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2020_11.12 CIAC Packet CAPITAL IMPROVEMENTS ADVISORY COMMITTEE AGENDA THURSDAY, NOVEMBER 12, 2020 5:30 PM VIA VIDEOCONFERENCE MEMBERS OF THE PUBLIC MAY JOIN BY VISITING https://us02web.zoom.us/j/7732695410 AND/OR BY DIALING 877 853 5257 AND USING MEETING ID Meeting ID: 773 269 5410 I. CALL TO ORDER NOTE: Pursuant to Texas Government Code §551.07 1, the Planning & Zoning Commission reserves the right to adjourn into Executive Session at any time during the Work Session or the Regular Session to discuss posted Executive Session items or to seek legal advice from the City Attorney on any item posted on the agenda. II. REGULAR SESSION III. ROLL CALL IV. VISITOR AND CITIZEN FORUM At this time, any person may address the board or governing body, provided that an official ‘Speaker’s Request Form’ has been submitted to the secretary prior to the start of the meeting. All comments must be directed towards the body as a whole, rather than individual members or staff. All speakers mu st limit their comments to the subject matter as listed on the ‘Speaker’s Request Form.’ No formal action can be taken nor discussion held regarding these items. V. DECISION ITEMS A. Receive a report and consider approval of land use assumpti ons for water, wastewater and roadway impact fees VI. EXECUTIVE SESSION The Planning & Zoning Commission reserves the right to convene in Executive Session(s) during this meeting pursuant to §551.071(2) when the Planning & Zoning Commission seeks the ad vice of its attorney concerning any item on this agenda or a matter in which the duty of the attorney to the Planning & Zoning Commission under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with Chapter 551 of the Government Code. VII. RECONVENE INTO OPEN SESSION, AND TAKE ACTION NECESSARY PURSUANT TO EXECUTIVE SESSION, IF NEEDED VIII. ADJOURNMENT In compliance with the Americans with Disabilities Act, the City of Kennedale will provide for reasonable accommodations for persons attending public meetings. This facility is wheelchair accessible and accessible parking spaces are available. Requests for sign interpreter services must be made forty-eight (48) hours prior to the meeting. Please contact the City Secretary at 817-985-2104 or (TTY) 1-800-735-2989. Date: November 12, 2020 CAPITAL IMPROVEMENTS ADVISORY COMMITTEE STAFF REPORT AGENDA ITEM A The city has retained Freese & Nichols, Inc. to study and make recommendation s for updated water, wastewater, and roadway impact fees. The city currently collects impact fees from developers for new developments that help mitigate the cost of new infrastructure that must be built and maintained due to this developme nt. As part of the analysis for impact fees, land use assumptions are developed. Representatives from Freese & Nichols will be presenting an overview of the impact fee study and land use assumptions and will be available to answer questions and gain your input. Attached is a copy of the presentation to review in advance. CERTIFICATION _________________________ MELISSA DAILEY, AICP DIRECTOR OF PLANNING AND ECONOMIC DEVELOPMENT CREATED 2/19/2020 4:03 PM POSTED ___________ (DATE) ___________ (TIME) CAPITAL IMPROVEMENT ADVISORY COMMITTEE IMPACT FEE 101/LAND USE ASSUMPTIONS AGENDA Impact Fee Overview Land Use Assumptions Population Growth Rate Service Areas Path Forward and Schedule 2 BACKGROUND City updated impact fees in 2016. Fees must be updated every five years. Study determines the maximum fee allowed by state law; City Council sets the actual fee to be collected from new development 3 IMPACT FEE BASICS What is an impact fee? A one-time charge assessed to new development for a portion of costs related to a specific capital improvement program. Impact fees are a mechanism for funding the infrastructure necessary to accommodate new development Funding of certain new facilities or expansions Recoupment of certain capital improvement costs Impact fees are limited to water, wastewater, roadways and drainage facilities 4 IMPACT FEE BACKGROUND Governed by Chapter 395 of the Texas Local Government Code Why do Impact Fees? Allows cities to recoup costs associated with infrastructure needed to serve future development Alleviates burden of new facilities on existing customers (lower increase in water and wastewater rates) Enables “growth to pay for eligible percentage of total cost” 5 BASIS OF IMPACT FEES 6 New development should pay for the cost of public infrastructure required to serve it. •Impact Fees