HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 05/03/2011 - HEARING AND FIRST READING OF ORDINANCE NO. 059, 20 DATE: May 3, 2011
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STAFF: Ann Turnquist • ' • •
Hearing and First Reading of Ordinance No.059,2011,Authorizing Amendments to the Intergovernmental Agreement
Between the City and Poudre School District Pertaining to the Land Dedication and In-Lieu Fee Requirements
Contained in Such Agreement.
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 2006. This Ordinance will lower the amount of the fees
the district receives by $200 per dwelling unit. Poudre School District requested a reduction in the fees collected
because of the reduced cost of securing appropriate school sites. Thompson School District has not requested a
change in fees.
BACKGROUND / DISCUSSION
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.
Poudre School District has asked that the amount of the fees be decreased to reflect the current decreased cost of
developed residential land. Thompson School District has not requested a change in fees.
School districts in Colorado are allowed by state law to either require school site dedications from residential
developers or collect a fee-in-lieu of such land dedication. The calculation of this fee must be closely tied to the cost
of land to be dedicated, as well as a number of other factors including school site size,student population projections,
and enrollment capacities of each type of school(elementary,junior high and high schools). Site sizes and enrollment
capacities are set by school district policy.
This reduction in the fees to be collected reflects the District's market analysis of land values,which has declined over
recent years. By State law, Colorado school districts are not permitted to collect a fee for the cost of the construction
of schools as part of the development process They do not have the ability to obtain revenue from impact fees. In
1996, the Colorado Supreme Court found that counties are limited to using the land dedication and fee-in-lieu
provisions of the School Finance Act because counties do not have the statutory authority to impose additional impact
fees. Also, while the School Finance Act acknowledges that municipalities may contribute to the funding of school
projects, the act makes it clear that impact fees cannot be a source of that funding.
The effect of the proposed change in per dwelling unit costs would be as follows:
Poudre School District:
Fee per dwelling unit: Current Fee Revised Fee
1-4 attached dwelling units $1,800 $1,600
5 or more attached dwelling units $900 $ 800
The City's Intergovernmental Agreements with Poudre School District allows for periodic updates to the fees and land
dedication requirements. Since adoption of the current fee in 2006, Poudre School District has reviewed its fees every
two years, each time electing to leave the fees at the 2006 rate.
May 3, 2011 -2- ITEM 24
The agreement also requires that the City conduct a public hearing prior to any changes in the fee or land requirement.
The Poudre School Board has reviewed its methodology forth is program and requested that the City Council approve
this revision. The detailed methodology for calculating the fees are provided in Exhibits A and B of the Ordinance.
FINANCIAL/ ECONOMIC IMPACTS
The proposed ordinance will not have a financial impact on the City of Fort Collins because the fees are collected on
behalf of Poudre School District. Revenues from the fees will pass through City accounts and will not affect City
revenue limits under Article X, Section 20.
This Ordinance implements a fee reduction requested by Poudre School District. The reduced fee will serve to reduce
the cost of residential development in the community by reducing fees collected at the time of building permit by$200
per single family unit. Multi-family unit fees (over 5 units) are reduced by$100 per dwelling unit.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
PUBLIC OUTREACH
This action was considered at a public meeting of the Poudre School Board. No City outreach has been conducted.
ATTACHMENTS
1. Email from Ed Holder, Poudre School District, RE: Land Dedication or Payment in Lieu Agreements
2. Powerpoint presentation
Attachment 1
Rob Helmick, Larimer County
Ann Turnquist, City of Fort Collins
Scott Ballstadt, Town of Windsor
Larry Lorentzen,Town of Wellington
Sent via email: rhelmick(a)Iarimer.org
ATURNQU IST(aD-fcgov.com
sba llstadt(cwi ndsorgov.com
lore ntllna.co.la rimer,co.us
RE: Land Dedication or Payment in Lieu Agreements
Dear IGA Partner:
The Poudre School District currently has land dedication agreements with Larimer County, City of
Fort Collins, Town of Windsor, and the Town of Wellington. As part of these agreements, land is
dedicated or fees paid based on "School District Planning Standards" adopted by the Board of
Education. These standards include such items as: student yields, enrollment capacities, site
acreage requirements, and developed land costs. These standards are reviewed every two
years, and last updated in 2008.
As part of the 2006 review and 2008 update, the District's appraiser, Shannon & Associates was
hired to formulate a methodology for determining developed land values as well as future
adjustments based on current Larimer County residential land values. In 2008 it was their opinion
"that there does not appear to be any change in the market value of large residential land tracks
between 2006 and 2008". It was then recommended and approved that the current fee of$1,800
per dwelling unit remains unchanged for 2009 and 2010.
The District again contracted with Shannon & Associated to review the most current data and to
provide an opinion on any change in the developed land values. As might be expected given the
current economy and state of development within the District that developed land values have
dropped by approximately 11%. It was their opinion that "it is reasonable to decrease the existing
$100,000 average developed land values per acre to $89,000 per acre". This would result in the
current fee of$1,800 per dwelling unit being reduced to $1,600 per dwelling unit for the next two
years. The other factors within the planning standard such as site size and enrollment capacities
are based on the District's current educational specifications and have not changed since 2006.
