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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 01/07/2014 - FIRST READING OF ORDINANCE NO. 004, 2014, AUTHORIZAgenda Item 12 Item # 12 Page 1 AGENDA ITEM SUMMARY January 7, 2014 City Council STAFF Ginny Sawyer, Policy and Project Manager SUBJECT First Reading of Ordinance No. 004, 2014, Authorizing the Execution of a New Intergovernmental Agreement Pertaining to a Regional Road Impact Fee Program, Adopting a Regional Road Impact Fee Schedule, Ratifying Fee Changes and Collections Made in the Past, and Amending Section 7.5-85(d) of the City Code Pertaining to the Remittance to the County of the Collected Fees. EXECUTIVE SUMMARY The purpose of this item is to execute a new Intergovernmental Agreement (IGA) with Larimer County that allows for the collection of a Regional Road Fee at the time of development. The Ordinance adopts a fee schedule and ratifies past fee changes and collections and also amends Section 7.5-85(d) of the City Code pertaining to the remittance of the fee. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION In 2000, the City and Larimer County entered into an IGA agreeing that the City would collect a Regional Road Fee on behalf of Larimer County. The fee is collected at the time a building permit is issued. The Regional Road Fee helps generate revenue for off-site road improvements that are necessitated by new development. The fees are only used on capacity related improvements that are of mutual benefit to both the City and the Larimer County. The IGA adopted in 2000 expired in 2010, and although the fee collection is not conditioned upon the Agreement, having an IGA in place articulates the need and the desire for collaboration between the City and County in regard to continued growth and development which will increase demand for road capacity on the regional road system. Originally, the fee was envisioned as a true regional fee, with all communities in Larimer County collecting a fee for roads outside the major communities. Ultimately, Fort Collins was the only community other than Larimer County to adopt the fee. Because of this, the fee has operated as a Larimer County-Fort Collins collaboration of resources and staff making improvements to regionally significant roads within the Fort Collins Growth Management Area. Recently completed projects include Taft Hill Road between Harmony and Horsetooth, the turn lanes at Taft Hill/Trilby intersection, and Taft Hill/LaPorte intersection improvements. Future projects will likely include Shields Street from Vine to Willox and turn lane improvements at Shields/Trilby and at Gulley’s Greenhouse. The Larimer County Land Use Code specifies that the Regional Transportation Capital Expansion Fees shall be updated to reflect changes in road construction costs during the previous year. The methodology for adjustments is based on a two-year moving average calculated from the Colorado Construction Cost Index data compiled by Colorado Department of Transportation. Agenda Item 12 Item # 12 Page 2 Larimer County’s procedure for fee adjustments is to update the two-year moving average using the most recent prior year construction cost index data and calculate new adjusted fees. If the change is less than 5% the new fees become effective without further action by the Board of County Commissioners (BCC). If the increase exceeds 5% the Land Use Code specifies that the BCC review and approve the fee change. The County typically adjusts and adopts new fees in July of each year. The City brings fee changes annually (typically in December) and in the future this fee and any changes will be included. The County is aware of the lag time in our schedules. After the original IGA was adopted and the fee was added to the Code in 2000, several adjustments in the amount of the fee were made. However, the adjustments to the fee schedule were not consistently presented to the Council for approval before being implemented. Therefore, because the Code requires Council approval of the fee schedule, Section 2 of the Ordinance ratifies those fee amounts. The 2013 Fee Table is included as an attachment. The fee change for a regional single family detached home will be a $12 increase (4.7% increase). FINANCIAL / ECONOMIC IMPACT The fees are collected on behalf of Larimer County. Revenues from the fees will pass through City accounts and will not affect City revenue limits under Article X, Section 20. Adoption will result in an increase to development fee payers. The fees provide needed funds for road improvements that would otherwise compete with other budget items. ATTACHMENTS 1. 