are authorized by State Law (TAC Chapter 395) •Specific requirements for program (LUA, CIPs, $/SU, Ordinance) •Update required every five years •Fee must be proportional to development’s impact on system “Growth Paying for Growth” WHAT CAN IMPACT FEES PAY FOR? 7 surveying debt serviceland acquisitionengineering And all appurtenances to implement facility water supply, treatment, lines and distribution facilities, wastewater treatment, collection lines and facilities construction roadway facilities WHAT CAN IMPACT FEES NOT PAY FOR? 8 Repair, operation, or maintenance of existing or new facilities Upgrading, updating, expanding, or replacing existing capital improvements that serve existing development (where there is no new development) Cost or debt service of projects not included in the Impact Fee CIP Administrative and operating costs of the impact fee program ROLE OF THE CIAC 9 ▪Provide input: ▪Land Use Assumptions (LUA) and growth rate ▪Capital Improvements Plans (CIP) for Water, Wastewater and Roadway ▪Advise the need to update or revise LUA, CIP, and Impact Fee ▪Recommend impact fee collection rate to City Council ▪CIAC meetings ▪Scheduled meetings ▪Written recommendation to Council prior to 5 business days before Public Hearing TAC –Section 395.058.(c) IMPACT FEE PROCESS 10 •Identify Service AreasStep 1 •Update Land Use AssumptionsStep 2 •CIAC Presentation #1Step 3 •Update Capital Improvements PlanStep 4 •Public Hearing & Council ApprovalStep 7 •Update Impact Fee OrdinanceStep 8 •Impact Fee Calculations & Report PreparationStep 5 •CIAC Presentation #2Step 6 LAND USE ASSUMPTIONS: HISTORICAL GROWTH 11 Historical Population Year NCTCOG Population1 NCTCOG Growth Rate Census Population2 Census Growth Rate 2009 6,450 ------ 2010 6,763 4.85%6,763 -- 2011 6,780 0.25%6,898 2.00% 2012 6,790 0.15%7,056 2.29% 2013 6,820 0.44%7,257 2.85% 2014 6,870 0.73%7,414 2.16% 2015 7,130 3.78%7,739 4.38% 2016 7,290 2.24%7,931 2.48% 2017 7,420 1.78%8,359 5.40% 2018 7,420 0.00%8,543 2.20% 2019 7,650 3.10%---- 2020 7,670 0.26%---- 10-Year Average Growth Rate 1.27%--2.97% 5-Year Average Growth Rate 1.48%--3.62% 3-Year Average Growth Rate 1.12%--3.80% 1Source: North Central Texas Council of Governments 2Source: U.S Census Bureau LAND USE ASSUMPTIONS: PROJECTED GROWTH 12 Impending Development Population Growth Rates Development Timeframe CAGR All Development Occurs in 5-Years (2025)4.71% All Development Occurs in 7-Years (2027)3.34% All Development Occurs in 10-Years (2030)2.33% Planned Development Dwelling Type Projected Population Emerald Crest (Bowman Springs and Corry A Edwards)Single Family 30 Magnolia Hills (Kennedale Sublett and Treepoint)Single Family 276 5869 Eden Rd Single Family 72 Village at Hammack Creek (Kennedale Parkway and Kennedale Sublett)Apartments 290 Kennedale Square (1109-1121 N. Little School Rd)Townhomes 298 Kennedale Parkway & Bowman Springs Small Single Family 40 6820 Oak Crest W Tiny Houses 15 500 Mansfield Cardinal Townhomes 63 509 and 3375 S New Hope Rd Single Family 900 Total 1,984 LAND USE ASSUMPTIONS: RECOMMENDED GROWTH 13 LAND USE ASSUMPTIONS 14 Projected Population Year Recommended Growth Rate Population 2020 3.50% 7,670 2025 9,110 2030 10,820 2040 15,263 Projected Employment Year Basic Retail Service Total 2020 1,210 607 2,795 4,612 2025 1,223 944 2,975 5,142 2030 1,271 1,346 3,247 5,864 2040 1,331 2,089 3,699 7,119 WATER SERVICE AREA 15 Water Service Area Demographics Projections Demographic 2020 2030 10-Year Growth Service Area Population 7,670 10,820 3,150 Service Area Total Employment 4,612 5,864 1,252 WASTEWATER SERVICE AREA 16 Wastewater Service Area Demographics Projections Demographic 2020 2030 10-Year Growth Service Area Population 7,670 10,820 3,150 Service Area Total Employment 4,612 5,864 1,252 ROADWAY SERVICE AREA 17 Roadway Service Area Demographics Projections Demographic 2020 2030 10-Year Growth Service Area Population 7,670 10,400 2,730 Service Area Dwelling Units 2,561 3,472 911 Service Area Basic Employment 1,210 1,214 4 Service Area Service Employment 607 1,223 616 Service Area Retail Employment 2,795 3,074 279 Service Area Total Employment 4,612 5,511 899 Projected Water Demands Year Population Overall Average Day Per Capita Demand (gpcd) Average Day Demand (MGD) Average Day to Max Day Peaking Factor Max Day Demand (MGD) Max Day to Peak Hour Peaking Factor Peak Hour Demand (MGD) 2020 7,670 140 1.07 2.2 2.35 2.0 4.70 2025 9,110 140 1.28 2.2 2.82 2.0 5.64 2030 10,820 140 1.51 2.2 3.32 2.0 6.64 2040 15,263 140 2.14 2.2 4.71 2.0 9.42 WATER DEMAND PROJECTIONS 18 Historical Water Demand Year Population Average Day Usage (MGD) Overall Average Day Per Capita Usage (gpcd) Max Day Usage (MGD) Average Day to Max Day Peaking Factor 2010 6,763 1.03 152 1.91 1.85 2011 6,780 1.15 170 2.55 2.22 2012 6,790 1.06 156 2.94 2.77 2013 6,820 1.00 147 2.36 2.36 2014 6,870 0.97 141 2.14 2.21 2015 7,420 1.01 136 2.47 2.45 2016 7,290 0.96 132 2.02 2.10 2017 7,420 0.98 132 1.88 1.92 20181 7,420 1.00 135 2.45 2.45 2019 7,650 0.83 108 2.17 2.61 20202 7,670 0.84 110 1.47 1.75 Average 138 --2.24 Max 170 --2.77 1Data not available from 6/1/2018 –8/31/2018. 