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Agenda 09/09/2014 Item #16F2 9/9/2014 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$43,047.50 to Discovery Village 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 Discovery Village in the amount of$43,047.50. CONSIDERATIONS: On November 26, 2013, a water impact fee of$145,186.50 and a sewer impact fee of$145,866 were paid on building permit PRBD20130716523 for the construction of a new assisted living facility. The flow value of the structure was calculated at 45.3 Equivalent Residential Connections (ERCs) in accordance with flow rate established by the Florida Administrative Code(FAC). On January 14, 2014 staff received written confirmation from The Henning Group 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 February 5,2014 staff met with a representative from The Henning Group for a pre-application meeting. On February 5, 2014 staff received the$2,500 review fee as required by the Code. The Henning Group submitted three copies of the proposed approach on June 13, 2014. The proposed approach was reviewed by the Impact Fee Department and utilized criteria established by the Planning and Project Management Group (Public Utilities). Changes to the methodology were requested and a revised proposed approach was received on July 15,2014. The proposed approach provides a flow rate of 98 gallons per day per bed based on historical data from six similar type establishments. Although six 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 115 gallons per day per bed. 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 45.3 minus proposed 38.6=6.7 ERCs to be refunded) 1. Water Impact Fee refund of$21,473.50(6.7 water ERCs x$3,205 rate per water ERC) 2. Sewer Impact Fee refund of$21,574.00(6.7 sewer ERCs x$3,220 rate per sewer ERC) Total refund to the property owner=$43,047.50. On occasion and with Board direction, staff may 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. Due to wide variations in facility types and sizes, staff is not recommending a District-wide change for assisted living facilities at this time. Therefore,the FAC will continue to be followed,as is, for these types of structures. n Packet Page-2857- 9/9/2014 16.F.2. FISCAL IMPACT: If the Board accepts and approves the alternative water and sewer impact fee calculation, a reimbursement in the amount of $43,047.50 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$21,473.50 will be paid from the current year Water Impact Fee Fund (411) and a reimbursement of$21,574.00 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$43,047.50 to Discovery Village 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 The Henning Group summarizing review 2) Alternative Fee calculation submission—due to the size of the document,which is 10 MB and 201 pages long, it is accessible at: httn://www.colliergov.net/ftn/AgendaSeut914/ExecOffices/16F3DiscoveryVillageFinalSubmission.odf P*—■ Packet Page-2858- 9/9/2014 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$43,047.50 to Discovery Village as a result of the alternative impact fee calculation. Meeting Date: 9/9/2014 Prepared By Name: Gilbert Moncivaiz Title: Impact Fee Coordinator,Business Management&Budget Office 8/7/2014 9:00:04 AM Submitted by Title: Impact Fee Coordinator,Business Management&Budget Office Name: Gilbert Moncivaiz 8/7/2014 9:00:05 AM Approved By Name: PattersonAmy Title: Manager-Impact Fees&EDC,Business Management&Budget Office Date: 8/27/2014 4:51:46 PM Name: KlatzkowJeff Title: County Attorney, Date: 8/28/2014 11:56:09 AM Name:UsherSusan Title: Management/Budget Analyst, Senior,Office of Management&Budget Date: 8/28/2014 6:31:01 PM Name: OchsLeo Title: County Manager, County Managers Office Date: 8/30/2014 1:24:04 PM Packet Page-2859- 9/9/201416.F.2. Packet Page-2860- oi.►.,,. 9/9/2014 16.F.2. Office of Management & Budget rj Impact Fee Administration•2800 North Horseshoe Drive•Naples,Florida 34104.239-252-6237•www.cdliergov.net July 28,2014 Ms. Heather Henning The Henning Group 4344 Corporate Square Blvd.,Suite 1 Naples, FL 34104 Subject: Proposed Approach for Alternative Impact Fee Calculation Discovery Village @ 8417 Sierra Meadows Blvd. Dear Ms. Henning: 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 38.6 Equivalent Residential Connections (ERCs)for this Assisted Living Facility. The original calculation based on the Florida Administrative Code represented a flow value equal to 45.3 water and wastewater ERCs. Accepting the alternative calculation of 38.6 ERCs will leave a balance of 6.7 water and wastewater ERCs to be refunded. This will translate into a dollar amount of$21,473.50 and $21,574.00 respectively. The total amount of the refund, if approved by the Board, will be$43,047.50. 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 when the item has been approved. Please note that the check will be made out to the property owner(currently listed as Discovery Village at Naples). Thank you for your assistance throughout this process. Sincerely, Gilbert Moncivaiz Impact Fee Coordinator,Office of Management and Budget (239) 252-4215 Packet Page-2861-