TC Ord. No. 2008-06 TOA amending Title 3 of the Avon Muni code by adopting fire protection and emergency medical services impact fees for land development activities generating the need for additional fire protection or emergency medical servicesEAGLE COUNTY, CO 299s 16551
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TOWN OF AVON, COLORADO
ORDINANCE NO. 08-06
SERIES OF 2008
AN ORDINANCE OF THE TOWN OF AVON,
COLORADO, AMENDING TITLE 3 OF THE AVON
MUNICIPAL CODE, BY ADOPTING FIRE
PROTECTION AND EMERGENCY MEDICAL
SERVICES IMPACT FEES FOR LAND
DEVELOPMENT ACTIVITIES GENERATING THE
NEED FOR ADDITIONAL FIRE PROTECTION OR
EMERGENCY MEDICAL SERVICES.
WHEREAS, the Town of Avon, Colorado, ("Town") is a home rule municipality
duly organized and existing under Article XX of the Colorado Constitution and the Town
of Avon Home Rule Charter of 1978 ("Charter"); and
WHEREAS, the Town, by virtue of its Home Rule status, may adopt such
ordinances relative to local municipal matters as are necessary to effectuate the purposes
and intent of the powers granted to municipalities; and
WHEREAS, pursuant to C.R.S. § 31-15-601(1)(1), the Town Council has the
power to erect engine houses and provide fire engines and the necessary fire apparatus for
the extinguishing of fires and to provide for the use and management of the same by
volunteer fire companies or otherwise; and
WHEREAS, the Eagle River Fire Protection District ("Eagle River Fire" or
"District") is a Colorado special district existing and operating under Title 32, Article 1,
C.R.S., which includes the Town within its jurisdictional boundaries for the provision of
fire protection and emergency medical services; and
WHEREAS, the Town Council has determined that the District's capital
infrastructure is designed to be mutually reinforcing for safety in that fire stations and
firefighting equipment provide back-up coverage throughout the District's service area
regardless of the physical location of a call for service within that area; and
WHEREAS, the Town is experiencing high rates of population growth, increased
population density and increased demand for fire protection and emergency medical
services as a result of land development within the Town; and
WHEREAS, to the extent that new development places demands upon the capital
facilities and infrastructure for fire protection and emergency medical services, those
100086404.DOC / 2}
Page I of 12
demands should be satisfied by the shifting the responsibility for financing such capital
facilities and infrastructure from the public to the development creating the demands; and
WHEREAS, the demand for fire protection and emergency medical services and
facilities is immediate upon development of residential and commercial units even
though the District's funding from tax revenues often accrues after the demand for such
services exists; and
WHEREAS, the Town Council finds and determines that one of the primary roles
of building, subdivision and development review is to ensure availability of essential fire
protection and emergency medical services and facilities, and that in order to promote
and protect the convenience, order, prosperity and welfare of present and future
inhabitants of the Town, a rational system is necessary to identify growth-related costs
incurred by Eagle River Fire in providing new and expanded fire protection and
emergency medical services made necessary by expanded population and economic
activity levels generated by new development, and a fee structure therefor directly related
to such costs and method for collection of such fees, should be adopted; and
WHEREAS, the Town Council believes that fire protection and emergency
medical services impact fees should reflect actual growth related capital costs; and
WHEREAS, new development should not be charged for upgrading existing fire
protection services and existing emergency medical services to serve primarily existing
development, and funds collected from new development for fire protection services and
emergency medical services should be primarily used to benefit such new development;
and
WHEREAS, the adoption of a requirement that developers of new residential,
commercial and industrial subdivisions as well as new commercial, industrial and multi-
family developments pay fire protection impact fees and emergency medical service
impact fees as established herein will ensure that development bears a roughly
proportional share of the cost of providing new and enhanced fire protection services and
emergency medical services necessary to accommodate such new development; and
WHEREAS, pursuant to Section 31-23-207, C.R.S., the purpose of a master plan,
and any regulations adopted thereunder, is to guide and accomplish a coordinated,
adjusted, and harmonious development of the municipality and its environs which will, in
accordance with present and future needs, promote health, safety, morals, order,
convenience, prosperity and general welfare, as well as efficiency and economy in the
process of development, including among other things the promotion of helpful and
convenient distribution of population, wise and efficient expenditure of public funds, and
the adequate provision of public facilities; and
100086404. DOC / 2)
Page 2 of 12
WHEREAS, pursuant to Section 31-23-303, C.R.S., a municipality may enact
regulations made in accordance with a comprehensive plan designed to promote the
health and general welfare, to avoid undue concentration of population, and facilitate the
adequate provision of transportation, schools, and other public facilities; and
WHEREAS, the Local Government Land Use Control Enabling Act (the "Act"),
Sections 29-20-101, et seq., C.R.S., Article 23 of Title 31, and other applicable law grant
broad authority to the Town to plan for and regulate the development of land on the basis
of the impacts thereof on the community and surrounding areas; and
WHEREAS, Section 29-20-104.5 authorizes counties and municipalities to impose
an impact fee as a condition of issuance of a development permit to offset the costs of
providing any capital facility directly related to any service the county or municipality is
authorized to provide, that has a useful life of at least five years, and is required by
charter or general policy of the county or municipality; and
WHEREAS, Sections 29-1-801, et seq., C.R.S., concerning land development
charges, recognize that local governments may collect charges imposed on land
development as a condition of the approval of development, if such charges relate to an
expenditure for an improvement, facility, or piece of equipment necessitated by land
development that is directly related to a local governmental service; and
WHEREAS, the Local Government Land Use Control Enabling Act of 1974
authorizes and encourages local governments to cooperate or contract with other units of
government for the purpose of regulating the development of land and the impacts
thereof, and
WHEREAS, the Town Council finds and.determines that as part of the process for
preliminary or final approval of an application for rezoning, planned unit development,
conditional or special use permit, subdivision, development or site plan, or similar
application for new construction, it is necessary and proper to examine whether adequate
fire protection facilities and equipment and adequate emergency medical services
facilities and equipment will be available to residents of the Town, if such application is
approved; and
WHEREAS, Eagle River Fire has ordered BBC Research & Consulting and Stan
Bernstein and Associates, Inc. to conduct and BBC has completed a Impact Fee Study
(`BBC/Bernstein Impact Fee Study") analyzing the extent of the impact of development
on fire protection services and emergency medical services throughout the Eagle River
Fire Protection District, including the Town of Avon, and the fees necessary to mitigate
the impact thereof, and
{ 00086404. DOC / 2)
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WHEREAS, prior to final adoption, a public hearing was held before the Town
Council of the Town of Avon to consider the adoption of the provisions set forth herein,
following public notice as required by law; and
WHEREAS, based upon the testimony at the public hearing, in the reasonable
judgment of the Town Council, it finds that (1) new development upon which the impact
fees for fire protection and emergency medical services are imposed creates a need for
the capital facilities being funded by such fees; (2) new development will benefit from
the construction of the facilities and improvements to be funded by these impact fees; and
(3) the costs of the facilities and improvements funded by these impact fees are directly
related to that required by new development; and
WHEREAS, the Town Council has determined that the imposition and application
of an impact fee for fire protection and emergency medical services will not directly or
indirectly have the effect of materially and adversely altering, impairing, preventing or
diminishing, imposing a moratorium on development, or delay or otherwise adversely
affect any of the rights of any property owner within the Town.
