HomeMy WebLinkAboutItem 06 - Water and Wastewater Impact FeesMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ROGER NELSON, CITY MANAGER
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MEETING DATE: AUGUST 20, 2002
SUBJECT: AMENDMENTS TO THE WATER AND WASTEWATER IMPACT
FEES, CONDUCTING A PUBLIC HEARING AND APPROVING
THE FIRST READING OF THE ORDINANCE AMENDING THE
WATER AND WASTEWATER IMPACT FEES
RECOMMENDATION:
City Council consider:
• conducting a public hearing to consider Amended Water and Wastewater Impact
Fees,
• adopting an ordinance on first reading approving the Amended Water and
Wastewater Impact Fees,
and take any necessary action.
BACKGROUND
The Impact Fee Advisory Committee met with the City staff and representatives of
Freese and Nichols, Inc., on the evening of July 23, 2002 to review maximum water and
wastewater impact fees that could be imposed for the ten-year planning period of 2002
to 2012. In that meeting, the Freese and Nichols representatives submitted a draft report
addressing various elements of the second and final phase of developing water and
wastewater impact fees including mandated fee credits.
The new law provides two methods to credit individual fee payers.
• A credit for the portion of ad valorem tax and utility service revenues generated by
new service units during the program period that is used for the payment of
improvements, including the payment of debt, that are included in the capital
improvement plan, or
0:\agenda\07-16-02\LUA & CIP Hearing
August 13, 2002 (4:44PM)
• in the alternative, a credit equal to 50% of the total projected cost of implementing
.ly. the capital improvement plan.
Freese and Nichols Staff calculated the maximum allowable fee that could be charged
for water and wastewater impact fees using both methods. The conclusion from the
analysis was that the preferred approach to establish the maximum allowable fee was to
utilize the 50% credit method.
Although the utility revenue tax payment approach can yield significantly higher
maximum fees, the implementation of this approach is much more difficult to administer.
The 50% credit option is a clearer approach to assessing and collecting the fees and
yields increased water rates.
The maximum allowable fee must be calculated to establish the upper limit for the fee
utilizing the credits required by the new law. The Council can then impose any fee less
than or equal to the maximum allowable.
The Impact Fee Advisory Committee recommends that the City Council consider
adopting the following maximum allowable fees:
MAXIMUM FEE AFTER 50% CREDIT
Water / SFLUE $ 1,696
Wastewater/ SFLUE $ 1,082
Total
$ 2,778
Past Fees imposed by the City have been:
2000 1999
1998
1990
Water / SFLUE
$ 1,292 $ 1,148
$ 1,003
$ 764
Wastewater / SFLUE
$ 605 $ 478
$ 351
$ 140
Total
$ 1,897 $ 1,626
$ 1,354
$ 904
0:\agenda\07-16-02\LUA & CIP Hearing
August 13, 2002 (4:52PM)
The recommended fees per SFLUE will yield the following fees per category of
development.
Category Water Wastewater
Per unit of $ 1,696 $ 1,082
Single Family
Per unit of $ 810 $ 481
Multi -family
Per Acre of $ 3,928 $ 2,424
Commercial/industrial
Per Acre of $28,182 $19,449
Hotel > 5017t
Per Acre of $11,076 $10,947
Corporate Office
Per Acre of $ 3,935 $ 3,753
Government Use
The proposed fees cover the final 10 year Planning Period and Capital Improvements
Plan.
The final set of capital improvement projects include a number of new projects that have
been identified since the 1998 study. In 2000, Freese & Nichols performed an update of
the City's Master Water Plan with improved modeling software and new water
consumption figures from recent City water records. This model identified a number of
improvements that would be needed in the final CIP, including a new Clear well at the
Water Treatment Plant and a Booster Pump Station & Ground Storage on the TRA
Trunk Line along SH 121.
Staff recommends approval.
0:\agenda\07-16-02\LUA & CIP Hearing
August 5, 2002 (9:30AM)
TO: Hon and Members of the City Council
FROM: B Chairman Impact Fee Advisory Committee
DATE: July 24, 2002
SUBJECT: Recommended Water and Wastewater Impact Fees
The Impact Fee Advisory Committee met with the City staff and representatives of Freese and
Nichols, Inc., on the evening of July 23, 2002 to review Maximum Water and Wastewater Impact
Fees that could be imposed for the Ten Year Planning Period of 2002 to 2012. In that meeting,
the Freese and Nichols representatives submitted a draft report addressing various elements of
the second and final phase of developing Water and Wastewater Impact Fees including
mandated fee credits.
