Backup Documents 03/14/2017 Item #11BCollier County Government
Water and Wastewater Impact Fee Study
for Collier County Water-Sewer District
March 14, 2017
1
Public Utilities Division
AGENDA
Public Involvement for Study
Recommendations
Purpose and Use
Methodology and Proposed Impact
Fees
Summary of Recommendations
Public Utilities Division 2
Public Involvement for Study
Recommendations
January 20, 2017: Study Results Presented to
Development Services Advisory Committee
(DSAC) Sub-Committee
•DSAC Sub-Committee Recommended Approval
March 1, 2017: Study Results Presented to
DSAC
•DSAC Voted to Accept Study and
Corresponding Fees
Public Utilities Division 3
Purpose of Impact Fees
Application of Impact Fee Common in Utility
Industry
•Used by Collier County Water-Sewer District
(the "District") Since 1998
Support Policy of "Growth Paying For
Growth"
•Existing Customers Not Responsible for New
Capital
•Additional Financial Resources Provide Long-
Term Favorable Rate Benefit
Public Utilities Division 4
Purpose of Impact Fees (cont.)
Recover Capital Cost of Capacity Allocable
to New Users
•Must Meet "Rational Nexus" Provisions
Dictated By Case Law / Florida Statutes
•Must Relate Capital Expenditures to Growth
•Fee Must Be Based on Most Recent and
Localized Data
Public Utilities Division 5
Use of Impact Fees
Pay for Financing of Growth / Expansion -Related
Infrastructure
•Capital Projects
•Debt Service
Per Bond Resolution: Impact Fees Are Pledged
Revenue for Payment of District’s Outstanding
Debt
•District is AAA-Rated Utility –Indication of Credit
Risk
•Strong Rating Reduces District’s Borrowing Costs
and Keeps User Rates Lower
Public Utilities Division 6
Calculation Methodology
Utilized "System Buy-In" Approach for Fee
Calculation
•Defensible Method to Determine Fees
•Based on Original Costs of Constructed Assets to
Serve Growth
•Ten-Year Capital Plan Was Considered
Determination of Pro Rata Cost to Serve New
Equivalent Residential Connection (ERC)
•ERC Represents Capacity Allocated to a Single Family
Residence
Public Utilities Division 7
Calculation Methodology (cont.)
Impact Fees Include Two Primary Capital Cost
Recovery Components
•Identified as "System" Costs –Benefit All Users
–Treatment Component (Plants)
–Primary Transmission Component (Large Lines,
Storage, and Pump Stations)
Does Not Include On-site Costs Specific to
Development
•Water Distribution Lines / Hydrants / Meters
•Collection Lines / Manholes / Local Lift Stations
•Generally Donated as Part of Development Process or
Funded from Separate Rate
Public Utilities Division 8
Calculation Methodology (cont.)
Level of Service (LOS) = Allocated Capacity / Flow Per
ERC
Proposed Fees Reflect LOS Consistent With Master
Planning Assumptions and Previous Impact Fee Review
•Water 325 GPD Per ERC
•Wastewater 225 GPD Per ERC
Public Utilities Division 9
Proposed Impact Fees Per Equivalent
Residential Connection (ERC)
Public Utilities Division 10
System Existing Proposed Amount Percent
Water $2,600.00 $2,562.00 ($38.00)(1.5%)
Wastewater $2,515.00 $2,701.00 $186.00 7.4%
Total $5,115.00 $5,263.00 $148.00 2.9%
ERC = Equivalent Residential Connection
Existing and Proposed
Water and Wastewater Impact Fees Per ERC
Difference
Differences Are Minor –Primarily Due to Changes in
Installed Infrastructure Costs Since Last Review
Impact Fee Comparisons
Public Utilities Division 11
Per Equivalent Residential Connection (ERC)
Reasons Why Impact Fees Differ
Among Utilities
Source of Supply
Proximity to Source of
Supply
Type / Complexity of
Treatment
Effluent Disposal Method
Availability of Grant Funding
to Finance CIP
Administrative Policies
Public Utilities Division 12
Time Elapsed Since Last
Impact Fee Review
Density Within Service
Area / Size of System
Utility Life Cycle (Growth-
Oriented Vs. Mature)
Level of Service Per ERC
Standards
Summary of Recommendations to
