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HomeMy WebLinkAboutR-2005-150 Impact Fee Schedule RESOLUTION NO. 2005-150 A RESOLUTION OF THE CITY OF DANIA BEACH ADOPTING RECITALS; ESTABLISHING THE FEE SCHEDULE FOR FIRE AND RESCUE, POLICE, AND ADMINISTRATIVE IMPACT FEES; PROVIDING FOR CONFLICTS; FURTHER, PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, on September 27, 2005 the City Commission of the City of Dania Beach (the "Commission") conducted a duly noticed hearing and adopted ordinance 42005-037 creating article VII of Chapter 19 of the Code of Ordinances (the "Code") establishing fire and rescue, police, and administrative impact fees (collectively, "impact fees"); and WHEREAS, pursuant to Section 19-84 of Article VII of the Code, impact fees are to be assessed in accordance with a fee schedule adopted from time to time by resolution of the Commission; and WHEREAS, the Commission finds that these impact fees are equitable and appropriate to help finance the capital costs of additional and expanded facilities needed to serve new development; and WHEREAS, Ordinance #2005-037, is incorporated by this reference; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA: Section 1. That the recitals contained in the preamble to this Resolution are incorporated by reference into it. Section 2. That the City Commission establishes the following impact fees which shall be assessed on all new development: �.Im'�act�Fee�Ty 'e' `�� ���ImpactryFee Am_ ount�`fi �` Fire and Rescue $.389/sq. ft. Police $.184 /sq. ft. Administrative $.162/sq. ft. Total Fee assessed $.735 /sq. ft. Section 3. That all resolutions or parts of resolutions in conflict with this Resolution are repealed to the extent of such conflict. Section 4. That this Resolution shall become effective immediately upon its passage and adoption. PASSED AND ADOPTED on September 27, 2005. co- ANNE CASTRO MAYOR-COMMISSIONER ATTEST: ROLL CALL: COMMISSIONER ANTON - YES f COMMISSIONER BERTINO - YES COMMISSIONER MCELYEA - YES VICE-MAYOR FLURY - YES LOUISE STILSON MAYOR CASTRO - YES • CITY CLERK APPROVED AST FORM AND CORRECTNESS BY: 14n THOM S J. SBRO CITY ATTORNEY 9 2 RESOLUTION #2005-150 ORDINANCE NO. 2005-037 AN ORDINANCE OF THE CITY OF DANIA BEACH, FLORIDA, CREATING ARTICLE VII ENTITLED "IMPACT FEES"OF CHAPTER 19 OF THE CITY OF DANIA BEACH CODE OF ORDINANCES TO ESTABLISH FIRE & RESCUE, POLICE,AND ADMINISTRATIVE IMPACT FEES INCLUDING PROVISIONS FOR FINDINGS; FOR ESTABLISHMENT OF FEES; FOR DEFINITIONS; FOR IMPOSITION OF FEES; FOR PAYMENT; FOR DISPOSITION OF FEES; FOR ADOPTION OF THE SUPPORTING IMPACT FEE REPORT;PROVIDING FOR REPEAL OF ARTICLE V "PUBLIC SAFETY FACILITIES IMPACT FEE" OF CHAPTER 20 "POLICE" OF THE CITY OF DANIA BEACH CODE OF ORDINANCES; PROVIDING FOR REPEAL OF SECTION 9.31 "FIRE PUBLIC SAFETY FACILITIES FEE" OF ARTICLE IX "ADMINISTRATION AND ENFORCEMENT" OF CHAPTER 28; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; FURTHER, PROVIDING FOR AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA: Section 1. That Chapter 19 "Planning and Development"of the Code of Ordinances of the City of Dania Beach ("City") is amended by the creation of Article VII entitled "Impact fees," to read as follows: Article VII. Impact Fees Sec. 19-81 Findings. The Dania Beach City Commission("Commission")makes the following findings in support of the creation of this article and the adoption and imposition of Fire and Rescue, Police, and Administrative impact fees: (a) New development and growth in the City can add to and help maintain the quality of life in the City under a balanced growth management program. (b) Effective growth management is promoted when adequate public facilities are available to serve new growth coincident with the impacts of that growth. • (c) The Commission has caused an Impact Fee Report in support of the impact fee ordinance to be completed and submitted to the City. (d) As set forth in the Impact Fee Report, 1. New development should assume a fair share of the cost of providing adequate Fire and Rescue, Police, and Administrative facilities. 