HomeMy WebLinkAbout05/04/2001 1225 Main Street [~ Sebastian, Florida 32958
Telephone {561] 589-5330 [] Fax {561} 589-5570
City Council Information Letter
May 4, 2001
Annexation Feasibility Synopsis by Paul Tischler
Please find the attached preliminary report as compiled and delivered by
Paul Tischler, our consultant commissioned for purposes of ascertaining
what types of activities are feasible to address various issues regarding
annexation, as well as the cost of development. This initial report serves an
original purpose of succinctly outlining the City of Sebastian's ability and
affordability of annexing certain land use designated properties into our
corporate limits, as well as overall fiscal impacts of growth in general.
Another element of this exercise involves a public presentation by Mr.
Tischler to address various aspects accordingly. As such, Mr. Tischler has
been scheduled to attend the June 13th City Council meeting to present
respective findings. In addition, various staff members prior to the meeting
will compile other applicable recommendations, via discussions and further
analysis of respective fiscal impacts. The final page of the report outlines
relevant proposed future tasks related to both a Prototype Fiscal Analysis
and Impact Fee structuring. At this time, we do not feel that it would be
necessary to commission consulting services for all activities listed.
However, tremendous clarification will be provided during the
aforementioned scheduled meeting.
Clock Tower Location Plannin,q - Lo.qistics
As addressed during your last meeting, I wish to further clarify planning
logistics related to the anticipated location of the Sebastian Millennium
Clock Tower. I believe questions had been raised as to jurisdiction of
Fellsmere Road between United States Highway One (US1) and Indian
River Drive. Since your last meeting, research was performed to confirm
our position that this portion of the thoroughfare is city jurisdiction. As City
Engineer Ralph Brescia had an opportunity to speak with Indian River
County Director of Public Works Jim Davis this week, it was indicated that
the street, in fact, belongs to the City of Sebastian (Please reference the
City Council Information Letter
May 4, 2001
Page 2
electronic mail message from Ralph Brescia delivered to me yesterday
afternoon. In addition, this portion of Fellsmere Road was never
incorporated into any of Indian River County's long range transportation
plans. Now we all understand why!), in addition, I have included
information as researched by Sally Maio regarding previous City Council
action to close this section completely. In 1993, the then City Council
directed such action, to no avail possibly due to various administrative
transition of the day. I am pleased to report that the plan as presented last
week will also include a concrete path, connecting Coolidge Street and
Fellsmere Road, to provide an opportunity for traffic to flow from Fellsmere
Road, to the traffic light and into US1 (Reference attached sketch). As such
and once again, I think this arrangement is sound, which would initiate a first
phase to connect public properties for pedestrian use and enjoyment.
interestingly however, this concept is not original for current city
administration, as initially authorized in 1993.
Presentation by John Dean - City Hall Restoration
As arrangements are underway to compile and deliver architectural and
engineering plans for the Sebastian City Hall Restoration Initiative, please
be advised that commissioned architect John Dean has been scheduled to
present relevant schematics for respective interior improvements during
your May 23rd meeting. Visual aides such as architectural drawings and
explanation of existing conditions will be presented and discussed. In
addition, a resolution authorizing application to the Florida Bureau of Historic
Preservation to solicit funding for the interior restoration is anticipated for
your consideration (as previously reported due in Tallahassee Thursday May
31st), as the efforts of John Dean and his engineering subcontractors are
key to the content of the application. As such, this session will be very
informative and educational.
Messa,qe for Ad Book - Independence Day Celebration 2001
Earlier this week, I met with Sebastian Lion's Club representatives Jerry
Osmundson to discuss various aspects of Sebastian Independence Day
Celebration 2001. The ad booklet was addressed, in which numerous ideas
regarding the city's written message were outlined. I therefore wish to
recommend either a 'Message from the City' or 'Message from the Mayor'
synopsis to be outlined in the first page of the booklet. This piece should be
compiled via collaboration with an elected official in effort to provide a
City Council Information Letter
May 4, 2001
Page 3
sincere statement. As such, I would like to work with any of you for this
purpose. Any volunteers?
Out of Office
Just a reminder that I will be out of the office both Thursday and Friday May
10th and 11th respectively to represent the City of Sebastian at the annual
Florida City/County Management Association Conference in Fort
Lauderdale. As such, no information letter will be delivered next week. I will
be returning to Sebastian Sunday, May 13th. Attached is the address and
telephone number of the hotel in which I will be housed during the
conference, for use in the event that any of you require to speak with me
personally during said time. To all of your wives in advance, HAVE A
HAPPY MOTHER'S DAY!
Enclosure(s):
Prelimina~ Annexation Feasibility Report
Background information, Fellsmere Road, US 1 to Indian River Drive
Personal Information, FCCMA Conference (Sealed)
My Documents/InfoLetter89
Terrance Moore
From:
Sent:
To:
Cc:
Subject:
Ralph Brescia
Thursday, May 03, 2001 11:09 AM
Terrance Moore
Terry Hill; Tracy Hass
512 Extension- Clock Location
As per your direction, I contacted Jim Davis (PW Director -IRC)regarding
the ownership of the above street. Jim indicated that after researching the issue, to the best of his knowledge, the street
belongs ,in fact, to the City of Sebastian.
