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Agenda 12/15/2009 Item #10A Agenda Item NO.1 OA December 15, 2009 Page 1 of 4 EXECUTIVE SUMMARY Recommendation to establish the schednle of impact fee npdate stndies for Calendar Year 2010 in accordance with prior direction of the Board of County Commissioners OBJECTIVE: That the Board of County Commissioners (Board) establish the schedule of impact fee update studies for Calendar Year 20 10, in accordance with direction provided during the review hearing for the 2009 impact fee indexing cycle (March 24, 2009) and the Annual Update and Inventory Report (AUIR) adoption hearing (November 3, 2010). CONSIDERATIONS: Collier County has used impact fees as a funding source for growth- related capital improvements for various facilities since 1978 (Water and Sewer). The most recently adopted impact fee is the Law Enforcement Impact Fee which was adopted by the Board in 2005. Impact fees require development to contribute its fair share to the cost of improvements and additions to infrastructure, but may not be charged in excess of the amount anticipated to offset the demand .1:0 the respective i:'lcility. The requirement Illr the update of impact fees IS set l{lrth by Section 74-502 of the Collier County Code of Laws and Ordinances which states: "... This chapter and the impact fee studies should be reviewed at least every three " years. Additionally, impact fees are also adjusted during the two mid-years between formal updates through the indexing process. This process was recently reviewed and revised by the Board in order to provide an indexing model more sensitive to the CUlTent economic conditions. On March 24, 2009, during the discussion oftbe change to the indexing methodology (10 B), the Board directed that the impact fees that were scheduled for a full review during Calendar Year 2009 be temporarily delayed, with staff reponing back to the Board in November or December (2009) in order to develop a revised schedule for indexing and full studies. The Board directed that the County Manager (or his designee) and tbe County Attorney work with tbe Development Services Advisory Committee (DSAC) in order to ensure the committee's conCUlTence with the temporary delay of the full studies. On April I, 2009, staff presented to the DSAC the information related to the change to the impact fee indexing methodology and the Board direction to temporarily delay the required 2009 full studies. Staff also advised tbe DSAC that the Board requested to be inlornled if the committee had any issues witb the delay. The DSAC, by a unanimous vote, approved both of the items discussed. ~ Additionally, on November 3, 2009, during the adoption hearing for the AUIR, the Board provided direction pertaining to level of service reviews to be conducted as part of the update study process for Government Buildings Impact Fees and Law Enforcement [mpact Fees. Agenda Item No. 10A December 15, 2009 Page 2 of 4 The [ullowillg impact fee updates were subject to the temporary delay: Dependent Fire - Isles of Capri and Ochopee, Educational Facilities (School), Emergency Medical Services (EMS), Government Buildings, Law Enforcement and Library. Based on the Board guidance discussed above, statfrecommends proceeding with the following schedule: January 4, 2010 - Commence Educational Facilities, Government BUlJdings and Law Enforcement Impact Fee Update Studies. March 1,2010 - Commence Dependent Fire - Isles of Capri and Ochopee, Emergency Medical Services, and Library Impact Fee Update Studies. The studies scheduled to begin in January 2010 represent the facilities (Goverrunent Buildings and Law Enforcement) where added emphasis will be placed on the level of service review in order for potential options to be developed in Jhat area. Also included in the first group is Educational Facilities, which is cUlTently the highest individual impact fee assessed to single- family homes. The second group of studies will commence once the first group is well into the study process thereby allowing staff to effectively manage all six studies. Collier County currently has a contract with Tindale-Oliver and Associates for services related to impact fees. Tindale-Oliver is well versed in Collier County's Impact Fee Program and has the resources available to begin work on the first group of studies upon development of the scope of services. Along with the required update studies, the rotation for impact fee indexing will also continue in 2010 in accordance with the requirements of the Code. The following impact fees are scheduled for an indexing adjustment: Community Parks, Correctional Facilities, Regional Parks and Transportation. As discussed above, the indexing metbodology was updated from use of regression