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HomeMy WebLinkAboutItem 14 - CC Report Village Fee Schedule Amendment 2-18-14 MAYOR & COUNCIL COMMUNICATION -- page 1 -- DATE: February 18, 2014 REGULAR ITEM # 14 ORDINANCE 08-103 AGENDA ITEM: Adoption of Village Area AUAR Fee SUBMITTED BY: Kyle Klatt, Community Development Director THROUGH: Dean Zuleger, City Administrator REVIEWED BY: Nick Johnson, City Planner SUGGESTED ORDER OF BUSINESS: - Introduction of Item .....................................Community Development Director - Report/Presentation………………………...Community Development Director - Questions from Council to Staff ............................................. Mayor Facilitates - Call for Motion ............................................................... Mayor & City Council - Discussion ....................................................................... Mayor & City Council - Action on Motion .................................................................... Mayor Facilitates POLICY RECCOMENDER: Staff (based on previous work of the City Administrator and the Village AUAR Advisory Panel). FISCAL IMPACT: The proposed ordinance would facilitate the reimbursement of a portion of the Village Planning fund. The City incurred expenses of $253,000 preparing the Village Area AUAR; the proposed amendment to the fee schedule would establish a fee for new development within the Village Planning area based on the expected number of new REC units in this area. SUMMARY AND ACTION REQUESTED: The City Council is being asked to adopt an amendment to the 2014 Fee Schedule that will add a new development fee to this schedule intended to help the City recover the costs incurred during the preparation of the Village Area AUAR. Staff is proposing a fee of $230 per Residential Equivalency Connection (REC) unit for new development that adds REC units above the existing conditions. This fee would be payable at the time of development, either in conjunction with the fees collected with the developer’s agreement or at the time a building permit is issued for smaller developments. City Council Meeting [Regular Agenda Item 14] February 18, 2014 -- page 2 -- The recommended motion to take action on this item is as follows: “Move to approve Ordinance 08-103 amending the fee schedule by adding a fee for the Village Area AUAR” LEGISLATIVE HISTORY: The City undertook an extensive review process shortly after the adoption of the 2005 Comprehensive Plan to begin planning for sewered development within the Village Planning Area. This work included the drafting of the Village Master Plan, the preparation of plans for the Village sewer trunk line, and the preparation of the Village Area Alternative Urban Areawide Review (AUAR) for the Village. The environmental review document in particular, was seen a key document that was necessary to not only facilitate development within the Village, but to also help the City determine the most appropriate level of development (in terms of household units) for the area. The Village AUAR was adopted in May of 2009 by the City, and was instrumental in the preparation of the Village Area Comprehensive Plan amendment approved within the past year. At the time the Village AUAR was being studied, the Staff indicated that the costs of the AUAR would be reimbursed to the City when development proposals came forward. To date, no such fee has been established that would allow the City to recover its costs associated with the AUAR. With the recent submission of concept plans for several projects within the Village Planning Area, the City should take action soon to adopt a fee for recover of AUAR costs so that this fee can be put into effect before any formal land use applications are submitted to the City. Staff has prepared the attached ordinance amending the City’s Fee Schedule to add a new development charge for property within the Village Planning Area. The overall costs for the AUAR based on City records was $253,000, and Staff is recommending that the reimbursement for these costs be tied to the new REC units that are expected to be built within the Village. BACKGROUND INFORMATION (SWOT): Strengths • The City incurred costs to conduct the Village AUAR and the proposed fee will allow the City to recuperate these costs. • The land owners and developers benefit from the AUAR because they are now exempt from any additional reviews. Weaknesses • The fee adds to the cost of developing with the Village. These costs are typically passed down to future homeowners. Opportunities • The fee will allow the City to recover a portion of the funds expended during the Village planning process. Threats • The fee could make development within the Village less attractive to developers. City Council Meeting [Regular Agenda Item 14] February 18, 2014 -- page 3 -- RECOMMENDATION: Based upon the above background information, Staff is recommending that the City Council adopt an amendment to the 2014 Fee Schedule that will add a new development fee to this schedule intended to help the City recover the costs incurred during the preparation of the Village Area AUAR. The suggested motion for this action on this item is as follows: “Move to approve Ordinance 08-103 amending the fee schedule by adding a fee for the Village Area AUAR” ATTACHMENTS: 1. Ordinance 08-103