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HomeMy WebLinkAbout2005-05-25 Impact fees workshop City Commission Minutes MINUTES OF IMPACT FEES WORKSHOP DANIA BEACH CITY COMMISSION WEDNESDAY, MAY 25, 2005 - 2:00 P.M. 1. Call to Order Vice-Mayor Flury called the workshop to order at 2:20 p.m. 2. Roll Call Present: Vice-Mayor: Patricia Flury Commissioners: Bob Anton John Bertino City Manager: Ivan Pato City Attorney: Thomas Ansbro City Clerk: Louise Stilson Absent: Mayor: Anne Castro Commissioner: C.K. McElyea City Manager Pato advised Mayor Castro was unable to attend today's workshop. City Attorney Ansbro advised this was initiated by former Vice-Mayor Bob Mikes. He indicated our fees are very low and the Commission will be surprised by what we will be able to do. 3. Power Point Presentation by Dr. James C. Nicholas University of Florida, and Nancy Stroud and Chad Friedman of Weiss, Scrota, Helfman Nancy Stroud advised impact fees are charges against new development that are used to pay for capital facilities that are needed by the new development. They began in the form of water and sewer connection fees, and since the 1980's they have been used for roads, Fire, Police, EMS facilities, and Parks. She noted impact fees can be used for the capital costs of improvements to facilities, but not toward employee salaries. The fee is generally collected when the building permit is issued. Local government cannot collect more than a fair share; however, they can collect anything less than the fair share. She indicated impact fees can be used for expansion to an existing facility; to resurface roads; and for an expansion to City Hall. Ms. Stroud introduced Dr. Jim Nicholas, Professor of Urban and Regional Planning and affiliate Professor of Law at the University of Florida. He is considered the expert on calculating impact fees around the country, and has set the standard for how jurisdictions create and implement impact fees. Dr. Jim Nicholas noted impact fees are a one time charge on new construction to pay a share of the capital costs of providing public infrastructure to those developments. The City currently has impact fees for Parks & Recreation, Fire & Rescue, and Police Protection; we could look at Roads and Administrative Space which would be adopted by Ordinance and should take a few months to develop and adopt. He advised impact fees may be no more than the City's infrastructure costs that are reasonably attributable to the new development, and the new development required to pay the impact fees must benefit from the expenditure of those fees. He proposed the City implement impact fees based on building size measured in square feet of floor area. Parks and Recreation The City has 70.67 acres of Parks with a value of$18,900,270; the population served is 33,670, which includes tourists and peak population (seasonal population), which relates to $1,249.57 per home. By implementing impact fees on square footage the cost would be $1.479 per square foot. It is proposed the charge be applied to homes, hotels and motels, but not to commercial or office structures because we have no evidence that commercial or office structures make use of the recreational facilities. Dr. Nicholas compared the City fee with counties in Florida because getting this information for cities is very difficult. He indicated a number of the counties did not adopt the maximum fee allowed because it was more than they wished to charge. • Laurence Leeds, Director of Community Development, remarked the existing fee is based on a formula that relates to the appraised value of the land and the formula tied into the County Comprehensive Plan. He noted we are in the top third highest cities in Broward County. He indicated Dr. Nicholas' formula is easier to administer than our current fee, but our current fee will produce different results than the proposal, particularly if the land is very expensive. Our current fee also requires the dedication of land; he would like to see our current Ordinance consolidated with this new fee. City Manager Pato commented the City is in a unique position to charge a fair fee regardless of what other cities around us are doing. He does not see that as being the competition. The City has the opportunity to redevelop because we have the location because we are the only place left in Broward County that has not been touched. He proposed the City go just below the highest fees possible because developers will come here, regardless of the fees. The City needs to expand the services offered and improve the facilities that have been neglected for years. He does not think being the highest will stop anyone from coming here. Fire & Rescue The Replacement value for Fire & Rescue is $7,079,225; population served is 33,670; property protected is $20,043,475, which relates to per square foot of floor area at $0.353 per foot. The maximum legal fee the City could impose would be $0.303 per foot for Fire & Rescue. • Minutes of Impact Fees Workshop 2 Dania Beach City Commission Wednesday,May 25,2005—2:00 p.m. • Police Protection Dr. Nicholas noted we have no value for the buildings, so there is no way we can include it; this is a shortcoming that needs to be addressed in the future. The Police costs that we do know have a total value of$2,201,158, which protects 20,043,475 square feet. The maximum legal fee the City could impose would be $0.11 per foot. He remarked Police Buildings run at $192 per foot, plus land; Fire Stations are running almost exactly the same. Mr. Nicholas indicated the Commission had an adequate base to proceed to adopt an impact fee at or below these numbers. He stated the calculations that he prepared are in conformity with what he has done for other communities and what is Florida Law. 4. Discussion Vice-Mayor Flury questioned how a new Ordinance would affect current projects. Ms. Stroud responded the legal answer is until you have a building permit, if that is where you collect the fees, you are not let off. The courts have said you can charge the fee even if the person has already gone through Site Plan and have already made their financial arrangements. The political answer is it is up to the Commission; they decide if they are going to grandfather in persons and where they are going to collect the fee. She remarked impact fee law is relatively new and has evolved for twenty years. She thinks either formula, the current City formula, or the proposed formula could be supported in court. City Attorney Ansbro remarked we could adjust the fees every six months until we get it right. He indicated we were losing serious money, and that people need to pay their fair share. Commissioner Bertino suggested Mr. Leeds check to see if we will come out ahead with the new process. Ms. Stroud explained the Legislature was considering an impact fee build-out which would restrict the ability of local governments to enact impact fees. She advised they established a committee to look at impact fees and she thinks we can expect that next year we would have the same type of legislation. She indicated they have been advising cities to make changes before the Legislature meets next year. She understands the Commission may want to keep the existing Park impact fees because in some circumstances under the existing code, the City would collect more fees; however, she does not think this is true for Police & Fire fees. She advised the Ordinance could require an annual review and update for the fees. Commissioner Anton commented it is clear that there is consensus from the Commission, and they are all interested in looking at this. His issue is that comparisons in the presentation were with county figures, not neighboring cities. Commissioner Bertino questioned if a new Ordinance would insulate us against new legislation. He asked if the same language could be inserted into our current Park Impact Fee Ordinance. • Minutes of Impact Fees Workshop 3 Dania Beach City Commission Wednesday,May 25,2005—2:00 p.m. • Ms. Stroud responded Statutes are not applied retroactively, so the City would be protected because the existing Ordinances would be grandfathered-in. Vice-Mayor Flury remarked we do not know if the Park fees would be less with the new formula. The bigger issue is if we do not do Park fees now, we may not have the opportunity to adjust it on an annual basis. Ms. Stroud commented the existing Ordinance is based on the value of the land, and is a different system. Even if there were an annual review it would not really change the result. Mr. Leeds advised there are properties out west that could have the opposite result, and the new Ordinance could be more money. The point is we need to look at the whole picture; his concern is that we should go with something that is consistent with the other criteria for Police & Fire; otherwise, we would be hung up on using this particular Ordinance that is based on something twenty years old. City Manager Pato recommended to the Commission that they seriously think about not being penny-wise and pound-foolish. This is about having a modern document in place and allows us to move forward as things change. In the real world, we need to look forward at the needs down the road and not what satisfied us twenty years ago. He asked the Commission to move forward on this as quickly as possible so that we could plan our Capital Improvement Projects with the additional funds. He thinks we have a great opportunity to bring forward a modern document that allows this City to move forward and not be held back. Commissioner Anton remarked the consensus is to move forward, but the Commission want to see the other figures. City Manager Pato thanked the Commission and indicated we would bring the information forward. Ms. Stroud questioned if they should pursue the City Administration Fee and Road Impact Fee. Commissioner Bertino remarked anything that can be impacted should be looked at. Vice-Mayor Flury wants the process to be phased in, as opposed to waiting for a complete package. Ms. Stroud commented some cities phased-in the maximum fee over several years. • Minutes of Impact Fees Workshop 4 Dania Beach City Commission Wednesday,May 25,2005—2:00 p.m. • 5. Adjournment Vice-Mayor Flury adjourned the workshop at 3:40 p.m. CITY OF DANIA BEACH ATTEST: ANNE CASTRO MAYOR-COMMISSIONER LOUISE STILSON CITY CLERK Approved: June 14, 2005 • • Minutes of Impact Fees Workshop 5 Dania Beach City Commission Wednesday,May 25,2005—2:00 p.m.