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HomeMy WebLinkAboutItem 12 An Ordinance Relating to Fire Impact Fees center of GOOd Lf ~ AGENDA ITEM COVER SHEET Meeting Date: March 15,2005 Item # _\~ Contact Name: Contact Number: Chief Richard Firstner 407 -905-3100/2000 Reviewed By: Department Director: City Manager: Richard Firstner ~ , Subject: Fire Impact Fees - Revision Background Summary: After review of the capital needs identified in the January 18, 2005 presentation and workshops with the Home Builders Association representatives, staff has revised two items in the original proposal. Issue: After meetings with the public and the HBA, the methodology for computing the fire impact fees has been adjusted to reduce equipment needs over the 20 year planning horizon. The impact fee has been reduced to account for these changes. Recommendations The Mayor and City Commission adopt the revised ordinance to increase the Fire Impact Fees as defined in the attached Fire Impact Fee Ordinance Amendment. Attachments: Fire Department Impact Fee Revision slide presentation Fire Impact Fee Adjustment Summary Fire Impact Fees Ordinance Financial Impact: The Fire Impact Fees have been reduced to reflect the deletion of the Training Facility and 4 Ambulances. First Reading: $672.00 residential flat rate $0.50 per square foot, non-residential Second Reading: Fire impact fee adjusted to: $636.00 residential flat rate $0.47 per square foot, non-residential Type of Item: o Public Hearing o Ordinance First Reading ~ Ordinance First Reading o Resolution o Commission Approval o Discussion & Direction For Clerk's DeDf Use: o Consent Agenda o Public Hearing o Regular Agenda o Original DocumenUContract Attached for Execution by City Clerk o Original DocumenUContract Held by Department for Execution Reviewed by City Attorney Reviewed by Finance Dept. Reviewed by ( ) o N/A o N/A o N/A City Manager Robert Frank center of GOOd L . jiii Commissioners Danny Howell. District 1 Scott Anderson. District 2 Rusty Johnson, District 3 Nancy J. Parker, District 4 Mayor S. Scott Vandergrift STAFF REPORT TO: The Honorable Mayor and City Commissioners Richard Firstner, Fire Chief@ March 15,2005 FROM: DATE: RE: Fire Impact Fee - Revision ISSUE Deletion ofthe Fire Training Facility ($500,000) and four (4) Ambulances ($230,000) from the original capital needs, anticipated due to new growth. BACKGROUNDIDISCUSSION After reviewing the anticipated capital needs for fire protection and conversations with the Home Builders Association, staff has revised the Fire Impact Fee calculations to reflect the following: Deletion of the Fire Training Facility ($500,000). It was determined that a fire training facility was not driven by the new growth anticipated, but would be an addition benefited by all the residents of the city, both existing and new. The training facility, if determined to be necessary, would be funded from other sources. Deletion of four (4) Ambulances ($230,000). It was determined that the addition of ambulances for the purpose of transporting patients to a medical facility represents an increase in the level of service currently provided to the residents of Ocoee. As such, any increase in service level should be shared with the entire population, both existing and new. RECOMMENDA TION It is recommended that the Mayor and City Commissioners adopt an ordinance to increase the Fire Department impact fees from: Residential: Non-Residential: $0.182 per square foot $0.284 per square foot to Residential: Non-Residential: $636.00 flat rate $0.47 per square foot (Proposed Fees - First Reading) Residential: Non-Residential: $672.00 flat rate $0.50 per square foot Copy of Public Hearing Advertisement Orlando Sentinel Date Published Thu..(s~a(c.k 3, ZooS- Advertisement CITY OF OCOEE NOTICE OF PUBLIC HEARING FOR AN AMENDMENT TO THE CODE OF ORDINANCES N()I[ICE IS HEREBY GIVEN, pursuant to Subsection 166.041(3)(c) 2., Florida Statues, that on Tuesday, MARCH 15.2005 at 7:15 p.m. or as soon thereafter as practical, the CITY OF OCOEE CITY COMMISSION will hold the SECOND READING & PUBLIC HEAR- ING at the City of Ocoee Commission Chambers, 150 . North Lakeshore Drive, Ocoee, Florida, to consider the adoption of the following Ordinance concerning fire impact fees: AN ORDINANCE OF THE CITY OF. OCOEE, , FLORIDA RELATING TO FIRE IMPACT FEES; AMENDING SECTION 87-28.C OF ARTICLE ill OF CHAPTER 87 OF THE CODE OF ORDINANCES OF THE CITY OF OCOEE RELATING TO INTENT, PURPOSE AND BASIS; ~NDING SECTION 87- 30' OF ARTICLE ill OF CHAPTER 87 OF THE CODE OF ORDINANCES OF THE CITY OF OCO~ RELATING TO FEE SCHEDULE; CHANG- ING THE CALCULATION OF THE FIRE IMPACT FEE FOR RESIDENTIAL DWELLING UNITS FROM ONE BASED ON SQUARE FOOTAGE TO A FLAT RATE PER RESIDENTIAL DWELLING UNIT; INCREASING THE FIRE IMPACT FEE PER SQUARE FOOT NON-RESIDENTIAL STRUC- TURES; PROVIDING FOR SEVERABILITY; PRO- VIDING FOR CODIFICATION; PROVIDING AN EFFECTIVE DATE Interested parties may appear at the public hearing and be heard with respect to the proposed actions. The complete case file may be inspected at the Ocoee Community Development Department/Planning Division located at 150 North Lakeshore Drive, Ocoee, Florida between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday, except legal holidays. The City Commission may continue the public hearings to other dates and times, as it deems necessary. ~y inter- ested party shall be advised of the dates, times, and places of any continuation of these or continued public hearings. Any continuances shall be announced during these hear- ings and no further notices regarding these matters will be published. . You are advised that any person who desires to appeal any decision made at the public hearings will need a record of the proceedings and for this purpose may need to ensure that a verbatim record of the p'~oceedings is made which includes the testimony and evidence upon which the appeal is based. Persons with disabilities needing assistance to participate in any of these proceedings should contact the City Clerk's Office 48 hours in advance of the meeting at 407- 00"_110'1. O:\Office Procedures\Copy of Public Hearing Advertisement.doc Ocoee Fire Department Impact Fee Adjustment Summary Existing]P A Population: 39,000 2020]P A Population Estimate: 78,000 New Residential Dwelling Units: 12,288 New Non-Residential Square Footage: 10,982,880 Service Call Ratio: 600/0 Residential 40% N on- Res idential New Facilities Required: $2,820,000 New Vehicles Required: $612,500 Existing Debt Service: $9,600,000 Total Capital and Debt Service: $13,032,500 Current Residential Impact Fee: $0.182 per square foot Current Non-Residential Impact Fee: $0.284 per square foot Proposed Residential Impact Fee: $636.00 flat rate Proposed Non-Residential Impact Fee: $0.47 per square foot 2. Fire Impact Fee Update Based on the data provided in the 2000 impact fee update and the 2004 impact fee update our analysis indicates that the "fair-share" fire impact fee should be $486 per dwelling unit, as reflected in Table 2.1 below. The current inventory in 2004 is identical to the inventory in 2000 indicating that no capital investment was made with recently collected impact fees. Impact fees need to be encumbered within 6-years of collection. QcoeeF:iJ.e Impact FlOe Calculation *N"ew Facility Cost *Rolling Stock Exi'itingDebt Senice Subtotal Fund Balance Guud Total Residential 2000 9,228,443 9,998.761 19.22"::'.204 2004 3,320,000 842,500 9.600.000 13. -:'62,500 60% Reosiclel\tial Impact Feoeo 486 " ~Il1ltiplieocl by " factol' of .485 to npreseut use by existiug developll\eut of police facilities Tins factor was used ill dIe 2000 Fire Impact Fee Update In 2000 the future capital needs were $7,210,443. This was reduced by a factor of .485 to account for the collocation of the police station at FS 1 resulting in a capital cost of $3,497,064. FS2 costs were also reduced by a factor of .485 to account for the construction of the training, which resulted in a cost of $1,007,000 (from $2,078,000). To ensure the methodology remained consistent, our analysis reduced the cost of the new faCility and the rolling stock by the same factor of .485 to shift some of the burden to existing residents, who will use these facilities. Outstanding long-term debt of $9,600,000 was included as a cost component in the Update. Although this item was not changed in this analysis we strongly recommend reducing this cost to reflect the use of the financed capital facilities use by existing residents. The same factor as previously stated could apply. The debt service payments are for capital facilities that have already been constructed (debt includes refunding bonds for FS3 & FS4, $3,640,250). Future residents will pay tax payments to support the capital renewal of these facilities. The 2004 fund balance of $991,268 should be deducted from the total cost to represent the existing resources to be used on new capital. This same methodology was used in the 2000 study. 11 GOVERNMENT SOLUTIONS "Heeting Today's Challenges"" February 7, 2005 Public Finance Mr. Terry L. James, Principal Planner Planning Division, Community Development Department City of Ocoee 150 N. Lakeshore Drive Ocoee, Florida 34761 5596 SE Lamay Dr. Stuart, FL 34997 (772) 78 t -4036 Fax: (772) 286-2226 Cell: (561) 704-1314 Subject: City of Ocoee Impact Fee Update Questions Reference: City of Ocoee Impact Fee Updates www.govsolutions.org Dear Mr. James, ksor@bellsouth.net Please fmd attached several questions regarding the City's impact fee updates for Transportation, Fire, Police, and Parks & Recreation. The Home Builders Association of Metro Orlando, in conjunction with our professional staff, is presenting these questions for the Friday, February 11th workshop. We are grateful for this opportunity and look forward to Friday's discussion. If you have any questions or need additional information, please contact me at (772) 781-4036. Sincerely, JCvr.t$~ Impact Fees . Market Studies . Strategic Planning . Fiscal Impact . Quality Mgmt. . Economic Analysis . Demographics Kirk Sorenson, Government Solutions Cc: Rick McKee, Home Builders Association of Metro Orlando Robert Frank, City Manager Paul Rosenthal, City Attorney Russ Wagner, Community Development Director Questions Regarding the City of Ocoee Impact Fee Updates 1. Transportation Impact Fee Update The Update calculates attributable road construction cost at $2.3 million per lane mile. This is based on only 3 city road projects and 2 county road projects. Why are the other projects listed in the CIP omitted from the cost calculations? Are there previously constructed roads that could be used as a standard to better calculate the lane mile cost? Typically, the total cost per lane-mile should be based on the aggregate cost of design, ROW, and new construction costs. The Update does not identify the specific transportation cost elements. This makes it difficult to analyze the average lane mile cost for anomalies. Would the City provide this data to allow us to conduct a thorough review of the transportation impact fees? The Main Street expansion project costs are 79% greater than the average costs of the other road projects. This cost is considered atypical based on excessive ROW costs and should be excluded from the analysis. Would the City be willing to exclude the project from the fee calculations? The CIP and Update does not identify specific revenue sources used by each road project. Many of the road projects appear to be funded by grants, developer contributions, or other sources (other than impact fees). These revenue sources should be clearly identified in the CIP and Update. Revenue credit should be applied in the calculation if "other than impact fee funds" are being used. Would the City please provide the necessary backup data used to calculate "other than impact fee" revenue? The Update references a 20-year planning horizon to calculate revenue credits (based on the Comprehensive Plan). This credits equate to about $1-million per year in other sources of revenue applied to road projects. The 2003 CIP indicates the generation of substantial revenue from funding sources other than impact fees. A 5-year projection of cost and revenue will result in more accurate data as opposed to a 20-year period. How are these revenues accounted for in the Update? Normally gas tax revenues collected in the current year should be credited to new development over a 25-year amortization period, at the prevailing discount rate. The Update does not adequately address the collection and use of local option gas tax revenue. What is the data source used to calculate the revenue credits? The Update does not provide the necessary data to verify the VMT calculation. A worksheet should provide the trip rates, trip lengths, and new trip factors for each land use category. Would the City be willing to provide this information? 2 2. Fire Impact Fee Update Typically, capital facility needs that are not created by new development are not used in the calculation of total facility costs. These costs are normally financed with other revenue sources. In addition, the ratio of 50% funded by impact fees based on the 2020 population does not correspond to the CIP requirements and lacks rational nexus. Please explain the methodology used to calculate facility cost data? The facility costs are typically based on the LOS per demand unit. What is the level of service used in the Update (i.e. square foot per weighted or functional population)? Residential and nonresidential impact fees should be broken down by specific land uses (i.e. single-family, multi-family, retail, office, etc.). The facility cost should be applied based on those consuming the service, such as land use functional population projections. Would the City be willing to add these categories to the Update? Past and future revenue credits should be applied in the calculation to account for tax payments made by new development for capital facilities. Other revenue sources should also be identified. How is the City accounting for these revenue credits? 3. Police Impact Fee Update A 5-year CIP should be used to determine anticipated facility cost per weighted resident. This cost data can be used to determine the future facility cost based on the service requirements of new development. Please explain how the facility costs are calculated for new development? The LOS could be determined by the existing facility area per weighted resident. This would then be used to determine the projected cost per new resident. Are the facility cost based on the existing LOS? The Update uses 20-year law enforcement needs assessment to determine the short- term impact fees for new development. Would the City be willing to use the 5-year capital plan to determine facility costs? Residential and nonresidential impact fees are normally broken down by land use (Le. single-family, multi-family, retail, office, etc.). The cost should be applied based on a demand component, such as functional population at each type of land use. Would the City be willing to add these categories in the Update? There are no revenue credits for past or future tax payments made by new development for new capacity. Would the City be willing to include these factors in the impact fee calculation? 3 4. Parks & Recreation Impact Fee Update Typically, facility needs are based on a 5-year CIP rather than a 20-year growth management plan. This would ensure the benefits principles are achieved. Would the City be willing to use the adopted CIP to determine facility cost data? In most impact fee studies, the cost per weighted resident is used to determine future costs per resident (at existing levels of service). What demand components are used in the Update to determine cost per resident or dwelling unit? Past and future tax payments should be accounted for in the calculation to ensure new development is not double charged for the same capital facility. How is the City accounting for these revenue credits? To ensure new development is receiving the required benefit from the new facility, they should be located near the planned new development or existing resident should contribute to the facility costs. Are the planned recreational facilities located geographically near areas of future growth or are they serving the entire City? Typically, additional housing categories are represented in impact fee studies, such as multi-family, hotel, mobile home, and retirement home. The fee should be based on the weighted resident is each type of housing unit. Would the City be willing to use additional residential land use categories? 4 ORDINANCE NO. AN ORDINANCE OF THE CITY OF OCOEE, FLORIDA RELATING TO FIRE IMPACT FEES; AMENDING SECTION 87-28.C OF ARTICLE III OF CHAPTER 87 OF THE CODE OF ORDINANCES OF THE CITY OF OCOEE RELATING TO INTENT, PURPOSE AND BASIS; AMENDING SECTION 87-30 OF ARTICLE III OF CHAPTER 87 OF THE CODE OF ORDINANCES OF THE CITY OF OCOEE RELATING TO FEE SCHEDULE; CHANGING THE CALCULATION OF THE FIRE IMPACT FEE FOR RESIDENTIAL DWELLING UNITS FROM ONE BASED ON SQUARE FOOTAGE TO A FLAT RATE PER RESIDENTIAL DWELLING UNIT; INCREASING THE FIRE IMPACT FEE PER SQUARE FOOT FOR NONRESIDENTIAL STRUCTURES; PROVIDING FOR SEVERABILITY; PROVIDING FOR CODIFICATION; PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Commission of the City of Ocoee has the authority to adopt this Ordinance pursuant to Article VIII of the Constitution of the State of Florida and Chapter 166, Florida Statutes; and WHEREAS, the City Commission of the City of Ocoee desires to change the calculation of the fire impact fee for residential dwelling units from one based on square footage to a flat rate per residential dwelling unit and increase the fire impact fee per square foot for nonresidential structures, provided, however, that the existing fees shall apply to any new buildings for which a building permit application has been submitted to the City on or prior to the effective date of this Ordinance and for which a building permit is issued within ninety (90) days from the date of adoption of this Ordinance; and 006.330576,4 WHEREAS, the City has conducted an updated study regarding impact fees and according to this study has made a determination as to the necessary uniform fire impact fees for new residential dwelling units and new nonresidential structures within the City. NOW, THEREFORE, BE IT ENACTED BY THE CITY COMMISSION OF THE CITY OF OCOEE, FLORIDA, AS FOLLOWS: SECTION 1. Authoritv. The City Commission of Ocoee has the authority to adopt this Ordinance pursuant to Article VIII of the Constitution of the State of Florida and Chapter 166, Florida Statutes. SECTION 2. Amendment to Section 87-28.C Section 87-28.C of Article III of Chapter 87 of the Code of Ordinances of the City of Ocoee, Florida, is hereby amended to read as follows (with deletions stricken and additions underlined): C. This article is based upon a study by the Ocoee Fire Department and Planning Department ,_a~ t!-R~t~t~~jJlSQl!!l~ction \YilILlhecadoptjQ!! of this=nrQiI1an_c~,,_of the anticipated growth in the City of Ocoee and a projection of the equipment and facilities necessary to serve the anticipated growth. SECTION 3. Amendment to Section 87-30 Section 87-30 of Article III of Chapter 87 of the Code of Ordinances of the City of Ocoee, Florida, is hereby amended to read as follows (with deletions stricken and additions underlined): ~ 87-30. Fee schedule. A. The following fire impact fees are hereby assessed by the city and shall be collected by the city prior to issuance of a building permit or any other development permit for the construction of any structure to be used fef as a residential or nonresidemial dwelling or nonresidential structure: (1) (2) Residential: $Gc-l-8-2, $636.00 per Dwelling Unit square foot. Nonresidential: $0.284l0.47 per square foot. 006.330576,4 -2- B. The fees imposed for residential and nonresidential construction are a result of the city's fee calculation study which was designed to ensure that the impact fees imposed are rationally related to the benefit received by the applicant. C. In the event that an applicant believes the impact of the construction will be less than that set forth above, the applicant may, at his option, submit evidence to the City Commission in support of an alternative assessment. Based upon convincing and competent evidence, the City Commission may adjust the impact fee as appropriate for the particular property. SECTION 4. Severability. Ifany section, subsection, sentence, clause, phrase or portion of this Ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity ofthe remaining portion hereto. SECTION 5. Codification. It is the intention ofthe City Commission of the City that the provisions of this Ordinance shall become and be made a part of the Code of Ordinances of the City; and that sections of this Ordinance may be renumbered or relettered and the word "ordinance" may be changed to "chapter," "section," "article," or such other appropriate word or phrase in order to accomplish such intentions; and regardless of whether such inclusion in the Code is accomplished, sections of this Ordinance may be renumbered or relettered and the correction of typographical errors which do not affect the intent may be authorized by the City Manager, without need of public hearing, by filing a corrected or recodified copy of same with the City Clerk. SECTION 6. Effective Date. This Ordinance shall become effective immediately upon passage and adoption, provided, however, that the existing fees shall apply to any new buildings for which a building permit application has been submitted to the City on or prior to the effective date of this Ordinance and for which a building permit is issued within ninety (90) days from the date of adoption of this Ordinance. 