WHEREAS, The Town Council finds that taking legislative action regarding fire
protection and emergency medical services impact fees as set forth in this Ordinance is
necessary to protect the health, safety and welfare of the present and future inhabitants of
the Town and is consistent with the Town's goals, policies and plans, including the
Town's Comprehensive Plan.
NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE
TOWN OF AVON, COLORADO, as follows:
Section 1. Adoption and addition of Chapter 3.40 to the Municipal Code of
the Town of Avon, Colorado. Title 3 of the Avon Municipal Code is amended by the
addition thereto of a new Chapter 3.40, which is to read in full as follows:
Chapter 3.40 Impact Fees
3.40.010.
3.40.020.
3.40.030.
3.40.040.
3.40.050.
3.40.060.
3.40.070.
3.40.080.
3.40.090.
3.40.100.
3.40.110.
100086404.DOC / 2)
Purpose
Use of Fees
Payment of Fees
Timing of Payment
Alternative Fee Calculation
Credit for Improvements
Refund of Paid Fees
Lien for Unpaid Fees
Waiver
Impact Fee Schedule
Annual Adjustment
Page 4 of 12
3.40.010. Purpose
A. The Town requires that areas chosen for development or re-development
shall be capable of being provided within a reasonable period of time with an
adequate level of fire protection and emergency medical services, including fire
protection facilities and emergency medical services facilities.
B. This Section is intended to:
(1) Provide a rational system for identifying and mitigating costs
associated with growth and development and the expansion of fire
protection and emergency medical services and facilities made necessary by
land development activities, a growing population and economic activity
levels.
(2) Regulate the use and development of land to ensure that new
development pays no more nor less than its fair share of the cost of capital
expenditures necessary to provide adequate fire protection and emergency
medical services to developments within the Town.
(3) Assure that the system of impact fees implemented in this Chapter is
linked to a capital facilities program designed to provide the facilities and
equipment for which the impact fees are imposed.
(4) Ensure that the impact fees established by this Chapter are not used
to offset existing deficiencies in capital facilities necessary to serve pre-
existing development.
(5) Ensure that new development that adequately mitigates or reduces
the impact it creates on fire protection and emergency medical services
through site-specific dedications or improvements receives offsetting credit
against its impact fee obligation.
(6) Assure that the impact fees established and implemented by this
Chapter are imposed on a uniform and non-discriminatory basis throughout
the Town to any lot, tract or parcel or expansion for which no building
permit has yet been issued.
3.40:020. Use of Fees.
A.. All impact fees collected pursuant to this Chapter shall, after retention of a
reasonable administrative fee not to exceed six percent (6%) by the Town, within
sixty (60) days following payment to the Town, be transferred to the Eagle River
Fire Protection District (the "District").
100086404.DOC / 21
Page 5 of 12
B. After payment to the District, all fees collected pursuant to this Chapter
shall be accounted for in the manner required by 29-1-801, et seq., C.R.S., and
other applicable law. Fees shall be deposited in an interest-bearing account which
clearly identifies the lot, development activity and development approval for
which the impact fee was collected and the associated category, account or fund of
capital facility, by either aggregate or individual land development. Each such
category, account, or fund shall be accounted for separately. Any interest or any
income earned on moneys deposited in said interest-bearing account shall be
credited to the account.
C. Revenues from impact fees shall be used exclusively for capital facilities,
as defined by Section 29-20-104.5, C.R.S., for fire protection and emergency
medical services. The costs of such capital facilities shall include any financing
costs associated with such improvements.
D. No fees shall be used for periodic or routine maintenance, personnel costs
or operational expenses.
E. In the event that bonds or similar financing instruments are used for the
advance provision of any capital facilities for which impact fees are required,
impact fee revenues may be used to pay debt service on such bonds or similar
financing instruments.
F. The Town may enter into an intergovernmental agreement with the District
to jointly fund expenditures and provide capital facilities needed to serve the
development for which the impact fees were imposed. To the extent such
intergovernmental agreement utilizes revenues from the impact fees imposed by
this Chapter, it shall include such terms requiring compliance with this Chapter
and Colorado law regarding impact fees, including Part 8, Article 1, Title 29 and
Sections 29-20-103 and 29-20-104.5, C.R.S., and auditing of accounts and
compliance as deemed appropriate by the Town Council.
G. In the event this Ordinance is repealed or any such intergovernmental
agreement is terminated, such capital facilities during their useful life shall
continue to be utilized to provide services to the development for which the impact
fees were imposed.
3.40.030. Payment of Fees.
A. As used in this Chapter, the term "development approval" shall constitute a
"development permit" as that term is defined and used in Sections 29-20-103 and
29-20-104.5, C.R.S.
100086404.DOC / 2}
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B. A developer requesting a development approval shall be subject to payment
of the impact fees established by this Chapter as a condition of development
approval. The obligation to pay such impact fees shall run with the land. The
impact fee imposed shall be paid at the time of issuance of each Building Permit.
