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HomeMy WebLinkAboutOrdinance 4789ORDINANCE NO. 4789 AN ORDINANCE TO AMEND TITLE XV UNIFIED DEVELOPMENT CODE OF FAYETTEVILLE, CHAPTER 159. FEES BY ENACTING § 159.04 FIRE PROTECTION SYSTEM IMPACT FEES OF THE UNIFIED DEVELOPMENT CODE WHEREAS, the protection of the health, safety, and general welfare of the citizens of Fayetteville require that the Fayetteville Fire Protection System as a Public Facility of the City be expanded and improved to meet the demands of new development; and WHEREAS, the creation of an equitable development impact fee system would enable the City to generate revenue for funding or for recouping the costs of the required Fire Protection System capacity improvements that those developments create; and WHEREAS the City has comprehensively studied the future needs of its citizens and what the City needs to do to meet those needs and adopted a Comprehensive General Plan, the 2020 Plan. The City also annually updates its Capital Improvement Projects list of future necessary capital improvements for all city services including the Fire Protection System; and WHEREAS, the City commissioned an in-depth Fire Protection System Impact Fee Study designed to study future Fire Protection System capital needs, and the fair and equitable proportion of those capacity improvement needs that new development should pay. This Impact Fee Study was completed in June, 2004, and later adopted by the City Council; 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 need for additional Fire Protection System department capacity and facilities; and WHEREAS, the Fire Protection System Impact Fees described in this Ordinance are based on the Impact Fee Study, and are designated to generate revenue for funding or for recouping expenditures by the City of Fayetteville that are reasonably attributable to the use and occupancy of the new developments that will pay the fees; and WHEREAS, the Fire Protection System Facilities constitute an interrelated system that provides service throughout Fayetteville, and it is therefore appropriate and proper to treat the entire city as a single service area; 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 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 so 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 the City Council of the City of Fayetteville, Arkansas hereby amends Chapter 159 of the Unified Development Code by enacting §159.04 Fire Protection System Impact Fees as shown on Exhibit A attached hereto. PASSED and APPROVED this 15` day of November, 2005 . ��. ``�R1VTR ''•,,� APPROVED: G� . •�Y •O . SG ., F'•�P FAYETTEVILLEO _ BY :h DA9 CO DY, Mayor ;95.9,�KANSP.jam; ATTEST: °°° y�NGTON �uuuuu` By: SONDRA SMITH, City Clerk • r EXHIBIT "A" 159.04 Fire Protection System Impact Fees (5) This Fire Protection System Impact Fee is based upon previous and current City Five (A) Applicability Year Capital Improvement Project documents approved annually by City Council Resolution ( 1 ) The following provisions shall apply and level of service standards adopted within the to all of the territory within the City's corporate Fire Impact Fee Study of June 2004 and city limits, and any area near the corporate limits elsewhere by the City Council. Pages 21 if specifically agreed by the owner. through 26 of the Impact Fee Study are incorporated herein as Exhibit I to explain the (2) The following types of development methodology and formulas for the Fire shall be required to pay a Fire Protection System Protection System Impact Fees, the levels of Impact Fee: service and increases in capacity needed for the Fire Protection System.. (a) New development within one of the categories of development in Table A. (6) It is not the intent of this section that any monies collected for the Fire Protection (b) Redevelopment involving the System Impact Fee ever be commingled or ever construction of one or more additional units be used for a type of facility different from that within one of the categories of development in for which the fee was paid. No impact fee Table A. revenue may be used for operational expenses. (B) Intent (C) Time of Collection ( l) The intent of the Fire Protection This impact fee shall be paid to the City System Impact Fee is to offset costs to the City by the owner of the property before a certificate of Fayetteville taxpayers that are reasonably of occupancy is issued for the new development attributable to providing necessary Fire or at the closing on the property by the Protection System facilities to new development. purchasing owner. (2) This impact fee charged to new (D) Fee Determination development is to generate revenue for funding or recouping expenditures of the City of (1) Fire Protection System Impact Fee Fayetteville that are reasonably attributable to Table. The Impact Fee Administrator shall the use and occupancy of the new development. determine the correct amount of the Fire Protection System Impact Fee by use of Table A (3) This impact fee is to be collected and information about the type and size of the and expended only for the planning, design or new development. construction of new Fire Protection System facilities or of capital improvements to existing Fire Protection System public facilities that expand their capacity or for the recoupment of prior capital improvements to such public facilities that created capacity available to serve new development. (4) The intent of this impact fee requirement is to ensure that new development bears a proportionate share of a the costs of capacity improvements to the Fire Protection System facilities, but also to ensure that this proportional share does not exceed the costs of the demand for additional capacity in public facilities that is reasonably attributable to providing these facilities to the use and occupancy of that new development. • EXHIBIT "A" 0 TABLE A individuals shall be exempted from payment of FIRE PROTECTION SYSTEM impact fees pursuant to this ordinance by the IMPACT FEES Impact Fee Administrator. Impact (b) Appeal. A person aggrieved by the Land Use Unit Fee Impact Fee Administrator's refusal to grant an Single-Family Dwelling $208 Affordable Housing Exemption may appeal the Detached denial to the Planning Commission. Multi-Family Dwelling $ 150 (E) Use of Fees. Mobile Home Park Pad $222 (1) Establishment of Accounts. A Fire Hotel/Motel Room $323 Protection System Impact Fee Fund that is Retail/Commercial 1000 sq. ft. $457 distinct from the General Fund of the City is hereby created, and the impact fees received will Office/Institutional 1000 sq. ft. $293 be deposited in this Fire Protection System Impact Fee Account. ENursing 1000 sq. ft. $126 (2) Impact Fee Account. The Fire Protection 1000 sq. ft. $ 102 System Impact Fee Account shall contain only 1000 s . ft. $ 184 those Fire Protection System impact fees q collected pursuant to this Ordinance plus any 1000 sq. ft. $117 interest which may accrue from time to time on such accounts. se 1000 sq. ft. $ 22 (F) Order of Use. Monies in the Fire Protection System Impact Fee account shall be considered (2) Redevelopment, Reconstruction, to be spent in