Backup Documents 10/22/2019 Item #11MCollier County Water-Sewer District
2019 WATER AND WASTEWATER
IMPACT FEE STUDY
OCTOBER 22, 2019
Public Utilities Department
Agenda
●Purpose and Use
●Methodology
●Major Assumptions
●Proposed Impact Fees
●Summary of Recommendations
PUBLIC UTILITIES DEPARTMENT 2
Purpose of Impact Fees
●Application of Impact Fee Common in Utility Industry
o Used by Collier County Water-Sewer District (the
“District”) Since 1998
o Impact Fees Last Updated in 2017
●Support Policy of “Growth Paying for Growth”
o Existing Customers Not Responsible for New Capital
o Additional Financial Resources Provide Long-Term
Favorable Rate Benefit
●Recover Capital Cost of Capacity Allocable to New Users
PUBLIC UTILITIES DEPARTMENT 3
Impact Fees Legislation
●Section 163.31801 Florida Statutes is Cited as the
Florida Impact Fee Act
●Signed into Law June 14, 2006
o Most Recently Amended July 1, 2019
●Must Meet “Dual Rational Nexus” Test
●No Intentional Windfall to Existing Users
●Only Covers Capital Cost of Construction and Related
Costs for Capital Expansions to Serve Growth
●Fee Must be Based on Most Recent and Localized Data
PUBLIC UTILITIES DEPARTMENT 4
Use of Impact Fees
●Pay for Financing Growth / Expansion-Related
Infrastructure
o Capital Projects
o Expansion-Related Portion of Debt Service
●Per Bond Resolution: Impact Fees Are Pledged
Revenue for Payment of District’s Outstanding Debt
o District is AAA-Rated Utility –Indication of Low Credit Risk
o Strong Rating Reduces District’s Borrowing Costs and
Keeps User Rates Lower
PUBLIC UTILITIES DEPARTMENT 5
Calculation Methodology
PUBLIC UTILITIES DEPARTMENT
Level of Service
(Gallons per ERC)Impact Fee ($/ERC)
Capital Investment
($)
Capacity per Day
(Gallons)
6
Calculation Methodology (cont’d.)
●Impact Fees Include Two Primary Capital Cost Recovery
Components
o Identified as System Costs –Benefit All Users
●Treatment Component (Plants)
●Primary Transmission Component (Lines 10 Inches in Diameter or Greater,
Storage, Master Pump Stations not built by developers and conveyed)
●Does Not Include Onsite Costs Specific to Development
o Water Distribution Lines, Hydrants, Meters
o Collection Lines, Manholes, Local Lift Stations
o Generally Donated as Part of Development Process or Funded from a
Separate Rate
PUBLIC UTILITIES DEPARTMENT 7
●Methods Include:
1.Standards Method
o Based on Theoretical Cost of Improvements for Incremental Development
o May Not be Tied to Current Capital Plan
2.Historical Cost / “Buy-In” Method
o Based on the Historical / Original Cost of Assets
o Only Recognizes Capacity Currently in Service
3.Improvements Method
o Based on Future Capital Costs and New Capacity Over a Projected Period
of Time
o Does Not Account for Unused Constructed Capacity at Existing Facilities
Available for New Growth
PUBLIC UTILITIES DEPARTMENT
Calculation Methodology (cont’d.)
8
●Method Utilized in Impact Fee Study
o Blending of Buy-In and Improvements Methods
●Includes Historical Costs of Existing Facilities
●Recognizes Plant Capacity Available from Existing Facilities
to Meet
Near-Term Growth Requirements
●Includes Projected Near-Term “Incremental” Capital Costs
o Links Constructed Infrastructure Cost to Timing of
When Fee is Applied
PUBLIC UTILITIES DEPARTMENT
Calculation Methodology (cont’d.)
9
o The methodology has been reviewed and agreed with
impact fee outside legal council
o The Impact Fee Rate Study was reviewed in detail by
the DSAC subcommittee and accepted unanimously by
the full DSAC at their October 2, 2019 meeting
PUBLIC UTILITIES DEPARTMENT
Calculation Methodology (cont’d.)
