Loading...
HomeMy WebLinkAboutReso 2001-343 RESOLUTION NO. 2001-~3 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, ADOPTING THE MANUAL AND REPORT ATTACHED AS EXHIBIT "A" PROVIDING RATIONALE, DATA SOURCES AND METHODLOGIES USED TO DERIVE IMPACT FEES FOR POLICE, PARKS AND RECREATION, AND MUNICIPAL FACILITIES AS IMPOSED ORDINANCES NUMBERS 2001-~, 2001-M-, 2001- 135; PROVIDING FOR DEFINITIONS; ADOPTING GENERAL PROVISIONS AND APPLICABILITY, INCLUDING TYPES OF DEVELOPMENT AFFECTED AND EFFECTIVE PAYMENT OF IMPACT FEES AND OTHER APPLICABLE LAND USE AND LAND DEVELOPMENT REGULATIONS; ADOPTING PROCEDURES FOR IMPOSITION, CALCULATION AND COLLECTION OF IMPACT FEES; PROVIDING FOR REPEALER; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Sunny Jsles Beach, Florida was incorporated on June 16, 1997, and was provided police, parks and other services by Miami-Dade County through an Interlocal agreement until such time as the City was able to create a police department, purchase and maintain its own park and determine the need for certain public facilities and improvements; and WHEREAS, until such time as this study referred to herein, could be conducted, the City as an interim measure adopted and utilized the impact fees supported by Miami-Dade County as it had historically been applied to the City of Sunny Isles Beach; and WHEREAS, the City of Sunny Isles Beach is fully independent and is experiencing an explosion of growth with the concomitant need to establish and impose impact fees on new developments to finance public facilities and improvements necessitated by such developments and deal with its cumulative impact; and WHEREAS, the City Commission of the City of Sunny Isles Beach, Florida (the Commission) has determined that the imposition and collection of impact fees to finance, in whole or in part, the capital costs of additional or expanded public works projects, other improvements and facilities which are necessary to accommodate the impact of new construction or development is appropriate; and WHEREAS, the Commission has studied the necessity for and implications of the adoption of impact fees for various public improvements and has retained Tischler & Associates, Inc. and, by subcontract, Freilich, Leitner & Carlisle (hereinafter, together, the Consultants) to prepare an impact fees report to evaluate the existing impact fees and consider additional impact fees, and Tischler & Associates, Inc. has prepared an Impact Fees Report, dated March 5, 2001 (the Impact Fees Report); and Impact Fees Resolution 1 WHEREAS, on October 5, 2000, the Commission adopted the Sunny Isles Beach Comprehensive Plan; and WHEREAS, the findings of the Impact Fees Report relating to impact fee assumptions, residential, non-residential and transient development projections; capital improvements and the cost thereof; and impact fee calculations have been incorporated into the Impact Fees Manual, which is contained in Exhibit "A" of this Resolution; and WHEREAS, based on the population, housing units and land use projections as well as the public facility needs associated with the projected level of growth, the Commission has determined that impact fees continue to be an appropriate and necessary technique, to be used in conjunction with other available public facility financing techniques, to ensure that adequate public facilities are provided to new growth; and WHEREAS, the Commission has determined that impact fees will continue to be necessary for parks and recreation facilities and vehicles and police facilities and vehicles, and is necessary to now impose impact fees for general municipal facilities and vehicles and the existing interim impact fees for parks and recreation facilities and police services should be repealed; and WHEREAS, the Commission has found and determined, after extensive study by consultants, that impact fees for different public purposes will have certain common characteristics and that the City will, therefore, benefit from the adoption and use of a uniform procedure for the imposition, calculation, collection, expenditure and administration of all of the adopted impact fees; and WHEREAS, the use of uniform procedures, to the extent possible, will be more efficient and expedient for both the City and applicants for building permits than separate procedures for each impact fee; and WHEREAS, the use of uniform procedures will simplify the implementation and administration of impact fees; and WHEREAS, the use of uniform procedures will best ensure that impact fees are "earmarked" and expended for the public purposes for which they were imposed and collected and will be contained in the imposition ordinances; and WHEREAS, all monies collected from impact fees shall be deposited in an interest- bearing account which clearly identifies the category, account, fund and public facility or improvement for which such fee was imposed; and WHEREAS, each such category, fund or account shall be accounted for separately; provided, however, that the determination as to whether the accounting requirement shall be by category, account or fund and whether by aggregate or individual development shall be within the discretion of the City; and Impact Fees Resolution 2 WHEREAS, any interest or other income earned on monies deposited in said interest- bearing account shall be credited to the applicable account; and WHEREAS, the Commission has found and determined that impact fees are an appropriate technique for funding public improvements; and WHEREAS, by future ordinance, the Commission has determined, or will determine for each impact fee, that the payment of the impact fee and its expenditure for needed public facilities or improvements will result in a benefit to the development for which it is imposed; and WHEREAS, the future ordinance, Commission has developed and adopted a schedule of impact fees for each category of public facility or improvement by land use classification; and WHEREAS, by future ordinance, the Commission has provided a credit (offset) mechanism in cases where the proposed development has been subject to required dedication of public sites and/or public improvements for which impact fees are also being imposed and in cases where the new development will otherwise pay for a portion of such new development through principal payments of bonds issued for the same purpose; and WHEREAS, the Commission has determined that the impact fee amounts bear a reasonable relationship to the burden imposed upon the City to provide the additional capital expenditures for such public facilities or improvements to serve the new development at the appropriate level of service (LOS) standard; and WHEREAS, the Commission has developed fee calculation methodologies which will be imposed in an equitable and non-discriminatory manner; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH, FLORIDA, AS FOLLOWS: Section 1. Adoption of Impact Fee Analysis: The analysis performed by consultants which provides the rationale, data sources and methodology used to derive the three impact fees which shall have been adopted by Ordinances No. 2001- 133 , 2001-13~ and 2001- r~> , imposed by the municipality to offset capital costs, to wit: is attached hereto and made a part hereof as Exhibit "A" which may be amended from time-to-time. Section 2. Definitions. . A. In the interpretation and construction of this Chapter, the following rules of construction shall apply: 1. The word "shall" is always mandatory and not discretionary and the word "may" is permissive. Impact Fees Resolution 3 2. Words used in the present tense shall include the future; and words used in the singular shall include the plural and the plural the singular, unless the context clearly indicates the contrary; use of the masculine gender shall include the feminine gender. 3. The phrase "used for" includes "arranged for," "designed for," "maintained for," or "occupied for." 4. Unless the context clearly indicates the contrary, where a regulation involves two or more items, conditions, provisions, or events connected by the conjunction "and," "or" or "either.. .or," the conjunction shall be interpreted as follows: a. "And" indicates that all the connected terms, conditions, provisions or events shall apply. b. "Or" indicates that the connected items, conditions, provisions or events may apply singly or in any combination. c. "Either.. .or" indicates that the connected items, conditions, provisions or events shall apply singly but not in combination. 5. The words "includes" and "including" shall not limit a term to the specific example but are intended to extend its meaning to all other instances or circumstances of like kind or character. B. The words or phrases used herein shall have the meaning prescribed in the current City Code except as otherwise indicated herein: Applicant - any individual, firm, corporation, partnership, assocIatIOn, society, syndication, trust, or other legal entity that files an application with the City for a building permit. Appropriation or to appropriate - an action by the Commission to identify specific public facilities for which impact fee funds may be utilized. Appropriation shall include: listing of a public facility in the adopted City budget or capital improvements program; execution of a contract or other legal encumbrance for construction of a public facility using impact fee funds in whole or in part; or actual expenditure of impact fee funds through payments made from a impact fee account. Budget Officer - the City employee or officer responsible for assisting the Commission in the preparation of City budgets. Impact Fees Resolution 4 Building - Any permanent structure, or portion thereof, designed or built for the support, enclosure, shelter, or protection of persons, animals, chattels or property of any kind. Building Official - the Director of the Building Department, titled the Building Official shall administer, calculate and collect the impact fees. Building Permit - the official document or certificate issued by the Building Department under the authority of ordinance or law, authorizing the commencement of construction or construction siting of any building or part thereof or authorizing a change in use. The term "Building Permit" shall also include tie-down permits for those buildings or structures, such as mobile homes, that do not require a Building Permit in order to be occupied. City - the City of Sunny Isles Beach, Florida. City Manager - the City Manager of the City and shall be the final administrative arbiter of the fee amount, which decision may be appealed to the Commission.. City Attorney - the person appointed by the Commission to serve as its counsel, or designee. Commission - the City Commission of the City of Sunny Isles Beach, Florida. Developer - any individual, firm, corporation, partnership, association, society, syndication, trust, or other legal entity that is responsible for creating a demand for City facilities and services. Development - any manmade change to improved or unimproved real estate, including but not limited to buildings or other structures, dumping, extraction, dredging, grading, paving, storage of materials or equipment, land excavation, land clearing, land improvement, landfill operation, or any combination thereof; and any change in the use of a Building for which a building permit is required by law. Dwelling Unit - a room or group of rooms forming a single unit containing living, sleeping and cooking accommodations and designed to be used for living purposes. Each apartment unit or mobile home shall be considered a dwelling unit. Dwelling units shall not include those units designed primarily for transient occupancy purposes, including both resort and apartment hotels, nor shall they include rooms in hospitals or nursing homes. Dwelling units may be classified as follows: 1. Low Density includes single-family detached and attached units, designed and used only by one family, and wrlich is either physically separated from or attached to one or more dwelling units, such as townhouses and duplexes, up to 13 dwelling units per acre. Impact Fees Resolution 5 2. Medium Density includes buildings that contain 3-49 dwelling units per building, and mobile homes, at a density of 13 to 25 dwelling units per acre. 3. High Density includes all dwelling units located in buildings that contain 50 or more dwelling units per building, at a density of more than 25 units per acre. Effective Date of this Resolution - the date of adoption of this Resolution Number 2001-~t/3 . Governing Body - the Commission. Housing Unit - a dwelling unit. Impact Fee - a fee adopted by the Commission for the City which is imposed on new development on a pro rata basis in connection with and as a condition for the issuance of a building permit and which is calculated to defray all or a portion of the costs of the public facilities required to accommodate new development at City-designated level of service (LOS) standards and which reasonably benefits the new development. Impact Fees Manual/Report - a manual prepared by the City containing the development projections for the City, including the projected growth rate, the need for additional capital facilities, and the calculation methodology for impact fees, and which may include forms and other administrative provisions deemed appropriate by the Planning Director. Mobile Home - a portable dwelling unit which is designed and built to be towed on its own chassis, including frame and wheels and to be connected to utilities. A mobile home is designed without a permanent foundation for year-round living. A unit may contain parts that can be combined, folded, collapsed, or telescoped while towed and expanded later to provide additional cubic capacity. This does not include modular or sectional homes. Multiple Uses - a new development consisting of both residential and non-residential uses, or both transient units and dwelling units, or one (1) or more different types of non-residential use, on the same site or part of the same new development. Municipal Facilities Impact Fee - a fee imposed on all new residential and non- residential development to fund the proportionate share of the costs of: City office space and City owned and operated vehicles and major capital equipment. New Development any new construction, reconstruction, redevelopment, rehabilitation, structural alteration, structural enlargement, structural extension, or new use which requires a building permit. Non-residential - any use or establishment of a building other than as a dwelling unit or transient unit, and including commercial, industrial and institutional uses. Non- residential uses are divided into the following categories: Impact Fees Resolution 6 Com/Shop Ctr. - Commercial and/or Shopping Center Office/Inst. - General Office and/or Institutional All of the above terms are defined or used in the manual entitled Trip Generation prepared by the Institute of Transportation Engineers, 1997. Parks and Recreation Impact Fee - a fee imposed only on new residential development to fund the proportionate share of the costs of parks and recreation facilities and improvements of all such parks, including beaches. Police Facilities Impact Fee - a fee imposed on new residential and non-residential development to fund the proportionate share of the costs of the new police headquarters plus the costs of police vehicles and major capital equipment. Public Facility or Service - public improvements, facilities or services necessitated by new development, including, but not limited to, water resources, transportation, sheriff facilities, public works, fire and emergency medical services, community facilities,. City facilities, water facilities, sewer facilities, flood control and drainage, solid waste disposal, open space, parks, utilities and schools and educational facilities. Public Facility Expenditures - include amounts appropriated in connection with the planning, design, engineering and construction of public facilities; planning, legal, appraisal and other costs related to the acquisition of land, financing and development costs; the costs of compliance with purchasing procedures and applicable administrative and legal requirements; and all other costs necessary or incident to provision of the public facility. Residential Use - any use of a building as or for a dwelling unit or for a transient unit. Transient Unit - a room, or separate living quarters consisting of more than one room but rented as a single unit, used and occupied as a hotel room, a unit in an apartment hotel or other accommodation intended for temporary lodging. Section 3 General Provisions. A. Term. The procedures established herein shall remain in effect unless and until repealed, amended or modified by the Commission. B. Annual Review. 1. At least once every other year not later than June 1 of each such year, beginning June 1, 2003, and prior to the adoption by the Commission of the Annual Budget, the City Manager or designee shall coordinate the preparation and submission of an impact fees update to the Commission on the subject of impact fees. Impact Fees Resolution 7 2. The Impact Fee Update may include any or all ofthe following: a. recommendations for amendments, if appropriate, to these procedures or to specific ordinances adopting impact fees for particular public facilities; b. identification of additional public facility or improvement projects anticipated to be funded wholly or partially with impact fees; c. proposed changes to impact fee schedules as set forth in the ordinances imposing and setting impact fees for particular public facilities; d. proposed changes to any impact fee calculation methodology; and e. any other data, analysis or recommendations as the City Manager may deem appropriate, or as may be requested by the Commission. 3. Submission of Impact Fee Update and Commission Action. The City Manager shall submit the Impact Fee Update to the Commission, which shall receive the Impact Fee Update and which may take such actions as it deems appropriate, including, but not limited to, requesting additional data or analyses and holding public workshops and/or public hearings. C. Affected Area. This Ordinance shall apply to all new development within the City. D. Type of Development Affected. This Ordinance shall apply to all new development as herein defined and as defined in the impact fee ordinances for particular public facilities or improvements. E. Type of Development Not Affected. 1. No Net Increase in Dwelling Units or Transient Units. No impact fee shall be imposed on any new residential development which does not add a new dwelling unit, or on any new hotel or apartment hotel development which does not add a new transient unit. No impact fee shall be imposed for alteration or expansion of an existing dwelling unit or transient unit where no additional dwelling or transient unit is created. Impact Fees Resolution 8 2. No Net Increase in Non-Residential Square Footage. No impact fee shall be imposed on the alteration of existing non-residential uses where there is no increase in the non-residential square footage and no change in use, unless such change in use is not to a different category of development which results in an increase in the demand for capital improvements or public facilities. 3. Development Agreements. Development projects which are the subject of a Development Agreement containing provisions in conflict with this Article, but only to the extent of the conflict or inconsistency. 