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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/18/2018 - ITEMS RELATING TO 2019 CITY IMPACT FEE UPDATESAgenda Item 10 Item # 10 Page 1 AGENDA ITEM SUMMARY December 18, 2018 City Council STAFF Jennifer Poznanovic, Project and Revenue Manager John Duval, Legal SUBJECT Items Relating to 2019 City Impact Fee Updates. EXECUTIVE SUMMARY A. Second Reading of Ordinance No. 166, 2018, Amending Chapters 7.5, 8 and 24 of the Code of the City of Fort Collins to Implement Phase II Increases of the Capital Expansion Fees. B. Second Reading of Ordinance No. 167, 2018, Amending Chapter 26 of the Code of the City of Fort Collins To Revise Water Plant Investment Fees. C. Second Reading of Ordinance No. 168, 2018, Amending Chapter 26 of the Code of the City of Fort Collins To Revise Sewer Plant Investment Fees. D. Second Reading of Ordinance No. 169, 2018, Amending Chapter 26 of the Code of the City of Fort Collins To Revise Stormwater Plant Investment Fees. These Ordinances, unanimously adopted on First Reading on December 4, 2018 update impact fees for the 2019 cadence which includes Step II for all six Capital Expansion Fees (CEFs) and Utility Plant Investment Fees (PIFs). Staff has worked to coordinate the process for updating all new development related fees that require Council approval since 2016. The 2017 Capital Expansion Fee (CEF) and Transportation Capital Expansion Fee (TCEF) full fee proposals showed significant increases from the previously approved fees. Council asked for these fees to be implemented in three steps. In addition to the stepped implementation for CEFs, Council asked for a Fee Working Group to be created to foster a better understanding of impact fees prior to discussing further fee updates. The Fee Working Group meetings started in August 2017, comprised of a balanced group of stakeholders - citizens, business-oriented individuals, City staff and a Council liaison. Overall, the Fee Working Group supports the fee coordination process and proposed fee updates. STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, December 4, 2018 (w/o attachments) (PDF) 2. Ordinance No. 166, 20108 (PDF) 3. Ordinance No. 167, 2018 (PDF) 4. Ordinance No. 168, 2018 (PDF) 5. Ordinance No. 169, 2018 (PDF) Agenda Item 15 Item # 15 Page 1 AGENDA ITEM SUMMARY December 4, 2018 City Council STAFF Jennifer Poznanovic, Project and Revenue Manager John Duval, Legal SUBJECT Items Relating to 2019 City Impact Fee Updates. EXECUTIVE SUMMARY A. First Reading of Ordinance No. 166, 2018, Amending Chapters 7.5, 8 and 24 of the Code of the City of Fort Collins to Implement Phase II Increases of the Capital Expansion Fees. B. First Reading of Ordinance No. 167, 2018, Amending Chapter 26 of the Code of the City of Fort Collins To Revise Water Plant Investment Fees. C. First Reading of Ordinance No. 168, 2018, Amending Chapter 26 of the Code of the City of Fort Collins To Revise Sewer Plant Investment Fees. D. First Reading of Ordinance No. 169, 2018, Amending Chapter 26 of the Code of the City of Fort Collins To Revise Stormwater Plant Investment Fees. The purpose of this item is to update impact fees for the 2019 cadence which includes Step II for all six Capital Expansion Fees (CEFs) and Utility Plant Investment Fees (PIFs). Staff has worked to coordinate the process for updating all new development related fees that require Council approval since 2016. The 2017 Capital Expansion Fee (CEF) and Transportation Capital Expansion Fee (TCEF) full fee proposals showed significant increases from the previously approved fees. Council asked for these fees to be implemented in three steps. In addition to the stepped implementation for CEFs, Council asked for a Fee Working Group to be created to foster a better understanding of impact fees prior to discussing further fee updates. The Fee Working Group meetings started in August 2017, comprised of a balanced group of stakeholders - citizens, business-oriented individuals, City staff and a Council liaison. Overall, the Fee Working Group supports the fee coordination process and proposed fee updates. STAFF RECOMMENDATION Staff recommends adoption on the Ordinances on First Reading. BACKGROUND / DISCUSSION As of October 2016, staff has worked to coordinate the process for updating all building related fees that require Council approval. Below are impact fees that require Council approval: ATTACHMENT 1 COPY Agenda Item 15 Item # 15 