C. Where previous development activity has occurred prior to the imposition
of the impact fees established by this Chapter, or for which impact fees were
previously paid, impact fees for subsequent development activity on the same lot
shall be based on the net increase, if any, in the impact fee based on the demand
for capital facilities for fire protection and emergency medical services created by
the new development activity as compared to the previous development activity.
D. For applications for an amendment or change to a development approval
previously obtained, but for which the development activity was not completed,
the amount of the impact fee for the subsequent development approval shall be
based on the net increase, if any, in the demand for capital facilities for fire
protection and emergency medical services created by the new development
approval as compared to the impact fee paid for the previous development
approval. .
3.40.040. Timing of Payment.
A. Where development activities may result in multiple levels of development
approvals, such as annexation, zoning, subdivision and building permit approval,
impact fees shall be imposed upon the earliest development activity to occur for
which the amount of impact fees can be reasonably calculated. The impact fee
imposed shall be paid at the time of issuance of each Building Permit.
B. If for any reason, the amount of the impact fee cannot be calculated at the
time of the initial level of development approval, the Town may defer computation
and payment of all or a part of the impact fee until a subsequent level of
development approval, or the Town may require that an estimated fee be paid. If
an estimated fee is paid, any underpayment shall be recovered at the time of the
next development approval at which the impact fee can be reasonably calculated.
In the event an over-payment is made, such over-payment shall be refunded,
without interest, within thirty (30) days following the date the impact fee can be
completely computed.
3.40.050. Alternative Fee Calculation.
In lieu of payment of impact fee amounts set forth in this Chapter, the developer
may prepare and submit to the Town Manager a site-specific fiscal impact and fee
calculation study for the development approval that is requested. The site-specific fiscal
impact and fee calculation study shall follow the prescribed methodologies and formats
{ 00086404. DOC / 21
Page 7 of 12
established by the impact fee study submitted by the District. The fiscal impact study
submitted shall show the basis upon which the site-specific fee calculation was made.
The site-specific fiscal impact and fee calculation study shall be prepared and presented
by professionals qualified in their respective fields. The Town Manager shall consider
the documentation submitted by the developer, but is not required to accept such
documentation reasonably deemed to be inaccurate or, not reliable, and may, in the
alternative, require the developer to submit additional or different documentation for
consideration. If an acceptable site-specific fiscal impact and fee calculation study is not
presented, the developer shall pay the impact fee set forth in this Chapter. Determinations
made by the Town Manager pursuant to this paragraph may be appealed to the Town
Council by filing a written request with the Town Manager within ten (10) days of the
Town Manager's determination. Following the submittal of such request, the Town
Council shall hold a public hearing to determine the amount of the impact fee. The
decision of the Town Council shall be a final quasi-judicial decision for purposes of
Rule 106(a)(4) and (b), C.R.C.P.
3.40.060. Impact Fee Credit for Improvements.
Any developer who has previously made a site specific dedication or improvement
to meet the same need for capital facilities for which an impact fee is imposed, may apply
to the Town Council for a partial or total impact fee credit. The developer shall submit
written evidence of the previously made site specific dedication or improvement, the fair
market value of the site specific dedication or improvement at the time the dedication or
improvement was made and that such was made for capital facilities for which an impact
fee is imposed. Upon approval by the Town Council, the developer shall receive a credit
against the amounts due or to become due pursuant to this Chapter. Such credit may also
be made as a refund or refunds to the developer from impact fees imposed and paid to the
Town equal to the fair market value of the site-specific dedication or improvement
provided by the developer.
3.40.070. Refund of Paid Fees.
A. If a Building Permit expires without commencement of construction or
development, the applicant shall be entitled to a refund, without interest, of the
impact fee paid as a condition for issuance, except when the fee has been
expended or encumbered by the District in advance of and in anticipation of
development. The applicant must submit an application for such refund to the
Town Manager within thirty (30) days of the expiration of the Building Permit.
Neither the Town or the District shall have any obligation to refund any fee that
has been expended or encumbered by the District in advance of and in anticipation
of the development.
B. Any impact fee not expended or encumbered .by the District by the end of
the calendar quarter immediately following ten (10) years from the date the fee
100086404.DOC / 2}
Page 8 of 12
was paid shall, upon application of the then current landowner to the Town
Manager, be returned to the landowner with interest earned on the fee, within one
hundred eighty (180) days of the expiration of such ten (10) year period.
Provided, however, that the Town Council, in its discretion, for good cause shown,
may extend such period of time for an additional period as the Town Council
deems reasonable and necessary.
3.40.080. Lien for Unpaid Fees.
All impact fees shall constitute a prior, perpetual lien upon each lot or parcel
subject to the development approval for which impact fees are imposed from the due date
thereof, until paid. If such fee is not paid when due, in addition to any other means
provided by law, the Town Clerk shall certify such delinquent fee to the Treasurer of
Eagle County, and the fee shall be collected in the same manner as though it were part of
the taxes. The Town may withhold or revoke any development approval, including
certificates of occupancy, for which payment of impact fees is delinquent.
3.40.090. Waiver.
The Town Council may, by resolution, grant a waiver of the applicable impact
fees for fire protection and emergency medical services on a development or portion of a
development for the purpose of constructing or providing low or moderately priced
housing units for sale or lease to low or moderate income persons; provided that the
parties to the development shall agree to appropriately restrict the. future use of the
applicable units by recorded agreement, deed restriction, covenants, declarations, or
similar instruments as may be required by the Town Manager.
3.40.100. Impact Fee Schedule.
The following impact fees for fire protection and emergency medical services are
established and imposed. The impact fee amounts and rates are deemed to fairly,
equitably and proportionately mitigate the impacts on capital facilities for fire protection
and emergency medical services created by development within the Town. Any impact
fee for fire protection and emergency medical services hereby imposed shall be imposed
and applied on a uniform and non-discriminatory basis throughout the Town to any lot,
tract or parcel or expansion for which no building permit has yet been issued.
For Residential, Commercial (including lodging) or Industrial Development,
impact fees imposed for fire protection and emergency medical services shall be based on
size of the water meter required for development:
3/4 inch
1 inch
1.5 inch
Impact Fee:
$ 1,671
Impact Fee:
$ 2,841
Impact Fee:
$ 5,515
{ 00086404. DOC / 2)
Page 9 of 12
2 inch
3 inch
4 inch
6 inch
3.40.110. Annual Adjustment.
Impact Fee:
$ 8,857
Impact Fee:
$18,382
Impact Fee:
$28,409
Impact Fee:
$55,147
The impact fees imposed hereby shall be reviewed and may be administratively
adjusted without further Town Council action annually for inflation, beginning January
15, 2009 and annually on each anniversary date thereafter. Any such adjustment shall be
based upon the percentage change in the United States Bureau of Labor Statistics
Consumer Price Index for Denver-Boulder, all items, all urban consumers, or its
successor, index, or an equivalent index applicable to Eagle County.
Section 2. BBC/Bernstein Impact Fee Study Approval. The Town Council
hereby approves and adopts the BBC/Bernstein Impact Fee Study, a copy of which is
attached hereto as Exhibit A, as the basis for the impact fees for fire protection and
emergency medical services established by this Ordinance.
Section 3. Public Inspection. The full text of this Ordinance and the Avon
Municipal Code being amended hereby, are available for public inspection at the office of
the Town Clerk.
Section 4. Severability. If any portion of this Ordinance is found to be void or
ineffective, it shall be deemed severed from this Ordinance and the remaining provisions
shall remain valid and in full force and effect.
Section 5. Effective date. This Ordinance shall become effective and be in
force immediately upon final passage at second reading.
INTRODUCED, READ, AND ORDERED PUBLISHED BY THE TOWN
COUNCIL OF THE TOWN OF AVON, COLORADO, UPON A MOTION DULY
MADE, SECONDED AND PASSED AT ITS REGULAR MEETING HELD AT THE
TOWN OF AVON, ON THE 22ND DAY OF, APRIL, 2008.
~~~1N OFq~, N
Attest:
TO AV N,COLORA O
By: C.
Ronald C. Wolfe, Mayor
By;
a y M Kenny, Clerk
{ 00086404. DOC / 2)
Page 10 of 12
FINALLY ADOPTED, PASSED, APPROVED, AND ORDERED PUBLISHED
BY THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO, UPON A
MOTION DULY MADE, SECONDED AND PASSED AT ITS REGULAR MEETING
HELD AT THE TOWN OF AVON, ON THE -DAY OFJ ut~.. 2008.
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gyp- AVp r
'zt
TOWN O AV N, COLO O
By: CA.
Ronald C. Wolfe, Mayor
Attest:
By
APPROVED AS TO FORM:
JA
John W Dunn, Town Attorney
100086404.DOC / 2)
Page 1 1 of 12
Exhibit A
Eagle River Fire Protection District
Impact Fee Study - Phase II, Final Report
July 24, 2007
BBC Research & Consulting
Stan Bernstein and Associates, Inc.
("BBC/Bernstein Impact Fee Study")
{00086404.DOC / 21
Page 12 of 12
IEARGH &
CONSUL ING
3773 Cherry Creek North Drive
Suite 850
Denver, Colorado 80209-3827
303.321.2547 fax 303.399.0448
www.bbcresearch.com
bbc@bbcresearch.com
July 24, 2007
Mr. Charles Moore
Fire Chief/General Manager
Eagle River Fire Protection District
351 Benchmark Road
Post Office Box 7980
Avon, Colorado 81620-7980
Re: Eagle River Fire Protection District Impact Fee Study - Phase 11, Final Report
Dear Mr. Moore:
The Eagle River Fire Protection District hired BBC Research & Consulting (BBC) and Stan
Bernstein' and Associates, Inc. (SBA) in November, 2006 to calculate impact fees for the Eagle River
Fire Protection District (District). We will do so by answering the following four questions:
What is the current level of service provided by the Eagle River Fire Protection
District? Since the primary purpose of impact fees is to help the Eagle River Fire
Protection District maintain its current level of service in the future, it is necessary to
know the level of service the Eagle River Fire Protection District is currently providing
to the community.
2. What future growth is expected within the District? How many new residential
households and nonresidential buildings will be served by the Eagle River Fire
Protection District over the next ten years?
3. What new infrastructure is required to serve future growth while maintaining the
current level of service? For example, how many new stations and fire. trucks will be
needed over ten years to maintain the current level of service?
Final Report - Page,2
4. What impact fee is required to pay for the new infrastructure? Here we calculate an
apportionment of new infrastructure costs to future residential and nonresidential land-
uses.. Then, using this distribution, the applicable impact fees are determined.
Addressing these four questions, in order, provides the most effective and logical way to
calculate impact fees for the Eagle River Fire Protection. District.
1) What is the current level of service provided by the Eagle River Fire Protection
District?
The District aims to fulfill two goals in regards to the level of service provided to the community:
1. The presence of one fire station within five road miles of any major development within
the District's protection area; and,
2. For most routine requests for emergency assistance, the District will respond with a
single resource with four firefighters as opposed to two resources with 4 firefighters.
These service level goals are designed to promote efficiency, safety and better preparation for
simultaneous calls throughout the District.
However, the District's current infrastructure and equipment are sometimes insufficient to fulfill the
second goal due to recent and anticipated growth. In order to maintain this level of service to both
curient and future residents, additional infrastructure and personnel will be needed by the District.
'Impact fees will help mitigate the financial burden created by these future investments.
2) What future growth is expected in the District?
On March 6, 2007, SBA prepared an analysis of expected residential and non-residential growth that
is likely to occur within the boundaries of the Eagle River Regional Fire Protection District during
the next 20 years. This document is attached as Appendix A. Exhibit 1 summarizes the overall
growth projections of the District from December 31, 2006 to December 31, 2026.
Final Report - Page 3
Exhibit 1.
Future Growth - Eagle River Fire Protection District Service Population
=
SFEs
SFEs.
20-Year
Geographic. Area.
12/31/2006
.12%31/2026
Growth .
