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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/20/2012 - SECOND READING OF ORDINANCE NO. 121, 2012, AMENDINDATE: November 20, 2012 STAFF: John Voss Jessica Ping-Small AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 9 SUBJECT Second Reading of Ordinance No. 121, 2012, Amending the City Code to Increase the Amounts of the Capital Improvement Expansion Fees Contained in Chapter 7.5 of the City Code so as to Reflect Inflation in Associated Costs of Services. EXECUTIVE SUMMARY The City Code requires annual adjustments to certain building permit related fees. Capital Improvement Expansion fees and Neighborhood Parkland fees 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). The CPI has increased 1.8% and the ENR has increased 1.6%. Additionally the Code is being updated to reference to the most recent amended manual, The ITE Trip Generation Manual, 8th Edition, 2008. This Ordinance was unanimously adopted on First Reading on November 6, 2012. BACKGROUND / DISCUSSION On First Reading on November 6, 2012, additional information was requested about the 2012 projected ending balances and a description of how the monies can be spent. Rate Changes 2010 2011 2012 2013 Fee Type Authorized Authorized Authorized Proposed Community Parkland Fees 0.00% 1.10% 3.80% 1.80% Police Capital Expansion Fees 0.00% 1.10% 3.80% 1.80% Fire Protection Capital Expansion Fees 0.00% 1.10% 3.80% 1.80% General Government Capital Fees 0.00% 1.10% 3.80% 1.80% Neighborhood Parkland Fees 0.00% 1.10% 3.80% 1.80% Street Oversizing Fees 0.00% 5.48% 7.55% 1.60% 1. Community Parkland Fees: Expenditures shall be made for the acquisition, construction and development of capital improvements related to the provision of community parklands. • Fund Balance as of 12/31/2012: $8,750,000 • Offers Funded in the 2013 Budget: $1,270,000 2. Police Capital Expansion Fees: Expenditures shall be made for the acquisition, construction and development of capital improvements related to the provision of police services as described in the capital improvements plan for police services. • Fund Balance as of December 31, 2012: $960,000. The balance is being used to pay debt service on new Police Facility. 3. Fire Protection Capital Improvement Expansion Fees: Expenditures shall be made for the acquisition, construction and development of capital improvements related to the provision of fire protection services to City residents, as described in the capital improvements plan for fire protection. • Fund Balance as of December 31, 2012: $190,000. The balance is being used by Poudre Fire Authority to pay debt service on Station #4. November 20, 2012 -2- ITEM 9 4. General Government Capital Expansion Fees: Expenditures shall be made for the purpose of funding capital improvements related to the provision of general governmental services. • Fund Balance as of December 31, 2012: $ 6,030,000 of which $5,000,000 has been loaned to the URA for North College Marketplace and JAX, leaving only $1,030,000 in liquid investments, it was not anticipated this money was needed before the loan will be repaid. 5. Neighborhood Parkland Fees: Expenditures shall be made for approved purposes for the acquisition, development and administration of neighborhood parks, including purchases of new or replacement park site equipment and plantings. • Fund Balance as of December 31, 2012: $5,580,000 • Offers Funded in 2013 Budget: $750,000 • Offers Funded in 2014 Budget: $1,050,000 5. Street Oversizing Fees: Expenditures shall be made for construction of arterial and collector streets. • Fund Balance as of December 31, 2012: $7,860,000 STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary - November 6, 2012 (w/o attachments) COPY COPY COPY COPY ATTACHMENT 1 DATE: November 6, 2012 STAFF: John Voss Jessica Ping-Small AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 15 SUBJECT First Reading of Ordinance No. 121, 2012, Amending the City Code to Increase the Amounts of the Capital Improvement Expansion Fees Contained in Chapter 7.5 of the City Code so as to Reflect Inflation in Associated Costs of Services. EXECUTIVE SUMMARY The City Code requires annual adjustments to certain building permit related fees. Capital Improvement Expansion fees and Neighborhood Parkland fees 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). The CPI has increased 1.8% and the ENR has increased 1.6%. Additionally the Code is being updated to reference to the most recent amended manual, The ITE Trip Generation Manual, 8th Edition, 2008. Staff is working with a consultant who specializes in capital impact fees to re-evaluate the underlying assumptions and formulas used to calculate the City’s fees. A presentation is scheduled for a work session on February 12, 2013 and formal consideration on March 5, 2013. BACKGROUND / DISCUSSION In May 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 of the capital improvements and equipment that will be necessary to provide services to the development. The Code provisions 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 for 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 1.8% for 2013. 