3
City of Sebastian
POST OFFICE BOX 780127 r~ SEBASTIAN, FLORIDA 32978
TELEPHONE (407) 589-5330 [] FAX (407) 589-5570
SUBJECT: Riverview Park North )
Conceptual Plan )
)
)
)
Approved for Submittal By: )
)
City Manager )
)
Agenda No.
Dept. Origin
Date Submitted
For Agenda of
ENG/P~
04-29-93
05-05-93
Exhibits: Riverview Park
Conceptual Master Plan
EXPENDITURE AMOUNT APPROPRIATION
REQUIRED: BUDGETED: REQUIRED:
SUMMARY STATEMENT
At the regular workshop meeting of January 6th, 1993,
the City Council authorized staff to proceed with the
implementation of the 1993 Plan of Action for the
Riverfront. Following the workshop meeting at the
regular meeting of January 27th, City Council moved to
approve the agreement for professional services with
Brad Smith and Associates to prepare a conceptual
master plan for Riverview Park North.
Following City Council approval staff met with the
consultant to review the use and the layout of
Riverview Park North in con3unction with the existing
park and anaylized the closure of Fellsmere Road.
After some discussion, it was determined that Fellsmere
Road Gould wrap around the Superamerica west of the park
and connect to Coolidge. This layout would allow boaters
to have access both to and from the Yacht Club boat
ramp and would provide adequate sree to construct a
raised pavilt±on for special events. It was also agreed
that concrete walkways would connect with the existing
walk paths uniting both parks together and that
provisions for grass boat trailer parking would be
provided.
Staff feels the consultant has done an excellent
3ob in preparing the Conceptual Master Plan and
color rendering at the direction of star. It will
be up to City Council to review the Conceptual Plan
and make the appropriate modifications that they deem
necessary.. It is our hope that this Conceptual Master
Plan becomes more than just a rendering and that we
would be able to move forward with the architectural
and engineering design of this project.
RECOMMENDED ACTION
Move to approve the Conceptual Master Plan and direct
staff to proceed with construction documents for the
proposed park improvements.
City Council Workshop
May 5, 1993
Page Five
The Director of Community Development gave a brief
presentation of the new proposal.
city Council members offered individual input and a
lengthy discussion followed.
TAPE II - SIDE I (8:48 p.m.)
City Council discussion continued.
The Director of Community Development said he sees a
consensus among three members to maintain the current
ordinance.
Mr. Oberbeck was excused from 9:17 p.m.to 9:19 p.m.
Following further discussion, it was the consensus of
City Council to add to the current ordinance a
minimum height of six feet and 1 1/2 inch caliper,
distribution of homeowner packet, and city relocation
of trees at city expense.
Mr. Oberbeck suggested a six month inspection.
TAPE II - SIDE II (9:35 p.m.)
The Director' of Community Development said staff
would redraft the ordinance and bring it back to
Council.
City
Mayor Powell called recess at 9:40 p.m. and
reconvened the meeting at 9:45 p.m. Ail City Council
members were present.
93.050 B.
Riverview Park Conceptual Desian fBrad Smith)
(Staff Recommendation dated 4/29/93. Riverview
Park Conceptual Master Plan (Under Separate
Cover~
John Malek, 2144 19th Avenue, Veto Beach, said he
applauds the plan.
The city Engineer introduced Brad Smith who presented
the conceptual plan to city Council.
The City Manager gave a brief presentation and city
Council discussion followed.
5
city Council Workshop
May 5, 1993
Page Six
A~need for parking spaces in the plan was discussed.
Mr. Smith advised that there may be other
alternatives to turning the entire north property
over to parking and suggested the city may want to
conduct a parking study.
Project funding sources were discussed. The city
Manager recommended that grant funding could be
pursued and could be supplemented by the one cent
county option gas tax.
It was the consensus of City Council that it concurs
with the closing of Fellsmere Road, the pavillion
concept is acceptable with phasing, that parking and
funding issues have to be addressed and the
conceptualplan be revised accordingly.
TAPE III - SIDE I (10:30 p.m.)
At 10:30 p.m. motion was made as follows:
MOTION by Oberbeck/Damp
I would move that we extend the meeting 15
minutes.
ROLL C~T.!~:
Mrs. Coru~ ' - aye
Mrs. Damp - aye
Mr. Freeland - aye'
Mayor Powell ~ aye
Mr. Oberbeck - aye
MOTION CARRIED 5-0
93.156
Ce
Airport Land Lease (city Manaaer Recommendation
dated 4/28/93, Nash ~etter dated 3/31/93 w/22
page lease. Price letter dated 4/20/93, Pr$ce
letter dated ~McClarv "Airport Leases"
dated 1/25/93. McClarv "Analysis of Per Acre
Airport Rentals" dated 4/20/93, WI{S Airport
Master Plan dated August, 1992 pages RS-1. R8-2,
Tables 8.lA, $.1B, $.1C. J~A "Lease Rates" dated
4/27/93, ~-86-4A dated 1/15/86 ~ ~3 only,
Jacksonville Port Authority "Survey o__f Florida
Airports" page ! ~ ! only, Vero Beach Municipal
Airport "Rate Study" dated 3/15/93 - 23 paaes o__~
file in City Clerk's office. A_rmfield-Wa~ner
Appraisal & Research, Inc. appraisal report dated
12/4/93 - 143 pages on file i~ city Clerk's
office%
ANNEXATION FEASIBILITY
REPORT
Prepared for:
City of Sebastian, Florida
April 25,2001
Prepared by:
Tischler & Associates, Inc.
Fiscal, Economic & Planning Consultants
4701 Sangamom Road
Suite N210
Bethesda, MD 20816
(301) 320--6900
Fax: (301) 320-4800
80 Annandale Read
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 Pieening
Economic and Market Analysis
MUNIES, FISCALS & CRIM
Fiscal impact systems tailored
for each communiiy
I. SUMMARY
A. Nature of Assignment
Tischler & Associates, Inc., (TA) is a fiscal, economic and planning consulting
fm-n which speciai/zes in fiscal impact evaluations, impact fees and other
revenue exactions. The purpose oftlfis assi&-nment was to determine what types
of activities would be feasible to undertake in order for the City to better
understand the various issues regarding armexation as well as the cost of
development.
B. Land Use Issues
The City population increased by 60% in the 1990's, and can increase by over
100% if the existing residential lots are developed. Additional growth will come
from annexation. Knowing the likely City costs from infill and annexation is
important in order to make better planning and fiscal decisions.
C. City Services
The increased new development will create additional demands on City services
and costs, particularly the General Fund categories of police, parks and recreation,
and municipal facihfies and equipment. Understanding the City capital as well as
operating expenses generated by land use category will help the City make better
policy decisions.
D. Revenue Issues
The four major General Fund revenue sources to the City are property taxes (25%),
utility taxes (20%), sales taxes redistributed from the state (15%), and franchise
taxes (10%). A new house, approximating $110,000, would generate property taxes
to the City of about $500 (after homestead exemption). It is probable that when one
considers this and other direct revenues, and then deducts the costs, at least some
residential acti'cifies are generating net deficits to the City. Therefore it is very
important for the City to have nonresidential development which generates net
revenues. Calculating the cost of development by different types of land use (i.e.
single family detached, townhoase, multi-family, retail, office, industrial-flex,
hotel) would indicate which land uses generate net revenues and deficits to the City.
This type of analysis is called a prototype analysis.
E. Impact Fees
Impact fees are fees to cover new growth's fair share of capital facility costs. At the
present time the City has no impact fees; however it collects road impact fees for
the County. Impact fees are fairly common in many Flor/da jurisdictions. The fee
categories usually include police, fire, parks and recreation, municipal facilities and
equipment, and roads.
'I~scI4T .~-R &
ASSOCIAT , INC.
4701 Sangamore Road
Suiie N210
Bethesda, MD 20816
(301) 320-6900
Fax: (301) 320-4860
80 Anoandale Road
Pasadena, CA 91105-1404
(818) 790-6170
Fax: (818) 790-6235
(800) 424-4318
tischlemssociates.com
Fiscal Impact Analysis
Capital Facility Analysis
impact Fee Systems
Growth Policy Planning
Economic and Market Analysis
MUNIES, FISCALS & CRIM
Fisml imgact systwna tailored
for each community
TABLE OF CONTENTS
A, Nature of Assignment ............................................................................................... 1
B. Land Use Ismes ........................................................................................................ 1
C. C~ty Services ............................................................................................................ 1
D. Revenue Issues ......................................................................................................... 1
E. Impact[Fees .............................................................................................................. 1
F. Suggested Work Program ......................................................................................... 2
NATURE OF ASSIGNMENT .............................................................................. 2
LAND USE ISSUES .............................................................................................. 2
CITY SERVICES .................................................................................................. 3
REVENUE ISSUES ............................................................................................... 3
IMPACT FEES ...................................................................................................... 4
SUGGESTED WORK PROGRAM .................................................................. 4
PROTOTYPE FISCAL ]IVJEPACT ANALYSIS ...... : ......................................... 5
A. Definition of Fiscal Impact ~malysis ........................................................................ 5
B. Types of Fiscal Impact Bv~luationa .......................................................................... 5
C. Benefits of Recommeudod ProtoWpe Approach ...................................................... 5
D. Work Scope .............................................................................................................. 6
IX. 1MI~ACT FEE CALCULATIONS ....................................................................... 7
A, Defin/tion of Impact Fee .......................................................................................... 7
B. Benefits .................................................................................................................... 7
C. Work Scope .............................................................................................................. 7
X. DELIVERABLES ................................................................................................ 12
A. Prototype Fiscal Analysis ....................................................................................... 12
B. Impact Fees ............................................................................................................ 12
XI. COST .......... ; ......................................................................................................... 13
A. Prototype Fiscal Analysis ....................................................................................... 13
B. Impact Fee Report .................................................................................................. 13
C. Optional Tasks Relating to Impact Fee Report ....................................................... 13
TA recommends calculation of impact fees for parks and recreation, police and municipal
equipment and buildings for two major reasons. One is the calculation of the impact fees will
allow an accurate cost figure to be inserted for the prototype fiscal impact analysis capital facility
component.
A second important reason for calculating impact fees is that it is likely that new residential
development is not paying for itself. The calculation of impact fees will allow the City to
understand new growth's fair share of capital facility demands from new development and any
subsidies being paid by existing residents. For purposes of illustration only, if one assumed that
a justifiable impact fee was $1000, and that there were an average of 275 housing units a year
being built, the City would receive $275,000 annually or about $23,000 monthly in revenues it
does not currently receive.
F. Suggested Work Program
Based on the site interviews and review of information, TA recommends two major activities be
conducted. The first major activity is to calculate the cost to the City from new development by
type of land use, a prototype fiscal analysis. TA believes that most types of residential activity
cost the City money. A second major activity is to prepare impact fees, new growth's fair share
of capital facilities. The suggested categories are police, parks and recreation, and municipal
facilities and equipment. The reasons for the suggested work program are further discussed in
the body of this report.
H. NATIfRE OF ASSIGNMENT
Paul Tisch/er of TA conducted on-site interviews, reviewed information and considered other
national as well as State experience regarding these issues in the preparation of this report.
III. LAND USE ISSUES
The City increased its population fi.om about 10,000 in 1990 to 16,000 in the year 2000, a 60%
increase. Without annexation the population is anticipated to increase to about 35,000, a
doubling of the current population. This increase would be primarily through housing built on
existing lots within the City boundaries. Consequently there will be an increase in the demands
for service, resulting in the need for the City to provide additional services. At an annual rare of
about 275 new housing permits per year within the City boundaries, infrastructure capacity and
related operating expenses will become important in terms of serving both existing as well as
new residents.
Another land use issue is annexation. The City occasionally receives requests for annexation by
property owners in the unincorporated county. A related annexation question is the desirability
of squaring off some of the City's boundaries as well as acqui~g unincorporated properties
within the current city limits. An important part of the decision making process is what the-cost
of this annexation will be to the City and whether existing residents will have to subsidize this
activity. This is discussed further below.
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Tischler & Associates, Inc,
Knowing the likely City costs from irrfill and annexation is important in order to make bett~
planning and fiscal decisions.
IV. CITY SERVICES
Perhaps the major City service which may require the most expenditures is the stormwater
system. The City has wisely contracted to have a stormwater master plan prepared which will
indicate both the capital as well as operating costs for implementing an appropriate stormwater
system within the City. It is anticipated that a financing program and implementation
mechanisms will be provided as part of the consultant work.
The major General Fund expenditure pertains to police activities. As the City continues to grow
there will be an increased demand for pohce services and a resulting increased need for both
police cars, building space as well as operating expenses. Therefore over time there will be a
need to increase the approximately 30 vehicles currently utilized as weI1 as police station square
footage.
The need for additional park and recreation land, improvements, as well as personnel, will
continue as the City grows. The City has been fairly successful in obtaining grant money to help
defray a portion of these expenditures.
Municipal facilities and equipment is the large category encompassing most of the remaining
City activities. If the City continues to grow, and doubles in population over time, k will need
additional administrative space, staff as well as related equipment and vehicles not reflected
above.
Roads is another important infrastructure kern. At the present time there are two main roads
upon wh/ch most City traffic travels - County Route 512 and U.S. Highway 1. Within the City,
Main Street is probably the most traveled road. At the present time, the major focus of City road
expenditures in on resurfacing since in most cases there is ample capacity on City streets given
the current number of trips and traffic patterns within the City. However, in the longer term,
there will be increasing pressure for the City to widen streets andTor to increase road capacity
through traffic signahzafion, etc.
Understanding the City capital as well as operating expenses generated by land use category will
help the City make better policy decisions.
V. REVENUE ISSUES
The major revenue source to the City is fi.om property taxes. This constitutes about 25% of the
total General Fund revenues. Utility taxes comprise the second greatest revenue, about 20%.
This is followed by revenues fi:om the 0.5 cent sales tax the City receives through redistribution
bom the State, about 15%. The fourth largest category is revenues from the franchise tax,
representing about 10% of the total General Fm~d income.
3
Tischler & Associates, inc.
The property tax is a function of assessed value, or taxable ratables. It is estimated that a new
house, approyfnnating $110,000, would generate property taxes to the City of about $500 (atter
homestead exemption). It is probable that when one considers this and other direct revenues, and
then deducts the costs, at least some residential activities are generating net deficits to the City.
Therefore it is very important for the City to have nonresidential development wtfich generates
net revenues. Calculating the cost of development by different types of land use (i.e. single
fanfily detached, townhouse, multi-family, retail, office, industrial-flex, hotel) would indicate
which land Uses generate net revenues and deficits to the City. This type of analysis is called a
prototype analysis. This is discussed in a subsequent section.
VI. IMPACT FEES
Impact fees are fees to cover new growth's fair share ofcapitai facility costs. At the present thne
the City has no impact fees; however it collects road impact fees for the County. Impact fees are
fairly common in many Florida jurisdictions. The fee categories usually include police, fire,
parks and recreation, municipal facilities and equipment, and roads.
TA recommends that some impact fees be calculated which would be fed into the prototype
fiscal impact analysis recommended above. TA recommends calculation of impact fees for parks
and recreation, police and municipal equipment and buildings for two major reasons. One is the
calculation of the impact fees will allow an accurate Cost figure to be inserted for the prototype
fiscal impact analysis capital facility component. Without this, more of a guesstimate will need
to be made regarding the likely capital costs to allocate to each land use type.
A second important reason for c~/Iculating impact fees is that it is likely that new residential
development is not paying for itself. The calculation of impact fees will allow the City to
understand new growth's fa'n: share of capital facility demands from new development and any
subsidies being paid by existing residents. For purposes of illustration only, if one assumed that
a justifiable impact fee was $1000, and that there were an average of 275 housing units a year
being buik, the City would receive $275,000 annually or about $23,000 monthly in revenues it
does not currently receive.
It should be noted that the City collects a road impact fee for the County of about $700 per
house. The annual revenues paid to the County for this road impact fee usually exceeds
$200,000. As discussed further below, TA recommends that there be a review regarding the
methodology and utilization of the monies to ensure that relevant impact fee requirements are
met.
VII. SUGGESTED WORK PROGRAM
Based on the site interviews and review of information, TA recommends two major activities be
conducted. The first major activity is to calculate the cost to the City from new development by
type of land use, a prototype fiscal impact analysis. TA believes that most types of residential
activity cost the City money. A second major activity is to prepare impact fees, now growth's
fair share of capital facilities. The suggested categories are police, parks and recreation, and
4
Tischler & Associates, Inc.
mun/cipal facilities and equipment. The reasons for the suggested work program are further
discussed in the body of this report. The two major work activities are discussed in mm.
VIII. PROTOTYPE FISCAL IMPACT ANALYSIS
A. Def'mition of Fiscal Impact Analysis
A fiscal impact analysis helps determine whether growth pays for itself. It is the cash flow to the
public sector. More specifically, revenues are calculated and then the capital costs and operating
expenses are subtracted fi.om the revenue amount. A surplus represents net revenues, while a
deficit represents net expenditures to the community from that type of development.
B. Types of Fiscal Impact Evaluations
There are two general types of fiscal impact evaluations. One is an evaluation of different
growth scenarios. Examples of these could include a trends growth, higher employment,
different spatial distributions, different m/xes of housing and pace of growth. This type of
analysis is generally performed if future development scenarios are being discussed and there is a
desire to calculate their fiscal impacts.
The other fiscal impact approach is the prototype fiscal impact analysis. Under the prototype
approach, the fiscal impact is calculated for specific types of land use. Examples could be the
fiscal impact of a typical single-family house, townhouse, multi-family unit, as well as single-
family ur~ts by market value. The nonresidential activities would be evaluated on a per/1000
square foot basis. The categories normally would be retail, office, industrial-flex. This study
would allow the City to understand whether each type of residential unit generates a net surplus
or deficit. A similar calculation would be made for the nonresidential.
C. Benefits of Recommended Prototype Approach
TA recommends that the prototype fiscal impact approach be utilized for the City. One
important benefit is that the City should better understand the fiscal impacts of housing by type
in order to understand the extent of net revenues or deficits created by hous/ng type. A second
benefit is that the prototype fiscal information will also be useful for determin'mg what type of
nonresidential land use should be encouraged on existing vacant sites within the City. Another
benefit is that the prototype fiscal analysis would allow the City to know what incentives might
be able to be offered for different types of land use and still generate net City revenues. Tiffs
information would also enable decision makers to better implement changes in revenue structure
as appropriate. Another benefit would be to better understand the probable fiscal impact of the
different types of land use that are proposed for annexation. This information will allow the City
to make more informed decisions regarding the acceptance of the annexation, the type of
annexation, and the pace of annexation.
The product will provide appropriate narrative and graphics to indicate the net .costs or revenues
due to these different land use types. This will enable any/nterested party, to easily understand
the fiscal differences between different types of residential as well as nonresidential laud uses,
and the importance of attracting different types of nonres/dential activity to help defray the cost
of resident/al.
5
Tischler & Associates, Inc.
D. Work Scope
The following tasks are suggested for preparing a prototype land use fiscal analysis.