2013 Transportation Capital Expansion Fee Schedule (PDF)    7UDQVSRUWDWLRQ&DSLWDO([SDQVLRQ)HH6FKHGXOH (IIHFWLYH-XO\ /DQG8VH7\SH 8QLWRI &RXQW\ 5HJLRQDO 7RWDO  0HDVXUH 3HU8QLW 5HVLGHQWLDO  6LQJOH)DPLO\'HWDFKHG 'ZHOOLQJ    &DELQ RIVLQJOHIDPLO\GHWDFKHG      7UDQVSRUWDWLRQ&DSLWDO([SDQVLRQ)HH 7&() - 1 - ORDINANCE NO. 004, 2014 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE EXECUTION OF A NEW INTERGOVERNMENTAL AGREEMENT PERTAINING TO A REGIONAL ROAD IMPACT FEE PROGRAM, ADOPTING A REGIONAL ROAD IMPACT FEE SCHEDULE, RATIFYING FEE CHANGES AND COLLECTIONS MADE IN THE PAST, AND AMENDING SECTION 7.5-85(d) OF THE CODE OF THE CITY OF FORT COLLINS PERTAINING TO THE REMITTANCE TO THE COUNTY OF THE COLLECTED FEES WHEREAS, the City is authorized under Article XX, Section 6 of the Colorado Constitution to adopt ordinances and regulations for the purpose of promoting and preserving the public health, safety and welfare of the citizens of the City, and has the full right of self- government in local municipal matters including, without limitation, the power to regulate, as matter of purely local concern, the development of real property within the City; and WHEREAS, the City Council has determined that future growth and new development in the City should contribute a proportionate share of the cost of providing the capital improvements necessary to mitigate the impacts of such growth and new development; and WHEREAS, by adoption of Chapter 7.5, Article II of the City Code, the City Council has adopted certain capital improvement expansion fees to help defray the capital cost of expanding public facilities within the City in order to accommodate new development in the City; and WHEREAS, heretofore, the County and the City have, by intergovernmental agreement, established a policy that new land development activity should bear a proportionate share of the cost of providing the new road capital improvements needed to mitigate the impacts of new growth and development on the regional road system; and WHEREAS, the Larimer County Commissioners and the City Council have determined that the imposition of a regional road impact fee is an effective method to ensure that new development bears a proportionate share of the costs of the new road capital improvements necessary to accommodate new development and that such fee promotes and protects the public’s health, safety and welfare; and WHEREAS, Larimer County and the City have the authority to cooperate in adopting regional fees for such purposes pursuant to the Colorado Constitution, the Colorado statutes and the Charter of the City of Fort Collins; and WHEREAS, it is the objective of Larimer County and the City to make the most efficient use of their powers by jointly implementing planning, zoning and subdivision requirements and by the adoption of transportation master plans for the provision of new road capital improvements in order to maintain the adopted level of service on those roads; and WHEREAS, in 2000, pursuant to Article XIV, Sections 18 (2)(a) and (b) of the Colorado Constitution; Sections 29-20-105 and 29-1-102, C.R.S.; and Article II, Section 16 of the Fort - 2 - Collins City Charter, the City and Larimer County entered into an intergovernmental agreement to implement joint planning, zoning and subdivision requirements by the adoption of a regional capital improvement expansion fee program for the purpose of providing road capital improvements for the regional road system (the “Intergovernmental Agreement”); and WHEREAS, the Intergovernmental Agreement was authorized by the City Council pursuant to Resolution 2000-24, adopted on February 1, 2000; and WHEREAS, the term of the Intergovernmental Agreement has expired; and WHEREAS, staff has recommended that a new Intergovernmental Agreement be approved because projections show that there will be continued growth and development in the region over the next twenty years which will continue to increase the demand for capacity on the regional road system; and WHEREAS, pursuant to the Intergovernmental Agreement, Chapter 7.5, Article IV of the City Code provides for the imposition and collection of the Regional Transportation Capital Improvement Expansion Fee; and WHEREAS, City Code Section 7.5-8(c) states that the amount of the fee will be in accordance with a fee schedule approved by the City Council by ordinance; and WHEREAS, since 2008 through 2010, the fee amounts imposed by the City were in accordance with the amounts approved by Larimer County, but such amounts had not been submitted to the City Council for approval; and WHEREAS, the fee amounts imposed since 2010 have remained at the 2010 level; and WHEREAS, the City Council has determined that a new Intergovernmental Agreement should be executed for a period of ten years with a provision for subsequent automatic renewal, and that all fee changes and fees collected previously should be ratified and that a new fee schedule should be adopted and approved. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby authorizes the Mayor to execute a new Regional Road Impact Fee Intergovernmental Agreement for a ten-year term with subsequent automatic renewals, in substantially the form attached hereto as Exhibit “A,” with such additional terms and conditions as the City Manager, in consultation with the City Attorney, determines to be necessary and appropriate to protect the interests of the City or effectuate the purpose of this Ordinance. Section 2. That the City Council hereby ratifies all past fee changes and fees collected under the Intergovernmental Agreement from 2008 to the present. - 3 - Section 3. That the City Council hereby adopts and approves a new fee schedule as required pursuant to Section 7.5-82(c)(1) of the City Code, which fee schedule is attached hereto as Exhibit “B.” Section 4. That Section 7.5-85(d) of the Code of the City Fort Collins is hereby amended to read as follows: d) Establishment of trust fund. There is hereby established the Regional Transportation Capital Expansion Fee Trust Fund for the purpose of assuring that feepayers receive sufficient benefit for regional transportation expansion fees paid. All regional transportation capital improvement expansion fees collected by the Financial Officer pursuant to this Division shall be paid over to the County by the City, less a two- percent administration fee, on a quarterly basis; provided, however, that all such regional road impact fee revenues shall be held in an interest-bearing account by the City for one (1) year from the date of collection of the same until the close of each quarter year before being forwarded, together with accrued interest thereon, to the Regional Impact Fee Administrator. Upon receipt, said fee revenues shall be forthwith deposited by the County into a Regional Transportation Capital Improvement Expansion Fee Trust Fund (the "Trust Fund"). Any proceeds in the Trust Fund not immediately necessary for expenditure shall be invested in an interest-bearing account. All income derived from these investments shall be retained in the Trust Fund. Records of the Trust Fund accounts shall be available for public inspection in the County's Regional Road Impact Fee Administrator's office, during normal business hours. All monies within the Trust Fund shall be expended only as provided in this Article. Introduced, considered favorably on first reading, and ordered published this 7th day of January, A.D. 2014, and to be presented for final passage on the 21st day of January, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk - 4 - Passed and adopted on final reading on the 21st day of January, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk 1 Exhibit A REGIONAL ROAD IMPACT FEE INTERGOVERNMENTAL AGREEMENT This Regional Road Impact Fee Intergovernmental Agreement (hereinafter “Intergovernmental Agreement”) is entered into, made, and enacted this _____ day of ____________, 2013, by and between the Board of County Commissioners of Larimer County, Colorado (hereinafter referred to as “the County”) and the Governing Body of the City of Fort Collins, Colorado, a Colorado municipal corporation (hereinafter the “City”); W I T N E S S E T H: WHEREAS, the Region consists of the entirety of the unincorporated County and the incorporated area of the City; and WHEREAS, the County and the City recognize that there is a Regional Road System that connects urban areas; and WHEREAS, Larimer County is updating the “Larimer County Transportation Master Plan” and preparing an impact fee study (the “Larimer County Road Capital Expansion Fee Study”); and WHEREAS, projections show that there will be continued growth and development in the Region over the next twenty (20) years which will increase the demand for capacity on the Regional Road System; and WHEREAS, the City and the County agree that new land development activity shall bear a share of the cost of the provision of new road capital improvements required by new growth and development on the Regional Road System; and WHEREAS, the County and the City have determined that the imposition of a regional road impact fee is an effective method to ensure that new development bears a share of the costs of the road capital improvements necessary to accommodate new development and that such fee promotes and protects the public health, safety and welfare; and WHEREAS, a regional impact fee that contributes to the funding of the cost of the implementation of the Master Plan of the County, including the Larimer County Transportation Master Plan and the Comprehensive Plan of the City is in the best interests of the City and the County; and 2 WHEREAS, the County and the City have the authority to adopt a regional road impact fee pursuant to the Colorado Constitution and the Colorado statutes; and WHEREAS, it is the objective of the County and the City to make the most efficient use of their powers by jointly implementing planning, zoning, and subdivision requirements by the adoption of a regional road impact fee program for the provision of road capital improvements for the Regional Road