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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 06/18/2013 - SECOND READING OF ORDINANCE NO. 080, 2013, AUTHORIDATE: June 18, 2013 STAFF: Ginny Sawyer AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 10 SUBJECT Second Reading of Ordinance No. 080, 2013, 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 dedicate a parcel of land to the District for development of future schools. The ability of the school districts to require land dedication is authorized under Colorado Law. Fees are reviewed every two years and, in 2011, the Poudre School District reduced fee amounts by 11 percent. This Ordinance, unanimously adopted on First Reading on June 4, 2013, will increase the amount of the fees the District receives by 6.9 percent. The School District is requesting an increase in the fees collected because of an increase in land values and cost per acreage. This fee amount was reviewed and approved by the Poudre School Board in February 2013. Thompson School District will not be adjusting fees in 2013. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary - June 4, 2013 (w/o attachments) COPY COPY COPY ATTACHMENT 1 DATE: June 4, 2013 STAFF: Ginny Sawyer Ed Holder, Poudre School District AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 17 SUBJECT Public Hearing and First Reading of Ordinance No. 080, 2013, 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 dedicate a parcel of land to the District for development of future schools. The ability of the school districts to require land dedication is authorized under Colorado Law. Fees are reviewed every two years and in 2011the Poudre School District reduced fee amounts by 11 percent. This ordinance will increase the amount of the fees the district receives by 6.9 percent. The school district is requesting an increase in the fees collected because of an increase in land values and cost per acreage. This fee amount was reviewed and approved by the Poudre School Board in February 2013. Thompson School District will not be adjusting fees in 2013. 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 increased to reflect the current cost of acquiring school sites. Thompson School District has not requested a change. The City’s Intergovernmental Agreement (IGA) with Poudre School District allows for periodic updates to the fees and land dedication requirements. Since adoption of the IGA, fees have been adjusted in 2001, 2006, and 2011. Fees are based on a number of factors including school site size, student population projections, enrollment capacities of each type of school (elementary, junior high and high schools), and the cost of developed land within the school district. Site sizes and enrollment capacities are set by School District policy. 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 the factors listed above. This fee increase is at the request of PSD and is based on a land value analysis performed for the District in late 2012 (Attachment 2). 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 $1,600 $1,710 5 or more attached dwelling units $ 800 $ 855 COPY COPY COPY June 4, 2013 -2- ITEM 17 The Intergovernmental Agreement requires that the City conduct a public hearing prior to any changes in the fee or land requirement. The Poudre School District Board has reviewed its methodology for this 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 increase requested by Poudre School District. The increased fee will raise the cost of residential development in the community collected at the time of building permit by $110 per single family unit Multi- family unit fees (over 5 units) are increased by $55 per dwelling unit. This is a 6.9% increase. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. PUBLIC OUTREACH This action was reviewed and approved at the February 26, 2013 Poudre School District Board Meeting. ATTACHMENTS 1. PSD Board of Education Agenda Item Summary, February 26, 2013 2. Real Estate Analysis, November 16, 2012 3. PSD Board of Education Exhibit A and B 4. Intergovernmental Agreement between the City and PSD ORDINANCE NO. 080, 2013 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 (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, the 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 4th day of June, A.D. 2013, and to be presented for final passage on the 18th day of June, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 18th day of June, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk