TC Res. No. 2008-20 Approving an IGA between the TOA and the eagle river fire protection district concerning the collection payment and use of emergency service impact feesTOWN OF AVON, COLORADO
RESOLUTION NO. 08-20
SERIES OF 2008
A RESOLUTION OF THE TOWN OF AVON, COLORADO, APPROVING AN
INTERGOVERNMENTAL AGREEMENT BETWEEN THE TOWN OF AVON,
COLORADO. AND THE' EAGLE RIVER FIRE PROTECTION DISTRICT,
CONCERNING THE COLLECTION, PAYMENT AND USE OF EMERGENCY
SERVICE IMPACT FEES
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, 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 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, Article XI, Section 7, of the Colorado Constitution allows the State and its
political subdivisions to give direct or indirect financial support and assistance to any other
political subdivision as may be authorized by general statutes; and
WHEREAS, Article XIV, Section 18(2)(a) of the Colorado Constitution supports the
cooperation or contracting by or among any of its political subdivisions to provide any function
or facility lawfully authorized to each of the cooperating units, including, without limitation, the
sharing of costs, the imposition of.taxes, or the incurring of debts; and
WHEREAS, Sections 29-1-201 and 203,' C.R.S., permit and encourage governmental
entities to make the most efficient and effective use of their powers, and responsibilities by
cooperating and contracting with other governmental entities to provide any function, service or
facility lawfully authorized to each, including the sharing of costs; 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
{ 00086404.DOC / 2)
WHEREAS, the Town-Council has adopted Ordinance No. 08-06 which amends Title 3
of the Municipal Code to add a new Chapter 3.40 which imposes. a fire protection and emergency
medical services impact fee on behalf of the Eagle River Fire Protection District;
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN
OF AVON, COLORADO, as follows:
Section 1. The Intergovernmental Agreement between the Town and the Eagle River
Fire Protection District, attached as Exhibit A hereto, is approved.
Section 2. The Town staff is authorized and directed to take all action necessary and
appropriate with respect to the implementation of the agreement.
ADOPTED 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 10TH DAY OF JUNE, 2008.
~N or Ago
:SEAL:
Attest.
TO=Ronald . COLO O
By:
C. Wolfe; Mayor
By:
{00086404.DOC / 2}
INTERGOVERNMENTAL AGREEMENT BETWEEN THE TOWN OF AVON,
COLORADO AND THE EAGLE RIVER FIRE PROTECTION DISTRICT,
CONCERNING THE COLLECTION, PAYMENT AND USE OF EMERGENCY
SERVICE IMPACT FEES
THIS INTERGOVERNMENTAL AGREEMENT is made and entered into this
day of % ;:2008, by and between the Town of Avon, Colorado
("Town") and Ea a 'ver Fire Protection District ("District"), a special district of the
State of Colorado.
RECITALS
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, 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, pursuant to Section 16.2 of the Charter, the Town may enter into
contracts or agreements with other governmental units of every kind and character for the
joint use of buildings, equipment, or facilities, or for furnishing or receiving commodities
or services of public benefit under such terms and conditions as shall be approved by
Council; and
WHEREAS, the District is a quasi-municipal government and political
subdivision of the State of Colorado operating pursuant to Article 1, Title 32; C.R.S., to .
provide prevention and extinguishment of fire, protection of life and property from fire,
enforcement of fire prevention codes, hazardous materials response, and-other emergency
services authorized by statute or -typically provided by a public fire department.
(collectively, "Emergency Services") within the Town; and
WHEREAS, Article XI, Section 7, of the Colorado Constitution allows the State
and its political subdivisions to give direct or indirect financial support and assistance to
any other political subdivision as may be authorized by general statutes; and
WHEREAS, Article XIV, Section 18(2)(a) of the Colorado Constitution supports
the cooperation or contracting by or among any of its political subdivisions to provide
any function or facility lawfully authorized to each of the cooperating units, including,
without limitation, the sharing of costs, the imposition of taxes, or the incurring of debts;
and
{00086425.DOC
WHEREAS, Sections 29-1-201 and 203, C.R.S., permit and encourage
governmental entities to make the most efficient and effective use of their powers and
responsibilities by cooperating and contracting with other governmental entities to
provide any function, service or facility lawfully authorized to each, including the sharing
of costs; 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, including the impacts
resulting therefrom; and
WHEREAS, Section 29-20-104.5, C.R.S., 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, new development within the Town is placing significant additional
demands on the provision of Emergency Services and the capital facilities necessary to
provide them; and
WHEREAS, the,Town acknowledges that without the assistance of the Town in
imposing and collecting impact fees for Emergency Services and their expenditure on
necessary -public facilities to provide the Emergency Services, citizens of the. Town may
suffer the result of decreased levels of Emergency Services; and
WHEREAS, pursuant to Ordinance No. 08-06 the Town Council has adopted
amendments to the Avon Municipal Code which provide for fire protection and
emergency medical services impact fees to be imposed on-development which generates
a need for additional fire protection and emergency medical services capital facilities; and
WHEREAS, by Ordinance No. 08-06 the Town Council has adopted an Impact
Fee Schedule, Section 3.40.100, for the capital facilities of the District; and
WHEREAS, the Town Council, upon consideration of the impacts of land
developments within the-row non the ability of the District to provide adequate
Emergency Services and related capital facilities within the District, has determined that
it is in the best interests of the citizens of the Town and the District to cooperatively and
in a coordinated fashion utilize :the revenues from the Town's impact fees for Emergency
Services to fund expenditures by the Town on capital facilities needed to provide
Emergency Services to new development;
t00086425.DOC. 2
NOW, THEREFORE, in consideration of the Recitals stated above, and the
mutual covenants and promises of the parties hereto, the receipt and sufficiency of which
is acknowledged, the Town and the District agree as follows:
SECTION 1.
PURPOSE
The purpose of this Agreement is to provide for the joint and cooperative funding
of expenditures by the parties on capital facilities needed to provide fire protection and
emergency medical services to new development occurring within the Town, and thereby
carry out the purposes and intent of Ordinance No. 08-06 ("the Impact Fee Ordinance").
Terms used in this Agreement and not defined herein shall have the meanings given to
them in the Impact Fee Ordinance.
SECTION 2.
IMPOSITION AND COLLECTION OF AN
IMPACT FEE FOR EMERGENCY SERVICES
2.1 During the term of this Agreement, the Town shall impose an impact fee
for Emergency Services on each Lot (or other portion) of a Development upon the
commencement of the Emergency Service-Generating Development. Such impact fee
shall be paid to the Town at the time of issuance of a Building Permit.
2.2 For requests for Development approvals that are, processed by the Town's
Community Development Department, the obligation to pay the required impact fees
shall be fully disclosed to. the applicant by the Community Development Department
prior,-6 such approval. Any developer requesting a development approval shall be
subject to payment of the impact fees established by this Article 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.
2.3 Town shall not issue a Building Permit for 'a property within a development
subject to the Town's impact fees for Emergency Services unless the applicant provides
proof of the applicant's payment of the impact fee.
2.4 The Town Council may, by resolution, grant a waiver of the applicable
impact fees for fire 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.
{00086425, DOC 3
SECTION 3.
EXPENDITURE
3.1 When an impact fee for Emergency Services is paid to the Town, such
funds shall be transferred by the Town to the District within sixty (60) days following
receipt of such funds, less six percent (6%) of the fee as an administrative fee to offset the
Town's costs of collecting and administering the impact fee. In addition, in the event the
Town incurs. costs and expenses with respect to credits, refunds; liens, legal or equitable
process or other matters specifically contemplated under Chapter 3.40, Avon Municipal
Code, the District will promptly reimburse the Town for such costs and expenses
provided the same are reasonable in amount. The Town hereby appoints and designates
the District as the Town's designee and agent for purposes of administering and
expending the impact fees for Emergency Services as provided herein.
3.2 Upon receipt, the District shall deposit the Town's impact fees for
Emergency Services in an interest-bearing account identifying the lot, development
activity and development approval for which the impact fee was collected and the
associated category, account, or fund of capital expend. iture for which such impact fee
was imposed. Any interest or other income earned on moneys deposited in the interest-
bearing account shall be credited to the account.
3.3 The District shall use the Town's impact fees for Emergency Services to
jointly fund, in combination with District funds, the capital facilities necessary to provide.
the Emergency Services needed to serve future development, as contemplated by the
Eagle River Fire Protection District Impact Fee Study, dated July 24, 2007, prepared by
BBC Research & Consulting and Stan Bernstein and Associates, Inc., or an y updated,
amended.or replacement analysis adopted by the Town (`BBC/Bernstein Impact Fee
Study') attached hereto as Exhibit `A'.
3.4 The District may only utilize the Town's impact fee revenues for planning,
preliminary architectural and engineering services, architectural and engineering design
studies, land surveys, land acquisition, site improvements and off-site improvements
associated with new or expanded facilities; the construction of buildings and other
facilities; and the purchase of apparatus and equipment, including communications
equipment, with an average useable life of at least five (5) years. No impact fees shall be
used for periodic or routine maintenance of facilities and equipment, personnel costs, or
operational expenses, or any purpose not otherwise authorized by Section 29-20-104.5,
C.R.S.
3.5 In the event bonds or similar debt instruments are used to fund Emergency
Service Capital Improvements necessary to provide Emergency Services to a
development within the Town prior to collecting the impact fees associated with the
{00086425.DOC 4
development as herein provided, once collected, the Town impact fees may be used to
pay debt service on such bonds or similar debt instruments, or to reimburse the District
for capital expenditures which have been made for Eligible Capital Facilities and
Expenditures at any time after the date of this Agreement.
3.6 The District shall account for all impact fees for Emergency Services
collected. pursuant to this Agreement in the manner required by Sections 29-1-801, et
seq., C.R.S., and other applicable law.
3.7 No less than annually, the District shall provide to the Town a copy of its
annual audit" report of its collection, administration and expenditure of all impact fees
within the Town and not later than December 1, of each year, a copy of its annual budget
detailing revenues and expenditures of impact fees, in the next calendar year.
3.8 The expenditure of revenues from the Town impact fees for Emergency
Services so collected shall constitute expenditure by the Town for assisting in the
provision of Emergency Services to new development within the Town. In exchange for
the Town'i expenditure of the impact fees to jointly fund capital facilities in cooperation
with the District, the Town shall obtain an ownership interest in the capital facilities
funded by such impact fees, proportional to the amount of Town impact fees utilized to
fund the capital facility.
3.9 In exchange for the continued provision of Emergency. Services within the
Town by the District, the Town hereby assigns to the District the Town's interest in any
and all capital facilities funded in whole or part by the Town's impact fees, for the life of
the capital facility. The District shall operate and maintain the capital facilities in. good
condition, subject to reasonable wear and tear. This section shall survive and remain in
effect notwithstanding the termination of this Agreement or repeal or amendment of the
Impact Fee Ordinance for so long as the District continues to use the capital facilities to
provide Emergency Services to the development which paid the Town's impact fees.
Upon the expiration of the useful life of the capital facilities, any remaining Town
interest shall automatically transfer to the District.
SECTION 4.
LIABILITY AND INDEMNIFICATION
Any other provisions of this-Agreement notwithstanding,, if the Town is required
to make any. refund of any impact fee for Emergency Services, the District shall
reimburse the Town for the required refund. The District shall indemnify; defend and
hold the Town and its officers, agents and employees harmless from and against any and
all claims or liability arising from the Town's adoption or.implementation of the Impact
Fee Ordinance and the adoption or implementation of this Agreement; or the
administration and expenditure by the District of any of the Town's impact fees.
t00086425.DOC 5
Specifically, this indemnification shall include, but not be limited to, any legal action by
any party contesting the adoption or implementation of this Agreement or the Impact Fee
Ordinance on the grounds of procedural irregularity, unconstitutionality, lack of
authority, breach of contract, preemption by State law or any other grounds. The District
shall also indemnify, defend and hold the Town, and its officers, agents and employees,
harmless from and against any and all claims arising from any breach or default in the
performance of the obligations on the District's part to be performed under the Impact
Fee Ordinance, the provisions of this Agreement, or arising from any intentional acts,
negligence or omissions of the District or any of its officers, agents, and employees.
Such indemnification by the District as provided in this Section shall include all costs,
attorneys' fees, expenses and liabilities incurred in the defense of any claim or any action
or proceeding brought on any such claim; provided, however, nothing contained herein
waives or is intended to waive any protections that may be applicable to the District
under the Governmental, Immunity Act, Section 24-10-101, et seq., C.R.S., or any other
rights, protections, immunities, defenses or limitations on liability provided by law, and
subject to any applicable provisions of the Colorado Constitution and applicable laws. In
the event the Town is named as a party in any legal action, in consultation with the Town
and subject to the Town's approval, the District shall select legal counsel to represent the
Town in such action. Such action shall be vigorously defended against, the Town shall
be consulted as to all significant decisions involved in the action, and the action shall not
be compromised or settled without the consent of the Town, which consent shall not be
unreasonably withheld. Payment of any amount owing pursuant hereto shall be paid by
the District within thirty days of submission of an invoice by the Town or other
appropriate billing entity.. In the event any amount owing to the Town is not paid when
due, the amount owing shall bear interest pursuant to Section 3.31010, Avon Municipal
Code, and the aggregate amount thereof may be offset by the Town against any amounts
'otherwise payable to the District hereunder.
SECTION 5.
TERM OF AGREEMENT
The term of this Agreement shall commence upon execution of this Agreement
and shall continue until the Impact Fee Ordinance is repealed; provided, however, either
parry may terminate this Agreement upon giving at least ninety (90) days written notice
of such intent to terminate to the other party. This Agreement is also subject to annual
appropriation by either party of sufficient funds necessary to, carry out the obligations of
the party. Upon termination, the District shall promptly return to the Town all Town
impact fees for Emergency Services and interest accrued thereon that have not been
expended on capital facilities under this Agreement; and each party shall have no further
obligations under this Agreement, subject to the continued validity of Sections 3.8 and
3.9 as to capital facilities funded prior to such termination in whole or in part by the
{00086425.DOC 6
expenditure of Town impact fees for Emergency Services and subject further to the
continued validity of Section 4 as to liability and indemnification.
SECTION 6.
REMEDIES
6.1 Time is of the essence in this Agreement.
6.2 If a party violates or breaches or fails to keep or perform any covenant,
agreement, term or condition of this Agreement'at the time designated; or in the event a
party is in default or in violation of a term of this Agreement for which no specific time is
designated, and the default or violation continues or is not remedied within thirty (30)
days after notice in writing is given by the non-breaching party to the other party
specifying the matter, claimed to be in default, the non-breaching party. shall be entitled to
pursue all remedies available at law or in equity to enforce the terms of this.,Agreement,
including the right of specific performance; provided, however, with', respect to any
default that cannot be cured within thirty (30) days; such legal remedies shall not be
pursued if the breaching party takes all steps necessary to cure, the default within such
period and thereafter continuously exercises due diligence to cure the default.
6.3 The Town shall use its best efforts to collect the impact fees for Emergency
Services and to withhold issuance of the Building Permit until the impact fees are paid as
provided in this Agreement; however, inadvertent failure to do so by the Town shall not
give rise to any liability by the Town. The Town's failure to collect the impact fees or
the Town's issuance of a Building Permit without first receiving the impact fees shall not
constitute a waiver of the Town's authority to collect such fees. In such case, the non-
collected.impact fees shall remain valid obligations and the Town and the District shall
cooperate to take such actions as are necessary to facilitate the collection of the same
including, without limitation and to the extent legally permissible, suspending or
revoking any permission'to develop land previously granted and enforcing liens or other
equitable remedies at the District's expense.
SECTION 7.
NOTICES
7:1 All notices that may be required or given pursuant to this Agreement by a
party to the other, shall be deemed to have been fully given.when made in writing and
deposited in the United States first class mail, postage prepaid, and addressed as follows:
(00086425. )OC 7
DISTRICT
Eagle River Fire Protection District
Post Office Box'7980
Avon, Colorado 81620-7980
TOWN OF AVON
Town Manager
Town of Avon
P.O. Box 975
Avon, Colorado 81620
7.2 The address to which any notice or other writing may be given to any party
as above provided may be changed by written notice given by such party as above
provided.
SECTION 8.
MISCELLANEOUS -PROVISIONS
8.1 This Agreement is expressly conditioned upon the continuance in force of
the Impact Fee Ordinance. In the event the Impact Fee Ordinance'is repealed or amended
in a manner that is inconsistent with the terms of this Agreement,'this Agreement shall
terminate.
8.2 No modification or waiver of this Agreement or any covenant, condition or
provision contained herein shall be valid unless in writing and duly executed by all,
parties.