Page 2 Fees in the 2019 update include six Capital Expansion Fees and three Wet Utility PIFs (Sewer, Stormwater and Water). Development Review Fees were initially planned for Phase II updates but have been decoupled and will come forward in 2019. Previously, fee updates were presented to Council on an individual basis but are now on a two and four-year cadence. Fee coordination includes a detailed fee study analysis for CEFs, TCEFs and Development Review Fees every four years. This requires an outside consultant through a request for proposal (RFP) process. Data is provided by City staff and findings are also verified by City staff. For Utility Fees, a detailed fee study is planned every two years. These are internal updates by City staff with periodic consultant verification. Fee study analysis should be targeted in the odd year before Budgeting for Outcomes (BFO). 2017 Capital Expansion full fee proposals were significant. Fee changes reflected updated asset values that reflect higher construction costs, land values that reflect higher last cost and population and dwelling units per the latest census. These changes caused concern in the community and Council directed a stepped implementation for CEFs and TCEFs. In June of 2017, Council approved the following fee updates: *Cash-in-Lieu (CIL) Proposed 2019 Impact Fee Updates Fees in the 2019 update include all six Capital Expansion Fees and three Wet Utility PIFs (Sewer, Stormwater and Water). Staff proposes the following fee changes: • 90% of proposed CEFs (Step II) COPY Agenda Item 15 Item # 15 Page 3 • Option A for TCEFs (Step II) • Wet Utility PIFs as proposed The chart below shows the stepped implementation for CEFs and TCEFs: Step I changes (current fee levels) adopted October 1, 2017 are 75% of full fee levels proposed for CEFs and Option B for TCEFs. Option B does not increase program revenue, it provides approximately 80% of necessary funding to mitigate proportional impacts of development. Whereas Option A includes the proportionate cost attributable for mitigation of the impacts of new development on the transportation system, including new streets, intersection improvements, and multi-modal improvements. The chart below shows Step II fee changes with inflation: CEF fee increases are 90% of full fee levels recommended in 2017 and reflects Option A for TCEFs. Including inflation, total Step II fee increases are a 27 to 28% increase from current fee levels (Step I). The CPI-U index for Denver-Aurora-Lakewood is used for CEF inflation (3.1% in 2017 and 3.2% in 2018). The Engineering News Record's Construction Cost Index Values for Denver is used for TCEFs (4.0% in 2017 and 1.2% in 2018). The chart below shows the proposed Wet Utility PIFs changes: Fees Phasing Land Use Type Unit Previous Total Current Total Step II Total Step III Total % Change Full Fees % Change Step I % Change Step II % Change Step III Residential, up to 700 sq. ft. Dwelling $5,059 $5,845 $7,049 $7,587 50% 16% 21% 8% Residential, 701-1,200 sq. ft. Dwelling $6,182 $8,779 $10,593 $11,315 83% 42% 21% 7% Residential, 1,201-1,700 sq. ft. Dwelling $7,574 $10,283 $12,409 $13,197 74% 36% 21% 6% Residential, 1,701-2,200 sq. ft. Dwelling $7,762 $11,099 $13,391 $14,188 83% 43% 21% 6% Residential, over 2,200 sq. ft. Dwelling $8,094 $12,147 $14,658 $15,546 92% 50% 21% 6% Commercial 1,000 sq. ft. $13,241 $8,430 $10,164 $10,392 -22% -36% 21% 2% Office and Other Services $9,071 $6,660 $8,028 $8,256 -9% -27% 21% 3% Industrial/Warehouse 1,000 sq. ft. $1,748 $2,000 $2,411 $2,464 41% 14% 21% 2% CEFs & TCEFs Totals with Inflation Land Use Type Unit Current Total Step II Total Step II Total w Inflation % Increase % Increase w Inflation Residential, up to 700 sq. ft. Dwelling $5,845 $7,049 $7,473 21% 28% Residential, 701-1,200 sq. ft. Dwelling $8,779 $10,593 $11,221 21% 28% Residential, 1,201-1,700 sq. ft. Dwelling $10,283 $12,409 $13,139 21% 28% Residential, 1,701-2,200 sq. ft. Dwelling $11,099 $13,391 $14,173 21% 28% Agenda Item 15 Item # 15 Page 4 *Gallons per day (GPD) Across the three Wet Utility Fees, staff is proposing 7 to 11% increases. Water PIFs are a 7.1% increase from current fee levels, Wastewater PIFs are a 9.5% increase from current fee levels and Stormwater PIFs are a 11.3% increase from current fee levels. The drivers for the increases on PIFs is the same for all three funds: • New capital projects increase the overall system value • Annual increases in construction costs increases