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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/01/2015 - SECOND READING OF ORDINANCE NO. 148, 2015, AMENDINAgenda Item 3 Item # 3 Page 1 AGENDA ITEM SUMMARY December 1, 2015 City Council STAFF Tiana Smith, Revenue and Project Manager Mike Beckstead, Chief Financial Officer SUBJECT Second Reading of Ordinance No. 148, 2015, 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. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on November 17, 2015, updates the City Code, which requires an annual adjustment to certain building permit related fees. Capital Improvement Expansion fees and Neighborhood Parkland fees are to reflect 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 1.0% since its last adjustment and the ENR has not changed significantly enough to warrant an adjustment. These increases will go into effect on January 1, 2016. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, November 17, 2015 (PDF) 2. Ordinance No. 148, 2015 (PDF) Agenda Item 8 Item # 8 Page 1 AGENDA ITEM SUMMARY November 17, 2015 City Council STAFF Tiana Smith, Revenue and Project Manager Mike Beckstead, Chief Financial Officer SUBJECT First Reading of Ordinance No. 148, 2015, 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. EXECUTIVE SUMMARY The purpose of this item is to update the City Code, which requires an annual adjustment to certain building permit related fees. Capital Improvement Expansion fees and Neighborhood Parkland fees are to reflect 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 1.0% since its last adjustment and the ENR has not changed significantly enough to warrant an adjustment. These increases will go into effect on January 1, 2016. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. 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 for the fees is to have new development pay a proportionate share of the capital improvements and equipment costs that will be necessary to provide services to new development. The Code provisions approved by Ordinance No. 051, 1996, 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 Neighborhood 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 have been adjusted for inflation in 1997-2007, along with the Capital Improvement Expansion fees. In 2013, Council adopted Ordinance No. 120, 2013, which updated the residential and commercial fees to the current level of service. The residential fees were implemented at 100% effective October 3, 2013 and the commercial fees were implemented in a phased approach at 60% in October, 2013, 80% in 2015 and 100% in 2016. 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 1.0% for 2016. This Ordinance adjusts the fee schedules described in Chapter 7.5 of the City Code to account for inflation and adjusts the commercial fees to 100% of the 2013 study plus inflation. In the Ordinance, all amounts for the capital improvement expansion fees have ATTACHMENT 1 Agenda Item 8 Item # 8 Page 2 been rounded to the nearest dollar. These changes will go into effect on January 1, 2016. CITY FINANCIAL IMPACTS 2016 Capital Expansion Fees Table 2016 Update to Capital Expansion Fees When Finance undertook this effort in 2013, it committed to re-evaluate the capital expansion fees on a 3-5 year cycle. In 2016 Finance will hire a consultant to conduct a study to update the capital expansion fees for the next 3-year cycle. PUBLIC OUTREACH This is an update to an ordinance passed in 2013 by City Council taking the commercial capital expansion fees up to the agreed upon 100% phased-in amount after three years. Extensive public outreach was completed in 2013. There was no public outreach for this update completed in 2015. N'hood Comm. Gen. Land Use Type Unit Park Park Fire Police Gov't Total Updated Fees Resid., up to 700 sf Dwelling $1,262 $1,069 $272 $137 $321 $3,061 Resid., 701-1,200 sf Dwelling $1,619 $1,373 $346 $173 $410 $3,921 Resid., 1,201-1,700 sf Dwelling $1,788 $1,516 $384 $192 $452 $4,332 Resid., 1,701-2,200 sf Dwelling $1,863 $1,580 $399 $200 $473 $4,515 Resid., over 2,200 sf Dwelling $1,996 $1,692 $427 $214 $507 $4,837 Commercial 100% 1,000 sf $0 $0 $329 $165 $780 $1,274 Industrial 100% 1,000 sf $0 $0 $78 $40 $183 $300 2016 Updated CIE Fees ORDINANCE NO. 148, 2015 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 City’s home rule powers and authority is the power to regulate, as a matter of purely local concern, the development of real property within the City and the authority to fund and construct, as matters of purely location concern, public improvements; 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 has adopted Ordinance No. 051, 1996, establishing certain capital improvement expansion fees; and WHEREAS, City Code Section 7.5-18 provides for annual adjustment in all capital improvement expansion fees for inflation, corresponding to the increases reflected in the Denver- Boulder Consumer Price Index for Urban Consumers, now known as the Denver-Boulder- Greeley Consumer Price Index for Urban Consumers (the “CPI”); and WHEREAS, in September 1968, the 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 CPI; and WHEREAS, based on the Bureau of Labor Statistics’ most recent CPI, staff anticipates the Index will reflect an inflation increase of 1.0 percent since the last annual adjustment, effective January 1, 2016; and 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 not changed significantly 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, be increased to reflect inflation as determined by the CPI. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS AS FOLLOWS: Section 1. That the City Council hereby makes any and all determinations and findings contained in the recitals set forth above. Section 2. That effective January 1, 2016, 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 $1,069.00 701 to 1,200 sq. ft. 1,373.00 1,201 to 1,700 sq. ft. 1,516.00 1,701 to 2,200 sq. ft. 1,580.00 2,201 sq. ft. and over 1,692.00 Section 3. That effective January 1, 2016, 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 $ 137.00 701 to 1,200 sq. ft. 173.00 1,201 to 1,700 sq. ft. 192.00 1,701 to 2,200 sq. ft. 200.00 2,201 sq. ft. and over 214.00 Commercial buildings (per 1,000 sq ft.) 165.00 Industrial buildings 40.00 (per 1,000 sq. ft.) Section 4. That effective January 1, 2016, 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 $ 272.00 701 to 1,200 sq. ft. 346.00 1,201 to 1,700 sq. ft. 384.00 1,701 to 2,200 sq. ft. 399.00 2,201 sq. ft. and over 427.00 Commercial buildings (per 1,000 sq ft.) 329.00 Industrial buildings (per 1,000 sq. ft.) 78.00 Section 5. That effective January 1, 2016, 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 $ 321.00 701 to 1,200 sq. ft. 410.00 1,201 to 1,700 sq. ft. 452.00 1,701 to 2,200 sq. ft. 473.00 2,201 sq. ft. and over 507.00 Commercial buildings (per 1,000 sq ft.) 780.00 Industrial buildings (per 1,000 sq. ft.) 183.00 Section 6. That effective January 1, 2016, the fee schedule in Section 7.5-71(b) of the Code of the City of Fort Collins, establishing the Neighborhood Parkland Fee, is hereby amended to read as follows: 700 sq. ft. and under $1,262.00 701 to 1,200 sq. ft. 1,619.00 1,201 to 1,700 sq. ft. 1,788.00 1,701 to 2,200 sq. ft. 1,863.00 2,201 sq. ft. and over 1,996.00 Section 7. That except as expressly amended in this Ordinance, all other provisions in City Code Sections 7.5-28(a), 7.5-29(a), 7.5-30(a), 7.5-31(a), and 7.5-31(b) shall remain unchanged and in full force and effect. Introduced, considered favorably on first reading, and ordered published this 17th day of November, A.D. 2015, and to be presented for final passage on the 1st day of December, A.D. 2015. Mayor ATTEST: Deputy City Clerk Passed and adopted on final reading on the 1st day of December, A.D. 2015. Mayor ATTEST: City Clerk