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it DATE: February)6, 1998 TO: JAMES E. CHANDLER COUNTY ADMINISTRATOR FROM: DONALD R. HUBBS, P. DIRECTOR OF UTILITY VICES SUBJECT: REQUEST FOR REDUCED CAPACITY CHARGES/ NATIONAL HOUSING CORPORATION/ RIVER PARK PLACE A request has been received by Indian River County regarding a reduction in water and wastewater capacity charges (Impact Fees). Please see the attached correspondence from Collins, Brown et al. River Park Place is a proposed, 144 unit, residential apartment complex catering to senior citizens. Due to clientele demographics, apartment square footage and other factors, the builder, Mr. Bill Whitworth of the Houston- based Whitworth Company, believes that a reduced impact fee should be applied to his development. Staff has been discussing this issue with the developer and his representatives for some time and believes that a reduction in fees is untimely and inappropriate. Many years ago, as Indian River County was developing a water and sewer system, a decision was made to provide a high level of service, reflected in the County's Comprehensive Plan and in the 1991 Utility User Charge Study, upon which Chapter 201 of the County Code is based. Chapter 201, among other things, defines the Equivalent Residential Unit (ERU) and assigns the minimum ERU for a particular land use. With this level of service commitment in mind, the County has incurred considerable debt requiring the collection of capacity charges, in full, throughout the projected ten (10) year planning period. On January 28, 1997, the County and Gifford Elderly Housing, Inc., representing Sunset Apartments, entered into an agreement to conduct a pilot study to determine actual peak hourly and daily water consumption. The information garnered from such a pilot study could contribute to the establishment of new ERU classes. A provision in the Sunset Apartments agreement allowed for reduced capacity charges based upon the results of the pilot study. Subsequently, concerns had been expressed by representatives of mobile home parks asserting that actual consumption was less than 250 gallons per day. Currently, one ERU equates to a range of 0 to 250 gallons per day. As a result, the Board of County Commissioners (BCC) authorized a Request For Proposals for consulting services to analyze and submit recommendations regarding the current fee structure. A major thrust of the proposed study relates to impact fees. Following interviews by the BCC, Hartman and Associates was selected as number one for contract negotiations. Staff is currently finalizing a proposed agreement to submit for Board consideration. The circumstances surrounding the River Park Place project are similar in that the developer has indicated, based on studies of actual consumption, that anticipated consumption will be at the low end of the range prescribed in the current structure. February 17, 1998 42