the replacement value of existing system • One-time adjustment of 2.7% included to account for fee implementation being delayed in 2018 Fee Working Group Before the 2019 impact fee update, Council asked for commitment to create a working group of citizens, industry and staff to foster a better understanding of fees. The Fee Working Group meetings commenced in August 2017, comprised of a balanced group of stakeholders - citizens, business-oriented individuals, City staff and a Council liaison. The group met 14 times, and the topics covered included: detailed review of fee methodologies, inputs, calculations, City revenue sources, alternative revenue sources, academic economic research on impact fees, a third-party impact fee audit review and impact fee comparisons to other communities. Below is a summary of the key findings from the Fee Working Group position paper: • Bringing impact fees together for review and formation of the fee working group has been beneficial to better understand the full impact of Council approved impact fees for new development. • The group acknowledges overall sound methodologies, calculations and inputs. • The third-party fee audit revealed that the City manages impact fee expenditures very well. How the City spends and collects impact fees is sound. Of the $54M examined, only $130K or 0.24% was charged incorrectly. • Regarding economic data, the group agrees that amenities paid for through impact fees add to property value, but views differ as to what extent they impact demand and supply. Academic research showed that home price increases in growing areas are mainly demand driven. • The group agreed that impact fees are complicated and difficult to communicate across the community. They recommend better messaging to stakeholders and the general public. • In the 2017 study, park impact fees increased more than other impact fees due to increases in the costs of land, water and construction. These fees are the only category where impact fees pay for 100 percent of what is built. • The group acknowledges the need to identify new revenue sources for park refresh and maintenance. • If Council approves lower fees than the staff recommendation, alternative revenue sources will be needed. If Council goes this direction, it will be for the community to decide what alternatives to pursue. COPY Agenda Item 15 Item # 15 Page 5 Below are recommendations from the Fee Working Group Position Paper: 1. Better communication/outreach & notice of fee changes 2. Repayment of the $130k identified in the impact fee audit 3. Progressive fees if/where possible 4. Explore additional revenue sources for parks buildout 5. Investigate revenue alternatives to support parks refresh & maintenance 6. Explore stronger supports for affordable housing fee waivers CITY FINANCIAL IMPACTS 2019 impact fee updates were discussed with Council Finance Committee in August 2018. Fee updates will result in an increase to fee payers. BOARD / COMMISSION RECOMMENDATION 2019 impact fee updates and the Fee Working Group position paper were discussed with Council Finance Committee in August and September 2018. Council Finance Committee recommended bringing the topic forward at the November 13th Council Work Session. From the Work Session, Council recommended ordinance readings in December 2018 as next steps. PUBLIC OUTREACH In an effort towards better communication, outreach and notification of impact fee changes, staff met with 14 organizations across the City in the fall of 2018. Overall, there was unanimous support for the approach and cadence. Most groups were not in favor of fee increases, yet they were not in favor of alternatives. Staff also heard: • Support for fee group recommendations. • Not a straight forward topic, takes a couple of conversations to set in. • Concerns about attainable housing - it may be less desirable to live here. • Policy questions on development standards going forward, having alignment on total cost including operations and maintenance. COPY Agenda Item 15 Item # 15 Page 6 ATTACHMENTS 1. Staff Presentation for Council Work Session November 13, 2018 Impact Fee Update (PDF) 2. Council Finance Committee Minutes September 17, 2018 (PDF) 3. Council Finance Committee Minutes August 20, 2018 (PDF) 4. 