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HomeMy WebLinkAboutOrdinance 4447 ORDINANCE NO. 4447 AN ORDINANCE AMENDING TITLE XV: UNIFIED DEVELOPMENT ORDINANCE, OF THE CODE OF FAYETTEVILLE, REGULATING COLLECTION AND DISBURSEMENT OF WATER AND WASTEWATER IMPACT FEES WHEREAS, the protection of the health, safety, and general welfare of the citizens of the City requires that the water and wastewater systems of the City be expanded and improved to meet the demands of new development; and WHEREAS, the creation of an equitable impact fee system would enable the City to impose a proportionate share of the costs of required improvements to the water and wastewater systems on those developments that create the need; and WHEREAS, the Impact Fee Study sets forth reasonable methodologies and analyses for determining the impacts of various types of development on the City's water and wastewater systems; and WHEREAS, the water and wastewater impact fees described in this Ordinance are based on the Impact Fee Study, and do not exceed the costs of acquiring additional land and the costs of acquiring or constructing additional facilities or equipment required to serve the new developments that will pay the fees; and WHEREAS, the types of improvements to the water and wastewater systems considered in the Impact Fee Study will benefit all new connections to the City's water and wastewater systems, and it is therefore appropriate to treat the City's entire utility service area as a single service area for purposes of calculating, collecting, and spending the impact fees for each type of facility; and WHEREAS, there is both a rational nexus and a rough proportionality between the development impacts created by each type of new development covered by this Ordinance and the water and wastewater impact fees that such development will be required to pay; and WHEREAS, this Ordinance creates a system by which impact fees paid by new developments will be used to expand the water and wastewater systems, so 4447 that the new development that pays each fee will receive a corresponding benefit within a reasonable period of time after the fee is paid. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1 . That Chapter 159, Fees, Unified Development Ordinance of the Code of Fayetteville, is hereby amended to add the following: §159.02 WATER AND WASTEWATER IMPACT FEES A. Applicability 1. The following provisions shall apply to all of the territory within the City's water and wastewater service areas, including areas outside the corporate city limits and within service areas located within Washington County and other incorporated cities. 2. The following types of development shall be required to pay a water and/ or wastewater impact fee: a. New development seeking a new connection to the City's water or wastewater system. b. New development seeking a new connection to the system of a wholesale customer of the City's water or wastewater system, where collection of the City's impact fee is required by the City's contract with the wholesale customer. c. Residential redevelopment involving the construction of one or more additional dwelling units. d. Nonresidential redevelopment seeking a larger capacity water meter. B. Intent 1. The intent of wastewater and water impact fees is to ensure that new development bears a proportionate share of the cost of improvements to the City's water and wastewater systems; to ensure that the proportionate share does not exceed the cost of providing water and wastewater facilities to the development that paid the fee; and to ensure that funds collected from developments 2 4447 are used to construct water and wastewater facilities that serve such developments. It is further the intent of this Ordinance to use the impact fees to implement the City's 2020 General Plan and future plan updates and to implement the City's Five Year Capital Improvements Program. 2. It is not the intent of this Ordinance to collect any money from any development in excess of the actual amount necessary to offset demands generated by that development for the water and wastewater facilities for which the fee was paid. 3. It is not the intent of this Ordinance that any monies collected for the water impact fee and the wastewater impact fee ever be commingled or ever be used for a type of facility different from that for which the fee was paid. C. Time of Collection 1. Water and wastewater impact fees for new development shall be paid prior to the issuance of a new or larger water meter, connection to the wastewater system, or issuance of a building permit; whichever comes first. 2. Development projects which have obtained building permits prior to the effective date of this ordinance shall not have to pay impact fees if the building is completed with water and sewer hook-ups installed and certificate of occupancy issued no later than six (6) months from the effective date of this ordinance. D. Fee Determination 1. Schedule of Fees. The Impact Fee Administrator shall determine the amount of the water and wastewater impact fees for residential uses based on the type or size of the dwelling unit and for nonresidential uses based on the size of the water meter using the following schedule: 3 4447 Waste- Land Use Unit Water Water Total Single-Family (average) Dwelling $308 $835 $1,143 Multi-Family (per dwelling unit) Dwelling $219 $593 $812 Nonresidential (5/8" x 3/4" meter) Meter $308 $835 $1,143 Nonresidential (1 " meter) Meter $770 $2,088 $2,858 Nonresidential (1-1/2" meter) Meter $1,540 $4,175 $5,715 Nonresidential (2" meter) Meter $2,464 $6,680 $9,144 Nonresidential (3" meter) Meter $4,928 $13,360 $18,288 Nonresidential (4" meter) Meter $717001 $20,875 $28,575 Nonresidential (6" meter) Meter $15,400 $41,750 $57,150 Nonresidential (8" meter) Meter $24,640 $66,800 $91,440 Nonresidential (10" meter) Meter $35,420 $96,025 $131,445 2. Redevelopment, Reconstruction, Change of Use. In the event of a redevelopment, reconstruction or change of use from an existing development or use, the fee shall be the difference between what the fee would be for the entire redevelopment or reconstruction project and what the fee would have been for the existing development or use. Enlargement of a single family home will not require any impact fee. 3. Mixed Use. If the proposed development includes a mix of the residential land uses and/ or nonresidential meter sizes that are listed in the impact fee schedule, the fee shall be determined by adding up all the water and wastewater impact fees that would be applicable for each residential land use type and/ or nonresidential meter size as if it was a freestanding land use type. 4. Fire Suppression / Low Pressure. It is the intent of this ordinance to base water and wastewater impact fees on the typical usage in a new building or other facility. Extinguishing of fires is not a part of typical usage; to allow adequate fire flow to sprinklers and internal hydrants at some large and at-risk properties, it may be' necessary for fire protection purposes to install a larger water meter than would be necessary to meet day-to-day needs of that facility. In addition, a larger meter may be required in areas of low water pressure than in areas of normal water pressure for the same type of use. In those cases, it is the policy of the City that the impact fee 4 4447 for water and wastewater should be based on the meter size needed by that facility for its typical usage, without regard to fire- flow or unusual pressure conditions. 5. Irrigation. Any separate water meter installed for irrigation purposes only shall not be included in the calculation of the wastewater impact fee. 6. Affordable Housing Exemption. a. Construction of single family housing funded wholly or primarily by federal Community Development Block Grants, non-profit service organizations such as Habitat for Humanity, Housing and Urban Development housing loans and similar programs designed to provide affordable, owner-occupied, single family residences to low income individuals shall be exempted from payment of impact fees pursuant to this ordinance by the Impact Fee Administrator. b. A person aggrieved by the Impact Fee Administrator's refusal to grant an Affordable Housing Exemption may appeal the denial to the Planning Commission. E. Use of Fees 1. Establishment of Accounts. An Impact Fee Fund that is distinct from the General Fund of the City is hereby created, and the impact fees received will be deposited in the following interest-bearing accounts of the Impact Fee Fund: a. Water Impact Fee Account, and b. Wastewater Impact Fee Account. 2. Water Impact Fee Accounts. The Water Impact Fee Account shall contain only those water impact fees collected pursuant to this Ordinance plus any interest which may accrue from time to time on such amounts. 3. Wastewater Impact Fee Account. The Wastewater Impact Fee Account shall contain only those wastewater impact fees collected pursuant to this Ordinance plus any interest which may accrue from time to time on such amounts. 5 10 4447 1• 4. Order of Use. Monies in each impact fee account shall be considered to be spent in the order collected, on a first-in/ first-out basis. 5. Use of Fees. The monies in each impact fee account shall be used only for the following: a. To acquire land for and/ or acquire or construct water or wastewater system improvements of the type reflected in the title of the account and as described in the Impact Fee Study as well as extension of service to new development paying an impact fee. b. To pay debt service on any portion of any current or future general obligation bond issue or revenue bond issue used to finance water or wastewater system improvements of the type reflected in the title of the account that created or will create capacity to serve new development. c. As described in subsection F, Refunds. F. Refunds 1. Any monies in the Impact Fee Fund that have not been spent or encumbered within ten (10) years after the date on which such fee was paid shall be refunded by the City to the then current owner of the land for which the fee was paid with interest since the date of payment. Interest shall be based on a five percent annual rate. 2. After an impact fee has been paid pursuant to this Ordinance, no refund of any part of such fee shall be made due to the fact that the project for which the fee was paid is later demolished, destroyed, or is altered, reconstructed, or reconfigured so as to reduce the number of dwelling units in the project, or the size of the water meter required. 3. At the time of payment of the water or wastewater impact fee under this Ordinance, the Impact Fee Administrator shall provide the applicant paying such fee with written notice of those circumstances under which refunds of such fees will be made. 6 4447 • Failure to deliver such written notice shall not invalidate any collection of any impact fee under this Ordinance. Section 2. That Chapter 151, Definitions, Unified Development Ordinance of the Code of Fayetteville, is hereby amended by inserting Exhibit " A" attached hereto and made a part hereof. Section 3. Effective Date. This Ordinance shall become effective beginning 180 days after the date and passage of approval. PASSED and APPROVED this the 17th day of December, 2002. j f f AYE APPROVED: DAN COODY, M ATTEST: By: Bather Woodruff, City Cl i < 7 4447 • EXHIBIT "A" To be inserted at Chapter 151 : Definitions, Unified Development Ordinance: Connection. (Water and Wastewater Impact Fees) The physical tie-in of a private water or wastewater service system to the City of Fayetteville's public water or wastewater system. Impact Fee Administrator. (Water and Wastewater Impact Fees) The City Planner or his designee. New Development. (Water and Wastewater Impact Fees) Construction of a new single family home and the construction or expansion of any other building or structure. The change in use of a building or structure that results in increased demand from water and wastewater facilities shall also be considered new development. Wastewater System Improvements. (Water and Wastewater Impact Fees) Capacity-enhancing improvements to the facilities for the transmission, treatment, reclamation and disposal of wastewater. Lift stations, force mains and gravity mains or excluded from the definition of wastewater system improvements. Water System Improvements. (Water and Wastewater Impact Fees) Capacity- enhancing improvements to the facilities for the supply, storage, transmission and distribution of potable water, excluding water lines less than eight inches in diameter and other lines that are the minimum size needed to serve an individual development project. 8 NAME OF FILE: Ordinance No. 4447 CROSS REFERENCE: Item # Date Document 1 12/17/02 Ord. No. 4447 2 11/01 /02 Staff Review Form w/attachments: memo to mayor/city council copy of draft ordinance 3 12/26/02 memo to Greg Boettcher 4 01/01 /03 Affidavit of Publication NOTES: 7 /1 \ l FAYETTEVILLE MECROIFIL • THE CITY OF FAYETTEVILLE, ARKANSAS df 125 W. Mountain St. Fayetteville, AR 72701 Telephone: 479-575-8267 PLANNING DIVISION CORRESPONDENCE TO: Hugh Earnest, Chief Administrative Officer CC: Tim Conklin, CP&E Services Director FROM: Dawn T. Warrick, AICP, Zoning & Development Admin. DATE: April 12, 2004 SUBJECT: Impact fee assessment for U of A projects In December 2002, the Fayetteville City Council adopted ordinance #4447 in order to "impose a proportionate share of the costs of required improvements to the water and wastewater systems on those developments that create the need." As a customer of the City of Fayetteville' s water and wastewater systems, the University of Arkansas is subject to the requirements of this ordinance. After reviewing information provided by the Water & Sewer Services Supervisor and the University of Arkansas, it has been determined that service to 27 structures (serving 2 offices, 5 single family residences and 213 multi-family units) owned by the University of Arkansas has been discontinued. Nine new structures have been added (including the 4 structures which make up the NW Quad project). The impact fee ordinance adopted by the City of Fayetteville • addresses redevelopment, reconstruction and change of use specifically. This section of the ordinance sets the fee for a project at the difference between what was to have been required for the previous use/development and the fee required for the proposed use. The ordinance does not provide for a credit if it is determined that the new project would require a lesser fee than a previous use. As a result of new developments which have been connected to the City's water and wastewater systems since the enactment of the impact fee ordinance, the University owes a total of $88,420.00 in water and wastewater impact fees to the City of Fayetteville (seepages 6 & 7). Structures accounted for in this assessment shall not be considered a part of any redevelopment or construction activity in the future for the purpose of calculating a new credit or reduced fee. Notes: I . Corroborating documentation from Don Osbum, Water and Sewer Services Superintendent regarding termination of services and new meter sets was used to generate this assessment (see attached). 2. In accordance with criteria stated in the City' s impact fee ordinance, the number of units is used to calculate residential fees, the number of structures with certain meter sizes is used to calculate non-residential fees. • 3. The facility added with no wastewater fee assessed represents an irrigation system K:Ilmpact Fee AdministrationlConespondenceluofa_assessment_memo.doc installed to serve baseball field (no connection was mato the wastewater system for this project). 4. No fees were assessed for the Sports Training Facility added which was connected to an • existing 6" master meter with no new meter installations. The master metered facility added with a 2" meter noted represents a facility served by a 6" master meter that is connected to that meter by a 2" service line and a 2" meter. The new 2" meter is a deduct meter which allows the Physical Plant to charge out the water use to a specific department. That meter does not increase the capacity of the master meter that serves the facility. The master meter did not require up-sizing in order to accommodate these new facilities. 5 . In determining number of multi-family equivalents related to residence halls and/or fraternity or sorority houses, the ratio of 2.04 persons per renter-occupied unit reported by the US Census was applied (see attached). For example, development of residence hall space to accommodate 100 students would equate to 49 multi-family units to determine the appropriate rate charged for water and wastewater impact fees. ( 100/2.04 = 49.02). The ratio will change if new numbers are generated by the US Census regarding average number of renter-occupants per dwelling for the City of Fayetteville. If fractional numbers result, units will be rounded to the nearest whole number. 6. Occupancy information for fraternity and sorority houses noted in this evaluation was obtained from the Office of Greek Life at the University of Arkansas. 7. Occupancy information for the Northwest Quad dormitory project was obtained from an article published in the Arkansas Traveler on March 10, 2004 (see attached) which stated • "There will be 592 beds in the Quad." The total number of equivalent multifamily residential units was determined to be 290 (592/2.04=290. 196). 8. One '/4" temporary meter for construction has been set for the parking deck project on Williams Ave. This meter has not been included in this assessment. The Water & Sewer Services Supervisor stated that this meter will be replaced with a permanent meter once construction is complete. The project will be assessed impact fees based upon the size meter installed to serve the completed facility. 9. Change of use for a dormitory converting from double occupancy to single occupancy rooms would not cause the need for an increased meter size. Since the University is not required to obtain building permits, nor would one be necessary for this type of change (or for the reverse situation — single to double occupancy), the only trigger for evaluation of such a change of use would be if a larger or additional water meter is required to serve the "new" use. Fees will be assessed if a new or changed use requires new or larger water meters. • K:Vmpact Fee AdminisirationlCorrespondeneeluofa_assessment_memo.doc 159.02 Water And Wastewater Impact the wastewater impact fee ever be Fees commingled or ever be used for a type of • facility different from that for which the fee was (A) Applicability. paid. (1 ) The following provisions shall apply to all of the (C) Time of Collection territory within the City's water and wastewater (1 ) Water and wastewater impact fees shall be service areas, including areas outside the paid at the time of installation of the water corporate city limits and within service areas meter serving the property or of the connection located within Washington County and other to the wastewater system, whichever comes incorporated cities after June 16, 2003. first. (2) The following types of development shall be (2) Development projects which have obtained required to pay a water and/or wastewater building permits prior to the effective date of impact fee: this ordinance shall not have to pay impact (a) New development seeking a new fees if the building is completed with water and connection to the City's water or sewer hook-ups installed and certificate of wastewater system. occupancy issued no later than six (6) months from the effective date of this ordinance. (b) New development seeking a new (D) Fee Determination connection to the system of a wholesale customer of the City's water or (1 ) Schedule of Fees. The Impact Fee wastewater system, where collection of Administrator shall determine the amount of the City's impact fee is required by the the water and wastewater impact fees for City's contract with the wholesale residential uses based on the type or size of customer. the dwelling unit and for nonresidential uses (c) Residential redevelopment involving based on the size of the water meter using the the construction of one or more additional following schedule: ' dwelling units. • Waste- (d) Nonresidential redevelopment seeking a Land Use Unit Water Waterer Total larger capacity water meter. Single-Family (average) Dwelling $308 $835 $1,143 (B) Intent Multi-Family Dwelling $219 $593 $812 (per dwelling unit) (1 ) The intent of wastewater and water impact Nonresidential Meter $308 $835 $1 ,143 fees is to ensure that new development bears (5/8" x 3/4" meter) a proportionate share of the cost of Nonresidential (1" meter) Meter $770 $2,088 $2,858 improvements to the City's water and Nonresidential wastewater systems; to ensure that the Nonre" meter) Meter $1 ,540 $4,175 $5,715 proportionate share does not exceed the cost of providing water and wastewater facilities to Nonresidential (2" meter) Meter $2,464 $6,680 $9,144 the development that paid the fee; and to ensure thatfunds collected from developments Nonresidential (3" meter) Meter $4,928 $13,360 $18,288 are used to construct water and wastewater facilities that serve such developments. It is Nonresidential (4" meter) Meter $7,700 $20,875 $28,575 further the intent of this Ordinance to use the impact fees to implement the City's 2020 Nonresidential (6" meter) Meter $15,400 $41 ,750 $57,150 General Plan and future plan updates and to implement the City's Five Year Capital Nonresidential (8" meter) Meter $24,640 $66,800 $91 ,440 Improvements Program. Nonresidential (10" meter) Meter $35,420 $96,025 $131 ,445 (2) It is not the intent of this Ordinance to collect any money from any development in excess of (2) Redevelopment, Reconstruction, Change of the actual amount necessary to offset Use. In the event of a redevelopment, demands generated by that development for reconstruction or change of use from an the water and wastewater facilities for which existing development or use, the fee shall be the fee was paid. the difference between what the fee would be • (3) It is not the intent of this Ordinance that any for the entire redevelopment reconstruction reject and what the fee wouldld have been for p monies collected for the water impact fee and the existing development or use. Enlargement K.Umpact Fee Administration)Conespondenceluofa_assessment_memo.doc