System in order to maintain an adopted level of service on those roads; and WHEREAS, pursuant to Art. XIV, Sec. 18(2)(a) and (b), Col. Const.; Secs. 29-20-105 and 29-1-102, C.R.S.; and Article II, Section 16 of the Fort Collins City Charter, the County and the City desire to enter into this Intergovernmental Agreement to implement joint planning, zoning, and subdivision requirements by the adoption of a regional road impact fee program for the purpose of providing road capital improvements for the Regional Road System in order to maintain an adopted level of service on those roads; and WHEREAS, pursuant to this Intergovernmental Agreement, the County and City desire to designate this joint responsibility of planning for and administering this regional road impact fee program to Larimer County. NOW, THEREFORE, pursuant to the provisions of Art. XIV, Sec. 18(2)(a) and (b), Col. Const., Secs. 29-20-105 and 29-1-102, C.R.S., and Article II, Section 16 of the Fort Collins City Charter, and in consideration of the mutual promises contained herein and for other good and valuable consideration, it is hereby agreed by and between the parties hereto as follows: 1. Purpose. The purpose of this Intergovernmental Agreement is to make the most efficient use of the powers of the County and the City to implement a regional road impact fee program that contributes toward the provision of adequate road facilities on the Regional Road System to accommodate new growth and development. 2. Agreement to jointly Exercise Powers. The County and the City agree to jointly use their planning, zoning, and subdivision authority to plan for and implement a regional road impact fee program for the Region. 3. Joint Responsibilities. The City agrees and Larimer County accepts the general responsibility to plan for, implement and administer the regional road impact fee program for the Region. More specifically, Larimer County's responsibilities shall include the following: a . Planning Responsibilities/Preparation of Region's Capital Improvement Program (CIP). To conduct a transportation study of the Region and prepare the Regional Road CIP and, from time-to-time update such CIP. After its preparation, the Regional Road Impact Fee program shall not be effective within the 3 jurisdiction of the City until the Regional Road CIP or applicable update thereof is approved by the City Engineer as its own Regional Road CIP. b. Implementation Responsibilities/Preparation of Regulation. To prepare and present to the City, a proposed Regional Road Impact Fee regulation to implement the Regional Road CIP and to ensure that new growth and development will bear a proportionate share of the cost of the provision of road capital improvements on the Regional Road System required by the impacts of such development. c. Administrative Responsibilities of Program. The administration of the regional road impact fee program, including appointment by the Board of County Commissioners of Larimer County of a Regional Road Impact Fee Administrator, who shall be responsible for the day-to-day administration of the regional road impact fee program in the County, with assistance from the City. Specifically, the Regional Road Impact Fee Administrator shall be responsible for the following: (i) Administration of independent fee calculation studies, credits, and refunds. (ii) Receipt of the regional road impact fees from the City, less an administrative fee charged by the City not to exceed two (2) percent per annum shall be delivered to the County Regional Road Impact Fee Administrator on a quarterly basis each year. The Regional Road Impact Fee Administrator shall transfer these funds into an interest bearing Trust Fund. (iii) Administration of the expenditure of regional road impact fee funds in the Trust Fund. The Regional Road Impact Fee Administrator shall, upon request by the City, prepare a report and recommendation regarding the proposed expenditures of trust fund monies for Regional Roads, and promptly submit the same to the City. After review of the recommendation, the City shall approve or modify the recommended expenditures of trust fund monies. Expenditures shall be limited to those road capital improvement projects included in the Regional Road CIP and approved for expenditure by the City. If, within a period of three (3) consecutive years from the date that Regional Road Impact fee revenues are first forwarded to the Regional Road Impact Fee Administrator by the City, the parties have been unable to agree upon a plan of expenditure for such funds, all monies theretofore transmitted to the Regional Road Impact Fee Administrator shall be returned to the City, together with a proportionate share of the accrued interest on said funds, and all obligations of the parties under this Agreement shall cease. The City shall 4 refund said funds to the feepayers or to their successors in interest in