HomeMy WebLinkAboutSanitary Sewer ReportSewer Impact Fee Study
Steeplechase - Wellborn Rd.
June 2003
VICINITY MAP
N.T.S.
Prepared for:
City of College Station
By
FqTCHELL % HORGAN, LLP
Land Use Assumptions & Capital Improvements Plan
Sanitary Sewer Service Area "03-02"
Table of Contents
Executive Summary
Land Use Assumptions
Existing Land Use
Future Land Use: Ultimate Development
Future Land Use: 10-year Growth Projection
Capital Improvement Plan
Existing Sanitary Sewer Facilities
Projected Sanitary Sewer Facilities: Ultimate Development
Projected Sanitary Sewer Facilities: 10-Year Growth Projection..........
Service Unit Determination
Projected Growth of Living Unit Equivalents
Sanitary Sewer Service Area "03-02" LUE Calculations
Impact Fee Calculation
Estimated Eligible Cost
Cost Allocation
Maximum 10-Year Recoverable Cost
Utility Revenue & Ad Valorem Tax Credits
Impact Fee Calculation
Schedule l
Exhibits
.2
.6
..6
..7
..7
11
11
11
12
13
14
15
18
18
18
18
19
20
21
22
Mitchell & Morgan, LLP - 1 -
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
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 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
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 ('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).
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 & Morgan, 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".
Mitchell & Morgan, LLP -3-
Estimated Eligible Cost
Construction Cost
Engineering/Survey/Geotechnical
Land Cost
Impact Fee Preparation
Total Eligible Cost
Cost Allocation
Total New LUE's
Total LUE's Served
Cost Allocation Factor....
Maximum Recoverable Cost
......3660
......4285
3660/4285 = 0.85
0.85*$1,596,137 = $1,356,716
Maximum 10-Year Recoverable Cost
Projected LUE's 2003-2013
Projected LUE's after 2013
Total New LUE's
Service Distribution
Maximum 10-Year Recoverable Cost
$1,269,717
$190,457
$104,863
$31,100
$1,596,137
......3660
100*(1641/3660) = 45%
..45%*$1,356,716 = $610,522
Utility Revenue & Ad Valorem Tax Credits
Utility Revenue Per LUE Applied to Capital Improvements ..............................$50
Total Utility Revenue Credit' $50* 1641 = $82,000
Ad Valorem Tax Applied to Capital Improvements ..............................................$0
'Revenue credit on new LUE's associated with 10-year ('03-'13) growth window (service time frame)
Hitchell & Horgan, LLP - 4 -
..................1641
..................2019
Number of New LUE's"
Impact Fee Calculation
......1641
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)
Hitchell & Horgan, LLP - 5 -
Sanitary Sewer Service Area "03-02"
Steeplechase/Wellborn Road Area
June 2003
Land Use Assumptions
Existing Land Use
The Steeplechase/Wellborn Road Area designated as Sanitary Sewer Service Area "03-02"
(Exhibit 1) consists of approximately 715 acres of agricultural, residential, commercial and a
small portion of industrial and institutional property. This area has been targeted as an impact
fee area due to the recent College Station annexation of the property and the rapid growth that
has occurred along the Wellborn Road corridor over the past 10 years. In order to assess impact
fees for new sewer infrastructure an evaluation of the existing and future land uses for the area
had to be completed. Exhibit 2 illustrates the existing land uses that were found in the "03-02"
area while Table 1 illustrates the acreages associated with Exhibit 2.
Table 1
Land Use (Year 200
Land Use
Vacant
Rural Density Residential (<1/3 d.u./acre)
Low Density Residential (1/3 - 2 d.u./acre)
Medium Density Residential (3 - 6 d.u./acre)
High Density Residential (7 - 9 d.u./acre)
Residential Attached (10 - 20 d.u./acre)
Retail Regional
Retail Neighborhood
Industrial
Institutional
TOTAL
Gross Acres
310
226
113
36
0
9
12
2
2
715
Mitchell & Morgan, LLP -6-
Future Land Use: Ultimate Development
The future land use assumptions for the area are based on the approved City's Comprehensive
Land Use Plan, an excerpt of which can be seen in Exhibit 3. Heavy residential development has
been occurring in the Edelweiss and Steeplechase Subdivisions along Wellborn Road just south
and east of the subject area. Development in this general area began seriously in 1989 and has
progressed steadily since. At present, the residential portion of the Edelweiss and Steeplechase
Subdivisions are almost fully developed, with the commercial tracts of the development slowly
filling in. The growth in these areas has added over 700 new single-family dwelling units over
the past eight years.
Projecting this same growth rate through the first ten year period (2003-2013) for the subject
area would result in approximately 900 new units being added to the area. The sanitary sewer
area is based upon topography and existing customers served with other sewerlines. The high
density residential in the area has been estimated with a density of 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 unit per acre, and rural residential with a density of 0.25 dwelling
units per acre. It is anticipated that medium density residential will develop first along Cain and
Gandy Roads. Current residential development in these areas is increasing, and continuing
growth is expected.
Future Land Use: 10 year Growth Projection
It is projected that high density residential areas will fully develop in the "03-02" service area
during the first ten year growth window ('03-'13). Development of the residential land use
categories and transitional land use categories shown in Table 2 will result in approximately
1,100 new single-family dwelling units being added to the Sanitary Sewer Service Area "03-02".
Current development in the Steeplechase Subdivision and Fraternity Row has built out in a
similar fashion, and has nearly reached its ultimate buildout for the higher density residential
categories. Due to the recent rapid nature of the buildout of attached residential and high density
residential in these areas, it is reasonable to assume that once sanitary sewer and water is
available to the "03-02" area that this type of housing will rapidly develop in the "03-02" area as
well.
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 also 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 nine acres of the retail
regional properties in this subdivision 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 the ('03-'l 3) period.
Mitchell & Morgan, LLP -7-
It is difficult to predict the timing for the development of the industrial use property at the corner
of Wellborn Road and FM 2818 (Harvey Mitchell Parkway). Due to the unknowns associated
with the TxDOT SH40 alignment and the ongoing discussion regarding the Wellborn Road rail
relocation, these tracts may not consolidate and develop for some time. However, it is likely an
aggressive developer could build on these tracts immediately without concern for the unknowns
associated with these major transportation issues. If that is the case, the infrastructure will be in
place to support such a development. However, it is more likely that only a small percentage (11
acres or 16%) of the industrial tracts along FM 2818 will develop in the first ten year growth
window ('03-'13). 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 (33 acres) in the first ten year period ('03-'13). The remainder of the industrial development
in the "03-02" service area is projected to take place after this first ten year growth period ('03-
'13).
This service area includes a unique land use labeled as "transitional". This category has been
used to identify areas that could reasonably develop as residential attached or as
commercial/retail uses. For calculations, the transitional areas were assumed to develop as one-
half residential attached and as one-half commercial/retail land use. This additional land use
category was added to this area to allow flexibility for those tracts affected by the unknowns
associated with the SH40 alignment and possible rail relocation. It is anticipated that
approximately 13 acres or approximately 25% of the transitional land use tracts in the service
area will develop during the first ten year period ('03-13). The remainder of the transitional
area will most likely take additional time to develop as the property owners wait to see the
results of TxDOT's work in the area. The transitional land use category consists of a
combination of commercial/retail and residential attached properties.
The land uses and acreages that are projected to develop within the first ten year window (2003-
2013) for Sanitary Sewer Service Area "03-02" are shown in Table 2.
Mitchell & Morgan, LLP -8-
Table 2
Sanitary Sewer Service Area "03-02"
Growth Projections (2003-2013)
Land Use
Rural Density Residential (<1/3 d.u./acre)
Low Density Residential (1/3 - 2 d.u./acre)
Medium Density Residential (3 - 6 d.u./acre)
High Density Residential (7 - 9 d.u./acre)
Residential Attached (10 - 20 d.u./acre)**
Retail Regional
Retail Neighborhood
Industrial
Institutional
Transitional*
Parks
SH40 ROW
TOTAL
Gross Acres
20
36
180
10
0
15
6
44
0
13
10
11
345
*Acreages throughout do not make allowances for street rights-of-way, therefore the reduction of developable land
due to these is taken into account through densities as described on page 13.
**Although not an individual area on the land use plan, residential attached is assumed to buildout as one-half of the
development within transitional land use areas. The remaining half of transitional areas is assumed to develop as
commercial/retail properties.
Mitchell & Morgan, LLP -9-
The land uses and acreages that are projected to develop beyond the first ten year window (2003-
2013) for the Sanitary Sewer Service Area "03-02" are shown in Table 3. These two growth
projection windows are important to understand due to the fact that the impact fees must be
assessed based upon the growth that will initially occur within a "reasonable period of time"
defined within impact fee legislation as ten years. This future growth which will likely occur
after the year 2013 may be assessed impact fees as the impact fee report is updated every 3-5
years and the growth window for the area shifts, resulting in the recalculation of the fees based
upon a new growth scenario.
Sanitary Sewer Service Area "03-02"
Growth Projections (Future: after 201
Land Use
Rural Density Residential (<1/3 d.u./acre)
Low Density Residential (1/3 - 2 d.u./acre)
Medium Density Residential (3 - 6 d.u./acre)
High Density Residential (7 - 9 d.u./acre)
Residential Attached (10 - 20 d.u./acre)*
Retail Regional
Retail Neighborhood
Industrial
Institutional
Transitional*
Parks
SH40 ROW
TOTAL
not an individual area on the land use plan, residential attached is
Gross Acres
20
33
188
0
0
42
4
26
7
43
7
0
370
to
as one
development within transitional land use areas. The remaining half of transitional areas is assumed to develop as
commercial/retail properties.
Mitchell & Morgan, LLP -10-
Capital Improvement Plan
Sanitary Sewer Service Area "03-02"
Existing Sanitary Sewer Facilities
The Sanitary Sewer Service Area "03-02", as previously discussed, is shown on Exhibit 1. This
service area is located within the South Fork of Bee Creek drainage basin. Sanitary sewer
service to this basin is currently provided through an existing eighteen inch (18") gravity sanitary
sewerline, which terminates just north of West Ridge Drive between Pronghorn Lane and Pintail
Lane in the Steeplechase Subdivision. This sewerline carries wastewater under FM 2818 toward
the A&M Consolidated High School, down Bee Creek toward Texas Avenue at the City Police
Station, and then on to the Carter Creek Wastewater Treatment Plant. These existing facilities
are all located outside the Sanitary Sewer Service Area "03-02". Cost recovery related to the
existing treatment plant and the existing eighteen inch (18") sanitary sewerline are not being
considered within this service area at this time.
Projected Sanitary Sewer Facilities: Ultimate Development
The sewerlines that will be extended to serve this area consists of a single major trunk line and
two collection lines which will extend north and south along Wellborn Road (FM 2154). These
two collection lines will feed into the larger trunk line which will tie into the existing eighteen
inch (18") sanitary sewer line in the Steeplechase Subdivision and run east/west along Sallie
Lane from the Steeplechase Subdivision to 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. It is anticipated that these
improvements will be designed and constructed under one contract. 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 which is based upon the following
estimate shown in Table 4.
The total estimated cost of the Sanitary Sewer improvements is $1,596,137. These costs include
engineering and design, land acquisition, and construction. Although state law permits the
inclusion of interest charges and other financing costs in the capital improvements plan, such
costs have not been included in this report. Because project costs are to be adjusted through the
amendment process mandated by state law, no inflationary factors have been included in the
project estimates.
Mitchell & Morgan, LLP - 11 -
Table 4
Sanitary Sewer Service Area "03-
Estimated Construction Cost
02"
Item
#
Description
Quantity
Units
Unit Price
Price
1
Mobilization
1
L. S.
$99,500
$99,500
2
ROW Prep
5.5
Ac.
$3,500
$19,250
Sewer System Items
3
18" PVC Sewerline, 0-8' Depth
598
L. F.
$94
$56,212
4
18" PVC Sewerline, 8-14' Depth
598
L. F.
$100
$59,800
5
18" PVC w/30" Steel Casing by Mechanical Bore
185
L. F.
$975
$180,375
6
15" PVC Sewerline, 0-8' Depth
2025
L. F.
$90
$182,250
7
12" PVC Sewerline, 0-8' Depth
4290
L. F.
$50
$214,500
8
12" PVC Sewerline, 14-20' Depth
2022
L. F.
$60
$121,320
9
Standard Manhole
25
Ea.
$2,500
$62,500
10
Connect to existing manhole
1
Ea.
$1,000
$1,000
11
Trench safety (sewerline)
9533
L. F.
$2
$19,066
12
Contingency (25%)
25%
$253,943
Total Construction Costs
$1,269,717
Land Acquisition
9533
L. F.
$11
$104,863
Engineering/Land Surveying/Geotechnical
15%
$190,457
Impact Fee Preparation
$31,100
Sewer Total
$1,596,137
Projected Sanitary Sewer Facilities: 10-Year Growth Projection
State law limits the City to collection of the infrastructure costs necessary to service a time frame
not to exceed ten years. Service distributions, as seen later in this report, allow the City to
comply with state law without having to construct this smaller sanitary sewerline and then return
10-15 years later to construct a parallel sanitary sewerline to accommodate the flow increase
from ultimate development. The trunk line needed to serve the first ten year projected growth
window is a fifteen inch (15") line.
Mitchell & Morgan, LLP -12-
Service Unit Determination
The City of College Station has selected the Living Unit Equivalent as the appropriate measure
of wastewater service consumption by new development in their impact fee areas. The same has
been chosen for Sanitary Sewer Service Area "03-02". As used in the Capital Improvement
Plan, a "service unit" is defined as a single-family residence without regard for the number of
bedrooms. A 5/8-inch water meter is the typical size water meter serving a single-family
residence in the city. Since water use is directly related to sanitary sewer discharge, the water
meter size will be used to determine Living Unit Equivalents for non-residential land uses. The
5/8-inch meter is considered one unit. Other meter sizes are proportioned Living Unit
Equivalents according to their flow relationship to the 5/8-inch meter. Living Unit Equivalents
for residential structures are shown in Table 5, while those for non-residential structures are
shown in Table 6.
Table 5
ivina Unit Eat
Residential Structures
_Type ofStructure
Unit
LUE
Single Family Dwelling
Structure
1
(all sizes/no. of bedrooms)
Duplex
Duplex
2
(all sizes/no. of bedrooms)
Triplex
Triplex
3
(all sizes/no. of bedrooms)
Fourplex
Fourplex
4
(all sizes/no. of bedrooms)
Multi-family
(one and two bedroom units)
Unit
0.75
(three and more bedroom units)
Unit
1
Mobile Home
Mobile Home
0.75
Mitchell & Morgan, LLP - 13 -
Table 6
Living Unit Equivalents
Non-Residential Structures
Meter Size
LUE/Meter Size
5/8 inch simple
1
3/4 inch simple
1.5
1 inch simple
2.5
1-1/2 inch simple
5
2 inch simple
8
2 inch compound
8
2 inch turbine
10
3 inch compound
16
3 inch turbine
24
4 inch compound
25
4 inch turbine
42
6 inch compound
50
8 inch compound
80
6 inch turbine
92
10 inch compound
115
8 inch turbine
160
10 inch turbine
250
12 inch turbine
330
Projected Growth of Living Unit Equivalents
It is necessary to establish relationships between Living Unit Equivalents and the various land
uses. The following density relationships have been determined after a review of developed land
uses within the city, a comparison of consumption rates of each land use category and
comparisons with the American Society of Civil Engineers design recommendations. The
service unit to be applied is a typical single family dwelling without regard to the number of
bedrooms. Such a unit is otherwise referred to as a "dwelling unit" and for the purpose of this
plan the two terms are interchangeable. The following table itemizes the projected densities per
land use category. These numbers take into account the loss of acreage to rights-of-ways.
Mitchell & Morgan, LLP -14-
Table 7
Projected Densities Per Land Use Cate2orv
Land Use Catezory
Rural Density Residential (<1/3 d.u./acre)
Low Density Residential (1/3 - 2 d.u./acre)
Medium Density Residential (3 - 6 d.u./acre)
High Density Residential (7 - 9 d.u./acre)
Residential Attached (Multi-family)
Commercial/Industrial
Parks
Schools/Institutional
Agricultural
Dwellinz Units per Acre
.25
1
4
8
13
10
0
2
0
Sanitary Sewer Service Area "03-02" L UE Calculations
The existing land use acreages and living unit equivalents for the Sanitary Sewer Service Area
"03-02" are shown in Table 8.
Table 8
Sanitary Sewer Area "
Existing LUE's
03-02"
Land Use
Acres
LUE/Acre
LUE's
AgriculturaINacant
310
0
0
Rural Density Residential
(<1/3 d.u./acre)
226
.25
57
Low Density Residential
(1/3 - 2 d.u./acre)
113
1
113
Medium Density Residential
(3 - 6 d.u./acre)
36
4
144
High Density Residential
(7 - 9 d.u./acre)
0
8
0
Residential Attached
(Multi-family @ 10-20 d.u./acre) 9
13
117
Commercial/Industrial
19
10
190
Parks
0
0
0
Institutional
2
2
4
TOTALS
715
625
Mitchell & Morgan, LLP - 15 -
The acreages and living unit equivalents projected to develop in Sanitary Sewer Service Area
"03-02" within the first ten year growth window (2003-2013) are shown in Table 9.
Table 9
Sanitary Sewer Area "03-02"
Projected Growth in LUE's (2003-2013)
Lund Use Acres
LUE/Acre
LUE's
AgriculturalNacant
0
0
0
Rural Density Residential
(<1/3 d.u./acre)
20
.25
5
Low Density Residential
(1/3 - 2 d.u./acre)
36
1
36
Medium Density Residential
(3 - 6 d.u./acre)
180
4
720
High Density Residential
(7 - 9 d.u./acre)
10
8
80
Residential Attached
(Multi-family @ 10-20 d.u./acre)
0
13
0
Commercial/Industrial
65
10
650
Institutional
0
2
0
Transitional*
13
11.5
150
Parks
10
0
0
SH40 ROW
11
0
0
TOTALS
345
1641
* Transitional land use was assumed to consist of one-half attached residential (13 LUE/Ac) and one-half
commercial (10 LUE/Ac)
Mitchell & Morgan, LLP -16-
The acreages and living unit equivalents projected to develop in Sanitary Sewer Service Area
"03-02" beyond the first ten year window (2003-2013) are shown in Table 10.
Table 10
Sanitary Sewer Area "03-02"
Projected Growth in LUE's (Future: after 2013)
Land Use Acres
L IE/Acre
LUE'v
AgriculturaINacant
0
0
0
Rural Density Residential
(<1/3 d.u./acre)
20
.25
5
Low Density Residential
(1/3 - 2 d.u./acre)
33
1
33
Medium Density Residential
(3 - 6 d.u./acre)
188
4
752
High Density Residential
(7 - 9 d.u./acre)
0
8
0
Residential Attached
(Multi-family @ 10-20 d.u./acre)
0
13
0
Commercial/Industrial
72
10
720
Institutional
7
2
14
Transitional*
43
11.5
495
Parks
7
0
0
SH40 ROW
0
0
0
TOTALS
370
2019
* Transitional land use was assumed to consist of one-half attached residential (13 LUE/Ac) and one-half
commercial (10 LUE/Ac)
Mitchell & Morgan, LLP -17-
Impact Fee Calculation
Estimated EZieible Cost
Construction Cost
Engineering/Survey/Geotechnical
Land Cost
Impact Fee Preparation
Total Eligible Cost
Cost Allocation
$1,269,717
$190,457
$104,863
$31,100
$1,596,137
The costs recoverable by impact fees are proportioned by the ratio of new Living Unit
Equivalents (LUE's) to the total LUE's served. Since impact fees are collected at the time of
new construction, only new LUE's may be charged directly for new capital improvement
projects in the "03-02" service area. The cost allocation factor removes existing LUE's from the
impact fee calculation.
Total New LUE's
......3660
Total LUE's Served ...........................................................................................4285
Cost Allocation Factor 3660/4285 = 0.85
Maximum Recoverable Cost = Cost Allocation Factor * Total Eligible Cost
Maximum Recoverable Cost = 0.85*$1,596,137 = $1,356,716
Maximum 10-Year Recoverable Cost
State law limits the City to collection of the infrastructure costs necessary to service a time frame
not to exceed ten years (10-year recovery period or growth window). Service distributions allow
the City to comply with state law without having to construct a smaller sanitary sewerline and
then return ten to fifteen years later to construct a parallel sanitary sewerline to accommodate the
flow increase. The impact fee reports are updated every three to five years, allowing the service
time frame to continually shift forward ensuring eventual recovery of all eligible costs. The
service distribution for the first ten year window ('03-'13) was based on the ratio of full
development flow to flow needed for the projected growth from 2003 to 2013.
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Projected New LUE's 2003-2013 ......................................................................1641
Projected New LUE's after 2013 .......................................................................2019
Total New LUE's ...............................................................................................3660
Service Distribution % = 100 * New LUE's for Ten-Year Time Frame (2003-2013)
Total New LUE's
Service Distribution % = 100*(1641/3660) = 45%
Maximum 10-Year Recoverable Cost = Service Distribution % * Maximum Recoverable Cost
Maximum 10-Year Recoverable Cost = 45%*$1,356,716 = $610,522
Utility Revenue & Ad Valorem Tax Credits
A portion of customer utility bills are used to finance City capital improvement projects. This
portion of the utility bills is used toward the repayment those utility bonds. Utility revenue
credits ensure that those customers paying impact fees do not fund the capital improvements to
service their area through impact fees and their utility bills, thus paying twice for the same
improvements. The same would be done for any ad valorem taxes used to fund capital
improvements. Currently, the City of College Station does not use ad valorem taxes to finance
capital improvements.
Utility Revenue Per LUE"' = X*Y*n
X = Average monthly sewer utility bill per LUE
Y = Percent of average monthly sewer utility bill applied to debt service for bond payment for
sewer capital improvement projects in subject area
n = Number of months associated with service time frame (ten years)
Utility Revenue Per LUE = $20.93 *2%* 120 = $50
Utility revenue per LUE which are used to finance capital improvement bonds
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Number of New LUE's"'
......1641
Total Utility Revenue Credit° = Utility Revenue Per LUE * Number of New LUE's
Total Utility Revenue Credit = $50* 1641 = $82,000
Ad Valorem Tax Applied to Capital Improvements ..............................................$0
Impact Fee Calculation
Maximum Impact Fee = Maximum 10-Year Recoverable Cost - Total Utility Revenue Credit
Number of new LUE's in 10-year Growth Window
Maximum Impact Fee = ($610,522-$82,000)/(1641 LUE's) = $322.07/LUE
Number of new LUE's associated with service time frame, first 10-year window ('03-13)
" Revenue credit on new LUE's associated with first 10-year ('03-'13) window
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Schedule 1
Maximum Impact Fee Per Service Unit
Service Area Service Unit Maximum Impact Fee
Roadway Facilities:
(reserved)
Sanitary Sewer Facilities:
1103-02" LUE...................................... $322.07
Water Facilities
(reserved)
Drainage Facilities:
(reserved)
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