2018 Impact Fee Outreach Feedback (PDF) 5. Fee Group Position Paper September 12, 2018 (PDF) 6. Fort Collins Review Final Report April 6, 2018 (PDF) 7. Memo Council Work Session Followup November 28, 2018 (PDF) COPY -1- ORDINANCE NO. 166, 2018 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTERS 7.5, 8 AND 24 OF THE CODE OF THE CITY OF FORT COLLINS TO IMPLEMENT PHASE II INCREASES OF THE CAPITAL EXPANSION FEES 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 establish impact fees for such development; and WHEREAS, the City Council has determined that new development should contribute its proportionate share of providing the capital improvements that are typically funded with impact fees; 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, in early 2016, City staff initiated a comprehensive review of its various impact fees now charged to new development, including its community parkland, neighborhood parkland, police, fire protection, general government and street oversizing capital improvement expansion fees (collectively, “Capital Expansion Fees”); and WHEREAS, as a result of that review, the City commissioned an impact fee study for the community parkland, neighborhood parkland, police, fire protection and general government capital improvement expansion fees that has resulted in the “Capital Expansion Fee Study” dated August 2016, which has identified the need to increase such Capital Expansion Fees by various amounts; and WHEREAS, the City also commissioned an impact fee study for the street oversizing capital improvement expansion fee that has resulted in the “Transportation Capital Expansion Fee Study” dated April 2017, which has also identified the need to increase and decrease the street oversizing capital improvement expansion fees by various amounts depending on the type of development proposed; and WHEREAS, in 2017 City Council adopted Ordinance No. 049, 2017, increasing, beginning on October 1, 2017, the Capital Expansion Fees to seventy-five percent (75%) of the amounts recommended in the Capital Expansion Fee Study and the Transportation Expansion Fee to the lesser amount recommended in the Transportation Capital Expansion Fee Study, and fully implementing reductions to said Fees as applicable; and WHEREAS, the City Manager formed a working-group of City staff and community stakeholders to review the Studies, to consider any future changes to the City’s Capital Expansion -2- Fees based on the Studies, and to present the recommendations of that working-group to the Council with any such proposed changes; and WHEREAS, based on the Studies and the general approach and direction of Council, including the Council Finance Committee, this Ordinance enacts Phase II of the increases to the Capital Expansion Fees; and WHEREAS, for the foregoing reasons, the City Council has determined that it is in the best interest of the City and its citizens and necessary for the protection of the public’s health, safety and welfare, that the Capital Expansion Fees be decreased and increased as hereafter provided. 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 Section 7.5-28(a) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7.5-28. - Community parkland capital expansion fee. (a) There is hereby established a community parkland capital expansion fee which shall be imposed pursuant to the provisions of this Article for the purpose of funding capital improvements related to the provision of community parks, as such improvements may be identified in the capital improvements plan for community parkland. Such fee shall be payable prior to the issuance of any building permit for a residential structure. The amount of such fee shall be determined per dwelling unit as follows: Current As of October 1, 2017 As of January 1, 2019 Resid., up to 700 sq. ft. $1,102.00 $1,751.00 $2,326.00 Resid., 701 to 1,200 sq. ft. 1,414.00 2,432.00 3,114.00 Resid., 1,201 to 1,700 sq. ft. 1,562.00 2,558.00 3,400.00 Resid., 1,701 to 2,200 sq. ft. 1,628.00 2,585.00 3,436.00 Resid., over 2,201 sq. ft. 1,743.00 2,881.00 3,830.00 In the case of duplexes and multi-family structures, the amount of the fee for each dwelling unit shall be based upon the average size of the dwelling units contained within each such structure. Section 3. That Section 7.5-29(a) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7.5-29. - Police capital expansion fee. -3- (a) There is hereby established a police capital expansion fee which shall be imposed pursuant to the provisions of this Article for the purpose of funding capital improvements related to the provision of police services, as such improvements may be identified in the capital