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HomeMy WebLinkAboutIR 7458 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7458 JA T I ft,,, May 1, 7990 ;Is Iff'o P;;' To the Mayor and Members of the City Council 01*61 Subject: DISCUSSION OF IMPACT FEES AND THE PROPOSED ORDINANCE Senate Bill 336 (codified in Chapter 395, Local Government Code in September, 1989 and amended in 1989) is the enabling legislation which authorizes municipalities to impose impact fees against new development. It requires all cities that assess impact fees to revise their ordinance to comply with the statute by June 20, 1990. The statute defines a detailed procedure for adoption of impact fees, including the appointment of an advisory committee, requirements for public notice and provision for public hearings on land use assumptions, a capital improvements plan and the impact fee ordinance. On January 3, 1990, the City Council held a public hearing to consider the land use assumptions for water and wastewater service areas. A resolution adopting the Water and Wastewater Land Use Assumptions was approved on January 30, 1990. On April 10, 1990, City Council held a public hearing to consider Capital Improvement Plans for Water and Wastewater Facilities pursuant to which an impact fee may be imposed. Utilizing the methodology required by the statute results in maximum potential impact fees of $839 and $1,285 for water and wastewater respectively. The Capital Improvements Plan Advisory Committee reviewed the documents and filed written comments as to the accuracy of the plans. Comments by the Public Works Directors of Hurst and North Richland Hills Owl were also read into the record. City Council will reconvene the public hearing on May 15th to consider additional public comment. A draft ordinance which conforms with requirements of Senate Bill 336 has been prepared for review. The ordinance, which applies to all new development within the corporate boundaries of Fort Worth and its extraterritorial jurisdiction ("benefit area"), establishes a maximum impact fee per service unit for water and wastewater facilities, to be assessed as set forth in Schedule 1, an attachment to the ordinance. A second schedule, Schedule 2, is also referenced in the ordinance, which would be the amount of impact fee per service unit which would actually be collected. This allows City Council the flexibility to set impact fees at some amount less than the maximum allowable by law. A new development would be assessed at the time of final platting using Schedule 1 and would pay the fee at the time a building permit is approved using the fees established in Schedule 2. Impact fees collected pursuant to the ordinance must be kept in a separate interest-bearing account and used only to finance projects designated in the Capital Improvements Plan. Procedures for refunds, rebates and relief procedures are described in the ordinance. LISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 74SR 0,ot T to,0 To the Mayor and Members of the City Council x Subject: DISCUSSION OF IMPACT FEES AND THE PROPOSED ORDINANCE 117S The wastewater access fees currently in place are assessed by contract to our wholesale customers. Our legal consultant has rendered an opinion that the City's "access fee" charges to wholesale customers for wastewater capital improvements are not impact fees within the meaning of Senate Bill 336, but are contractual obligations. This interpretation has caused some confusion among our wholesale customers as to how Fort Worth's access fees charges can be passed along to their customers. Staff is currently working with representatives from some of these cities to resolve issues such as timing of the fees and contractual definitions. The purpose of this discussion is to present the City Council staff's recommendations as to the level of the fees and how to resolve various issues with our wholesale customers. avid Ivory City Manager '-ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS DRAFT ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 35 , "WATER AND SEWER", OF THE CITY CODE OF THE CITY OF FORT WORTH (1986) , AS AMENDED, BY PROVIDING FOR AND ESTABLISHING WATER AND WASTEWATER IMPACT FEES; MAKING THIS ORDINANCE CUMULATIVE OF PRIOR ORDINANCES; REPEALING ALL ORDINANCES AND PROVISIONS OF THE CODE OF THE CITY OF FORT WORTH IN CONFLICT HEREWITH; PROVIDING A SEVERABILITY CLAUSE; PROVIDING FOR ENGROSSMENT AND ENROLLMENT; AND PROVIDING AN EFFECTIVE DATE. Whereas , the City Council of the City of Fort Worth, Texas deems it necessary and proper and in the best interests of the citizens of Fort Worth to promote the safe, orderly and healthful development of land; and Whereas , the continued substantial economic growth within the City has placed and continues to place an increased burden on the City's water and wastewater treatment plants; and Whereas , the City Council of the City of Fort Worth must strive to provide long-range solutions to the water and wastewater needs of the citizens of the City of Fort Worth; and Whereas, the City Council of the City of Fort Worth, in adopting this ordinance, has met all requirements of Chapter 395 of the Texas Local Government Code. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: That Chapter 35 of the Code of the City of Fort Worth, Texas (1986) , as amended, is hereby amended by adding Section 35-58 . 2 , entitled "Water and Wastewater Impact Fees", and shall be and read as follows : SECTION 1. Article 1. General Provisions 1.01. Short Title This Chapter shall be known and cited as the Fort Worth Impact Fee OPOI Chapter. DRAFT 5 1.02 . Purpose A% This Chapter is intended to assure the provision of adequate public facilities to serve new development in the City by requiring each such development to pay its pro rata share of the costs of capital improvements necessitated by and attributable to such new development. 1.03 . Authority This Chapter is adopted pursuant to Tex. Local Gov't. Code Ch. 395 (Vernon 1990 Supp. ) (SB336) and pursuant to the Fort Worth City Charter. The provisions of this chapter shall not be construed to limit the power of the City to utilize other methods authorized under state law, or pursuant to other City powers to accomplish the purposes set forth herein, either in substitution for or in conjunction with this Chapter. 1. 04. Definitions (1) Advisory Committee means the City's Capital Improvements Plan Advisory Committee, originally appointed by Resolution No. 1487 . AON (2) Assessment means the determination 'of the amount of the maximum impact fee per service unit which can be imposed on new development pursuant to this Chapter. (3) Benefit area means either a water benefit area established pursuant to Article 2 of this chapter or a wastewater benefit area established pursuant to Article 3 of this chapter, within the City and the City's extraterritorial jurisdiction, within which impact fees for capital improvements or facility expansions will be collected for new development occurring within such area and within which fees so collected will be expended for those improvements or expansions identified in the capital improvements plan applicable to the benefit area for that category of capital improvement. (4) Capital improvement means either a water facility or a wastewater facility, with a life expectancy of three or more years, to be owned and operated by or on behalf of the City. (5) City means the City of Fort Worth, Texas. 2 A*% ANN&— DRAFT (6) Credit means the amount determined under this Chapter by which a wastewater impact fee is reduced as a result of the payment of wastewater system access fees imposed pursuant to section 35-58.1 of the City Code by a new development prior to the effective date of this ordinance. Credit does not include a reduction in the amount of an impact fee due for payment of connection charges pursuant to section 35-57 of the City Code or for payment of front foot charges pursuant to section 35-58 of the City Code. (7 ) Facility expansion means either a water facility expansion or a wastewater facility expansion. (8) Final Plat recordation means the filing of the final plat with Tarrant County following compliance with all conditions of approval pursuant to the City's subdivision regulations. (9) impact fee means either a fee for water facilities or a fee for wastewater facilities imposed on new development by the City pursuant to this Chapter in order to generate revenue to fund or recoup the costs of capital improvements or facility expansion necessitated by and attributable to such new development . Impact fees do not include the dedication of rights-of-way or easements for such facilities, or the construction of such improvements. Impact fees also do not include connection charges imposed pursuant to section 35-57 of the City Code or front footage charges for wastewater and water lines imposed pursuant to section 35-58 of the City Code. (10) Impact fee capital improvements Plan means either a water capital improvements plan or a wastewater capital improvements plan adopted or revised pursuant to this Chapter. (11) Land use assumptions means the projections of population and employment growth within the benefit area adopted by the City, as may be amended from time to time, upon which the capital improvements plans are based. (12) New development means a project involving the construction, reconstruction, redevelopment, conversion, structural alteration, relocation, or enlargement of any structure; or any use or extension of the use of land; any of which has the effect of increasing the requirements for capital improvements or facility expansions, measured by the number of service units to be generated by such activity, and which requires either the approval of a plat pursuant to the City's subdivision regulations, the issuance of a building permit , or 3 i pie DPi-.4 F b. The land use assumptions for wastewater facilities are attached