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HomeMy WebLinkAboutOrdiance/Resolution/Minutes Impact Area 03-02 August 7, 2003Page 1 of 2 Agenda Item Cover Sheet -1-rnp act ~ Agenda Item # 11. 5 03-02 X ~Regular Item {/II 0 Jil5o/J1.ior; !consent Item I ())C OJLcli ,~W=o=rk=s=ho=p=I=te=m======================~11 , ~tl1{Cf__ fltt::is) !Item Submitted By: I Brett McCully, P. E., Dev. Engineer !council Meeting Date: I September 23, 2003 Director Approval: City Manager Approval: Item: Public hearing, presentation, discussion and _possible action on institution of Impact Fees for the proposed Steeplechase Sanitary Sewer Impact Fee Area. Item Summary: This is the second of two public hearings before the City Council required to enact the City's fifth utility impact fee area. The proposed impact fee would recoup a significant portion of the cost of providing sewer service to the area recently annexed by the City adjacent to and west of Wellborn Road (Annexation Area #1). Item Background: The attached report contains the detailed land use assumptions employed and capital improvements. This hearing involves setting the actual impact fee amount, and final adoption of the impact fee area. The executive summary of the required study is attached as well as a primer on the requirements for the establishment of impact fee utilities. While the maximum impact fee calculated within the study to tap the proposed sanitary sewer is $322.07 per living unit equivalent (LUE), staff recommends adoption of a fee at $300.00 per LUE to allow for reasonable future adjustments in the land uses and capital improvement costs without having to refund portions of fees already paid. Budgetary and Financial Summary: Funding for design, land acquisition and construction is currently budgeted in FY's 03 and 04 totaling $1.6 million dollars. The amount of recapture cannot be predicted with great certainty, and therefore is not included as income in the budget, but upon collection is used to retire debt or further additional capital improvement projects. Staff Recommendation: Staff recommends setting the impact fee at $300.00 per living unit equivalent, and adopting the creation of the impact fee area. fi le://\ \Docserver\vol 1 \GROUP\AGEN-CAL \Council %20agendas\In-review\03 0923 \Steeplechase~... 9/19/2003 Page 2of2 Related Board Actions: The Planning & Zoning Commission recommended approval of the land use assumptions and capital improvement plan at their August 7, 2003 meeting. City Council approved the same information on August 28, 2003. Relationship to Strategic Plan: This impact fee was included as the preferred means of providing required sanitary sewer service to Annexation Area No. 1, brought into the City in November of 2002. Council Action Options: 1. Approval as presented 2. Approval with changes 3. Denial Supporting Materials: I. Im act fee stud executive summar 2. ImQact Fee Primer 3. Legal Notice 4. Minutes from Planning and Zoning hearing 5. Minutes from first Council Hearing file://\ \Docserver\vol 1 \GROUP\AGEN-CAL \Council%20agendas\In-review\03 0923\Steeplechase~... 911912003 Executive Summary Land Use Assumptions & Capital Improvements Plan Sanitary Sewer Service Area "03-02" The following report was written to serve as the Land Use and Capital Improvement Plan for Sanitary Sewer Service Area "03-02" as shown on Exhibit 1. The service area is located just west of Wellborn Road between FM 2818 (Harvey Mitchell Parkway) and Rock Prairie Road. Sanitary Sewer Service Arca "03-02", as shown in Exhibit 2, currently consists of approximately 715 acres of agricultural, industrial, low and medium density residential and institutional uses. The land use assumptions, as shown herein, are based on the City's Comprehensive Land Use Plan and the history of development in this portion of the City over the past eight years. Projecting a slightly higher than average growth rate as determined from the past eight years growth rate to the next ten year period (2013) would result in the addition of approximately 1, 100 new dwelling units (ranging from low to high density) to the Sanitary Sewer Service Area "03-02". The high density residential in the area has been estimated at 8 dwelling units per acre, medium density residential with a density of 4 dwelling units per acre, low density residential with a density"Of 1 dwelling units per acre, and rural residential with a density of 0.25 dwelling units per acre. It is projected that high density residential areas will fully develop in the "03-02'' service area during the first ten year gwwth window ('03-' 13). Although not projected as an individual land use category on the land use plan for area "03-02". it is assumed that one-half of the transitional land use categories \vill develop as attached residential housing within the transitional land use areas along Wellborn Road. Commercial and retail properties at the intersection of Cain Road and Wellborn Road as well as those at the intersection of Gandy Road and Wellborn Road are anticipated to build out in the first ten year ('03-' 13) growth window. Current rapid development of the Steeplechase Subdivision is expected to continue and will prompt the development of a portion of the retail regional properties in the first ten year ('03-' 13) time frame. Additional retail and commercial properties further away from these main intersections are projected to develop after this first ten year ('03-' 13) period. Due to unknown rail and SH40 alignments, it is anticipated that a small percentage of the industrial tracts along FM 2818 will develop in the first ten year growth window. Industrial land use areas at the intersection of Gandy and Wellborn Road are already platted, and some development has already commenced. This area is expected to develop fully in the first ten year period ('OJ-' 13). It is believed that smaller transitional land use tracts in the service area will develop in the first ten year period ('03~'13). The Capital Improvement Plan for Sanitary Sewer Service Area "03-02" was developed using the Land Use Assumptions for the service area. The scwerlines that will be extended to serve this area consists of a single major trunk line and two collection lines which extend north and south along Wellborn Road/FM 2154. These two collection lines will feed into the larger trunk line which will connect to the existing eighteen inch (18") sanitary sewerline in the Steeplechase subdivision and will run east/west along Sallie Lane from the Steeplechase Subdivision to fttltchell &;Uorgan, UP -2- Wellborn Road. The trunk line t\>nsists of approximately 2000 linear feet of eighteen inch (18") sewerline, the north collection line consists of 2270 linear feet of twelve inch ( 12'') line, and the south collection line consists of 6070 linear foet of fifteen (I 5") and twelve (l 2") inch line. The southern collection line runs parallel to Wellborn Road for 3860 linear feet, of which 2025 linear feet is fifteen inch (15") sewerline and the remainder is twelve inch (12") sewerline. At the end o f this segment, the twelve inch (1 2") line turns southwest for 980 linear fet~l, then S()Uthcast fo r 1225 linear feet ending at the southeast side of Gandy Road approximately 1000 fe,~t west of Wellborn Road. These three sanitary sewerlines are located such that they will serve the entire "03-02" service area, as seen in Exhibit 4. The preliminary estimated project cost is $1,596,137. These costs include engineering and design, land acquisition, and construction costs. The estimated costs that are calculated within the Capital Improvement Plan are reduced by the utility service revenues generated by the new service units which are used to repay debt service. These fees are then proportioned by the ratio of new Living Unit Equivalents (LU E's) to the total Living Equivalents served. This calculation results in t11e maximum allowable impact fee per unit. Below is the estimated eligible cost, cost allocation factor, maximum I 0-year recoverable cost, utility revenue and ad valorem tax credits, and maximum impact fee allowable for Sanitary Sewer Service Area "03-02". /ttitchell &fitorgan, UP - 3 - Estimated Eligible Cost Construction Cost Engineering/Survcy/Geotcchnical Land Cost Impact Fee Preparation Total Eligible Cost Cost Allocatio11 $1,269,717 $190,457 $104,863 $31,lQ_Q $1,596,137 Total New LlJE's ............................................................................................... 3660 Total LLJE's Served ........................................................................................... 4285 Cost Allocation Factor .................................................................. 3660/4285 = 0.85 Maximum Recoverable Cost... ................................. 0.85*$1,596, 137 = $1,356,716 Maximum 10-Year Recoverable Cost Projected LUE's 2003-2013 ............................ ~ ................................................. 1641 Projected LUE's after 2013 ............................................................................... 2019 Total New LUE's ............................................................................................... 3660 Service Distribution% ....................................................... 100*(1641 /3660) = 45% Maximum 10-Year Recoverable Cost ....................... .45%*$1,356,716 = $610,522 Utilitv Revenue & Ad Valorem Tax Credits Utility Revenue Per LUE Applied to Capital Improvements .............................. $50 Total Utility Revenue Crediti .... : .................... ~ ......................... $50* 1641 = $82,000 Ad Valorem Tax Applied to Capital Improvements .............................................. $0 1 Revenue credit on new LUE's associated with I 0-year ('03-' 13) growth window (service time frame) fttitchell &fttorgan, llP -4- Number of New LUE'sii ................ .' ................................................................... 1641 Impact Fee Calculation Maximum Impact Fee = _M~)(;_lWllrnJJ.E'r'.<;:~1r_g_~y.9Vernblc Cost -Total U tility_J~~venuc Cr~dit Number of new LUE's ii Number of new LUE's associated with 10-year growth window ('03-'13) ;kltchell &jkorgan, LLP -5- CITY OF COLLEGE STATION DEVELOPMENT SERVICES 1101 Texas Avenue South, PO Box 9960 College Station, Texas 77842 Phone 979.764 .3570 I Fax 979.764.3496 MEMORANDUM TO : Planning and Zoning Commission FROM: Brett McCully, P.E., Development Engineer SUBJECT: Steeplechase Sewer Impact Fee Study DATE: July 23, 2003 Honorable Chair and Commissioners, Under the authority of Chapter 395 of the Local Government Code, cities may adopt a financial recapture method for many types of infrastructure improvements where the benefit of the improvement to potential development can be identified. These are known commonly as 'Impact Fees'. In essence, if a city follows the impact fee process and constructs a facility designed to serve projected land uses in a defined service area , then that city may collect a fee upon development within that service area. The fees collected are then used to repay the majority of bonds sold by the city to finance the construction of the facility. In this manner, those that develop within the impact fee area, pay their share of the cost of providing the service required and used by their development. In turn, a city has a means of recapturing a significant portion of the infrastructure cost while still providing means to encourage development. Chapter 395 prescribes a very detailed process to adopt such fees, and requires an update process on fees once in place. One of these requirements is that an Advisory Committee is appointed to review generated reports and provide recommendations to the City Council for final action. College Station Code of Ordinances Chapter 15 defines the Planning and Zoning Commission as that advisory body. Therefore the Planning and Zoning Commission is assigned the duties of evaluating proposals for new impact fees, as well as receiving updated reports· and considering amendments on existing fees. The City of College Station currently has four such fees in operation, three for sanitary sewer improvements, and one for a dom~stic water project. Update reports for these existing fees are scheduled to be presented to the Commission during the August 21 st regular meeting. A new impact fee is created through the following general steps: 1. Engineering study of the service area 2. Preparation of an Impact Fee Study Report 3. Public hearing and consideration study report by the Advisory Committee 4. Public Hearing on the Study land use assumptions (LUA) and Capital Improvement Plan (CIP) by the City Council 5. Public Hearing on the imposition of Impact Fees by the City Council For the Steeplechase Sewer Impact Fee,. the first two steps have been completed, and the executive summary of the report is attached for your reference . This agenda item is the third step in the process. A part of the improvements included in the CIP for this fee were identified to be provided as part of the service plan for annexation area #1 during the most recent annexation process. Staff will present the contents of the Steeplechase Sanitary Sewer Impact Fee Study and address any questions or issues that may arise. The Commission is charged with taking one of the following actions within 30 days: 1. 2. 3. Approval of the Study Report as presented and recommending its presentation to City Council. Approval of the Study Report with changes as directed, and presentation of the revised Study Report to City Council. Denial of the Study Report NOTICE OF PUBLIC HEARING ON LAND USE ASSUMPTIONS AND CAPITAL IMPROVEMENTS PLAN RELATING TO POSSIBLE ADOPTION OF Uv1P ACT FEES STEEPLECHASE:WELLBORN ROAD SAN IT ARY SEWER IMP ACT FEE AREA (03-02) The City of College Station Planning and Zoning Commission (P&Z) and City Council will hold two separate public hearings pursuant 10 Senate Bill 243 to consider the land use assurnpuons (LUA) and capital improvements plan (CJ P) under which an impact fee may be imposed. The areas affected by these land use assumptions, capital improvement plans and impact fres are as shown below. Any member of the pubhc has a right to appear al these hearings and present evidence for or against the land use assumptions and capital improvements plan. The LUA and CIP report is aVllilable for put>lic viewing at the city of College Station Public Library. City Secretary's office located in College Station City Hall, and the Utilities Customer Service Building on Krmek Tap Road. The proposed fee per single family home is S322.0i . All technical qucstie>ns she>uld be addrt'SSed tn Bmt McCuliy. Assistant City Engineer at (979; 764-3570. The first public hearing. held by the City of College Station P&Z, is to be held on Thursday. August 7. 2003 at 7:00pm in the City of College Station Council Chambcrs kx:eted at 110 I Te.~as Avenue. College Station, 77840 The P&Z will fonvard their recommendations to the City of College Station City Council who will hold a subsequent public hearing on Thursday, August 28. 2003 at 7:00pm. This hearing will ~lso be held in the City of College Srntie>n Council Chambers at which time the City Council will approve, disapprove. or approve with modifications the LUA and CJP. 111is building is l"hcelchair accessible. Handicap parking spaces are available. Any requi:st for sign intcrpre!ivi: service> must be made 48 hours before the meeting. To make arrangements call (979) 764-3517 or (TOO) l-800-735-2989. Internet website http:!/www.ci.collcge-station.t~.us/, Cable Access Channel J 9 and The Eagle. AGENDA Planning and Zoning Commission CITY OF COLLEGE STATION, TEXAS CITY HALL COUNCIL CHAMBERS 1101 Texas Avenue August 7, 2003 7:00 P.M. COMMISSIONERS PRESENT: Shafer, White, Williams, Hall, Reynolds, Davis and Trapani. COMMISSIONERS ABSENT: COUNCIL MEMEBERS PRESENT: STAFF PRESENT: None. None. Development Services Director Templin, City Planner Kee, Assistant Development Manager George, Senior Planner Battle, Planners Fletcher, Reeves, Prochazka and Hitchcock, Assistant City Engineer McCully, Graduate Civil Engineers Thompson and Cotter, Assistant City Attorney Nemcik, Adhoc Member Charles Thomas, Action Center Representative Kelly and Staff Assistant Hazlett. Chairman Shafer called the meeting to order at 7 P .M. 10. Public hearing, discussion, and possible action on Land Use Assumptions and Capital Improvements Plan relating to possible adoption of Impact Fees for the Steeplechase/Wellborn Road Sanitary Sewer Impact Fee Area. (03-02) This item was moved forward on the agenda and heard as Agenda Item No. 7. Assistant City Engineer McCully presented the Staff Report. He reported on the background process of the Impact Fee, adding that the purpose is to recuperate the significant investment made by the City. He reminded the Commission that it is the advisory committee for the City Council in regards to impact fees. Mr. McCully discussed Land Use Assumptions. He explained that the current Land Use Plan is used when looking at capital improvement and the fee calculation. He discussed the collection process and stated that it is updated every 3 to 5 years. He added that the recalculation can sometimes provide refunds. Mr. McCully pointed out the four current impact fee areas and the uses expected for the proposed area, which has been updated through a ~mall area study. Mr. McCully summarized the sewer impact fee area as being $322.07 per living unit as the maximum amount. Commercial amounts are based on meter size. The time line for the project concludes with the possible adopted by the City Council on September 11, 2003. Commissioner Davis asked if the proposed new State Highway 40 would connect to the subject area. Mr. McCully explained that it originally was a connection but added that the plan has been revised and the report adjusted. Chairman Shafer opened the public hearing. No one made any public comments. Therefore, Chairman Shafer closed the public hearing. Charles Thomas, Adhoc member, motioned to approve the report and to recommend to the City Council the Impact Fee Report as presented. Commissioner Trapani seconded the motion. The motion carried 8-0. FOR: Shafer, Trapani, White, Hall, Reynolds, Davis, Williams and Adhoc Member Charles Thomas. AGAINST: None. AGENDA Planning and Zoning Commission CITY OF COLLEGE STATION, TEXAS CITY HALL COUNCIL CHAMBERS 1101 Texas Avenue August 7, 2003 7:00 P.M. COMMISSIONERS PRESENT: Shafer, White, Williams, Hall, Reynolds, Davis and Trapani. COMMISSIONERS ABSENT: COUNCIL MEMEBERS PRESENT: STAFF PRESENT: None. None. Development Services Director Templin, City Planner Kee, Assistant Development Manager George, Senior Planner Battle, Planners Fletcher, Reeves, Prochazka and Hitchcock, Assistant City Engineer McCully, Graduate Civil Engineers Thompson and Cotter, Assistant City Attorney Nemcik, Adhoc Member Charles Thomas, Action Center Representative Kelly and Staff Assistant Hazlett. Chairman Shafer called the meeting to order at 7 P.M. 10. Public hearing, discussion, and possible action on Land Use Assumptions and Capital Improvements Plan relating to possible adoption of Impact Fees for the Steeplechase/Wellborn Road Sanitary Sewer Impact Fee Area. (03-02) This item was moved forward on the agenda and heard as Agenda Item No. 7. Assistant City Engineer McCully presented the Staff Report. He reported on the background process of the Impact Fee, adding that the purpose is to recuperate the significant investment made by the City. He reminded the Commission that it is the advisory committee for the City Council in regards to impact fees. Mr. McCully discussed Land Use Assumptions. He explained that the current Land Use Plan is used when looking at capital improvement and the • fee calculation. He discussed the collection process and stated that it is updated every 3 to 5 years. He added that the recalculation can sometimes provide refunds. Mr. McCully pointed out the four current impact fee areas and the uses expected for the proposed area, which has been updated through a small area study. Mr. McCully summarized the sewer impact fee area as being $322.07 per living unit as the maximum amount. Commercial amounts are based on meter size. The time line for the project concludes with the possible adopted by the City Council on September 11, 2003 . . Commissioner Davis asked if the proposed new State Highway 40 would connect to the subject area. Mr. McCully explained that it originally was a connection but added that the plan has been revised and the report adjusted. Chairman Shafer opened the public hearing. No one made any public comments. Therefore, Chairman Shafer closed the public hearing. Charles Thomas, Adhoc member, motioned to approve the report and to recommend to the City Council the Impact Fee Report as presented. Commissioner Trapani seconded the motion. The motion carried 8-0. FOR: Shafer, Trapani, White, Hall, Reynolds, Davis, Williams and Adhoc Member Charles Thomas. AGAINST: None. IMPACT FEES City ©f C @llege Stati©n Ad@pted ®rdinances In Acc©rdance With Texas L @cal G @vernrnent C@de § 395 "Impact fees, like other forms of development exactions, are imposed as a condition of development approval to mitigate impacts on public facilities and services generated by the development project. The principal use of impact fees, which distinguishes them from traditional subdivision exactions, is the financing of off-site capital facilities to support new growth." Morgan, T. "The Effect of State Legislation on the Law of Impact Fees, With Special Emphasis on Texas Legislation," 18th Annual Institute on Planning, Zoning and Eminent Domain. 5 Existing Impact Fee Areas WATER • 99-01 Harley Waterline SEWER • 92-01 Grahatn Road Sewerline • 97-01 Spring Creek Sewerline • 97 -02B Aluin Creek Sewerline • 03-02 Steeplechase Sewerline Impact Fee Areas Fee: $550.00 per Living Unit Equivalent 99-01 Harley Waterline 92-01 Graham Road Sewerline Fee: $232 .04 per Living Unit Equivalent 97-01 Spring Creek Sewerline Fee: $349.55 per Living Unit Equivalent 97-02B Alum Creek Sewerline Fee: $243.38 per Living Unit Equivalent 03-02 Steeplechase Sewerline Fee: $300.00 per Living Unit Equivalent The Adoption of Impact Fee Ordinances >-Land Use Assutnptions ~Analyze existing conditions ~ Determine service areas ~Project ten-year growth patterns ~ Ultimate (or ''built out'') growth projections >-The Capital ltnprovetnents Plan ~ Construct facility ~ Collect fees Post-Adoption Requirements ~ Every 5 years ~ Adjust Impact Fee according to actual construction cost (first adjustment, only) ~ Analyze and adjust Land Use assumptions ~ Rebate portion of Impact Fee if adjusted fee is lower than estimated ~ Amend Comprehensive Plan regarding Land Use ~ Amend Comprehensive Plan regarding Utilities ~ Every year ~ Issue letter of compliance with § 395 to State Attorney General's office. Impact Fee Enabling Act The Texas legislature amended the state's impact fee enabling act, effective September 1, 2001. Credits against the impact fees for other taxes or fees that would be paid by new development and used for capital improvements of the same facility type as the impact fee are now required. As an alternative to performing a revenue credit calculation, cities can simply reduce the impact fees by 50 percent. In addition, the amount of time between mandatory updates was increased from three to five years. Finally, the number of public hearings required before impact fees could be updated was reduced from two to one (two are still required for initial adoption). Possible Future Impact Fee Areas Triangle Bordered by Rock Prairie Road, Greens Prairie Road and SH 6: Sewer West Side: Water and Sewer City-wide Impact Fee Area N / ORDINANCE # 2244 AN ORDINANCE AMENDING CHAPTER 15 OF THE CODE OF ORDINANCES, ENTITLED "IMP ACT FEES" OF THE CITY OF COLLEGE STATION, TEXAS, BY AMENDING SECTION (I) (2) (a}, ASSESSMENT OF IMPACT FEES, NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION: I. That CHAPTER 15 of the Code of Ordinances of College Station, SECTION I (2) (a), is hereby amended to read as follows: (a) A development which is submitted for approval pursuant to the City's subdivision regulations following the effective date of this Chapter, assessment shall be at the time of final plat approval for R-1 Single Family Residential, R-lA Single Family Residential, R-2 Duplex Residential, R-3 Townhouse-Rowhouse, R-4 Apartment/Low Density, R-5 Apartment Medium Density, R-6 Apartment High Density and R-7 Mobile Home Park ·and assessment for all other Zoning Districts shall be at the time of issuance of the building permit, and shall be the amount of the maximum impact fee per service unit then in effect, as set forth in Schedule 1, as computed by the procedures set forth in Subsection H{l}. The City , in its sole discretion, may provide the subdivider with a copy of Schedule 1 prior to final plat approval, but such shall not constitute assessment within the meaning of this Chapter. II. This ordinance shall become effective and be in full force and effect from and after its passage and. approval by the City Council and duly attested by the Mayor and City Secretary. PASSED, ADOPTED and APPROVED this 22nd. day of May • 1997. APPROVED: ATTEST: ~~ Connie Hooks, City Secretary WHER collecti '.VHERl possible; NOW, 1 COLLE( -- ORDINANCE NO. 2213 ~t\l,-0( . FAAA f=f,/S, ~~ of' ( l'-'l'f\V \ rMP~ ~(22\~) ------I. THE CODE OF COMPUTATION ~ of issuance of a ~ilities~ of issuance of a md delays the rdation where That Chapter 15, Impact Fees, Section 1-J, of the Code of Ordinances of the City of College Station, is hereby amended to read as follows: "J. COMPUTATION AND COLLECTION OF IMPACT FEES (1) The impact fees due for the new development shall be collected prior-to or at the time of final plat recordation for roadway facilities, water and sanitary sewer facilities unless an agreement between the developer and the City has been executed providing for a different time of payment." II. This ordinance shall become effective and be in full force and effect from and after its passage and approval by the City Council and duly attested by the Mayor and City Secretary. PASSED, ADOPTED and APPROVED this 10th day of October, 1996. APPROVED: ~· CONNIE HOO~ary