Agenda 04/22/2014 Item #16F1 4/22/201416.F.1.
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 $76,457.50 to Randall Benderson Trust 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 Randall Benderson Trust in the amount of$76,457.50.
CONSIDERATIONS: On October 22, 2013, a water impact fee of$78,843 and a sewer impact
fee of$79,212 were paid on building permit PRBD20130615355 for the construction of a new
restaurant. The flow value of the structure was calculated at 24.6 Equivalent Residential
Connections (ERCs) in accordance with flow rate established by the Florida Administrative
Code(FAC).
On January 17, 2013 staff received written confirmation from Freeland & Kauffman, Inc. (a
company representing Chili's) 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 January 24,2013 staff met with representatives
from Chili's for a pre-application meeting. On October 7, 2013, staff received the $2,500 review
fee as required by the Code.
Chili's submitted three copies of the proposed approach on November 11, 2013. The proposed
approach was reviewed by the Impact Fee Department and the Planning and Project
Management Group(Public Utilities). Changes to the methodology were requested and a revised
proposed approach was received on February 12, 2014.
The proposed approach provides a flow rate of 17.6 gallons per day per seat based on historical
data from seven similar type establishments. Although seven establishments were originally
submitted, the final flow rate represents an average of the top five establishments. Public
Utilities and the Impact Fee Department have no objection to the submission of an average flow
as long as a minimum confidence level is met. The original calculation utilizing the Florida
Administrative Code had a flow rate of 40 gallons per day per seat. The lower proposed 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: (Original 24.6 minus proposed 12.7= 11.9 ERCs to be refunded)
1. Water Impact Fee refund of$38,139.50 (11.9 water ERCs x$3,205 rate per water ERC)
2. Sewer Impact Fee refund of $38,318.00(11.9 sewer ERCs x$3,220 rate per sewer ERC)
Total refund to the property owner=$76,457.50.
With Board direction, staff is requesting 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 a flow rate of 22 gallons per restaurant seat(operating less than 16 hours per day)based on
an average of alternative submissions provided by Carrabba's and Chili's. Although single
service article restaurants have a lower flow rate than a regular restaurant within the FAC, the
District has not received any study c- °"A°^^° 4-^ ••�^- snt an automatic reduction for single
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4/22/2014 16.F.1.
service article restaurants, therefore the FAC will be followed, as is, for single service article
restaurants.
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
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 findings 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 June of 2014.
FISCAL IMPACT: If the Board accepts and approves the alternative water and sewer impact
fee calculation, a reimbursement in the amount of $76,457.50 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.
The reimbursement will decrease the current year revenue: A reimbursement of$38,139.50 will
be paid from the current year Water Impact Fee Fund (411) and a reimbursement of$38,318.00
will be paid from the current year 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$76,457.50 to Randall Benderson Trust 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 Chili's summarizing review
2) Alternative Fee calculation submission—due to the size of the document,which is
10MB and 97 pages long,it is accessible at:
http://www.colliergov.net/ftp/AgendaApri12214/ExecOffices/Chili'sFinal Submission.pdf
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4/22/2014 16.F.1 .
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.F.1
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$76,457.50 to Randall Benderson Trust as a result of the alternative impact fee calculation.
Meeting Date: 4/22/2014
Prepared By
Name: GilbertMoncivaiz
Title: Impact Fee Coordinator,Business Management&Budget Office
Approved By
Name:josephbellone
Title: Director-Operations Support,Utilities Finance Operations
Date: 04/11/2014 08:16:30 AM
Name: patterson_a
Title: Manager-Impact Fees&EDC,Business Management&Budget Office
Date: 04/14/2014 01:23:28 PM
Name: klatzkowjeff
Title: County Attorney,
Date: 04/14/2014 04:43:36 PM
Name: usher_s
Title: Management/Budget Analyst, Senior, Office of Management&Budget
Date 04/15/2014 05:50:39 PM:
Name: ochs_l
Title: County Manager, County Managers Office
Date: 04/15/2014 10:20:29 AM
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�01.1_,4�� 4/22/2014 16.F.1.
• Office of Management & Budget
01 NA Impact Fee Administration•2800 North Horseshoe Drive•Naples.Florida 34104.239-252-6237•www.colliergov.net
March 10, 2014 Certified Letter#: 70062760000117182134
Mr.John Chudoba
Freeland & Kauffman, Inc.
209 West Stone Ave
Greenville,SC 29609
Subject: Proposed Approach for Alternative Impact Fee Calculation
Chili's @ 9959 Collier Blvd
Dear Mr. Chudoba:
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 12.7 Equivalent Residential
Connections (ERCs) for this restaurant.
The original calculation based on the Florida Administrative Code represented a flow value
equal to 24.6 water and wastewater ERCs. Accepting the alternative calculation of 12.7 ERCs
will leave a balance of 11.9 water and wastewater ERCs to be refunded. This will translate into
a dollar amount of$38,139.50 and $38,318.00 respectively. The total amount of the refund, if
approved by the Board, will be $76,457.50.
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 Randall Benderson Trust).
Thank you for your assistance throughout this process.
Sincerely,
61,4:664—
r
Gilbert Moncivaiz
Impact Fee Coordinator, Office of Management and Budget
(239) 252-4215
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