10
Major Assumptions –Cost of Infrastructure
●County Currently has $1.4 Billion in Constructed Water and
Wastewater Utility Assets
o $614.6 Million Excluded from Fee Calculations
●Miscellaneous Equipment, Non-Backbone Distribution, and Collection Lines
●County 11-Year Capital Improvement Program (“CIP”) = $1.0 Billion
in Water and Wastewater Infrastructure Needs
o Includes Carryforward Projects
o $668.8 Million Excluded from Fee Calculations
●General Capital Improvement, Non-System Improvements, Retirements
o $334.4 Million “Incremental Cost” Increase in Estimate of Installed
Infrastructure Assets
o Includes Permanent Portion of NE Plant Expansions
PUBLIC UTILITIES DEPARTMENT 11
Major Assumptions –Level of Service
●Level of Service (“LOS”) = Allocated Capacity / Flow per Equivalent
Residential Connection (“ERC”)
●LOS Based On:
o 2019 Master Plan Update (AECOM Report dated December 7, 2018)
o Actual Water Sales and Production Data
o Wastewater Billing and Treated Flow Data
●Proposed Fees Reflect Reduction to LOS
•Consistent with Trends Experienced in Florida and Nationally
PUBLIC UTILITIES DEPARTMENT
Water Wastewater
Existing LOS per ERC 325 gpd 225 gpd
Proposed LOS per ERC 300 gpd 200 gpd
12
Level of Service Comparison
Water LOS (gpd)Wastewater LOS (gpd)
Collier County –Existing 325 225
Collier County –Proposed 300 200
Charlotte County 325 190
Hernando County 350 280
Hillsborough County 300 200
Lee County 250 250
Manatee County 250 185
Pasco County N/A N/A
Pinellas County N/A N/A
Sarasota County 200 200
Surveyed Utility Average 279 218
gpd = gallons per day
PUBLIC UTILITIES DEPARTMENT 13
Major Assumptions –Existing Capacity
●Water Treatment Capacity and Flow
o Water Treatment Capacity –52.750 MMADF-MGD
●Excludes unused Golden Gate water treatment plant capacity that will be
repurposed and/or decommissioned
o Dependable Water Plant Capacity –45.085 ADD-MGD
o Available Capacity for Customer Growth –16.971 ADF-MGD
●Wastewater Treatment Capacity and Flow
o Wastewater Treatment Plant Capacity –42.350 MMADF-MGD
o Dependable Wastewater Plant Capacity –37.149 AADF-MGD
o Available Capacity for Customer Growth –17.018 AADF-MGD
●Availability of Capacity Supports Buy-In Method
PUBLIC UTILITIES DEPARTMENT 14
Proposed Impact Fees per ERC
●Existing to Proposed Impact Fees per ERC:
●Breakdown of Change in Impact Fee per ERC:
PUBLIC UTILITIES DEPARTMENT
Existing Proposed Difference
System Fee Fee Amount Percent
Water $2,562 $3,382 $820 32.0%
Wastewater $2,701 $3,314 $613 22.7%
Total $5,263 $6,696 $1,433 27.2%
Water Wastewater
Existing Fee $2,562 $2,701
Infrastructure Investment $1,102 $1,027
LOS Decrease ($282)($414)
Proposed Fee $3,382 $3,314
15
Impact Fees Comparison
Some reasons why impact fees differ among utilities:
•Water quality and proximity to source of supply
•Type of treatment processes and effluent disposal
requirements
•Availability of grant and other external revenue sources
available to expansion related capital needs
•Density of service area
•Level of Service Standards
PUBLIC UTILITIES DEPARTMENT 16
Impact Fees Comparison
PUBLIC UTILITIES DEPARTMENT 17
Impact Fees History
PUBLIC UTILITIES DEPARTMENT 18
Summary of Recommendations
●Consider Adoption of Proposed Water and
Wastewater Impact Fees
●Considered to be Reasonable and Meet Criteria
Established by Florida Impact Fee Act and Case Law
PUBLIC UTILITIES DEPARTMENT 19
Questions and Discussion
PUBLIC UTILITIES DEPARTMENT 20
Appendix
21
Proposed NE Developments
●Purpose: Remain in
Compliance and Meet Demand
Throughout the District
o Meet village development needs
o Provide needed reliability to
stressed regional systems