analysis to the use of the average cost change over a two year period, as this method is intended to be more responsive to cost fluctuations. Staff anticipates this item will be presented to the Board in June or July (2010). As is the requirement with changes to impact fees, both the Productivity Committee and the Development Services Advisory Committee will review each of the update studies and the indexing report in order to make recommendations to the Board of County Commissioners. If the Board elects to approve the recorrunended schedule, staff will brief each of the advisory committees on the action taken as the upcoming review of the studies may need to be incorporated in the committee work plans. FISCAL IMPACT: The cost of an annual update generally ranges from $60,000 to over $100,000 depending on the scope of work. The average cost of the most recent studies conducted was $70,600. Staff anticipates that the cost of the studies for EMS and Dependent Fire will be signilicantly less than the average cost, and the cost of the Educational Facilities study, funded by administrative fees paid to the County by the District School Board, will be appreciably higher than the average. Generally the cost of these studies is incUlTed by the applicable impact fee trust fund for which the study is being conducted however, in the event Agenda Item NO.1 OA December 15, 2009 Page 3 of 4 that the study places an undue burden all an individual impact fee trust fund a combination of operating funds and impact f<:e revenue maybe used to fund the study. The Office of Management and Budget will be apprised of the cost of each individual impact fee study in order to develop the best approach for funding the required work. Additionally, staff will work with the impact fee consultant to implement all available cost-saving strategies, such as shared meetings for the advisory committees; for example the Dependent Fire and EMS studies would be presented to the Productivity CommIttee on the same day, instead of separate meetings for eaeh, thereby reducing the costs associated to meetings. While the cost of the studies is significant, they are necessary to ensure equity of the impact fee rates in that new development contributes only its fair share to the cost of infrastructure improvements. GROWTH MANAGEMENT IMPACT: Impact Pees generate funds to be expended for capital improvements to public facilities necessitated by growth. The use of the formal 3-year update study process and annual indexing is consistent with Section 163.3180 I, Florida Statutes, which is the Florida Impact Fee Act 2006, requiring the most recent and localized data be used in impact fee calculations. The proposed action is also consistent with Objective 1.2 of the Capital Improvement Element (CIE) of the Collier County Growth Management Plan (GMP), which states: "Future development will bear a proportionate cost offadlity improvements necessitated by growth." LEGAL CONSIDERATIONS: This item is legally sufficient for Board action. - JAK RECOMMENDATION: That the Board of COUllty Commissioners establish the schedule of impact fee update studies for Calendar Year 20 I 0, in accordance with direction provided during the review hearing for the 2009 impact fee indexing cycle and the Annual Update and Inventory Report adoption hearing. Prepared by: Amy Patterson, Impact Fee and Economic Development Manager Community Development and Environmental Services Division Itertl Number: Item Summary: Meet!"g Date: Agenda Item No. 10A December 15, 2009 Page 4 of 4 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS 10A Recommendation to establish the schedule of impact fee update studies for Calendar Year 2010 in accordance with prior direction of the Board of County Commissioners. (Amy Patterson, Impact Fee Manager) 12/15/20099:00:00 AM Prepared By Amy Patterson Community Development & Environmental Services Manager ~ Impact Fees & EDC Date Approved By Business Management & Budget Office 11/25/20093:12:07 PM Judy Puig Community Development & Environmental Services Operations Analyst Date Community Development & Environmental Services 11/30/2009 11 :57 AM Approved By Joseph K. Schmitt Community Development & Environmental Services Administrator ~ Community Development Date Community Development & Environmental Services 12/1/200910:48 AM Approved By Jeff Klatzkow County Attorney Date Approved By 12/1/20094:09 PM OMS Coordinator County Manager's Office Date Office of Management & Budget 12/2/20099:54 AM Approved By Susan Usher Office of Management & Budget Management/Budget Analyst, Senior Date Office of Management & Budget 12/4/20093:25 PM Approved By Mark Isackson Office of Management & Budget Management/Budget Analyst, Senior Date Office of Management & Budget 12/4/20093:29 PM