hereto as Exhibit B and are incorporated herein by reference. OW Dr'Ar C. The amount of each impact fee due for a new development shall not exceed an amount computed by multiplying the maximum impact fee per service unit under Schedule I by the number of service units generated by the development . d. If the building permit for which an impact fee has been paid has expired, and a new application is thereafter f1 1 014 +1,%da i VftV%ft 0. , A DRAFT b. Impact fees collected pursuant to this ordinance shall not be used to pay for any of the following expenses : (1) construction, acquisition or expansion of capital improvements other than those identified in the applicable capital improvements plan; (2) repair, operation, or maintenance of any capital improvements or facility expansion; (3) upgrade, expansion or replacement of existing capital improvements to serve existing development in order to meet stricter safety, efficiency, environmental or regulatory standards; (4) upgrade, expansion or replacement of existing capital improvements to provide better service to existing development; provided, however, that impact fees may be used to pay the costs of upgrading, expanding or replacing existing capital improvements in order to meet the need for new capital improvements generated by new development ; or (5) administrative and operating costs of the City. 1.15 . Appeals a. The property owner or applicant for new development may appeal the following decisions to the City Council : (1) the applicability of an impact fee to the development ; (2 ) the amount of the impact fee due; (3) the denial of or determination of the amount of a credit; (4) the application of a credit against an impact fee due; (5) RAFT5 1 . 16. Refunds a. Upon application, any impact fee or portion thereof collected pursuant to this Chapter , which has not been expended within the benefit area within 10 years from the date of payment, shall be refunded, upon application, to the record owner of the property for which the impact fee was paid or, if the impact fee was paid by another governmental entity, to such governmental entity, together with interest calculated from the date of collection to the date of refund at the statutory rate as set forth in Article 1 .03, Title 79, Revised Statutes (Article 5069-1 .03, Vernon's Texas Civil Statutes) , or its successor statute. An impact fee shall be considered as expended on a first-in, first-out basis . b. An impact fee collected pursuant to this Chapter shall also be considered expended if , within ten years following the date of payment , the total expenditures for capital improvements or facility expansion authorized in § 1 . 14 within the benefit area exceeds the total fees collected within the benefit area for such improvements or expansions during such period. C. If a refund is due pursuant to subsections (a) and (b) , the City shall divide the difference between the amount of expenditures and the amount of the fees collected by the total number of service units assumed within the benefit area for the period to determine the refund due per service unit. The refund to the record owner shall be calculated by multiplying the refund due per service unit by the number of service units for the development for which the fee was paid, and interest due shall be calculated upon that amount . d. Upon completion of all the capital improvements or facility expansion identified in the capital improvements plan for the benefit area, the City shall recalculate the maximum impact fee per service unit using the actual costs for -the improvements or expansions. If the maximum impact fee per service unit based on actual cost is less than the impact fee per service unit paid, the City shall refund the difference, if such difference exceeds the impact fee paid per service unit by more than 10%. if the difference is less than 10%, no refund shall be due. The refund to the record owner shall be calculated by multiplying such difference by the number of service units for the development for which the fee was paid, and interest due shall be calculated upon that amount. § 1.17 . Rebate DRAFT If the building permit for a new development for which an impact AIN fee has been paid has expired, no utility connections for that category of capital improvements have been made to the development, and a modified or new application has not been approved within six months of such expiration, the City shall , upon written application, rebate the amount of the impact fee to the record owner of the property for which the impact fee was paid. If no application for rebate pursuant to this subsection has been filed within this period, no rebate shall become due. § 1 .18 . Updates to Plan and Revision of Fees a. The City shall update its land use assumptions and capital improvements plans at least every 3 years, commencing from the date of adoption of such plans, and shall recalculate the impact fees based thereon in accordance