Agenda 06/24/2008 Item # 8B
Agenda Item No. 88
June 24, 2008
Page 1 of 6
EXECUTIVE SUMMARY
Adopt a Resolution amending the Collier County Water-Sewer District Impact Fee
Rates established by Ordinance No. 2007-57.
OBJECTIVE: Adopt a Resolution amending the impact fee rates established by
Ordinance No. 2007-57, as amended, providing for incorporation by reference the results
of the Water and Wastewater Impact Fee Study, dated June 24, 2008.
CONSIDERATIONS: The revised impact fees are to fund water and wastewater
growth-related capital projects identified in the county's 2008 Water and Wastewater
Master Plan Updates.
Water and wastewater impact fees are used by the Collier County Water-Sewer District
(District) to partially fund necessary long-term capital improvements required to meet the
increased demand for potable water, wastewater, and non-potable irrigation quality water
services relative to population growth and growth-related development. The
recommended capital improvements and planning studies that are the basis for the
determination of proposed changes to the existing water and wastewater impact fees and
user rates are detailed in the 2008 Water and Wastewater Master Plan Updates to be
presented for approval to the Board of County Commissioners (Board) on June 24, 2008.
Ordinance No. 2001-13, adopted by the Board on March 13, 2001, as amended, included
amendments to impact fee schedules by Resolution No. 2002-88 on February 12, 2002.
The impact fee methodology for the District's non-residential customers was amended by
Resolution No. 2003-300 on September 9, 2003. On April 13, 2004, Resolution No.
2004-102 authorized a change in format to the subject Fee Schedule to provide additional
clarity and consistency regarding water and wastewater impact fees. Ordinance No.
2006-26 of June 6,2006 amended Ordinance No. 20(H-13. This amendment was made
to include ArmuaI Mid-Cycle water and sewer impact fee rate indexing. This applies
only for the years when an impact fee study is not done. It does not apply to the proposed
fee adjustment in this resolution because the impact fee study has already factored in the
effect of the Consumer Price Index (CPI). Ordinance No. 2007-57, adopted on June 26,
2007, established the District's current water and wastewater impact fees.
For water and wastewater combined, the capital costs allocable to future users through
Fiscal Year 2018 are estimated at approximately $503 million.
The methodology used to calculate these proposed impact fees is consistent with the
approach used in previous impact fee studies, and conJorms to the equity tests established
by case law (i.e., rational nexus).
~
Staff offered the Productivity Committee the opportunity to review the study at their
April] 6, 2008, meeting. The Productivity Committee declined, expressing confidence in
Agenda Item No. 88
June 24, 2008
Page 2 of 6
the consultant and staff preparing the study. The proposed impact fees were approved by
the Development Services Advisory Committee on JWle I 1,2008.
The proposed impact fees are $3,575 for each Equivalent Residential Connection (ERC)
for water, and $3,495 for each wastewater ERC. The proposed revisions result in a
$41.49 decrease per water ERC, and a $227.39 decrease per wastewater ERe. If
approved, both fees will become effective October 1, 2008.
FISCAL IMPACT: Assuming an average annual growth rate of2,000 water ERCs and
2,000 wastewater ERCs, the revenues to be generated by these recommended impact fees
over the next five years (2009 to 2013) are estimated as:
Water
Wastewater
$71,500,000
$69,900,000
TOTAL =
$141,400,000
The effect of the proposed impact fees on residential and non-residential structures is
shown in the attached Exhibit A. In addition, a cost of approximately $400 for the
required advertisement will be paid.
LEGAL CONSIDERATIONS: The proposed Resolution has been approved for format
and legal sufficiency by the Office of the County Attorney. JAB
GROWTH MANAGEMENT IMPACT: The purpose of these recommended water
and wastewater impact fees is to provide necessary revenues from future customer's of
the District's water and wastewater systems, and to partially fund long-term capital
improvements required to meet the increased demand for potable water, wastewater, and
non-potable irrigation quality water services relative to population growth and growth-
related development, as envisioned by the proposed 2008 Water and Wastewater Master
Plan Updates.
RECOMMENDATION: Adopt a Resolution amending Ordinance No. 2007-57, as
amended, and authorize the Chairman of the Board to execute the same.
Prepared by: Bala M. Sridhar, Senior Management and Budget Analyst
Page 1 of 1
Agenda Item No. 88
June 24, 2008
Page 3 of 6
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Item Number:
Item Summary:
8B
Meeting Date:
This item to be heard at 4:30 p,m. Adopt a resolution amending the Collier County Water-
Sewer District Impact Fee Rates established by Ordinance No. 2007-57. (This item to be
heard following Item 10G)
6/24/2008 9:00:00 AM
Prepared By
Bala Sridhar
Senior Management/Budget Analyst
Date
Public Utilities
Public Utilities Operations
6/4/20081 :40:05 PM
Approved By
Thomas Wides
Operations Director
Date
Public Utilities
Public Utilities Operations
6/12/2008 9:54 AM
Approved By
Jennifer A. Belpedio
Assistant County Attorney
Date
County Attorney
County Attorney Office
6/12/200811:31 AM
Approved By
James W. Delany
Public Utilities Administrator
Date
Public Utilities
Public Utilities Administration
6/12/2008 1 :02 PM
Approved By
OMS Coordinator
OMS Coordinator
Date
County Manager's Office
Office of Management & Budget
6/12/2008 2:48 PM
Approved By
Susan Usher
Senior Management/Budget Analyst
Date
County Manager's Office
Office of Management & Budget
6/16/200810:58 AM
Approved By
James v. Mudd
Board of County
Commissioners
County Manager
Date
County Manager's Office
6/16/20086:07 PM
file://C :\Agenda Test\Export\ I I 0-June%2024, %202008\08 .%20ADVER Tl SED%20PUBLI C __. 6/18/2008
Agenda Item No. 88
June 24, 2008
Page 4 of6
RESOLUTION NO. 2008-
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF
COLLIER COUNTY, FLORIDA. AMENDING THE IMPACT FEE RATES
ESTABLISHED BY ORDINANCE NO. 2007-57.
WHEREAS, on March 13, 2001, the Board of County Commissioners adopted
Ordinance No. 2001-13, the Collier County Consolidated Impact Fee Ordinance, repealing and
superceding all of the County's then existing impact fee regulations, and consolidating all of the
County's impact fee regulations into that one Ordinance, codified in Chapter 74 of the Collier
County Code of Law and Ordinances (the Code), and incorporating the water and sewer impact
fee rates established by the adoption of Ordinance No. 98-69; and
WHEREAS, on Decembcr 11, 2001, the Board of County Commissioners ("Board")
adopted Resolution No. 2001-488 thercby amending Schedule Two of Appendix A of Chapter 74
of the Code, as amendcd, the same being the Collier County Consolidated Impact Fee Ordinance;
increasing the Water and Sewer Impact Fee rates and directed staff to update the Impact Fee after
one year; and
WHEREAS, in accordance with that direction, the County has retained Public Resources
Management Group, Inc. ("the Consultant") to review the existing water and sewer impact fees
and to recommend changes to those fees if appropriate; and
WHEREAS, on February 12,2002, the Board adopted Resolution No. 2002-88 to correct
Scrivener's errors, and to correct the water impact fee downward by $50 pcr Equivalent
Residential Unit (ERC), and to amend Schedule Two of Appendix A of Chapter 74 of the Code,
as amended, the same being the Collier County Consolidated Impact Fee Ordinance; thereby
increasing the Water and Sewer Impact Fee rates; and
WHEREAS, on June 6, 2006, the Board adopted Ordinance No. 2006-26 amending
Ordinance No. 2001-13 changing the impact fee rate; and
WHEREAS, on June 26, 2007, the Board adopted Ordinance No. 2007-57 amending
Ordinance No. 2006-26 changing the impact fee rate and to include Annual Mid-Cycle water and
sewer impact fee rate indexing; and
WHEREAS, the County uses impact fees to supplement the funding of necessary capital
improvements required to provide public facilities to serve new population and related
development that is necessitated by growth in Collier County; and
WHEREAS, the Consultant has estimated the cost to future utility system users of
approximately five-hundred and three million ($503 million) in the next ten (10) years; and
WHEREAS, the Consultant has recommended a water impact fee rate decrease from
$3,616.49 per ERC to $3,575 per ERC, a decrea.e of $41.49 and a sewer impact fee rate
decrease from $3,722.39 per ERC to $3,495 per ERC, a decrease of $277.39 for all customer
classes based on their ERC's equivalents; and
Agenda Item No. 88
June 24, 2008
Page 5 of 6
WHEREAS, the above recommended rate decrease for water and rate decrease for sewer
establish these rates at the maximum levels allowed in accordance with equity tests established
and existing pursuant to Florida law; and
WHEREAS, staff has thoroughly reviewed the Consultant's findings and
recommendations and staff concurs with the recommended decrease to water and the
recommended decrease to sewer impact fee rate changes, and staff recommends that the Board
adopt this Resolution to implement these recommended changes; and
WHEREAS, the Board finds that it is in the health, safety and welfare to accept the
recommendations of the Consultant and from staff.
NOW, THEREFORE BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that:
The Board of County Commissioners hereby declares, after advertised public hearing,
that the water and sewer impact fee rates set forth in the revised Schedule Two of Appendix A of
Ordinance No. 2007-57, as amended, the Collier County Consolidated Impact Fee Ordinance, the
same being Schedule Two of Appendix A of Chapter 74 of the Collier County Code of Law and
Ordinances, attached hereto, and incorporated be reference herein as Exhibit "A" are fair and
reasonable and are to be assessed to those who receive or will receive benefits from increased
water facilities capacity, increased sewer public facilities capacity, or from both, which increased
capacity is necessitated by increased population and related growth driven development.
BE IT FURTHER RESOLVED that these revised water and sewer impact fees will take
effect as of8:00 A.M. on Wednesday, October 1, 2008.
This Resolution is adopted after motion; second and majority vote favoring adoption this
day ,2008.
ATTEST:
DWIGHT E. BROCK, CLERK
BOARD OF COUNTY COMMISSIONERS
OF COLLIER COUNTY, FLORIDA
By:
,Deputy Clerk
TOM HENNING, CHAlRMAN
Approval as to form and legal Sufficiency:
Jenni A. Belpedio
Assistant County Attorn
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