006.330576.4 -3- , 2005. PASSED AND ADOPTED this _ day of ATTEST: Beth Eikenberry, City Clerk (SEAL) FOR USE AND RELIANCE ONLY BY THE CITY OF OCOEE, FLORIDA; APPROVED AS TO FORM AND LEGALITY this _ day of , 2005. FOLEY & LARDNER LLP By: City Attorney 006,330576.4 APPROVED: CITY OF OCOEE, FLORIDA S. Scott Vandergrift, Mayor ADVERTISED ,2005 AND , 2005 READ FIRST TIME ,2005 READ SECOND TIME AND ADOPTED , 2005 UNDER AGENDA ITEM NO. -4- City of Ocoee Fire Department Impact Fee Revision March 15,2005 Additional Facilities Required by New Growth · Fire Station (Northwest District) - Land Development: - Construction: - Furniture: - Design: - Pumper: - Rescue Truck: - Total: - (Training Facility Removed) $1,000,000 $1,200,000 $150,000 $120,000 $275,000 $75,000 $2,820,000 Additional Equipment Required by New Growth · Vehicles (All Districts) - 1 Pumper - 2 Rescue Trucks - 1 Tower Truck - Total: - (4 ambulances removed) $137,500 $75,000 $400,000 $612,500 2005 Fire Department Impact Fee adjustment is based on the following estimates · Vehicles · New Fire Station · Existing Debt Service $612,500 $2,820,000 $9,600,000 · Total Capital and Debt Service $13,032,500 2005 Impact Fees · Residential Dwelling Unit Calculations · $13,032,500 X .60 == $7,819,500 · Divided by 12,288 DU · Flat Fee == $636.00 (based on 2,000 sf average) · Non-Residential Square Foot Calculations · $13,032,500 X .40 == $5,213,000 · Divided by 10,982,880 additional square feet == $0.47 per square foot Current Impact Fees Vs. Proposed Impact Fees · Current · Residential: $0.182 sf · Non-Residential: $0.284 sf · Proposed · Residential: $636.00 flat fee · Non-Residential: $0.47 per square foot City ofOcoee Fire Department Impact Fee Revision March 15,2005 2005 Impact Fee Assumptions · Existing JP A Population 39,000 · 2020 JP A Estimate 78,000 · New Dwelling Units 12,288 · New Non-Residential SF 10,982,880 · Residential vs.Non-ResidentiaI60% - 40% calls for service ratio Impact Fee Calculation · The adjustment to the Impact Fees are based on the following requirements: - New Facilities - New Vehicles - Existing Debt Service Additional Facilities Required by New Growth · Fire Station (Northwest District) - Land Development: - Construction: - Furniture: - Design: - Pumper: - Rescue Truck: - Total: - (Training Facility Removed) $1,000,000 $1,200,000 $150,000 $120,000 $275,000 $75,000 $2,820,000 New Growth Factor · Additional vehicles that will be enjoyed by both existing residents and new growth will be discounted by 50%, based on the estimated JP A population growth and calls for service that will double. Additional Equipment Required by New Growth · Vehicles (All Districts) - 1 Pumper - 2 Rescue Trucks - 1 Tower Truck - Total: $137,500 $75,000 $400,000 $612,500 2005 Fire Department Impact Fee adjustment is based on the following estimates · Vehicles · New Fire Station · Existing Debt Service $612,500 $2,820,000 $9,600,000 · Total Capital and Debt Service $13,032,500 2005 Impact Fees · Residential Dwelling Unit Calculations · $13,032,500 X .60 == $7,819,500 · Divided by 12,288 DU · Flat Fee == $636.00 (based on 2,000 sf average) · Non-Residential Square Foot Calculations · $13,032,500 X .40 == $5,213,000 · Divided by 10,982,880 additional square feet == $0.47 per square foot Current Impact Fees Vs. Proposed Impact Fees · Current · Residential: $0.182 sf · Non-Residential: $0.284 sf · Proposed · Residential: $636.00 flat fee · Non-Residential: $0.47 per square foot Fee Comparison Residential · Ocoee · Winter Garden · St. Cloud · Lake Co. · Oviedo · Lake Mary · Winter Springs · Eustis · Kissimmee $636.00 $340.00 $283.00 $246.00 $236.00 $175.00 $174.41 $146.72 None Fee Comparison Non-Residential · Eustis · Oviedo · Lake Co. · Winter Garden · St. Cloud .204 to 1.634 .272 to 1.576 .822 .61 .53 .47 .276 to .326 .129 None · Ocoee · Winter Springs · Lake Mary · Kissimmee per square foot per square foot per square foot per square foot per square foot per square foot per square foot per square foot