the order collected, on a first- Change of Use. In the event of a redevelopment, in/first-out basis. reconstruction or change of use from an existing development or use, the fee shall be the (G) Use of Fees. The funds in the Fire difference between what the fee would be for the Protection System Impact Fee Account shall be entire redevelopment or reconstruction project used only for the following: and what the fee would have been for the existing development or use. Enlargement of a ( 1 ) The use of the Fire Protection single family home will not require any impact System Impact Fees shall be to offset costs to the fee. City of Fayetteville taxpayers that are reasonably attributable to providing necessary Fire (3) Mixed Use. If the proposed development Protection System facilities to new development. includes a mix of the residential, commercial, industrial or other uses listed in the impact fee (2) This impact fee charged to new schedule, the fee shall be determined by adding development shall generate revenue for funding up all the Fire Protection System impact fees that or recouping expenditures of the City of would be applicable for each use type as if it was Fayetteville that are reasonably attributable to a freestanding land use type. the use and occupancy of the new development. (4) Affordable Housing Exemption. (3) This impact fee shall be collected and expended only for the planning, design or (a) Single family housing. Construction construction of new Fire Protection System of single family housing funded wholly or facilities or of capital improvements to primarily by federal Community Development existing Fire Protection System public facilities Block Grants, non-profit service organizations that expand their capacity or for the recoupment such as Habitat for Humanity, Housing and of prior capital improvements to such public Urban Development housing loans and similar facilities that created capacity available to serve programs designed to provide affordable, owner- new development. occupied, single family residences to low income • EXHIBIT "A" (4) No monies collected for the Fire (4) The refund shall be made on a pro Protection System Impact Fee shall ever be rata basis, and shall be paid in full no later than commingled or ever be used for a type of facility ninety (90) days after the date certain upon different from that for which the fee was paid. which the refund becomes due. (5) No impact fee revenue shall be used (5) At the time of payment of the Fire for operational expenses. Protection System Impact Fee under this Ordinance, the Fire Protection System Impact (6) All Fire Protection Impact Fee Fee Administrator shall provide the applicant revenue shall be spent in accordance with paying such fee with written notice of those Subsection (B) Intent. circumstances under which refunds of such fees will be made. Failure to deliver such written (H) Refunds. notice shall not invalidate any collection of any impact fee under this ordinance. (1) The City of Fayetteville shall refund the portion of collected development impact fees, including the accrued interest that has not been expended seven (7) years from the date the fees were paid. Interest shall be based on a four percent (4%) annual rate. (2) A refund shall be paid to the present owner of the property that was the subject of new development and against which the fee was assessed and collected. (3) Notice of the right to a refund, including the amount of the refund and the procedure for applying for and receiving the refund, shall be sent or served in writing to the present owners of the property no later than thirty (30) days after the date which the refund becomes due. The sending by regular mail of the notices to all present owners of record shall be sufficient to satisfy the requirement of notice. EXHIBIT 1 FIRE PROTECTION The Fire Department is Fayetteville's "agency of first response" to resolve fire, emergency Figure 4 medical service (EMS) and emergency rescue CURRENT FIRE STATION LOCATIONS incidents and to address potential disasters.. The goal of the Fayetteville Fire Department is to reach 90 percent of emergency calls within a i total response time of six minutes. The City currently operates six fire stations which allows first due companies to reach their goal arrival ' time only 79% of the time. A seventh fire station is currently being built. '.� - t n ` Service Area While fire/rescue units may be dispatched from a station primarily to calls within that station's primary response . area, these units may also respond to calls in neighboring response areas if needed. For example, Engine 1 missed 9.7 percent of calls in its primary response area in the Fust three quarters of 2003 because it was already committed manotheremergency- Consequently, fire protection facilities constitute an interrelated system that provides service throughout the City's jurisdiction, which is appropriately defined as a single service area. Service Unit One of the most common methodologies used in calculating fire protection impact fees is the "calls-for-service" approach. This approach uses historical data on emergency calls-for-service by land use to make the connection between land use type and the demand for fire-fighting facilities- The City of Fayetteville Fire Department maintains call-for-service data by land use. The available data on calls-for-service by land use will be used for the purpose of allocating costs between residential and nonresidential development. In 2003, the . Fayetteville Fire Department received a total of 5,517 calls-for-service. Table 24 below shows the distribution of calls-for-service by residential/nonresidential land use type for 2003. Nonresidential land uses account for just over half of all fire calls-for-service. Table 24 FIRE CALLS-FOR-SERVICE, 2003 Land Use Calls Percent Residential 2,526 45.8% Nonresidential 2,991 542 Total 5,517 100.0% Source: Fayetteville Fire Department, May 2004 (excludes road-related calls). duncan associates Fayetteville\/mpact Fee Study. Roads , Fire b Police June 22, 2004, Page 21 Residential and nonresidential fire protection costs are then allocated among various land uses on the basis of "functional population." Functional population, finther described in Appendix 13, represents the number of full-time equivalent people at the site of a land use. It is reasonable to assume that the demand for fire protection facilities is at least roughly proportional to the presence of people. Cost per Service Unit Fire protection impact fees are designed to charge new development the cost of providing the same level of service that is provided to existing development. The existing level of service for fire protection facilities is based on the replacement cost of existing facilities. Replacement costs are estimated based on the costs of Fire.Station Seven which is scheduled for completion later this year. The current cost for station construction is estimated to be $192.33 per square foot and land is estimated to cost $72,772 per acre, as shown in Table 25. Table 25 FIRE COSTS PER SQUARE FOOT AND ACRE Construction Land Cost $1,474,758 $145,543 Sq. Fl./Acres 7,668 