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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 05/17/2011 - SECOND READING OF ORDINANCE NO. 059, 2011, AUTHORI DATE: May 17, 2011 STAFF: Ann Turnquist • • • Second 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, adopted 6-1 on First Reading on May 3, 2011, 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. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary- May 3, 2011 (w/o attachments) ATTACHMENT 1 DATE: May 3, 2011 A STAFF: Ann Turnquist • ' a M 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 t s wr Since 1998, the City of Fort Collins h�aste Ieyted�i�a fee-in' +�lieui 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/ DISCUSSIONS 1� I�l 11 ! � 1`� In April, 1998, the City of Fort Collins and�hompso�antl 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'ref cts the'Di rst ict's m kra et'analysis of land values,which has declined over recent years. By State law, Coloradolschool districts are not permittetl tocollect a fee for the cost of the construction of schools as part of the development,process They do not have the abililgto obtain revenue from impact fees. In 1996, the Colorado Supreme CourNou,nd/tl at\countie's ale 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 $1,800 �$j1 600 5 or more attached dwelling units $900 $ 800 The City's Intergovernmental Agreements:w ti h P� dre School D�ct 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 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 reduction requested byPoudre School,D\strict. 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$200 per single family unit. Multi-family unit fees (ver_� units)5jan reduced by$j i 100 per dwelling unit. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. PUBLIC OUTREACH /� This action was considered at a public g oflth P dre S� ard./No City outreach has been conducted. Ulu L1 ATTACHMENTS 1. Email from Ed Holder, Poudre School District, RE: Land Dedication or Payment in Lieu Agreements 2. Powerpoint presentation COPY COPY 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. DL ayor ATTEST: sr 0 City Clerk �+rR Passed and adopted on final reading on the 17th day of May, A.D. 2011. Mayor ATTEST: City Clerk I Exhibit A Poudre School District 2011112 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 '/z Category A Middle School 0.10 '/2 Category A High School 0.09 '/z 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 $89,000 '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 $89,000 = $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 $ 890 0.005 acres $445 School Middle School 0.0040 acres $ 355 0.002 acres $177.50 High School 0.0040 acres $ 355 0.002 acres $177.50 Total 0.0180 $1,600 0.009 acres $800 acres 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) ' PILO means payment-in-lieu-of land dedication