Agenda 07/09/2019 Item #16F 1 (2018 Impact Fees Indexing Calculations)07/09/2019
EXECUTIVE SUMMARY
Recommendation to accept the “2018 Indexing Calculations” prepared by Tindale-Oliver
and Associates, in accordance with the adopted indexing methodology contained in Chapter
74 of the Collier County Code of Laws and Ordinances, pertaining to impact fees, and direct
the County Manager to forego the calculated increases, to the Emergency Medical Services
Impact Fees 3.2%, Government Buildings Impact Fees 3.4%, Law Enforcement Impact Fees
2.7% and Library Impact Fees 2.9% due to the Impact Fee categories being scheduled for
full study in early fiscal year 2020 and anticipated changes in demand components and the
impact of the new sales tax revenue on the credit calculation for several of the listed fees.
OBJECTIVE: To accept the indexing report for Emergency Medical Services (EMS),
Government Buildings, Law Enforcement and Library Impact Fees but forego the associated fee
increases identified in the report.
CONSIDERATIONS: Chapter 74 of the Collier County Code of Laws and Ordinances (Code)
requires that in each of the two mid -cycle years between the formal three-year updates, the County
shall calculate potential adjustments to the impact fee rates based on the percentages set forth in
the Impact Fee Indexing Study, as updated annually, and in accordance with the indexing
methodology specified in the current and adopted impact fee study.
On April 25, 2017, the Board of County Commissioners (Board) adopted Ordinance 2017 -13
which amended the Code to incorporate the Government Building, Law Enforcement, Libraries,
and Emergency Medical Services (EMS) Impact Fee Update Studies and amended the
corresponding impact fee rate schedules that were effective May 1, 2017 (decreases) and July 24,
2017 (increases).
Additionally, on April 25, 2017, the Board adopted Ordinance 2017-14 which amended the Parks
and School Impact Fee Rate Schedules recommended in the “2017 Indexing Calculations”,
establishing the current rates that were effective July 24, 2017.
The attached “2018 Indexing Calculations” Report (Attachment A) was prepared by Tindale-
Oliver and Associates, Inc., for the annual indexing of EMS, Government Buildings, Law
Enforcement and Library Impact Fees. Three measures are used, alone or in combination, to
calculate the indexing percentages for the fees. These measures include building costs, land costs,
and vehicle and equipment costs. Based on this information, the total indexing percentage is then
calculated for each of the individual impact fees. The indexing percentage calculated in the
attached reports are a 3.2% increase for EMS, a 3.4% increase for Government Buildings, a 2.7%
increase for Law Enforcement, a 2.9% increase for Libraries. However, staff recommends that the
Board accept the Indexing Report and forego the proposed increases for the following reasons: 1)
the four fees subject to the indexing will be reviewed under a full study beginning in early Fiscal
Year 2020, as required by the Code; 2) based on anticipated changes in demand components staff
does not recommend increases to fees that may be offset by decreases; and 3) a credit for the
Sales Tax revenue will need to be calculated and impact on the rate structure will be evaluated as
part of the full studies, for those facilities that will be utilizing the revenue.
The 2018 Indexing Calculations were discussed with the Development Services Advisory
Committee on June 5, 2019. The Committee voted unanimously to accept the “2018 Indexing
Calculations” Report but also recommended that the Board not implement the calculated
percentages of increase, due to the upcoming full studies being on schedule to proceed.
FISCAL IMPACT: Based upon current activity, the projected annual increase in revenue
16.F.1
Packet Pg. 1895
07/09/2019
associated to the indexing, assuming development activity remains constant, is ap proximately
$12,000 for EMS, $86,000 for Government Buildings, $37,000 for Law Enforcement, $25,000 for
Library. However, changes to the volume of building permits, as well as the size and type of units
being constructed, will directly affect these incoming revenue streams. Additionally, the total
increase in revenue may not be fully realized in the first year following the increase as permitting
activity within the 90-day notice period has historically increased prior to the effective date of an
increase in fees, and all permits that are currently “in process” via a complete building permit
application are not subject to imposition of an increased rate. Therefore, based on the minimal
percentages being proposed, foregoing the rate increases related to the indexing calculations will
not have a major impact on the capital plans for the listed public facilities.
GROWTH MANAGEMENT IMPACT: The concepts of annual indexing and impact fee
updates are consistent with Objective 2 of the Capital Improvement Eleme nt (CIE) of the Collier
County Growth Management Plan (GMP) states: “Future development will bear a proportionate
cost of facility improvements necessitated by growth.”
Additionally, this approach is consistent with Section 163.31801, Florida Statutes, which is the
Florida Impact Fee Act 2006, requiring the most recent and localized data be used in impact fee
calculations.
While the Board is required to implement any calculated decreases to impact fee rates, the Board
has discretion on the timing and implementation of any calculated impact fee rate increases.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is
approved as to form and legality, and requires majority vote for approval. -JAK
RECOMMENDATION: To accept the “2018 Indexing Calculations” Report prepared by
Tindale-Oliver and Associates, Inc., in accordance with the adopted indexing methodology
contained in Chapter 74 of the Collier County Code of Laws and Ordinances, pertaining to impact
fees, and direct the County Manager to forego the calculated increases, to the Emergency Medical
Services Impact Fees, Government Buildings Impact Fees, Law Enforcement Impact Fees and
Library Impact Fees due to the Impact Fee categories being scheduled for full study in early fiscal
year 2020 and anticipated changes in demand components and the impact of the new sales tax
revenue on the credit calculation for several of the listed fees.
Prepared by: Amy Patterson, Director
Capital Project Planning, Impact Fees and Program Management Division
Growth Management Department
ATTACHMENT(S)
1. Collier 2018 Indexing Final Report 6-12-19 with date change (PDF)
16.F.1
Packet Pg. 1896
07/09/2019
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.F.1
Doc ID: 9330
Item Summary: Recommendation to accept the “2018 Indexing Calculations” prepared by
Tindale-Oliver and Associates, in accordance with the adopted indexing methodology contained in
Chapter 74 of the Collier County Code of Laws and Ordinances, pertaining to impact fees, and direct the
County Manager to forego the calculated increases, to the Emergency Medical Services Impact Fees
3.2%, Government Buildings Impact Fees 3.4%, Law Enforcement Impact Fees 2.7% and Library
Impact Fees 2.9% due to the Impact Fee categories being scheduled for full study in early fiscal year 2020
and anticipated changes in demand components and the impact of the new sales tax revenue on the credit
calculation for several of the listed fees.
Meeting Date: 07/09/2019
Prepared by:
Title: Senior Grants and Housing Coordinator – Capital Project Planning, Impact Fees, and Program
Management
Name: Gino Santabarbara
06/13/2019 8:56 AM
Submitted by:
Title: Division Director - IF, CPP & PM – Capital Project Planning, Impact Fees, and Program
Management
Name: Amy Patterson
06/13/2019 8:56 AM
Approved By:
Review:
Growth Management Department Jeanne Marcella Level 1 Reviewer Completed 06/13/2019 10:30 AM
Growth Management Department Gino Santabarbara Deputy Department Head Review Skipped 06/13/2019 8:55 AM
Growth Management Department Thaddeus Cohen Department Head Review Completed 06/13/2019 12:26 PM
Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 06/14/2019 11:37 AM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 06/14/2019 11:45 AM
Budget and Management Office Mark Isackson Additional Reviewer Completed 06/26/2019 10:46 AM
County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 06/26/2019 2:32 PM
Board of County Commissioners MaryJo Brock Meeting Pending 07/09/2019 9:00 AM
16.F.1
Packet Pg. 1897
Collier County
2018 Indexing Calculations
Final Report
Prepared for:
Collier County
2800 North Horseshoe Drive
Naples, FL 34104
Ph. (239) 252-8192
May 18, 2019
Tindale Oliver
1000 Ashley Drive, Suite 400
Tampa, FL 33602
Ph. (813) 224-8862, fax (813) 226-2106
E-mail: nkamp@tindaleoliver.com
0073139-07.18
16.F.1.a
Packet Pg. 1898 Attachment: Collier 2018 Indexing Final Report 6-12-19 with date change (9330 : 2018 Indexing Calculations)
Tindale Oliver Collier County
May 2019 i Indexing Update
COLLIER COUNTY
2018 INDEXING CALCULATIONS
Table of Contents
I. Introduction ................................................................................................ 1
II. Calculation of Indices .................................................................................. 2
III. Application .................................................................................................. 3
16.F.1.a
Packet Pg. 1899 Attachment: Collier 2018 Indexing Final Report 6-12-19 with date change (9330 : 2018 Indexing Calculations)
Tindale Oliver Collier County
May 2019 1 Indexing Update
I. Introduction
Collier County retained Tindale Oliver to calculate the updated indices for the following impact
fee program areas:
• Government Buildings;
• Law Enforcement;
• Libraries; and
• Emergency Medical Services (EMS).
The County completed technical studies for government buildings, law enf orcement, libraries,
and EMS facilities in 2016. It is Collier County’s policy to annually index the fees to moderate
fluctuations between the periodic update studies. As such, the County retained Tindale Oliver to
prepare an indexing study that reflects the changes in cost of the inventory components including
buildings, land, and vehicles/equipment.
This technical report provides a summary of the index variables and the calculations of combined
indices for the four program areas listed above.
16.F.1.a
Packet Pg. 1900 Attachment: Collier 2018 Indexing Final Report 6-12-19 with date change (9330 : 2018 Indexing Calculations)
Tindale Oliver Collier County
May 2019 2 Indexing Update
II. Calculation of Indices
As part of the calculations, the following indices were updated:
• Collier County Property Values;
• Consumer Price Index (CPI) (for equipment and vehicles);
• Producer Price Index (PPI) (for equipment and vehicles);
• Engineering News Record (ENR) Building Cost Index;
• Turner Building Cost Index; and
• RS Means Building Cost Index.
Table 1 presents the updated individual indices that will be used in the calculation of the overall
indices for each program area. Indices were calculated based on the most recent two years of
data available, 2016 and 2017. Consistent with the adopted indexing methodology, the building
cost index utilized ENR, RS Means, and Turner Building Cost indices. In the case of the
equipment/vehicle cost index, the CPI and PPI for equipment were used. The land index is based
on data from the Collier County Property Appraiser.
Table 1 also provides a comparison to 2017 indices calculated in March 2017.
Table 1
Index Calculations
1) Calculated based on the data from the latest two years, as available
2) Calculated using 2015 and 2016 data, as available
3) Difference between the 2018 index (Item 1) and the 2017 index (Item 2)
Component 2018
Index(1)
2017
Index(2)
2017-2018
Difference (3)
Buildings 3.1%2.6%0.5%
Land 9.4%12.1%-2.7%
Equipment/Vehicles 1.7%2.2%-0.5%
16.F.1.a
Packet Pg. 1901 Attachment: Collier 2018 Indexing Final Report 6-12-19 with date change (9330 : 2018 Indexing Calculations)
Tindale Oliver Collier County
May 2019 3 Indexing Update
III. Application
Updated individual indices from Table 1 are used to calculate the combined indices for the four
program areas, which are shown in Table 2. The total applicable index represents the adjustment
factor that should be applied to the related impact fee schedules.
Table 2
Combined Indices
1) Source: Technical Impact Fee Studies
2) Distribution of each inventory component is calculated by dividing each component by the total
inventory value
3) Source: Table 1
4) Percent of total cost (Item 2) multiplied by the 2018 index (Item 3)
5) Sum of indices of each component
Inventory Component Distribution of
Inventory(1)
Percent of
Total Cost(2)2018 Index(3)Combined
Index(4)
Government Buildings
Land $15,187,200 5.3%9.4%0.5%
Buildings $270,235,060 94.7%3.1%2.9%
Total Cost $285,422,260 100.0%
3.4%
Law Enforcement
Land $4,382,400 2.9%9.4%0.3%
Buildings $79,110,820 51.5%3.1%1.6%
Equipment/Vehicles $70,020,524 45.6%1.7%0.8%
Total Cost $153,513,744 100.0%
2.7%
Libraries
Land $1,617,280 2.2%9.4%0.2%
Buildings $54,018,600 73.9%3.1%2.3%
Materials/Equipment $17,483,820 23.9%1.7%0.4%
Total Cost $73,119,700 100.0%
2.9%
EMS
Land $3,168,000 8.4%9.4%0.8%
Buildings $21,532,800 56.8%3.1%1.8%
Equipment/Vehicles $13,200,989 34.8%1.7%0.6%
Total Cost $37,901,789 100.0%
3.2%Total Applicable Index(5)
Total Applicable Index(5)
Total Applicable Index(5)
Total Applicable Index(5)
16.F.1.a
Packet Pg. 1902 Attachment: Collier 2018 Indexing Final Report 6-12-19 with date change (9330 : 2018 Indexing Calculations)