those instances where developments subject to the fee have been sold by the feepayers. (iv) Any fees collected by the City under the authority of this Agreement shall be returned by the County to the feepayer or the feepayer's successor in interest (if the development subject to the fee has been sold by the feepayer) if the fees have not been spent within seven (7) years from the date the building permit for the development was issued, along with the interest earned on the fee. Fees shall be deemed to be spent on the basis of the first fee collected shall be the first fee spent. The refund shall be administered by the Regional Road Impact Fee Administrator. (v) Initiation of a review of the Regional Road Impact Fee Study, Regional Road CIP and the Regional Road Impact Fee Regulation of the County and the City will be conducted by the parties every three (3) years to determine if any modifications need to be made to the program. Before any modifications to the Regional Road Study take effect, they shall be approved by the City Council and the Board of County Commissioners. 4. Duration. The duration of the Intergovernmental Agreement shall be for ten (10) years from the date hereof and shall be automatically renewed for successive ten (10) year periods unless terminated by either party. Either party may terminate this Agreement at the close of any ten (10) years period by the giving of written notice of termination to the other party not less than thirty (30) days prior to the close of the ten (10) year period than in effect. 5. Claims and Lawsuits. In the event that the Regional Road Impact Fee to be imposed by the City under this Agreement is challenged by any party through the filing of a notice of claim with the City under the Colorado Governmental Immunity Act or the commencement of any litigation, the County and the City agree to pay their own costs and attorneys’ fees related to such claim or litigation. However, the County further agrees, immediately upon receiving any notice from the City of the filing of such a notice of claim or the commencement of such litigation, to segregate and hold in a separate account the full amount of any fee revenues theretofore delivered to the County by the City which are, or may be, the subject of such notice of claim or litigation, provided that such fee revenues have not been expended or encumbered by the County, pursuant to a fully executed agreement between the County and a third party, for the purpose of designing, engineering or installing improvements for regional roads, or acquiring rights- of-way for such regional roads. Such amounts shall be held by the County and not expended until the dispute that is the subject of the notice of claim or litigation has been finally resolved, either by agreement or by a final decision of any court having jurisdiction over the matter, at which time said fee revenues shall be expended, to the 5 extent they are sufficient, to satisfy any amount due to the claimant(s) or plaintiff(s) pursuant to the terms of any settlement agreement or final court decision. The City shall have the right, in its sole discretion, to settle any such claims or lawsuits, utilizing, if necessary in the City’s judgment, the full amount of the funds held by the County under this provision. 6. Termination. Either party shall have the authority to terminate its participation in this Intergovernmental Agreement and the Regional Road Impact Fee Program if the other party materially fails to comply with the terms of this Agreement or materially modifies the Regional Road CIP and the Regional Road Impact Fee regulation within its jurisdiction without the consent of the terminating party. Following any such termination, the parties shall negotiate in good faith to agree upon the regional road improvements to be funded by any regional road impact fee revenues theretofore forwarded to the County by the City and remaining in the trust fund as of the date of termination. In the event that, within six (6) months from the date of termination, the parties have not been able to reach agreement with regard to any such proposed expenditures, the remaining amount of City funds in the trust fund shall be forthwith returned to the City, together with all accrued interest on said funds, and all other obligations of the parties under this Agreement shall cease. BOARD OF COMMISSIONERS LARIMER COUNTY, COLORADO By: ___________________________________ Chair ATTEST: ___________________________ Deputy and Clerk of the Board CITY OF FORT COLLINS, COLORADO a Colorado municipal corporation By: __________________________________ Mayor ATTEST: _________________________ City Clerk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µ2WKHU¶8VH $XWR6DOHV    $XWR6HUYLFH5HSDLU7LUH6WRUH    %DQN    %XLOGLQJ0DWHULDOV+DUGZDUH1XUVHU\    &RQYHQLHQFH6WRUH    'LVFRXQW6WRUH    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