HomeMy WebLinkAboutOrdinance 4789 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
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ATTEST: °°° y�NGTON
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By:
SONDRA SMITH, City Clerk
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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