with the procedures set forth in Texas Local Gov't Code, Ch. 395, or in any successor statute. b. The City may review its land use assumptions, capital improvements plans, impact fees and other factors such as market conditions more frequently than provided in subsection (a) to determine whether the land use assumptions and capital improvements plans should be updated and the impact fee recalculated accordingly, or AIN whether Schedules I or 2 should be changed. C. If , at the time an update is required pursuant to subsection (a) , the City Council determines that no change to the land use assumptions, capital improvements plan or impact fee is needed, it may dispense with such update by following the procedures in Texas Local Gov' t Code, section 395 .0575. 1 .19. Use of Other Financing Mechanisms a. The City may finance capital improvements or facility expansion designated in the capital improvements plan through the issuance of bonds, through the formation of public utility districts or other assessment districts , or through any other authorized mechanism, in such manner and subject to such limitations as may be provided by law, in addition to the use of impact fees . 12 DRAFT b. Except as herein otherwise provided, the assessment and collection of an impact fee shall be additional and supplemental to, and not in substitution of , any other tax, fee, charge or assessment which is lawfully imposed on and due against the property. 1 . 20 . Impact Fee as Additional and Supplemental Regulation Impact fees established by this Chapter are additional and supplemental to, and not in substitution of , any other requirements imposed by the City on the development of land, the issuance of building permits, or the connection of utilities. Such fee is intended to be consistent with and to further the policies of City's comprehensive land use plan, the capital improvements plan, the zoning ordinance, subdivision regulations and other City policies, ordinances and resolutions by which the City seeks to ensure the provision of adequate public facilities in conjunction with the development of land. 1 . 21 . Relief Procedures a. Any person who has paid an impact fee or an owner of land upon which an impact fee has been paid may petition the City Council to determine whether any duty required by this ordinance, other than those matters which may be appealed pursuant to section 1.15, has not been performed within the time so prescribed. The petition shall be in writing and shall state the nature of the unperformed duty and request that the duty be performed within sixty days of the request . If the City Council determines that the duty is required pursuant to the ordinance and is late in being performed, it shall cause the duty to commence within 60 days of the date of the request and to continue until completion. b. The City Council may grant a variance from any requirement of this ordinance, upon written request by a property owner subject to the ordinance, following a public hearing, and only upon finding that a strict application of such requirement would, when regarded as a whole, result in confiscation of the property. C. If the City Council grants a variance that reduces the amount of the impact fee due for a new development under this Chapter, it shall cause to be appropriated from other City funds the amount of the reduction in the impact fee and deposit such funds in the account for the benefit area in which the property is located. 13 1 . 22 . Exemption from Ordinance. DRAFT AM% Any building permit application which was duly accepted for filing prior to the effective date of this Chapter and which is subsequently granted, shall be exempt from the assessment and payment of an impact fee, unless such application thereafter expires. Article 2 . Water Facilities Impact Fees 2. 01. Water Benefit Area a. There is hereby established a water benefit area, constituting the City and its extraterritorial jurisdiction, as depicted on Exhibit C attached hereto and incorporated herein by reference. b. The boundaries of the water benefit area may be amended from time to time, or new water benefit areas may be delineated, pursuant to the procedures in S 1.18. 5 2 .02 . Water Capital Improvements Plan a. The Water Improvements Plan for the City of Fort Worth is hereby adopted as Exhibit D attached hereto and incorporated by reference herein. b. The Water Improvements Plan may be amended from time to time, pursuant to the procedures in 5 1 .18. 2.03 . Water Facilities Impact Fees a. The maximum impact fees per water meter for water facilities are hereby adopted and incorporated in Schedule 1 attached hereto and made a part hereof by reference. b. The impact fees per service unit for water facilities, which are to be paid by each new development, are hereby adopted and incorporated in Schedule 2 attached hereto and made a part hereof by reference. C. The impact fees per service unit for water facilities may be amended from time to time, pursuant to the procedures in S 1.18. 2.04 . Enlargement of Connection by Existing Development If the property owner of any existing development within the benefit area requests enlargement of a water meter presently serving the development , and no new development is •to occur on the • 14 DRAFT property, the owner shall pay the fee prescribed by section 1 .10 for the increase in size of the meter prior to installation of the enlarged meter . 5 2 .05. New Connection by Existing Development If any existing development within the benefit area presently utilizes a water well , a septic tank, or an individual waste disposal system and the property owner requests to be connected to the City's water system, the customer shall pay the fee prescribed by section 1.10 prior to connection to such system. Article 3 . Wastewater Facilities Impact Fees 3.01. Wastewater Benefit Area a. There is hereby established a wastewater benefit area, constituting the city and its extraterritorial jurisdiction, as depicted on Exhibit E attached hereto and incorporated herein by reference. b. The boundaries of the wastewater benefit area may be amended from time to time, or new wastewater benefit areas may be delineated, pursuant to the procedures in 3.02 . Wastewater Capital Improvements Plan a. The Wastewater Improvements Plan for the City of Fort Worth is hereby adopted as Exhibit F attached hereto and incorporated by reference herein. b. The Wastewater Improvements Plan may be amended from time to time, pursuant to the procedures in § 1.18. 3.03. Wastewater Facilities Impact Fees a. The maximum impact fees per water meter for wastewater facilities are hereby adopted and incorporated in Schedule 1 attached hereto and made a part hereof by reference. b. The impact fees per service unit for wastewater facilities, which are to be paid by each new development, are hereby adopted and incorporated in Schedule 2 attached hereto and made a part hereof by reference. 15 DRAF! C. The impact fees per service unit for wastewater facilities may be amended from time to time, pursuant to the procedures in S 1.18. S 3.04 New Connection by Existing Development If any existing .development within the benefit area presently utilizes a water well , a septic tank, or an individual waste disposal system and the property owner requests to be connected to the City's wastewater system, the customer shall pay the fee prescribed by section 1.10 prior to connection to such system. Prior Code Provisions 5 3.05 Prior Code Provisions With respect to the providing of retail wastewater services within the corporate limits of the city, this Chapter replaces and supercedes those provisions for payment of wastewater system facility access fees pursuant to section 35-58.1 of the City Code. After the effective date of this ordinance, all retail wastewater system facility impact fee shall be imposed on or collected from a new development subject to this Chapter. A"IA SECTION 2. This ordinance shall be cumulative of all provisions of ordinances and of the Code of the City of Fort Worth, Texas (1986) , as amended, except where the provisions of this ordinance are in direct conflict with the provisions of such ordinances and such Code, in which event conflicting provisions of such ordinances and such Code are hereby repealed. SECTION 3. It is hereby declared to be the intention of the City Council that the sections, paragraphs, sentences, clauses and phrases of this ordinance are severable, and if any phrase, clause, sentence, paragraph or section of this ordinance shall be declared unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs and sections of this ordinance, since the same would have been enacted by the City Council without the incorporation in this ordinance of any such unconstitutional phrase, clause, sentence, paragraph or section. 16 AN DRAF, SECTION 4 . The City Secretary of the City of Fort ' Worth is hereby directed to engross and enroll this ordinance by copying the caption and Section 1 in the minutes of the City Council and by filing the ordinance in the ordinance records of the City. SECTION 5. This ordinance shall be in full force and effect from and after its passage and publication as required by law, and it is so ordained. APPROVED AS TO FORM AND LEGALITY City Attorney Date: ADOPTED: EFFECTIVE: 17 ATTACHMENT I SCHEDULE OF FEES WAXER IMPACT FEE SCHEDULE MAXIMUM CHARGE PER EQUIVALENT METER $839 PROPOSED 1990 METER EQUIVALENCY IMPACT SIZE FACTOR FEE 3/4" 1 $839.00 i" 1.75 $1,468. 25 1-1/2" 4 $3 ,356.00 2" 7 $5,873.00 39f 16 $13,424.00 4" 28 $23,492 .04 6" 64 $53,596.00 8" 100 $83, 900 .00 10" 154 $125,850.00 WASTEWATER IMPACT Fr&E SCHEDULE MAXIMUM CHARGE PER EQUIVALENT METER $1 ,285 METER EQUIVALENCY IMPACT SIZE FACTOR FEE ------- ----------- ------------ 3/4" 1 $1,285.00 1" 1.75 $2,248 .75 1-1/2" 4 $5,140 .00 2" 7 $8 , 995 .00 0061. 3" 16 $20 ,560 .00 4" 28 $35 , 980. 00 6" 64 $82 ,240 .00 8" 100 $128 ,500 .00 10" 150 $192 ,750 . 00