The new law provides two methods to credit individual fee payers.
A Credit for the portion of ad valorem tax and utility service revenues generated by new
service units during the program period that is used for the payment of improvements,
including the payment of debt, that are included in the capital improvement plan, or
• in the alternative, a Credit equal to 50% of the total projected cost of implementing the
capital improvement plan.
Freese and Nichols Staff calculated the maximum allowable fee that could be charged for water
and wastewater impact fees using both methods. The conclusion from the analysis was that the
preferred approach to establish the maximum allowable fee was to utilize the 50% credit
method.
The credit for rate and tax payments is a new approach that has yet to be clarified for
implementation and for the City of Grapevine appears to yield significantly higher maximum fees
than the 50% credit approach.
The 50% credit approach is straight forward, thus unlikely to be challenged, and still yields a
noticeable increase in the fees for both water and wastewater.
The maximum allowable fee must be calculated to establish the upper limit for the fee utilizing
the credits required by the new law. The Council can then impose any fee less than or equal to
the maximum allowable.
The Impact Fee Advisory Committee recommends that the City Council consider adopting the
following maximum allowable fees:
MAXIMUM FEE AFTER 50% CREDIT
Water $ 1,696 per SFLUE
Wastewater $ 1,082 per SFLUE
Total $ 2,778 per SFLUE
0Astan\impctfee\W&WW FEE Rec 7-24-02
•-r •
AN ORDINANCE OF THE CITY OF GRAPEVINE, TEXAS
APPROVING, ADOPTING AND IMPOSING AMENDED
WATER AND WASTEWATER IMPACT FEES; AMENDING
CHAPTER 25 UTILITIES AND SERVICES OF THE
GRAPEVINE CODE OF ORDINANCES; PROVIDING A
SEVERABILITY CLAUSE; PROVIDING FOR THE REPEAL
OF INCONSISTENT ORDINANCES; AND PROVIDING AN
EFFECTIVE DATE
WHEREAS, the Texas Local Government Code, Chapter 395, as amended (the
"Code") (formerly Tex. Rev. Civ.Stat.Ann. art. 1269j-4.11, as amended), provides a
procedure enabling municipalities to enact impact fees; and
WHEREAS, on July 16, 2002, the City Council conducted a public hearing, after
compliance with all legal prerequisites, to consider amended Land Use Assumptions
and an amended Capital Improvements Plan pursuant to which Water and Wastewater
Impact Fees would be imposed; and
WHEREAS, on July 16, 2002, after compliance with all legal prerequisites, the
City Council approved the amended Land Use Assumptions and an amended Capital
Improvements Plan upon the adoption of Resolution No. 2002- 27; and
WHEREAS, on August 20, 2002, the City Council conducted a public hearing,
after compliance with all legal prerequisites, to consider imposing amended Water and
Wastewater Impact Fees within the designated service area identified in the amended
Land Use Assumption Map; and
WHEREAS, the City Council hereby desires to adopt the amended Water and
Wastewater Impact Fees which were considered in the August 20, 2002 public hearing;
and
WHEREAS, the Amended Water and Wastewater Impact Fees were developed
by qualified professionals using generally accepted engineering and planning practices
in accordance with Section 395.014 of the Texas Local Government Code; and
WHEREAS, the City Council hereby finds and determines that all legal
prerequisites have been complied with.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF GRAPEVINE, TEXAS:
Section 1. That all of the above premises are found to be true and correct and
are incorporated into the body of this ordinance as if copied in their entirety.
Section 2. That the City Council hereby approves and adopts the amended
Water and Wastewater Impact Fees identified in the Update of Water and Wastewater
System Impact Fees Report dated August, 2002, prepared by Freese and Nichols, Inc.
A copy of said Report shall be maintained at all times in the office of the City Secretary.
Section 3. That Chapter 25 Utilities and Services, Article II Water and Sewers,
Section 25-25(a) is hereby amended in its entirety to read as follows:
"Section 25-25. Same — Water and Wastewater impact fee.
