1. Roadway Impact FeesRoadway Impact Fees
Council Regular #8Council Regular #8
November 10, 2016November 10, 2016
2. ProcessProcess
Land Use AssumptionsLand Use Assumptions
Capital Improvement PlanCapital Improvement Plan
Maximum Fee CalculationMaximum Fee Calculation
Detailed Financial AnalysisDetailed Financial Analysis
IFAC CommentsIFAC Comments
Public HearingPublic Hearing
Consider Fee and Ordinance AdoptionConsider Fee and Ordinance Adoption
3. Council DirectionCouncil Direction
provided on October 27thprovided on October 27th
Effective
Dates
Single Family
Fees
Year 1
Eff. 12/1/2016
$0 / SF
Year 2
Eff. 12/1/2017
$750 / SF
Year 3+
Eff. 12/1/2018
$1,500 / SF
* Table shows Single Family Fees Only
* Other Fees would Vary by Land Use / Business Type
Res: $375/VM
Non-Res: $80/VM
Res: $187.50/VM
Non-Res: $40/VM
4.
5.
6. Fee Option 2 –Fee Option 2 –
Council DirectionCouncil Direction
OPTIONS
BY YEAR
Option 1
Recommended Option 2 Option 3
Year 1
12/1/16
$1,500 / SF $0 / SF $500 / SF
Year 2
12/1/17
$1,500 / SF $750 / SF $1,000 / SF
Year 3+
12/1/18
$1,500 / SF $1,500 / SF $1,000 / SF
* Table shows Single Family Fees Only
* Other Fees would Vary by Land Use / Business Type
Res: $375/VM
Non-Res: $80/VM
Res: $375/VM
Non-Res: $80/VM
Res: $247/VM
Non-Res: $80/VM
8. Recommended FeesRecommended Fees
Residential FeesResidential Fees ::
– $375 / Vehicle-Mile$375 / Vehicle-Mile
(Reduced 65% to 91% off the Maxes)(Reduced 65% to 91% off the Maxes)
– Equals $1500 Single Family HouseEquals $1500 Single Family House
Non-Residential FeesNon-Residential Fees ::
– $80 / Vehicle-Mile$80 / Vehicle-Mile
(Reduced to 93% to 98% off the Maxes)(Reduced to 93% to 98% off the Maxes)
– Actual Fees Vary by Land Use/Business TypeActual Fees Vary by Land Use/Business Type
Reminder W/WW Impact Fees were reducedReminder W/WW Impact Fees were reduced
to leave Reasonable Roadway Feesto leave Reasonable Roadway Fees
10. Discussion and DirectionDiscussion and Direction
to Staff for Ord Preparationto Staff for Ord Preparation
1.1. Adopt FeesAdopt Fees??
– Option 1 - Staff Recommended FeesOption 1 - Staff Recommended Fees
– Option 2 – Staff Recommended Phased ApproachOption 2 – Staff Recommended Phased Approach
– Option 3 – Reduced Residential FeeOption 3 – Reduced Residential Fee
– Consideration for Ongoing Implementation CostsConsideration for Ongoing Implementation Costs
2.2. Absolute Fee CapsAbsolute Fee Caps ??
– All or Specific Land UsesAll or Specific Land Uses
2.2. ExemptionsExemptions??
– Specific Land UsesSpecific Land Uses
2.2. Council DirectionCouncil Direction
– ConsensusConsensus
11.
12. Presentation OverviewPresentation Overview
1.1. Roadway BackgroundRoadway Background
Land Use AssumptionsLand Use Assumptions
Capital Improvements PlanCapital Improvements Plan
– Maximum Calculated Fees w/ Detailed FinancialsMaximum Calculated Fees w/ Detailed Financials
2.2. Roadway Fees by Land UseRoadway Fees by Land Use
– Comparison Cities’ FeesComparison Cities’ Fees
– Staff Recommended FeesStaff Recommended Fees
3.3. Fee & Credit ExamplesFee & Credit Examples
4.4. IFAC Written CommentsIFAC Written Comments
5.5. Discussion & DirectionDiscussion & Direction
13. Roadway Needs (CIP)Roadway Needs (CIP)
Full Build-Out T-Plan (City)Full Build-Out T-Plan (City) = $290M= $290M
10-yr Needs10-yr Needs = $217M= $217M
Attributable 10-yr GrowthAttributable 10-yr Growth = $143M= $143M (66%)(66%)
Eligible Recovery 10-yrEligible Recovery 10-yr = $134M= $134M (94%)(94%)
City will continue to look to new andCity will continue to look to new and
increased funding sources:increased funding sources:
– Council Directed Roadway Impact Fees beCouncil Directed Roadway Impact Fees be
studied and initiated this formal process as onestudied and initiated this formal process as one
sourcesource
– Otherwise, Roads will not be built, LOSOtherwise, Roads will not be built, LOS
15. Maximum CalculatedMaximum Calculated
FeesFees
Roads ARoads A $4,244/SF House$4,244/SF House ($1,061/Veh-Mile)($1,061/Veh-Mile)
Roads BRoads B $4,288/SF House$4,288/SF House ($1,072/Veh-Mile)($1,072/Veh-Mile)
Roads CRoads C $10,224/SF House$10,224/SF House ($2,556/Veh-Mile)($2,556/Veh-Mile)
Roads DRoads D $16,148/SF House$16,148/SF House ($4,037/Veh-Mile)($4,037/Veh-Mile)
16. RecommendedRecommended
Roadway Impact FeesRoadway Impact Fees
““Flat” across all four areas for equityFlat” across all four areas for equity
Residential Fees 15% of MaxResidential Fees 15% of Max (Area C)(Area C)
– $1500 Single Family House$1500 Single Family House
Non-Residential Fees 3% of MaxNon-Residential Fees 3% of Max (Area C)(Area C)
– Actual Fees Vary by Land Use/Business TypeActual Fees Vary by Land Use/Business Type
Staff believes the Market can bear theStaff believes the Market can bear the
Recommended FeesRecommended Fees
– Council could adjust the % in future if neededCouncil could adjust the % in future if needed
17. Recommended FeesRecommended Fees
% of Max Fees by Area% of Max Fees by Area
Service
Areas
Recommended
Residential
$375/VM
Recommended
Non-Residential
$80/VM
A 35% 7.5%
B 35% 7.5%
C 15% 3%
D 9% 2%
19. Comparison Cities forComparison Cities for
Roadway Impact FeesRoadway Impact Fees
DentonDenton
MansfieldMansfield
FriscoFrisco
Fort WorthFort Worth
New BraunfelsNew Braunfels
20. Comparison CitiesComparison Cities
Roadway Impact FeesRoadway Impact Fees
City Max Fee Unit*
($/Vehicle Mile)
Adopted
Residential
($/Vehicle Mile)
Adopted Non-
Residential
($/Vehicle Mile)
College Station
(Recommended)
$2,182 / VM $375 / VM
($1,500 SF Home)
$80 / VM
New Braunfels $1,056 / VM $375 / VM
($1,875 SF Home)
$102 / VM
Denton $2,002 / VM $408.16 / VM
($2,000 SF Home)
$306.12 / VM
Mansfield $904 / VM $550 / VM
($2,200 SF Home)
$300 / VM
Frisco $1,060 / VM $636 / VM
($3,816 SF Home)
$636 / VM
Fort Worth $1,866 / VM $500 / VM
($3,000 SF Home)
$375 / VM
* Average Max Fee Unit
21. Fees & CreditsFees & Credits
Developments receive credit towardDevelopments receive credit toward
Roadway Impact Fees for construction ofRoadway Impact Fees for construction of
Major Collectors and aboveMajor Collectors and above
System Improvements receive creditSystem Improvements receive credit
(Public – i.e. Major Collector, Signal, etc.)(Public – i.e. Major Collector, Signal, etc.)
Site Improvements doSite Improvements do notnot receive creditreceive credit
(Private – i.e. Driveways, DW Decel Lanes, etc.)(Private – i.e. Driveways, DW Decel Lanes, etc.)
May not owe any feeMay not owe any fee
Lowe’s / Lakeway Dr ExampleLowe’s / Lakeway Dr Example
22. IFAC Written CommentsIFAC Written Comments
Provided in Council PacketProvided in Council Packet
IFAC RepresentativeIFAC Representative
– Commissioner Jerome RektorikCommissioner Jerome Rektorik
23. Impact Fee Calculations
LUE = Living Unit Equivalent (connection for a single family home)
Eligible CIP Cost = 10-year capital cost (2016 – 2026)
Rate Credit = Chapter 395 requirements: reduce the eligible CIP cost
by 50% [or] perform a credit analysis to determine the percent of
utility bill used for growth CIP
Service Unit Growth = Derived from land use assumptions for 10-year
growth in LUEs
Eligible CIP Cost – Rate Credit
Impact Fee Per LUE =
Service Unit Growth
Impact Fee Equation:
24. MaximumMaximum
CalculatedCalculated
FeesFees
WaterWater $2,917/SF House$2,917/SF House $500/SF House$500/SF House
SewerSewer $5,519/SF House$5,519/SF House $3,000/SF House$3,000/SF House
Roads ARoads A $4,244/SF House$4,244/SF House $1,500/SF House$1,500/SF House
Roads BRoads B $4,288/SF House$4,288/SF House $1,500/SF House$1,500/SF House
Roads CRoads C $10,224/SF House$10,224/SF House $1,500/SF House$1,500/SF House
Roads DRoads D $16,148/SF House$16,148/SF House $1,500/SF House$1,500/SF House
TotalsTotals $12K-$24K/SF House $5K/SF House$12K-$24K/SF House $5K/SF House
StaffStaff
RecommendedRecommended
FeesFees
27. Real World Example 1Real World Example 1
Land Use Intensity/Units Impact Fee
Free Standing Discount
Superstore
114,768 ft2
$433,823.04
Shopping Center 29,760 ft2
$88,052.40
High-Turnover Sit-Down
Restaurant
19,600 ft2
$98,931.00
Gasoline/Service Station 18 Fueling Positions $32,535.00
Total $653,341.44
Constructed 2-lanes
and made intersection
improvements
100% Credit
28. Real World Example 2Real World Example 2
Developer constructed 2
lane divided facility. Paid no
Impact Fee.
Developer constructed
4 lane divided facility.
Paid no Impact Fee.
1
Developer constructed
roundabouts. Paid no Impact
Fee.
City participation
30. IFACs Discussion & Q/AIFACs Discussion & Q/A
Dr. James Gaines, TAMU Real Estate OfficeDr. James Gaines, TAMU Real Estate Office
Richard Weatherly, Freese and NicholsRichard Weatherly, Freese and Nichols
Jeff Whitaker, Kimley HornJeff Whitaker, Kimley Horn
City StaffCity Staff
31. IFACs’ CommentsIFACs’ Comments
RecordedRecorded
on Staff Recommended Feeson Staff Recommended Fees
Water/Wastewater IFACWater/Wastewater IFAC
– WaterWater $500/SF House$500/SF House
– WastewaterWastewater $3,000/SF House$3,000/SF House
Roadway IFACRoadway IFAC
– RoadsRoads $1,500/SF House$1,500/SF House
32. Other CitiesOther Cities
2012 Duncan National I.F. Study2012 Duncan National I.F. Study
– 28 States with Impact Fees, 271 jurisdictions28 States with Impact Fees, 271 jurisdictions
– 2012 National Averages per Single Family2012 National Averages per Single Family
Roads $3,228Roads $3,228
Water $3,863Water $3,863
Sanitary $3,725Sanitary $3,725
– 8 Texas Cities averages lower than National8 Texas Cities averages lower than National
2014 KHA Metroplex Survey2014 KHA Metroplex Survey
– 35 Metroplex Cities with Roadway Impact Fees35 Metroplex Cities with Roadway Impact Fees
– Average Roadway IF per Single Family ~$2,200Average Roadway IF per Single Family ~$2,200
33. Prior CS Impact FeePrior CS Impact Fee
StudiesStudies
2010 Roadway Impact Fees2010 Roadway Impact Fees
– Based on Average $3,000 per SF HouseBased on Average $3,000 per SF House
– If adopted in 2012, fees ~ $7.0 MIf adopted in 2012, fees ~ $7.0 M
2011 Citywide Utility Impact Fees2011 Citywide Utility Impact Fees
– Based on Water $1,480 per SF HouseBased on Water $1,480 per SF House
– Based on Sanitary $1,578 per SF HouseBased on Sanitary $1,578 per SF House
– If adopted in 2012, fees ~ $7.7 MIf adopted in 2012, fees ~ $7.7 M