2Data available through 8/20/2020. WASTEWATER DEMAND PROJECTIONS Projected Wastewater Flows Year Population Average Day Per Capita Flow (gpcd) Average Day Flow (MGD) Average Day to Peak Day Peaking Factor Peak Day Flow (MGD) 2020 7,670 90 0.69 4.0 2.76 2025 9,110 90 0.82 4.0 3.28 2030 10,820 90 0.97 4.0 3.88 2040 15,263 90 1.37 4.0 5.48 19 Historical Wastewater Treatment Plant Flows Year Population Average Day Flow (MGD) Average Day Per Capita Flow (gpcd) Peak Day Flow (MGD) Average Day to Peak Day Peaking Factor 2015 7,130 0.51 71 1.93 3.82 2016 7,290 0.49 68 1.32 2.67 20171 7,420 0.45 60 1.23 2.75 2018 7,420 0.54 73 2.25 4.15 2019 7,650 0.58 76 1.75 2.99 20202 7,670 0.60 79 2.22 3.67 Average 71 --3.34 Max 79 --4.15 1Data not available from 5/16/2017 –8/8/2017. 2Data available through 8/20/2020. *Received information from City of Kennedale and City of Arlington. Data was removed based on meter discrepancies identified by the City. ROADWAY PROJECTIONS 20 Roadway Service Area Vehicle-Mile Projections Service Area Residential Growth (veh-mi) Basic Growth (veh-mi) Service Growth (veh-mi) Retail Growth (veh-mi) Total Growth (veh-mi) 1 1,538 6 273 638 2,456 Total 1,538 6 273 638 2,456 Roadway Service Area Residential Growth Projections Service Area Added Dwelling Units Vehicle- Miles Per DU Total Vehicle Miles 1 911 1.69 1,538 Roadway Service Area Employment Growth Projections Employment Type Added Employees Square Feet per Emp. Total Square Feet Vehicle- Miles per 1000/SF Total Vehicle Miles Basic 4 1,500 6,000 1.03 6 Service 279 500 139,500 1.96 273 Retail 616 1,000 616,000 1.04 638 Total 917 PATH FORWARD: DEVELOP CAPITAL IMPROVEMENT PLANS –WATER/WASTEWATER ▪Utilize water and wastewater hydraulic models to determine improvements needed to meet growth Water Wastewater TAC –Section 395.014 ▪Eligible projects: Arterial or Collector roads on Thoroughfare Plan ▪10 -year VMT based on LUA ▪Considerations: –Growth areas and projected activity –Large scale projects that add significant capacity –IFAC/City Staff recommendation –Affordability and Achievability ▪State Routes eligible; City $ only Roadway TAC –Section 395.014 PATH FORWARD: DEVELOP CAPITAL IMPROVEMENT PLANS –ROADWAY 23 No. of Development Units Vehicle-miles per Development Unitx = Step 1: Determine number of service units (vehicle-miles) generated by development using the equivalency table. Step 2: Calculate the impact fee based on the fee per service unit for the roadway service area where the development is located. Cost per Vehicle-mile Impact Fee Due From Developerx= Development’s Vehicle-miles Development’s Vehicle-miles PATH FORWARD: IMPACT FEE CALCULATIONS & REPORT PREPARATION -ROADWAY ▪Service Unit = Base unit represents a single family home ▪Service Unit Growth = 10-year growth in meter equivalents ▪Credit = Rules require 50% credit or financial credit analysis 24 Impact Fee Eligible Cost Credit Or 50% Growth In Equivalent Meters Maximum Allowable Impact Fee - = TAC –Section 395.015.(a) TAC –Section 395.050 PATH FORWARD: IMPACT FEE CALCULATIONS & REPORT PREPARATION –WATER/WASTEWATER IMPACT FEE COMPARISON TO OTHER LOCAL UTILITIES 25 1 Single Family Residence CIAC ACTION ➢Consideration/Approval of Land Use Assumptions ➢Consideration/Approval of Capital Improvement Plans and Impact Fee Calculations ➢CIAC Comments due to City Council by April 9, 2021 26 NEXT STEPS November 12, 2020 Meet with CIAC to present impact fee basics and LUAs January 14, 2021 Meet with CIAC to present CIP and maximum impact fee calculation March 16 , 2021 City Council adopts a resolution for a public hearing date March 19, 2021 Finalize Impact Fee Report Public notice of public hearing (30-day advertisement) April 9, 2021 CIAC to submit recommendation to City Council April 20, 2021 Public hearing at City Council meeting for LUA, CIP, and Impact Fee Ordinance May 18, 2021 City Council adopts Impact Fee Ordinance 27 QUESTIONS AND DISCUSSION 28