4. Public Facilities Provided by Governments. No impact fees shall be imposed on the development of public facilities by the City. Impact Fees shall apply to the State of Florida, Miami-Dade County or the Federal government, unless waived by the City. F. Effect of Payment of Impact Fees on Other Applicable Land Use. Zoning. Platting. Subdivision or Development Regulations: 1. The payment of impact fees shall not entitle the applicant to a building permit unless all other applicable land use, zoning, planning, adequate public facilities, forest resource, platting, subdivision or other related requirements, standards and conditions have been met. Such other requirements, standards and conditions are independent of the requirement for payment of an impact fee. 2. Neither this Ordinance nor the specific impact fee ordinances for particular public facilities or improvements shall affect, in any manner, the permissible use of property, density/intensity of development, design and improvement standards or other applicable standards or requirements of the land development regulations of the City. Section 4 Procedures For Imposition. Calculation And Collection Of Impact Fees. A. In General. In accordance with the imposition ordinances, an applicant shall be notified by the City of the applicable impact fee requirements at the time of application for a building permit. At such time, the impact fees shall be calculated by the Building Official, or designee, and shall be paid by the applicant prior to the issuance of a building permit. B. Calculation. I. Upon receipt of an application for a building permit, the Building Official, or designee, shall determine (a) whether it is a residential or non- residential use, (b) the specific category (type) of residential or non-residential development, if applicable, (c) if residential, whether dwelling units or transient units and the number of new dwelling units or transient units, (d) if non-residential, the number of new or additional square feet of gross floor area (rounded up to the nearest square foot) and the proposed use, and (e) if non-residential, whether the Impact Fees Resolution 9 proposed use is in the same category (type) of non-residential development as the pnor use. 2. Upon receipt of an application for a change of use certificate for an existing building, the Building Official, or designee, shall determine whether it is for a change in use, and shall calculate the applicable impact fee, as set forth below. In such cases, the impact fee due shall be based only on the incremental increase in the fee for the additional public facilities needed for the change in use. An applicant shall not be entitled to a refund where the change of use is to a category of development which imposes a lower demand on public facilities. 3. After making these determinations, the Building Official, or designee, shall calculate the applicable impact fee by multiplying the demand added by the new development by the amount of the applicable impact fee per unit of development, incorporating any applicable offset if set forth in the particular impact fee calculation methodology. 4. If the type of land use proposed for new development is not expressly listed in the particular impact fee ordinance and schedule, the Building Official shall notify the City Manager, or designee, who shall: a. identify the most similar land use type listed and calculate the impact fee based on that land use; or b. identify the broader land use category within which the specified land use would apply and calculate the impact fee based on that land use category; or c. at the option of the applicant, or the Building Official, determine the basis used to calculate the fee pursuant to an independent impact analysis for impact fee calculation. This option shall be requested by the applicant on a form provided by the City for such purpose. If this option is chosen, the following shall apply: (1) The applicant shall be responsible, at its sole expense, for preparing the independent impact analysis, which shall be reviewed for approval by the City Manager, prior to payment of the fee. (2) The independent impact analysis shall measure the impact that the proposed development will have on the particular public facility or improvement at issue, and shall be based on the same methodologies used in the impact fee calculation methodology report, and shall be supported by professionally acceptable data and assumptions. Impact Fees Resolution 10 (3) After review of the independent impact analysis submitted by the applicant, the City Manager shall accept or reject the analysis and provide written notice to the applicant of its decision within forty-five (45) days. If the independent impact analysis is rejected, the written notice shall provide an explanation of the insufficiencies of the analysis. (4) The final decision of the City Manager may be appealed pursuant to imposition ordinances. 5. An applicant may request a non-binding estimate of impact fees due for a particular new development at any time by filing a request on a form provided for such purpose by the Building Official; provided, however, that such estimate may be subject to change when a formal application for a building permit for new development is made. Such non-binding estimate is solely for the benefit of the prospective applicant and shall in no way bind the City nor preclude it from making amendments or revisions to any provisions of these Procedures, the specific impact fee implementing ordinances, or the impact fee schedules. 6. The calculation of impact fees due from a multiple-use new development shall be based upon the impact fee for each public facility generated by each land use type in the new development. 7. The calculation of impact fees due from a phased new development shall be based upon the impact fees due for each specific land use within the phase of development for which building permits are requested. 8. Impact fees shall first be calculated based on the impact fee amount in effect at the time of application for a building permit, but the amount of the impact fee due is the amount of the impact fee in effect on the date of issuance of the building permit. Section 3. Repealer. To the extent of any conflict between this Resolution and any ordinances adopting and imposing the impact fees those ordinances shall be deemed to be controlling. Section 4. Effective Date. ~lAL-tf ,2001. PASSED AND ADOPTED this J 2..4 day of Impact Fees Resolution 11 ATTEST: .:16~~~ Richard Brown-Morilla, City Clerk APPROVED AS TO FORM AND L G SUFFICIENCY: VOTE: S...() Mayor David Samson Vice Mayor Kauffman Commissioner Iglesias Commissioner Morrow Commissioner Turetsky Impact Fees Resolution Moved by: Second by: ~~~ffi~~~~~= yes V no_ yes Vno_ yes Vno_ yes Vno_ yes Vno_ 12 IMPACT FEES Prepared for . City of Sunny Isles Beach, Florida March 5, 2001 Prepared by: Tischler & Associates, Inc. Fiscal, Economic & Planning Consultants in association with Freilich, Leitner & Carlisle Land Use Law & Planning Firm EXHIBIT A ~ TISCHLER & AssocIATES, INC. 4701 Sangamore Road Suite N210 Bethesda, MD 20816 (301) 320-6900 Fax: (301) 320-4860 80 Annandale Road Pasadena. CA 91105-1404 (818) 790-6170 Fax: (818) 790-6235 (800) 424-4318 tischlerassociates, com Fiscal Impact Analysis . Capital Facility Analysis . Impact Fee Systems . Growth Policy Planning . Economic and Markel Analysis MUNIES, FISCALS & CRIM ii Fiscal impact systems tailored lor each community 1:\-lF":\i,..:r Table of Contents EXECUTIVE SU M MARy........,.........................,..,....,.............................................,................ 1 Figure 1 - Current Impact Fees.................................................,............................................... 1 Figure 2 - Impact Fee Methods and Cost Components........................................................... 2 Figure 3 - Schedule of Maximum Supportable Impact Fees .................................................... 3 DEVELOPM ENT PROJ ECTIONS ............,............................................................................... 4 Figure 4 - Population Growth Components .............................................................................. 4 Figure 5 - Persons Per Household ............................................................................................ 5 Figure 6 - Trip Rates and Employee to Building Area Ratios ................................................... 6 Figure 7 - Recommended Projections for Sunny Isles Beach .................................................. 7 PARKS AN D R ECR EA TION.................................................................................................... 8 Figure 8 - Parks & Recreation Facilities Methodology Chart ..........,....................................... 8 CAPITAL COST OF PARK IMPROVEMENTS .......................................;.........................................................9 Figure 9 - Parks and Recreation Standards............................................................................. 9 COST OF BEACH IMPROVEMENTS ................,..........................................................,.............................10 Figure 10 - Beach Access and Improvements...........................................,........................... 10 COST OF ADDITIONAL VEHICLES ....................................,...,..................................................................11 Figure 11 - Parks and Recreation Vehicles............................................................................ 11 PARKS AND RECREATION IMPACT FEE SUMMARY ...................................................................................12 Figure 12 - Parks and Recreation Impact Fee Calculations .................................................12 CASH FLOW ANALYSIS FOR PARKS AND RECREATION ..............................................................................13 Figure 13 - Cash Flow Summary for Parks and Recreation ..................................................13 POLICE F ACI L1TI ES .,..........................................................................,............................... 14 Figure 14 - Police Impact Fee Methodology Chart ....................................................,...........15 POLICE COST ALLOCATION ApPROACH .........,.....................,.................,................,..,.............................16 Figure 15 - Police Proportionate Share Factors..................................................................... 16 COST OF HEADQUARTERS AND POLICE EQUIPMENT................................................................................. 