(a) Amount of impact fee,
(1) An impact fee shall be assessed at the time the subdivision plat is approved
and recorded against each lot or tract of land and the owner thereof whose
water and/or wastewater line shall be connected with any water line in the
city, and the fee shall be assessed at the rates as follows:
Category Water Wastewater
Per unit of $ 1,696 $ 1,082
Single Family
Per unit of $ 810 $ 481
Multi -family
Per Acre of $ 3,928 $ 2,424
Commercial/Industrial
Per Acre of $ 28,182 $ 19,449
Hotel > 50Ft
Per Acre of $ 11,076 $ 10,947
Corporate Office
Per Acre of $ 3,935 $ 3,753
Government Use
(2) For purposes of determining the capital impact fee, Single Family shall
include the following zoning districts and any other districts developed for
single family purposes: R-20, R-12.5, R-7.5, R-5.0, R -MH, R-MODH, PRD -
6, PRD -12, and S -P for single family development and conditional uses for
single family development.
ORD. NO. 2
(3) For purposes of determining the capital impact fee, Multi -family shall include
the following zoning districts and any other districts developed for multi-
family purposes: R-3.5, R-3.75, R-TH, R -MF -1, R -MF -2, PRD -6, PRD -12
and S -P for multi -family development and conditional uses for multi -family
development.
(4) For purposes of determining the capital impact fee, Commercial/industrial
shall include the following zoning districts and any other districts developed
for commercial or industrial purposes, except hotel, and corporate office:
LB, CN, CC, HC, CBD, LI, PCD, PID, GU, BP, GV, HGT, RA, and S -P for all
commercial and industrial development and conditional uses for commercial
and industrial development.
(5) For purposes of determining the capital impact fee, Corporate Office shall
include the following zoning districts and any other districts developed for
hotels less than fifty feet (50') in height and corporate office purposes: HCO,
PCD, PID, BP, PO, CC, GU and S -P for hotel less than fifty feet (50') in
height and all corporate office development and conditional uses for hotel
less than fifty (50') in height and all corporate office development.
(6) For purposes of determining the capital impact fee, Hotel shall include the
following zoning districts and any other districts developed for hotel or
corporate purposes: HCO, PCD, PID, BP, CC, GU and S -P for all hotel
development consisting of hotels greater than fifty feet (50') feet in height
and conditional uses for hotel development greater than fifty feet (50') in
height.
(7) The capital impact fees for both water and wastewater are based upon a
Single Family Living Unit Equivalent ("SFLUE") unit of measurement. The
SFLUE is established from the average usage of both water and wastewater
by a single family residence. The six land use categories, Single Family,
Multi -Family, Commercial/Industrial, Hotel, Corporate Office, and
Government Use are each assigned the following SFLUE:
Category
Water
Wastewater
Per unit of
1.00
1.00
Single Family
Per unit of
0.48
0.44
Multi -family
Per Acre of
2.32
2.24
Commercial/Industrial
ORD. NO. 3
Per Acre of 16.62 17.97
Hotel > 50Ft
Per Acre of 6.53 10.11
Corporate Office
Per Acre of 2.32 3.46
Government Use
The assigned SFLUE's are based upon the anticipated usages per unit or
acre for each land use category compared to the usage per single family
residence. Being the basis for the SFLUE, Single Family is assigned an
SFLUE of 1.00. Depending on the amount of water and wastewater usage,
land use categories other than Single Family have a greater or lesser SFLUE
than the SFLUE assigned to Single Family."
Section 4. All of the provisions of Chapter 25, Division 1, Article 11 of the
Grapevine Code of Ordinances relating to Utilities and Services is ratified and approved
except for those provisions that are in conflict with this ordinance.
Section 5. If any section, article, paragraph, sentence, clause, phrase or word
in this ordinance, or application thereto any person or circumstances is held invalid or
unconstitutional by a Court of competent jurisdiction, such holding shall not affect the
validity of the remaining portions of the ordinance; and the City Council hereby declares
it would have passed such remaining portions of the ordinance despite such invalidity,
which remaining portions shall remain in full force and effect.
Section 6. This ordinance shall become effective immediately from and after
its final passage and approval.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS, on first reading on this the 20th day of August, 2002.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS, on second and final reading on this the day of
,2002.
2
F.39290�9
ATTEST:
APPROVED AS TO FORM: