Agenda 01/14/2014 Item # 16F2 1/14/2014 16.F.2.
EXECUTIVE SUMMARY
Recommendation to accept and approve the completed alternative water and sewer impact
fee calculation and approve a reimbursement of water and sewer impact fees in the amount
of $97,017.50 to Kane Furniture Corporation as a result of the alternative impact fee
calculation.
OBJECTIVE: That the Board of County Commissioners (Board) accept and approve the
completed alternative water and sewer impact fee calculation, and authorize staff to administer a
refund to Kane Furniture Corporation in the amount of$97,017.50.
CONSIDERATIONS: On June 14, 2013, a water impact fee of$51,921 and a sewer impact fee
of $52,164 were paid on building permit PRBD20130305424 for the construction of a new
furniture store. The flow value of the structure was calculated at 16.2 Equivalent Residential
Connections (ERCs) in accordance with flow rate established by the Florida Administrative
Code (FAC).
On July 17, 2013 staff received written confirmation from Kane Furniture Corporation of their
intent to enter into the Alternative Fee Calculation process, in accordance with Section 74-204 of
the Collier County Code of Laws and Ordinances (Code), for the water and sewer impact fees.
On August 13, 2013 staff met with representatives from Kane Furniture Corporation for a pre-
application meeting. On August 20, 2013, staff received the $2,500 review fee as required by the
Code.
Kane Furniture Corporation submitted three copies of the proposed approach on October 15,
2013. The proposed approach was review by the Impact Fee Department and the Planning and
Project Management Group (Public Utilities).
The proposed approach provides a flow rate of .007 gallons per day per square foot based on
historical data from six similar type establishments. The original calculation utilizing the Florida
Administrative Code utilized a flow rate of.1 gallons per day per square foot. The lower flow
rate, if accepted, results in a water and sewer impact fee refund to the customer.
Should the Board authorize an approval and acceptance of the proposed flow rate, the refund
amounts are as follows:
1. Water Impact Fee refund of$48,395.50 (15.1 water ERCs x $3,205 rate per water ERC)
2. Sewer Impact Fee refund of$48,622.00 (15.1 sewer ERCs x $3,220 rate per sewer ERC)
Total refund to Kane Furniture Corporation=$97,017.50.
When applicable, and with Board direction, staff will request authorization to administer a
specific and supportable flow rate outside those established within the FAC to best represent a
specific type of business and coincide with the current utility impact fee methodology. Going
forward, the District will apply the resulting flow rate of.007 gallons per day per square foot to
determine the water and/or sewer impact fee assessment for any furniture store within the
District in accordance with the current flow based methodology.
Findings from recent alternative studies indicate that a review of the water/sewer impact fee
methodology and the exploration of alternatives are warranted to keep pace with the changing
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1/14/2014 16.F.2.
environment. Staff initiated a review of the methodology in 2011 and is currently exploring the
merits of a meter based impact fee methodology supported by fmdings of an outside consultant
and benchmarking with other utilities furnished by the county's current rate consultant (Public
Resources Management Group). Modifications to the existing methodology and/or ordinance
will be presented to the Board in early 2014.
FISCAL IMPACT: If the Board accepts and approves the alternative water and sewer impact
fee calculation, a reimbursement in the amount of $97,017.50 will be required. This amount
represents the difference between the Water and Sewer Impact Fees paid at the time of permit
issuance and the re-calculated amount using the flow rate from the alternative study.
A reimbursement of $48,395.50 will be paid from the Water Impact Fee Fund (411) and a
reimbursement of$48,622.00 will be paid from the Wastewater Impact Fee Fund(413).
GROWTH MANAGEMENT IMPACT: Impact fees provide financial resources for the
construction and/or expansion of the County's capital infrastructure, as necessary to
accommodate growth. Development is required to contribute its fair share of the cost of
providing public facilities necessitated by growth, however impact fees may not be collected in
excess of the amount reasonably anticipated to fund such improvements. The fee based on the
alternative water and sewer impact fee calculation represents a current, localized and accurate
assessment of the facility's impact and associated cost of providing capital facilities attributable
to the new development.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney. The
purpose of impact fees is for growth to pay for growth. The Florida Impact Fee Act (F.S Sec.
163.31801) requires "that the calculation of the impact fee be based on the most recent and
localized data." Accordingly, this item is approved as to form and legality, requiring majority
vote for approval. -JAK
RECOMMENDATION: Recommendation to accept and approve the completed alternative
water and sewer impact fee calculation and approve a reimbursement of water and sewer impact
fees in the amount of $97,017.50 to Kane Furniture Corporation as a result of the alternative
impact fee calculation.
Prepared by: Gilbert Moncivaiz, Impact Fee Coordinator,
Office of Management and Budget, Impact Fee Administration
Attachments:
1) Letter to Kane Furniture Corporation summarizing review
2) Alternative Fee calculation submission—due to the size of the document, which is 19
MB and 118 pages long, it is accessible at:
http://www.coilieraov.netl ftp/AgendaJan1414/GrowthMgmt/16F2:avon Furniture011414.pdf
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1/14/2014 16.F.2.
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.16.F.16.F.2.
Item Summary: Recommendation to accept and approve the completed alternative water
and sewer impact fee calculation and approve a reimbursement of water and sewer impact fees
in the amount of$97,017.50 to Kane Furniture Corporation as a result of the alternative impact
fee calculation.
Meeting Date: 1/14/2014
Prepared By
Name: Gilbert Moncivaiz
Title: Impact Fee Coordinator,Utilities Finance Operation
12/19/2013 2:23:37 PM
Submitted by
Title: Impact Fee Coordinator,Utilities Finance Operation
Name: Gilbert Moncivaiz
12/19/2013 2:23:38 PM
Approved By
Name: Joseph Bellone
Title: Manager-Utility Billing&Cust Serv.,Utilities F
Date: 12/27/2013 10:54:04 AM
Name: PattersonAmy
Title: Manager-Impact Fees &EDC,Business Management&
Date: 12/30/2013 8:42:58 AM
Name: KlatzkowJeff
Title: County Attorney
Date: 1/6/2014 9:22:20 AM
Name: UsherSusan
Title: Management/Budget Analyst, Senior,Office of Manage
Date: 1/6/2014 3:20:15 PM
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1/14/2014 16.F.2.
Name: IsacksonMark
Title: Director-Corp Financial and Mgmt Svs,CMO
Date: 1/6/2014 3:51:16 PM
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1/14/2014 16.F.2.
• A Office of Management & Budget
Uti C Impact Fee Administration•2800 North Horseshoe Drive•Naples.Florida 34104.239-252-6237•www.colliergov.net
November 14, 2013
Mr. Daniel S. Klein
Kane Furniture Corp.
5700 70th Avenue North
Pinellas Park, FL 33781
Subject: Proposed Approach for Alternative Impact Fee Calculation
Savon Furniture @ 15100 Tamiami Trail North
Dear Mr. Klein:
Our office has completed its review of the submitted Alternative Impact Fee Calculation.
Based on historical information provided and the methodology applied,the proposal has
established a calculation that is reasonable and supportable. You have met all of the conditions
outlined within the Consolidated Impact Fee Ordinance (CIFO) and have followed all other
required procedures;therefore,the Impact Fee Department will recommend that the Board of
County Commissioners (Board) accept the alternative calculation of 1.1 Equivalent Residential
Connections (ERCs)for this furniture store.
The original calculation based on the Florida Administrative Code represented a flow value
equal to 16.2 water and wastewater ERCs. Accepting the alternative calculation of 1.1 ERCs will
leave a balance of 15.1 water and wastewater ERCs to be refunded. This will translate into a
dollar amount of$48,395.50 and $48,622.00 respectively. The total amount of the refund, if
approved by the Board,will be$97,017.50.
Our office will begin the necessary steps to have this matter presented to the Board for
approval and will send you an e-mail notification when the item has been scheduled. You will
receive an additional notification once the check has been processed. Please note that the
check will be made out to the property owner(currently listed as Kane Furniture Corporation).
Thank you for your assistance throughout this process.
Sincerely,
Gilbert Moncivaiz
Impact Fee Coordinator, Office of Management and Budget
(239) 252-4215
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