Loading...
HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 05/16/2017 - ITEMS RELATING TO CAPITAL EXPANSION FEES AND THE EAgenda Item 14 Item # 14 Page 1 AGENDA ITEM SUMMARY May 16, 2017 City Council STAFF Tiana Smith, Revenue and Project Manager SUBJECT Items Relating to Capital Expansion Fees and the Electric Capacity Fee. EXECUTIVE SUMMARY A. First Reading of Ordinance No. 049, 2017, Amending Chapters 7.5, 8 and 24 of the Code of the City of Fort Collins Concerning Revisions to Terminology and Decreases and Phased Increases of the Capital Expansion Fees and Amending Section 3.3.2(G) of the Land Use Code to Revise Related Terminology. (Alternative 1 or Alternative 2) B. First Reading of Ordinance No. 068, 2017, Amending Chapter 26 of the Code of the City of Fort Collins Regarding Calculation and Collection of Development Fees Imposed for the Construction of New or Modified Electric Service Connections. The purpose of this item is to consider adoption of fee recommendations for capital expansion and transportation expansion fees on a phased-timeline beginning October 1, 2017, and electric capacity fees effective beginning October 1, 2017, with no phasing. In early 2016, staff initiated comprehensive reviews of the Capital Expansion Fees, Transportation Expansion Fee (Street Oversizing) and the Electric Capacity Fee. In late 2016, staff conducted a thorough inventory of all fees across the City in order to better coordinate presentation of the holistic impact of fee recommendations to the community. Fee studies were also conducted for the Capital Expansion Fees and the Transportation Expansion Fee. Staff worked to integrate the messaging of these efforts to the community and to Council to illustrate the entire fee impact as well as how Fort Collins compares to neighboring cities’ impact fees. Capital Expansion Fees include the impact fees charged for Fire, Police, General Government, Community Parks and Neighborhood Parks. The Transportation Expansion Fee is also a Capital Expansion Fee, but is determined differently than the other Capital Expansion Fees. The Electric Capacity Fee is an impact fee imposed by the City’s Electric Utility. Ordinance No. 049, 2017, which provides for the changes to the Capital Expansion Fees and the Transportation Expansion Fee, is proposed in two alternative ordinances. Alternative 1 proposes the phasing of the full fee amounts recommended in the fee studies, while Alternative 2 provides for fee increases without any phasing in amounts less than what is recommended in the study for the Capital Expansion Fees and for the Transportation Expansion Fee for the lesser amount recommended in its study. STAFF RECOMMENDATION Staff recommends adoption of either Alternative 1 Ordinance No. 049, 2017 or Alternative 2 Ordinance No. 049, 2017, and adoption of Ordinance No. 068, 2017 on First Reading. Agenda Item 14 Item # 14 Page 2 BACKGROUND / DISCUSSION Capital Expansion Fees Capital Expansion Fees are used to require new development to pay a proportionate share of infrastructure costs. The method of calculating the fees that the City of Fort Collins has used since 1996 is referred to as incremental expansion. This method works in the following manner:  New development pays a fee based on current infrastructure costs - they essentially “buy in” to the current system.  The revenues from the fees are then used to build new infrastructure to serve the new development and/or the increase in population that follows the development. For reference, Capital Expansion Fees are only paid for new development on residential properties and for re- development only in the case where additional dwelling units are added, i.e. a carriage house on the same parcel. Capital Expansion Fees for new development are paid only on square footage above grade so square footage for basements is not included in calculating fees. Capital Expansion Fees are not paid for additions to existing dwelling units, unless the structure is completely scraped, in which case it is considered a new development and all Capital Expansion Fees are charged. Capital Expansion Fees are paid for new development and re-development on commercial properties. The City’s Capital Expansion Fees were originally prepared and adopted in 1996 and then updated in 2013. Direction was given to staff to update the fees every 3-5 years. The fees included in the study are:  Neighborhood Parks  Community Parks  Fire  Police  General Government In 2013, the fees for police, fire and general government for commercial and industrial land use types were phased in over a 3-year period and updated annually for inflation according to the Denver-Boulder-Greeley Consumer Price Index and Denver Region Construction Cost Index. For residential land use types, the fees were updated in 2013 and have been updated annually for inflation according to the Denver-Boulder-Greeley Consumer Price Index and Denver Region Construction Cost Index. Staff worked with the Duncan Associates to review the methodology and update the fees. The outcome of the study retains the basic methodology of incremental expansion and updates inputs from 2013 to reflect current asset information. The fees have all been updated based on today’s current level of service and cost which factors in current capital assets for all fees. The resulting report has been included in previous presentations at City Council and can also be found at: http://www.fcgov.com/finance/capitalexpansion.php Additional updates to the fee recommendations previously presented to City Council at the April 25, 2017 Work Session have been made to the parks fees removing Twin Silos costs from the calculations for community parks based on feedback from Council Finance Committee on April 28, 2017. Additionally, a working group was recommended to help inform and gain consent as well as step through methodology and discuss alternatives. Agenda Item 14 Item # 14 Page 3 Based on feedback from Leadership Planning Team on May 9, 2017, two alternatives are presented: 1. Alternative 1: (October 1, 2017 – January 1, 2020) • Capital Expansion Fees as proposed, phased in 3 steps over 27 months with Twin Silos removed from calculations • Transportation Capital Expansion Fees phased in 2 steps over 15 months, with Option B first, then Option A • Electric Capacity Fee as proposed (not phased; effective October 1, 2017) 2. Alternative 2: (End of May, 2017-October 2017) • CEFs at 75% of Proposed • Option B for Transportation CEF • Electric Capacity Fee as proposed (not phased; effective October 1, 2017) Under both alternatives, the City Manager is directed to form a working group of City staff and community stakeholders to consider and recommend future changes to the Capital Expansion Fees. Transportation Expansion Fee (formerly Street Oversizing Fee) The Transportation Expansion Fee is a one-time impact fee on development, and is used to mitigate the impacts of new development on the transportation network. The Transportation Expansion Fee Program has been a stable, long-term funding source for the construction of capital transportation infrastructure in newly- developing areas. The fee program was originally adopted in 1979, with revisions in 1986, 1993, 1997, 2000, 2003, and 2006. Periodic recalculations and inflation adjustments of the fee schedule ensure that fee revenues will be sufficient to pay for the cost of eligible transportation improvements. However, as the City begins to approach build out of its Growth Management Area, it is prudent to assess and update the program to continue the long-term success of the program to fund development impacts to the City’s transportation network. City Council has directed staff to review the Transportation Expansion Fee Program as the appropriate basis for assessing the cost of transportation improvements to developments based on their proportional impacts. The City has retained TischlerBise, Inc. as a consultant to assist the City with the assessment of its existing Transportation Expansion Fee Program (formerly, Street Oversizing Capital Expansion Fee Program). They have completed a draft report included in previous presentations to City Council which can also be found at the web address listed above. The recommended updates to the fees include the following:  Change the name from “Street Oversizing” to “Transportation Expansion Fee”.  Simplify the transportation impact fee schedule from 43 categories of use to only a handful; Residential (by size of unit) and two broad categories for commercial and industrial.  Use Vehicle Miles Travelled (VMT) as the basis for determining impact, instead of trips generated. Impact: this change more accurately ties the fee to demand on the transportation system.  Increase the fee to include additional transportation system improvements (bicycle, pedestrian, transit, intersection turn lanes, and signal timing improvements, for example). Impact: this proposed change is estimated to increase the magnitude of the fee by 24%. Transportation Capital Expansion Fees-Option A and Option B Option A includes the proportionate cost attributable to new development of Bicycle, Pedestrian, and Transit improvements in addition to intersection turn lanes, signals, signal timing, and Advance Traffic Management Systems. Option B is calculated on the City's Capital Improvement Plan and assumes funding for streets and intersection improvements similar to the existing program. Agenda Item 14 Item # 14 Page 4 Electric Capacity Fees In 2016 Fort Collins Utilities hired NewGen Strategies to survey how Plant Investment Fees (PIFs) are collected by other electric utilities and to provide assistance building a revised PIF model to allocate capital costs to new load on the electric system. This effort allowed for the calculation to be easier to understand and update, while recognizing the change in how development occurs within the city at this stage of its growth. Current Model The current PIF consisting of an electric capacity fee (ECF) and a building site change (BSC) is calculated by utilizing a system planning model that was originally developed in early 1980’s and has been updated several times to reflect changes in system design standards and policy. This underlying model assumes a certain system design and allocates the costs of this system design based on the square footage, the linear footage that abuts the public right of way, and demand (kilowatt or kW) of the new development. The current method has several challenges. The costs for these components (square footage, front footage, and dwelling units/capacity) are calculated through the use of visual basic code (VBA) to access databases that contain assembly information and cost data. As a result, it is cumbersome to update these calculations if changes need to be made to the underlying planning model. For example, it is difficult to modify the calculations so that the model includes mixed use developments or higher density developments. Additionally, the planning model has difficulty assigning costs for capital work required for redevelopment, such as adding a circuit for additional load. Proposed Model As a result of the trend toward higher density developments and redevelopments, and the dynamic nature of the electric system in general, staff recommends changing the methodology of the PIF model to address the concerns raised above. The proposed methodology is based on the “buy-in” method for PIFs and is conceptually similar with the PIF models for the water and wastewater utilities. This method takes the value of the utilized electric system, i.e. the amount of the system that is needed to serve the current load and no more, and divides this dollar value by the current kilowatt (kW) demand. This calculation results in the $/kW rate that was used to build the current system to meet the current demand. New load on the system would buy into the electric system at this $/kW rate. This simplifies the calculation and administration of the electric PIFs. In addition to these simplifications, the proposed methodology also uses actual data to allocate costs instead of a planning model. Demands, non-coincident peaks (NCP), for the residential and commercial/industrial customer classes are calculated from AMI data and are used to allocate the system costs proportionally to each class based on the class NCP. This allocation method provides a different $/kW “buy-in” rate for each of these classes and is consistent with standard cost allocation practices in utility rate making. Due to the large variation in demands from the commercial class a sliding scale was implemented for the $/kW rate for commercial customers, as the load from a commercial customer increases the “buy-in” rate increases as well to allocate the additional system costs required to serve large loads. Lastly, this proposed method is flexible and adapts to changes in development by using actual system values and actual demands as opposed to the current method. The fee recommendations for the two alternatives can be seen below: Agenda Item 14 Item # 14 Page 5 Alternative 1 • Capital Expansion Fees as proposed, with Twin Silos removed from calculations • Transportation Option A • Electric capacity fees as proposed N'hood Comm. Gen. Electric Total Land Use Type Unit Park Park Fire Police Gov't Capacity Fees CEFs + Transp + Elec Updated Fees Fees Resid., up to 700 sf Dwelling $1,790 $2,334 $502 $236 $574 $2,205 $1,349 $8,990 Resid., 701-1,200 sf Dwelling 2,396 3,123 679 319 774 4,095 1,443 12,829 Resid., 1,201-1,700 sf Dwelling 2,616 3,411 739 347 845 5,317 1,537 14,812 Resid., 1,701-2,200 sf Dwelling 2,644 3,446 751 352 858 6,217 1,708 15,976 Resid., over 2,200 sf Dwelling 2,947 3,841 836 392 955 6,664 1,879 17,514 Commercial 1,000 sf 0 0 633 297 1,451 8,113 170 10,664 Office and Other Services 1,000 sf 0 0 633 297 1,451 5,977 227 8,585 Industrial/Warehouse 1,000 sf 0 0 148 69 342 1,929 1,986 4,474 Change Resid., up to 700 sf Dwelling 490 1,232 221 95 244 300 (774) 1,808 Resid., 701-1,200 sf Dwelling 729 1,709 322 141 351 1,952 (828) 4,376 Resid., 1,201-1,700 sf Dwelling 774 1,849 344 149 380 2,205 -882 4,819 Resid., 1,701-2,200 sf Dwelling 725 1,818 341 146 371 3,105 -980 5,526 Resid., over 2,200 sf Dwelling 891 2,098 396 172 432 3,552 -1,078 6,463 Commercial 1,000 sf 0 0 294 128 648 -3,817 -133 -2,880 Office and Other Services 1,000 sf 0 0 294 128 648 -1,783 -76 -789 Industrial/Warehouse 1,000 sf 0 0 68 28 154 799 890 1,939 Percent Change Resid., up to 700 sf Dwelling 38% 112% 79% 67% 74% 16% -36% 25% Resid., 701-1,200 sf Dwelling 44% 121% 90% 79% 83% 91% -36% 52% Resid., 1,201-1,700 sf Dwelling 42% 118% 87% 75% 82% 71% -36% 48% Resid., 1,701-2,200 sf Dwelling 38% 112% 83% 71% 76% 100% -36% 53% Resid., over 2,200 sf Dwelling 43% 120% 90% 78% 83% 114% -36% 58% Commercial 1,000 sf 87% 76% 81% -32% -44% -21% Office and Other Services 87% 76% 81% -23% -25% -8% Industrial/Warehouse 1,000 sf 85% 68% 82% 71% 81% 76% Transp. Option A Agenda Item 14 Item # 14 Page 6 Alternative 2 • Capital Expansion Fees at 75% of proposed with Twin Silos removed from calculations • Transportation Option B • Electric capacity fees as proposed N'hood Comm. Gen. Electric Total Land Use Type Unit Park Park Fire Police Gov't Capacity Fees CEFs + Transp + Elec Fees Updated Fees + Elec Resid., up to 700 sf Dwelling $1,343 $1,751 $377 $177 $431 $1,827 $1,349 $7,253 Resid., 701-1,200 sf Dwelling 1,797 2,342 509 239 581 3,392 1,443 10,303 Resid., 1,201-1,700 sf Dwelling 1,962 2,558 554 260 634 4,404 1,537 11,910 Resid., 1,701-2,200 sf Dwelling 1,983 2,585 563 264 644 5,150 1,708 12,896 Resid., over 2,200 sf Dwelling 2,210 2,881 627 294 716 5,520 1,879 14,127 Commercial 1,000 sf 0 0 475 223 1,088 6,721 170 8,677 Office and Other Services 1,000 sf 0 0 475 223 1,088 4,951 227 6,964 Industrial/Warehouse 1,000 sf 0 0 111 52 257 1,598 1,986 4,003 Change Resid., up to 700 sf Dwelling 43 649 96 36 101 (78) (774) 71 Resid., 701-1,200 sf Dwelling 130 928 152 61 158 1,249 (828) 1,851 Resid., 1,201-1,700 sf Dwelling 120 996 159 62 169 1,292 -882 1,917 Resid., 1,701-2,200 sf Dwelling 64 957 153 58 157 2,038 -980 2,447 Resid., over 2,200 sf Dwelling 154 1,138 187 74 193 2,408 -1,078 3,077 Commercial 1,000 sf 0 0 136 54 285 -5,209 -133 -4,868 Office and Other Services 1,000 sf 0 0 136 54 285 -2,809 -76 -2,410 Industrial/Warehouse 1,000 sf 0 0 31 11 69 468 890 1,468 Percent Change Resid., up to 700 sf Dwelling 3% 59% 34% 26% 30% -4% -36% 1% Resid., 701-1,200 sf Dwelling 8% 66% 43% 34% 37% 58% -36% 22% Resid., 1,201-1,700 sf Dwelling 7% 64% 40% 31% 36% 42% -36% 19% Resid., 1,701-2,200 sf Dwelling 3% 59% 37% 28% 32% 65% -36% 23% Resid., over 2,200 sf Dwelling 8% 65% 43% 34% 37% 77% -36% 28% Commercial 1,000 sf 40% 32% 36% -44% -44% -36% Office and Other Services 40% 32% 36% -36% -25% -26% Industrial/Warehouse 1,000 sf 39% 26% 36% 41% 81% 58% Transp. Option B Agenda Item 14 Item # 14 Page 7 Phasing: Alternative 1  Capital Expansion Fees in 3 steps over 27 months  Transportation in 2 steps over 15 months, first Option B, then Option A  Electric Capacity Fees all at once Current 1-Oct-17 1-Jan-19 1-Jan-20 % Change % Change % Change Land Use Type Fees Step 1 Step 2 Step 3 Step 1 Step 2 Step 3 Updated Fees Resid., up to 700 sf $7,182 $7,091 $8,229 $8,990 -1.3% 16% 9% Resid., 701-1,200 sf 8,453 9,958 11,745 12,829 18% 18% 9% Resid., 1,201-1,700 sf 9,993 11,568 13,647 14,812 16% 18% 9% Resid., 1,701-2,200 sf 10,450 12,642 14,842 15,976 21% 17% 8% Resid., over 2,200 sf 11,051 13,711 16,184 17,514 24% 18% 8% Commercial 13,544 8,559 10,307 10,664 -37% 20% 3% Office and Other Services 9,374 6,846 8,229 8,585 -27% 20% 4% Industrial/Warehouse 2,535 3,976 4,390 4,474 57% 10% 2% Alternative 2 (No Phasing)  Capital Expansion Fees at 75 % effective October 1, 2017  Transportation Option B effective October 1, 2017  Electric Capacity Fees all at once effective October 1, 2017  Working group will meet and work through understanding the studies, the methodologies and alternatives. Current 1-Oct-17 % Change Land Use Type Fees Step 1 Step 1 Updated Fees Resid., up to 700 sf $7,182 $7,253 1% Resid., 701-1,200 sf 8,453 10,303 22% Resid., 1,201-1,700 sf 9,993 11,910 19% Resid., 1,701-2,200 sf 10,450 12,896 23% Resid., over 2,200 sf 11,051 14,127 28% Commercial 13,544 8,677 -36% Office and Other Services 9,374 6,964 -26% Industrial/Warehouse 2,535 4,003 58% N/A N/A N/A N/A CITY FINANCIAL IMPACTS Revenue from Capital Expansion Fees, Transportation Expansion Fees and Electric Capacity Fees is driven entirely by the amount of growth/development/re-development that occurs in the City. For Transportation Expansion Fees and Capital Expansion Fees, revenue is used to support infrastructure needs that result in growth from the community. For Electric Capacity Fees, revenue goes to the Utilities Light and Power Enterprise fund to be used for the future planning needs of the electric utility. Agenda Item 14 Item # 14 Page 8 If Capital Expansion Fees are not appropriately collected, resulting in a lack of revenue, financial impacts may be:  Delay of projects  Facilities and assets may be designed and built at a lower level of service  Revenue to fund services and projects may come from a different source, most likely the General Fund. An additional potential financial impact could occur if eligible projects through the Housing Authority apply for a waiver of Capital Expansion Fees and the fee revenue from the waiver is then backfilled by the General Fund. This occurred in 2013 with Redtail Ponds which resulted in a fee waiver and backfill from the General Fund of $274K. For the 2013-2014 Budgeting for Outcomes cycle, examples of one-time General Fund offers that were not funded for roughly that same amount of money are: Environmental Health  Propane and Natural Gas Vehicle Conversions - $85K  Sustainable Theatrical Lighting at Lincoln Center - $197K Culture and Recreation  Shelter at Inspiration Playground - $86K Economic Health  Downtown Plan Update- $105K High Performing Government  Sustainability Service Area Office Space- $300K BOARD / COMMISSION RECOMMENDATION The Economic Advisory Commission recommends supporting the fee recommendations. (Attachment 2) The Parks and Recreation Board is in support of fees that reflect the true cost of park replacement. (Attachment 3) The Affordable Housing Board was not in support of the higher fee recommendations. The Board requested at least 6 months lead time, preferably longer, before fees are implemented. (Attachment 4) The Building Review Board did not feel it had sufficient time or information to submit a recommendation. (Attachment 5) The Human Relations Commission was not in support of the fee recommendations and had concerns over housing affordability and the impact of these fees on marginalized populations that may be paying for impacts that they do not cause due to lack of income, i.e., they may not have a car. PUBLIC OUTREACH See Attachment 1 for public outreach. Agenda Item 14 Item # 14 Page 9 ATTACHMENTS 1. Public Outreach Summary (PDF) 2. Economic Advisory Commission Memo, February 7, 2017 (PDF) 3. Parks and Recreation Board letter, May 8, 2017 (PDF) 4. Building Review Board Minutes, April 27, 2017 (PDF) 5. Affordable Housing Board Minutes, October 13, 2016 (PDF) 6. Powerpoint presentation (PDF) Public Outreach‐ Impact Fees Concerned about affordability of housing Multifamily is getting hit harder than single family detached Fees will drive development to neighbor cities Need at least 6 months notice to implement fee changes Fees should be phased More outreach should be done Worried about GF if fees not collected Need to look at TOD and Smart Design incentives Want housing waivers Marginalized pop. Pay more than their fair share Level of service in FC is Gold‐ plated Standards should be establish. For level of service Chamber Local Legislative Affairs Committee X X XX X X X X X Northern Colorado Homebuilder’s Association X X XX X X X X X Economic Health Office 300 LaPorte Avenue PO Box 580 Fort Collins, CO 80522 970.221.6505 970.224.6107 - fax fcgov.com MEMORANDUM DATE: February 7, 2017 TO: Mayor and Councilmembers THRU: Josh Birks, Economic Health and Redevelopment Director FROM: Sam Solt, Chair – Economic Advisory Commission; Ted Settle Vice-Chair – Economic Advisory Commission; and Members, Economic Advisory Commission RE: MIDTOWN BUSINESS IMPROVEMENT DISTRICT The purpose of this memorandum is to inform City Council of the Economic Advisory Commission’s (EAC) recommendation regarding the City Council’s pending action to update the City’s Capital Expansion Fees. Position: The EAC received an update on the proposed changes to Capital Expansion Fees at their September 21, 2016 regular board meeting. The following action was taken on October 19, 2016 during the course of the EAC’s regular board meeting: Glen Colton moved and Craig Mueller seconded: The Economic Advisory Commission supports the updated fees recommended by the Capital Expansion Fee and Transportation Capital Expansion Fee Studies. Of the options presented to EAC for fee calculations, the commission was in favor of using the “cost of construction” valuation for capital expansion fees and the Methodology Change Plus Option for the transportation fees. While both of these options result in higher fees, the EAC discussed the importance of a defensible methodology for calculating the fees and that the City should collect the fees recommended at that level so as not [to] overburden other revenue streams to pay for future capital needs. Motion passed, 5-1-1 (Abstain: Settle). ATTACHMENT 2 Parks & Recreation Board PO Box 580 Fort Collins, CO 80522 2016-2017 Chair – Scott Sinn May 8, 2017 To Mayor and City Council, On April 26, 2017, the Fort Collins Parks and Recreation Board supports a proposal increase to the Capital Expansion Fees on Building Permits for neighborhood and community parks by a unanimous vote. While the Board is typically not in favor of raising fees for parks, we understand the need to increase fees due to the ever increasing construction costs throughout Northern Colorado. These construction costs combined with maintaining a high level of quality leads to the need to increase fees. The Park Planning Department and the Finance Department have made three presentations over the last few months keeping the Board up to date on the proposed increase. Both entitites have done an admirable job in explaining and sorting through the complexities of our complicated fee system. Thank you for consideration of our recommendation. Regards, Scott Sinn Chair, Fort Collins Parks & Recreation Board ATTACHMENT 3 Building Review Board Page 1 April 27, 2017 Alan Cram, Chair City Council Chambers Michael Doddridge, Vice Chair City Hall West Andrea Dunlap 300 Laporte Avenue Tim Johnson Bernie Marzonie Justin Montgomery Fort Collins, Colorado Rick Reider The City of Fort Collins will make reasonable accommodations for access to City services, programs, and activities and will make special communication arrangements for persons with disabilities. Please call 221-6515 (TDD 224- 6001) for assistance. Regular Hearing Minutes April 27, 2017 A regular meeting of the Building Review Board was held on Thursday, April 27, 2017, at 1:00 p.m. in the Council Chambers of the Fort Collins Municipal Building at 300 Laporte Avenue, Fort Collins, Colorado. Board Members Present: Alan Cram, Chair Mike Doddridge, Vice Chair Andrea Dunlap Justin Montgomery Tim Johnson Bernie Marzonie Rick Reider Absent: None Staff Present: Mike Gebo, Chief Building Official Cindy Cosmas, Administrative Assistant Cram noted that a quorum was present for this hearing. BOARD ITEMS FOR CONSIDERATION 1. Approval of January 26, 2017, Draft Minutes Montgomery made a motion, seconded by Doddridge, to approve the draft minutes of the January 26, 2017, hearing. Vote: 7:0. Building Review Board Minutes ATTACHMENT 4 Building Review Board Page 2 April 27, 2016 2. 2016 Capital Expansion Fee Update Tiana Smith, Revenue and Project Manager of Finance at the COFC, provided the Board with an updated presentation of the proposed increases to the 2016 capital expansion fees, transportation capital expansion fees, and electric capacity fees. She described the purpose of each fee and how each is calculated. She also discussed in detail the impacts of each fee and how they compare to similar communities. She stated that City Council requested that these fees be “bundled” in order to better communicate in a holistic way to the community at large. Fees are calculated based on “level of service”, rather than trying to build the fee structure to reach a budgeted goal. The City has retained the same methodology since 1996, when impact fees were first introduced. Ms. Smith described some of the community outreach that occurred for the proposed park developments, restating that a consistent level of service would be assessed for all residents with respect to park fees. Dean Klingner, Capital Projects Manager, provided more information related to the proposed transportation capital expansion fees (previously street oversizing fees). He discussed several proposed changes: • Renamed “transportation capital expansion fee”, rather than “street oversizing fee”; • Charging fees based on unit size (square feet) rather than unit type; • Commercial/industrial uses are deemed to be similar and will be combined; • “Trip generation” methodology, which will use traffic engineering studies to identify impacts to the transportation system in order to recognize distance as well as frequency; and • Fundamental fee increase of approximately 20%, based on improvements necessary for development. Klingner also discussed several options being proposed: • Option A – fully funding the program (proportional costs for all necessary transportation improvements in terms of growth) • Option B – change to vehicle miles travelled (would raise residential fees overall and lower commercial fees) Lance Smith, Utilities Strategic Finance Director, described what electric capacity fees are used for (cost to build monthly generation and transmission of electricity) and stated that the existing model is outdated. He added that the new methodology will focus on meeting the peak demand when building a distribution system. The calculation will be simpler, noting that large commercial customers represent less than 1% of all customers but 40% of overall electricity demand. Therefore, residential fees are expected to decrease and commercial fees are expected to increase. Ms. Smith recapped the proposal to bundle all of the fees, highlighting the fee percent changes. She also showed a graph of various land-use types and communities with respect to neighboring communities (Fort Collins’ fees appear to be average). Based on new median home sales price in 2016 ($437,000), she illustrated how fees have changed over time. Her recommendation is to phase in these fees over 3 years, using a calculated average to account for annual revenue loss due to the phasing. She asked the Board for any feedback that she could include in her presentation at the May 16th City Council hearing and adoption. ATTACHMENT 4 Building Review Board Page 3 April 27, 2016 Board Questions and Deliberation Montgomery asked for more information explaining the methodology of having parks based on level of service rather than plan-based budget. Ms. Smith responded that, while there is a master plan for the parks, the intent is not having the current residents pay for future needs. She added that every 10 years a new community park has been built (only 2 remaining to build). Additionally, these fees will become self-regulating as development decreases and there is less impact to growth. Regarding the electric fees and demand charges, Montgomery also asked if there would be any impact on demand to adopt the most energy-efficient codes; Mr. Smith confirmed that there would be an impact in that total consumption will be lower (approx. a 12% drop per person). She added that the demand and type of energy will also change. Johnson asked what role CSU has regarding these fees, since they are a major consumer. Klingner responded that CSU does not pay the fee, but alternatives are utilized in order to ensure CSU meets the intent of the fee. Doddridge asked whether multi-family calculations are included in the park fees calculation; Noelle Currell, Sr. Fin Analyst, responded that it is based on equivalent dwelling units. Regarding Option A for transportation capital expansion fees, Cram asked why commercial and office fees will decrease; Klingner responded that this is a consequence of using vehicle miles per trip as a basis, even though the intent is to use industry best practices. He reminded the group that this option is not trying to incentivize a certain type of development. Cram speculated that driving up these fees could hurt potential low-income housing developments, comparing the proposed fees to levels being charged by Boulder. He added that such large fee impacts to residential may be too major, stating that these fees are really taxes. Doddridge asked if any potential impact analysis has been done on new residential construction. Ms. Smith responded that, because this is based on future development, no such analysis has been done. She reiterated that these calculations are based on usage of current assets, not an attempt to increase revenue. Regarding the total fee increases as compared to other communities, Gebo asked if there was a particular need for Fort Collins to change their current fee structure. Ms. Smith responded that this chart was just for comparison purposed, and the reason for the fee increases is because asset values have also increased. She added that Fort Collins tries to be competitive. Dunlap asked if other communities have more open space to develop compared to Fort Collins; Smith confirmed that this is the case and that supply and demand is calculated into housing prices. Doddridge thanked them for doing a second presentation, and he highlighted pros and cons of the fees proposed. Based on various Board comments, Cram concluded that the Board does not care to make a position statement at this time. Ms. Smith added that Phase 2 will include development review fees in the fall of 2017. She stated that any individual or group feedback would be appreciated. Cram suggested that having materials in advance of any future presentations would be helpful. 3. I-Code Updates Gebo discussed the 2015 I-Code updates, saying the amendment package is now at the City Attorney’s office for review. The 1st reading by City Council is on June 6th, then the 2nd reading two weeks later, then adoption. He doesn’t anticipate any issues with adoption. Gebo reviewed some of the more controversial issues (mainly the vinyl siding burn situations). There was some discussion of this particular topic, including safety issues and legal involvement. ATTACHMENT 4 Building Review Board Page 4 April 27, 2016 4. CBO Update Gebo informed the Board of his intention to retire as CBO on August 1st, 2017. There was some discussion regarding a final luncheon for him with the Board and Ross Cunniff, City Council Liaison. OTHER BUSINESS None noted. The meeting adjourned at 2:23p.m. _____ Chief Building Official Alan Cram, Chair ATTACHMENT 4 MINUTES CITY OF FORT COLLINS AFFORDABLE HOUSING BOARD Date: Thursday, October 13, 2016 Location: City Clerk’s Large Conference Room, City Hall, 300 Laporte Ave. Time: 4:00–6:00pm For Reference Jeff Johnson, Chair Ray Martinez, Council Liaison Sue Beck-Ferkiss, Staff Liaison 970-221-6753 Board Members Present Board Members Absent Jeffrey Johnson, Chair (5:27pm) Diane Cohn Terence Hoaglund Eloise Emery Jennifer Bray Curt Lyons Kristin Fritz Staff Present Sue Beck-Ferkiss, Social Sustainability Specialist Dianne Tjalkens, Administrative Assistant/Board Support Noelle Currell, Senior Financial Analyst Matt Baker, Street Oversizing Program Manager Dean Klinger, Manager of Capital Projects/City Engineering Guests Chris Johnson, ED Bike Fort Collins Marilyn Heller, League of Women Voters Call to order: Jen called to order at 3:51pm. Agenda Review: Add update on Horsetooth Housing Catalyst project. Delay Public Comment to after Housing Applications ranking. Public Comment: No comment Review and Approval of Minutes Curt moved to approve the September minutes as presented. Kristin seconded. Motion passed unanimously, 5-0-0. Jeff arrived after vote. AGENDA ITEM 1: CDBG Application Ranking Note: Kristin Fritz recused herself from the ranking process. DMA Plaza pulled out as they were not awarded 9% tax credits this round. They will reapply in the future. Village on Shields rehab and Neighbor to Neighbor (N2N) boiler replacement are the two remaining requests. 1 | Page ATTACHMENT 5 Diane Cohn provided her rankings in writing before the meeting. Sue shared her comments with the board: “Highest rank for me is the Villages on Shields (Cunningham Corner). It's a full rehab project that allows the City to keep 286 units affordable, when it otherwise could have gone to market rate. FCHA clearly has a well thought out plan for how they will approach it, including building in costs for moving existing residents as they rehab. They have received City funds for this project over the past few years, and my hope is they are now in a position to get this rehab under way. I support the request from Neighbor to Neighbor as well, to insure these smaller affordable housing buildings remain affordable. I would suggest that this request does border on routine maintenance, though boilers and water heaters are expensive, and that N2N consider doing full work-up for rehab of these older units (roofs, exteriors, interiors, appliances, whatever is needed), and get those bid out. Also, would suggest that they work the costs of these more predictable wear-out costs into their budget for the properties. Both requests do fall within the goals of the Affordable Housing Strategic Plan, and keep us on track that way.” Comments/Q&A • Curt: N2N has gone through personnel changes. What is current status? o Sue: Executive Director has been there 4-5 years. Their staff is in good shape for work they are anticipating. Have hired a person with development experience. • Terence: Cost per unit for Village on Shields seems very high. o Sue: Cost per unit right now is high for new construction as well. • Eloise: Moving out blocks of residents to other places while make changes or one at a time? o Sue: Have robust displacement plan. Will do vacant units first, then move people into completed units. Working closely with residents. Hired consultant specifically for that process. • Jen: Does 20 year affordability start at application or completion of project? o Sue: Think it happens when final unit is completed, but can check. With tax credit get almost 40 more years of affordability. • Jen: Distressing that units are in such disrepair since only built in the ‘90s. o Sue: Housing Catalyst (formerly known as Fort Collins Housing Authority) understood would need significant rehab when purchased it, but underestimated. • Curt: Knowing that there is sufficient funding for both, and both are valid projects, put N2N project first since it is so small and won’t get in way of other project getting complete. o Jen: If boiler goes out, heading into winter. Make sure the people have heat. Priority to have work done right away. • Eloise: Selected Villages as #1. No units serve 30% AMI or lower, but good mix up to 60%. Preserves long term affordable housing so serves Affordable Housing Strategic Plan (AHSP). Will extend affordability restriction for 20 years. Readiness to proceed in 1 year; start construction 2017. They have funds, and plan to move residents, and these make it a winner. #2: N2N. Both important projects. Glad they are resolving the problem. Concern is that don’t have long term maintenance rehab plan. Are they lacking funds to create a long term plan? What kind of assistance do they need? Can the City help in some way? Will be better received for funding if have a long term plan. o Jen: Boiler is 50 years old. Had plenty of time to determine need. Easy to approve smaller budget items, but having comprehensive plan would be better. o Curt: With turnover of staff, maybe they have had communication issues. 2 | Page ATTACHMENT o Sue: Staff comments include note that HOME funds cannot be used for this project because a capital needs assessment has not been completed.  Eloise: Do we draw a line at the next funding cycle since they still haven’t completed the plan? Need repairs, but have made residents suffer. Do they really care about their tenants?  Jen: N2N is footing the bills on the utilities. Could save money with efficiencies. Villages is investing in many efficiencies. Basic necessity of owning a property is to factor in maintenance.  Eloise: Will extend affordability to 2036, but building will not last that long. • Sue: Suggest that include comments on lack of capital needs assessment in comments to CDBG. • Terence: Village on Shields as #1 as will get most units. Concerned at cost per unit. N2N as #2 due to lack of needs assessment. Both worthy projects. • Curt: Would be willing to change ranking based on lack of capital needs assessment. o Jen: agreed. Also changing ranking. • Sue: Unanimous ranking. Curt moved and Terence seconded a motion to approve ranking as follows: 1: Housing Catalyst: Village on Shields 2. Neighbor to Neighbor: Boiler replacement Motion passed unanimously, 4-0-0. Jeff arrived after vote. Kristin recused herself. ACTION ITEMS: Jen will present rankings to CDBG Commission. Public Comment: League of Women Voters affordable housing team will have April panel – “Youth, the Hidden Homeless” focusing on transitioning out of foster care. Planning and Zoning meeting at 6:00pm for Villages on Horsetooth. AGENDA ITEM 2: Horsetooth Land Bank Update—Kristin Fritz P&Z considering plan tonight. 96 units; 43 units at 30% AMI. More than Redtail ponds. 53 units at 60% AMI. Requesting alternative compliance to connection to public street. Cost of street impacts ability to serve as many 30% AMI units. Not in best interest of community in terms of health and safety. Planning staffed clubhouse, gardens, playground, amenities which building community. Cannot have these amenities if there must be a through street on the property. Also providing trail access, supported by City. P&Z does not want to set precedent of not requiring street. City had traffic engineer study impact of having street go through or not. Found no benefit of having street go through. This is last site of this area to develop. Because this is City Land Bank property, Housing Catalyst is asks the board consider writing a letter of support. Comments/Q&A • Sue: In past the board has written memos to Council and P&Z. Board has been mindful of not making site specific suggestions; however, have advocacy role for affordable housing. Have sent memos to P&Z, have had board members speak at P&Z as private citizens. Jeff asked Sue to draft a memo. Also, board could vote to have representative give comment at P&Z. Sue read draft memo. • Curt: Negative impact of street on livability for the community. • Jen: People living to the west would probably also prefer not having a through street. 3 | Page ATTACHMENT o Sue: the neighbors have spoken and do not want a street to go through. • Eloise: Traffic study shows no impact to surrounding streets, no reason to do it. • Terence: Actually already have precedent of streets not going through in other developments. • Kristin: Have really good argument for not having the street. Just need to make clear to P&Z. • Curt: Letter could be stronger on losses to community if have street. Why is letter intentionally vague? o Sue: Board previously has chosen not to give site specific recommendations. o Kristin: Because it is a City Land Bank property, may change the precedent for the board comment. • Eloise: Any neighbors for putting the street through? o Kristin: No. o Sue: But the neighborhood is interested. o Kristin: Could impact development if neighbors request street going through. Jen moved to approve the memo as drafted. Terence seconded. Motion passed 4-0-0. Kristin recused herself. AGENDA ITEM 3: Capital Expansion Fees—Tiana Smith Simultaneously looking at updating street oversizing fees and studying changes to capital expansion fees. Working together to present fee changes as a whole. Will present to Council Finance Committee on Monday. These fees are required of new development to pay proportionate share of service (buying into the system). They are updated annually for two inflation indexes, as well as every three to five years look at more comprehensive update to see if using appropriate indexes. Fees included: neighborhood parks, community parks, fire, police, and general government facilities. And working with Streets on street oversizing fees. Currently experiencing bubble effect—construction prices going up, but when updating fees, not tracking the same. Having lag effect on fees. Methodology is based on current level of service divided by number of people using it. Peer cities are using same methodology. Changes in 2016: updated assets info, updated land values, and considering how to calculate fees for general government, fire and police—may be better to use estimated construction cost rather than insured building values. Can also use a blended approach. Parks is working with a consultant to determine replacement cost for parks. Functional population and equivalent dwelling units are denominators for determining fees. Numbers are based on census data, but only get robust data once every 20 years. Fees are competitive with peer cities. Integrating street oversizing fee revisions into capital expansion fee revisions. Recommendations from consultant: change name to transportation capital expansion fee, use VMT as basis for determining impacts rather than trips (more accurate way of evaluating congestions/impact on streets, but has more impact on fees), simplify fees, and increase fees by 20% to collect development impacts that have not been collecting in the past. Want to increase capacity, including multimodal capacity. Changes would mean residential fees increase more than commercial. In total, fees may change -11% for commercial and up to 63% increase for industrial. Fee stack: utility fees, permit fees, plan review fees, non-City fees, capital expansion fees, etc. Based on median home price of $334K (2015), find that fees are low among peer cities. Looking at cost of code changes to single family residential; have seen increase of $5875 since 2009. Fees have been holding steady as percent comparison since 2012. Conclusion is that it is not these fees alone that are driving up median home sales price. Findings: fee changes are in line with expectations, timing for updates should be 3-5 years, blended approach to 4 | Page ATTACHMENT using insured and cost of construction is preferred. Council Work Session in November with planned implementation January 2017. Comments/Q&A • Curt: Sprawl based is using VMT. o Matt: Prioritize compact development. Have some sprawl. • Kristin: Is multifamily considered commercial? o Matt: Multifamily usually residential; mixed use is commercial. • Terence: Regarding overall fee increase, sprinklers have added up to $8K per unit. o Sue: Detached single family homes don’t have sprinklers. This is based on single family. • Terence: Already submitting permits for 2017. o Tiana: Have heard that. Have heard 6 months is better timeline. o Kristin: Affordable housing really needs more time. • Jen: Considering phasing in fees? o Tiana: Have done this in the past. o Jen: Pretty significant switch between residential and commercial. • Kristin: Six months would not be enough for affordable housing with complex financing. o Terence: Budget at least 6 months in advance. o Sue: With tax credit projects need more time. o Kristin: A year, minimum. This should also trigger more discussions on fee waivers. • Curt: Will also have impact on market de-facto affordable housing. Have seen fee increases lead to construction on larger units, increasing sprawl and negatively impacting affordability. o Matt: Considering discounts for transit oriented development. o Kristin: Have development that is set up great for bike and pedestrain, but not transit oriented. People could live there without a car. Should be considered in VMT calculations.  Matt: Fees pay for bike trails as well. Trip is a trip. • Curt: These fees are the same for greenfield as redevelopment/infill. No discount for utilizing existing infrastructure. Incentivizing building greenfield. Fees should not be the same for building all new infrastructures. o Tiana: The concept is that buying into current level of service for all of the existing assets. o Noelle: For infill, often putting in higher density. Not about where or how building, but how building influences demand on City services like fire, parks, government. • Kristin: Have you seen any examples of doing it differently? Building more efficiency with more density and infill. o Dean: For transportation fee, do have process for transit oriented development. Can show demand is different. Policy decisions to waive fees and backfill. For affordable housing, Council has discussed backfill to incentivize certain types of development. Integrity of fee is jeopardized, as are services, if change how fees are assessed. o Terence: Loveland backfills. o Sue: Have done rebates and waivers, but those programs are not available right now. Only Housing Catalyst can get fee waivers for 30% AMI and below. No current BFO offer for waivers or backfill.  Noelle: In BFO have to forecast revenues and expenses. Revenues were forecast with old fee structure. Potential for some available funds.  Sue: Have you put forward the intention to use some of increased revenue for backfill? • Tiana: Can discuss more. 5 | Page ATTACHMENT • Dean: Have to make a choice about level of service to backfill, or find an alternative funding source. Either shift fee, or lower level of service. o Tiana: Will have this dialogue with Council at Work Session. o Dean: Need targeted approach. • Sue: Opportunity to request funds has passed. Shifting some cost to development? o Matt: Collecting additional development impacts that we haven’t before. There is some shift for the transportation capital fund. o Dean: Full fair share of development should be collected from development. o Noelle: Not backfilling other fees. Fire fees now are going to pay off bonds used to finance building. Not making up for deficiencies; just paying for level of service. • Jen: This is for building itself/asset, not for employees. o Tiana: correct. • Jen: When consider the level city is built toward today, there is weight toward insured value. Also, seem to be voting on funding for rebuilds. Dramatic shift from commercial to residential is going to hugely impact housing affordability. Cost of construction doesn’t seem right, but flat average doesn’t either. • Tiana: Look at these every three to five years. If don’t do anything to assets, but population goes up, fees will go down. If adding a new building, but population is going down, fees will go up. Should even out over the long run. o Noelle: As hit build out, will not be collecting same fees. Will be looking at this periodically for next 20 years. • Sue: Have heard implementation timeline is too quick. Need six months for single family residential, and more time for tax credit multifamily; need waivers; concern that increase could chill development of affordable housing. o Terence: Fees go up every year in January, but never call it until January. Would like more advance notice of changes so can be worked into budgets. Writing contracts and doing budgets six months before building. o Tiana: Will also be sending post card to everyone in development community to notify of opportunities to give input. Economic Advisory Committee is making formal recommendation for Council packet. AHB can do the same. Due early November. • Curt: Didn’t seem all that receptive to input. Justifying decisions already made. o Sue: Receptive to some concepts the board provided. But changes will shift burden from commercial to residential. o Curt: Rationalization?  Kristin: Based on actual cost.  Sue: Found that residential trips are longer than commercial.  Kristin: Planners push VMT as better tool for impact analysis.  Curt: VMT is due to zoning. ACTION ITEM: Board will draft memo via email and approve at November meeting. Kristin will write first draft and circulate. Sue will provide draft minutes to board early. AGENDA ITEM 4: Other Business Topics & Speakers • November: Eloise will present draft plan for affordable housing educational campaign. Land Bank Program Review 6 | Page ATTACHMENT • Work Session October 25. Have completed outreach to date. Economic Advisory Committee, Natural Resources Advisory Board, Planning &Zoning, Youth Activity Board, and CDBG Commission. Also talked to Board of Realtors. Asking for flexibility in AMI levels, using AHSP as guidance, use of competitive RFP process, permission to consider mixed income or mixed use, consider way to sell property that is not usable for affordable housing. Have had a lot of support for adding flexibility to maximize parcels. Horsetooth is good example. In College charrette, see that parcel is really constrained, surrounded by affordable housing, and doesn’t have access to transit, schools, etc. Lot of opportunity there, but not under current ordinance. Continuing to learn as analyze program. Asking for permission to carefully craft ordinance changes. o Kristin: Should have charrette debrief for the board. o Jeff: If ordinance is changed, any sale would need to be approved by Council. And Council could make additional changes at that time. o Sue: Want to tie it to AHSP since that document gets updated. Council Comments • Chris (guest): Does this board have interest in making comment on Sunday Transit services? • Sue: Budget issues and competitive process are possible topics. • Jen: Will give comment on Sunday service and ranking process. Terence moved to support Sunday Transit service and have Jen provide this as comment at Council. Eloise seconded. Motion passed unanimously, 6-0-0. Meeting Adjourned: 5:53pm Next Meeting: November 3 7 | Page ATTACHMENT Impact Fees Adoption 5/16/17 Capital Expansion, Transportation, Electric Capacity City Council ATTACHMENT 6 Impact Fees 2 • Supports the cost of providing additional infrastructure to support new development Why We Have Them • Can only be used for the stated purpose of each fee; • Revenue source to build new infrastructure How We Use Them ATTACHMENT 6 Capital Expansion Fee Two Methodologies 3 How we Calculate CEFs How we Use CEFs What makes Fort Collins Great! Plan-Based = Future cost of Planned Capital Needs New Development pays a proportional share of future cost Level of Service = Current Value of Infrastructure New Development “buys-in” to the level of service Proportional Share Revenues collected used to pay for additional assets needed for growth Helps Maintain the Level of Service ATTACHMENT 6 Capital Expansion Fees Alternative 1-Twin Silos Removed Ø Methodology: Ø Level of Service – no change Ø Updated asset values to current replacement cost Ø Updated Population and dwelling units Ø Increase driven by construction & land cost Ø Park Fees driving 75% of increase 4 N'hood Comm. Gen. Land Use Type Unit Park Park Fire Police Gov't Updated Fees Resid., 1,201-1,700 sf Dwelling $2,616 $3,411 $739 $347 $845 $7,958 Resid., 1,701-2,200 sf Dwelling 2,644 3,446 751 352 858 8,051 Resid., over 2,200 sf Dwelling 2,947 3,841 836 392 955 8,971 Commercial 1,000 sf 0 0 633 297 1,451 2,381 Office and Other Services 1,000 sf 0 0 633 297 1,451 2,381 Industrial/Warehouse 1,000 sf 0 0 148 69 342 559 Change Resid., 1,201-1,700 sf Dwelling 774 1,849 344 149 380 3,496 Resid., 1,701-2,200 sf Dwelling 725 1,818 341 146 371 3,401 Resid., over 2,200 sf Dwelling 891 2,098 396 172 432 3,989 Commercial 1,000 sf 0 0 294 128 648 1,070 Office and Other Services 1,000 sf 0 0 294 128 648 1,070 Industrial/Warehouse 1,000 sf 0 0 68 28 154 250 Percent Change Resid., 1,201-1,700 sf Dwelling 42% 118% 87% 75% 82% 78% Resid., 1,701-2,200 sf Dwelling 38% 112% 83% 71% 76% 73% Resid., over 2,200 sf Dwelling 43% 120% 90% 78% 83% 80% Commercial 1,000 sf 87% 76% 81% 82% Office and Other Services 87% 76% 81% 82% Industrial/Warehouse 1,000 sf 85% 68% 82% 81% CEF Sub- Total ATTACHMENT 6 Transportation Capital Expansion Fees – Option A 5 Ø Methodology: Ø Plan Based – no change Ø Change in Calculation: Ø Trip Generation to Vehicle Miles Traveled Ø Option A - Updated to include Current City Capital Improvement Plan Ø Increases Residential & Industrial and Lowers Comm. ATTACHMENT 6 Rationale for Change in Calculation & Fee increase 6 Calculation Change – modified to include trip length • Impact on transportation system is more accurately measured by miles traveled than number of trips • Results in better proportionality and fairness • Does not increase overall revenue – raises residential/lowers commercial Fee Increase From Current Capital Improvement Plan (~20%) • Current fee does not account for impact of development on existing system • Adds proportional costs to build entire system (bike plan / ped plan / existing intersections) ATTACHMENT 6 Utility Fees: Electric Capacity Fee 7 Methodology – Change from Plan-Based to “Buy-In” Rational: Shift in costs from residential to commercial based on demands on system infrastructure -60% -40% -20% 0% 20% 40% 60% 80% 100% % Change Being Proposed to ECF % of Projects Developed in 2016 Single Family Multi-family Mixed Use Commercial ATTACHMENT 6 Utility Fees: Electric Demand by Rate Class 8 Rate Class % Total Customers % Total Demand Commercial - small 9.9% 10.6% Commercial - medium 0.8% 4.9% Commercial - large 0.7% 21.3% Industrial 0.0% 19.0% Residential 88.6% 44.2% Total 100.0% 100.0% ATTACHMENT 6 Neighboring Community Fee Comparison* 9 *Includes CEFs, Transportation, Utility PIFs, excludes Raw Water, Building Permit Fees Level of Service Higher in Fort Collins Fort Collins Fees Consistent with Neighboring Communities… Level of Service Higher in Fort Collins ATTACHMENT 6 Fee Comparison: For Median New Home Sales Price $437K 10 Fort Collins Without Raw Water, Fort Collins Fees Moving to the Middle of the Pack ATTACHMENT 6 Combined Fees Alternative 1 11 Electric Total $ Change % Change Land Use Type Unit Capacity Fees CEFs + Transp Current vs Updated Current vs Updated Updated Fees Resid., up to 700 sf Dwelling $5,436 $2,205 $1,349 $8,990 $1,808 25% Resid., 701-1,200 sf Dwelling 7,291 4,095 1,443 12,829 4,376 52% Resid., 1,201-1,700 sf Dwelling 7,958 5,317 1,537 14,812 4,819 48% Resid., 1,701-2,200 sf Dwelling 8,051 6,217 1,708 15,976 5,526 53% Resid., over 2,200 sf Dwelling 8,971 6,664 1,879 17,514 6,463 58% Commercial 1,000 sf 2,381 8,113 170 10,664 -2,880 -21% Office and Other Services 1,000 sf 2,381 5,977 227 8,585 -789 -8% Industrial/Warehouse 1,000 sf 559 1,929 1,986 4,474 1,939 76% CEF Sub- Total Transp. Option A ATTACHMENT 6 3 Step Phasing Over 27 Months Alternative 1 12 *These numbers do not include inflation estimates. Fees will be adjusted annually for CPI and CCI indices • Capital Expansion Fees - 3 steps beginning Oct 1 • Transportation CEFs - 2 steps…Option B then Option A • Electric Capacity – 1 step beginning Oct 1 Phasing Recommendation: Current 1-Oct-17 1-Jan-19 1-Jan-20 % Change % Change % Change Land Use Type Fees Step 1 Step 2 Step 3 Step 1 Step 2 Step 3 Updated Fees Resid., up to 700 sf $7,182 $7,091 $8,229 $8,990 -1.3% 16% 9% Resid., 701-1,200 sf 8,453 9,958 11,745 12,829 18% 18% 9% Resid., 1,201-1,700 sf 9,993 11,568 13,647 14,812 16% 18% 9% Resid., 1,701-2,200 sf 10,450 12,642 14,842 15,976 21% 17% 8% Resid., over 2,200 sf 11,051 13,711 16,184 17,514 24% 18% 8% Commercial 13,544 8,559 10,307 10,664 -37% 20% 3% Office and Other Services 9,374 6,846 8,229 8,585 -27% 20% 4% Industrial/Warehouse 2,535 3,976 4,390 4,474 57% 10% 2% ATTACHMENT 6 Alternative 2 Implement Modified Fee Proposal Now • 75% of Proposed CEF • Option B for Transportation CEF • Electric Capacity Fee as proposed 13 Form Citizen/Staff Working Team • Understand why City has fees and how they’re used • Understand inputs & calculations • Evaluate methodology & alternatives ATTACHMENT 6 Capital Expansion Fees @ 75% of Proposed 14 N'hood Comm. Gen. CEF Land Use Type Unit Park Park Fire Police Gov't Sub- Total Updated Fees Resid., 1,201-1,700 sf Dwelling $1,962 $2,558 $554 $260 $634 $5,969 Resid., 1,701-2,200 sf Dwelling 1,983 2,585 563 264 644 6,038 Resid., over 2,200 sf Dwelling 2,210 2,881 627 294 716 6,728 Commercial 1,000 sf 0 0 475 223 1,088 1,786 Office and Other Services 1,000 sf 0 0 475 223 1,088 1,786 Industrial/Warehouse 1,000 sf 0 0 111 52 257 419 Change Resid., 1,201-1,700 sf Dwelling 120 996 159 62 169 1,507 Resid., 1,701-2,200 sf Dwelling 64 957 153 58 157 1,388 Resid., over 2,200 sf Dwelling 154 1,138 187 74 193 1,746 Commercial 1,000 sf 0 0 136 54 285 475 Office and Other Services 1,000 sf 0 0 136 54 285 475 Industrial/Warehouse 1,000 sf 0 0 31 11 69 110 Percent Change Resid., 1,201-1,700 sf Dwelling 7% 64% 40% 31% 36% 34% Resid., 1,701-2,200 sf Dwelling 3% 59% 37% 28% 32% 30% Resid., over 2,200 sf Dwelling 8% 65% 43% 34% 37% 35% Commercial 1,000 sf 40% 32% 36% 36% Office and Other Services 40% 32% 36% 36% Industrial/Warehouse 1,000 sf 39% 26% 36% 36% ATTACHMENT 6 Transportation CEF Option B 15 Ø Methodology: Ø Plan Based – no change Ø Change in Calculation: Ø Trip Generation to Vehicle Miles Traveled Ø Option B - Updated plan based on portion of CIP Ø Excludes existing arterial intersection improvements and portions of Bike and Ped Plans. Revenue Neutral. Ø Increases Residential & Industrial and Lowers Comm. $ Change % Change Land Use Type Unit Current vs Updated Current vs Updated Updated Fees Resid., up to 700 sf Dwelling $1,827 -$78 -4% Resid., 701-1,200 sf Dwelling 3,392 1,249 37% Resid., 1,201-1,700 sf Dwelling 4,404 1,292 29% Resid., 1,701-2,200 sf Dwelling 5,150 2,038 40% Resid., over 2,200 sf Dwelling 5,520 2,408 44% Commercial 1,000 sf 6,721 -5,209 -78% Office and Other Services 1,000 sf 4,951 -2,809 -57% Industrial/Warehouse 1,000 sf 1,598 468 29% Transp. Option B ATTACHMENT 6 Alternative 2 Summary • CEFs @ 75% of Proposed • Option B for Transportation CEF • Electric Capacity Fee as proposed • No Phasing 16 CEF Electric Total $ Change % Change Land Use Type Unit Sub- Total Capacity Fees CEFs + Transp Current vs Updated Current vs Updated Updated Fees Resid., up to 700 sf Dwelling $4,077 $1,827 $1,349 $7,253 $71 1% Resid., 701-1,200 sf Dwelling 5,468 3,392 1,443 10,303 1,851 22% Resid., 1,201-1,700 sf Dwelling $5,969 4,404 1,537 11,910 1,917 19% Resid., 1,701-2,200 sf Dwelling 6,038 5,150 1,708 12,896 2,447 23% Resid., over 2,200 sf Dwelling 6,728 5,520 1,879 14,127 3,077 28% Commercial 1,000 sf 1,786 6,721 170 8,677 -4,868 -36% Office and Other Services 1,000 sf 1,786 4,951 227 6,964 -2,410 -26% Industrial/Warehouse 1,000 sf 419 1,598 1,986 4,003 1,468 58% Transp. Option B ATTACHMENT 6 Alternative 1 and 2 Comparison 17 Alternative 1 Alternative 2 ATTACHMENT 6 Alternative 1 and 2 Comparison Phasing 18 Alternative 1 Alternative 2 Current 1-Oct-17 % Change Land Use Type Fees Step 1 Step 1 Updated Fees Resid., up to 700 sf $7,182 $7,253 1% Resid., 701-1,200 sf 8,453 10,303 22% Resid., 1,201-1,700 sf 9,993 11,910 19% Resid., 1,701-2,200 sf 10,450 12,896 23% Resid., over 2,200 sf 11,051 14,127 28% Commercial 13,544 8,677 -36% Office and Other Services 9,374 6,964 -26% Industrial/Warehouse 2,535 4,003 58% N/A N/A N/A N/A ATTACHMENT 6 Summary 19 1. Alternative 1: (October 1, 2017 – January 1, 2020) • Capital Expansion Fees as proposed, phased in 3 steps over 27 months with Twin Silos removed from calculations • Transportation Capital Expansion Fees phased in 2 steps over 15 months, with Option B first, then Option A • Electric capacity fees effective immediately 2. Alternative 2: (End of May, 2017-October 2017) • CEFs @ 75% of Proposed • Option B for Transportation CEF • Electric Capacity Fee as proposed • Working group works through informed consent, alternatives ATTACHMENT 6 Backup 20 ATTACHMENT 6 Fire Fee Calculations Fire Fees Based on: Land + Building + Vehicle Cost - Debt x FC Share of Calls City’s Functional Pop Police Fees Based on: Land + Building + Vehicle Cost - Debt City’s Functional Pop General Government Fees Based on: Land + Building - Debt City’s Functional Pop 21 Fire Fee Calculation: Asset values reflect higher construction cost Population and dwelling units per latest Census Added assets with new fire stations Increase in Construction/Asset Values Driving Fee Increase…. Fire, Police & Government Fees Pay a Portion of New Infrastructure Increase in Construction/Asset Values Driving Fee Increase…. Fire, Police & Government Fees Pay a Portion of New Infrastructure Total Replacement cost of stations, apparatus, admin, training facilities Functional population ATTACHMENT 6 Parks Fee Calculations Parks Fees Based on: • Neighborhood Parks : • Radiant (2013) • Waters Way (2012) • Registry (2012) • Community Parks : • Spring Canyon (2006) • Fossil Creek (2003) 22 Parks Fee Calculation: Asset values reflect higher construction cost Population and dwelling units per latest Census Land values reflect higher land cost Increase in Construction & Land Values Driving Increase…. Parks Fees Pay All Capital Needs for New Parks Average Cost/Acre of Last 2-3 Parks Equivalent Dwelling Units ATTACHMENT 6 Parks Fees: Construction Cost Increase 23 • Worked with Ditesco Engineering Firm to evaluate current cost estimates for Spring Canyon and Fossil Creek to build same level of park based on their design standards Neighborhood Park Development Cost per Acre Original Current Cost/ Park/Year of Construction Cost Cost Acres Acre 2016 Radiant Park/2013 $2.2M $2.5M 10.00 $265K Waters Way Park/2012 $1.9M $2.1M 10.00 $226K RegistryPark/2012 $1.7M $1.8M 7.10 $274K Weighted Average $5.8M $6.3M 27.10 $253K Community Park Development Cost per Acre Original Current Cost/ Park/Year of Construction Cost Cost Acres Acre 2016 Spring Canyon Park/2006 $12.5M $17.9M 103.0 $200K Fossil Creek Park/2003 $9.3M $12.7M 99.5 $154K Weighted Average $21.9M $30.6M 202.5 $177K ATTACHMENT 6 Typical Park Elements 24 Community Parks • Large Recreation Facilities • Small/Specialty Recreation Facilities • Dog Park • Destination Playground • Multi-Purpose Fields • Passive Green Space • Restrooms • Shelters • Walks/Trails • Raw Water Irrigation Pond • Naturalistic Features • Unique Elements • Parking/Drives Neighborhood Parks • Multi-purpose Green/Fields • 1 Small/Specialty Recreation Facility • 1 Restroom • 1 Shelter • Playground • Walks • Raw Water Irrigation Pond (if feasible) ATTACHMENT 6 Typical Community Park Elements 25 Twin Silo Spring Canyon Fossil Creek Rolland Moore Edora Lee Martinez City Large Recreation Facilities 3T, 2B 3T, 2B 5T, 2B 4T, 2B 6T, 2B 4T, 2B 3T, 2B Small/Specialty Recreation Facilities BMX, 4 PB 3BB, SP, 2 SV, VB, MBP, BMX 2BB, 1 SP, Hockey 5BB, 1PB, 4SV, 2H, 3R 35H, Disc Golf, SP 3BB BB, 2H Dog Park 1 acre 2 acre 1 acre None None None None Destination Playground 1 1 1 1 1 1 1.5 Multi-Purpose Fields 10.4 acres 18.3 acres 6.3 acres 16 acres None None 6 acres Passive Green Space 6.2 acres 8 acres 8.7 acres 1.8 acres 5.5 acres 18 acres 23.3 acres Restrooms 2 3 3 2 2 2 1 Shelters 1G 5G, 3P 2G, 1P 4G 1G, 3P 1G 7G, 3P Walks/Trails 2.7 miles 2.5 miles 1.3 miles 1.5 miles 0.5 miles 1.8 miles 1.5 miles Raw Water Irrigation Pond 3 acres 1.5 acres 11 acres 2 acres 1.5 acres 9.3 acres 14.5 acres Naturalistic Features Creek Play, Native Areas Native Areas Native Areas Creek Edge Creek Edge Native Areas Lake Edge Unique Elements Harvest Room, Orchard, Trellis, CG Spray Park Water Feature CG CG Fitness Stations Pool, Fitness Stations, Train Parking / Drives 232 + 729 (school) 439 spaces 453 spaces 418 spaces 427 spaces 73 spaces 756 spaces Legend: T- Tennis B-Ballfield BB-Basketball SP-Skate Park SV-Sand Volleyball PB-Picklelball R-Racquetball MBP – MtnBike Park H-Horseshoe BMX – Bike Race CG-Community Garden G-Group Shelter P-Picnic Shelter ATTACHMENT 6 Typical Neighborhood Park Elements 26 2013 Radiant 2012 Registry 2011 Waters Way 2004 Soft Gold 2004 Westfield 2003 Homestead 2001 Harmony 2000 Cottonwood Glen 1999 Stewart Case 1997 Miramont Multi-Purpose Green/Fields 3.3 acres 2 acres 4 acres 4.8 acres 5 acres 2.5 acres 3 acres 5.8 acres 6 acres 3.5 acres 1 Small/Specialty Recreation Facility None 1/2BB, 1/2 T 1BB, 1 SP 1B, 2BB, BMX 3T, 1B 2BB 2B 2BB, 1B 1BB, 1B 1BB 1 Restroom ü ü ü ü ü ü ü ü ü ü 1 Shelter ü ü ü ü ü ü ü ü ü ü Playground ü ü ü ü ü ü ü ü ü ü Walks 0.8 miles 0.8 miles 1 mile 0.5 miles 0.5 miles 0.5 miles 0.5 miles 1 mile 0.5 miles 0.8 miles Raw Water Irrigation Pond (if feasible) None None 31 acres 1 acre 0.8 acres None 1 acre 1.5 acres 1 acre 1 acre Legend: T- Tennis B-Ballfield BB-Basketball SP-Skate Park SV-Sand Volleyball BMX – Bike Race ATTACHMENT 6 27 ($000’s) Twin Silo Spring Canyon Fossil Creek Large Recreation Facilities $1,642 $879 $1,524 Small/Specialty Recreation Fac. 476 723 602 Dog Park 176 198 45 Destination Playground 1,326 1,095 564 Multi-Purpose Fields 803 1,630 889 Passive Green Space 775 1,839 867 Restrooms 1,150 894 965 Shelters 325 545 412 Walks/Trails 708 1,482 1,262 Raw Water Irrigation Pond 235 414 195 Naturalistic Features 708 728 195 Unique Elements 820 201 444 Parking/Drives 2,150 2,181 1,298 TOTAL - PARK ELEMENTS $11,294 $12,809 $9,262 Community Park Element Construction Costs Spring Canyon and Fossil Creek Park values are based on 2016 estimated replacement costs Twin Silo Park values are actual construction costs ATTACHMENT 6 Community Park Construction Costs 28 ($0,000s) Twin Silo Spring Canyon Fossil Creek Park Elements $11,294 $12,809 $9,262 Contractor Fees 883 550 705 Development Fees 1,947 484 565 Design Fees 891 1,456 1,203 Raw Water 771 2,600 971 TOTAL $15,786 $17,899 $12,706 Note: All values provided are estimated costs to construct each park in 2016. ATTACHMENT 6 Neighboring Communities – Park Comparisons NRPA* Fort Collins Loveland Boulder Longmont Greeley Windsor Wellington Arvada Estimated Population 161,000 75,182 107,167 90,000 101,100 24,500 8,500 113,326 Number of Parks 60 35 65 42 40 16 8 109 Existing Acres of Park 1,025 492 1,173 453 752 184 110 1,747 Average Residents Per Park 2,266 2,683 2,148 1,649 2,143 2,528 1,531 1,063 1,040 Acres of Parkland/1,000 Residents 9.6 6.4 5.75 10.9 5.0 NA 7.5 12.9 15.4 Projected Acres of Parkland/1,000 Residents at City Build Out 5.1 9.6 9.8 41.0 Impact Fee for New Park Development Yes Yes Yes Yes Yes Yes Park Impact Fees $3,424.50 $5,561.00 $4,010.00 $3,974.50 $2,478.00 $2,481.00 *2017 National Recreation & Parks Association Benchmark ATTACHMENT 6 30 Option A – Based on the City’s current Capital Improvement Plans, 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 Transportation Capital Expansion Fee Examples: • Portions (~60%) of “build-out” of complete streets in Master Street Plan. (Suniga, Mountain Visa, Trilby Extension, Sharp Point, etc.) • Portions (~12%) of improvements to existing arterial intersections • Portions (~12%) of the Bicycle Master Plan (low stress network, etc.) and Pedestrian Master Plan (missing connections, etc.) ATTACHMENT 6 31 Transportation Capital Expansion Fee Option B – Based on the City’s current Capital Improvement Plan without the proportionate cost attributable for mitigation of the impacts of new development. ü Does not increase program revenue ü Provides approximately 80% of necessary funding to mitigate proportional impacts of development ATTACHMENT 6 Rationale for Change in Methodology Electric 32 The current method is: • Difficult to explain - cost allocation methodology • Designed for “green field” development • Uses planning assumptions instead of real data The proposed method is: • More transparent and understandable • Properly accounts for demands on infrastructure • Utilizes actual data – more accurate demand based cost allocation Single Family 21 $532K $258K -$273K Multi-family 8 $1745K $1246K -$499K MixedUse 3 $252K $438K $187K Commercial 48 $1748K $2517K $768K 2016 ECF Projects by Type Number of Projects in 2016 ECF (Current Method) ECF (Proposed Method) Change (Proposed Less ATTACHMENT 6 Utility Fees: New Development Electric Capacity 33 ATTACHMENT 6 Utility Fees: Re-development Electric Capacity 34 Customer Type (Sample projects) Example Re-develoment Existing ECF ($) Proposed ECF ($) Difference ($) Percent Change Residential Upgrade from 150 to 200 amps $ 875.00 $ 328.55 $ (546.45) -62% Commercial Upgrade from 600 amps to 800 amps (208v) $ 5,065.84 $ 9,825.17 $ 4,759.33 94% Commercial Upgrade from 200 amps to 400 amps (208v) $ 5,065.80 $ 9,378.47 $ 4,312.67 85% Commercial Upgrade from 1000 amps at 240v to 1000 amps 208v $ 8,455.48 $ 16,547.00 $ 8,091.52 96% ATTACHMENT 6 Fort Collins Cost of Code 35 $5,875 2015 IRC: Currently being finalized, no significant cost changes expected 2012 IRC: Underfloor framing fire protection 2012 Green Code (Local Amendments): Resource, energy and water efficiencies, indoor environment quality, operations, maintenance and education 2009 IRC: Additional insulation required for electric heat homes ATTACHMENT 6 Fort Collins Fee Stack Median Home Sales* 36 *Home Sales from IRES Report, Everitt Real Estate Center, CSU ATTACHMENT 6 Peer Cities Median Sales Comparison with Fees 37 ATTACHMENT 6 Fort Collins Fee Stack Median New Home Sales* 38 *New Home Sales from Metrostudy Market Reports 2016 Fort Collins Fees & Code Cost Impact is Declining % of Average New Home Sales Price Fort Collins Fees & Code Cost Impact is Declining % of Average New Home Sales Price ATTACHMENT 6 Public Outreach 39 Future Fee Updates Will Include Work Group of City Staff, Council, Public ATTACHMENT 6 What We Heard…. Boards and Commissions 40 Parks & Rec Concerned about housing affordability Level of service of parks has increased dramatically Economic Advisory Commission In support of fees Concerns about funding gap Affordable Housing Board Increases will “Chill” affordable housing projects Want more lead time before fees are effect. (6+ months) Human Relations Commission Need to incentivize smaller units Shouldn’t be burdening residential over comm. Housing Catalyst Big concerns on affordable housing > Lead time for implement. of fees Want fees phased in over time ATTACHMENT 6 What We Heard…. Business Community 41 Chamber MF hit hardest, will impact what gets developed Concerns about cost of doing business in FC Fees increases phased in over time NoCO Homebuilders Asked for more lead time Disagree with how land value is assessed Increased housing drives developers out Board of Realtors Huge impacts to MF, this will dis- incentivize smaller units Want more lead time before fees are effect. (6+ months) Downtown Development Authority Concerns about impacts to small businesses Would like a waiver process for affordable housing Developers already feel fees are high North Fort Collins Business Assn Perceptions of City “gold-plating” assets/infrastructure City needs to establish standards for assets Huge impacts to housing affordability ATTACHMENT 6 Population 42 Percent Housing Type 2000 Current Change Single-Family, Detached/Attached/MH 2.74 2.66 -2.92% Multi-Family 1.91 1.93 1.05% Total 2.45 2.43 -0.82% Average HH Size 2016 2012 Average Average Housing Type Unit HH Size HH Size Single-FamilyDetached Dwelling 2.75 2.76 Multi-Family Dwelling 1.93 1.85 Residential,up to 700 sq. ft. Dwelling 1.78 1.86 Residential,701-1,200 sq. ft. Dwelling 2.40 2.38 Residential,1,201-1,700 sq. ft. Dwelling 2.61 2.62 Residential,1,701-2,200 sq. ft. Dwelling 2.65 2.73 Residential,over 2,200 sq. ft. Dwelling 2.95 2.93 ATTACHMENT 6 Methodology Peer Cities 43 With a Few Exceptions, Peer Cities Currently All Have Similar Methodology ATTACHMENT 6 Consumer Price Index (CPI) vs Construction Cost Index (CCI) Recent CPI and CCI Indices Don’t Indicate Cost Inflation 44 Despite Perceived Rising Construction Costs In Front Range Recent CPI and CCI Indices Don’t Indicate Cost Inflation *Source for CPI = Bureau of Labor Statistics, Denver- Boulder-Greeley Source for CCI = Engineering News Record, Denver ATTACHMENT 6 45 Fee Coordination Objective & Timeline Objective: 1. Bring fees forward for review together to provide holistic view of the impact 2. Detailed fee study analysis every 4 years for CEF, Transportation & Development fees 3. Detailed fee study analysis every 2 years for Utility fees 4. Conduct fee study analysis in the odd year before BFO 2018 2019 2020 Phase I - Impact Fees QII QIII QIV QI QII QIII QIV QIV QIV QIV QIV Capital Expansion Fees Index Adopt Index Index Index Index Study Adopt StreetOversizings Index Adopt Index Index Index Index Study Adopt Utility PIF & Fees Adopt All Adopt Study Adopt Phase II - Impact & Development Fees Utility PIF & Fees Adopt Development Fees Adopt Study Adopt Phase III - Administrative Fees Administrative Fees Evaluation Adopt Adopt Wet Study 2021 Electric& CIL Fee Study Fee Study Fee Study 2016 2017 ATTACHMENT 6 -1- ALTERNATIVE 1 ORDINANCE NO. 049, 2017 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 CONCERNING REVISIONS TO TERMINOLOGY AND DECREASES AND PHASED INCREASES OF THE CAPITAL EXPANSION FEES AND AMENDING SECTION 3.3.2(G) OF THE LAND USE CODE TO REVISE RELATED TERMINOLOGY 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 expansion improvement fees by various amounts depending on the type of development proposed; and WHEREAS, City Council has decided to phase in the fee increases beginning on October 1, 2017; and -2- WHEREAS, in addition, some of the terminology used in Chapters 7.5, 8, and 24, and used in Section 3.3.2(G) of the Land Use Code, is also being revised; and WHEREAS, the City Manager is directed to form a working-group of City staff and community stakeholders to review future changes to the City’s Capital Expansion Fees and to present the recommendations of that working-group to the Council with any such proposed changes; 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 the title of Section 7.5, Article II is hereby amended to read as follows: ARTICLE II. - CAPITAL IMPROVEMENT EXPANSION FEES Section 3. That Section 7.5-16 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7.5-16. - Intent. The provisions of this Article are intended to impose certain fees to be collected at the time of building permit issuance in an amount calculated as shown herein for the purpose of funding the provisions of additional capital improvements as the City's population increases. The imposition of said fees is intended to regulate the use and development of land by ensuring that new growth and development in the City bear a proportionate share of the costs of capital expenditures necessary to provide community parkland, police, fire protection and, general government, neighborhood parkland and transportation capital improvements. Said fees shall not be used to collect more than is necessary to fund such capital improvements. The fees provided for in this Article are based on the City's Capital Improvement Expansion Cost Fee Study, dated May 21, 1996August 2016, as amended; the City's Street Oversizing Impact Fee Study , dated July 15, 1997, and Street Oversizing Impact Fee Study Update, dated November 28, 2000, as amended; and The ITE Trip Generation Manual, 6th Edition, 1997, published by the Institute of Traffic Engineers, as amended, City’s Transportation Capital Expansion Fee Study dated April 2017, as amended, which establish a fair and equitable allocation of costs and recognize past and future payments for new development, as well as credits for construction, dedication of land or cash contributions. Funds collected from said fees shall not be used to remedy existing deficiencies, but only to provide new capital improvements which are necessitated by new development. The amount of revenue generated by said fees shall not exceed the cost of providing the capital -3- improvements for which they are imposed, and the same shall be expended solely to provide the specified capital improvements. Section 4. That Section 7.5-17 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7.5-17 Definitions. . . . Capital expansion fee(s) shall mean individually and collectively the fees established in §§ 7.5-28, 7.5-29, 7.5-30, 7.5-31, 7.5-32 and 7.5-71. Capital improvements shall mean the purchase or long-term lease or lease-purchase of real property, the construction of public facilities or the purchase or long-term lease or lease-purchase of equipment or materials needed to facilitate the operation of such facilities or the delivery of services therefrom, to the extent that such property, improvements, equipment or materials are identified in the City's capital improvements plan as being totally or partially financed by the imposition of capital improvement expansion fees. For the purposes of this provision, long-term lease or lease-purchase shall mean a lease or lease-purchase of not less than five (5), subject to annual appropriation. Amounts expended for capital improvements shall include amounts that are treated as capitalized expenses according to generally accepted accounting principles and shall not include costs associated with the operation, administration, maintenance or replacement of capital improvements. . . . Transportation expansion fee shall mean the fee established in § 7.5-32. Street oversizingTransportation improvements shall mean those capital improvements needed to construct arterial or collector streets in the City as shown onin the City’s adopted of Fort Collins Master Street Plan, as amended, excluding the local street portions of such streets. Street oversizing improvements shall include, without limitation, the following capital improvements as described in said Master Street Plan or as described in the City’s adopted Bicycle Master Plan and Pedestrian Master Plan, as these plans may be hereafter amended: right-of-way acquisition; vehicle and bicycle lanes; curbs, gutters and other drainage structures; pedestrian ways; traffic control devices and signals; medians and median landscaping; and transit facilities, including, without limitation, transit stops and rolling stock, to the extent that such transit facilities are reasonably necessary to expand the City's transit system so as to provide transit services to feepayers, as that term is defined in § 7.5-17. However, transportation improvements shall not include the local street portion and related capital improvements required for a developed parcel under this Code and the Land Use Code. Section 5. That Section 7.5-18 of the Code of the City of Fort Collins is hereby amended to read as follows: -4- Sec. 7.5-18. - Calculation of capital improvement expansion fees. For each category of capital improvements for which a capital improvement expansion fee is established under the provisions of this Article, the amount of each such capital improvement expansion fee shall be determined on a per dwelling unit basis according to the gross floor area of each such dwelling unit (in the case of residential development) or on the basis of each square foot of new construction (in the case of commercial or industrial development). The amount of the transportation expansion fee shall be determined on the basis of square footage for residential developments and based on type of use for other developments. The amount of each capital expansion fee, except for the street oversizing capital improvementtransportation expansion fee, established in code section 7.5-32, will be increased or decreased annually according to the Denver-Boulder Consumer Price Index for Urban Consumers, as published by the Bureau of Labor Statistics. The amount of the street oversizing capital improvementtransportation expansion fee will be increased or decreased annually according to the Engineering News Record Denver Regional Construction Cost Index. In addition, the methodologies used to set each fee shall be reviewed and compared to the City's actual infrastructure costs at least once every five (5) years, and adjustments made in accordance with such review and with the provisions of § 7.5-16 of this Code. Section 6. That Section 7.5-19 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7.5-19. - Imposition, computation and collection of fees. (a) Payment of the fees imposed under the provisions of this Article shall be required as a condition of approval of all development in the City for which a building permit is required. The amount of such fees has been calculated using current levels of service and the data and methodologies described in the City’s Capital Improvement Expansion FeeCost Study, dated May 21, 1996 August 2016, as amended; the City's Street Oversizing Impact Fee Study, dated July 15, 1997, and Street Oversizing Impact Fee Study Update, dated November 28, 2000, as amended; and The ITE Trip Generation Manual, 6th Edition, 1997, published by the Institute of Traffic Engineers, as amended. and the City’s Transportation Capital Expansion Fee Study dated April 2017, as amended. The fees due for such development shall be payable by the feepayer to the Building Official prior to or at the time of issuance of the first building permit for the property to be developed, except to the extent that an agreement deferring all or any portion of such payment has been executed by the City providing for a different time of payment approved by the City Council by resolution. If, during the period of any such deferral, the amount of the deferred fee is increased by ordinance of the City Council, the fee rate in effect at the time of payment shall apply. If the building permit for which a fee has been paid has expired, and an application for a new building permit is thereafter filed, any amount previously paid for a capital improvement expansion fee and not refunded by the City shall be credited against any additional amount due under the provisions of this Article at the time of application for the new building permit. . . . -5- Section 7. That Section 7.5-20 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7.5-20. - Offsets and credits. (a) The City shall offset the reasonable costs of any capital improvements constructed, or real property dedicated, by or on behalf of any property owner or developer of real property from whom a fee is due and payable under this Article for that category of capital improvement, pursuant to the following requirements and any additional administrative regulations that may be established by the City Manager: (1) No offset or credit shall be given for the dedication or construction of capital improvements not shown on the City's capital improvements plan, or, in the case of the street oversizing capital improvementtransportation expansion fee, for any capital improvement other than a street oversizingtransportation improvement, unless otherwise agreed to by the City. . . . (4) A property owner or developer claiming entitlement to an offset or credit shall apply for the same prior to or at the time of application for the issuance of any building permit for the development in question, which application shall be on a form provided by the City for such purpose. Upon receipt of such application, the Financial Officer or, in the case of the street oversizing capital improvement feetransportation expansion fee, the City Engineer, shall determine, in writing, the maximum value of the offset or credit that may be applied against fees due and payable from the applicant. . . . Section 8. That Section 7.5-22 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7.5-22. - Use of fee proceeds. (a) The fees collected for each category of capital improvement specified in Division 2 of this Article shall be used to finance or to recoup the costs of any capital improvements identified in the applicable capital improvements plan, except that fees collected for street oversizingtransportation improvements shall be used only to finance or recoup the costs of such improvements. Eligible costs which may be paid from revenues derived from such fees may include, without limitation, planning, design, surveying, permitting and engineering feescosts; the cost of purchasing or leasing real property; construction costs; other capital improvement costs; and the costs of administering the capital improvement expansioncollection and expenditure of the fees program. The proceeds of such fees may also be used to pay the principal sum and interest and other finance costs on bonds, notes or other obligations issued by or on behalf of the City to finance such capital improvements. The City shall be entitled to retain four (4) percent of the fees collected under this Article to cover the costs associated with the collection of the same, and the administration, investment, accounting, expenditure and auditing of the funds collected. -6- (b) Fees collected under the provisions of this Article shall not be used to pay for any of the following expenses: (1) Costs incurred for the construction, acquisition or expansion of capital improvements or assets other than those identified in the applicable capital improvements plan or in the case of the street oversizing capital improvementtransportation expansion fee, any capital improvement other than a street oversizingtransportation improvement; (2) Costs incurred for the repair or maintenance of existing or new capital improvements or facilities expansions; or (3) Costs incurred for the ongoing administration or operation of the funded and constructed capital improvements. (c) Annually, the City Manager shall present to the City Council a proposed capital improvement program for each capital improvement for which a capital improvement expansion fee is charged. Such program shall assign funds, including any accrued interest, from the several capital improvement expansion fee accounts to specific capital improvement projects and related expenses. Section 9. That Section 7.5-23 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7.5-23. - Appeals. . . . (b) The burden of proof in any such hearing shall be on the applicant to demonstrate that the amount of fee or offset or credit was not properly calculated by the City. In the event of an appeal of the amount of a fee, the feepayer shall, at his or her expense, prepare and submit to the City Manager an independent fee calculation study for the fee in question. The independent fee calculation study shall follow the methodologies used in the City’s Capital Improvement Expansion Cost Fee Study, dated May 21, 1996 August 2016, as amended, or the City's Street Oversizing Impact Fee Study, dated July 15, 1997Transportation Capital Expansion Fee Study dated April 2017, as amended, whichever is applicable. The independent fee calculation study shall be conducted by a professional in impact fee analysis. The burden shall be on the feepayer to provide the City Manager all relevant data, analysis and reports which would assist the City Manager in determining whether the capital improvement expansion fee should be adjusted. The City Manager shall modify said amount only if there is substantial competent evidence in the record that the City erred, based upon the methodologies contained in the City’s Capital Improvement Expansion Cost Fee Study, dated May 21, 1996 August 2016, as amended, or the City's Street Oversizing Impact Fee Study, dated July 15, 1997Transportation Capital Expansion Fee Study dated April 2017, as amended, whichever is applicable. Section 10. That Section 7.5-24 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7.5-24. - Entitlement to refunds for nonappropriation/nonexpenditure. -7- . . . (b) In determining whether fee revenues have been appropriated or expended within the requisite periods of time specified in Subsection (a), monies in the applicable capital improvement expansion fee funds and accounts shall be considered to be appropriated and expended on a first in, first out basis; that is, the first fees paid shall be considered the first fees appropriated and expended. . . . Section 11. That Section 7.5-25 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7.5.25 – Procedure to obtain refund. . . . (d) With respect to refunds based upon abandonment, within ten (10) working days after the application is determined sufficient and site restoration has been completed as required pursuant to § 7.5-24.1, the applicant shall be entitled to a refund, except that the City shall retain an additional two (2) percent of the impactamount of the fee to be refunded to offset the costs of administering the refund. . . . Section 12. That Section 7.5-28 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7.5-28. - Community parkland capital improvement expansion fee. (a) There is hereby established a community parkland capital improvement 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 As of January 1, 2020 Resid., up to 700 sq. ft. and under $1,102.00 $1,513.00 $1,923.00 $2,334.00 Resid., 701 to 1,200 sq. ft. 1,414.00 1,984.00 2,553.00 3,123.00 Resid., 1,201 to 1,700 sq. ft. 1,562.00 2,178.00 2,795.00 3,411.00 Resid., 1,701 to 2,200 sq. ft. 1,628.00 2,234.00 2,840.00 3,446.00 Resid., over 2,201 sq. ft. and over 1,743.00 2,442.00 3,142.00 3,841.00 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. -8- (b) All fees collected under this Section shall be deposited into a separate account within the capital improvement expansion fund to be known as the "community parkland capital improvement expansion fee account." established in § 8-95. This account shall be an interest bearing account, and any interest income earned on the fees shall be credited to the account. Funds withdrawn from the community parkland facilities capital expansion fee account shall be used only for the purposes specified in Subsection (a) of this Section and said expenditures shall be subject to the provisions of this Article. Section 13. That Section 7.5-29 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7.5-29. - Police capital improvement expansion fee. (a) There is hereby established a police capital improvement 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 As of January 1, 2020 Resid., up to 700 sq. ft. and under $141.00 $173.00 $204.00 $236.00 Resid., 701 to 1,200 sq. ft. 178.00 225.00 272.00 319.00 Resid., 1,201 to 1,700 sq. ft. 198.00 248.00 297.00 347.00 Resid., 1,701 to 2,200 sq. ft. 206.00 255.00 303.00 352.00 Resid., over 2,2001 sq. ft. and over 220.00 277.00 335.00 392.00 Commercial buildings (per 1,000 sq. ft.) 169.00 212.00 254.00 297.00 Industrial buildings (per 1,000 sq. ft.) 41.00 50.00 60.00 69.00 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. (b) All fees collected under this Section shall be deposited into a separate account within the capital improvement expansion fund to be known as the "police capital improvement expansion fee account." established in § 8-96. This account shall be an interest bearing account, and any interest income earned on the fees shall be credited to the account. Funds withdrawn from the police capital improvement expansion fee account shall be used only for the purposes specified in Subparagraph (a) of this Section and said expenditures shall be subject to the provisions of this Article. -9- (c) The fees collected under this Section for commercial and industrial buildings between October 3, 2013, and December 31, 2014, shall be sixty (60) percent of the amount shown in Subsection (a) above; those collected between January 1, 2015, and December 31, 2015, shall be eighty (80) percent of the amount shown in Subsection (a); thereafter, the full amount shown in Subsection (a) shall be collected. Section 14. That Section 7.5-30 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7.5-30. - Fire protection capital improvement expansion fee. (a) There is hereby established a fire protection capital improvement 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 As of January 1, 2020 Resid., up to 700 sq. ft. and under $281.00 $355.00 $428.00 $502.00 Resid., 701 to 1,200 sq. ft. 357.00 464.00 572.00 679.00 Resid., 1,201 to 1,700 sq. ft. 395.00 510.00 624.00 739.00 Resid., 1,701 to 2,200 sq. ft. 410.00 524.00 637.00 751.00 Resid., over 2,2001 sq. ft. and over 440.00 572.00 704.00 836.00 Commercial buildings (per 1,000 sq. ft.) 339.00 437.00 535.00 633.00 Industrial buildings (per 1,000 sq. ft.) 80.00 103.00 125.00 148.00 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. (b) All fees collected under this Section shall be deposited into a separate account within the capital improvement expansion fund to be known as the "fire protection capital improvement expansion fee account." established in § 8-97. This account shall be an interest bearing account, and any interest income earned on the fees shall be credited to the account. Funds withdrawn from the fire protection capital improvement expansion fee account shall be used only for the purposes specified in Subparagraph (a) of this Section and said expenditures shall be subject to the provisions of this Article. (c) The fees collected under this Section for commercial and industrial buildings between October 3, 2013, and December 31, 2014, shall be sixty (60) percent of the amount shown in Subsection (a) above; those collected between January 1, 2015, and December 31, 2015, -10- shall be eighty (80) percent of the amount shown in Subsection (a); thereafter, the full amount shown in Subsection (a) shall be collected. Section 15. That Section 7.5-31 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7.5-31. - General governmental capital improvement expansion fee. (a) There is hereby established a general governmental capital improvement 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 As of January 1, 2020 Resid., up to 700 sq. ft. and under $330.00 $441.00 $493.00 $574.00 Resid., 701 to 1,200 sq. ft. 423.00 540.00 657.00 774.00 Resid., 1,201 to 1,700 sq. ft. 465.00 592.00 718.00 845.00 Resid., 1,701 to 2,200 sq. ft. 487.00 611.00 734.00 858.00 Resid., over 2,2001 sq. ft. and over 523.00 667.00 811.00 955.00 Commercial buildings (per 1,000 sq. ft.) 803.00 1,019.00 1,235.00 1,451.00 Industrial buildings (per 1,000 sq. ft.) 188.00 239.00 291.00 342.00 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. (b) All fees collected under this Section shall be deposited into a separate account within the capital improvement expansion fund to be known as the "general governmental capital improvement expansion fee account." established in § 8-93. This account shall be an interest bearing account, and any interest income earned on the fees shall be credited to the account. Funds withdrawn from the general governmental capital improvement expansion fee account shall be used only for the purposes specified in subparagraph (a) of this Section and said expenditures shall be subject to the provisions of this Article. (c) The fees collected under this Section for commercial and industrial buildings between October 3, 2013, and December 31, 2014, shall be sixty (60) percent of the amount shown in Subsection (a) above those collected between January 1, 2015, and December 31, 2015, shall be eighty (80) percent of the amount shown in Subsection (a); thereafter, the full amount shown in Subsection (a) shall be collected. -11- Section 16. 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. - Street oversizing capital improvementTransportation expansion fee. There is hereby established a street oversizing capital improvementtransportation expansion fee which shall be imposed pursuant to the provisions of this Article for the purpose of funding street oversizingtransportation improvements related to the 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: STREET OVERSIZING CAPITAL EXPANSION FEE SCHEDULE Residential (per housing unit) SF detached 9.57 $3,152 per D.U. MF and other housing 6.59 2,171 per D.U. Hotel/motel 9.02 2,969 per D.U. Apartment 6.65 2,190 per D.U. Retirement community 2.81 926 per D.U. Assisted living 4.52 1,489 per D.U. Congregate care facility 2.02 665 per D.U. Residential condominium 5.81 1,914 per D.U. Duplex 7.18 2,365 per D.U. Townhome 5.86 1,930 per D.U. Mobile Home 4.99 1,644 per D.U. Non Residential (per 1,000 sq. ft.) Community/shopping center 1000K GLA 32.09 $6.16/sq. ft. 500K GLA 38.65 7.41/sq. ft. 200K GLA 54.50 10.45/sq. ft. 50K GLA 91.65 12.09/sq. ft. Movie theater 78.06 14.97/sq. ft. Fitness/racquet club 14.03 2.89/sq. ft. Day Care 79.26 6.39/sq. ft. Government office 68.93 14.22/sq. ft. Building materials/lumber 45.16 8.66/sq. ft. Specialty retail 44.32 8.50/sq. ft. Discount superstore 53.15 10.20/sq. ft. Nursery (garden center) 36.08 7.44/sq. ft. Sit down restaurant 127.15 16.77/sq. ft. -12- Fast food restaurant w/ drive-up 496.12 39.97/sq. ft. Car sales 33.34 6.88/sq. ft. Service station 168.56/pump 13,581.46/pump Wholesale tire store 20.36 4.20/sq. ft. Self service car wash 5.79 466.52/stall Supermarket 102.24/stall 13.48/sq. ft. Convenience market w/ gas 542.60 43.72/sq. ft. Pharmacy/drugstore 88.16 7.10/sq. ft. Furniture store 5.06 1.63/sq. ft. Bank 80.87 6.06/sq. ft. Drive-in bank 148.15 11.94/sq. ft. Insurance building 11.45 2.36/sq. ft. Manufacturing 3.82 1.23/sq. ft. Warehousing 3.56 1.15/sq. ft. Light industrial 6.97 2.25/sq. ft. Mini-warehouse 2.50 0.81/sq. ft. Business park 12.76 4.11/sq. ft. General office 200K GFA 11.54 3.72/sq. ft. 50K GFA 16.31 5.26/sq. ft. 10K GFA 24.39 7.86/sq. ft. Recreational 3.64/ac 1,173.15/acre City park 3.66/ac 1,179.60/acre Golf course 5.04/ac 1,624.36/acre Elementary school 1.29/student 415.76/student Private school (K-8) 2.48/student 799.29/student Church/synagogue 9.11 2.94/sq. ft. Library 56.24 4.53/sq. ft. Hospital 16.50 5.32/sq. ft. Nursing home 2.37/bed 763.84/bed Medical clinic 31.45 10.14/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. -13- 3. As used in Notes 1 and 2 above, the "Trip Adjustment Factor" shall mean the applicable trip adjustment factor as set in the City's most recent Street Oversizing Impact Fee Study. TRANSPORTATION EXPANSION FEE SCHEDULE Current October 1, 2017 January 1, 2019 Resid., up to 700 sq. ft. $1,905.00 $1,827.00 $2,205.00 Resid., 701 to 1,200 sq. ft. 2,143.00 3,392.00 4,095.00 Resid., 1,201 to 1,700 sq. ft. 3,112.00 4,404.00 5,317.00 Resid., 1,701 to 2,200 sq. ft. 3,112.00 5,150.00 6,217.00 Resid., over 2,2001 sq. ft. 3,112.00 5,520.00 6,664.00 Commercial 11,930.00 6,721.00 8,113.00 Office and Other Services 7,760.00 4,951.00 5,977.00 Industrial/Warehouse 1,130.00 1,598.00 1,929.00 Section 17. That Section 7.5-71 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7.5-71. - Collection of nNeighborhood parkland capital expansion fee. (a) Hereafter, pPayment of a neighborhood parkland capital expansion fee in accordance with this Section shall be required as a condition of approval of all residential development for which a building permit is required, as thosethese terms are defined in § 7.5-17 of this Code. The fees due for such development shall be payable by the feepayer to the Building Official prior to or at the time of issuance of the first building permit for the property to be developed, unless an agreement has been executed by the City which provides for a different time of payment. All such payments shall be deposited in the “neighborhood parkland capital expansion fee fund” by the Financial Officer in the fund createdestablished in § 8-80. Only one (1) fee shall be charged for any dwelling unit. No additional fee for acquisition and development of neighborhood parks shall be charged for the same dwelling unit. If the building permit for which a fee has been paid has expired, and an application for a new building permit is thereafter filed, any amount previously paid for a neighborhood parkland capital expansion fee and not refunded by the City shall be credited against any additional amount due under the provisions of this Article at the time of application for the new building permit. (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 As of January 1, 2020 Resid., up to 700 sq. ft. and under $1,300.00 $1,463.00 $1,627.00 $1,790.00 -14- Resid., 701 to 1,200 sq. ft. $1,667.00 1,910.00 2,153.00 2,396.00 Resid., 1,201 to 1,700 sq. ft. $1,842.00 2,100.00 2,358.00 2,616.00 Resid., 1,701 to 2,200 sq. ft. $1,919.00 2,161.00 2,402.00 2,644.00 Resid., over 2,2001 sq. ft. and over $2,056.00 2,353.00 2,650.00 2,947.00 . . . (e) The methodologies used to set the neighborhood parkland capital expansion fees applicable to parklands shall be reviewed and compared to the City's actual infrastructure costs at least once every five (5) years, and adjustments made in accordance with such review and with the provisions of § 7.5-16 of this Code. Section 18. That Section 7.5-72 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7.5-72. - Dedication of land in lieu of fee. In lieu of the payment of the neighborhood parkland capital expansion fee under § 7.5-71any fees required in this Article, an owner of lands may negotiate with the City for the dedication of lands to be used for neighborhood park purposes. If a satisfactory agreement is reached for the dedication of such lands, the price established for such lands may be credited on the fees to be chargedagainst the neighborhood parkland capital expansion fee owed under this Article§ 7.5-71 and the agreement reached between the parties shall be set forth in writing and kept on file in the office of the City Clerk. Similarly, a credit onagainst the neighborhood parkland capital expansion fee under § 7.5-71 the fees to be charged under this Article may be given on account of the development of lands dedicated for neighborhood park purposes in such amount as may be negotiated for and agreed upon between the City and any developer. Nothing contained in this Section shall be construed to cancel or annul any agreement heretofore entered into by the City concerning the dedication of parkland and credits on fees of the type established by this Article, and all such agreements shall continue in full force and effect, and any credits remaining under such agreement shall apply toward the fee assessed by this Article. Section 19. That Section 8-80 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 8-80. - Neighborhood parkland capital expansion fee fund. There is hereby created a fund to account for the acquisition, and development and administration of neighborhood parks known as the neighborhood parkland capital expansion fee fund. Revenues deposited into the fund shall include the neighborhood parkland capital expansion fees collected pursuant to § 7.5-71. Expenditures from this fund shall be made for approved purposes for the acquisition, planning, design, surveying, permitting, engineering, construction and other capital costs for new development and administration of neighborhood parks as provided in § 7.5-71, including purchases of new or replacement park site equipment and plantings. -15- Section 20. That Section 8-87 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 8-87. - Street oversizingTransportation improvements fund. There is hereby created a fund to account for construction of arterial and collector streets known as the street oversizing transportation improvements, as defined in § 7.5-17, to be known as the transportation improvements fund. Revenues deposited into this fund shall include all moniestransportation expansion fees collected pursuant to § 24-111 et seqChapter 7.5 and all monies collected pursuant to Division 2 of Article III of Code Chapter 24. Expenditures shall be made as specified in § 24-111 et seqChapter 7.5 and Division 2 of Article III of Code Chapter 24. Section 21. That Section 8-92 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 8-92. - Capital improvement expansion fee fund. There is hereby created a fund to account for the acquisition, construction and development of capital improvements as defined in § 7.5-17. Revenues shall include all capital expansion fees collected pursuant to Chapter 7.5, but shall not include the neighborhood parkland capital expansion fee collected and deposited pursuant to § 7.5-71 and § 8-80 or the transportation expansion fee collected and deposited pursuant to § 7.5-32 and § 8-87. and eExpenditures from this fund shall be made solely for the applicable purposes described in Chapter 7.5therein. Section 22. That Section 8-93 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 8-93. - General governmental capitalimprovement expansion fee account. There is hereby created an account within the capital improvement expansion fee fund to account for the acquisition, construction and development of capital improvements related to the provision of general governmental services, as described in the capital improvements plan for general governmental services. Revenues shall include all fees collected pursuant to Subsection§ 7.5-31(a). Expenditures from this account shall be made solely for the purposes described in Subsection§ 7.5-31(b) and according to all other applicable provisions of Chapter 7.5. Section 23. That Section 8-95 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 8-95. - Community parkland capital improvement expansion fee account. There is hereby created an account within the capital improvement expansion fee fund to account for the acquisition, construction and development of capital improvements related to the provision of community parklands, as described in the capital improvements plan for community parkland. Revenues shall include all fees collected pursuant to Subsection§ 7.5-28(a). Expenditures from this account shall be made solely for the purposes described in Subsection§ 7.5-28(b) and according to all other applicable provisions of Chapter 7.5. -16- Section 24. That Section 8-96 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 8-96. - Police capital improvement expansion fee account. There is hereby created an account within the capital improvement expansion fee fund to account 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. Revenues shall include all fees collected pursuant to Subsection§ 7.5-29(a). Expenditures from this account shall be made solely for the purposes described in Subsection§ 7.5-29(b) and according to all other applicable provisions of Chapter 7.5. Section 25. That Section 8-97 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 8-97. - Fire protection capital improvement expansion fee account. There is hereby created an account within the capital improvement expansion fee fund to account 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. Revenues shall include all fees collected pursuant to Subsection§ 7.5- 30(a). Expenditures from this account shall be made solely for the purposes described in Subsection§ 7.5-30(b) and according to all other applicable provisions of Chapter 7.5. Section 26. That Section 24-111 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 24-111. Definitions . . . Exemption shall mean the granting of a partial or complete waiver of the street oversizingtransportation expansion fee not to exceed fifty thousand dollars ($50,000.). Fee shall mean the street oversizing capital improvement expansion fee. . . . Transportation expansion fee shall mean the fee established in § 7.5-32. Transportation Ffund shall mean the street oversizingtransportation improvement fund established in § 8-87. Street oversizingTransportation improvements shall mean those capital improvements needed to construct arterial or collector streets in the City as shown on the City’s adopted of Fort Collins Master Street Plan, as amended, excluding the local street portions of such streets. Street oversizing improvements shall include, without limitation, the following capital improvements when described in said Master Street Plan or as described in the City’s adopted Bicycle Master Plan and Pedestrian Master Plan, as these plans may be hereafter amended: right-of-way -17- acquisition; vehicle and bicycle lanes; curbs, gutters and other drainage structures; pedestrian ways; traffic control devices and signals; medians and median landscaping; and transit facilities, including, without limitation, transit stops and rolling stock, to the extent that such transit facilities are reasonably necessary to expand the City's transit system so as to provide transit services to feepayers, as thatthis term is defined in § 7.5-17. However, transportation improvements shall not include the local street portion and related capital improvements required for a developed parcel under this Code and the Land Use Code. Section 27. That Section 24-112 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 24-112. - Street oversizingTransportation improvements reimbursement program. (a) Street oversizing capital improvement feeThe transportation expansion fee revenue collected pursuant to §§ 7.5-19 and 7.5-32 and deposited in the transportation fund shall be utilized to pay certain costs associated with and necessary for the following transportation improvements: (1) increasing the width of streets and sidewalks from local access status to arterial or collector status; (2) acquiring the necessary right-of-way to accommodate the expansion of such streets and sidewalks; (3) providing traffic signalization when required because of collector or arterial status; and (4) expanding the City's transit system. Payments for such purposes may be made directly by the City or in the form of reimbursements to the developers of real property in the City according to the provisions of this Division. Those categories of cost which will be eligible for reimbursement from the transportation fund shall be determined by the City Engineer, who shall maintain an itemization of the same in the form of administrative guidelines. The City shall not participate in the cost of street oversizingthese or any other transportation improvements required solely for the special use and benefit of the adjacent development, including, without limitation, any acceleration or deceleration lanes, double left-turn lanes, or traffic-control signals that are required by the transportation impact study for the development or by the Traffic Engineer. Notwithstanding the foregoing, street oversizingmonies from the transportation funds may be utilized to pay for all traffic-control signals associated with arterial-arterial intersections and for one (1) such signal per collector-arterial intersection per mile. Monies expended for street oversizingfrom the transportation fund improvements shall not be utilizedused to pay for the cost of increasing the depth of the local access portion of any street required to be constructed to arterial or collector standards. (b) The City Council shall, by resolution, adopt criteria to evaluate the community benefit of streets in a development project to determine whether street oversizingtransportation improvements are needed. If the City determines that the construction of street oversizingtransportation improvements do not convey a measurable community benefit according to such criteria, then no monies expended by the developer for such street oversizing expenditurestransportation improvements shall be eligible for reimbursement by the City, and the street construction requirements for the development shall be limited to those reasonably necessary to offset the traffic impacts of the development. All collector and arterial streets, if required, shall be constructed to such specifications as shall be necessary in the judgment of the City Engineer based on traffic safety considerations, and taking into -18- account the transportation impact of the development upon such arterial or collector street. No such arterial street shall be constructed to a width of less than thirty-six (36) feet. (c) The City shall have no obligation to make reimbursement payments for street oversizingtransportation improvements unless funds for such payments shall first have been budgeted and appropriated from the transportation fund by the City Council; provided, however, that, to the extent that funds are not available for such reimbursement, the City shall not require construction, at the developer's expense, of any oversized portion of streets not reasonably necessary to offset the traffic impacts of the subject development, unless otherwise agreed upon by the City and the developer. The City shall have no obligation to make payment for street oversizingtransportation improvements unless a written request for such payment in form acceptable to the City and providing reasonable detail and proof of the expenses incurred shall have been submitted to the City within ninety (90) days of written City acceptance of such completed improvements. (d) In order to limit the reimbursement payments under this Section to the amount budgeted and appropriated, the City may make the following payments from the transportation fund subject to the limitations as contained in Subsection (c) above: (1) Upon acceptance and approval by the City of a payment request for street oversizingtransportation funds, the City may pay a percentage of the amount requested. The percent of initial payment shall be determined by the City Engineer prior to the start of the applicable budget year. (2) At the close of the submittal period for the applicable budget year, the City will proportionally reimburse any remaining revenues from that budget year to development projects that had received a percentage reimbursement. Such proportionate reimbursement shall be based upon the following ratio: Total revenues budgeted and appropriated = Total of requested payments for street oversizingtransportation improvements Proportionate reimbursement of each requested payment Section 28. That Section 24-113 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 24-113. - Fee waiver, appeals. (a) Exceptional hardship . The City Engineer, upon application of any interested party, may waive or otherwise adjust any of the fees, as set forth in § 7.5-17 established in Division 1 of Article II in Code Chapter 7.5, in order to prevent manifest injustice. No such waiver shall be granted unless, by reason of extraordinary and exceptional situations or conditions of the property which is the subject of the fee, the strict application of this Division would result in peculiar and exceptional hardship upon the owner of such property; provided, however, that such relief may be granted without substantially impairing the intent and purposes of this Division. No such hardship shall be founded upon ability or inability to pay the fee. -19- . . . Section 29. That Section 3.3.2(G) of the Land Use Code is hereby amended to read as follows: (G) City Participation in Certain Street Improvements. (1) If a street within or adjacent to the development is improved as an arterial or collector street rather than as a local street, the developer making such improvements shall be reimbursed in accordance with the provisions of Section 24-112 of the City Code. (2) If an off-site street is improved to a width in excess of thirty-six (36) feet, and provided that such excess width is not required because of the traffic impacts of the development, the City Engineer shall compute the extra expense caused by such street being improved to such excess width. Such extra expense shall be paid by the City out of the Street Oversizing FundTransportation Improvements Fund established in § 8-87. The City's obligations to participate in such costs shall be limited to those funds budgeted and appropriated for the payment requested. The participation of the City shall be limited to the costs of design, construction and right-of-way acquisition as limited pursuant to Section 24-112 of the City Code and costs of curbs, gutters or sidewalks exceeding local standards. . . . Introduced, considered favorably on first reading, and ordered published this 16th day of May, A.D. 2017, and to be presented for final passage on the 6th day of June, A.D. 2017. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 6th day of June, A.D. 2017. __________________________________ Mayor ATTEST: -20- _______________________________ City Clerk -1- ALTERNATIVE 2 ORDINANCE NO. 049, 2017 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 CONCERNING REVISIONS TO TERMINOLOGY AND DECREASES AND PHASED INCREASES OF THE CAPITAL EXPANSION FEES AND AMENDING SECTION 3.3.2(G) OF THE LAND USE CODE TO REVISE RELATED TERMINOLOGY 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, City Council has nevertheless decided to only increase, 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 -2- WHEREAS, the City Manager is directed to form a working-group of City staff and community stakeholders to review the Studies, to consider any future changes to the City’s Capital Expansion Fees based on the Studies, and to present the recommendations of that working-group to the Council with any such proposed changes; and WHEREAS, in addition, some of the terminology used in Chapters 7.5, 8, and 24, and used in Section 3.3.2(G) of the Land Use Code, is also being revised; 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 the title of Section 7.5, Article II is hereby amended to read as follows: ARTICLE II. - CAPITAL IMPROVEMENT EXPANSION FEES Section 3. That Section 7.5-16 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7.5-16. - Intent. The provisions of this Article are intended to impose certain fees to be collected at the time of building permit issuance in an amount calculated as shown herein for the purpose of funding the provisions of additional capital improvements as the City's population increases. The imposition of said fees is intended to regulate the use and development of land by ensuring that new growth and development in the City bear a proportionate share of the costs of capital expenditures necessary to provide community parkland, police, fire protection and, general government, neighborhood parkland and transportation capital improvements. Said fees shall not be used to collect more than is necessary to fund such capital improvements. The fees provided for in this Article are based on the City's Capital Improvement Expansion Cost Fee Study, dated May 21, 1996August 2016, as amended; the City's Street Oversizing Impact Fee Study , dated July 15, 1997, and Street Oversizing Impact Fee Study Update, dated November 28, 2000, as amended; and The ITE Trip Generation Manual, 6th Edition, 1997, published by the Institute of Traffic Engineers, as amended, City’s Transportation Capital Expansion Fee Study dated April 2017, as amended, which establish a fair and equitable allocation of costs and recognize past and future payments for new development, as well as credits for construction, dedication of land or cash contributions. Funds collected from said fees shall not be used to remedy existing deficiencies, but only to provide new capital improvements which are necessitated by new development. The -3- amount of revenue generated by said fees shall not exceed the cost of providing the capital improvements for which they are imposed, and the same shall be expended solely to provide the specified capital improvements. Section 4. That Section 7.5-17 of the Code of the City of Fort Collins is amended to read as follows: Sec. 7.5-17. Definitions . . . Capital expansion fee(s) shall mean individually and collectively the fees established in §§ 7.5-28, 7.5-29, 7.5-30, 7.5-31, 7.5-32 and 7.5-71. Capital improvements shall mean the purchase or long-term lease or lease-purchase of real property, the construction of public facilities or the purchase or long-term lease or lease-purchase of equipment or materials needed to facilitate the operation of such facilities or the delivery of services therefrom, to the extent that such property, improvements, equipment or materials are identified in the City's capital improvements plan as being totally or partially financed by the imposition of capital improvement expansion fees. For the purposes of this provision, long-term lease or lease-purchase shall mean a lease or lease-purchase of not less than five (5), subject to annual appropriation. Amounts expended for capital improvements shall include amounts that are treated as capitalized expenses according to generally accepted accounting principles and shall not include costs associated with the operation, administration, maintenance or replacement of capital improvements. . . . Transportation expansion fee shall mean the fee established in § 7.5-32. Street oversizingTransportation improvements shall mean those capital improvements needed to construct arterial or collector streets in the City as shown onin the City’s adopted of Fort Collins Master Street Plan, as amended, excluding the local street portions of such streets. Street oversizing improvements shall include, without limitation, the following capital improvements as described in said Master Street Plan or as described in the City’s adopted Bicycle Master Plan and Pedestrian Master Plan, as these plans may be hereafter amended: right-of-way acquisition; vehicle and bicycle lanes; curbs, gutters and other drainage structures; pedestrian ways; traffic control devices and signals; medians and median landscaping; and transit facilities, including, without limitation, transit stops and rolling stock, to the extent that such transit facilities are reasonably necessary to expand the City's transit system so as to provide transit services to feepayers, as that term is defined in § 7.5-17. However, transportation improvements shall not include the local street portion and related capital improvements required for a developed parcel under this Code and the Land Use Code. -4- Section 5. That Section 7.5-18 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7.5-18. - Calculation of capital improvement expansion fees. For each category of capital improvements for which a capital improvement expansion fee is established under the provisions of this Article, the amount of each such capital improvement expansion fee shall be determined on a per dwelling unit basis according to the gross floor area of each such dwelling unit (in the case of residential development) or on the basis of each square foot of new construction (in the case of commercial or industrial development). The amount of the transportation expansion fee shall be determined on the basis of square footage for residential development and based on type of use for other developments. The amount of each capital expansion fee, except for the street oversizing capital improvementtransportation expansion fee, established in code section 7.5-32, will be increased or decreased annually according to the Denver-Boulder Consumer Price Index for Urban Consumers, as published by the Bureau of Labor Statistics. The amount of the street oversizing capital improvementtransportation expansion fee will be increased or decreased annually according to the Engineering News Record Denver Regional Construction Cost Index. In addition, the methodologies used to set each fee shall be reviewed and compared to the City's actual infrastructure costs at least once every five (5) years, and adjustments made in accordance with such review and with the provisions of § 7.5-16 of this Code. Section 6. That Section 7.5-19 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7.5-19. - Imposition, computation and collection of fees. (a) Payment of the fees imposed under the provisions of this Article shall be required as a condition of approval of all development in the City for which a building permit is required. The amount of such fees has been calculated using current levels of service and the data and methodologies described in the City’s Capital Improvement Expansion FeeCost Study, dated May 21, 1996 August 2016, as amended; the City's Street Oversizing Impact Fee Study, dated July 15, 1997, and Street Oversizing Impact Fee Study Update, dated November 28, 2000, as amended; and The ITE Trip Generation Manual, 6th Edition, 1997, published by the Institute of Traffic Engineers, as amended. and the City’s Transportation Capital Expansion Fee Study dated April 2017, as amended. The fees due for such development shall be payable by the feepayer to the Building Official prior to or at the time of issuance of the first building permit for the property to be developed, except to the extent that an agreement deferring all or any portion of such payment has been executed by the City providing for a different time of payment approved by the City Council by resolution. If, during the period of any such deferral, the amount of the deferred fee is increased by ordinance of the City Council, the fee rate in effect at the time of payment shall apply. If the building permit for which a fee has been paid has expired, and an application for a new building permit is thereafter filed, any amount previously paid for a capital improvement expansion fee and not refunded by the City shall be credited against any additional amount due under the provisions of this Article at the time of application for the new building permit. -5- . . . Section 7. That Section 7.5-20 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7.5-20. - Offsets and credits. (a) The City shall offset the reasonable costs of any capital improvements constructed, or real property dedicated, by or on behalf of any property owner or developer of real property from whom a fee is due and payable under this Article for that category of capital improvement, pursuant to the following requirements and any additional administrative regulations that may be established by the City Manager: (1) No offset or credit shall be given for the dedication or construction of capital improvements not shown on the City's capital improvements plan, or, in the case of the street oversizing capital improvementtransportation expansion fee, for any capital improvement other than a street oversizingtransportation improvement, unless otherwise agreed to by the City. . . . (4) A property owner or developer claiming entitlement to an offset or credit shall apply for the same prior to or at the time of application for the issuance of any building permit for the development in question, which application shall be on a form provided by the City for such purpose. Upon receipt of such application, the Financial Officer or, in the case of the street oversizing capital improvement feetransportation expansion fee, the City Engineer, shall determine, in writing, the maximum value of the offset or credit that may be applied against fees due and payable from the applicant. . . . Section 8. That Section 7.5-22 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7.5-22. - Use of fee proceeds. (a) The fees collected for each category of capital improvement specified in Division 2 of this Article shall be used to finance or to recoup the costs of any capital improvements identified in the applicable capital improvements plan, except that fees collected for street oversizingtransportation improvements shall be used only to finance or recoup the costs of such improvements. Eligible costs which may be paid from revenues derived from such fees may include, without limitation, planning, design, surveying, permitting and engineering feescosts; the cost of purchasing or leasing real property; construction costs; other capital improvement costs; and the costs of administering the capital improvement expansioncollection and expenditure of the fees program. The proceeds of such fees may also be used to pay the principal sum and interest and other finance costs on bonds, notes or other obligations issued by or on behalf of the City to finance such capital improvements. The City shall be entitled to retain four (4) percent of the fees collected under this Article to cover the costs associated with the -6- collection of the same, and the administration, investment, accounting, expenditure and auditing of the funds collected. (b) Fees collected under the provisions of this Article shall not be used to pay for any of the following expenses: (1) Costs incurred for the construction, acquisition or expansion of capital improvements or assets other than those identified in the applicable capital improvements plan or in the case of the street oversizing capital improvementtransportation expansion fee, any capital improvement other than a street oversizingtransportation improvement; (2) Costs incurred for the repair or maintenance of existing or new capital improvements or facilities expansions; or (3) Costs incurred for the ongoing administration or operation of the funded and constructed capital improvements. (c) Annually, the City Manager shall present to the City Council a proposed capital improvement program for each capital improvement for which a capital improvement expansion fee is charged. Such program shall assign funds, including any accrued interest, from the several capital improvement expansion fee accounts to specific capital improvement projects and related expenses. Section 9. That Section 7.5-23 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7.5-23. - Appeals. . . . (b) The burden of proof in any such hearing shall be on the applicant to demonstrate that the amount of fee or offset or credit was not properly calculated by the City. In the event of an appeal of the amount of a fee, the feepayer shall, at his or her expense, prepare and submit to the City Manager an independent fee calculation study for the fee in question. The independent fee calculation study shall follow the methodologies used in the City’s Capital Improvement Expansion Cost Fee Study, dated May 21, 1996 August 2016, as amended, or the City's Street Oversizing Impact Fee Study, dated July 15, 1997Transportation Capital Expansion Fee Study dated April 2017, as amended, whichever is applicable. The independent fee calculation study shall be conducted by a professional in impact fee analysis. The burden shall be on the feepayer to provide the City Manager all relevant data, analysis and reports which would assist the City Manager in determining whether the capital improvement expansion fee should be adjusted. The City Manager shall modify said amount only if there is substantial competent evidence in the record that the City erred, based upon the methodologies contained in the City’s Capital Improvement Expansion Cost Fee Study, dated May 21, 1996 August 2016, as amended, or the City's Street Oversizing Impact Fee Study, dated July 15, 1997Transportation Capital Expansion Fee Study dated April 2017, as amended, whichever is applicable. Section 10. That Section 7.5-24 of the Code of the City of Fort Collins is hereby amended to read as follows: -7- Sec. 7.5-24. - Entitlement to refunds for nonappropriation/nonexpenditure. . . . (b) In determining whether fee revenues have been appropriated or expended within the requisite periods of time specified in Subsection (a), monies in the applicable capital improvement expansion fee funds and accounts shall be considered to be appropriated and expended on a first in, first out basis; that is, the first fees paid shall be considered the first fees appropriated and expended. . . . Section 11. That Section 7.5-25 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7.5.25 – Procedure to obtain refund. . . . (d) With respect to refunds based upon abandonment, within ten (10) working days after the application is determined sufficient and site restoration has been completed as required pursuant to § 7.5-24.1, the applicant shall be entitled to a refund, except that the City shall retain an additional two (2) percent of the impactamount of the fee to be refunded to offset the costs of administering the refund. . . . Section 12. That Section 7.5-28 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7.5-28. - Community parkland capital improvement expansion fee. (a) There is hereby established a community parkland capital improvement 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 Resid., up to 700 sq. ft. and under $1,102.00 $1,513.00 Resid., 701 to 1,200 sq. ft. 1,414.00 1,984.00 Resid., 1,201 to 1,700 sq. ft. 1,562.00 2,178.00 Resid., 1,701 to 2,200 sq. ft. 1,628.00 2,234.00 Resid., over 2,201 sq. ft. and over 1,743.00 2,442.00 -8- 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. (b) All fees collected under this Section shall be deposited into a separate account within the capital improvement expansion fund to be known as the "community parkland capital improvement expansion fee account." established in § 8-95. This account shall be an interest bearing account, and any interest income earned on the fees shall be credited to the account. Funds withdrawn from the community parkland facilities capital expansion fee account shall be used only for the purposes specified in Subsection (a) of this Section and said expenditures shall be subject to the provisions of this Article. Section 13. That Section 7.5-29 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7.5-29. - Police capital improvement expansion fee. (a) There is hereby established a police capital improvement 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 Resid., up to 700 sq. ft. and under $141.00 $177.00 Resid., 701 to 1,200 sq. ft. 178.00 239.00 Resid., 1,201 to 1,700 sq. ft. 198.00 260.00 Resid., 1,701 to 2,200 sq. ft. 206.00 264.00 Resid., over 2,2001 sq. ft. and over 220.00 294.00 Commercial buildings (per 1,000 sq. ft.) 169.00 223.00 Industrial buildings (per 1,000 sq. ft.) 41.00 52.00 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. (b) All fees collected under this Section shall be deposited into a separate account within the capital improvement expansion fund to be known as the "police capital improvement expansion fee account." established in § 8-96. This account shall be an interest bearing account, and any interest income earned on the fees shall be credited to the account. Funds -9- withdrawn from the police capital improvement expansion fee account shall be used only for the purposes specified in Subparagraph (a) of this Section and said expenditures shall be subject to the provisions of this Article. (c) The fees collected under this Section for commercial and industrial buildings between October 3, 2013, and December 31, 2014, shall be sixty (60) percent of the amount shown in Subsection (a) above; those collected between January 1, 2015, and December 31, 2015, shall be eighty (80) percent of the amount shown in Subsection (a); thereafter, the full amount shown in Subsection (a) shall be collected. Section 14. That Section 7.5-30 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7.5-30. - Fire protection capital improvement expansion fee. (a) There is hereby established a fire protection capital improvement 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 Resid., up to 700 sq. ft. and under $281.00 $377.00 Resid., 701 to 1,200 sq. ft. 357.00 509.00 Resid., 1,201 to 1,700 sq. ft. 395.00 554.00 Resid., 1,701 to 2,200 sq. ft. 410.00 563.00 Resid., over 2,2001 sq. ft. and over 440.00 627.00 Commercial buildings (per 1,000 sq. ft.) 339.00 475.00 Industrial buildings (per 1,000 sq. ft.) 80.00 111.00 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. (b) All fees collected under this Section shall be deposited into a separate account within the capital improvement expansion fund to be known as the "fire protection capital improvement expansion fee account." established in § 8-97. This account shall be an interest bearing account, and any interest income earned on the fees shall be credited to the account. Funds withdrawn from the fire protection capital improvement expansion fee account shall be used only for the purposes specified in Subparagraph (a) of this Section and said expenditures shall be subject to the provisions of this Article. -10- (c) The fees collected under this Section for commercial and industrial buildings between October 3, 2013, and December 31, 2014, shall be sixty (60) percent of the amount shown in Subsection (a) above; those collected between January 1, 2015, and December 31, 2015, shall be eighty (80) percent of the amount shown in Subsection (a); thereafter, the full amount shown in Subsection (a) shall be collected. Section 15. That Section 7.5-31 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7.5-31. - General governmental capital improvement expansion fee. (a) There is hereby established a general governmental capital improvement 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 Resid., up to 700 sq. ft. and under $330.00 $431.00 Resid., 701 to 1,200 sq. ft. 423.00 581.00 Resid., 1,201 to 1,700 sq. ft. 465.00 634.00 Resid., 1,701 to 2,200 sq. ft. 487.00 644.00 Resid., over 2,2001 sq. ft. and over 523.00 716.00 Commercial buildings (per 1,000 sq. ft.) 803.00 1,088.00 Industrial buildings (per 1,000 sq. ft.) 188.00 257.00 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. (b) All fees collected under this Section shall be deposited into a separate account within the capital improvement expansion fund to be known as the "general governmental capital improvement expansion fee account." established in § 8-93. This account shall be an interest bearing account, and any interest income earned on the fees shall be credited to the account. Funds withdrawn from the general governmental capital improvement expansion fee account shall be used only for the purposes specified in subparagraph (a) of this Section and said expenditures shall be subject to the provisions of this Article. (c) The fees collected under this Section for commercial and industrial buildings between October 3, 2013, and December 31, 2014, shall be sixty (60) percent of the amount shown in Subsection (a) above those collected between January 1, 2015, and December 31, 2015, -11- shall be eighty (80) percent of the amount shown in Subsection (a); thereafter, the full amount shown in Subsection (a) shall be collected. Section 16. 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. - Street oversizing capital improvementTransportation expansion fee. There is hereby established a street oversizing capital improvementtransportation expansion fee which shall be imposed pursuant to the provisions of this Article for the purpose of funding street oversizingtransportation improvements related to the 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: STREET OVERSIZING CAPITAL EXPANSION FEE SCHEDULE Residential (per housing unit) SF detached 9.57 $3,152 per D.U. MF and other housing 6.59 2,171 per D.U. Hotel/motel 9.02 2,969 per D.U. Apartment 6.65 2,190 per D.U. Retirement community 2.81 926 per D.U. Assisted living 4.52 1,489 per D.U. Congregate care facility 2.02 665 per D.U. Residential condominium 5.81 1,914 per D.U. Duplex 7.18 2,365 per D.U. Townhome 5.86 1,930 per D.U. Mobile Home 4.99 1,644 per D.U. Non Residential (per 1,000 sq. ft.) Community/shopping center 1000K GLA 32.09 $6.16/sq. ft. 500K GLA 38.65 7.41/sq. ft. 200K GLA 54.50 10.45/sq. ft. 50K GLA 91.65 12.09/sq. ft. Movie theater 78.06 14.97/sq. ft. Fitness/racquet club 14.03 2.89/sq. ft. Day Care 79.26 6.39/sq. ft. Government office 68.93 14.22/sq. ft. Building materials/lumber 45.16 8.66/sq. ft. Specialty retail 44.32 8.50/sq. ft. Discount superstore 53.15 10.20/sq. ft. -12- Nursery (garden center) 36.08 7.44/sq. ft. Sit down restaurant 127.15 16.77/sq. ft. Fast food restaurant w/ drive-up 496.12 39.97/sq. ft. Car sales 33.34 6.88/sq. ft. Service station 168.56/pump 13,581.46/pump Wholesale tire store 20.36 4.20/sq. ft. Self service car wash 5.79 466.52/stall Supermarket 102.24/stall 13.48/sq. ft. Convenience market w/ gas 542.60 43.72/sq. ft. Pharmacy/drugstore 88.16 7.10/sq. ft. Furniture store 5.06 1.63/sq. ft. Bank 80.87 6.06/sq. ft. Drive-in bank 148.15 11.94/sq. ft. Insurance building 11.45 2.36/sq. ft. Manufacturing 3.82 1.23/sq. ft. Warehousing 3.56 1.15/sq. ft. Light industrial 6.97 2.25/sq. ft. Mini-warehouse 2.50 0.81/sq. ft. Business park 12.76 4.11/sq. ft. General office 200K GFA 11.54 3.72/sq. ft. 50K GFA 16.31 5.26/sq. ft. 10K GFA 24.39 7.86/sq. ft. Recreational 3.64/ac 1,173.15/acre City park 3.66/ac 1,179.60/acre Golf course 5.04/ac 1,624.36/acre Elementary school 1.29/student 415.76/student Private school (K-8) 2.48/student 799.29/student Church/synagogue 9.11 2.94/sq. ft. Library 56.24 4.53/sq. ft. Hospital 16.50 5.32/sq. ft. Nursing home 2.37/bed 763.84/bed Medical clinic 31.45 10.14/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. -13- 2. Italicized building types indicate that high pass-by Trip Adjustment Factor is used when calculating SOS Rate. 3. As used in Notes 1 and 2 above, the "Trip Adjustment Factor" shall mean the applicable trip adjustment factor as set in the City's most recent Street Oversizing Impact Fee Study. TRANSPORTATION EXPANSION FEE SCHEDULE Current As of October 1, 2017 Resid., up to 700 sq. ft. $1,905.00 $1,827.00 Resid., 701 to 1,200 sq. ft. 2,143.00 3,392.00 Resid., 1,201 to 1,700 sq. ft. 3,112.00 4,404.00 Resid., 1,701 to 2,200 sq. ft. 3,112.00 5,150.00 Resid., over 2,2001 sq. ft. 3,112.00 5,520.00 Commercial 11,930.00 6,721.00 Office and Other Services 7,760.00 4,951.00 Industrial/Warehouse 1,130.00 1,598.00 Section 17. That Section 7.5-71 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7.5-71. - Collection of nNeighborhood parkland capital expansion fee. (a) Hereafter, pPayment of a neighborhood parkland capital expansion fee in accordance with this Section shall be required as a condition of approval of all residential development for which a building permit is required, as thosethese terms are defined in § 7.5-17 of this Code. The fees due for such development shall be payable by the feepayer to the Building Official prior to or at the time of issuance of the first building permit for the property to be developed, unless an agreement has been executed by the City which provides for a different time of payment. All such payments shall be deposited in the “neighborhood parkland capital expansion fee fund” by the Financial Officer in the fund createdestablished in § 8-80. Only one (1) fee shall be charged for any dwelling unit. No additional fee for acquisition and development of neighborhood parks shall be charged for the same dwelling unit. If the building permit for which a fee has been paid has expired, and an application for a new building permit is thereafter filed, any amount previously paid for a neighborhood parkland capital expansion fee and not refunded by the City shall be credited against any additional amount due under the provisions of this Article at the time of application for the new building permit. (b) The amount of the fee established in this Section shall be determined for each dwelling unit as follows: -14- Current As of October 1, 2017 Resid., up to 700 sq. ft. and under $1,300.00 $1,343.00 Resid., 701 to 1,200 sq. ft. $1,667.00 1,797.00 Resid., 1,201 to 1,700 sq. ft. $1,842.00 1,962.00 Resid., 1,701 to 2,200 sq. ft. $1,919.00 1,983.00 Resid., over 2,2001 sq. ft. and over $2,056.00 2,210.00 . . . (e) The methodologies used to set the neighborhood parkland capital expansion fees applicable to parklands shall be reviewed and compared to the City's actual infrastructure costs at least once every five (5) years, and adjustments made in accordance with such review and with the provisions of § 7.5-16 of this Code. Section 18. That Section 7.5-72 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 7.5-72. - Dedication of land in lieu of fee. In lieu of the payment of the neighborhood parkland capital expansion fee under § 7.5-71any fees required in this Article, an owner of lands may negotiate with the City for the dedication of lands to be used for neighborhood park purposes. If a satisfactory agreement is reached for the dedication of such lands, the price established for such lands may be credited on the fees to be chargedagainst the neighborhood parkland capital expansion fee owed under this Article§ 7.5-71 and the agreement reached between the parties shall be set forth in writing and kept on file in the office of the City Clerk. Similarly, a credit onagainst the neighborhood parkland capital expansion fee under § 7.5-71 the fees to be charged under this Article may be given on account of the development of lands dedicated for neighborhood park purposes in such amount as may be negotiated for and agreed upon between the City and any developer. Nothing contained in this Section shall be construed to cancel or annul any agreement heretofore entered into by the City concerning the dedication of parkland and credits on fees of the type established by this Article, and all such agreements shall continue in full force and effect, and any credits remaining under such agreement shall apply toward the fee assessed by this Article. Section 19. That Section 8-80 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 8-80. - Neighborhood parkland capital expansion fee fund. There is hereby created a fund to account for the acquisition, and development and administration of neighborhood parks known as the neighborhood parkland capital expansion fee fund. Revenues deposited into the fund shall include the neighborhood parkland capital expansion fees collected pursuant to § 7.5-71. Expenditures from this fund shall be made for approved purposes for the acquisition, planning, design, surveying, permitting, engineering, -15- construction and other capital costs for new development and administration of neighborhood parks as provided in § 7.5-71, including purchases of new or replacement park site equipment and plantings. Section 20. That Section 8-87 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 8-87. - Street oversizingTransportation improvements fund. There is hereby created a fund to account for construction of arterial and collector streets known as the street oversizing transportation improvements, as defined in § 7.5-17, to be known as the transportation improvements fund. Revenues deposited into this fund shall include all moniestransportation expansion fees collected pursuant to § 24-111 et seqChapter 7.5 and all monies collected pursuant to Division 2 of Article III of Code Chapter 24. Expenditures shall be made as specified in § 24-111 et seqChapter 7.5 and Division 2 of Article III of Code Chapter 24. Section 21. That Section 8-92 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 8-92. - Capital improvement expansion fee fund. There is hereby created a fund to account for the acquisition, construction and development of capital improvements as defined in § 7.5-17. Revenues shall include all capital expansion fees collected pursuant to Chapter 7.5, but shall not include the neighborhood parkland capital expansion fee collected and deposited pursuant to § 7.5-71 and § 8-80 or the transportation expansion fee collected and deposited pursuant to § 7.5-32 and § 8-87. and eExpenditures from this fund shall be made solely for the applicable purposes described in Chapter 7.5therein. Section 22. That Section 8-93 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 8-93. - General governmental capitalimprovement expansion fee account. There is hereby created an account within the capital improvement expansion fee fund to account for the acquisition, construction and development of capital improvements related to the provision of general governmental services, as described in the capital improvements plan for general governmental services. Revenues shall include all fees collected pursuant to Subsection§ 7.5-31(a). Expenditures from this account shall be made solely for the purposes described in Subsection§ 7.5-31(b) and according to all other applicable provisions of Chapter 7.5. Section 23. That Section 8-95 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 8-95. - Community parkland capital improvement expansion fee account. There is hereby created an account within the capital improvement expansion fee fund to account for the acquisition, construction and development of capital improvements related to the -16- provision of community parklands, as described in the capital improvements plan for community parkland. Revenues shall include all fees collected pursuant to Subsection§ 7.5-28(a). Expenditures from this account shall be made solely for the purposes described in Subsection§ 7.5-28(b) and according to all other applicable provisions of Chapter 7.5. Section 24. That Section 8-96 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 8-96. - Police capital improvement expansion fee account. There is hereby created an account within the capital improvement expansion fee fund to account 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. Revenues shall include all fees collected pursuant to Subsection§ 7.5-29(a). Expenditures from this account shall be made solely for the purposes described in Subsection§ 7.5-29(b) and according to all other applicable provisions of Chapter 7.5. Section 25. That Section 8-97 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 8-97. - Fire protection capital improvement expansion fee account. There is hereby created an account within the capital improvement expansion fee fund to account 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. Revenues shall include all fees collected pursuant to Subsection§ 7.5- 30(a). Expenditures from this account shall be made solely for the purposes described in Subsection§ 7.5-30(b) and according to all other applicable provisions of Chapter 7.5. Section 26. That Section 24-111 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 24-111. Definitions . . . Exemption shall mean the granting of a partial or complete waiver of the street oversizingtransportation expansion fee not to exceed fifty thousand dollars ($50,000.). Fee shall mean the street oversizing capital improvement expansion fee. . . . Transportation expansion fee shall mean the fee established in § 7.5-32. Transportation Ffund shall mean the street oversizingtransportation improvement fund established in § 8-87. Street oversizingTransportation improvements shall mean those capital improvements needed to construct arterial or collector streets in the City as shown on the City’s adopted of Fort Collins -17- Master Street Plan, as amended, excluding the local street portions of such streets. Street oversizing improvements shall include, without limitation, the following capital improvements when described in said Master Street Plan or as described in the City’s adopted Bicycle Master Plan and Pedestrian Master Plan, as these plans may be hereafter amended: right-of-way acquisition; vehicle and bicycle lanes; curbs, gutters and other drainage structures; pedestrian ways; traffic control devices and signals; medians and median landscaping; and transit facilities, including, without limitation, transit stops and rolling stock, to the extent that such transit facilities are reasonably necessary to expand the City's transit system so as to provide transit services to feepayers, as thatthis term is defined in § 7.5-17. However, transportation improvements shall not include the local street portion and related capital improvements required for a developed parcel under this Code and the Land Use Code. Section 27. That Section 24-112 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 24-112. - Street oversizingTransportation improvements reimbursement program. (a) Street oversizing capital improvement feeThe transportation expansion fee revenue collected pursuant to §§ 7.5-19 and 7.5-32 and deposited in the transportation fund shall be utilized to pay certain costs associated with and necessary for the following transportation improvements: (1) increasing the width of streets and sidewalks from local access status to arterial or collector status; (2) acquiring the necessary right-of-way to accommodate the expansion of such streets and sidewalks; (3) providing traffic signalization when required because of collector or arterial status; and (4) expanding the City's transit system. Payments for such purposes may be made directly by the City or in the form of reimbursements to the developers of real property in the City according to the provisions of this Division. Those categories of cost which will be eligible for reimbursement from the transportation fund shall be determined by the City Engineer, who shall maintain an itemization of the same in the form of administrative guidelines. The City shall not participate in the cost of street oversizingthese or any other transportation improvements required solely for the special use and benefit of the adjacent development, including, without limitation, any acceleration or deceleration lanes, double left-turn lanes, or traffic-control signals that are required by the transportation impact study for the development or by the Traffic Engineer. Notwithstanding the foregoing, street oversizingmonies from the transportation funds may be utilized to pay for all traffic-control signals associated with arterial-arterial intersections and for one (1) such signal per collector-arterial intersection per mile. Monies expended for street oversizingfrom the transportation fund improvements shall not be utilizedused to pay for the cost of increasing the depth of the local access portion of any street required to be constructed to arterial or collector standards. (b) The City Council shall, by resolution, adopt criteria to evaluate the community benefit of streets in a development project to determine whether street oversizingtransportation improvements are needed. If the City determines that the construction of street oversizingtransportation improvements do not convey a measurable community benefit according to such criteria, then no monies expended by the developer for such street oversizing expenditurestransportation improvements shall be eligible for reimbursement by the City, and the street construction requirements for the development shall be limited to -18- those reasonably necessary to offset the traffic impacts of the development. All collector and arterial streets, if required, shall be constructed to such specifications as shall be necessary in the judgment of the City Engineer based on traffic safety considerations, and taking into account the transportation impact of the development upon such arterial or collector street. No such arterial street shall be constructed to a width of less than thirty-six (36) feet. (c) The City shall have no obligation to make reimbursement payments for street oversizingtransportation improvements unless funds for such payments shall first have been budgeted and appropriated from the transportation fund by the City Council; provided, however, that, to the extent that funds are not available for such reimbursement, the City shall not require construction, at the developer's expense, of any oversized portion of streets not reasonably necessary to offset the traffic impacts of the subject development, unless otherwise agreed upon by the City and the developer. The City shall have no obligation to make payment for street oversizingtransportation improvements unless a written request for such payment in form acceptable to the City and providing reasonable detail and proof of the expenses incurred shall have been submitted to the City within ninety (90) days of written City acceptance of such completed improvements. (d) In order to limit the reimbursement payments under this Section to the amount budgeted and appropriated, the City may make the following payments from the transportation fund subject to the limitations as contained in Subsection (c) above: (1) Upon acceptance and approval by the City of a payment request for street oversizingtransportation funds, the City may pay a percentage of the amount requested. The percent of initial payment shall be determined by the City Engineer prior to the start of the applicable budget year. (2) At the close of the submittal period for the applicable budget year, the City will proportionally reimburse any remaining revenues from that budget year to development projects that had received a percentage reimbursement. Such proportionate reimbursement shall be based upon the following ratio: Total revenues budgeted and appropriated = Total of requested payments for street oversizingtransportation improvements Proportionate reimbursement of each requested payment Section 28. That Section 24-113 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 24-113. - Fee waiver, appeals. (a) Exceptional hardship . The City Engineer, upon application of any interested party, may waive or otherwise adjust any of the fees, as set forth in § 7.5-17 established in Division 1 of Article II in Code Chapter 7.5, in order to prevent manifest injustice. No such waiver shall be granted unless, by reason of extraordinary and exceptional situations or conditions of the property which is the subject of the fee, the strict application of this Division would result in -19- peculiar and exceptional hardship upon the owner of such property; provided, however, that such relief may be granted without substantially impairing the intent and purposes of this Division. No such hardship shall be founded upon ability or inability to pay the fee. . . . Section 29. That Section 3.3.2(G) of the Land Use Code is hereby amended to read as follows: (G) City Participation in Certain Street Improvements. (1) If a street within or adjacent to the development is improved as an arterial or collector street rather than as a local street, the developer making such improvements shall be reimbursed in accordance with the provisions of Section 24-112 of the City Code. (2) If an off-site street is improved to a width in excess of thirty-six (36) feet, and provided that such excess width is not required because of the traffic impacts of the development, the City Engineer shall compute the extra expense caused by such street being improved to such excess width. Such extra expense shall be paid by the City out of the Street Oversizing FundTransportation Improvements Fund established in § 8-87. The City's obligations to participate in such costs shall be limited to those funds budgeted and appropriated for the payment requested. The participation of the City shall be limited to the costs of design, construction and right-of-way acquisition as limited pursuant to Section 24-112 of the City Code and costs of curbs, gutters or sidewalks exceeding local standards. . . . Introduced, considered favorably on first reading, and ordered published this 16th day of May, A.D. 2017, and to be presented for final passage on the 6th day of June, A.D. 2017. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 6th day of June, A.D. 2017. __________________________________ Mayor ATTEST: -20- _______________________________ City Clerk -1- ORDINANCE NO. 068, 2017 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS REGARDING CALCULATION AND COLLECTION OF DEVELOPMENT FEES IMPOSED FOR THE CONSTRUCTION OF NEW OR MODIFIED ELECTRIC SERVICE CONNECTIONS WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the City Charter to fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses and other obligations of the electric utility, as set forth therein; and WHEREAS, pursuant to City Code Sections 26-473 through 26-475, the City imposes development fees for new or modified electric service connections, including an Electric Capacity Fee and a Building Site Charge; and WHEREAS, the ECF is a one-time charge designed to recover the initial cost of adding new development to the electric system, and the Building Site Charge (BSC) is designed to recover actual time and materials costs associated with building on site electric facilities at the specific development; and WHEREAS, the ECF and BSC together represent the total electric plant investment fee (PIF) for new development; and WHEREAS, during 2016, Electric Utility staff engaged NewGen Strategies to assist in evaluating the calculation and methodology used in setting the ECF and BSC in light of the Utility’s costs, the nature of development occurring in the City, and regional municipal utility practice; and WHEREAS, staff has determined the current methodology assumes greenfield development, looking to square footage, the linear footage that abuts the public right of way, and demand (kilowatt or kW) required to serve the developed site; and WHEREAS, as the City experiences more redevelopment, mixed use developments and higher density developments, this method fails to appropriately assign capital costs to the new load required to serve developed sites; and WHEREAS, staff recommends updating the cost allocation methodology used to calculate the ECF and BSC to assign costs based on actual system value, which is the “buy-in” approach used to calculate new or modified service connection fees for water and wastewater services, more accurately reflect the cost of redevelopment in the community, and simplifies administration of the ECF and BSC; and WHEREAS, based on the foregoing, it is the desire of the City Council to amend Chapter 26 of the City Code to update the methodology for calculating and applying the Electric Capacity Fee and a Building Site Charge for new or modified electric service connections. -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 and adopts the determinations and findings contained in the recitals set forth above. Section 2. That Section 26-474(b) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-474. Residential electric development fees and charges. . . . (b) The ECF shall be the total of the site footage charge, dwelling unit charge and systems modification charge, to be determined as follows: (1) The site footage charge shall be the combined total of: a. Per square foot of developed site square footage, including all applicable tracts but excluding the area of dedicated public rights-of-way and excluding areas dedicated to the City as parkland, however, specific areas within City owned parks that require electric service will be charged $0.05186 b. Plus, per lineal foot of the developed site abutting a dedicated street or roadway $10.39 (21) The dwelling unit charge shall be as follows: a. For a single-family panel size with one hundred fifty (150) amp service (nonelectric heat), per dwelling unit $1,408 $1,537 b. For a single-family panel size with two hundred (200) amp service or with one hundred fifty (150) amp service with electric heat, per dwelling unit $2,283 $1,879 -3- c. For a single multi-family panel size with electric heat one hundred fifty (150) amp service (nonelectric heat), per dwelling unit $939 $2,508 d. For a multi-family panel size with two hundred (200) amp service or with one hundred fifty (150) amp service with (non-electric heat), per dwelling unit $1,612 $1,350 e. For a multi-family panel size with two hundred (200) amp service or with one hundred fifty (150) amp service with electric heat, per dwelling unit $2,066 (32) A system modifications charge will apply when a new or modified service will require infrastructure in addition to or different from the standard base electrical system model. The differential costs associated with such system modifications will be included in the calculated ECF. . . . Section 3. That Section 26-474(d) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-474. Residential electric development fees and charges. . . . (d) A Building Site Charge ("BSC") for any new or modified residential service shall consist of the total of the applicable charges as described in this Subsection (d), and shall be paid as specified herein. . . . (2) When any new or modified residential service requires installation by the Utility of secondary service the BSC shall include a secondary service charge (SSC), and shall be paid at the time of building permit and based upon the current rates as of the time of issuance of the building permit. The SSC for single-family and duplex residences shall be the total of the secondary service charges, determined as follows: a. The secondary service charge shall be as follows: -4- Secondary Service Size Charge (up to 65 feet) Plus Per-Foot Charge for Each Foot Over 65 1/0 service $682.00 $4.99/Foot 4/0 service $806.00 1,143.00 $5.63 7.05/Foot 350 kCM Service $912.00 $7.23/Foot 1/0 Mobile Home Service $532.00 N/A 4/0 Mobile Home Service $638.00 932.00 N/A . . . (4) Any single-phase residential service over two hundred (200) amps or any dwelling unit larger than a duplex shall be considered a commercial non- residential service. Section 4. That Section 26-475(b) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-475. Nonresidential electric development fees and charges. . . . (b) The ECF shall be the total of the site footage charge, kVA service charge and systems modification charge, to be determined as follows: (1) The site footage charge shall be the combined total of: a. Per square foot of developed site square footage, including all applicable tracts but excluding the area of dedicated public rights-of-way and excluding areas dedicated to the City as parkland, however, specific areas within City owned parks that require electric service will be charged $0.05186 b. Plus, per lineal foot of the developed site abutting a dedicated street or roadway $38.80 (21) The kVA service charge shall be determined as follows. -5- a. For customer electric loads served by the utility, the kVA service charge shall be calculated as follows: 1. Utility-owned transformers: the kVA service charge per kilovolt-amp (kVA) of service load rating as determined by main disconnect size (not fuse sizing). $70.31 2. Customer owned transformers: the kVA service charge per kilovolt-amp (kVA) of service load rating. $61.13 ECF shall be calculated as follows: secondary metered services $/kW = 320.31 + 21 x ln(kW) primary metered services $/kW = 212.78 + 7.89 x ln(kW), Where ln is the natural logarithm kW is calculated as follows: three phase services kW = A x V x SQRT(3) x PF x 0.3 single phase services kW = A x V x PF x 0.3 Where A is the requested amperage. V is requested line to line voltage. PF is the power factor, which is assumed to be 0.9. b. For the utility to receive customer generation in excess of the customer's electric service provided by the utility, the following KVA service charge will also apply: 1. Utility-owned transformers: the kVA service charge per kilovolt-amp (kVA) of generation service rating in excess of the service load rating as paid per Subsection (b)(2)a.1. Such ratings shall be determined by the Utilities Executive Director. $61.13 2. Customer-owned transformers: the kVA service charge per kilovolt-amp (kVA) of generation service rating in excess of the service load rating paid per Subsection (b)(2)a.2. Such ratings shall be determined by the Utilities Executive Director. $43.63 -6- (32) A system modifications charge will apply when a new or modified service will require infrastructure in addition to or different from the standard base electrical system model. The differential costs associated with such system modifications will be included in the calculated ECF. . . . Section 5. That Section 26-475(d) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-475. Nonresidential electric development fees and charges. … (d) A Building Site Charge ("BSC") for extending primary circuitry to the transformer for any new or modified nonresidential service shall be invoiced and paid in the same manner and at the same time as the ECF is invoiced and paid pursuant to Section 26-475(a). The BSC shall be the total of the primary circuit charge, transformer installation charge and any additional charges, determined as follows: (1) The primary circuit charge for service from the utility source to the transformer shall be as follows: a. For single-phase service, per foot of primary circuit $9.45 9.12 b. For three-phase service, per foot of primary circuit $17.76 16.58 (2) The transformer installation charge shall be as follows: a. For single-phase service, per transformer $1,387.00 1,153.19 b. For three-phase service, per transformer $2,432.00 2,458.14 … Section 6. That the amendments to Chapter 26 of the City Code contained herein shall go into effect for all new or modified electric service connections on October 1, 2017. -7- Introduced, considered favorably on first reading, and ordered published this 16th day of May, A.D. 2017, and to be presented for final passage on the 6th day of June, A.D. 2017. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 6th day of June, A.D. 2017. __________________________________ Mayor ATTEST: _______________________________ City Clerk Affordable Housing Board X XX XX X Board of Realtors X X XX X X X X X Economic Advisory Commission X X Downtown Development Authority X XX X X X X Building Review Board X Parks and Recreation Board X XXX X North Fort Collins Business Association X X XX X X Housing Catalyst X XX X Human Relations Board X XX X X ATTACHMENT 1