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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/18/2018 - SECOND READING OF ORDINANCE NO. 147, 2018, ADOPTINAgenda Item 4 Item # 4 Page 1 AGENDA ITEM SUMMARY December 18, 2018 City Council STAFF Kyle Lambrecht, Civil Engineer Timothy Kemp, Civil Engineer III Chad Crager, Director of Infrastructure Services Chris Van Hall, Legal SUBJECT Second Reading of Ordinance No. 147, 2018, Adopting the 2019 Larimer County Regional Transportation Capital Expansion Fee Schedule. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on December 4, 2018, adopts the 2019 Larimer County Regional Transportation Capital Expansion Fee Schedule (Regional Road Fee) as determined by the Intergovernmental Agreement with Larimer County. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary December 4, 2018 (w/o attachments) (PDF) 2. Ordinance No. 147, 2018 (PDF) Agenda Item 8 Item # 8 Page 1 AGENDA ITEM SUMMARY December 4, 2018 City Council STAFF Kyle Lambrecht, Civil Engineer Timothy Kemp, Civil Engineer III Chad Crager, Director of Infrastructure Services Chris Van Hall, Legal SUBJECT First Reading of Ordinance No. 147, 2018, Adopting the 2019 Larimer County Regional Transportation Capital Expansion Fee Schedule. EXECUTIVE SUMMARY The purpose of this item is to adopt the 2019 Larimer County Regional Transportation Capital Expansion Fee Schedule (Regional Road Fee) as determined by the Intergovernmental Agreement with Larimer County. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION In 2000, the City of Fort Collins and Larimer County entered into an Intergovernmental Agreement (IGA) authorizing the City to collect Larimer County Regional Road Fees (RRF) on behalf of Larimer County. The RRF are collected with the issuance of a building permit. The RRF generates revenue for road improvements on regionally significant roadways that are necessitated by new development. The RRF are only used on capacity- related improvements that mutually benefit both the City and Larimer County. Since 2000, the City and Larimer County have collected $6,023,061 in RRF. Per the agreement, Larimer County serves as the RRF administrator and is responsible to develop project recommendations for fee utilization. Larimer County’s recommendations are typically based on the County’s Transportation Master Plan, a document which identifies regionally significant roadways. Once a project has been identified, City and County staff work together to determine RRF funding allocations. RRF are frequently leveraged with other funds to support larger scale capital projects and can fully support small scale capacity- related improvements. The City and Larimer County have partnered to design and construct several projects along regionally significant roadways, including improvements to Taft Hill Road, Shields Street, and the Shields Street/Vine Drive intersection. City and County staff continue to plan for future improvements, recognizing opportunities for additional improvements along regionally significant corridors. The Larimer County Land Use Code specifies that its RRF must be updated annually to reflect changes in road construction costs during the previous year. The updated fees typically become effective on the first day of July. Unless a fee study recommends otherwise, the standard fee adjustment methodology is based on a two-year moving average calculated from the Colorado Construction Cost Index data compiled by the Colorado Department of Transportation. The most recent RRF schedule formally adopted by the City of Fort Collins was the 2015 fee schedule. ATTACHMENT 1 COPY Agenda Item 8 Item # 8 Page 2 In April 2018, the County completed a study recommending changes to the program’s fee calculation methodology, including: • Basing transportation capital expansion fees for residential developments on dwelling size as opposed to dwelling type. • Consolidating the non-residential development categories to three primary categories; Industrial, Commercial, and Office and Other Services • Revising the fee methodology to use Vehicle Miles Traveled (VMT) as the basis for determining impact, instead of trips generated. The use of vehicle miles traveled to determine impacts to a municipality’s transportation network more accurately ties the fee to demand on the transportation system and is considered a best management practice by the infrastructure financing strategies industry. This methodology is similar to how the City determines its Transportation Capital Expansion Fees (TCEF) and results in a new fee schedule for the Regional Road Fees: Development Type 2019 Regional Road Fee 2015 Regional Road Fee Increase or Decrease Percent Change Residential (per dwelling) by Finished Square Foot of Living Space 900 or less $163 $211 ($48) (23%) 901 to 1300 $228 $211 $17 8% 1301 to 1800 $275 $302 ($27) (9%) 1801 to 2400 $322 $302 $20 7% 2401 to 3000 $361 $302 $59 20% 3001 to 3600 $393 $302 $91 30% 3601 or more $420 $302 $118 39% Non-Residential (per 1000 Square Feet of Floor Area) Industrial $100 $257 ($157) (61%) Commercial $422 $837 ($415) (50%) Office & Other Services $248 $432 ($184) (43%) In general, RRFs for single family detached homes will increase while RRFs for non-residential developments will decrease. The revised Regional Road Fees were adopted by Larimer County in July 2018. Under the City Code, revisions to the RRF do not take effect in the City until Council approves a new fee schedule. At the December 4, 2018 Council Meeting, City staff is presenting revisions to the current City Capital Expansion and Transportation Capital Expansion Fees for consideration. Staff has aligned the consideration for adoption of the RRF with consideration for adoption of the City’s Capital Expansion Fees to provide Council a holistic view of the total cost impacts associated with the various expansion fees collected from new development by the City. The County is aware of this difference in adoption schedule. If the RRF are included as part of a City managed construction project, one percent of the funds will be allocated for public art. CITY FINANCIAL IMPACTS The RRFs are collected on behalf of Larimer County and the program. Revenues from the RRFs will pass through City accounts and will not affect City revenue limits under Article X, Section 20. The City does retain a 2% administration