Based on the above data, it was recommended that the School District Planning Standards
be modified to reflect a 11% reduction in developed land value for the calendar years 2011
and 2012; therefore fees collected from developers for each new dwelling unit would be
reduced to $1,600 per unit until the next scheduled update in January, 2013. On January
25, 2011, the Board of Education approved this recommendation. Attached is the Board of
Education action item for the 2011/12 version of Exhibits"A" and "B" for your approval and use.
Please forward any action by your Commissioners, Councils, or Boards for our files. Until then,
we anticipate fees to be collected at their current levels.
Thank you for your continued support of our mission: Educate...Every Child, Every Day.
Sincerely,
Ed Holder, Construction Manager
Planning, Design & Construction Services
970.490.3412
Poudre School District
Fees -in -Lieu of Land
Dedication Amendments
May 3 , 2011
1
Background
• 1998 Intergovernmental Agreement with PSD
• Colorado school districts authorized to require
developers to dedicate land for school sites
• For administrative and efficiency purposes , PSD
collects Fees- in - Lieu -of Land Dedication instead of
land dedication from most developments
• Schools not permitted to charge capital expansion
fees for school buildings
• Fees reviewed every 2 years
F�tJ 11
2
Fee Calculation
Elements of fee :
— Students per household
— School size
— School acreage requirements
— Cost of developed land appropriate for school
sites
or ollins
Cityf
Poudre School District Request
• Reviewed fee formula with School Board
• Recalculated land values = decreased 11 %
• PSD requested the City to reduce the fees collected
on their behalf by 11 %
F�tJ 11
4
Process
• Ordinance amends IGA with Poudre School District
• Staff will implement reduced fees
• Next review : 2013
For Collins
City f
ORDINANCE NO. 059, 2011
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING AMENDMENTS TO THE INTERGOVERNMENTAL
AGREEMENT BETWEEN THE CITY AND POUDRE SCHOOL DISTRICT
PERTAINING TO THE LAND DEDICATION AND IN-LIEU FEE REQUIREMENTS
CONTAINED IN SUCH AGREEMENT
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, this agreement is referred to below as the "School Agreement;" and
WHEREAS,the requirements imposed upon developers pursuant to the School Agreement
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 Agreement 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
Agreement as Exhibit "A" (pertaining to school district planning standards) and Exhibit `B"
(methodology for calculating the in-lieu fee); and
WHEREAS, Section 1 of the School Agreement 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 agreement states that both the standards and
methodology are to be updated annually; and
WHEREAS, the School Agreement, 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,Poudre School District has adopted proposed revisions to Exhibits"A"and`B"
to the agreement 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 amended Exhibits "A" and "B" of the Poudre School District
Agreement,which Exhibits are attached hereto and incorporated herein by this reference,are hereby
approved by the City Council.
Section 2. That the Mayor is hereby authorized to execute,on behalf 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 3rd day of May,
A.D. 2011, and to be presented for final passage on the 17th day of May, A.D. 2011.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading on the 17th day of May, A.D. 2011.
Mayor
ATTEST:
City Clerk
Exhibit A
Poudre School District
2011 /12 School District Planning Standards
i . Student Yield Per Dwelling Unit'
Category A Category B
1 to 4 attached 5 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 Category A
Total 0 . 54 students
ii . School Facility Enrollment Capacities2
Elementary School 525 students
Middle School 750 students
High School 1 , 800 students
iii . School Site Acreage Requirements2
Elementary School 15 acres
Middle School 30 acres
High School 80 acres
iv. Developed Land Value for 20103
$ 100YO00 $8% 000
'Average student yields for elementary, middle school, and high school based on information collected by Western
Demographics, Inc. includes all residential dwelling types within the School District.
2Based on Poudre School District's current educational specifications
3Average land value based on report prepared by Shannon and Associates dated March 14, 2006 and updated per letter
dated August 13, 2008, as well as December 29, 2010. Adjustments to occur every 2 years in the even year based on
changes to the Larimer County Assessor's "Residential Lot Classification ".
Exhibit B
Poudre School District
2011 /12 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, Elementary School = 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. 029) .
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. 010)
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 - $ 1000. 00 $897000 = $890 . 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 PILO ' Land PILO '
Elementary 0 . 0100 acres $ 11000 0 . 005 acres $500
School $ 890 $445
Middle School 0 . 0040 acres $ 400 0 . 002 acres $200.00
$ 355 $ 177 . 50
High School 0 . 0040 acres $ 400 0 . 002 acres $2-00 .00
$ 355 $ 177 . 50
Total 0 . 0180 $ 19800 0 , 009 acres ON
acres $ 1 , 600 $800
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 , 600 x 300 = $480, 000 PILO)
1 PILO means payment-in-lieu-of" land dedication