improvements plan for police services. Such fee shall be payable prior to the issuance of any building permit for a residential, commercial or industrial structure. The amount of such fee shall be determined as follows: Current As of October 1, 2017 As of January 1, 2019 Resid., up to 700 sq. ft. $141.00 $177.00 $226.00 Resid., 701 to 1,200 sq. ft. 178.00 239.00 305.00 Resid., 1,201 to 1,700 sq. ft. 198.00 260.00 332.00 Resid., 1,701 to 2,200 sq. ft. 206.00 264.00 337.00 Resid., over 2,200 sq. ft. 220.00 294.00 375.00 Commercial buildings (per 1,000 sq. ft.) 169.00 223.00 284.00 Industrial buildings (per 1,000 sq. ft.) 41.00 52.00 66.00 In the case of duplexes and multi-family structures, the amount of the fee for each dwelling unit shall be based upon the average size of the dwelling units contained within each such structure. Section 4. That Section 7.5-30(a) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7.5-30. - Fire protection capital expansion fee. (a) There is hereby established a fire protection capital expansion fee which shall be imposed pursuant to the provisions of this Article for the purpose of funding capital improvements related to the provision of fire services, as such improvements may be identified in the capital improvements plan for fire protection services. Such fee shall be payable prior to the issuance of any building permit for a residential, commercial or industrial structure. The amount of such fee shall be determined as follows: Current As of October 1, 2017 As of January 1, 2019 Resid., up to 700 sq. ft. $281.00 $316.00 $403.00 Resid., 701 to 1,200 sq. ft. 357.00 428.00 546.00 Resid., 1,201 to 1,700 sq. ft. 395.00 465.00 593.00 Resid., 1,701 to 2,200 sq. ft. 410.00 473.00 603.00 -4- Resid., over 2,200 sq. ft. 440.00 526.00 671.00 Commercial buildings (per 1,000 sq. ft.) 339.00 395.00 508.00 Industrial buildings (per 1,000 sq. ft.) 80.00 93.00 119.00 In the case of duplexes and multi-family structures, the amount of the fee for each dwelling unit shall be based upon the average size of the dwelling units contained within each such structure. Section 5. That Section 7.5-31(a) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7.5-31. - General governmental capital expansion fee. (a) There is hereby established a general governmental capital expansion fee which shall be imposed pursuant to the provisions of this Article for the purpose of funding capital improvements related to the provision of general governmental services, as such improvements may be identified in the capital improvements plan for general governmental services. Such fee shall be payable prior to the issuance of any building permit for a residential, commercial or industrial structure. The amount of such fee shall be determined as follows: Current As of October 1, 2017 As of January 1, 2019 Resid., up to 700 sq. ft. $330.00 $431.00 $549.00 Resid., 701 to 1,200 sq. ft. 423.00 581.00 741.00 Resid., 1,201 to 1,700 sq. ft. 465.00 634.00 809.00 Resid., 1,701 to 2,200 sq. ft. 487.00 644.00 821.00 Resid., over 2,200 sq. ft. 523.00 716.00 914.00 Commercial buildings (per 1,000 sq. ft.) 803.00 1,088.00 1,389.00 Industrial buildings (per 1,000 sq. ft.) 188.00 257.00 327.00 In the case of duplexes and multi-family structures, the amount of the fee for each dwelling unit shall be based upon the average size of the dwelling units contained within each such structure. Section 6. That Section 7.5-32 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7.5-32. - Transportation expansion fee. There is hereby established a transportation expansion fee which shall be imposed pursuant to the provisions of this Article for the purpose of funding transportation improvements related to the -5- provision of transportation services. Such fees shall be payable prior to the issuance of any building permit for a residential, commercial or industrial structure. These fees shall be deposited in the “transportation improvements fund” established in § 8-87. The amount of such fee shall be determined as follows: TRANSPORTATION EXPANSION FEE SCHEDULE Current As of October 1, 2017 As of January 1, 2019 Resid., up to 700 sq. ft. $1,905.00 $1,827.00 $2,321.00 Resid., 701 to 1,200 sq. ft. 2,143.00 3,392.00 4,310.00 Resid., 1,201 to 1,700 sq. ft. 3,112.00 4,404.00 5,596.00 Resid., 1,701 to 2,200 sq. ft. 3,112.00 5,150.00 6,543.00 Resid., over 2,200 sq. ft. 3,112.00 5,520.00 7,014.00 Commercial 11,930.00 6,721.00 8,539.00 Office and Other