Arrowhead
977
1,007
30
Town of Avon
3,189
4,229
1,040
Villages at Avon
268
1,642
1,374
Beaver Creek
2,701
2,754
53
Bachelor Gulch
970
1,042
72
Berry Creek
1,069
1,099
30
Eagle Vail
2,346
2,380
34
Edwards/Cord Val.
2,637
3,072
435
Cordillera/Summit
963
1,204
241
Red Sky Ranch
16
168
152
Wolcott Area
-
1,350
1,350
Ginn Property
-
2,180
2,180
Minturn
703
893
190
Red Cliff
125
139
14
Total
15,964
23,159
7,195
Source: Stan Bernstein and Associates, Inc.
As shown above, the District's service population will experience growth of an estimated 7,195 single
family equivalents (SFEs) in the next twenty years, a 45.4 percent increase. The largest growth will
occur at the proposed Ginn Planned Unit Development, with an increase of 2,180 SFEs. The
proposed Villages at Avon could add 1,374 SFEs; and the Wolcott Area, while difficult to precisely
define at this time, could add up to 1,350 SFEs.
3) What new infrastructure is required to maintain the current level of service for
future growth?
Exhibit 2 below includes all new infrastructure (including purchases, repair and upgrades) as detailed
in the Eagle River Fire Protection District 20-year CIP. This list of capital is consistent with the
recommendations of the independent siting consultant retained by ERFPD provided to us via e-mail
by Charlie Moore on Friday, May 4, 2007.
Final Report • Page 4
Exhibit 2.
Future Infrastructure deeds-2007 to 2026
Pdition
Allocated
Yeai'
Purchase
to Include I
Purchase
Type of Capital litfrastructure.
purchased
Value
Impad;Fees -
Value:
Buildings
Avon Fire Stationltl
2010
$5,500,000
45%
$2,478,859
Minturn Fire Station()
2014
$500,000
10%
$50,000
Wolcott Fire Station
2009
$750,000
100%
$750,000
Gilman Fire Stationf'1
2011
$2,500,000
100%
$2,500,000
Edwards Fire Station
2010
$2,500,000
45%
$1,126,754
Eagle-Vail or TraerCreek Fire Station
2014
$2,500,000
45%
$1,126,754
Red Cliff Fire Station
2009
$950,000
0%
$0
Employee Housing Units
TBD
$1,250,000
4S%
$563,377
Public Safety Training Facility(2)
NA
$7,000,000
4.5%
$315,000
Subtotal Buildings
$23,450,000
38%
$8,910,744
Vehicles and Equpment
Fire Rescue Vehicle for Avon Fire Station())
2010
$400,000
100%
$400,000
Pumper Truck for Eagle-Vail Fire Station
TBD
$450,000
100%
$450,000
Pumper Truck for Gilman Fire Station
2010
$450,000
100%
$450,000
Ladder Truck for Minturn Fire Station
2014
$980,000
100%
$980,000
Brush Truck for Edwards Fire Station
2010
$125,000
100%
$125,000
Brush Truck for Gilman Fire Station
2010
$150,000
100%
$150,000
Water Tanker for Gilman Fire Station
2014
$425,000
100%
$425,000
Incremental Staff Vehicles
Vehicle #1
TBD
$50,000
100%
$50,000
Vehicle #2
TBD
$50,000
100%
$50,000
Video Conferencing Technology
TBD
$60,000
0%
$0
SCBA Recharge Compressor
TBD
$15,000
100%
$15,000
Subtotal Vehicles and Equipment
$ 3,155,000
98%
$3,095,000
Impact Fee Study(4)
$18,000
100%
$18,000
Grand Total:
$12,023,744
Note: These new assets will allow the District to meet the level of service goals.
(1) Includes land, design, building and FFE.
(2) Eagle River Fire is one of ten agencies planned to use this facility, therefore only ten percent of its growth attributable purchase value is included
in our calculations.
(3) Value represents "fully-loaded" price of the vehicle, including tools, communications and other equipment.
(4) Our Impact Fee Study is fully impact-fee eligible.
Source: Eagle River Fire Protection District 20-year CIP.
The District plans on constructing new buildings and purchasing new vehicles and equipment in the
next twenty years. However, not all of these new infrastructure purchases are associated with growth.
Some capital costs are for repair and replacement of facilities e.g., standard periodic investment in
existing facilities such as replacing an older fire engine and re-roofing a fire station. These costs are
not impact fee eligible. Some capital costs are for betterment of facilities, or implementation of new
services (e.g., development of a fire training facility for the first time). These costs are generally not
entirely impact fee eligible. Some costs are for expansion of facilities to accommodate new
development at the current level of service (e.g., purchase of new fire truck to accommodate
expanding population). These costs are impact fee eligible.
Final Report - Page 5
Because there are different reasons why the District invests in capital projects, BBC conducted a
"GRUM" Analysis on all projects listed in the CIP:
Growth. The "G" in GRUM stands for growth. To determine if a project is solely
related to growth, we ask "Is this project designed to maintain the current level of service
as growth occurs? " and "Would the Fire Department still need this capital project if it
weren't growing at all?" "G" projects are only necessary to maintain the Department's
current level of service as growth occurs. It is thus appropriate to include 100 percent of
their cost in the impact fee calculations.
Repair & Replacement. The "R" in GRUM stands for repair. & replacement. We ask,
"Is this project related only to fixing existing infrastructure?" and "Would the Fire
Department still need it if it weren't growing at all?" "R" projects have nothing to do
with growth. It is thus not appropriate to include any of their cost in the impact fee
calculations.
■ Upgrade. The "U" in GRUM stands for upgrade. We ask, "Would this project
improve the Fire Department's current level of service?" and "Would the Department
still do it even if it weren't growing at all?" "U" projects have nothing to do with growth.
It is thus not appropriate to include any of their cost in the impact fee calculations.
■ Mixed. The "M" in GRUM stands for mixed. It is reserved for capital projects that
have some combination of G, R and U. "M" projects by their very definition are
partially necessitated by growth, but also include an element of repair, replacement
and/or upgrade. In this instance, a cost amount between 0 and 100 percent should be
included in the fee calculations. Although the need for these projects is triggered by new
development, they will also benefit existing residents.
Projects that are 100 percent growth-related were determined by our study to be necessitated solely
by growth. Alternatively, some projects were determined to be "mixed" in that they had elements of
growth, repair and replacement and/or upgrade. The Edwards Fire Station and Employee Housing
Units (found in Exhibit 2) are examples.of such projects. In these situations, only a portion of the
total cost of each project was included in the final impact fee calculation.' The remainder of the cost
of each "mixed" project should be paid by the District.
After accounting for "mixed-use" purchases, the approximate total value of fee-eligible capital
construction and purchases is $12.0 million.
4) What impact fee is required to pay for future infrastructure?
Here we calculate how much of the new fee-eligible infrastructure will be paid by developers. Using
the distribution of future land-use from Exhibit 1, we can assign future infrastructure costs from
As a proxy for the "M" percent, we used a ratio of total incremental square footage from 2007-2026 to total current square
footage. This ratio equaled about 45 percent.
Final Report - Page 6
Exhibit 2 to the appropriate development category and calculate the applicable fees. Our results are
shown in Exhibit 3.
Exhibit 3.
Calculation of Impact
Fees
Impact* Fee Calculation'
Allocated Value for Future Fire Infrastructure
$12,023,744
Note:
(1) See Exhibit 2.
(2) See Exhibit 1.
Source:
Eagle River Fire Protection District 20-year
CIP, Stan Bernstein and Associates, Inc. and
BBC Research & Consulting.
Net Growth in SFEs 2007-2026(2)
Impact Fee per New SFE
7,195
$1,671
As indicated above, we have calculated an impact fee of $1,671 per new SFE. A fee not to exceed this
amount is recommended for the District. Single family homes would be charged this fee unless they
were large enough to count as more than one SFE, as determined from the utility meter portion of
each unit's building permit. Similarly, multifamily and non-residential development projects would
be assessed impact fees according to the number of SFEs they represent.
A residential meter (3/4 inch) is considered the standard meter and has a capacity ratio of 1. All larger
meters serve commercial purposes and have capacity ratios greater than 1. Exhibit 4 lists the capacity
ratios and meter size and type, according to the American Water Works Association.
Exhibit 4.
Capacity Ratios
Source:
American Water Works Association.
Meter Size
Type.
Capacity Ratio
I- plaafee
3/4 Inch
Displacement
1.0
$ 1,671
1 Inch
Displacement
1.7
$ 2,841
1-112 Inch
Displacement
3.3
$ 5,515
2Inch
Displacement/Compound
5.3
$ 8,857
3Inch
Compound
11.0
$ 18,382
4Inch
Compound
17.0
$ 28,409
6Inch
Compound
33.0
$ 55,147
8Inch
Compound
53.3
$ 89,071
8Inch
Displacement
60.2
$100,602
10 Inch
Compound
77.1
$128,900
12 Inch
Compound
144.2
$240,988
Using the ratios from Exhibit 4 and the utility meter portion of each new building permit, the
District can determine how many SFEs each new building represents and assess the appropriate fee.
For example, a new commercial building with a 3 inch meter warrants an impact fee of $18,382.
Implementation Recommendations
We offer the following recommendations for your consideration:
Final Report - Page 7
The fees calculated in Exhibit 4 should be considered as the maximum defensible
amount, and can be lowered by the District's board if there are economic development
concerns.
■ In order for the District to collect those fees, it will need to pursue intergovernmental
agreements (IGAs) with local governments that have building permit authority such as
Eagle County and the Towns of Avon, Minturn and Redcliff.
■ The District should promptly create and maintain an "Impact Fee Fund" separate and
apart from the General Fund. All current and future impact fee revenue should be
immediately deposited into this account, and withdrawn only to pay for growth-related
infrastructure. The Department's General Fund should be reserved solely for the receipt
of tax revenues and associated interest earnings, and ongoing operational expenses
including the repair and replacement of existing infrastructure not related to growth.
■ The fees calculated in this study should be updated periodically as the District invests in
additional fire protection infrastructure beyond what is listed in Exhibit 2, and/or the
District's population or inventory of commercial square footage change significantly.
■ The fees should be updated annually based on the Engineering News Record index or
other infrastructure inflation indices.
■ For projects listed in the Capital Improvements Plan that are not 100 percent growth-
related ("mixed" projects), the District should assume the responsibility of paying their
share from existing fund balances and/or ongoing revenue sources not tied directly to
growth.
■ The timing of the initial implementation of the fees is important. For example, an
estimated 218 SFEs are conservatively estimated to be constructed within the District's
boundaries during 2007 - at an assumed fee rate of $1,671 per SFE, approximately
$364,278 of fee revenue would be lost if the fees were not implemented during 2007.
■ It is important for the District to understand that approximately $12.0 million of fees
are estimated to be collected from during years 2007 through 2026. nowever, the
District's CIP (as set forth on Exhibit 2) indicates that growth related capital
improvements will be required to be constructed or purchased during years 2009
through 2014.
Consequently, these fee revenues will likely lag the need for growth related CIP projects.
The District should plan for this net fee revenue shortage, and may have to advance
General Fund or Bond Fund revenues to the Impact Fee Fund and seek reimbursement
in future years from fee revenues generated. It will be difficult for the District to market
revenue bonds which are supported by estimated fee revenue generated in future years.
Final Report - Page 8
i
I
In the event that Developers pay for CIP related improvements, the District could
consider implementing a type of "Cost Recovery Policy" so that Developers are
reimbursed all, or a portion, of the fees generated by their respective real estate
developments.
The District has hired a planning consultant to refine the District's CIP. While we feel
the current CIP accurately reflects future purchases for the District, any changes made
by the consultant can be easily applied to the impact fees through amendment.
Please feel free to contact us with any questions or concerns you might have about our conclusions.
Our toll-free telephone number is 800-748-3222, x236 for Tom Pippin and x252 for Scott Kitchens.
Sincerely,
Thomas A. Pippin
Managing Director
Stan Bernstein
Stan Bernstein
Bernstein and Associates, Inc.
~1140,- ,
Scott Kitchens
Research Associate
Stan Bernstein and Associates, Inc.
Financial Planners and Consultants
For Local Governments, Municipal Bond Underwriters, and Real Estate Developers
8400 East Prentice Ave., Penthouse
Greenwood Village, Colorado 80111
Phone: 303-409-7611 Fax: 303-409-7612 Email: Stanplan @ Earthlink.net
September 10, 2007
Mr. Charlie Moore
Board of Directors
Eagle River Fire Protection District
RE: DRAFT 46 ERFPD - FUTURE SINGLE FAMILY EQUIVALENT UNIT
AND IMPACT FEE REVENUE FORECAST
Dear Charlie and Board of Directors:
Enclosed for your review is the most current draft of the results of our 2007 forecast of
future Single Family Equivalent Units (SFE's) within the boundaries of Eagle River Fire
Protection District ("ERFPD"). For the purposes of this forecast, one SFE contains 3,000
square feet, with the exception of hotel rooms which are assumed to be 0.35 SFE's or
0.50 SFE's depending upon kitchen facilities. The attached Schedule 1 summarizes the
future SFE'S for ERFPD for the years ending December 31, 2007 through 2025.
The last two rows on page 2 summarize the Impact Fee Revenues that could be generated
from the proposed impact fee rate of $1,671 per SFE. These Impact Fee Revenues total
Approximately $14.6 million from 2007 through 2025 (approximately $480,000 for
2007).
As of December 31, 2006 there were approximately 15,990 SFE's being served by
ERFPD. Schedule 1 indicates an additional 8,714 SFE's could be added during the next
19-years which represents an increase of approximately 54.5% over the SFE base as of
December 31, 2006. The total estimated increase in SFE'S during the next 19-years by
geographical area is summarized on the following page:
Mr. Charlie Moore
ERFD Board of Directors
September 10, 2007
Page 2 of 6
INCREASE 2007 -
ADDED
2025
GEOGRAPHICAL
SFE'S
SFE'S
DURING
AREA
(a, 12/31/06
12/31/25
2007
SFE'S
PERCENT
ARROWHEAD
977
1,007
10
30
3.07%
TOWN OF AVON
3,194
4,251
64
1,057
33.096/.
VILLAGES @ AVON(*)
268
2,428
0
2,160
805.97%
BEAVER CREEK
2,706
2,757
30
51
1.88%
BACHELOR GULCH
979
1,051
31
72
7.35%
BERRY CREEK
1,080
1,113
13
33
3.06%
EAGLE VAIL
2,352
2,388
5
36,
1.53%
EDWARDS/CORD VAL.
2,622
3,453
81
831
31.69%
CORDILLERA/SUMMIT
968
1,406
33
438
45.25%
RED SKY RANCH
16
168
8
152
950.00%
WOLCOTT
0
1,350
0
1,350
N/A
GINN PROPERTY
0
2,300
0
2,300
N/A
MINTURN
703
893
10
190
27.03%
RED CLIFF
125
139
2
14
1120%
TOTALS
15,990
24,704
287
8,714
54.50%
Approximately 514 additional SFE' S could be constructed at the Villages @ Avon
Schedule 1 indicates that an additional 287 SFE' S could be added during 2007; 401
SFE'S units could be added during 2008 (approximately 55% of those living units
assumed be generated from The Confluence Riverfront related development); and an
average of 466 SFE' S are assumed to be added annually during 2009 - 2025. It is
important that these SFE estimates are carefully monitored so that adjustments can be
made as future events regarding construction activity becomes clearer.
A brief summary of the various projects expected to be constructed during the next 20-
years within the boundaries of ERFPD is described in the following paragraphs.
ARROWHEAD
Arrowhead is approaching full-buildout. We have assumed an average of 10.0 SFE's
added during the next two years (2008 - 2009). This assumes that 5 - 6 large homes per
year for the next two years will be constructed at various subdivisions at Arrowhead.
TOWN OF AVON (EXCLUDING VILLAGES Q) AVON)
The Town of Avon (excluding the Villages of Avon) is expected to add approximately
1,057 additional SFE's during the next nineteen years as described in the following
paragraph.
1
Mr. Charlie Moore
ERFD Board of Directors
September 10, 2007
Page 3 of 6
Approximately 10 SFE's per year during 2008 are expected to be generated from the
Wildridge subdivision with an additional 5 SFE's per year from 2009 - 2013 and 2 SFE's
per year beginning in 2014. Approximately 4 SFE's per year are expected to be
generated from the Mountain Star subdivision., The West Avon Mall area (including only
Avon Center and Lot 61 projects) is expected to generate 176 SFE's in years 2010 -
2013. The Gates at Beaver Creek development is expected to generate 50 SFE's in 2007.
The Madison Partner's PUD is located east of The Gates development and is estimated at
112 SFE's during 2010. The Sheraton Mountain Vista expansion is expected to generate
61 SFE's during 2010 and 46 SFE's in 2012. The Westin Riverfront development
(Confluence) is expected to generate approximately 373 SFE's in years 2008 - 2010. The
Pizza Hut area (including the Buck Creek PUD) is expected to generate approximately 84
SFE's by the end of 2012. There is also a possibility that the entire East Avon
Commercial Area (City Market Area) could generate significant additional SFE's as a
result of potential urban renewal activity which is currently being studied by the Town of
Avon and its consultants - we are assuming no SFE's from this development at this time.
THE VILLAGES AT AVON
The Town of Avon has provided the following information reflecting the Town's most
current thinking regarding the scope and timing of real estate development at the Villages
at Avon. However, this information is obviously subject to a high degree of speculation
and uncertainty and modification and change as of this date and should be viewed in that
context. Based upon current zoning, approximately 2,160 additional SFE' S could be
added during the next 20-25 years. It is important to understand that we are not projecting
any additional SFE's generated from this area until 2010 when we estimate an additional
70 SFE's generated from residential and commercial construction activity.
Following is a discussion of the information that the Town of Avon has provided
regarding the future development plans at the Villages at Avon.
Single Family Homes
A total of 54 moderate-sized homes are expected to be constructed south of I-70 from
2011 through 2022. A total of 37 estate-sized homes (containing approximately 1.75
SFE's each) are expected to be constructed north of I-70 from 2013 through 2022.
Condominiums, Multi-Family Proiects
Approximately 144 RMF -1 condominiums are expected to be constructed during 2010
through 2013. Approximately 96 RMF - 3 condominiums are expected to be constructed
during 2010 through 2013. Approximately 33 condominiums per year beginning in 2012
are expected to be constructed Area A, D, E, and F combined. An additional 650,000
square feet of retail space is expected to be completed by the end. of 2015, which is would
add a total of approximately 55.0 SFE's on a conservative basis.
Mr. Charlie Moore
ERFD Board of Directors
September 10, 2007
Page 4 of 6
Affordable Housing Proiects
A total of 500 affordable housing units are expected to be constructed in three phases.
The first phase is complete. The second phase will consist of 155 units expected to be
completed during 2012, and the final phase will consist of 113 units expected to be
completed during 2013.
Hotel Proiects
A total of 560 hotel rooms (i.e., approximately 197 SFE's assuming each hotel room is
assessed 0.35 SFE's) are expected to be constructed in three phases. The first phase is
expected to be completed by the end of 2012 and consist of 150 hotel rooms generating
53 SFE's. The second phase is expected to be completed by the end of 2014 and consist
of a 245 room hotel containing approximately 86 SFE's. The final phase is expected to
be completed during 2017 and consist of a 165 room hotel containing approximately 58
SFE's.
BEAVER CREEK
Beaver Creek is approaching full-buildout. We are assuming an additional 7.0 SFE's per
year during 2008 - 2010.
BACHELOR GULCH
Bachelor Gulch is also approaching full-buildout. A total of approximately 31 SFE's
will be added during 2008 from the Beaver Creek Landing project. 5 SFE's are
estimated during 2009 and 2010. Additional SFE's could also be generated from the
potential conversion of a portion of the Ritz-Carlton Hotel rooms to large fractional, or
whole ownership units.
BERRY CREEK (SINGLE TREE)
Single Tree is approaching full-buildout with an additional 20 SFE's expected to be
added during the next two years as a result of new construction and remodeling projects.
EAGLE VAIL
Eagle Vail is 100% completed and built-out, although various renovation projects appear
to be resulting in additional SFE's.
EDWARDS (INCLUDING CORDILLERA VALLEY CLUB)
Following is a summary of likely development in Edwards.
Homestead, Heritage Park, South Forty, Fred Green, Riverwalk - Riverwalk and
Heritage Park are assumed to be complete in 2007. We estimate an additional 96 SFE's
during 2008 - 2010 to be generated from various vacant lots in Homestead, South Forty,
and the proposed Fred Green site. We estimate an additional 20 SFE's per year from
these areas during 2010 - 2014, and 10 SFE's per year beginning in 2015.
Mr. Charlie Moore
ERFD Board of Directors
September 10, 2007
C Page 5 of 6
West End (Gashouse Corner)
The West End development is expected to include 185 multi family and affordable
housing units plus commercial space. We estimate 200 SFE's from this development
during 2009 - 2014.
Rick Mueller Development
There is currently a PUD submittal for a 40 - 60 multi- family development residential
project south of Edwards Corner (north of the church). We have assumed 50 SFE's
during 2008 - 2009.
Fox Hollow (West of Mobile Home Parr, South Side of Highway 6)
The Fox Hollow PUD includes 21,000 square feet of light industrial/commercial space
and 26 residential units (duplex and condominium). A portion of the commercial space is
under construction (veterinary space). We estimate a total of 10 SFEs from the
commercial development and 26 SFES from the residential development (total of 36
SFE's during 2007 -2010). This site also includes the Edwards Design and Craft Center
PUD which includes 49,700 square feet of light industrial/commercial space and 5
employee housing units. We estimate 25 SFE's from this site during 2010 - 2015.
Equestrian Center Site
C 2 schools (1 high school and 1 elementary school) are planned for this site. The schools
are expected to be complete by 2010. Based on current SFE's for Battle Mountain High
School (40.9 plus 10.3 for the addition) and Edwards Elementary School (10.3) we
estimate 40 SFE's for the high school and 10 SFE's for the elementary school in 2010.
Cordillera Valley Club is assumed to add an average of approximately 6 SFE's (3-4
homes)..
CORDILLERA AND THE SUMMIT
The Summit area of Cordillera is assumed to add approximately 8 - 9 SFE's annually
beginning in 2007 (although the number of new SFE's may decline to 4 -5 after the next
5 years - we will continue to monitor this). The Divide and Ranch subdivisions,of
Cordillera are assumed to add approximately 8 - 9 SFE's annually beginning in 2007.
RED SKI' RANCH - At full buildout Red Sky Ranch will contain 117 single family
residences. As of December, 2006 there are approximately 16 completed homes in Red
Sky Ranch. We estimate 5 additional homes per year beginning in 2007.
WOLCOTT - Future development in the Wolcott area is projected to begin within the
next ten years. At full buildout, we estimate a total of residential living units in the
Wolcottarea. We assume 39 living units in 2010 with full-buildout occurring by 2025.
Mr. Charlie Moore
ERFD Board of Directors
September 10, 2007
Page 6 of 6
GINN DEVELOPMENT - For purposes of this report, we are assuming the Ginn
Development outside of Minturn will contain 600 single family homes and 1,100
townhome/condominium units. It is assumed that residential units will begin
construction during 2011 and approach full-buildout by 2025.
MINTURN - On a conservative basis, it is expected that unidentified real estate
development within the Town of Minturn will add an average. of 10 residential units
annually after 2006.
RED CLIFF - According to official from the Town of Red Cliff, the town currently
serves 125 SFE's for water and sewer. The Town is largely built out with only a few
vacant lots remaining. The area is seeing a trend of scraping older homes to rebuild
larger, newer homes. This trend may result in a couple new SFE's annually.
LIMITATIONS
Stan Bernstein and Associates, Inc. has assembled the above information, and the
information presented on Schedule 1, based on information provided by others. Stan
Bernstein and Associates, Inc. has not independently evaluated or tested this information.
Consequently, Stan Bernstein and Associates, Inc. does not vouch for the achievability or
accuracy of this information, and disclaims any opinion with respect to this information.
Very truly yours,
Stan Bernstein
Stan Bernstein and Associates, Inc.