2 Cost - r Sq. FL/ACre $192.33 $72,772 Source: Costs, building square feet and site acres for Fire Station 7 from Fayetteville Fire Department, May 2004. Table 26 below shows the construction and land replacement costs for the Fire Department's six existing operating facilities. The replacement cost for all current facilities is $6,718,074. Table 26 FIRE FACILITY REPLACEMENT COSTS Building Land Construction Land Total Station Address . h. acres Cost - Cost Cost Central 303West Center 15,048 0.50 $2,894, 126 $36,386 $2,930,512 2 708 North Garland 2,451 025 $471,392 $18,193 $489,585 -3 " 385 Earnest Lancaster Dr n/a n/a n/a n/a $0 4 3385. Plainview 5,795 1.50 $1, 114,531 $109, 157 $1,223,688 5 833 Crossover 2,720 1.00 $523, 128 $72,772 $595,900 6 900 Hollywood 5,795 5.00 $1, 114,531 $363,858L. $1,478,389 Total 31 809 8.25 117 708 $600,36 718 074 Source: Building square feet and acres from Fayetteville Fire Department, May 2004: construction and land replacement costs based on cost per square foot and per acre from Table 25. In addition to the fire stations, the Department has capital equipmenteligible for impact fee funding. The total replacement cost of the existing fire stations and fire-fighting apparatus is $10.7 million, as summarized in Table 27 below. duncan associates Fayetteville\/mpact Fee Study: Roads , Fire b Po/ice June 22, 2004, Page 22 Table 27 FIRE FACILITY AND EQUIPMENT COST Cost Component Total Cost Fire Facility Replacement Cost $6,718,074 Fire Engines (9) $2,978,670 Ladder Truck (1 ) $531,445 Machinery/Equipment $240,891 Misc. Vehicles (2) $108,875 Telecommunications Equipment $52,878 Office Equipment $15,969 Lab Equipment $11,397 Computer $5,621 Total Replacement Cost $10,663,820 Source: Fire facility replacement cost from Table 26; equipment costs are original costs from the Fayetteville Fire Department fixed asset listing. May 2004. The fire protection impact fee is based on the replacement value of existing capital facilities, the distribution of calls-for-service between residential and nonresidential development, and the existing functional population associated with existing residential and nonresidential development. The total replacement value of existing fire protection facilities is first allocated between residential and nonresidential development based on the percentage of calls to each land use. Then the costs attributable to residential and nonresidential development are divided by -ff- M the fimcuonal population of each land use category to detemtine the . costs per functional population. The resulting costs per functional population represent the existing level of service of fire protection facilities in Fayetteville. The cost to provide the same level of service to new residential development is $167.61 per functional population, and the cost to provide the same level of service to new nonresidential development is $133.87 per functional population, as shown in Table 28. Table 28 FIRE REPLACEMENT COST PER SERVICE UNIT Residential Nonresidential Fire Facility and Equipment Replacement Cost $10,663,820 $10,663,820 Percentage of Calls-for-Service 45.8% 54 20/0 Proportionate Share of Replacement Cost $4,884,030 $5,779,790 Functional Population 29 139 43 176 Fire Protection Cost Per Functional Population $167.61 $133.67 Source: Fire replacement cost from Table 27; percentage of calls-lot-service for residential and nonresidential from Table 24; residential and nonresidential functional population from Table 48. dunean associates Fayetteville\/rripact Fee Study: Roads , Fire 8 Police June 22, 2004, Page 23 Net Cost per Service Unit In the calculation of the impact of new development on infrastructure costs, credit should be given for non-local funding that will be generated by new development and used to pay for capacity-related capital improvements. Credit should also be provided for taxes that will be paid by new development and used to retire outstanding debt for past fire facility improvements. According to the Fayetteville Fire Department, there is no outstanding debt for past fire protection capital improvements or capital equipment. Consequently, no debt service credit is applicable. During the last five years, the Department has received one grant for capital equipment. In 2002, the Department received a $ 120,000 matching grant Cor personal protective equipment from the Assistance to Firefighters program. Assuming that the grant funding received over the last five years for impact fee-eligible fire protection capital improvements will continue to increase proportional to the amount of development in Fayetteville, the City will receive the present value equivalent of $4 per functional population over the 20-year fife of most capital improvements, and shown in Table 29. Table 29 FIRE GRANT FUNDING CREDIT PER SERVICE UNIT Annual Eligible Grant Funding, FY 2000-2004 $24,000 Total Functional Population 72 76 Annual Grant Funding Credit per Functional Pop. $0,33 Net Present Value Factor (20 years at 4.96%) 12.50 Grant Funding Credit Per Functional Pop. $4.13 Source. Annual grant funding is one fifth of five-year grant funding of $120,000, per Fayetteville Fire Department, May 2004; total functional population from Table 48; discount rate for present value factor is average interest rate on 200.yearAAA - municipal bonds as - of May 31, 2004 according 'to bloomberg.com, Imsbonds.com, and bondsonline.com ' Deducting the credits for grants from the capital cost yields the net cost per functional population of residential and nonresidential development, as summarized in Table 30. Table 30 FIRE NET COST PER SERVICE UNIT Residential Nonresidential [File Capital Cost per Functional Population $167.61 $133.87 Fire Grant Fundi Credit r Functional Population .13 $4..13 . Fire Net Cost Der Functional Population $163.48 $129.74 Source: Costs per functional population from Table 28: grant credit from Table 29. duncan associates Fayetteville\/mpac[ Fee Study: Roads , Fire & Po/ice June 22, 2004, Page 24 Potential Fees The maximum fire impact fees that may be charged by the. City of Fayetteville based on the data, assumptions and methodology used in this report are presented in the net cost schedule in Table 31 below. Table 31 FIRE NET COST SCHEDULE Func. Pop./ Net Cost/ Net Cost/ Land Use Unit Unit Func. Pop. Unit Single-Family Detached Dwelling 127 $163.48 $208 Multi-Family Dwelling 0.92 $163.48 $150 Mobile Home Park Pad 1.36 $163.48 $222 Hotel/Motel Room 2.49 $129.74 $323 Retail/Commercial _ 1000 sq. ft. 3.52 $129.74 $457 Office/Institutional 1000 sq. ft. 2.26 $129.74 $293 Nursing Home 1000 sq. ft. 0.97 $129.74 $126 Church 1000 sq. ft. 0.79 $129.74 $102 Industrial 1000 sq. ft. 1.42 $129.74 $184 Warehouse 1000 sq. ft. 0.90 $129.74 $117 Mini-Warehouse 1000 sq. h- 0. 17 $129.74 $22 Source: Functional population per unit from Tables 46 and 47; net costs per functional population Irom Table 32 shows that if adopted at the maximum level, the fire impact fees could generate $383,000 annually, based on recent building trends. Table 32 POTENTIAL FIRE IMPACT FEE REVENUE Annual New Func. Pop./ Annual New Net Cost/ Annual Land Use Tye Units Unit Func. Pop. Func. Pop, Revenue Single-Family Detached 347 1 .27 441 $163.48 $72,000 Multi-Family 6910.92 636 $163.48 $104,000 Subtotal, Residential - 11,038 1,077 $176000 Nonresidential n/a n/a . 1,596 $129.74 $207,000 Total $383,000 Source: Annual new units is average number of units permitted by the City since 2000 from Table 6; residential functional populatioNunit from Table 46;annual new nonresidential total functional population estimated by multiplying new residential functional population by the ratio of total residential functional population to total nonresidential functional population Irom Table 48: net cost per functional population hom Table 30. duncanjassociates Fayetteville\impact Fee Study: Roads , Fire ti Police June 22, 2004, Page 25 ' The City's Capital Improvements Plan includes a list of unfunded fire protection projects that are needed over the next five years, as shown in Table 33. Additional analysis will be required to determine the portion of the $15.8 million join) public safety command center that is eligible for fire impact fee funding. First, it will be necessary to determine the share of overall project cost that is attributable to fire facilities. Second, it will be necessary to determine the extent to which the fire facilities increase the capacity to provide service to new development, rather than simply replace existing facilities. A similar analysis will be required to determine the share of the $1 .4 million cost for the relocation of Fire Station #5 that is eligible for impact fee funding. Even using conservative assumptions, however, it is clear that there are sufficient unfunded capital needs for the anticipated fire impact fee revenues. Table 33 FIRE CAPITAL IMPROVEMENT NEEDS, 2004-2008 Unfunded Improvements Cost Estimate Ford Expedition (expansion, not replacement $30,000 Joint Public Safety Command Center* $1,500,000 Fire Station #8-New Construction $1,500,000 Fire Station #5 Relocation' $700,000 Total Eligible Unfunded Needs, 2004-2008 - $3,730,000 Annual Eligible Unfunded Needs, 2004-2008 $746,000 estimated portion of project that would be eligible, additional analysis required to determine eligible amount Source: Unfunded needs from City of Fayetteville, 2004-2008 Capital, Improvements Program, December 2003. dunean associates - Fayetteville\Impact Fee 3tudy: Roads , Fire t1.Po/ice June 22, 2004, Page 26 ALDERMAN AGENDA REQUEST FAM A/ 799 FOR: COUNCIL MEETING OF FROM: ALDERMAN LIONELD JORDAN and ALDERMAN DON MARR ORDINANCE OR RESOLUTION TITLE AND SUBJECT: An Ordinance To Amend Title XV Unified Development Code Of Fayetteville, Chapter 159. Fees By Enacting §159.04 Fire Protection System Impact Fees Of The Unified Development Code APP VED FOR AGENDA: ONELD ANatp5 e AI rman rN MARR Date Iderman 9 - , 3 - os illiams Date City Attorney (as to form) l%�/oS pti- -� �� �eu-el,i�/✓ ORDINANCE NO. AN ORDINANCE TO AMEND TITLE XV UNIFIED DEVELOPMENT CODE OF FAYETTEVILLE, CHAPTER 159. FEES BY ENACTING §159.04 FIRE PROTECTION SYSTEM IMPACT FEES OF THE UNIFIED DEVELOPMENT CODE WHEREAS, the protection of the health, safety, and general welfare of the citizens of Fayetteville require that the Fayetteville Fire Protection System as a Public Facility of the City be expanded and improved to meet the demands of new development; and WHEREAS, the creation of an equitable development impact fee system would enable the City to generate revenue for funding or for recouping the costs of the required Fire Protection System capacity improvements that those developments create; and WHEREAS the City has comprehensively studied the future needs of its citizens and what the City needs to do to meet those needs and adopted a Comprehensive General Plan, the 2020 Plan. The City also annually updates its Capital Improvement Projects list of future necessary capital improvements for all city services including the Fire Protection System; and WHEREAS, the City commissioned an in-depth Fire Protection System Impact Fee Study designed to study future Fire Protection System capital needs, and the fair and equitable proportion of those capacity improvement needs that new development should pay. This Impact Fee Study was completed in June, 2004, and later adopted by the City Council; 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 need for additional Fire Protection System department capacity and facilities; and WHEREAS, the Fire Protection System Impact Fees described in this Ordinance are based on the Impact Fee Study, and are designated to generate revenue for funding or for recouping expenditures by the City of Fayetteville that are reasonably attributable to the use and occupancy of the new developments that will pay the fees; and WHEREAS, the Fire Protection System Facilities constitute an interrelated system that provides service throughout Fayetteville, and it is therefore appropriate and proper to treat the entire city as a single service area; 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 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 so 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 the City Council of the City of Fayetteville, Arkansas hereby amends Chapter 159 of the Unified Development Code by enacting §159.04 Fire Protection System Impact Fees as shown on Exhibit A attached hereto. PASSED and APPROVED this 20'h day of September, 2005. APPROVED: By: DAN COODY, Mayor ATTEST: By: SONDRA SMITH, City Clerk EXHIBIT "A" l.1 159.03 Fire Protection System Impact Fees (A) Applicability (1) The following provisions shall apply to all of the territory within the City's corporate city limits, and any area near the corporate limits if specifically agreed by the owner. (2) The following types of development shall be required to pay a Fire Protection System Impact Fee: (a) New development within one of the categories of development in Table A. (b) Redevelopment involving the construction of one or more additional units within one of the categories of development in Table A. (B) Intent (1) The intent of the Fire Protection System Impact Fee is to offset costs to the City of Fayetteville taxpayers that are reasonably attributable to providing necessary Fire Protection System facilities to new development. (2) This impact fee charged to new development is to generate revenue for funding or recouping expenditures of the City of Fayetteville that are reasonably attributable to the use and occupancy of the new development. (3) This impact fee is to be collected and expended only for the planning, design or construction of new Fire Protection System facilities or of capital improvements to existing Fire Protection System public facilities that expand their capacity or for the recoupment of prior capital improvements to such public facilities that created capacity available to serve new development. (4) The intent of this impact fee requirement is to ensure that new development bears a proportionate share of a the costs of capacity improvements to the Fire Protection System facilities, but also to ensure that this proportional share does not exceed the costs of the demand for additional capacity in public facilities that is reasonably attributable to providing these facilities to the use and occupancy of that new development. (5) This Fire Protection System Impact Fee is based upon previous and current City Five Year Capital Improvement Project documents approved annually by City Council Resolution and level of service standards adopted within the Fire Impact Fee Study of June 2004 and elsewhere by the City Council. Pages 21 through 26 of the Impact Fee Study are incorporated herein as Exhibit I to explain the methodology and formulas for the Fire Protection System Impact Fees, the levels of service and increases in capacity needed for the Fire Protection System.. (6) It is not the intent of this section that any monies collected for the Fire Protection System Impact Fee ever be commingled or ever be used for a type of facility different from that for which the fee was paid. No impact fee revenue may be used for operational expenses. (C) Time of Collection This impact fee shall be paid to the City by the owner of the property before a certificate of occupancy is issued for the new development or at the closing on the property by the purchasing owner. (D) Fee Determination (I) Fire Protection System Impact Fee Table. The Impact Fee Administrator shall determine the correct amount of the Fire Protection System Impact Fee by use of Table A and information about the type and size of the new development. of EXHIBIT "A" TABLE A FIRE PROTECTION SYSTEM IMPACT FEES Impact Land Use Unit Fee Single -Family Detached Dwelling $208 Multi -Family Dwelling $150 Mobile Home Park Pad $222 Hotel/Motel Room $323 Retail/Commercial 1000 sq. ft. $457 Office/Institutional 1000 sq. ft. $293 Nursing Home 1000 sq. ft. $126 Church 1000 sq. ft. $102 Industrial 1000 sq. ft. $184 Warehouse 1000 sq. ft. $117 Mini -Warehouse 1000 sq. ft. $ 22 (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, commercial, industrial or other uses listed in the impact fee schedule, the fee shall be determined by adding up all the Fire Protection System impact fees that would be applicable for each use type as if it was a freestanding land use type. (4) Affordable Housing Exemption. (a) Single family housing. 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) Appeal 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. (I) Establishment of Accounts. A Fire Protection System 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 this Fire Protection System Impact Fee Account. (2) Impact Fee Account. The Fire Protection System Impact Fee Account shall contain only those Fire Protection System impact fees collected pursuant to this Ordinance plus any interest which may accrue from time to time on such accounts. (F) Order of Use. Monies in the Fire Protection System Impact Fee account shall be considered to be spent in the order collected, on a first- in/first-out basis. (G) Use of Fees. The funds in the Fire Protection System Impact Fee Account shall be used only for the following: (1) The use of the Fire Protection System Impact Fees shall be to offset costs to the City of Fayetteville taxpayers that are reasonably attributable to providing necessary Fire Protection System facilities to new development. (2) This impact fee charged to new development shall generate revenue for funding or recouping expenditures of the City of Fayetteville that are reasonably attributable to the use and occupancy of the new development. (3) This impact fee shall be collected and expended only for the planning, design or construction of new Fire Protection System facilities or of capital improvements to existing Fire Protection System public facilities that expand their capacity or for the recoupment of prior capital improvements to such public facilities that created capacity available to serve new development. 0 0 EXHIBIT "A" (4) No monies collected for the Fire Protection System Impact Fee shall ever be commingled or ever be used for a type of facility different from that for which the fee was paid. (5) No impact fee revenue shall be used for operational expenses. (6) All Fire Protection Impact Fee revenue shall be spent in accordance with Subsection (B) Intent. (H) Refunds. (1) The City of Fayetteville shall refund the portion of collected development impact fees, including the accrued interest that has not been expended seven (7) years from the date the fees were paid. Interest shall be based on a four percent (4%) annual rate. (2) A refund shall be paid to the present owner of the property that was the subject of new development and against which the fee was assessed and collected. (3) Notice of the right to a refund, including the amount of the refund and the procedure for applying for and receiving the refund, shall be sent or served in writing to the present owners of the property no later than thirty (30) days after the date which the refund becomes due. The sending by regular mail of the notices to all present owners of record shall be sufficient to satisfy the requirement of notice. (4) The refund shall be made on a pro rata basis, and shall be paid in full no later than ninety (90) days after the date certain upon which the refund becomes due. (5) At the time of payment of the Fire Protection System Impact Fee under this Ordinance, the Fire Protection System 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. Failure to deliver such written notice shall not invalidate any collection of any impact fee under this ordinance. EXHIBIT 0 FIRE PROTECTION The Fire Department is Fayetteville's "agency of first response" to resolve - fire, emergency medical service (EMS) and emergency. rescue incidents and, to address potential disasters.. The goal of the Fayetteville Fire Department is to reach 90 percent of emergency calls within a total response time of six minutes_ The City currently operates'six fire stations which allows first due companies to reach their goal arrival time only 79% of the time. A seventh fire station is currently being built. Service Area While fire/rescue units may be dispatched from a station primarily to calls within that station's primary response. area, these units may also respond to calls in neighboring response areas if needed. For example, Engine I missed 9.7 percent of calls in its primary response area in the first three quarters of 2003 because it was already committed to another emergency- Consequently, fire protection facilities constitute an interrelated system that provides service throughout the City's jurisdiction, which is appropriately defined as a single service area. a CURRENT FIRE Figure 4 STATION LOCATIONS Service Unit One of the most common methodologies used in calculating fire protection impact fees is the "calls -for -service" approach. Ibis approach uses historical data on emergency calls -for -service by land use to make the connection between land use type and the demand for fire -fighting facilities: The City of Fayetteville Fire Department maintains call -for -service data by land use. The available data on calls -for -service by land use will be used for the purpose of allocating costs between residential and nonresidential development. In 2003, the. Fayetteville Fire Department received a total of 5,517 calls -for -service. Table 24 