fee. Adoption will result in an increase to development fee payers. BOARD / COMMISSION RECOMMENDATION COPY Agenda Item 8 Item # 8 Page 3 Staff presented the proposed Regional Road Fee revisions to the City of Fort Collins Council Finance Committee at the September 17, 2018, meeting (Attachment 1). PUBLIC OUTREACH As these fees are imposed by Larimer County, County staff served as the lead during public outreach. County staff conducted two stakeholder meetings, two joint work sessions with both the County Planning Commission and the Board of County Commissioners, and a public hearing at both the Planning Commission and a regular meeting of the Board of County Commissioners. (Attachments 2-5). ATTACHMENTS 1. City Finance Committee Meeting Minutes, September 17, 2018 (draft) (PDF) 2. Larimer County Board of Commissioners Minutes, April 9, 2018 (PDF) 3. Larimer County Board of Commissioners Minutes, May 21, 2018 (PDF) 4. Larimer County Planning Commission Minutes, March 21, 2018 (PDF) 5. Larimer County Planning Commission Minutes, April 18, 2018 (PDF) COPY -1- ORDINANCE NO. 147, 2018 OF THE COUNCIL OF THE CITY OF FORT COLLINS ADOPTING THE 2019 LARIMER COUNTY REGIONAL TRANSPORTATION CAPITAL EXPANSION FEE SCHEDULE WHEREAS, the City and Larimer County (the “County”) previously entered into an intergovernmental agreement, pursuant to Resolution 2000-024, whereby the City collects a Regional Transportation Capital Expansion Fee (also known as a “regional road impact” fee) on behalf of Larimer County at the time of issuance of building permits, which fee raises revenue for road improvements on regionally significant roadways that are necessitated by new development; and WHEREAS, the City and the County have established a procedure pursuant to City Code Section 7.5-82(c)(1) for the City Council to consider and approve any County-proposed changes to the Regional Transportation Capital Expansion Fee schedule in order to reflect changes in construction costs, or other relevant factors (the “Regional TCEF Schedule”); and WHEREAS, the last changes to the Regional TCEF Schedule were formally adopted by the City in 2015 and the County is now proposing changes to the Regional TCEF Schedule to modify its methodology towards a progressive fee for residential uses, based on square footage, while retaining a constant rate for industrial, commercial and office and other services; and WHEREAS, this proposed methodology is similar to the methodology the City currently uses for determining similar fees and this Regional TCEF Schedule will completely replace and supersede the prior 2015 Regional TCEF Schedule; and WHEREAS, the City Council has determined that it is in the best interests of the City that the County’s proposed changes to the Regional TCEF Schedule be adopted in order to further the public interest of adequately funding road improvements that are necessitated by new developments along regionally significant roadways that impact the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That the 2019 Larimer County Regional Transportation Capital Expansion Fee Schedule (also known as the Regional Road Fee Schedule) attached hereto as Exhibit “A” and incorporated herein by reference is hereby adopted and approved, and shall go into effect in Fort Collins upon the effective date of this Ordinance. -2- Introduced, considered favorably on first reading, and ordered published this 4th day of December, A.D. 2018, and to be presented for final passage on the 18th day of December, A.D. 2018. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 18th day of December, A.D. 2018. __________________________________ Mayor ATTEST: _______________________________ City Clerk LARIMER COUNTY | ENGINEERING DEPARTMENT P.O. Box 1190, Fort Collins, Colorado 80522-1190, 970.498.5700, Larimer.org Transportation Capital Expansion Fee Schedule Effective July 1, 2018 Land Use Type County Road TCEF Regional Road TCEF Total Per Unit Residential (per Dwelling) by Square Feet of Finished Living Space 900 or less (Square Feet) $1,946 $163 $ 2,109 901-1300 (Square Feet) $2,727 $228 $ 2,955 1301-1800 (Square Feet) $3,284 $275 $3,559 1801-2400 (Square Feet) $3,846 $322 $4,168 2401-3000 (Square Feet) $4,315 $361 $4,676 3001-3600 (Square Feet) $4,699 $393 $5,092 3601 or more (square Feet) $5,020 $420 $5,440 Nonresidential (per 1,000 Square Feet of Floor Area) Industrial $1,196 $100 $ 1,296 Commercial $5,039 $422 $ 5,461 Office and other Services $2,965 $248 $ 3,213  The fee is based on the current Larimer County Transportation Capital Expansion Fee (TCEF) Study. The complete TCEF Study and TCEF Sections of the Larimer County Land Use Code (LCLUC Sections 9.5 and 9.6) are found at www.larimer.org/engineering/development-review under the Capital Expansion Fee header.  The “Residential” tiered fee schedule based on square footage applies to building permits for new residential structures with an application date after June 30, 2018. For new residences constructed after this date, the TCEF will also be applied to any new or additional finished living space square footage, including permits for additions and basement finishes. In such cases, the total fee due is the based on the incremental difference between the existing & proposed finished living square footage. Finished living square footage excludes unfinished basements, attics, and garage floor area. The “Residential” tiered fee structure will not be applied to additions or finishes of existing living space IF the original residential building permit was issued before July 1, 2018.  The “Nonresidential” fee schedule is based on building use and total square feet. The TCEF applies to new square footage and to changes of use of existing square footage of three general nonresidential categories that are further defined below: o “Industrial” includes the processing or production of goods, along warehousing, transportation, communications, and utilities. o “Commercial” includes retail development and eating/drinking places, along with entertainment uses often located in a shopping center (e.g. movie theater). o “Office & Other Services” includes offices, health care and personal services, business services (e.g. banks) and lodging. Public and quasi-public buildings that provide educational, social assistance, or religious services are also included in this category. EXHIBIT A