Services 7,760.00 4,951.00 6,291.00 Industrial/Warehouse 1,130.00 1,598.00 2,030.00 Section 7. That Section 7.5-71(b) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7.5-71. - Neighborhood parkland capital expansion fee. (b) The amount of the fee established in this Section shall be determined for each dwelling unit as follows: Current As of October 1, 2017 As of January 1, 2019 Resid., up to 700 sq. ft. $1,300.00 $1,343.00 $1,647.00 Resid., 701 to 1,200 sq. ft. $1,667.00 1,797.00 2,205.00 Resid., 1,201 to 1,700 sq. ft. $1,842.00 1,962.00 2,408.00 Resid., 1,701 to 2,200 sq. ft. $1,919.00 1,983.00 2,433.00 Resid., over 2,200 sq. ft. $2,056.00 2,210.00 2,712.00 -6- 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 -1- ORDINANCE NO. 167, 2018 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE WATER PLANT INVESTMENT FEES WHEREAS, the City Council is empowered and directed by Article XII, Section 6 of the Charter of the City of Fort Collins, to by ordinance from time to time fix, establish, maintain, and provide for the collection of such rates, fees or charges for water and for other utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses, and other obligations as set forth therein; and WHEREAS, Article III, Chapter 26 of the City Code establishes and sets forth the water utility as a utility service furnished by and an enterprise of the City; and WHEREAS, City Code Sections 26-120 and 26-128 provide for water plant investment fees (“WPIFs”) to be based on and used for growth-related capital expansion costs of water supply, storage, transmission, treatment and distribution, and administrative facilities that are reasonably related to the overall costs of and required in providing water services to serve new development; and WHEREAS, City Code Section 26-120 further requires that the City Manager annually review the parameters and rates of the WPIFs and also requires that the City Manager present such fees to the City Council for approval no less frequently than biennially; and WHEREAS, the City Manager and City staff have also recommended to the City Council adjustment of the WPIFs, as set forth herein, to be effective January 1, 2019; and WHEREAS, the Water Board considered the proposed WPIFs adjustments for 2019 at its meeting on October 18, 2018 and recommended approval of the proposed adjustments by a unanimous vote; and WHEREAS, based on the foregoing, City Council desires to amend Chapter 26 of the City Code to adjust the scope and rate of the WPIFs as set forth herein. 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 Section 26-128 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-128. Schedule C, water plant investment fees. -2- The water plant investment fee prescribed in § 26-120 shall be payable by users both inside and outside of the City, as follows: (1) Single-family residential buildings. For a single-family residential lot greater than one-half (½) acre in size, the lot size shall be deemed to be one-half (½) acre for the purpose of this fee calculation. For each additional tap or meters larger than three-fourths (¾) inch, the nonresidential rate shall apply. a. For the first three-fourths-inch water tap or meter $730.00 b. For the first one-inch water tap or meter to accommodate residential fire suppression systems based upon the criteria established in the International Building Code as adopted and amended pursuant to Chapter 5 of this Code. $1,237.00 c. Plus, for each square foot of lot area $0.36 (2) Residential buildings of two (2) or more dwelling units The fee will provide for one (1) tap per residential building and an adequate number of additional taps to serve common irrigable areas, if any. The number and size of taps shall be determined by the Utilities Executive Director based upon the criteria established in the Uniform Plumbing Code as amended pursuant to Chapter 5 of this Code. a. For each residential building unit $530.00 b. Plus, for each square foot of lot area $0.26 (3) Mobile home parks The size of the tap shall be determined by the Utilities Executive Director based upon the criteria established in the Uniform Plumbing Code as amended pursuant to Chapter 5 of this Code. a. For each residential building unit $530.00 b. Plus, for each square foot of lot area $0.26 (4) Hotels, rooming houses, sororities, fraternities and similar uses. The nonresidential rate shall apply. (5) Nonresidential service a. Service to all nonresidential taps, including, but not limited to, taps for commercial and industrial service, shall be charged according to the size of the meter pursuant to the following schedule: Meter Size (inches) Nonresidential Plant Investment Fee ¾ $7,940 1 $20,960 1½ $43,520 -3- 2 $72,470 b. The fee for all meters larger than two (2) inches shall be calculated by multiplying the estimated peak daily demand by the following charge per gallon, but shall not be less than the charge for a two-inch meter. $4.99 Section 3. That the modifications set forth above shall be effective for all fees paid on or after January 1, 2019. 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 -1- ORDINANCE NO. 168, 2018 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE SEWER PLANT INVESTMENT FEES WHEREAS, the City Council is empowered and directed by Article XII, Section 6 of the Charter of the City of Fort Collins, to by ordinance from time to time fix, establish, maintain, and provide for the collection of such rates, fees or charges for water and for other utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses, and other obligations as set forth therein; and WHEREAS, Article IV, Chapter 26 of the City Code establishes and sets forth the wastewater utility as a utility service furnished by and an enterprise of the City; and WHEREAS, City Code Sections 26-283 and 26-284 provide for sewer plant investment fees (“SPIFs”) to be based on and used for growth-related capital expansion costs of wastewater collection, transmission, treatment, and administrative facilities that are reasonably related to the overall costs of and required in providing wastewater services to serve new development; and WHEREAS, City Code Section 26-283 further requires that the City Manager annually review the parameters and rates of the SPIFs and also requires that the City Manager present such fees to the City Council for approval no less frequently than biennially; and WHEREAS, the City Manager and City staff have also recommended to the City Council adjustment of the SPIFs as set forth herein to be effective January 1, 2019; and WHEREAS, the Water Board considered the proposed SPIFs adjustments for 2019 at its meeting on October 18, 2018 and recommended approval of the proposed adjustments by a unanimous vote; and WHEREAS, based on the foregoing, City Council desires to amend Chapter 26 of the City Code to adjust the scope and rate of the PIFs as set forth herein. 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 Section 26-284 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-284. - Sewer plant investment fees and surcharges established. -2- (a) The schedule of sewer plant investment fees, subject to the exceptions and additional requirements provided in this Section, is as follows: Category SPIF A Single-family Per dwelling $3,537 B and C Duplex and Multi-family Per each dwelling unit or mobile home space $2,588 D, E, F Non-residential and Industrial Water meter size (inches) Fee Fee ¾ $7,518 1 $16,553 1½ $31,728 2 $65,813 3 and above Calculated on an individual basis based on peak wastewater flow (determined in the manner set forth hereinafter) but not less than the charge for a two- inch meter G User outside Same as equivalent category, plus any special sanitation district fees H Special Determined pursuant to Subsection (d) of this Section . . . -3- (d) The amount of the plant investment fee and surcharge for each nonresidential surcharged user, users in Category H and any user that is expected to generate greater than its proportionate share of peak day flow at the treatment plant for the applicable category (including both contributed wastewater volume and volume related to infiltration and inflow), shall be calculated utilizing the following formula: SPIF = Site Flow × [Flow$ + (BOD × BOD$ ) + (TSS × TSS$)] + I&I Flow × [Flow$ + (200 mg/l × BOD$) + (250 mg/l × TSS$ )] Where: SPIF = Plant investment fee for Category H users and users discharging wastewater with average concentrations of BOD and/or TSS which exceed those average concentrations which are set forth in § 26-282(b) under Category E-34 Site Flow = The user's proportionate share of peak day flow at the treatment plant based on site flow discharge from user's site I&I Flow = That proportionate share of peak day flow due to infiltration and inflow as allocated to user's site flow discharge. I&I Flow is calculated based on Site Flow multiplied by 46.5% Flow$ = Unit cost of facilities attributable to treating