2. Impact fees are an equitable and appropriate means to help finance the capital costs of additional and expanded facilities needed to serve new development. (e) The implementation of Fire and Rescue,Police,and Administrative impact fees,that requires new development to contribute its fair share of the cost of capital improvements necessitated by growth caused by such development, promotes the general welfare of all City residents. (f) The provision of Fire and Rescue, Police, and Administrative facilities which are adequate for the needs of growth caused by new development promotes the general welfare of all City residents and constitutes a public purpose. (g) The imposition of Fire and Rescue, Police and Administrative impact fees, that requires new development to contribute its fair share of the cost of required capital improvements, serves as a regulatory tool that promotes the timing and management of growth in the City. (h) Ad valorem tax revenue and other revenues will not be sufficient to provide the additional capital improvements for the Fire and Rescue,Police,and Administrative facilities which are necessary to accommodate new development. (i) The Impact Fee Report provides an adequate and lawful basis for the adoption and imposition of Fire and Rescue, Police, and Administrative facilities impact fees in accordance with this article. See. 19-82 Established. As a condition of the issuance of a building permit for the initial construction of or isubstantial reconstruction or expansion of a building,the person, firm or corporation who or which has applied for the building permit shall pay to the City, the Fire and Rescue, Police, and j Administrative impact fees as is set forth in the provisions of this article. 2 ORDINANCE 42005-037 Sec. 19-83 Definitions. For the purpose of this article,certain terms and words are defined. Additionally,words used ` in the present tense shall include the future; the singular number shall include the plural, and the plural the singular: Building permit shall mean a permit issued by the Building Official for the construction, enlargement, alteration, modification, repair, movement, demolition, or change in the occupancy of a building or structure. Capital improvements shall mean physical assets constructed or purchased to provide, improve or replace a public facility and which are large scale and high in cost. The cost of a capital improvement is generally nonrecurring and may require multi-year financing. Feepayer shall mean any person, firm, or corporation intending to commence new development and,during the life of the development, applies for the issuance of a building permit. Impact fee report shall mean the Fire and Rescue,Parks and Recreation,Police,and Administrative Impact Fees Report prepared by James C.Nicholas,Ph.D.,dated August 20, 2005, which establishes the basis for the fair share of capital facilities costs attributable to new residential development based upon standard and appropriate methodologies, and a copy of which is attached to and incorporated by reference into the Ordinance creating this article: New development shall mean the carrying out of any building activity or the making of any material change in the use or appearance of any building or structure or land, which results in an additional impact or demand on Fire and Rescue, Police, and Administrative facilities. Sec. 19-84 Imposition of Fees. There is assessed,charged, imposed, and enacted Fire.and Rescue,Administrative, and Police impact fees on all new development occurring within the City. These fees will be assessed,charged,or imposed in accordance with the fee schedule adopted from time to time by resolution of the Commission. Sec. 19-85 Payment. i The impact fees shall be paid to the City by the Feepayer at the time the building permit is issued. Sec. 19-86 Disposition of Fees. i 4 All fees collected by virtue of this article and any interest earned on them shall be deposited 3 ORDINANCE 42005-037 in three (3) special and separate trust accounts to be designated, "Fire and Rescue Impact Fees Account,""Police Impact Fees