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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 ;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