1 7 Figure 16 - Police Level-Of-Service Standards ........................................................................17 CREDIT FOR FUTURE PAYMENTS ON POLICE HEADQUARTERS ...................................................................18 Figure 17 - Principal Payment Credit ............,........................................................................18 POLICE FACILITIES IMPACT FEE SUMMARY ............................................................................................. 19 Figure 18 - Police Impact Fee .................................................................................................. 20 CASH FLOW SUMMARY FOR POLICE FACILITIES ......................................................................................21 Figure 19 - Cash Flow Summary for Police............................................................................ 21 M U N ICI PAL F ACI L1TI ES ............................................................"........................................ 22 Figure 20 - Municipal Facilities Impact Fee Methodology Chart .......................................... 22 COST OF MUNICIPAL BUILDINGS AND ROLLING STOCK ............................................................................ 23 Figure 21 - City Buildings and Vehicles LOS Standards ......................................................... 24 CREDIT FOR FUTURE PAYMENTS ON CITY BUILDINGS .............................................................................. 25 Figure 22 - Principal Payment Credit for City Hall................................................................. 25 MUNICIPAL FACILITIES IMPACT FEE SUMMARY ............................,..................................,....................... 26 Figure 23 - Municipal Facilities Impact Fee........................................................................... 26 CASH FLOW ANALYSIS FOR MUNICIPAL FACILITIES .................................................................................. 27 Figure 24 - Cash Flow Summary for Municipal Facilities ..............................,.......,............... 27 1M PLEM ENTATION AN D ADM I N ISTRA TION ....... ......... .......................... ....................... ....... 28 b i::'-\;:,": H ; :',1 Pi., (~T F :~.J:, ::'~ This document provides the rationale and data sources used to derive three impact fees for the City of Sunny Isles Beach, Florida. Impact fees are one-time payments that may be imposed by a municipality to offset capital costs to the municipality associated with providing necessary public facilities. Impact fees are subject to legal requirements, which are commonly referred to as the "rational nexus" test. This test contains three elements: need, benefit and Proportionality. First, to justify a fee for public facilities, Sunny Isles Beach has demonstrated that development creates a need for capital improvements. Second, developed properties must derive a benefit from the payment of the fees imposed by the City. Third, the fee paid by a particular type of development should not exceed its proportionate share of the capital cost for improvements. The City has already adopted impact fees for parks and police facilities (see Figure 1). For a new multi-family housing unit, which is the most common residential type in Sunny Isles Beach, the current impact fee total is $843 per unit. Figure 1 - Current Impact Fees Parks & Police TOTAL Recreation ResIdentIal Single Family Detached Townhouse Multi-Family (including apartment hotels) Nonresidential All Types Per Housing Unit $1,453 $1,247 $742 $101 $1,554 $101 $1,348 $101 $843 Per 1,000 Square Feet $147 $147 Tischler & Associates, Inc. (TA) evaluated possible methodologies and documented appropriate demand indicators by type of development, for each type of fee. Specific capital costs have been identified using local data and current dollars. Formulas used to calculate impact fees are diagrammed in a flow chart at the beginning of each section of this report. Also, for each type of fee TA provides a summary table indicating the specific factors used to derive the impact fee. These factors are also referred to as Level-Of-Service (LOS) standards. There are two basic approaches used to calculate the various components of Sunny Isles Beach's impact fees. A plan-based method is best suited for public facilities that have adopted plans or commonly accepted service delivery standards to guide capital improvements. For example, Sunny Isles Beach is planning the construction of a new municipal complex including general government offices, public meeting space and police headquarters. The City has also developed a plan to improve beach access and parks. 1 Tischler & Associates, Inc. ((;tE~~ \:\,;~:;A~~T F :~[S An incremental expansion cost method is best suited for public facilities that will be expanded in regular increments, with standards based on current conditions in the community. Impact fees for police and municipal facilities include an incremental expansion component for vehicles and equipment. This method documents the current LOS in both quantitative and qualitative measures. A third method, known as the buy-in approach, has not been used to derive impact fees for the City of Sunny Isles Beach. The rationale for the buy-in approach is that new development should pay for its share of the useful life and remaining capacity of existing facilities that were oversized for future growth. Figure 2 summarizes the methods used to derive the impact fee for each type of public facility. Also shown is a rank-ordered list of capital items according to their relative contribution to each type of public facility. For example, the impact fee for police is based on two cost components. The major capital cost is a plan-based component for the new police headquarters, followed by the cost of rolling stock, such as patrol cars. Figure 2 _ Impact Fee Methods and Cost Components Citywide Parks 3) Rolling Stock 1} Park Improvements Not applicable in & Recreation 2} Beach Access & Sunny Isles Beach Improvements police Facilities 2} Rolling Stock 1} Headquarters Not applicable in Sunny Isles Beach Municipal Facilities Not applicable in 1} City Hall Not applicable in Sunny Isles Beach 2} Rolling Stock Sunny Isles Beach Another general requirement that is common to impact fee methodologies is the evaluation of credits. There are several types of credits that have been considered. First, a future revenue credit has been evaluated to avoid potential double payment for capital facilities through on-going revenues that may fund system improvements. For example, this type of potential double payment may occur if facilities are bond financed. The second type of credit is a site-specific credit for system improvements that have been included in the impact fee calculations. policies and procedures related to site-specific credits for system improvements will be addressed in the ordinance that establishes the City's fees. However, the general concept is that developers may be eligible for site-specific credits or reimbursements only if they provide system improvements that have been included in the impact fee calculations. Project improvements normally required as part of the development approval process are not eligible for credits against impact fees. 2 Tischler & Associates, Inc. ~-, i Figure 3 provides a schedule of the maximum supportable impact fees for Sunny Isles Beach. Impact fees for residential development and transient lodging will be imposed per unit and will be collected when building permits are issued. Fees on nonresidential development will be imposed per 1,000 square feet of floor area and will also be collected when building permits are issued. The fee schedule shown below was used to estimate impact fee revenue that will likely be generated by projected development in Sunny Isles Beach over the next five years. Although nonresidential development is often irregular from year to year, TA estimates that the three types of impact fees should yield average annual revenue of approximately $199,000. The City may adopt fees that are less than the amounts shown. However, a reduction in impact fee revenue will necessitate an increase in other revenues, a decrease in planned capital expenditures and/or a decrease in the City's level of service. Nonresidential development categories are consistent with the terminology and definitions contained in the reference book, Trio Generation, published by the Institute of Transportation Engineers. These definitions can be found in the Implementation and Administration section at the back of this report. Figure 3 - Schedule of Maximum Supportable Impact Fees Residential Per Housing Unit Low Density $613 $103 $396 $1,112 Medium Density $441 $74 $285 $800 High Density $426 $71 $275 $772 Transient Lodging Per Unit Apartment Hotel $639 $308 $412 $1,359 Resort Hotel $512 $308 $330 $1,150 Nonresidential Per 1,000 Square Feet of Floor Area Com / Shop Ctr 25,000 SF or less $2,853 $549 $3,402 Com / Shop Ctr 25,001,50,000 SF $2,633 $471 $3,104 Com / Shop Ctr 50,001-100,000 SF $2,293 $412 $2,705 Com / Shop Ctr over 100,000 SF $1,975 $366 $2,341 Office / Inst 10,000 SF or less $1,313 $724 $2,037 Office / Inst 10,001-25,000 SF $1,061 $666 $1,727 Office / Inst over 25,000 SF $904 $625 $1,529 3 Tischler & Associates, Inc. Tischler & Associates, Inc. (TA) has relied upon data from the Sunny Isles Beach Comprehensive Plan. Figure 4 presents projections in five-year increments through the year 2020 for different population components. The major population group consists of year- round residents (Le., households in occupied housing units). Another component is transient population living in housing units and hotel rooms. Most people in this group have another home elsewhere and are frequently referred to as "snow-birds" because they migrate to the warm climate for the winter. Total peak population for the City of Sunny Isles Beach is currently 25,200, with a projected increase to 30,900 by the year 2015. Figure 4 - Population Growth Components Year-Round Pop. In Hsg Units Transient Pop. In Hsg Units Transient Pop. In Hotel Rooms Total Peak Population (rounded) 25,200 27,400 29,400 30,900 33,000 2000 to 2015 Average Annual 2000 2005 2010 2015 2020 Increase Growth Rate 14,543 16,196 17,932 18,969 20,664 295 2.0% 5,740 6,286 6,499 6,875 7,254 76 1.3% 4,904 4,947 4,990 5,034 5,077 9 0.2% l I I I I I I I i i I I I I I I I I I I I I i I I Source: Sunny Isles Beach Comprehensive Plan. I ~, ~ulation Growth compone~ 25,000 5,000 ' 2000 2005 2010 2015 ~ Year- Transient Round 2020 Transient Pop In PI' Pop. In op. n Hsg UnitsHsg Units Hotel Rooms 20,000 15,000 10,000 o 4 Tischler & Associates, Inc. 1 :\,1 F.