wastewater flow Per Gallon $9.19 BOD = Average BOD concentration for user category or measured BOD concentration for the user as determined in accordance with Subsection (c) of this Section, but not less than 200 mg/l BOD$ = Unit cost of facilities attributable to treating BOD Per mg/l $0.0143 TSS = Average TSS concentration for user category or measured TSS concentration for the user as determined in accordance with Subsection (c) of this Section, but not less than 250 mg/l TSS$ = Unit cost of facilities attributable to treating TSS Per mg/l $0.0114 . . . -4- (f) For purposes of this Section, the proportionate share of peak day flow at the treatment plant for users in Categories D, E and F shall be deemed to be: Water Meter Size (inches) Peak Flow (gallons per day) ¾ 491 1 1,081 1½ 2,072 2 4,298 3 and greater Calculated on an individual basis based on user's proportionate share of peak day flow at the treatment plant (including both contributed wastewater volume and volume related to infiltration and inflow) but not less than the peak day flow for a two-inch meter Section 4. That the modifications set forth above shall be effective for all fees paid on or after January 1, 2019. 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 -5- Passed and adopted on final reading on the 18th day of December, A.D. 2018. __________________________________ Mayor ATTEST: _______________________________ City Clerk -1- ORDINANCE NO. 169, 2018 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE THE STORMWATER PLANT INVESTMENT FEES WHEREAS, the City Council is empowered and directed by Article XII, Section 6 of the Charter of the City of Fort Collins, to by ordinance from time to time fix, establish, maintain, and provide for the collection of such rates, fees or charges for water and for other utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses, and other obligations as set forth therein; and WHEREAS, Article VII, Chapter 26 of the City Code establishes the stormwater utility as a utility service furnished by and an enterprise of the City; and WHEREAS, City Council has adopted stormwater basin and City-wide master plans recommending stormwater facilities necessary to provide for proper drainage and control of flood and surface waters within the City; and WHEREAS, in 1998, City Council adopted ordinance No. 168, 1998, determining that all lands within the City benefit by the installation of such stormwater facilities; and WHEREAS, existing stormwater rate payers have paid for the design, right of way, and construction of stormwater facilities identified in the drainage basin master plans that will benefit and be utilized by new development; and WHEREAS, City Council has determined that new development should pay its proportionate share of the costs of capital stormwater facilities in existence at the time of development in the form of a stormwater plant investment fee as established by City Code Section 26-512 (“Stormwater PIF”); and WHEREAS, City Code Section 26-511(a) requires that the City Manager review the rates and parameters for the Stormwater PIF annually and present them to City Council for approval no less frequently than biennially; and WHEREAS, the City Manager and City staff have also recommended to the City Council adjustment of the Stormwater PIF as set forth herein to be effective January 1, 2019; and WHEREAS, the Water Board considered the proposed Stormwater PIF adjustments for 2016 at its meeting on October 18, 2018 and recommended approval of the proposed adjustments by a unanimous vote; and WHEREAS, based on the foregoing, City Council desires to amend Chapter 26 of the City Code to adjust the scope and rate of the Stormwater PIF as set forth herein. -2- 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 Section 26-512 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-512. - Stormwater plant investment fees established. … (2) Plant investment fee base rate. The stormwater plant investment fee base rate is hereby established as follows: Per gross acre of area $9,142 … Section 3. That the modifications set forth above shall be effective for all fees paid on or after January 1, 2019. 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 Residential, over 2,200 sq. ft. Dwelling $12,147 $14,658 $15,516 21% 28% Commercial 1,000 sq. ft. $8,430 $10,164 $10,720 21% 27% Office and Other Services $6,660 $8,028 $8,472 21% 27% Industrial/Warehouse 1,000 sq. ft. $2,000 $2,411 $2,542 21% 27% COPY