Board of County Commissioners
Adopt Proposed Water and Wastewater
Impact Fees
•Accepted By DSAC
Considered to Be Reasonable and Meet
Criteria Established By Case Law / Florida
Impact Fee Act
Public Utilities Division 13
DISCUSSION
Public Utilities Division 14
16.Reduction of Impact Fees and AFPI Fees Since
2008
17. Proposed Impact Fees Considered Reasonable
18. Level of Service (LOS) Standard Considerations
19.AFPI Fees
Public Utilities Division 15
Reduction of Impact Fees and AFPI
Fees Since 2008
Public Utilities Division 16
Proposed
2008 Current FY 2017
Fees Fees Fees
Impact Fees
Water $3,616 $2,600 $2,562 ($38)-1.5%($1,054)-29.2%
Wastewater 3,722 2,515 2,701 186 7.4%(1,021)-27.4%
Total $7,339 $5,115 $5,263 $148 2.9%($2,076)-28.3%
AFPI Fees
Water $934 $0 $0 $0 N/A ($934)-100.0%
Wastewater 759 0 0 0 N/A (759)-100.0%
Total $1,693 $0 $0 $0 N/A ($1,693)-100.0%
Combined
Water $4,550 $2,600 $2,562 ($38)-1.5%($1,988)-43.7%
Wastewater 4,481 2,515 2,701 186 7.4%(1,780)-39.7%
TOTAL $9,032 $5,115 $5,263 $148 2.9%($3,769)-41.7%
Proposed Difference Proposed Difference
from Current Fees from 2008 Fees
Proposed Impact Fees Considered
Reasonable
Compared Recent Constructed Expansion to Fees
•Treatment Component Only
•Easiest to Measure / Compare
Water Treatment Plant Expansion
•8.0 MGD South County Facility
•Constructed Cost Per ERC = $2,881.67
•Recognized Treatment Cost Per ERC In Impact Fee Calculation =
$2,459.66
Wastewater Treatment Plant Expansion
•6.5 MGD North County Facility
•Constructed Cost Per ERC = $3,343.05
•Recognized Treatment Cost Per ERC in Impact Fee Calculation =
$2,652.82
Public Utilities Division 17
Level of Service (LOS) Standard Considerations
Public Utilities Division 18
Water ERC Wastewater ERC
Description (gpd)(gpd)
Level of Service Utilized for Impact Fee Calculations 325 225
Collier County Growth Management Plan
2.40 persons per household (2000 Census)339 241
2.50 persons per household (In-Between)353 251
2.64 persons per household (2010 Census)373 261
2016 Master Plan Updates
2.40 persons per household (2000 Census)299 201
2.50 persons per household (In-Between)311 209
2.64 persons per household (2010 Census)329 221
Level of Service Standards Recognized By State Government
of Florida:
Florida Public Service Service Commission (FPSC) Capacity
Relationships for Private Utilities 350 280
Florida Department of Health Design
Standards for Sewer Systems N/A 300
AFPI Fees
Purpose = Recover Cost of Carry to Have Available
Capacity for Future Growth
Impact Fees Recover Capital (Principal), AFPI Fees
Recovered Incurred Financing Costs
First Adopted in 2006
Development-Related Fee / Paid at the Same Time as
Impact Fees
Ordinance Had Sunset Provision in Fiscal Year 2012 –
No Current Plans to Reinstate AFPI FeesPublic Utilities Division 19
DRAFT Report
Review Presentation
March 14, 2017
1
2
1
Overview of Impact Fees
Background/Purpose
Summary of Calculated Fees4
Findings of Technical Study3
Impact Fees (four program areas) last updated in 2010
•Emergency Medical Services
•Government Buildings
•Law Enforcement
•Library Facilities and Items/Equipment
Impact Fee Update Study
•Update input variables to reflect most current and localized
data
•Meet the requirements of burden of proof for Public Agencies
3
Collier County Just Value
$0
$20,000,000,000
$40,000,000,000
$60,000,000,000
$80,000,000,000
$100,000,000,000
$120,000,000,000
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Just Value (All Property)
≈5%
≈25%
Program Area
Current
Adopted
Fee
Calculated
Impact
Fee
Percent
Change
Emergency Medical Services $94 $142 51%
Government Buildings $766 $934 22%
Law Enforcement $449 $587 31%
Library Facilities and Items/Equipment $315 $336 7%
Total $1,624 $1,999 23%
2
1
Overview of Impact Fees
Background/Purpose
Summary of Calculated Fees4
Findings of Technical Study3
Why impact fees?