\CT In 1990, the Sunny Isles census designated place had 6,841 occupied households and a total of 10,309 housing units (see Figure 5). The blended, or weighted average, household size in 1990 for all housing types was 1.72 persons per household. After reviewing the detailed household size data, TA recommends using three residential categories in the impact fee calculations. The three categories correspond to density ranges used in the Future Land Use Element of the Comprehensive Plan. Low Density (up to 13 dwelling units per acre) includes single-family detached; single-family attached units, such as townhouses; and duplexes. Medium Density (13 to 25 dwelling units per acre) includes 3-49 units per structure, plus mobile home/other units, as defined by the U.S. Census Bureau. High Density (more than 25 dwelling units per acre) is represented by the census category of 50 or more units per structure. As shown in Figure 5, High Density housing was the predominant housing type in 1990. A differentiation by type of housing is recommended by TA to make residential impact fees proportionate and reasonably related to the demand for public facilities. Figure 5 - Persons Per Household Vacant HU Vacancy Rate 1990 Persons Per Household by Type of Housing Persons Households Persons Per Household 2.40 1.73 1.67 Units in Structure 1 (detached & attached) Duplex 3 or 4 5 to 19 20 to 49 50 or more Mobile Home/Other Low Density* Medium Density** High Density*** Group Quarters TOTAL Total Renter & Owner Occupied Persons Households PPH Housing Units 854 350 2.44 494 57 29 1.97 40 43 26 1.65 30 171 88 1.94 106 588 334 1.76 411 9,657 5,766 1.67 8,966 400 248 1.61 262 11,770 6,841 1.72 10,309 3,468 33.6% 911 1,202 9,657 2 11,772 Housing Unit Mix 5% 8% 87% 379 696 5,766 6,841 * Low Density (up to 13 DU/Acre) includes single family detached; single family attached units, such as townhouses; and duplexes. ** Medium Density (13-25 DU/Acre) includes 3 to 49 units per structure, plus mobile home/other units. *** High Density (more than 25 DU/Acre) is represented by the category 50 or more units per structure, Source: 1990 census data from STF1A for Sunny Isles census designated place. 5 Tischler & Associates, Inc. S:,tf\;;"JY l::)L,C:S BF/\C:H Ir./jP..\Cr FLLS The impact fees study also requires projections of nonresidential development. TA will use average square feet per employee multipliers, as shown in Figure 6, to convert nonresidential floor area to an estimate of jobs within the City of Sunny Isles Beach. The multipliers shown below were derived from national data published by the Institute of Transportation Engineers (ITE) and the Urban Land Institute (ULI). The trip generation rates shown below will also be used in the impact fee calculations. TA selected two nonresidential prototypes that will be used in the cash flow analysis of impact fees. In Sunny Isles Beach, a general office building of 10,000 square feet of gross floor area is a reasonable prototype for office development. For Retail/Commercial jobs, a prototypical development is a shopping center with 50,000 square feet of gross leaseable area. For smaller commercial developments, the gross leaseable area is usually equivalent to the gross floor area. For the purpose of comparison, Figure 6 indicates some industrial development categories that are not anticipated in the City of Sunny Isles Beach. Figure 6 - Trip Rates and Employee to Building Area Ratios Land Use Wkdy Trip Ends Wkdy Trip Ends Emp Per Sq Ft (ITE code) Per 1,000 Sq Ft* Per Employee* 1,000 Sq Ft Per Emp** Commercial/Shopping Ctr (820) 25K gross leasable area 111.82 na 3.33 300 150K gross leasable area 87.31 na 2.86 3501 100K gross leasable area 68.17 na 2.50 400 200K gross leasable area 53.22 na 2.22 450 400K gross leasable area 41.56 na 2.00 500 Medical-Dental Office (720) 36.13 8.91 4.05 247 General Office (710) 110K gross floor area 22.64 5.16 4.39 2281 25K gross floor area 18.31 4.53 4.04 247 50K gross floor area 15.59 4.11 3.79 264 Business Park (770)*** 12.76 4.04 3.16 317 Light Industrial (110) 6.97 3.02 2.31 433 Warehousing (150) 4,96 3.89 1.28 784 * Trip Generation, Institute of Transportation Engineers, 1997. ** Square feet per employee calculated from trip rates except for Shopping Center data, which are derived from Development Handbook and Dollars and Cents of Shoppin~ Centers, published by the Urban Land Institute. *** According to ITE, a Business Park is a group of flex-type buildings served by a common roadway system. The tenant space includes a variety of uses with an average mix of 20-30% office/commercial and 70-80% industrial/warehousing. 6 Tischler & Associates, Inc. St.: H\Y "J::.:~ Figure 7 provides detailed demographic data for the impact fees study. According to the recommended projections, Sunny Isles Beach's average, net housing increase will be 158 units per year over the next 15 years. Although the City expects significant redevelopment of hotels, the net increase in hotel rooms is only projected to be 59 rooms over the next 15 years. Given the projected net increase in residential units and hotel rooms, Sunny Isles Beach will grow from an estimated winter peak population of 25,200 in 2000 to 30,900 people in the year 2015. The average increase in peak population is 380 people per year. The estimate of current nonresidential floor area is from the Comprehensive Plan LOS and Emergency Evacuation Analysis. Projected nonresidential floor area in 2015 is based on the Town Center redevelopment plan. Even though Figure 7 indicates a consistent annual change in nonresidential floor area, actual construction is typically irregular or "lumpy", with minor construction in some years followed by a large-scale project. For commercial and office development, the net increase in nonresidential floor area averages 32,000 square feet per year, excluding hotel redevelopment which is measured by a net increase in rooms. Because the number of jobs shown in Figure 7 is derived from the commercial/office floor area, the job data excludes hotel employees. Figure 7 - Recommended Projections for Sunny Isles Beach Sunny Isles Beach, Florida 1999 2000 2001 2002 2003 2004 2005 2010 2015 Cumulative Year,Round Population In Hsg Units 14,543 14,859 15,178 15,501 15,827 16,196 17,932 18,969 Transient Population In Hsg Units 5,740 5,865 5,991 6,118 6,247 6,286 6,499 6,875 Transient Pop. in Hotel Rooms 4,904 4,912 4,921 4,930 4,938 4,947 4,990 5,034 Total Peak Population (rounded) 25,200 25,600 26,100 26,500 27,000 27,400 29,400 30,900 Housing Units 11,674 11,833 11,993 12,152 12,312 12,471 12,630 13,423 14,200 Residential Vacancy Rate 28,3% 28.3% 28.3% 28,3% 28.3% 28.0% 26.6% 26,6% Households 8,485 8,599 8,713 8,827 8,942 9,099 9,853 10,423 Persons Per Housing Unit 1.70 1,71 1.73 1.74 1,76 1.77 1.78 1.82 1.82 Hotel Rooms 2,229 2,233 2,237 2,241 2,245 2,249 2,268 2,288 Persons Per Hotel Room 2.2 2.2 2.2 2.2 2.2 2,2 2.2 2,2 Jobs not at Hotels 1,667 1,773 1,880 1,987 2,093 2,200 2,733 3,267 Floor Area Sq Ft Retail/Com mercial KSF* Per Job 450 453 455 458 461 463 477 490 Office/Institutional KSF* 50 79 109 138 167 197 343 490 Total KSF* 300 500 532 564 596 628 660 820 980 Annual Increase 2000-2015 00,01 01-02 02-03 03-04 04,05 09,10 Avg AnI Total Peak Population 400 500 400 500 400 300 380 Jobs not at Hotels 107 107 107 107 107 107 107 Housing Units 159 159 159 159 159 155 158 Total Retail/Office KSF* 32 32 32 32 32 32 32 * KSF = square feet of floor area in thousands. 7 Tischler & Associates, Inc. SI"U'd\jy 1S; :~:::', BC;\(:i'i r F~EE:S In Sunny Isles Beach, parks and recreation facilities have a citywide service area. Therefore, no collection and expenditure zones are necessary for this type of fee. The recommended impact fee for parks and recreation facilities is primarily derived using a plan-based approach. The impact fee methodology is shown in Figure 8. All capital costs have been allocated 100% to residential development. The main focus of the park impact fee is to provide additional improvements to the existing park sites. Because the City does not expect to significantly increase park acreage through build out, and given the fact that existing park sites were purchased with a combination of grant funding and bonds, the cost of land for parks is excluded from the impact fees. If land costs were added to the impact fees, it would be necessary to provide a revenue credit for outstanding debt on bonds used to acquire park sites. Figure 8 - Parks & Recreation Facilities Methodology Chart Residential Development Persons Per Household r multiplied by multiplied by Plan-Based Cost Incremental Expansion Per Person Cost Per Person I 1 Parks & Recreation Beach Access Pa rks & Recreation Improvements and Improvements Vehicles 8 Tischler & Associates, Inc. ,"), !