below shows the distribution of calls -for -service by residential/nonresidential land use type for 2003_ Nonresidential land uses account for just over half of all fire calls -for -service. Table 24 FIRE CALLS -FOR -SERVICE, 2003 Land Use Calls Percent Residential 2,526 Nonresidential 2,991 a4:201o Total '5 517 1 Source: Fayenevilte Fire Department. May 2004 (excludes road -related calls). associates Residential and nonresidential fire protection costs are then allocated among various land uses on the basis of "functional population." Functional population, further described in Appendix B, represents the number of full-time equivalent people at the site of a land use. It is reasonable to assume that the demand for fire protection facilities is at least roughly proportional to the presence of people. Cost per Service Unit Fire protection impact fees are designed to charge new development the cost of providing the same level of service that is provided to existing development. The existing level of service for fire protection facilities is based on the replacement cost of existing facilities. Replacement costs are estimated based on the costs of Fire.Station Seven which is scheduled for completion later this year The current cost for station construction is estimated to be $19233 per square foot and land is estimated to cost $72,772 per acre, as shown in Table 25" Table 25 FIRE COSTS PER SQUARE FOOT AND ACRE Construction Land Cost $1,474,758 $145,543 Sq. FtJAcres 7,668 2 Cost per Sq. FL/Acre $192.33 $72,772 Source., Costs, building square feet and site acres for Fire Station 7 from Fayetteville Fire Department, May 2004. Table 26 below shows the construction and land replacement costs for the Fire Department's six existing operating facilities. The replacement cost for all current facilities is $6,718,074. Table 26 FIRE FACILITY. REPLACEMENT COSTS Building Land Construction Land Central 303West 2 708 North Garland 3 385 Earnest Lancaster Dr 4 3385. Plainview 5 833 Crossover 6 900 Hollvwnnd Total 15,048 0.50 $2;894,126 $36,386 $2,930,512 2,451- 025. $471,392 $18,193 $989,585 n/a "/a n/a n/a $0 5,795 1.50 $1,114,531 $109,157 $1,223,688 2,720 100 $523,128 $72,772 $595,900 -- wooboa .0/1004 Source: Building square Feet and acres from Fayetteville Fire Department May 2004; construction and land replacement costs based on cost per square foot and per acre from Table 25: In addition to the fire stations, the Department has capital equipment.eligible for impact fee funding. The total replacement cost of the existing fire stations and fire -fighting apparatus is $10.7 million, as summarized in Table 27 below_ duncan Table 27 FIRE FACILITY AND EQUIPMENT COST Cost Component Total Cost Fire Facility Replacement Cost . $6,718,074 Fire Engines (9) $2,978,670 Ladder Truck (1) $531,445 Machinery/Equipment $240,891 Misc. Vehicles (2) - $108,875 Telecommunications Equipment $52,878 Office Equipment $15,969 Lab Equipment $11,397 Source: Fire facility replacement cost from Table 26; equipment costs are original costs from the Fayetteville Fire Department f aed asset listing. May 2004. The fire protection impact fee is based on the replacement value of existing capital facilities, the distribution of calls -for -service between residential and nonresidential development, and the existing functional population associated with existing residential and nonresidential development. The total replacement value of existing fire protection facilities.is allocated between residential and nonresidential development based on the percentage of calls to each land use. Then the costs attributable to residential and nonresidential development are divided by the functional population of each land use category to determine the costs per functional population. The resulting costs per functional population represent the existinglevel ofservice of fire protection facilities in Fayetteville. The cost to provide the same level of service to new residential development is $167.61 per functional population, and the cost to provide the same level of service to new nonresidential development is $133.87 per functional population, as shown in Table 28. Table 28 FIRE REPLACEMENT COST PER SERVICE UNIT Fire Facility and Equipment Replacement Cost $10,663,820 $10,663,820 Proportionate Share of Replacement Cost $4,884,030 $5,779,790 ovuice. rive ropracemem cost .born fable 27percentage of calls -for -service for residential and nonresidential from Iable24; residential and nonresidential functional population from Table 48. associates Net Cost per Service Unit In the calculation of the impact of new development on infrastructure costs, credit should be given for non -local funding that will be generated by new development and used to pay for capacity -related capital improvements. Credit should also be provided for taxes that will be paid by new development and used to retire outstanding debt for past fire facility improvements. According to the Fayetteville Fire Department, there is no outstanding debt for past fire protection capital improvements or capital equipment. Consequently, no debt service credit is applicable. During the last five years, the Department has received one grant for capital equipment.. In 2002, the Department received a $120,000 matching grant for personal protective equipment from theAssistance to Firefighters. program. Assuming that the grant funding received over the last five years for impact fee -eligible fire protection capital improvements will continue to increase proportional to the amount of development in Fayetteville, the City will receive the present value equivalent of $4 per functional population over the 20 -year life of most capital improvements, and shown in Table 29. Table 29 FIRE GRANT FUNDING CREDIT PER SERVICE UNIT Annual Eligible Grant Funding, FY 2000-2004 . $24,000 Annual Grant Funding Credit per Functional Pop. - $0.33 Source: Annual grant funding is one -fifth of five-year grant funding of $120,000, per FayettevilleFire Department, May2004; total functional pops tionfromTable 48; discount rate for present value factor is average interest rate on 20-yearAAA municipal bonds as , of May 31, 2004 according to bloomberg:com. imsbonds.com, and bondsonline.com Deducting the credits for grants from the capital cost yields the net cost per functional population of residential and nonresidential development, as summarized in Table 30. Table 30 - FIRE -NET COST PER SERVICE UNIT Residential Nonresidential Fire Capital Cost per Functional Population $167.61 $133.87 Fire Grant Iundinq Credit per Functional Po lation $4.13 $4.13 Fire Net Cost per Functional Population $163.48 $129.74 ��• �V«� per rur lcoorwi population train l able 28; grant credit from Table 29_ duncan I associates HS Potential Fees The maximum fire impact fees that may he charged by the Cityof Fayetteville based on the data, assumptions and methodology used in this report are presented in the net cost schedule in Table 31 below. Table 31 FIRE NET COST SCHEDULE Func- Pop./ Net Cost/ Net Cost/ Land Use Unit Unit Func. Pop. Unit Single -Family Detached Dwelling 127 $163.48 $208 Multi -Family Dwelling 0.92 $163.48 $150 Mobile Home Park _ Pad 1.36 $163.48 $222 Hotel/Motel . Room 2.49 $129.74 $323 RetaillCommercial 1000 sq. ft. 3.52 $129.74 $457 Officefnstitutional 1000 sq. ft. 2.26 $129.74 $293 Nursing Home 1000 sq. 1t. 0.97 $129.74 $126 Church 1000 sq. ft. 0.79 $129.74 $102 Industrial 1000 sq. ft. 1.42 $129.74 $184 Warehouse . 1000 sq.ft. 0.90 $129.74 $117 Mini -Warehouse 1000 sq. ft. 0.17 $129.74 $22 Source: Functional population per unit from Tables 46 and 47; net costs per lunctional population from Table 32 shows that if adopted at the maximum level, the fire impact fees could generate $383,000 annually, based on recent building trends. Land Use Type Single -Family Detached Subtotal, Residential Table 32 POTENTIAL FIRE IMPACT FEE REVENUE Annual New Func. Pop./ Annual New Net Cost/ Annual 347 1 •1,038 441 $163.48 $72,000 1,077 $176,060 Total . $383000 Source: Annual new units is average number of units permitted by the City since 2000 from Table 6; residential functional .populationtunil from Table 46;annual new nonresidential total functional population estimated by muhiptying new residential functional population by the ratio of total residential functional population to total nonresidential functional population from Table 48; net cost per functional population from Table 30. The City's Capital Improvements Plan includes a list of unfunded fire protection projects that are needed over the next five years, as shown in Table 33. Additional analysis will be required to determine the portion of the 115.8 million joint public safety command center that is eligible for fire impact fee funding- First, it will be necessary to determine the share of overall project cost that is attributable to fire facilities. Second, it will be necessary to determine the extent to which the fire facilities increase the capacity to provide service to new development, rather than simply replace existing facilities. A similar analysis will be required to determine the share of the $1.4 million cost for the relocation of Fire Station #5 that is eligible for impact fee funding. Even using conservative assumptions, however, it is clear that there are sufficient unfunded capital needs for the anticipated fire impact fee revenues. Table 33 FIRE CAPITAL IMPROVEMENT NEEDS, 2004-2008 Unfunded Improvements Cost Estimate Ford Expedition (expansion, not replacement $30,000 Joint Public Safety Command Center$7,500,000 Fire Station #8 -New Construction $1,500,000 Fire Station #5 Relocation' $700000 Total Eligible Unfunded Needs. 2004-2008 $3,730,000 ' estimated portion of project that would be eligible, additional analysis required to determine eligible amount Source: Unfunded needs from City of Fayetteville. 2004-2008 Capital Improvements Program. December 2003. duncan �oiiee C ��l•e FAYETTEVILLE THE CITY OF FAYETTEVILLE, ARKANSAS /J /j NI. KIT WILLIAMS, CITY ATTORNEY DAVID WHITAKER, ASST. CITY ATTORNEY DEPARTMENTAL CORRESPONDENCE TO: Dan Coody, Mayor City Council FROM: Kit Williams, City Attorney DATE: October 11, 2005 RE: Police and Fire Impact Fees LEGAL DEPARTMENT The Arkansas Attorney General has opined that impact fees are not taxes, and thus no vote of the citizens is needed to pass such impact fees. I understand the rationale and reasoning of the Attorney General and will argue that to a Court if Fayetteville was ever sued. The Attorney General may very well be correct that no citizen vote is needed to pass Fire, Police and Road Impact Fees. The last time Fayetteville was on the losing end of an illegal exaction case was when we settled in late 2000 (right before I became City Attorney) in the property tax rollback case. The County had, years earlier, been informed by state officials that we were complying with the law. The Courts determined otherwise and our police and fire pension funds paid over $100,000.00 in attorney's fees for their combined one mill. The School Districts and County obviously paid attorney's fees that totaled in the millions. The state officials paid nothing. Even if there is only a slight risk that the Courts could determine fire, police or road impact fees could be "taxes", I believe it is more prudent to refer those ordinances for a public vote of ratification. ----------------------- From: Clarice Pearman To: Jordan, Lioneld; Marr, Don Date: 11/4/05 5:02PM Subject: Ord. 4788 & 4789 Aldermen, Attached are the ordinances that were passed by Council, November 1, 2005 regarding impact fees. Have a good weekend Thanks. Clarice CC: Bell, Peggy; Deaton, Vicki "NorthwestArksuwcu'Mart Wider Read Newspaper" AFFIDAVIT OF PUBLICATION I, Erin Emis. do solemnly swear that I am the Legal Clerk of the Arkansas Democrat-Gazette/Northwest Arkansas Times newspaper, printed and published in Lowe.11,.Arkansas, and that. from .my own personal knowledge and reference to the files of said publication, that advertisement of: Of G 17o/7C j `/7 was inserted in the regular editions on PO# ** Publication Charge: $ -o _______________ Subscribed and sworn to before me this day of _1)(2?e,'2h , 2005. Notary Public Sharlene D. Williams Notary Public My Commission Expires: State of Arkansas My Commission Expires October 18, 2014 " Please do not pay from Affidavit. An invoice will be sent. REGF=WED N0V 1 2005 3ITY OF r...: f FEVILLE CITY CLERK'S OFFICE P.O. BOX 1607 • 212 N. EAST AVENUE • FAYETTEVILLE, ARKANSAS 72701 • 479-571-6470 UKOU%U1 U M. 41w DE ORDINANCE O AMEND TRLE E. UNIFIED e evi le DEVELOPMENT CODE OF END TITVILLE, f UNI IED i T 159. FEES BV ENACTING § 159.04 FIRE PROTEC. Y TION SYSTEM IMPACT FEES OF THE UNIFIED DEVELOPMENT CODE -ARKANSAS WHEREAS, the protection of the health, safety, and 3neral welfare of the czens of Fayetteville require that the Fayetteville Are Protection System as a 'ublic Facility of the City be expanded and improved to meet the demands of new de Sopment; and WHEREAS, the creation of an enviable development impact fee system would enable the City to gem grate rererwe for funding a for recouping the costs of the required Fire Protection System capacity mprovonents that those developments create: and WHEREAS, the City has canprtlensivey studied the Mure needs of its dtiiero and what the cm seeds to do to meet those needs and adopted a Co mprehenMs General Plan, the 2020 Plan. The City ass annually updates Its Capital Improvement Prgecta eat of futue necessary capital imprp9ments for all city services tvdudbg the Fire Protection System; are WHEREAS, the City commissioned an in-depth Fire Protection System mpact Fee Study designed to study Mae Re Protection System capital needs. and the fair and equitable proportion of those capes ty improvement needs that new duelcpnment should pay. This Impact Fee Study was completed In June. 2004, and latter adopted by the Oily Council; and WHEREAS, the Impact Fee Study sets forth reasonable methodooges and arases for deterrNdrg the impacts of various types of deveopment on the Gy5 need for additional Ewe Protection System department capacity and facilities; and WHEREAS, the Are Protection System Impact Fees described in this Ordinance are based on the Impact Fee Study, and are designated to generate revenue for funding or for recouping expenditures by the City of Fayette✓Ille that are reasoraby attributable to the use and occupancy of the new devebp- 'rotechbn System Facilities constitute an interrelated system that pro ides service and it is therefore appropriate and proper to treat the entire city as a single Gory - IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYET- Section 1: That the Dry Council of the City of Fayetteville, Arkansas hereby amends Chapter 159 of United Development Code by enacting §159.04 Fire Protection System Impact Fees as shown EMlblt A attached hereto. PASSED and APPROVED this 1st day of November, 2005. 