PUBLIC UTILITIES DEPARTMENT 22
Project
Progress
PUBLIC UTILITIES DEPARTMENT 23
Project
Progress
PUBLIC UTILITIES DEPARTMENT 24
Project
Progress
PUBLIC UTILITIES DEPARTMENT 25
Collier County
Road Impact Fee Update Study
October 22, 2019
Presentation Overview
2
1 Background
Technical Analysis
Next Steps
2
3
Background
Collier County:
•Road impact fee implemented in 1985
•Last update study completed in 2015
•Population growth of 175,000 projected through 2045
•Update to reflect most recent and localized data
•ITE 10th Edition in 2017
•Local Option Sales Tax Adoption in 2018
•Cost increases since 2015 3
Presentation Overview
4
1 Background
Technical Analysis
Next Steps
2
3
Technical Analysis
Impact Fee Definition:
•One-time capital charge to new development
•Covers the cost of new capital facility capacity
•Implements the CIP
5
Consumption-Based Methodology:
•Common methodology used by many Florida jurisdictions
•Charges new growth based on its consumption of capacity
•Fees are calculated at a rate that cannot correct existing
deficiencies
6
Technical Analysis
Technical Analysis
Basic Impact Fee Formula:
Net Impact Fee =
(Cost –Credit) x Demand
7
Cost to add
capacity
Non-impact fee
revenue from
future development
Vehicle
miles of travel
Transportation
8
Summary of Changes
Variable
Change
Since Last
Study
Effect on
Fee
Cost
Credit
Demand
Single Family Rate (2015 Rpt)-+15%
Single Family Rate (Indexed)-+9%
Technical Analysis:
Consumption-Based
9
Total Impact
Cost ≈$9,200 13 vehicle-miles
of daily travel
Capacity
≈8,500 Vehicle-miles of capacity ≈$710
Total Credit ≈$1,200
Impact Fee ≈$8,000
÷ =
X=
One Lane Mile
≈$6.0 M
Transportation
Demand Component
•Sources:
•National ITE Reference
•Florida Studies Database
•District 1 Regional Planning Model (D1RPM)
•Demand Calculation:
•Trip Gen. Rate x Trip Length x % New Trips
10
Transportation –Demand Component
Update TGR to ITE 10th Edition:
•Trip Generation Increase ≈ 20 land uses
•Trip Generation Decrease ≈ 24 land uses
•No change ≈ 13 land uses
•Re-organization of multi-family and gas station w/convenience market
land uses
11
Transportation –Demand Component
12
Change in Trip Generation -Examples
Land Use Unit TGR
2015
TGR
2019 % Change
Single Family (2k sq ft)du 7.65 7.37 -3.7%
Day Care Center Student 4.38 4.09 -6.6%
Office (50k sq ft)1,000 sf 11.02 9.74 -11.6%
Retail (100k sq ft)1,000 sf 28.46 37.75 +32.6%
Bank w/Drive-In 1,000 sf 159.34 102.66 -35.6%
Light Industrial 1,000 sf 6.97 4.96 -28.8%
Furniture Store 1,000 sf 5.23 6.26 +19.7%
Fast Food w/Drive-Thru 1,000 sf 511.00 482.53 -5.6%
13
Transportation –Cost Component
Source: Florida Dept of Transportation, Long Range Estimates
-50%
0%
50%
100%
150%
200%
250%
300%
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
FDOT LRE Construction Cost -Cumulative Growth Trend (3-yr Avg)
Construction Costs
Continue to Increase
14
Local Future Estimates
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
2015 Report: Local Improvements and
County Database ≈$2.5 M per lane mile
2015 Report: Calculated Fee
≈$2.5 M per lane mile
Proposed:
$3,500,000 for
construction
-Local Bids/Estimates
-FL Database 2015+
Transportation
County Road Construction Cost Trend (curb & gutter)
= Collier Bid/Estimate
Technical Analysis –Cost Component
Estimated Cost per Lane Mile
15
Phase County Roads
Design $385,000
Right-of-Way $1,208,000
Construction $3,500,000
CEI $315,000
Mitigation $74,000
Urban Overpass $523,000
Total $6,005,000
Credit Component:
16
$.01 penny
1 CENT
GAS TAX
PER GALLON
Technical Analysis
Credit Component
•Revenue Sources
County funding (fuel tax, grants, debt service, etc.)