Task 1. Agree on Prototype Land Uses to be Considered
Possible prototype land use categories will be discussed and agreed upon. Examples could be:
Land Use Category
Residential:
Single-family High Value
Single-family Medium Value
Single-family Low Value
Townhouse
Multi-family (2/3-Story Walk-up)
Nonresidential:
Industrial Flex/1,O00 sq. ft
Office/1,000 sq. fl
Retail/I,000 sq. ft
Work Product: Memorandum Discussing Prototype Land Uses
Task 2. Onsite Interviews
Meetings with appropriate personnel will be held to obtain/nformafion utilizing the appropriate
allocation methodology. All relevant cost and revenue factors will be reflected.
Work Product: See Below
Task 3. Prepare Cost and Revenue Factor Assumption Document
The relevant cost and revenue factor assumptions will be prepared Ln a table format show/rig the
category, the allocation methodology and the mount on a per capita employee and/or a per
housing unit/i,000 nonresidential square feet basis. A narrative will also be provided. Tkis will
be sent to the City for a review and sign-off. After any mutually agreed changes are made, the
next task will proceed.
Work Product: Cost and ReYenue Factor Assumption Document
Task 4. Prepare Prototype Land Use Fiscal Analysis
Based on the above tasks, a succinct cost and revenue analysis report will be prepared. There
will be graphs as well as tables sho~ving the net surplus or deficit for each of the land use
6
Tischler & Associates, inc.
categories (up to 10). In addition, there will be sections on the fiscal implications of the find'rags
and strategies and recommendations. This should be beneficial to the City in understanding the
appropriate mixes of different types of land use. The report will be easy to understand and
comprehend and will have appropriate graphics. The table of contents may be as follows:
Executive Summary
Average Annual Results by Prototype
Fiscal Implications
A draft report will be provided to the client for review. After mutually agreed changes are made,
a final report will be sent.
Work Produ ct:
Task 5. Presentation
Prototype Land Use Fiscal Analysis Report
There will be one presentation of the Prototype Land Use Fiscal Analysis results (and impact
fees if conducted simultaneously.)
Materials and Graphics as Appropriate
Work ~roduct:
IX. IMPACT FEE CALCULATIONS
A. Definition of Impact Fee
An impact fee is new growth's fair share of the capital facilities impacts. The impact fee is
applied only once and to new development. The impact fee needs to meet the proportional
benefit and rational nexus requirements.
B. Benefits
The two major benefits have already been discussed. One is to have new growth pay its fair
share of cap/tM facilities pertaining to police, parks and recreation, and municipal facilities and
equipment. The other is to make the prototype fiscal analysis more accurate regarding the capital
facility costs.
C. Work Scope
Task 1. Ascerta'm Demand Factors and Level of Service for Relevant Public Facilities
There are several important components to this task. The first is ascertaining the actual demand
that generates the need for new capital facilities. For example, police is best calculated as a
function of calls for service in which nonresidential and residential demands differ. During our
interviews with the service providers, we will confirm the most appropriate demand sources.
Other factors that are likely to influence demand include land use type and intensity,
demographic characteristics such as numbers of persons per household and/bt subcategofies of
land use. (It is important to note that if impact fees are not conducted simultaneously with the
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Tischler & Associates, Inc.
prototype fiscal /mpact analysis (FIA), TA will use more general methodologies and data
assumptions for the FLA.)
A second important subtask is calculating the appropriate level of service. Impact fees usually
reflect the ex/sting levels of service for purposes of calculating the new demand, unless there are
extenuating circumstances. We will determine the appropriate current level of service through
additional onsite interviews with the service providers and analysis of local data. The level of
service description will vary by activity.
The above subtasks will enable us to ensure that two important impact fee legal requirements are
met; namely the proportional benefit and the rational nexus relationsinps. The information from
tins task will be prepared in a written format winch will then be submitted to the City for its
review.
As parr of this task, we also will review cost estimates prepared by the City for all completed mad
planned infrastructure improvements. As appropriate, we will use Marshall Valuation Services.
Pgork _Product:
See Below
Task 2. Review Capital Needs and Costs and Allocate to Growth
This task will determine relevant capital needs and associated capital facility costs due to the
proposed development.
A. Long Range Capital Needs. In this subtask, TA will further review the various studies and
other data germane to the relevant city capital facility act/v/ties. TA will work w/th city staff to
forecast the capital facility needs due to growth over the next five plus years. The discussions
may include not only an understanding of the specific costs to provide punic facilities and
services, but also include discussions pertaining to whether these capital facilities needs were due
to normal replacement, catch-up, or new demand. The issue of catoh-up will be discussed in the
context of new development paying for ingher levels of serdce than those ~vhich currently exist.
B. Review Cost Estimates. In this subtask we will review, as relevant, the various capital costs
for facilities. As part of this subtask, we will ascertain whether the facilities are I/kely to be
bonded, and if so, the amortization schedule.
As pan of calculating the impact fees, the City may include the construction contract price; the
cost of acquiring land, improvements, materials and fixtures; the cost for planning, surveying,
and engineering fees for services provided for and directly related to the construction system
improvement; and debt service charges, if impact fees are used to pay the debt service to finance
the cost of the system improvements.
C. Evaluate Development Policy Implications of Different Allocation Methodologies. As part
of the interaction with the City, we will; consider different possible allocation methodologies,
dollars being utilized for replacement costs versus capital costs; as well as allocation of those
costs to different types of land uses.
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Tischler & Associates, Inc.
Work Product: Capital Improvement Needs Accommodating New Growth
Task 3. Determine Need for and Calculate "Credits" to be Applied Aga/nst Capital Costs
A consideration of "credits" is integral to the designing of a legally valid impact fee calculation
methodology. There is considerable confusion among those who are not immersed in impact fee
law about the definition ora credit and why it may be legally or equitably required.
There are, in fact, two (2) types of"credits," each with specific, distinct characteristics, but both
ofwkich will be included (or, at least considered) in the designing of all impact fees. The first is
a credit due to possible double payment situations. Tkis could occur when future contributions
axe made by the property owner toward the capital costs of the pubhc facility already covered by
the impact fee. The second, which we will call an adjustment (as opposed to a credit), is a credit
toward the payment of a impact fee due for the required dedication of public sites and/or pubhc
improvements provided by the developer and for which the impact fee is imposed.
Work Product:
See Impact Fee Report Below
Task 4. Conduct Funding Source and Cash Flow Analyses
In order to calculate the feasible capital improvements needs required by the City over time as
development occurs, it is important to .evaluate the anticipated funding sources. In this subtask,
we will prepare a cash flow analysis wh/ch indicates the sources of funding, independent of
impact fees. This calculation will allow the City to better understand the various revenue sources
available, including impact fees and the additional mount wh/ch might be needed if the impact
fees were not adopted or were discounted. It will also provide a good understanding of the cash
flow needed to cover the capital facilities both for existing and new growth.
The initial cash flow analysis will indicate whether additional funds might be needed or whether
the capital improvements schedule might need to be changed. This could also affect the total
credits calculated in the previous task. Therefore it is likely that a number of iterations will be
conducted in order to refine the cash flow analysis reflecthig the capital improvement needs. We
believe that this is an extremely important component of a impact fee analysis; and, that the
absence of this analysis frequently distorts the entire impact fee analysis and fee schedules.
Work Product:
Cash Flow Analyses Reflecting Capital Improvement Needs and
Applicable Impact Fees
Task 5. Complete Impact Fee Methodology and Calculation
The completion of the above tasks will enable the impact fee methodology to be appropriately and
equitably determined and final/zed. The impact fee that results from tiffs methodology will be the
maximum legally justifiable fee that could be charged while meeting all of the statutory
requirements for impact fees. (The City will subsequently decide what percentage of the maximum
justifiable fee it wants to charge.)
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Tischler & Associates, Inc,
Work Product: See Impact Fee Report Below
Task 6. Preparation of Impact Fee.Report
We will prepare a draft report which summarizes the need for the impact fees for the appropriate
public facility category and which provides the relevant methodology for determining the fee
mount. The report will include at a nfirfimum the following information:
· Executive Summary
· A detailed description of the methodologies used during the study
· A detailed description of all formulas used and accompanying rationale
· A detailed schedule of ail proposed fees listed by land use type and activity
· Summary of capital improvement needs generated by the new growth
· Other information which explains and justifies the resulting recommended impact fee
schedules
After client review, we will make mutually agreed upon changes and produce five copies of the
final report.
The impact fee report will have flow diagrams clearly indicating the methodology and approach,
a series of tables for each activity showing all of the data assumptions and figures, and a
narrative' exp]ain]ng all of the data assumptions, sources and methodologies. The report will be a
stand-alone document which will be clear, concise and readily understood by all interested
parties. Because of our extensive experience in calculating impact fees and preparing such
reports, we have developed a very succinct written product which provides the client with a well-
understood paper trail.
We will present a draft of the report to the chent at a mutually agreed upon time.
Work Product: Impact Fee Report
Task ?. Meetings/Presentations
Throughout the process, we will be coordinating with the appropriate officials. We will attend
one on-site presentation/public heating.
Work Product:
Appropriate Materials and Graphics
Task 8. Prepare Draft Impact Fee Ordinances and Related Procedures (Optional)
An impact fee attorney will draft appropriate individual impact fee ordinances for the specific
public facility categories. These individual fee ordinances will be linked closely to the
applicable individual fee calculation methodology and to the apphcable portion of the capital
improvement program. Each Ordinance will incorporate individualized and selective provisions
that are unique to each public facility.
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An Impact Fee Procedures Ordinances will also be drafted which will be designed to incorporate
all administrative and procedural requ'zrcments relative to the imposition, calculation, deposit,
appropriation, expenditure and administration of all of the impact fees adopted by thc City. The
reasons for the design and adoption of such as ordinance are to ensure that all impact fees meet
all statutory and legal requirements and to ensure that both City staff and officials responsible for
admirfistering the individual impact fee ordinances as well as applicants for development
approval, need only familiarize themselves with one basic procedure.
Work Product: Draft Impact Fee Ordinance
Task 9. Liaison Committee (Optional)
In our calculation of impact fees around the country, it has been very beneficial to have a liaison
conunitte¢. The purpose of tiffs committee is to allow interested parties to understand the land
use, demographic, cost, revenue, credit and other data and supporting documentation that is
being used in the calculation of knpact fees. Through th/s committee, developers, builders, and
other interested parties as designated by the City will be able to understand the assumptions and
raise any questions about the tech_rfical information being utilized. This will not be a forum to
discuss the political and/or philosophical use of irnpact fees. Rather it will be an opportunity for
these interested parties to understand the soundness and the reasonableness of the techuical
impact fee methodology. We anticipate two meetings with this group. The first would be to
discuss the initial data assumptions, after "sign-off' by the client. The second would be to
discuss the draft report. Utilizing this forum will enable the focus of the public hearings to bc on
the political and economic issues of implementing impact fees, not the technical approach.
Work Product:
Appropriate Presentation Material
Task 10. Review of County Road Impact Fee Program / Implementation (Optional)
TA will review the methodology and implementation of the County road impact fee. This will
include reviewing the original study, revised fees, collection of expenditure zones, and
application of funds affecting the City of Sebastian. TA will meet with appropriate County, as
well as City, Staff. TA will then issue a memorandum to the City regarding the current
arrangements and any suggestions.
Work Product:
Memorandum Regarding Current Traffic Impact Fee Implementation
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Tischler & Associates, Inc.
X. DELIVERABLES
The following is a list of deliverables.
A. Prototype Fiscal Analysis
TASK DELIVERABLE
Task 1: Agree on Prototype Land Uses to be Memorandum Discussing Prototype Land
Considered Uses
Task 2: Onske Interviews See Below
Task 3: Prepare Cost and Revenue Factor Cost and Revenue Factor Assumption
Assumption Document Document
Task 4: Prepare Prototype Land Use Fiscal Prototype Land Use Fiscal Analysis Report
Analysis
Task 5: Presentation Materials and Graphics as Appropriate
B. Impact Fees
TASK DELIVERABLE
Task 1: Ascertain Demand Factors and Level See Below
of Service for Relevant Public Facilities
Task 2: Review Capital Needs and Costs & Capital Improvement Needs Accommodating
Allocate to Growth New Growth
Task 3: Determine Need for and Calculate See Impact Fee Report Below
"Credits" to be Applied Against Capital Costs
Task 4: Conduct Funding Source and Cash Cash Flow Analyses Reflectkng Capital
Flow Analyses Improvement Needs and Applicable Impact
Fees
Task 5: Complete Impact Fee Methodology See Impact Fee Report Below
and Calculation
Task 6: Preparation of Impact Fee Report Impact Fee Report
Task 7: Meetings/Presentations Appropriate Materials and Graphics
Task 8: Prepare Draft Impact Fee Ordinances Draft Impact Fee Ordinance
and Related Procedures (Optional)
Task 9: Liaison Committee (Optional) Appropriate Presentation Material
Task 10: Review of County Road Impact Fee Memorandum Regarding Current Traffic
Program / Implementation (Optional) Impact Fee Implementation
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XI. COST
The costs for this assignment are detailed inddvidually.
A. Prototype Fiscal Analysis
The cost for the prototype fiscal analysis is as £ellows:
TASK COST
Task 1: Agree on Prototype Land Uses to be $1,500
Considered
Task 2: Onsite Interviews $5,200
Task 3: Prepare Cost and Revenue Factor $7,100
Assumption Document
Task 4: Prepare Prototype Land Use Fiscal $8,300
Analysis
Task 5: Presentation ~ $1,800
Subtotal
$23,900
B. Impact ]Fee Report
The cost for the impact fee report, minus the optional tasks, is as follows:
TASK COST
Tasks 1 - 7: $
Pol/oe $8,700
Parks & Recreation . $9,200
Municipal Facihties & Equipment $11,300
Subtotal $29,200
The costs non-optional tasks are $23,900 and $29,200 respectively, totaling $53,100. If both are
conducted at the same time there Mil be a savings of 15% in A and B, resulting in a cost of
$45,135.
C. Optional Tasks Relating to Impact Fee Report
The optional tasks are priced as follows:
Task 8. Prepare Draft Impact Fee Ordinances and Related Procedures (Optional): $5,800.
Task 9. Liaison Committee (Optional): $3,600.
Task 10. Review of County Road Ixmpact Fee Program / Implementation (Optional): $3,300.
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Florida City/County Mana.qement Association
2001 Annual Conference
Terrence Moore
Thursday May 10th- Sunday May 13th
Marriott Harbor Beach Resort
3030 Holiday Drive
Fort Lauderdale, Florida 33316
(954) 525-4000