3A DAN COODY, Mane ATTEST: By: SONDRA SMITH, CRY Clash E#ubit'A' 159.04 Are Protection System Impact Fees W AAahabidy (1) The fdovwg provisions shed apply to all of the territory within the Ciy% corporate city limits. and any area rear the corporate limits if specifically agreed by the caner. (2) The following types of development shall be required to pay a Fire Protection System Impact Fee: (a) New development within one of the categories of development in Table A. (b) Redevelopment involving the construction of one or more additional units within one of the categories of development In Table A. (B) Intent (1) The Intent of the Fire Protection System impact Fee is to offset costs to the City of Fayetteville tax- payers that are reaseraby attributable to prwidbg necessary Fire Protection System fadibes to new m System Impact Fee Is based upon previous and current City FNe Year Capital documents approved annualy by Oily Council Resolution and level of service stan- the Fire Impact Fee Study of June 2004 and elsewhere by the City Council. Pages Impact Fee Study are incorporated heroin as Exhiblt 1 to explain the methodology ire Protection System Impact Fees, the levels of service and Increases in capacity vtectbn System.. of this section that any monies collected for the Are Protection System Impact Fee or ever be used for a type of facility dlerernt horn that for which the fee was paid, a may be used for operational a perwa This tnpect fee step be paid to the City by the caner of the property bee a oadificate of occupancy is Issued for the new development a at the dosig on the property by the. pudlasil weer. (D) Fee CO TIES (1) Fine P,noteclion System trisect Fee Tabs. The Impact Fee AdmtrYstetor shat deterntlne to cared amount of V*.Fte Protection System Impact Fee by use of Table A and "ormation abort the type and size of to now development. TABLE A FIRE PROTECTION SYSTEM IMPACT FEES Land Use Unit Impact Fee Single -Fan y Detached Dwelling $208 MON-Femly Dweltg $150 MOOYe Home Park Pad $222 d RRet nHOW eawConni alai 1 sq. ft. $457 Ofltefnsflluluiel 1000 sq. ft. $293 Hosing Hone 1000 sq. ft. $128 Church 1000 sq. ft. $102 Industrial 1000 sq. ft. $184 Warehwse 1000 sq. f. $117 Mtl-Waraltwse 1000 sq. ft. $ 22 ;2) Rode elopnent, Retwslnttbn, Change OI Use. In the event of a rodevebpttm, recwtsaucvon Or 1a ge of use from an elating development or use, the too shall be the diferwte between miner the fee would be let the more redevelopment or reconstruction protect and what the fee would here been for ate existing de eopment w use. Enlargement 018 single (airily home wil rot requte any Impact fee. (3) Mined Use. If the proposed development includes 8 mix of the residential, mrnmerdal, IhWsfel w oadding � all the re Protection System Impact lees that would be applicable f each use type as ifnywas as freeslard g and use type. (4) AI ardabb Housing ExemPlba (a) Single family housing. Construction of single family housing Muted wholly or prknarty by federal Commutty Development Block Grants, r n -profit servce organizations such as Habitat for Humanity. Housing and Urban Deobpment housing Imrs and similar programs designed to provide affordable. owner-occuped. srgle famI residences to low Income 4WMduals shall be exempted form payment of impact fees pursuant to the ordinance by the Impact Fee Mnninistretw (b) Appeal A peson appeal aggrieved tlg i to the�� paA m � iiss5 refusal to grant an Affordable Housing Exempttn(E) Use of Fort. (1) Establishment of Accounts. A Fire Protection System Impact Fee Fund that Is distinct aom the General Fund of the City Is hereby created, and the Impact fees received will be deposited I this Fire Protection System Impact Fee Account. (2) A System impact fees CAccount pursuant to Nis Ord' fiance Protection any lntert which may accrue from time to time an such accounts. (F) Order of Lisa Monies b the Fire Protection System Impact Fee account shall be considered to be spent In the order collected, on a first-INfitetout bade. (G) Use of Fees. The funds I the Am Protection System Impact Fee Account shall be used only for the fofowing: (1) The use of the Fire Protection System Impact Fees shell be to offset costs to the Coy of Fayetlev o taxpayers that are reasonably attributable to Providing necessary Fie Protection System reclliles to new 2) This impact fee charged to new developmentreasonably shall generate revenue for funding or recoupinghe ert- shape of Me City of Feyenei that are reasonably attributable to the use and occupancy o the new levelopment. 3) ThIs Impact fee shall be collected and expended on forms planning, design or construction of new -ire Protection System facilities or of capita Improvements to existing Fire Protection System public adlities that expand their capably or for the recot ment of prior capital Improvements to such Public adobes that created capacity avaleble to serve new development. ' ;4) No nonles collected for the Fire Protection System Impact Fee shall ever be commingled or ever be used for a type of facility dwerent from that for with the fee was paid. (5) No Impact fee revenue shell be used for operational expenses. (6) All Fee Protection Impact Fee revenue shat be spent in accordance with Subsection (B) Intent. (F1) Refunds. (1) The City of FayetiSEe shall refund the portion of colected development Impact fees, Including the accrued Interest that has not been expended seven (7) years fret" the date the fees were paid. Interest shall be based on a low Percent (4%) annual rate. (2) A refund shoe be paid to the present on of the property that was the supect of new development and against which the fee was assessed and colected. (3) Notice of the right to a refund, Irduding the amount of the refund and the procedure for appyi g for and receiving the refund, all be sent or served m wilting to the present owners of the Property no later than M ny (30) days after the data which the refund becomes due. The sending by regular mall of the notices to ad present owners of record shall be sutfidentto satisfy the requirementof..mum.,. - (4) The ref nd shall be made on a prorate bads, and shall be paid I full no etc than ninety (90) days after the data certain upon which the refund becomes due. (5) At the time of payment of the Fire Protection System (pact' ndo pact' Fee uttre Qosience3th0 Fors Potection System Impact Fee MMhisaetw shad provideufsiaPpIcand Paytig such.fee w3,M,ittan notice of @pse circumstances under which. mundsrof s fees WI be. made. Fallon da rfJim wdfan mute sitd not Iwaldete any oolecfm of•any rt t'lee titer his wdrtrhde. • ��s