Sales tax option
This is NOT a developer credit for construction
17
Transportation
Capital Expansion Funding (Excluding Impact Fees)
18
Credit Equiv. Pennies
per Gallon
≈Annual
Expenditures
County Revenues $0.047 $7.9 M
County Debt Service $0.087 $14.5 M
Total Fuel Tax Eq $0.134 $22.4 M
Transportation –Credit Component
Credit Equiv. Pennies
per Gallon
≈Annual
Expenditures
County Revenues $0.144 $24.2 M
County Debt Service $0.087 $14.5 M
Total Fuel Tax Eq $0.231 $38.7 M
Excluding Sales Tax Including Sales Tax
Single Family (2k sf) Credit = $703 Single Family (2k sf) Credit = $1,203
•Fuel Taxes:
State tax indexed
Local tax NOT indexed
•Other revenue sources are indexed
19
Technical Analysis
Decrease in Value of 1¢ of Fuel Tax
Technical Analysis
Decrease in Value of 1¢ of Fuel Tax
20
0.400
0.500
0.600
0.700
0.800
0.900
1.000
1.100
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Fuel Efficiency
Fuel Efficiency & Inflation
≈ -17%
≈ -52%
State
Local
Source: FHWA Highway Statistics Series
Calculated Impact Fee Rates
21
Land Use Unit Adopted
Fees
Calculated
Fees
No Sales Tax
Percent
Change
Calculated
Fees
w/Sales Tax
Percent
Change
Study Date -2015 2019 -2019 -
Assessed Portion -100%100%-100%-
Single Family (2k sf)du $7,444 $8,590 +15%$8,090 +9%
Light Industrial 1,000 sf $5,700 $4,865 -15%$4,584 -20%
Office (50k sq ft)1,000 sf $10,249 $9,152 -11%$8,605 -16%
Retail (125k sq ft)1,000 sf $14,354 $14,758 +3%$13,774 -4%
Bank w/Drive-In 1,000 sf $28,961 $22,817 -21%$21,254 -27%
Fast Food w/Drive-Thru 1,000 sf $96,567 $112,365 +16%$104,272 +8%
Transportation
Transportation Impact Fee Comparison
22
Land Use Unit
Collier
No Sales
Tax
Collier
with Sales
Tax
Collier
Adopted
Lee
County
Charlotte
County
Palm
Beach
County
Miami-
Dade
County
Manatee
County
(NE)
Martin
County
Study Date -2019 2019 2015 2015 2013 2018 2006 2015 2012
Assessed Portion -100%100%100%45%40%95%*100%90%100%
Single Family (2k sf)du $8,590 $8,090 $7,444 $4,498 $2,389 $4,717 $9,464 $6,891 $2,815
Light Industrial 1,000 sf $4,865 $4,584 $5,700 $1,521 $1,518 $1,522 $3,821 $2,903 $1,857
Office (50k sq ft)1,000 sf $9,152 $8,605 $10,249 $3,426 $2,856 $3,418 $15,420 $4,594 $2,198
Retail (125k sq ft)1,000 sf $14,758 $13,774 $14,354 $5,164 $3,793 $7,656 $20,071 $11,737 $5,183
Bank w/Drive-In 1,000 sf $22,817 $21,254 $28,961 $11,511 $8,003 $16,116 $25,014 $11,737 $6,841
Fast Food w/Drive-Thru 1,000 sf $112,365 $104,272 $96,567 $22,010 $26,595 $30,702 $50,346 $11,737 $15,693
Transportation
*Light Industrial was adopted at 48%, Office was adopted at 49%, Fast Food was adopted at 54%
Transportation Impact Fee Comparison
23
Land Use Unit
Collier
No Sales
Tax
Collier
with Sales
Tax
Collier
Adopted
Indian
River
County
Sarasota
County
Pasco
County
SUBURBAN
Polk
County
Lake
County
SOUTH
Marion
County
Study Date -2019 2019 2015 2014 2015 2018 2015 2013 2015
Assessed Portion -100%100%100%100%/45%100%n/a 100%70%11-20%
Single Family (2k sf)du $8,590 $8,090 $7,444 $4,248 $4,734 $8,570 $2,155 $2,706 $1,397
Light Industrial 1,000 sf $4,865 $4,584 $5,700 $1,206 $1,984 $0 $666 $1,505 $428
Office (50k sq ft)1,000 sf $9,152 $8,605 $10,249 $1,916 $4,327 $0 $2,237 $2,623 $676
Retail (125k sq ft)1,000 sf $14,758 $13,774 $14,354 $2,862 $9,365 $7,051 $3,808 $3,080 $1,014
Bank w/Drive-In 1,000 sf $22,817 $21,254 $28,961 $6,219 $8,598 $14,384 $3,808 $3,080 $2,260
Fast Food w/Drive-Thru 1,000 sf $112,365 $104,272 $96,567 $20,459 $17,867 $46,712 $3,808 $3,080 $2,803
Transportation
Presentation Overview
24
1 Background
Technical Analysis
Next Steps
2
3
Next Steps
•BOCC Input/Direction
•Implementation Process
25
Questions?
26
Thank You!
Road Impact Fee Variables:
•Demand Component
•Trip generation rate, trip length, % new trips
•Cost Component
•County roads, capacity
•Credit Component
•Non-impact fee funding for roadway capacity expansion
27
Technical Analysis
Transportation
Demand per Unit of Development:
•Trip Generation Rate = Number per day
•Trip Length = Travel A to B
•Trip Length Adjustment Factor = Accounts for travel on County Roads
ONLY
•% New Trips = Accounts for trips already on the roadway
•Interstate/Toll Adjustment Factor = Accounts for interstate & toll trips
(not charged)
28
Transportation
Single Family (2,000 sq ft) Residential Example:
•Trip Generation Rate = 7.37
•Trip Length = 5.88 * 71% = 4.17
•% New Trips = 100%
•I/T Adj. Factor = 14.4%
(7.37 * 4.17 * 100% / 2) * (1 –14.4%) = 13.15
29
Transportation
Cost Component
•Sources:
•Local county improvements
•Golden Gate Blvd from Wilson Blvd to E. of 18th St N
•Collier Blvd from Green Blvd to Golden Gate Blvd
•Golden Gate Blvd from W. of 20th St SE to E. of Everglades Blvd
•Vanderbilt Beach Rd Ext. from Collier Blvd to 19th St NE
•Vanderbilt Beach Rd Ext. from US 41 to E. of Goodlette-Frank Rd
•Airport Rd from Vanderbilt Beach Rd to Immokalee Rd
•County and state road improvements from other communities in Florida 30
Future Estimates
Transportation
Cost Component
•Roadway Cost = $6,005,000
•Capacity = 8,500 vehicle-miles
•Cost per VMC ≈ $706
31
Single Family (2,000 sq ft):
•Net VMT = 13.15
•Cost per VMC = $706.47
•Total Impact Cost = $9,293
•Revenue Credit = $703
•Including sales tax = $1,203
•Calculated Impact Fee Rate = $8,590
•Including sales tax = $8,090 32
Transportation
Net Impact Fee =
(Cost –Credit) x Demand
Regional Roads
•US 41 (Tamiami Tr) from Lee Co. Line to Miami-Dade Co. Line
•Collier Blvd from Immokalee Rd to Marco Island Bridge
•Oil Well Rd from Immokalee Rd to Camp Keais Rd
•Camp Keais Rd from Immokalee Rd to Oil Well Rd
•Immokalee Rd from US 41 (Tamiami Tr) to Camp Keais Rd
•Logan/Santa Barbara Blvd from Lee Co. Line to Rattlesnake Hammock Rd
•Vanderbilt Beach Rd from Collier Blvd to Desoto Blvd
33
Transportation