•Maintain current level-of-service (LOS)
•Calculate cost of growth
•Potential large developments
•Most needed when:
High growth
Collier Permitting Rank: 9th in the State
Collier Projected Absolute Growth Rate: 15th in the State
Limited funding
7
Impact fee definition:
•One-time capital charge to new development
•Covers the cost of new capital facility capacity
Frees up other funds for maintenance/renovations
•Implements the CIE and CIP
8
Per Unit of Development
Impact Fee = [Demand x Unit Cost] –Credit
Impact Fee = New Growth –New Revenue
2
1
Overview of Impact Fees
Background/Purpose
Summary of Calculated Fees4
Findings of Technical Study3
Inventory
Facility Service Delivery
Cost Component
Credit Component
Demand Component
Calculated Fee
Government Buildings
Input Variable Changes: Single Family (2,000 sf)
13
Input Variable Calculated
Change
Effect on
Final Fee
Rate
Demand
Cost per Resident
Credit
Net Impact Fee -
≈+30%
≈+22%
Calculated Government Buildings IF Rates
Land Use Unit Persons
per Unit
Net Cost
per
Person
Total
Impact
Fee
Current
Adopted
Fee
Percent
Change
Single Family (2,000 sq ft)du 1.81 516.21 $934 $766 22%
Light Industrial 1,000 sf 0.69 $520.60 $359 $271 32%
Office (50,000 sq ft)1,000 sf 1.19 $520.60 $620 $558 11%
Retail (100,000 sq ft)1,000 sf 2.45 $520.60 $1,275 $966 32%
Bank w/Drive-Thru 1,000 sf 2.28 $520.60 $1,187 $895 33%
Fast Food w/Drive-Thru 1,000 sf 8.90 $520.60 $4,633 $3,539 31%
Government Buildings Impact Fee Rate Comparison
Land Use Unit
Collier
County
(Calc.)
Collier
County
(Current)
Charlotte
County
Indian
River
County*
Martin
County
Palm
Beach
County
Sarasota
County
St.
Lucie
County
Study Date -2016 2010 2014 2014 2012 2012 2016 2009
Adoption %-100%100%40%50/26%100%27%100%100%
Single Family
(2k)du $934 $766 $296 $370 $646 $223 $623 $345
Light Industrial 1,000 sf $359 $271 $144 $86 $182 $74 $126 $70
Office (50k)1,000 sf $620 $558 $248 $125 $316 $131 $467 $306
Retail (100k)1,000 sf $1,275 $966 $439 $296 $551 $324 $815 $531
Bank (Drive-In)1,000 sf $1,187 $895 $475 $285 $554 $382 $815 $531
Fast Food 1,000 sf $4,633 $3,539 $1,853 $1,111 $2,482 $604 $815 $531
* Adopted affordable growth scenario which discounted non-residential land uses to 26%. Additionally, fees were discounted 50%
for all land uses.
Law Enforcement
Input Variable Changes: Single Family (2,000 sf)
17
Input Variable Calculated
Change
Effect on
Final Fee
Rate
Demand (RPU)
Cost per Resident
Credit
Net Impact Fee -
≈+45%
≈+31%
Calculated Law Enforcement IF Rates
Land Use Unit Persons
per Unit
Net Cost
per
Person
Total
Impact
Fee
Current
Adopted
Fee
Percent
Change
Single Family (2,000 sq ft)du 1.90 $308.92 $587 $449 31%
Light Industrial 1,000 sf 0.69 $312.24 $215 $149 44%
Office (50,000 sq ft)1,000 sf 1.19 $312.24 $372 $307 21%
Retail (100,000 sq ft)1,000 sf 2.45 $312.24 $765 $531 44%
Bank w/Drive-Thru 1,000 sf 2.28 $312.24 $712 $492 45%
Fast Food w/Drive-Thru 1,000 sf 8.90 $312.24 $2,779 $1,946 43%
Law Enforcement Impact Fee Rate
ComparisonLand Use Unit
Collier
County
(Calc.)