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. The Ordinance increases Street Oversizing Fees by 1.6% to reflect the index published in the Engineering News Record, as well as the average weekday vehicle trips as indicated by The ITE Trip Generation Manual, 8th Edition, 2008. FINANCIAL / ECONOMIC IMPACTS The 2012 revenue budget in the table below reflects changes in both the rates and volume of building activity. Summary information: Revenue 2010 2011 2012 2013 Fee Type Actual Actual Forecast Comparison Capital Expansion Fees $ 777,353 $ 1,326,962 $ 1,845,000 $ 1,878,000 Neighborhood Parkland Fees 346,749 884,092 1,253,000 1,276,000 COPY COPY COPY COPY November 6, 2012 -2- ITEM 15 Street Oversizing Fees 2,121,165 1,441,107 2,445,000 2,484,000 Rate Change 2010 2011 2012 2012 Fee Type Authorized Authorized Authorized Proposed Capital Expansion Fees 0.00% 1.10% 3.80% 1.80% Neighborhood Parkland Fees 0.00% 1.10% 3.80% 1.80% Street Oversizing Fees 0.00% 5.48% 7.55% 1.60% At year-end of 2012, staff estimates that the total available balance in the Capital Improvement Expansion Fund will be approximately $15.9 million, the Neighborhood Parkland Fund about $5.6 million, and the Street Oversizing Fund nearly $7.9 million. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. ORDINANCE NO. 121, 2012 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 CITY 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 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 calls for 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 1.8 percent since the last annual adjustment of the fees in 2012, effective January 1, 2013. WHEREAS, the City has historically used the Engineering News Record as a reference to determine whether the street oversizing capital improvement expansion fee should be increased to account for rising construction costs; and WHEREAS, based on the Engineering News record, the cost of constructing street improvements has increased 1.6 percent since the last adjustment of the Street Oversizing Capital Improvement expansion fee; 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 as set forth below. 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 $ 1,041.00 701 to 1,200 sq. ft. 1,477.00 1,201 to 1,700 sq. ft. 1,735.00 1,701 to 2,200 sq. ft. 1,996.00 2,201 sq. ft. and over 2,428.00 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 $ 75.00 701 to 1,200 sq. ft. 109.00 1,201 to 1,700 sq. ft. 129.00 1,701 to 2,200 sq. ft. 148.00 2,201 sq. ft. and over 180.00 Commercial buildings (per 1,000 square feet) 160.00 -2- Industrial buildings (per 1,000 square feet) 44.00 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 $ 112.00 701 to 1,200 sq. ft. 160.00 1,201 to 1,700 sq. ft. 186.00 1,701 to 2,200 sq. ft. 215.00 2,201 sq. ft. and over 262.00 Commercial buildings (per 1,000 square feet) 229.00 Industrial buildings (per 1,000 square feet) 63.00 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 $ 142.00 701 to 1,200 sq. ft. 201.00 1,201 to 1,700 sq. ft. 235.00 1,701 to 2,200 sq. ft. 272.00 2,201 sq. ft. and over 330.00 Commercial buildings (per 1,000 square feet) 257.00 Industrial buildings (per 1,000 square feet) 71.00 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. 7.51-71. 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 $ 937.00 701 to 1,200 sq. ft. 1,325.00 -3- 1,201 to 1,700 sq. ft. 1,559.00 1,701 to 2,200 sq. ft. 1,791.00 2,201 sq. ft. and over 2,181.00 Section 6. That Section 7.5-32 of the Code of the City of Fort Collins, regarding the Street Oversizing Capital Improvement 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 9.57 3,112 per D.U. MF and Other Housing 6.59 2,143 per D.U. Hotel/Motel 9.02 2,931 per room Apartment 6.65 2,162 per D.U. Retirement Community 2.81 914 per D.U. Assisted Living 4.52 1,470 per D.U. Congregate Care Facility 2.02 657 per D.U. Residential Condominium 5.81 1,889 per D.U. Duplex 7.18 2,335 per D.U. Townhome 5.86 1,905 per D.U. Mobile Home 4.99 1,623 per D.U. Non Residential (per 1,000 sq. ft.) Community/Shopping Center 1000K GLA 32.09 6.08 /sq. ft. 500K GLA 38.65 7.32 /sq. ft. 200K GLA 54.50 10.32 /sq. ft. 50K GLA 91.65 11.93 /sq. ft. Movie theater 78.06 14.78 /sq. ft. Fitness/racquet club 14.03 2.86 /sq. ft. Day care 79.26 6.30 /sq. ft. Government office 68.93 14.04 /sq. ft. Building materials/lumber 45.16 8.55 /sq. ft. Specialty retail 44.32 8.39 /sq. ft. Discount superstore 53.15 10.06 /sq. ft. Nursery (garden center) 36.08 7.35 /sq. ft. Sit-down restaurant 127.15 16.55 /sq. ft. Fast food with drive-up 496.12 39.46 /sq. ft. Car sales 33.34 6.79 /sq. ft. Service station 168.56/pump 13,407.17/pump Wholesale tire store 20.36 4.15 /sq. ft. Self-service car wash 5.79/stall 460.53 /stall -4- Supermarket 102.24 13.31/sq. ft. Convenience market with gas 542.60 43.16/sq. ft. Pharmacy/drugstore 88.16 7.01/sq. ft. Furniture store 5.06 1.61/sq. ft. Bank 80.87 5.98/sq. ft. Drive-in bank 148.15 11.78/sq. ft. Insurance building 11.45 2.33/sq. ft. Manufacturing 3.82 1.22/sq. ft. Warehousing 3.56 1.13/sq. ft. Light industrial 6.97 2.22/sq. ft. Mini-warehouse 2.50 0.80/sq. ft. Business park 12.76 4.06/sq. ft. General Office 200K GLA 11.54 3.67/sq. ft. 50K GLA 16.31 5.19/sq. ft. 10K GLA 24.39 7.76/sq. ft. Recreational 3.64/ac 1,158.09/acre City park 3.66/ac 1,164.46/acre Golf course 5.04/ac 1,603.52/acre Elementary school 1.29/student 410.42/student Private school (K-8) 2.48/student 789.03/student Church/synagogue 9.11 2.90/sq. ft. Library 56.24 4.47/sq. ft. Hospital 16.50 5.25/sq. ft. Nursing home 2.37/bed 754.03/bed Medical clinic 31.45 10.01/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 6th day of November, A.D. 2012, and to be presented for final passage on the 20th day of November, A.D. 2012. _________________________________ Mayor ATTEST: _____________________________ City Clerk -5- Passed and adopted on final reading on the 20th day of November, A.D. 2012. _________________________________ Mayor ATTEST: _____________________________ City Clerk -6-