8.3 This written Agreement embodies the whole Agreement between the
parties and there are no inducements, promises, terms, conditions or other obligations
made or entered into by the parties other than those contained herein.
8.4 . This Agreement shall be binding upon the parties hereto, the respective
successors or assigns, and may not be assigned by any party without the express written
consent of the other party.
8.5 All terms contained in this Agreement are severable and in the event that
any of them shall be held invalid by a court of competent jurisdiction, this Agreement
shall be interpreted as if such invalid term or condition is not contained herein.
8.6 The signatorie$ to this Agreement affirm and warrant that they are fully
authorized to enter into and execute this Agreement, and all necessary actions, notices,
meetings and/or hearings pursuant to any law required to authorize their, execution of this
Agreement have been made.
8.7.. This Agreement may be amended from time, to time by written Agreement
duly authorized by all the parties to this Agreement.
{00086425.DOC 8
8.8 This Agreement does not and shall not-be deemed to confer upon or grant
to any third party any right enforceable at law or equity arising out of any term, covenant,
or condition herein or the breach thereof.
8.9 This Agreement, or a memorandum of this Agreement, may be recorded in
the records of the Eagle County Clerk and Recorder.
(00086425.DOC - 9
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the
day and year first above written.
TOWN OF N, COLORADQ, by and
U~~40RADO
Kenn, To Clerk
Council
through To
wo.
By:
/Ag - -
on Wolfe, Mayor
EAGLE RIVER FIRE PROTECTION
DISTRICT Colorado special district, acting
by and u d of irectors.
By:
le A. ogre, Fire Chief/General
Manager
{00086425.DOC
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")
i
{00086425.DOC
( RES .m &
CONSULTING
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 Bog 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
- Bernsteiri 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-
1 . 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 Districd 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 1-
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
_
SFfs'
SEAS
2d=Year
ogra~ph id i'ea .
12~31J~OOEr
..1:~131
'j'~0~6-..
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 Needs-2007 to 2026
.
Purchaie...
to liid de in .
huit6ase
ryp~bfpksl,„Irifr3sti?!£h11e'
Purchased:
Vatue
IrtipactFees -
Value
.
Buildings
Avon Fire Station')
2010
$5,500,000
45%
82,478,859
Mintum Fire Station')
2014
$500,000
10%
$50,000
Wolcott Fire Station
2009
5750,000
100%
$750,000
Gilman Fire Station(')
2011
82,500,000
100%
$2,500,000
Edwards Fire Station
2010
$2,500,000
45%
$1,126,754
Eagle-Vail or Traer Creek 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
45%
$563,377
Public Safety Training Facility
NA
$7,000,000
4.5%
5315,000
Subtotal Buildings
$23,450,000
38%
58,910,744
Vehicles and Equpment
Fire Rescue Vehicle for Avon Fire Station0i
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%
$480,000
Ladder Truck for Mintum 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,D00
Video Conferencing Technology
TBD
$60,000
0%
$0
SCBA Recharge Compressor
TBD
$15,000
100%
$15,000
Subtotal Vehicles and Equipment
S 3,155,000
98%
$3,095,000
Impact Fee Studyt4i
$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 Fare is one of ten agencies planned to use this facility, therefore only ten percent of its growth attributable purchase value is included
m 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 mining 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; S
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 EmployeeHousing
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
C footage. This ratio equaled about 45 percent.
F-utal Report - Page 6
Exhibit 2 to the appropriate development category and calculate the applicable fees. Our results are
shown in Exhibit 3.
Exhibit S.
Calculation of Impact
Fees
Note:
(1) See Exhibit 2.
(2) See Exhibit 7.
Source:
Eagle River Fire Protection District 20-year
CIP, Stan Bernstein and Associates, Inc. and
BBC Research & Consulting.
Allocated Value for Future Fire Infrastructure (7~
Net Growth in SFEs 2007-2026(2)
Impact Fee per New SFE
$12,023,744
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.
AA.ete~:Siie
Tyke
{apaci"y Ratio
Impact:Fee
3/4 Inch
Displacement
1.0
$ 1,671
1Inch
Displacement
1.7
$ 2,841
1-1/2 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 irich meter warrants an impact fee of $18,382.
Implementation Recommendations
We offer the following recommendations for your consideration: