HomeMy WebLinkAboutStaff Comments CITY OF COLLEGE STATION
`o DEVELOPMENT SERVICES
1101 Texas Avenue South, PO Box 9960
COLLEGE STATION College Station, Texas 77842
Phone 979.764.3570 / 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 domestic water project. Update
reports for these existing fees are scheduled to be presented to the Commission
during the August 21 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. Approval of the Study Report as presented and recommending its
presentation to City Council.
2. Approval of the Study Report with changes as directed, and presentation
of the revised Study Report to City Council.
3. Denial of the Study Report
Encl.
Sewer Impact Fee Study
Steeplechase - Wellborn Rd.
June 2003
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/MITCHELL &/MORGAN, LLP
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 Area "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
1 units per acre.
It is projected that high density residential areas will fully develop in the "03 -02" service area
1 during the first ten year growth 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 will 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
1 anticipated to build out in the first ten year ('03 -' 13) growth window. Current rapid
j 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 ('03-'13). It is believed that smaller transitional land use tracts in the service area will
develop in the first ten year period ('03-`13).
1 The Capital Improvement Plan for Sanitary Sewer Service Area "03 -02" was developed using
the Land Use Assumptions for the service area. The sewerlines 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
Mitchell &/Horgan, LLP - 2 -
Wellborn Road. The trunk line consists 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 feet of fifteen (15 ") and twelve (12 ") 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
of this segment, the twelve inch (12 ") line turns southwest for 980 linear feet, then southeast for
1225 linear feet ending at the southeast side of Gandy Road approximately 1000 feet 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 (LUE's) to the total
Living Equivalents served. This calculation results in the maximum allowable impact fee per
unit. Below is the estimated eligible cost, cost allocation factor, maximum 10 -year recoverable
cost, utility revenue and ad valorem tax credits, and maximum impact fee allowable for Sanitary
Sewer Service Area "03 -02 ".
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
/MitchelI &/l'lorgan, LLP - 3 -
)
)
Estimated Eligible Cost
Construction Cost $1,269,717
) Engineering/Survey /Geotechnical $190,457
Land Cost $104,863
Impact Fee Preparation $31,100
Total Eligible Cost $1,596,137
)
)
Cost Allocation
)
Total New LUE's 3660
)
Total LUE's Served 4285
) Cost Allocation Factor 3660/4285 = 0.85
)
1 Maximum Recoverable Cost 0.85 *$1,596,137 = $1,356,716
)
1
Maximum 10 -Year Recoverable Cost
Projected LUE's 2003 -2013 1641
Projected LUE's after 2013 2019
1
Total New LUE's 3660
Service Distribution % 100 *(1641/3660) = 45%
Maximum 10 -Year Recoverable Cost 45% *$1,356,716 = $610,522
1
4
Utility Revenue & Ad Valorem Tax Credits
Utility Revenue Per LUE Applied to Capital Improvements $50
1 Total Utility Revenue Credit' $50* 1641 = $82,000
1
Ad Valorem Tax Applied to Capital Improvements $0
1
' Revenue credit on new LUE's associated with 10 -year ('03-'13) growth window (service time frame)
4 /kitchen &/1'lorgan, LLP - 4 -
1
Number of New LUE's" 1641
Impact Fee Calculation
Maximum Impact Fee = Maximum 10 -Year Recoverable Cost — Total Utility Revenue Credit
Number of new LUE's
Maximum Impact Fee = ($610,522- $82,000)/(1641 LUE's) = $322.07/LUE
" Number of new LUE's associated with 10 -year growth window ('03 -' 13)
/Mitchell &/M'lorgan, LLP - 5 -