Account,"and"Administrative Impact Fee Account,"respectively. • / Funds from these accounts may be expended for land acquisition for the respective facilities. Funds Y P q p from these accounts may also be expended for the construction of capital improvements for the respective City Fire and Rescue, Police, and Administrative facilities, and the remodeling or enlargement of existing facilities and the equipping of same,all of which being necessitated by the impact of new construction and additional population. However,funds withdrawn from an account must be expended on the specific facilities for which the fees were collected. In addition to the foregoing, funds from these accounts may be expended for retirement of loans and/or bonds that may be issued to finance the capital improvements herein contemplated. Furthermore, these funds may be expended for architectural, engineering, legal and other professional fees and expenses related to capital improvements. However,the City shall not expend funds from any of these accounts for maintenance,repairs,salaries,or other noncapital or noncapital- related items. Each and every expenditure of funds from these accounts shall be authorized by motion of the Commission. i i Section 2. The Commission adopts and incorporates by reference into this Ordinance the report entitled "Fire and Rescue, Parks and Recreation, Police, and Administrative Impact Fees" prepared by James C. Nicholas, Ph.D., dated August 20, 2005, including the assumptions, • ' conclusions,and findings set forth in the report. A copy of the report is attached to this Ordinance as Appendix A. Neither this section nor the report shall be codified in the City Code. Section 3. Article V "Public Safety Facilities Impact Fee" of Chapter 20 "Police" is repealed. Section 4. Section 9.31 "Fire Public Safety Facilities Fee"of Article IX"Administration and Enforcement" of Chapter 28 is repealed. Section 5. That, except as amended above, all other provisions of Chapter 19, Chapter 20 and Chapter 28 of the Code of Ordinances of the City of Dania Beach, Florida shall remain in full force and effect. Section 6. That all ordinances or parts of ordinances and all resolutions or parts of resolu- tions in conflict with this Ordinance are repealed to the extent of such conflict. 4 ORDINANCE#2005-037 Section 7. That if any section,clause, sentence or phrase of this Ordinance is for any reason held invalid or unconstitutional by a court of competent jurisdiction,the holding shall not affect the validity of the remaining portions of this Ordinance. Section 8. That this Ordinance shall be in force and take effect immediately upon its passage and adoption. PASSED on first reading on September 13, 2005. PASSED AND ADOPTED on second reading on September 27, 2005. ANNE CASTRO MAYOR-COMMISSIONER ATTEST: ROLL CALL: COMMISSIONER ANTON— YES COMMISSIONER BERTINO - YES LOUISE STILSON COMMISSIONER MCELYEA - YES CITY CLERK VICE-MAYOR FLURY - YES MAYOR CASTRO - YES APPROVED AS TO FORM AND CORRECTNESS: a THOMAS f. AN BRO CITY ATTORNEY 5 ORDINANCE#2005-037 CO Fire & Rescue, Parks Recreation , Poluce • Prote' cflon and AdmionistratiVe Facilities Impact Fees Prepared for The City of Dania Beach, Florida by James C. Nicholas, PhD • August 20, 2005 1 m 1 . Development Impact Fees Development impact fees have become a commonly used source of revenue to supplement available means of funding capital facility improvements needed to accommodate new development. Impact fees grew out of two rather commonly held notions: 1. Generally, new development does not pay the cost of capital facilities needed to accommodate the residents and businesses from standard sources of revenue, and 2. It would be inequitable to impose the cost of extending facilities to new developments on existing residents and taxpayers. In Florida, both the courts and the Florida Statutes acknowledge local governments' authority to impose equitable impact fees. Impact fees are not taxes and are governed by .a standard that has become known as the "dual rational nexus test." This test has two major components: • 1. That the facilities to be charged to new development as impact fees must be needed to serve that new development, and 2. That the funds collected as impact fees must be earmarked and spent for the purposes for which they were collected. Implied in this test is that any impact fee cannot exceed a pro rata or proportionate share of the anticipated costs of providing new developments with capital facilities. This memorandum will set out how the proposed impact fees for the City of Dania Beach were calculated. The method used complies with the dual rational nexus test, first by establishing or identifying the demand for facility expansions that new development will require, and then calculating the City's cost of providing those facilities on a pro rata basis. After review of these methods and data, if the City finds the data and methods are reasonable, the City should not adopt any impact fees that exceed the amounts set out herein. ' See Hollywood, Inc. v. Broward County,431 So.2d 606(Fla.4"DCA 1983). In this opinion the Court observed: [H Je discern the general legal principle that reasonable dedication or impact fee requirements are permissible so long as they offset needs sufcientlt,attributable to the subdivision and so • long as the funds collected are sufficiently earmarked for the substantial benefit of the subdivision residents. 2 See Section 163.3202(3), Florida Statutes. Dania Beach Impact Fees 1 f 2. Demographic Parameters The first data needed to calculate impact fees are demographic data. The relevant data for Dania Beach are shown below. The first row is headed "Resident Population." This is the number of people actually or projected to be in residence in the City at the given time. The U.S. Bureau of the Census must count people according to their official TABLE 1 DEMOGRAPHICS DANIA BEACH 1990 2000 2001 2002 2003 2004 Resident Population 13,024 20,061 20,765 27,192 27,270 28,080 Peak Population 17,306 24,731 24,831 32,729 32,611 33,798 Avg House Hold size 2.248 2.280 2.225 2.226 2.225 2 2226 Total HousingUnits 7,699 10,847 11,162 14,703 14,659 15,183 Occupied Units 5,794 9,012 9,334 12,215 12,258 12,614 House Holds 5,794 9,012 9,334 12,215 12,258 12,614 SOURCE: www.census.gov/americanfactfinder/ NOTES: (1) Data for 2001 and 2004 are estimated, (2)Annexations occurring in 2001 account for the sharp increase in population. places of residence since the original and still important objective of the census is to count the population for purposes of allocating seats in the U.S. House of Representatives. This means that there may be many people actually present at a particular time other than just the official residents. These other people are termed "seasonal"and they are shown as included with permanent residents in All Residents. This is the number of people needing services from the City—the sum of the permanent residents and the seasonal residents. Table 1 shows the occupancy of dwelling units in Dania Beach. Those classified as "occupied" are the residences of the permanent residents shown in Table 1. The U.S. Bureau of the Census established the convention of naming dwellings that are seasonally occupied as "vacant." In this context, vacant means not occupied by permanent residents. It does not mean that the dwelling is not occupied. Table 2 shows the quantity of building floor area within Dania Beach by type of building. These data are taken from the Broward County Property Appraisers' rolls and complied by the GeoPlan Center at the University of Florida. The size of buildings will be used as the basis to measure impact and to assess costs and impact fees. The premise is that the bigger the building the greater the demand for public services and facilities. Dania Beach Impact Fees 2 TABLE 2 SQUARE FEET OF DEVELOPED FLOOR AREA BY LAND USE TYPE DANIA BEACH Floor Area FT2 Residential 11,587,798 Tourist 1,192,704 Retail 1,837,828 Office 1,494,751 Industrial 2,969,394 Institutional 869,883 Other 91,117 Total 20,043,475 SOURCE: University of Florida, GeoPlan Center, July 2004. Dania Beach Impact Fees 3 3. Fire & Rescue The existing provision of fire and rescue facilities is shown in Table 3. The City provides two fully equipped station to serve the existing community. These stations have three pumpers, four rescue vehicles, one squirt truck and eleven other vehicles. The stations and vehicles are fully equipped. These stations serve a population of33,798 and building area of 20 million square feet. The facility cost per capita is $260.60 and $.439 pereach square foot of floor area. As the City grows, additional demands for fire protection and rescue can be expected at a cost of$.439 for each square foot or floor area added. The City has outstanding debt for fire facilities, thus reducing to a Citizens' Equity of $7,799,308 and a net cost of$230.77 per capita and $.389 per foot of floor area. This adjustment is made in consideration of the fact that when new developments occur they TABLE 3 FIRE& RESCUE PARAMETERS DANIA BEACH Capital investments: Unit Replacement Cost Value Station# 1 Buildin - 11,000 FT2 $2,500,000 Hollywood Station Buildin - 10,920 FT2 $1,689,979 A aratus Pumpers 3 at $480,000 $1.440,000 Rescue 4 at $180,000 $720,000 50' S uirt 1 at $840,000 1 $840,000 Vehicles . 8 $200,000 E ui ment& Gear $682,150 Medical E ui ment $335,475 Communications & Misc M2010431475 Total Capital Assets Population Served Per Capita Property Protected -FT2 Per FT2 of Floor Area OutstandingDebt for Fire Citizens Equity Per Capita .77 Per FT2 of Floor Area 89SOURCE: Dania Beach, Fire- Rescue, June 2004 and July 2005. Leased from City of Hollywood. Item carried at apportioned cost of construction, which is consistent with capitalized lease payments. Dania Beach Impact Fees 4 will be added to the tax rolls and make payments toward the outstanding debt. Such payments can be considered to be payments toward fire & rescue capital costs and thus should be credited against the cost of provision. Florida law limits costs that may be shifted to new developments to no more than a pro rata share of reasonably anticipated costs of expansion. In the case of Dania Beach's fire and rescue services, that pro rats share is $0.439 per square foot of floor area. However, new developments, along with existing properties, will be assessed the cost of retiring the $1,008,296 in outstanding debt and new development will thereby pay towards the cost of existing fire and rescue capital facilities. To avoid exceeding a pro rata share of costs, replacement value is reduced by the outstanding debt, to the value of fire and rescue capital facilities actually owned by the citizen of Dania Beach, in establishing the pro rata share of costs to be borne by new development. Doing this prevents an over-assessment of costs when impact fees and debt service payments are added together. Based on these data, it is recommended that Dania Beach's Fire & Rescue impact fee not exceed $.389 per square foot of floor area. Dania Beach Impact Fees 5 4. Parks & Recreation The existing inventory of park and recreational facilities is shown in Table 4. The level of service for parks and recreation is measured as acres per 1,000 (peak) population. The 70.67 acres of developed city parks constitutes a level of service of 2.099 acres per 1,000 population or 91.4 square feet of park area per capita. The City grows, it wi 11 need to TABLE 4 PARK INVENTORY DANIA BEACH Park Acres Land Value improvements Facilities Buildings Thomas Park Land 4.57 $435,120 Facilities $405,000. Recreation Bldg $296,000 Pool Restroom $66,800 Pump House $15,900 Trailer Office $81,600 Baseball Restroom $22,200 Baseball Announcer $58,600 Storage $6,600 I.T. Parker Center Land 2.00 $1,025,000 Facilities $275,000 Community Center $888,100 Grounds $3,078 Frost Park Land 8.55 $1,020,100 Facilities $515,000 Recreation Bldg $822,400 Optimist Bldg $49,900 Ocean Park Beach Land 3.00 na Facilities Fishing Pier $1.640,000 Pier Extension $324,000 Guard Shack $1 1,500 North RestroomMT , Central Restroom Lifeguard Towers Chichee Huts Life uard HQ Meli Griffin Park Land 9.70 $652,340 Facilities $1,595,000 Dania Beach Impact Fees 6 TABLE 4 PARK INVENTORY DANIA BEACH Park Acres Land Value Improvements Facilities Buildings Pool- small $64,280 Pool $1,172,080 Recreation Bldg $303,600 Storage $24,100 Restroom $28,700 Recreation Bldg $68,100 Electrical Bldg _ $22,100 Pump House $31,500 Ti ertail Park Land 36.82 $6,004,890 Facilities $325,000 Pavilion $39,800 Byrd Park Land 1.81 $251,490 Facilities $85,000 Northside Garden Park Land 0.39 $73,980 Facilities $90,000 Adler Park Land Facilities $80,000 Mullikin Park Land 0.58 Facilities $50,000 Griffin Park Land 2.60 $182,000 $500,000 Facilities $1,200 Sun Garden Isles Land 0.65 $782,450 Facilities Whiskey Creek Park Land Facilities $200,000 TOTALS 70.67 $10,427,370 $5,360,638 $5,059,329 Acres per 1,000 Population 2.091 Park & Recreation Cost $10.427,370 $10,419,967 Outstanding Debt $0 $0 Net Park & Recreation Costs $10,427,370 $10,419,967 Population Served 33,798 33,798 Cost per Capita $308.52 $308.31 Cost per Dwelling Unit $686.78 $586.30 • Cost per Square Foot $0:816 G0.815 SOURCE: Dania Beach, Finance Department, June 24, 2D04 and Planning Dept, September 22, 2004.. Dania Beach Impact Fees 7 provide 91.4 square feet of fully developed park area for each person at a gross cost of $616.83. The net would be reduced to reflect outstanding debt that new development ",ill have to pay except there is no outstanding debt so the net cost is the same-as the gross cost of$616.83 because there is no outstanding debt. This equates to a cost of$1,373.08 per dwelling unit or$1.631 per heated or air conditioned square foot of residential floor area. Table 4 breaks park & recreation costs out between land and improvements. Table 5 summarizes these costs, in total and by category. TABLE 5 PARK & RECREATION COSTS Park & Recreation Cost $20,847,337 Land $10,427,370 Facilities & Buildings $10,419,967 Population Served 33,798 Per Capita $616.83 Residential &Tourist Floor Area 12,780,502 Total Per Square Foot $1.631 Land per Square Foot $0.816 Facilities per Square Foot $0.815 At present the City has park dedication requirements. If this policy is continued, only the facilities component could be charged as a park and recreation impact fee. Dania Beach Impact Fees 8 5. Police Protection The cost of police capital facilities is set out in Table 5. The City has two police stations and total police protection assets of$3,682,155. The value of these assets equates to $0.184 per square foot of floor area provided with police protection. TABLE 5 POLICE PARAMETERS DANIA BEACH Capital Investments: Cost Vehicles $1,572,867 Buildings 100 W. Dania Beach Blvd 5,176 W$3,682,155 5,200 803 NW 1st Street 4,485 FTI2,580 Buildingcontents 5,958 Land - Communications Equipment Other Equipment 5,550 Total Capital Assets Outstanding Debt for Police $0 Citizens Equity $3,682,155 • Properties protected -FT' 20,043,475 Cost per FT' 1 $0.184 SOURCE: Dania Beach, Police Department, October 2004 and June 2005. Dania Beach Impact Fees 9 I I i i 6. Administrative Facilities The appraised value of administrative buildings is shown in Table 6. The building at 100 W. Dania Beach Boulevard is partially devoted to police usage and that portion as been subtracted out here so that there is no double counting fro impact fee purposes. The same is true for 803 NW Is' Street. The appraised value of the administrative facilities is $3,243,070. The value of these assets equates to $0.162 per square foot of floor area service by the City of Dania Beach. TABLE 6 ADMINISTRATIVE FACILITIES DANIA BEACH Ca italInvestments: Cost 100 W Dania Beach Blvd; Entire Building $2,602,120 Allocated to Police $1,035,200 Net Administrative * $1,566,920 1200 Stirling Road $200,030 1399 Stirling Road $13,500 803 NW 1st Street 4,400 FT • Entire Building $880,000 Allocated to Police $632,580 Net Administrative ` $247,420 Buildin contents Land $1,215,200 Other E ui ment Total Ca ital Assets $3,243,070 Outstandin Debt for Admin Facilities $0 Citizens Equity $3,243,070 Properties Served -FT $20,043,475 Cost per FT2 $0.162 SOURCE: Broward County Property Appraiser, as provided by City of Dania Beach, July 2005. • Dania Beach Impact Fees 10