 201.258)! 201.258 = 3.7%.
(Jun 2008 —Jun 2007/Jun 2007
2010 Fees
The index dropped to 207.444 in June 2009 so no changes were made to 2010 fees.
2011 Fees
For 2011 the formula is basically the same,compare the most recent index number, 210.978 for June
2010, with the most recently used index. Normally that would have been the June 2009 index of
207.444. Instead the formula uses the June 2008 index of 208.741.
The formula is (210.978 —208.741)/208.741 = 1.1%.
(Jun 2010—Jun 2008)/Jun 2008
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
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Commercial buildings
(per 1,000 square feet) 151.00
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 7.5731(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:
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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
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 sq. 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 6.99 /sq. ft.
Service Station 168.56/pump 12,269.67 /pump
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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.
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 4th day of January, A.D. 2011.
Mayor
ATTEST:
City Clerk
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Passed and adopted on final reading on the 4th day of January, A.D. 2011.
Mayor
ATTEST:
City Clerk
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