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HomeMy WebLinkAbout01/22/2014r (t MINUTES ATTACHED BOARD OF COUNTY COMMISSIONERS INDIAN RIVER COUNTY, FLORIDA IMPACT FEE UPDATE WORKSHOP AGENDA WEDNESDAY, JANUARY 22, 2014 - 1:30 P.M. County Commission Chamber Indian River County Administration Complex 1801 27th Street, Building A Vero Beach, Florida, 32960-3388 www.ircgov.com COUNTY COMMISSIONERS Peter D. O'Bryan, Chairman Wesley S. Davis, Vice Chairman Joseph E. Flescher Bob Solari Tim Zorc District 4 District 1 District 2 District 5 District 3 Joseph A. Baird, County Administrator Dylan Reingold, County Attorney Jeffrey R. Smith, Clerk to the Board 1. CALL TO ORDER 1:30 P.M. 2. PLEDGE OF ALLEGIANCE Commissioner Peter D. O'Bryan, Chairman 3. PRESENTATIONS A. Staff Overview of Impact Fees B. Consultant Presentation of Impact Fee Update Draft Technical Report (Initial Report) 4. QUESTION AND ANSWER SESSION A. Board of County Commissioners •5. B. Members of the Public WRAP-UP January 22, 2014 — Impact Fee Update Workshop Page 1 of 2 • JEFFREY R. SMITH Clerk to the Board January 22, 2014 INDEX TO MINUTES OF THE IMPACT FEE UPDATE WORKSHOP Wednesday, January 22, 2014, 1:30 p.m. Tindale -Oliver and Associates, Inc. Presentation 1. CALL TO ORDER 1 1 2. PLEDGE OF ALLEGIANCE 2 3. PRESENTATIONS 2 3.A. STAFF OVERVIEW OF IMPACT FEES 2 3.B. CONSULTANT PRESENTATION OF IMPACT FEE UPDATE DRAFT TECHNICAL REPORT (INITIAL REPORT) 2 TRANSPORTATION 3 CORRECTIONAL FACILITIES 4 SOLID WASTE FACILITIES 4 PUBLIC BUILDINGS 4 LIBRARIES 5 EMERGENCY SERVICES 6 LAW ENFORCEMENT 6 EDUCATIONAL FACILITIES — NOT INCLUDED 7 PARKS AND RECREATION FACILITIES 7 Impact Fee Update Workshop January 22, 2014 1 ® JEFFREY R. SMITH, CPA, CGFO, CGMA • January 22, 2014 MINUTES OF PUBLIC WORKSHOP IMPACT FEE UPDATE WEDNESDAY, JANUARY 22, 2014, 1:30 P.M. The Board of County Commissioners of Indian River County, Florida, held a Public Workshop at the County Commission Chambers, 1801 27th Street, Vero Beach, Florida, on Wednesday, January 22, 2014, to provide an Impact Fee Update. Present were Chairman Peter D. O'Bryan, Vice Chairman Wesley S. Davis, and Commissioners Joseph E. Flescher, Bob Solari, and Tim Zorc. Also present were County Administrator Joseph A. Baird, County Attorney Dylan Reingold, and Deputy Clerk Maria I. Suesz. Also present were Community Development Director Stan Boling, Metropolitan Planning Organization Representative Phil Matson; Director of Public Works Chris Mora, and Management and Budget Director Jason Brown. From Tindale -Oliver and Associates, Inc. were Chief Executive Officer Steve Tindale, and Associate Principal Nilgun Kamp, AICP, and other groups involved from the community. 1. CALL TO ORDER Chairman O'Bryan called the meeting to order at 1:30 p.m. Impact Fee Update Workshop January 22, 2014 1 0 reflect all impact fee variables of Facility Inventory, Level of Service (LOS), Cost, Credit and to • Demand, and the Affordable Growth Strategy. TRANSPORTATION Mr. Tindale displayed a chart that defined several facilities built since the last Study and he defined the future projects in the County's Capital Improvement Plan (CIP). He explained each of the components of the formula used: Demand x Cost — Credit = Impact Fee. He showed another chart of the variations in the data, and using current data based on a 2,000 sq. ft. single family residence, the Impact Fee decreased to less than 5%. He said the County's construction cost component is below statewide standards, equaling $2.6 million dollars for the total cost per lane mile. He explained how deflated the gas tax is today, pointing out that the State indexes their gas tax, but the County is not allowed to. He mentioned that this is a major issue when you add inflation, and when you have the fleet efficiencies projected, the gas tax erodes. Under the credit component he discussed the revenue sources, displaying a chart of the rate comparison. He said the Board could discuss at a later workshop maintaining the current LOS, but he wanted to point out that the rate comparison is designed to maintain a LOS -D. A lengthy discussion was led by Mr. Tindale regarding the Affordable Growth Strategy, and he displayed several charts that depicted different scenarios of the Affordable Growth Strategy. He said the strategy uses non -impact fee revenue projections, and allocates a reasonable portion of those revenues toward future investments in Capital, allowing the County to buy down non-residential impact fees to spur economic development, while keeping residential impact fees at the same level, and maintaining adequate LOS for infrastructure. After a discussion on the Affordable Growth Strategy, Chairman O'Bryan presented an example to clarify that if the charts indicated a growth rate of 2%, the County could maintain its LOS. Ninety -percent of the cost would come from impact fees, and 10% could be from other revenue sources. Impact Fee Update Workshop January 22, 2014 3 • • • Ms. Kamp stated that the County has built the County Administration Building Complex, the Transit Administration Building, Supervisor of Elections Building, and the Emergency Operations Center since the last study, and there are plans to build new courtroom facilities in the next five years. There was a methodology difference on the demand side, because in this study they used the 24-hour functional population instead of the 11 -hour operation. The inventory increased tremendously and the cost per person increased 16%, the credit decreased, and the demand increased significantly due to the methodology change. The full calculated fee for single family residential land use is $750, and all the non-residential fees decreased. Since the credit is so much smaller, this is a case where you need most of the fee to maintain the adopted LOS standard. LIBRARIES Ms. Kamp, while displaying several charts, stated that the Brackett Library was built since the 2005 study, and no future projects are anticipated. Inventory increased and the actual LOS achieved was an increase, but the adopted standards did not change, so they used the same adopted LOS standards. The fee increase was driven mostly by reduction and credits. The cost increased 9%, from $500 to $700 for a single family home. When they did the affordable growth, since there is so little outside funding, most of the fee is needed to maintain the adopted LOS. Budget and Management Director Jason Brown and Administrator Joseph Baird responded to Commissioner Zorc's inquiry that there is no library facility expansions scheduled over the next five years, but with technology changes there will be an automation transformation in the libraries. Impact Fee Update Workshop January 22, 2014 5 EDUCATIONAL FACILITIES - NOT INCLUDED (Clerk's note: The Educational Facilities was not discussed at this workshop.) PARKS AND RECREATION FACILITIES Ms. Kamp relayed that the North County Ball Fields, Multipurpose Fields, the Gifford Park Facilities, and the Parks Maintenance Complex all were built since the last Study and several more future projects are planned. She explained that only the County owned parks and the usable parks' land were counted, so the inventory remained stable, and the LOS increased because of the population. The fee increased 30% because of the facility increases and the reduction in credit. The single family residence increased from $1500 to $1900. This is a fee charged only to residential land use. In terms of the affordable growth scenario, since the credit is decreasing, the County will need about 96% of its credit to maintain the current LOS. Ms. Kamp summarized all program areas: the calculated residential fees are going up 15% to 20%, and non-residential is varying depending on the land use and demand. When they add the affordable growth option, the increase in residential land use is 5% to 10%, and non- residential land use is overall decreasing. She concluded, saying that the next steps today are to obtain the Board's input, schedule additional public meetings, and move on to public hearings. The Chairman called for a recess at 3:10 p.m. and reconvened the meeting at 3:23 p.m., with all members present. Impact Fee Update Workshop January 22, 2014 7 • o Chairman O'Bryan spoke of ways that the County uses the gas tax and sales tax fund and expressed concern that the account one day may not be sufficient for the County's needs. Administrator Baird has addressed some major concerns with staff, and tried to adjust, and, if staff feels it is necessary they will notify the Board. Commissioner Solari suggested Director Brown prepare a spreadsheet to analyze the gas and sales tax funds and expenses, from current day to the year 2023, to assist the Board in determining which direction to take and alleviate Commissioner O'Bryan's concern. 4.B. Members of the Public Chuck Mechling, Pointe West, appreciated having the meeting and the Board's comments. His question was directed toward understanding the concept of future meetings and workshops. The Board and Staff discussed allowing time for various groups to become familiar with the Study before the next workshop; have the PowerPoint and the Study on the County website ircgov.com; arrange for informal workshops; and have specific questions directed to the Consultant. There was a CONSENSUS of the Board to direct Staff to schedule as many informal meetings with the Public as possible. Administrator Baird said he was planning to have a total of three informal workshops in Building "B" Conference Room, and two Public Hearings to adopt the Ordinance. He will meet with various groups and prepare an agenda for the Board. Impact Fee Update Workshop January 22, 2014 9 • Charlie Wilson, Vero Beach, has been in contact with the School Board for the last six months, and he was disturbed that the information from the School Board was not available in the Study. Administrator Baird interrupted Mr. Wilson, explaining that it was his decision with his staff to remove the School Board, as to not slow up the process, and he said he would take full responsibility. Mr. Wilson continued to inform the Board that he was aware of the fact that the School Board projects losing 500 students a year, and he questioned how the School Board could increase impact fees when they are reducing capacity. He told the Board that the School Board's estimate of population in 2020 is roughly 40,000 more than the County's projection. He posed questions to the Consultant regarding the affordable and achieved LOS, and wanted to know how they are dealing with a surplus. Mr. Tindale provided a general answer, stating that they have been conservative and only charged the minimum the County has achieved, and if they achieved better than they adopted, the Consultant will not let the County charge for it until they have adopted it. In response to Commissioner Davis's request to make it clearer, he said he could put formulas in the report, provide examples, and give them advice to tie the two together in the Comprehensive Plan. Mr. Wilson continued addressing the current 2005 Comprehensive Plan methodology versus this Study's methodology. He accused the County of overcharging $50 million dollars by changing the methodology, the starting point, and the way we adopt the Comprehensive Plan. He critiqued further the Affordable Growth Strategy. Mr. Tindale reiterated several times that he was comfortable with the methodology used and the Affordable Growth Strategy. Impact Fee Update Workshop January 22, 2014 11 5. WRAP-UP Chairman O'Bryan asked the Board for their wrap-up comments. He thanked the Consultants Steve Tindale and Nilgun Kamp for their presentation and input. He addressed the direction to staff and confirmed that they had clear direction that the Board wants them to make today's information 'available, conduct smaller industry working gro ps"Nwithworks oh psin Building B, and'.continueto disseminate the information. Director Boling asked if it was safe to say that it is a consensus of the Board to say that the affordable growth 1 ac approh was something worth pursuing, looking at non-residential essentially being lowered down. 'L: g `8l .. e›S Commissioner Zorc wanted staf f t to'loo aat a way'.t'ollower Impact Fees and eventually see them dissolve. ' ' € Commissioner Solari said he would l ke. to?make sure that we are not charging Impact Fees for capacity that is more than what they have a use for. He was convinced that we will spend every Transportation Impact Fee dollar collected appropriately, but did not have the same comfort level for the other program areas' Impact Fees. Chairman O'Bryan was happy with the overall methodology. He had concern that the revenue streams might be shaky as far as lowering non-residential Impact Fees, but stated that we are moving in the right direction. Administrator Baird thanked and complimented Staff, Phil Matson, and the Consultants on doing a tremendous job. 6. ADJOURNMENT Impact Fee Update Workshop January 22, 2014 13