<,~LF:~, f3)~:;}/'::-1 Capital Cost of Park Improvements Sunny Isles Beach has invested approximately $1.7 million in improvements to parks and recreation facilities. An inventory of the improvements at six sites, and the estimated value of the improvements as provided by City staff, are shown in Figure 9. By the year 2015, the City plans to spend approximately $4.3 million for additional improvements at parks and recreation sites. A Level-Of-Service (LOS) standard for park improvements of $195 per capita was derived from the cost of improvements anticipated by the year 2015 and the projected peak population in 2015. Figure 9 - Parks and Recreation Standards Acreage Existing Improvements Beach Access Multipurpose Field Parking Lot Pavilion Playground Rest Rooms Subtotal Future Improvements Oceanfront Park 2.1 Passive Park 2.8 Active Park 2.0 Golden Shores 0.7 Pier Park 0.7 City Center 1.0 Total 9.3 Yes Yes Yes Yes Yes Yes Yes Yes Yes $820,000 $352,700 $298,900 $15,000 $240,000 $1,726,600 Lifeguard Restrooms Recreation Benches Restrooms Fishing Stand Center & Tables Pier Volleyball Sidewalks Multipurpose Landscaping Landscaping Bay & Lighting Court Boardwalk Landscaping Gazebo Landscaping Landscaping Landscaping $45,000 $785,000 $2,144,900 $175,000 $305,000 $850,000 Total Improvements 2015 Total Peak Population Improvements Cost Per Acre Improvements Per Capita $4,304,900 $6,031,500 30,900 $649,000 $195 Subtotal 9 Tischler & Associates, Inc. h~ Cost of Beach Improvements As shown in Figure 10, a LOS standard of $49 per capita has been documented for beach access and improvements. The recommended standard is based on the planned improvements along the east side of Collins Avenue, at numerous beach access points along the entire length of Sunny Isles Beach. City staff estimated the capital cost of lifeguard stands, shade shelters, emergency vehicle access improvements, as itemized in the table below. Figure 10 - Beach Access and Improvements Improvement Benches / Trash Receptacles Lifeguard Stands Landscaping Shade Shelters Showers Emergency Vehicle Access TOTAL Estimated Cost $100,000 $270,000 $500,000 $300,000 $50,000 $300,000 $1,520,000 Total Peak Population in 2015 Cost Per Capita 30,900 $49 10 Tischler & Associates, Inc. iSi,E::l 8:_:-/,: \( F'Er'~,~ Cost of Additional Vehicles Along with the plan-based components discussed above, the impact fee for parks and recreation includes an incremental expansion cost component for vehicles. Figure 11 indicates the vehicles currently used in support of parks and recreation services provided by the City of Sunny Isles Beach. The replacement cost of the vehicle fleet, divided by peak population in 2001, yields a LOS standard of $12 per person. Impact fee revenue may be used to expand the vehicle fleet but not replace vehicles as they wear out. TA and City staff discussed minimum thresholds for vehicles and equipment to be eligible for impact fee funding. For the purpose of impact fees, we have established a minimum useful life of at least three years and minimum cost of $8,000. Figure 11 - Parks and Recreation Vehicles Type Shuttle Bus 15-Passenger Van 4WD Pickup Truck TOTAL Units Unit Cost Replacement Cost 3 $93,000 $279,000 1 $25,000 $25,000 1 $25,000 $25,000 5 $65,800 $329,000 Proportionate 2001 Cost per Share Demand Units Demand Unit Residential 100% 25,600 Total Peak Population $12 11 Tischler & Associates, Inc. (. :~~ r- .~ l~.s Parks and Recreation Impact Fee Summary LOS standards used to derive the impact fees for parks and recreation are shown in the boxed area of Figure 12. The relative contribution of the three cost components to the total fee is shown at the bottom of the table. Most of the impact fee revenue will be used to provide improvements to existing parks and recreation sites. Capital costs for park and recreation facilities were allocated to total peak population in both transient lodging and housing units. The number of persons per transient lodging unit is based on an overall average of 2.2 persons per unit, as reported by the Greater Miami Visitor & Convention Bureau. The City of Sunny Isles Beach anticipates a mix of 60% resort hotel units (averaging 2.0 persons per room) and 40% apartment hotel units (averaging 2.5 persons per unit). The latter type of transient lodging is designed to accommodate longer stays. Apartment hotels include full kitchens and some of the larger units may have lockouts that can be rented/leased as a separate unit. City staff estimates that 50% of apartment hotel units may include separate lockouts. If larger units with lockouts average three persons per unit and the normal apartment hotel unit averages two persons per unit, then in combination, apartment hotels will average 2.5 persons per unit. Figure 12 - Parks and Recreation Impact Fee Calculations Standards: Persons Per Occupied Unit Low Density Residential Medium Density Residential High Density Residential Apartment Hotel Resort Hotel 2.40 1.73 1.67 2.50 2.00 Level Of Service Low Density Residential Medium Density Residential High Density Residential Apartment Hotel Resort Hotel Citywide Parks Improvements Cost Per Person Beach Access and Improvements Capital Cost Per Person Vehicles Capital Cost Per Person Reduction for Future Principal Payments Credit Per Person (not applicable) Maximum Supportable Impact Fee Per Unit Citywide Parks $468 $337 $325 $487 $390 $195 $49 $12 $0 Beach Access & Improvements $117 $84 $81 $122 $98 Vehicles TOTAL $28 $20 $20 $30 $24 $613 $441 $426 $639 $512 12 Tischler & Associates, Inc. E;C: Cash Flow Analysis for Parks and Recreation The cash flow analysis for parks and recreation facilities is summarized in Figure 13. Impact fee revenue will be generated primarily by High Density residential development, which will contribute $59,000 per year of the total impact fee revenue of $72,000 per year. However, planned improvements to citywide parks and beaches will require $416,000 per year. The City will add one additional parks vehicle over the next five years. The cumulative revenue shortfall over the next five years of approximately $1.75 million is due to the planned improvements, which will increase in the City's level of service. In order for the capital improvement plan to be financially feasible, Sunny Isles Beach will have to contribute approximately $350,000 per year from General Fund tax revenue. The current fund balance of approximately $582,000 may be used to cover the projected revenue shortfall during the next two fiscal years. Figure 13 - Cash Flow Summary for Parks and Recreation Sunny Isles Beach, Florida (Current $ in thousands) TA Projections Memo 1/2/01 123 2002 2003 2004 4 2005 REVENUES 5 Cumulative Average 2006 Total Annual 1 Park/Rec Fee, Low Density Res 2 Park/Rec Fee, Medium Density Res 3 Park/Rec Fee - High Density Res 4 Park/Rec Fee. Hotel Rms Subtotal Park/Rec Fees $5 $6 $59 $2 $72 $5 $6 $59 $2 $72 $5 $6 $59 $2 $72 $5 $6 $59 $2 $72 $5 $6 $59 $2 $72 CAPITAL COSTS Citywide Parks Beach Access & Improvements Park/Rec Vehicles Subtotal Parks & Recreation Costs $307 $109 $6 $422 13 $307 $109 $5 $421 ($349) ($117) $307 $109 $6 $422 ($350) ($468) $307 $109 $5 $421 ($349) ($817) $307 $109 $5 $421 ($349) ($1,166) $24 $5 $28 $6 $295 $59 $11 $2 $359 $72 $1,537 $307 $543 $109 $26 $5 $2,107 $421 Current $ in thousands ($1,748) ($350) Tischler & Associates, Inc. Sl!["~:\'; Er..:\~~:H 1:\ij~'ACT t~EE{.; Sunny Isles Beach is planning a new municipal complex to be located in the Town Center. The police impact fee methodology includes a plan-based component for the new police headquarters that will be part of the municipal complex. The impact fee methodology also includes an incremental expansion cost method for police vehicles and equipment. As shown in Figure 14, the police impact fee methodology allocates cost to residential development, hotels and businesses. The demand for service by type of development was determined by analyzing dispatched calls and officer-initiated activity within the City of Sunny Isles Beach. Residential LOS standards per capita were converted to an appropriate fee by type of housing unit using household size data. To allocate capital cost by type of nonresidential development, TA recommends using nonresidential vehicle trips as the best demand indicator for police facilities and vehicles. Trip generation rates are highest for commercial developments, such as shopping centers, and lower for office development, which is consistent with the relative demand for law enforcement. Other possible nonresidential demand indicators, such as employment or floor area, do not accurately reflect the demand for police protection. If employees per thousand square feet were used as the demand indicator, police impact fees would be too high for office/institutional development. If floor area were used as the demand indicator, police impact fees would be too high for warehouse development, such as boat storage facilities. Also, the Police Department responds to all traffic accidents, which are directly related to trip generation rates. 14 Tischler & Associates, Inc. ~)t !3c,;\CH :-:f:'" Figure 14 - Police Impact Fee Methodology Chart I I I f Residential Hotels I f Businesses I I T Persons Per Cost Per Vehicle Trips Per - I-- Household Unit 1,000 Square Feet (KSF) multiplied by [ multiplied by L..- Plan-Based Cost "'- Cost per Person Cost per Vehicle Trip I of Police Headquarters I plus Plan-Based Cost Incremental Expansion Cost Plan-Based Cost of Police Headquarters of Vehicles & Equipment of Police Headquarters plus plus Incremental Expansion Cost Incremental Expansion Cost of Vehicles & Equipment of Vehicles & Equipment 15 Tischler & Associates, Inc. \"),"-.-,..---.., Ct"",!"! Police Cost Allocation Approach To derive the proportionate share factors shown in Figure 15, police personnel analyzed dispatched calls and officer initiated activity data for alternating months over the time period of June 1999 through June of 2000. Calls for service to residential locations accounted for 31% of the demand for service, while hotels were responsible for 21% of the calls. Business locations, such as shopping centers and restaurants accounted for approximately 48% of the demand for service. The category labeled "Other" accounts for calls that could not be assigned to a particular type of development, such as calls to traffic accidents. Apartment hotels are a recent type of development that did not exist at the time the Police Department determined proportionate share factors. However, the City expects the demand for service from apartment hotels to be similar to the demand from resort hotels. Figure 15 - Police Proportionate Share Factors Dispatched Calls and Officer Initiated Activity Residential 1,412 31% Hotels 977 21% Businesses 2,185 48% Other* 2,086 TOTAL 6,660 * Other are primarily traffic-related calls. Source: City of Sunny Isles Beach Police Department (data from alternating months, June 1999 through June 2000). 