Collier
County
(Current)
Charlotte
County
Indian
River
County
Manatee
County
Martin
County
Polk
County
Study Date -2016 2010 2014 2014 2015 2012 2015
Adoption %-100%100%40%100%80%100%50%
Single Family (2k)du $587 $449 $197 $436 $477 $760 $129
Light Industrial 1,000 sf $215 $149 $96 $189 $117 $158 $37
Office (50k)1,000 sf $372 $307 $165 $274 $185 $274 $250
Retail (100k)1,000 sf $765 $531 $293 $650 $473 $742 $257
Bank (Drive-In)1,000 sf $712 $492 $317 $625 $473 $481 $257
Fast Food 1,000 sf $2,779 $1,946 $1,236 $2,439 $473 $2,757 $257
Law Enforcement Impact Fee Rate
ComparisonLand Use Unit
Collier
County
(Calc.)
Collier
County
(Current)
Monroe
County
Palm
Beach
County
Miami-
Dade
County
Sarasota
County
St.Lucie
County
Study Date -2016 2010 1992 2012 N/A 2016 2009
Adoption %-100%100%100%95%N/A 100%100%
Single Family (2k)du $587 $449 $150 $128 $541 $281 $212
Light Industrial 1,000 sf $215 $149 $19 $7 $375 $57 $50
Office (50k)1,000 sf $372 $307 $112 $10 $375 $211 $327
Retail (100k)1,000 sf $765 $531 $112 $57 $375 $368 $314
Bank (Drive-In)1,000 sf $712 $492 $112 $10 $375 $368 $314
Fast Food 1,000 sf $2,779 $1,946 $112 $57 $375 $368 $314
Library Facilities and Items/Equipment
Input Variable Changes: Single Family (2,000 sf)
22
Input Variable Calculated
Change
Effect on
Final Fee
Rate
Demand (RPU)
Cost per Resident
Credit
Net Impact Fee -
≈+15%
≈+7%
Calculated Library Facilities and Items/Equipment IF Rates
Land Use Unit Persons
per Unit
Net Cost
per
Person
Total
Impact
Fee
Current
Adopted
Fee
Percent
Change
Single Family (< 4,000 sq ft)du 2.65 $126.81 $336 $315 7%
Single Family ( 4,000 + sq ft)du 2.97 $126.81 $377 $349 8%
Multi-Family du 1.26 $126.81 $160 $160 0%
Mobile Home/ RV (Tied
Down)du 2.13 $126.81 $270 $237 14%
Retirement Community/
Age-Restricted SFR du 1.15 $126.81 $146 $349 -58%
Library Impact Fee Rate Comparison
Land Use Unit
Collier
County
(Calc.)
Collier
County
(Current)
Brevard
County
Charlotte
County
Indian
River
County
Sarasota
County
Manatee
County
Martin
County
Study Date -2016 2010 2000 2014 2014 2016 2015 2012
Adoption %-100%100%29%40%100%100%80%N/A
Single Family
(2k)du $336 $315 $64 $64 $672 $683 $255 $537
Multi-Family du $160 $160 $38 $34 $381 $537 $202 $537
MH/RV Park
(tied down)du $270 $237 $46 $35 $428 $472 $202 $537
Library Impact Fee Rate Comparison
Land Use Unit
Collier
County
(Calc.)
Collier
County
(Current)
Monroe
County
Palm
Beach
County
Pasco
County
Polk
County
Lake
County
St.Lucie
County
Study Date -2016 2010 1992 2012 2002 2015 2003 2009
Adoption %-100%100%100%75%100%50%95%100%
Single Family
(2k)du $336 $315 $242 $243 $145 $83 $191 $223
Multi-Family du $160 $160 $242 $212 $97 $59 $146 $145
MH/RV Park
(tied down)du $270 $237 $242 $186 $97 $62 $152 $175
Emergency Medical Services
Input Variable Changes: Single Family (2,000 sf)
27
Input Variable Calculated
Change
Effect on
Final Fee
Rate
Demand
Cost per Resident
Credit
Net Impact Fee -
≈+15%
≈+51%
Calculated EMS IF Rates
Land Use Unit Persons
per Unit
Net Cost
per
Person
Total
Impact
Fee
Current
Adopted
Fee
Percent
Change
Single Family (2,000 sq ft)du 1.81 $78.49 $142 $94 51%
Light Industrial 1,000 sf 0.69 $78.49 $54 $46 17%
Office (50,000 sq ft)1,000 sf 1.19 $78.49 $93 $95 -2%
Retail (100,000 sq ft)1,000 sf 2.45 $78.49 $192 $165 16%
Bank w/Drive-Thru 1,000 sf 2.28 $78.49 $179 $153 17%
Fast Food w/Drive-Thru 1,000 sf 8.90 $78.49 $699 $603 16%
EMS Impact Fee Rate Comparison
Land Use Unit
Collier
County
(Calc.)
Collier
County
(Current)
Brevard
County
Charlotte
County
Indian
River
County
Lake
County
Lee
County
Manatee
County
Study Date -2016 2010 2000 2014 2014 2003 2012 2015
Adoption %-100%100%100%40%100%95%58%80%
Single Family
(2k)du $142 $94 $39 $37 $314 $390 $50 $257
Light
Industrial 1,000 sf $54 $46 -$18 $139 $104 $14 $98
Office (50k)1,000 sf $93 $95 $18 $31 $201 $1,301 $27 $142
Retail (100k)1,000 sf $192 $165 $86 $56 $477 $1,301 $58 $119
Bank (Drive-
In)1,000 sf $179 $153 $44 $60 $459 $1,301 $58 $119
Fast Food 1,000 sf $699 $603 $230 $235 $1,792 $1,301 $58 $119
EMS Impact Fee Rate Comparison
Land Use Unit
Collier
County
(Calc.)
Collier
County
(Current)
Martin
County
Monroe
County
Pasco
County
Polk
County
Sarasota
County
St.
Lucie
County
Study Date -2016 2010 2012 1992 2003 2015 2016 2009
Adoption %-100%100%100%100%100%50%100%100%
Single Family
(2k)du $142 $94 $599 $105 $172 $33 $171 $573
Light Industrial 1,000 sf $54 $46 $12 $64 $224 $5 $35 $76
Office (50k)1,000 sf $93 $95 $80 $64 $224 $35 $129 $339
Retail (100k)1,000 sf $192 $165 $319 $64 $224 $46 $224 $531
Bank (Drive-In)1,000 sf $179 $153 $80 $64 $224 $46 $224 $531
Fast Food 1,000 sf $699 $603 $575 $64 $224 $46 $224 $531
2
1
Overview of Impact Fees
Background/Purpose
Summary of Calculated Fees4
Findings of Technical Study3
Program Area
Current
Adopted
Fee
Calculated
Impact
Fee
Percent
Change
Emergency Medical Services $94 $142 51%
Government Buildings $766 $934 22%
Law Enforcement $449 $587 31%
Library Facilities and Items/Equipment $315 $336 7%
Total $1,624 $1,999 23%
Questions?
Thank You!
Collier County
•Total Fees (EMS, Gov. Bldgs., Law, and Libraries Combined)
Land Use Unit Total Fees
2006 2010 2016
Single Family (< 1,500 sf)du $1,571 $1,505 $1,999
Single Family (1,500-2,499 sf)du $1,743 $1,639 $1,999
Single Family (> 2,500 sf)du $1,899 $1,815 $2,245
Office (50,000 sq ft)1,000 sf $1,060 $970 $1,999
Retail (150,000 sq ft)1,000 sf $1,719 $1,535 $2,233
Fast Food w/Drive-Thru 1,000 sf $6,270 $6,148 $8,111
Bank w/Drive-Thru 1,000 sf $1,350 $1,555 $2,078
Mini Warehouse 1,000 sf $47 $48 $55