16 Tischler & Associates, Inc. ! C l '. ,-,-,,,,., f - :. ~ ~: .::J Cost of Headquarters and Police Equipment According to preliminary architectural plans for the new municipal complex, the police headquarters accounts for approximately 27% of the total projected cost of $12 million. The anticipated cost of $3.24 million for the police headquarters was multiplied by the proportionate share factors discussed above and then divided by projected demand units in at build out of the City of Sunny Isles Beach (see Figure 16). For vehicles and equipment, the current LOS is based on the replacement cost of the current fleet, as shown in the bottom portion of Figure 16. Police patrol cars have a replacement cost of $29,000 when fully equipped with necessary add-ons, such as lights, radios and public safety equipment. The total cost of vehicles and equipment was allocated to residential and nonresidential development and then divided by the number of demand units in 2001. Impact fee revenue may be used to expand the vehicle fleet but not replace vehicles as they wear out. TA and City staff discussed minimum thresholds for vehicles and equipment to be eligible for impact fee funding. For the purpose of impact fees, we have established a minimum useful life of at least three years and minimum cost of $8,000. Figure 16 - Police Level-Of-Service Standards Police Headquarters Planned City Hall Total Cost $12,000,000 Police Share 27% Police Cost Allocation $3,240,000 Proportionate Build Out Cost per Share Demand Units Demand Unit Residential 31% 25,844 persons in hsg units $38 Hotel 21% 2,288 rooms $297 Businesses 48% 16,670 nonres veh trips $93 Vehicles and Equipment Type of Vehicle Patrol Car 4WD SUV One-Ton Pickup Truck Motorcycle ATV Jet Ski Boat Total Units Price Replacement Cost 41 $29,000 $1,189,000 5 $29,000 $145,000 1 $37,000 $37,000 5 $23,000 $115,000 2 $8,000 $16,000 2 $8,000 $16,000 1 $75,000 $75,000 57 $27,947 $1,593,000 Proportionate 2001 Cost per Share Demand Units Demand Unit Residential 31% 20,724 persons in hsg units $23 Hotel 21% 2,233 rooms $149 Businesses 48% 11,178 nonres veh trips $68 17 Tischler & Associates, Inc. E:.[/.\_::~! i:\1pl'\c-r F-t-:t":,:. Credit for Future Payments on Police Headquarters Because a plan-based approach is the major cost component of the police impact fees, TA recommends a credit for future principal payments on bonds that will fund planned capital improvements. Because interest costs have not been added to the impact fees, it is not appropriate to provide a credit for future interest payments. A principal payment credit ensures new development does not pay twice for the police headquarters through one-time impact fees and on-going revenues, such as property and utility taxes. Figure 17 indicates preliminary principal payments on the police headquarters, assuming a 25-year bond at 5.5% annual interest. The proportionate share factors used in the cost allocation were also used to allocate future principal payments by type of development. A net present value adjustment accounts for the time value of the future revenue stream. Figure 17 - Principal Payment Credit Fiscal Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 TOTAL $3,240,000 Discount Annual Percentage Rate Net Present Value Principal Population Payment Hotel Payment Vehicle Trips Payment Payments in Hsg Units Per Person Rooms Per Room to Businesses Per Trip $63,340 21,619 $0.91 2,241 $5.94 11,959 $2.54 $66,824 22,074 $0.94 2,245 $6.25 12,352 $2.60 $70,499 22,482 $0.97 2,249 $6.58 12,744 $2.66 $74,376 22,894 $1.01 2,253 $6.93 13,137 $2.72 $78,467 23,309 $1.04 2,257 $7.30 13,529 $2,78 $82,783 23,727 $1.08 2,260 $7,69 13,922 $2,85 $87,336 24,148 $1.12 2,264 $8.10 14,315 $2,93 $92,139 24,430 $1.17 2,268 $8.53 14,707 $3.01 $97,207 24,713 $1,22 2,272 $8.98 15,100 $3,09 $102,553 24,996 $1.27 2,276 $9.46 15,492 $3,18 $108,194 25,279 $1.33 2,280 $9,96 15,885 $3.27 $114,144 25,561 $1.38 2,284 $10.49 16,278 $3,37 $120,422 25,844 $1.44 2,288 $11.05 16,670 $3.4 7 $127,046 26,382 $1.49 2,292 $11.64 17,063 $3,57 $134,033 26,733 $1,55 2,296 $12.26 17 ,455 $3.69 $141,405 27,083 $1.62 2,300 $12,91 17,848 $3,80 $149,182 27,434 $1.69 2,304 $13.60 18,240 $3.93 $157,387 27,784 $1.76 2,308 $14.32 18,633 $4.05 $166,043 28,135 $1.83 2,312 $15.08 19,026 $4.19 $175,176 28,485 $1.91 2,316 $15.89 19,418 $4.33 $184,810 28,836 $1.99 2,319 $16.73 19,811 $4.48 $194,975 29,186 $2.07 2,323 $17,62 20,203 $4,63 $205,699 29,537 $2.16 2,327 $18.56 20,596 $4.79 $217,012 29,887 $2.25 2,331 $19.55 20,989 $4,96 $228,948 30,238 $2.35 2,335 $20,59 21,381 $5.14 $37.55 $296.04 $90,02 5.5% $18.05 5.5% $137.78 5.5% $44.53 18 Tischler & Associates, Inc. S\.::, '.' i .'L c~; Police Facilities Impact Fee Summary Figure 18 provides a summary of the LOS standards used to calculate impact fees for police facilities (see the boxed area at the top of the table). The LOS standards include Average Weekday Vehicle Trip Ends from the reference book, Trip Generation, published by the Institute of Transportation Engineers (ITE, 6th edition, 1997). A "trip end" represents a vehicle either entering or exiting a development (as if a traffic counter were placed across a driveway). For development types not shown below, Sunny Isles Beach staff may use the most appropriate rates from the ITE manual, or rates from approved local transportation studies. In the impact fee calculations, trip generation rates are adjusted to avoid double counting each trip at both the origin and destination points. For Office/Institutional and Industrial development, the trip adjustment factor is 50%. For Commercial/Shopping Center development, the trip adjustment factor ranges from 22-32% depending on the floor area of the development. The trip adjustment factor is less than 50% because retail uses attract vehicles as they pass by on arterial and collector roads. For example, when someone stops at a convenience store on the way home from work, the convenience store is not the primary destination. For a small-size shopping center of 50,000 square feet of floor area, the ITE manual indicates that on average 48% of the vehicles that enter are passing by on their way to some other primary destination. The remaining 52% of attraction trips have the shopping center as their primary destination. Because attraction trips are half of all trips, the trip adjustment factor is 52% multiplied by 50%, or approximately 26% of the trip ends. The data contained in Trip Generation (see Table VII-l of the 5th edition, 1991) indicates there is an inverse relationship between Shopping center size and pass-by trips. Therefore, appropriate trip adjustment factors have been derived for each category of shopping center size used in the impact fee calculations. 19 Tischler & Associates, Inc. f3Er''.~I. j-LE.:,) Figure 18 - Police Impact Fee Standards: Persons Per Occupied Unit Low Density Residential Medium Density Residential High Density Residential Average Weekday Vehicle Trip Ends per 1,000 Sq Ft Com / Shop Ctr 25,000 SF or less Com / Shop Ctr 25,001-50,000 SF Com / Shop Ctr 50,001-100,000 SF Com / Shop Ctr over 100,000 SF Office / Inst 10,000 SF or less Office / Inst 10,001-25,000 SF Office / Inst over 25,000 SF Trip Adjustment Factors Com / Shop Ctr 25,000 SF or less Com / Shop Ctr 25,001-50,000 SF Com / Shop Ctr 50,001-100,000 SF Com / Shop Ctr over 100,000 SF All Other Nonresidential Development Level of Service Police Buildings Cost Additional Police Vehicles Cost Principal Payment Credit Net Capital Cost Maximum Supportable Impact Fee Residential Low Density Medium Density High Density Transient Lodging Apartment Hotel Resort Hotel Businesses 2.40 1.73 1.67 111.82 87.31 68.17 53.22 22.64 18.31 15.59 22% 26% 29% 32% 50% Per Vehicle Trip $93 $68 Per Person $38 $23 ($18) $43 Per Unit $297 $149 ($138) ($4'5, $308 $116 Per Housing Unit $103 $74 $71 Per Unit $308 $308 Per 1,000 So Ft $2,853 $2,633 $2,293 $1,975 $1,313 $1,061 $904 Com / Shop Ctr 25,000 SF or less Com / Shop Ctr 25,001-50,000 SF Com / Shop Ctr 50,001-100,000 SF Com / Shop Ctr over 100,000 SF Office / Inst 10,000 SF or less Office / Inst 10,001-25,000 SF Office / Inst over 25,000 SF 20 Tischler & Associates, Inc. i"'.lO , r- Cash Flow Summary for Police Facilities Figure 19 provides a summary of projected police impact fee revenue and expenditures for capital facilities. Through impact fees, new development will contribute approximately $58,000 per year for police buildings and vehicles. During the next five years, the Sunny Isles Beach Police Department will expand their vehicle fleet by approximately six vehicles in order to accommodate new development. The major cost, which begins in Year 2 of the cash flow analysis, is debt service payments of approximately $242,000 per year for the new Police Headquarters. To cover the debt service payments, Sunny Isles Beach must contribute approximately $220,000 annually from the General Fund. The initial fund balance of $134,000 may be used to offset the projected revenue shortfall in 2002 and 2003. Figure 19 - Cash Flow Summary for Police Sunny Isles Beach, Florida (Current $ in thousands) TA Projections Memo 1/2/01 1 2 3 2002 2003 2004 4 2005 5 Cumulative Average 2006 Total Annual REVENUES 5 Police Fee, Low Density Res $1 $1 $1 $1 $1 6 Police Fee, Medium Density Res $1 $1 $1 $1 $1 7 Police Fee, High Density Res $10 $10 $10 $10 $10 8 Police Fee, Hotel Rms $1 $1 $1 $1 $1 9 Police Fee, Commercial $6 $7 $7 $7 $7 10 Police Fee, Off/lnst $39 $39 $39 $39 $39 Subtotal Police Fees $58 $58 $58 $58 $58 $4 $1 $5 $1 $49 $10 $6 $1 $34 $7 $193 $39 $291 $58 CAPITAL COSTS Police Vehicles & Equipment Police Headquarters Debt Service Subtotal Police Costs $37 $0 $37 $38 $242 $279 $38 $242 $279 $37 $242 $278 $37 $242 $278 $186 $966 $1,152 $37 $193 $230 $21 $155 ($221) ($66) ($221) ($287) ($220) ($507) Current $ in thousands ($220) ($861) ($172) ($727) 21 Tischler & Associates, Inc. iSLf:S fie \C-.1-1 f~'f['::.; The municipal facilities impact fee uses a plan-based approach for building space, vehicles and equipment. As shown in Figure 20, the municipal facilities impact fee is calculated on a per capita basis for residential development. For nonresidential development, the fee methodology allocates the capital cost of buildings and vehicles on a per employee basis. Figure 20 - Municipal Facilities Impact Fee Methodology Chart I Residential Nonresidential Development Development Persons Per Employees Per Household 1,000 Square Feet multiplied by multiplied by Plan-Based Plan-Based Cost Per Person Cost Per Employee - Future City Future City ....... Buildings Buildings "-- plus "- pius Vehicles and Equipment Vehicles and Equipment 22 Tischler & Associates, Inc. 13Lt::'; r'U:' Cost of Municipal Buildings and Rolling Stock The proportionate share factors for municipal facilities are based on projected peak population and jobs not at hotels. Because peak population includes guests staying in hotel rooms, the demand for municipal facilities from hotel development is reflected in the population data, not the number of jobs. Figure 21 summarizes the standards that have been used in the municipal facilities impact fee. The total capital cost of $12 million for the new municipal complex has been divided between police (27%) and general government (73%) functions. In addition to the planned City Hall, Sunny Isles Beach expects to construct a Public Works maintenance facility, at an estimated cost of $1 million. The cost of buildings is allocated to projected demand units in 2015. Vehicles and equipment listed below are used for general government functions such as administration, community development and public works. By the year 2005, the City will add a dump truck and chipper, which are necessary for maintenance of parks and street right-of-way. The City of Sunny Isles Beach will use impact fee revenue to expand the vehicle fleet as needed to accommodate development. TA and City staff discussed minimum thresholds for vehicles and equipment to be eligible for impact fee funding. For the purpose of impact fees, we have established a minimum useful life of at least three years and minimum cost of $8,000. 23 Tischler & Associates, Inc. ! S LE~~'~ F3 FJ\~,~11 I i\'l PAC r FE i::S Figure 21- City Buildings and Vehicles LOS Standards Buildings Planned City Hall Public Works Facility Total Cost General Government Share 73% 100% General Government Cost Allocation $8,760,000 $1,000,000 $9,760,000 $12,000,000 $1,000,000 Proportionate Build Out Cost per S hare Demand Units Demand Unit Population 90% 30,900 Peak Population $285 Jobs 10% 3,267 Jobs Not At Hotels $285 Vehicles and Equipment Type Com pact Car Small Pickup Truck Kawasaki Mule 4WD Pickup Truck Van Bucket Truck Street Sweeper Dum p Truck (proposed) Chipper (proposed) TOTAL Units Unit Cost Replacement Cost 1 $18,000 $18,000 2 $16,000 $32,000 1 $14,000 $14,000 2 $25,000 $50,000 1 $20,000 $20,000 1 $ 50,000 $50,000 1 $85,000 $85,000 1 $50,000 $50,000 1 $75,000 $75,000 11 $35,818 $394,000 Proportionate 2005 Cost per S hare Demand Units Demand Unit Population 93% 27,400 Peak Population $13 Jobs 7% 2,200 Jobs Not At Hotels $13 24 Tischler & Associates, Inc, lSL~'~'~~ j. :~. C. .... l,__c.,,- Credit for Future Payments on City Buildings To avoid potential double payment for the new City Hall, the impact fee methodology includes a credit for future principal payments. Sunny Isles Beach anticipates bond financing the municipal complex over 25 years, at an assumed annual interest rate of 5.5%. Because interest costs have not been added to the impact fees, it is not appropriate to provide a credit for future interest payments. Figure 22 - Principal Payment Credit for City Hall Fiscal Principal Peak Jobs Not Payment Year Payments Population At Hotels Per Job 2003 $190.802 26.500 1.880 $6.72 2004 $201.296 27.000 1.987 $6.94 2005 $212.367 27,400 2.093 $7.20 2006 $224.047 27.800 2.200 $7.47 2007 $236.370 28.300 2.307 $7.72 2008 $249.370 28,700 2,413 $8.01 2009 $263.086 29.100 2.520 $8.32 2010 $277.555 29,400 2,627 $8.67 2011 $292,821 29.700 2.733 $9.03 2012 $308.926 30,000 2,840 $9.41 2013 $325.917 30.300 2.947 $9.80 2014 $343.842 30.600 3,053 $10.22 2015 $362.754 30.900 3.160 $10.65 2016 $382,705 31,442 3.267 $11.03 2017 $403.754 31.805 3.373 $11.48 2018 $425,960 32.169 3,480 $11.95 2019 $449,388 32.532 3.587 $12.44 2020 $474.104 32.895 3.693 $12.96 2021 $500.180 33.258 3.800 $13.50 2022 $527.690 33,621 3,907 $14.06 2023 $556,713 33.985 4.013 $14.65 2024 $587.332 34,348 4.120 $15.27 2025 $619.636 34,711 4,227 $15.91 2026 $653,715 35.074 4.333 $16.59 2027 $689.670 35,437 4,440 $17.29 TOTAL $9.760,000 $277.29 Discount Annual Percentage Rate 5.5% Net Present Value $133.37 25 Tischler & Associates. Inc. SUN>!;" ISLES BL:.i,C:H li'v1FAc:' r:FE~~~ Municipal Facilities Impact Fee Summary Standards used to derive the municipal facilities impact fee are summarized in the boxed area of Figure 23. Fees by type of nonresidential development vary according to the number of employees per 1,000 square feet of floor area. Figure 23 - Municipal Facilities Impact Fee Persons Per Occupied Unit Low Density Residential Medium Density Residential High Density Residential Apartment Hotel Resort Hotel Employees Per 1,000 Square Feet Com / Shop Ctr 25,000 SF or less Com / Shop Ctr 25,001-50,000 SF Com / Shop Ctr 50,001-100,000 SF Com / Shop Ctr over 100,000 SF Office / Inst 10,000 SF or less Office / Inst 10,001-25,000 SF Office / Inst over 25,000 SF Level Of Service Municipal Facilities Cost Vehicles & Equipment Cost Principal Payment Credit Net Capital Cost Maximum Supportable Impact Fee Low Density Residential Medium Density Residential High Density Residential Apartment Hotel Resort Hotel Businesses Com / Shop Ctr 25,000 SF or less Com / Shop Ctr 25,001-50,000 SF Com / Shop Ctr 50,001-100,000 SF Com / Shop Ctr over 100,000 SF Office / Inst 10,000 SF or less Office / Inst 10,001-25,000 SF Office / Inst over 25,000 SF 26 Standards: 2.40 1.73 1.67 2.50 2.00 Per Person $285 $13 ($133\ 3.33 2.86 2.50 2.22 4.39 4.04 3.79 Per Em ployee $285 $13 ($1.33) $165 $165 Per Unit $396 $285 $275 $412 $330 Per 1,000 Sa Ft $549 $471 $412 $366 $724 $666 $625 Tischler & Associates, Inc. !:\-1PAc-r Cash Flow Analysis for Municipal Facilities The average impact fee revenue of $69,000 per year for municipal facilities will not be sufficient to cover capital costs. The major capital cost for municipal facilities is debt service on new City buildings, which is projected to be $728,000 per year, starting in Year 2 of the cash flow analysis. Sunny Isles Beach will also add one vehicle to the municipal facilities fleet over the next five years. Once debt service obligations begin, the City must contribute approximately $665,000 per year from General Fund revenue. Because this is a new type of impact fee, there is no initial balance for the municipal facilities fee. Figure 24 - Cash Flow Summary for Municipal Facilities Sunny Isles Beach, Florida (Current $ in thousands) TA Projections Memo 1/2/01 123 2002 2003 2004 4 2005 5 Cumulative Average 2006 Total Annual REVENUES 11 M un Fac Fee. Low Density Res $3 $3 $3 $3 $3 12 Mun Fac Fee, Medium Density Re $4 $4 $4 $4 $4 13 Mun Fac Fee. High Density Res $38 $38 $38 $38 $38 14 M un Fac Fee, Hotel Rms $1 $1 $1 $1 $1 15 Mun Fac Fee ,Commercial $1 $1 $1 $1 $1 16 Mun Fac Fee, Off/lnst $21 $21 $21 $21 $21 Subtotal Municipal Facilities Fees $69 $69 $69 $69 $69 CAPITAL COSTS Municipal Facilities Vehicles & Equipme City Buildings Debt Service Subtotal Municipal Facilities Costs $8 $0 $8 $7 $728 $734 $8 $728 $735 $7 $728 $734 $7 $728 $734 NET CAPITAL FACILITIES CASH FLOW, Municipal Facilities Annual Surplus (or Deficit) Init Bal $61 Cumulative Surplus (or Deficit) $61 ($665) ($604) ($667) ($1,271) ($665) ($1,936) ($665) ($2,602) 27 $16 $3 $18 $4 $191 $38 $7 $1 $6 $1 $106 $21 $344 $69 $36 $7 $2,910 $582 $2.946 $589 Current $ in thousands ($2.602) ($520) Tischler & Associates, Inc. 1:\1r:'i\GT FtF':c TA recommends that impact fee revenue should be placed in a separate fund and only be used for the capital improvements, as documented in the impact fees study. Interest earned on monies in the separate fund should be credited to the fund. All costs in the impact fee calculations are given in current dollars with no assumed inflation rate over time. Necessary cost adjustments can be made as part of a recommended periodic evaluation and update of impact fees, which should take place every two or three years. The City can make interim-year adjustments for inflation in construction costs by using an index like the one pUblished by Engineering News Record (ENR). This index could be applied against the adopted impact fee schedule. If cost estimates change significantly the City should redo the fee calculations. Nonresidential development categories are based on land use classifications from the book Trio Generation (ITE, 1997). A summary description of each development category is provided below. Shopping Center (820) - A shopping center is an integrated group of commercial establishments that is planned, developed, owned and managed as a unit. A Shopping center provides on-site parking facilities sufficient to serve its own parking demands. Shopping centers may contain non- merchandizing facilities, such as office buildings, movie theaters, restaurants, post offices, banks, health clubs and recreational facilities. In addition to the integrated unit of shops in one building or enclosed around a mall, many shopping centers include out-parcels. For smaller centers without an enclosed mall or peripheral buildings, the Gross Leasable Area (GLA) may be the same as the Gross Floor Area (GFA) of the building. General Office (710) - A general office building houses multiple tenants including, but not limited to, professional services, insurance companies, investment brokers and tenant services such as banking, restaurants and service retail facilities. In the impact fees study, this category is used as a proxy for institutional uses that may have more specific land use codes. 28 Tischler & Associates, Inc.