HomeMy WebLinkAboutAgenda - 06-26-1996 - IX-F t 1
ORANGECOUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 26. 1996
Action Agenda
Item# 2X F
SUBJECT: EDUCATIONAL FACILITIES IMPACT FEE ORDINANCE - EFFECTIVE DATE
DEPARTMENT: PLANNING PUBLIC HEARING Yes_x—No
BUDGET AMENDMENT NEEDED Yes x No
ATTACHMENT(S): INFORMATION CONTACT:
Mary Willis
Impact Fee Ordinance Extension 2583
TELEPHONE NUMBERS:
Hillsborough - 732-8181
Durham -688-7331
Mebane -227-2031
Chapel Hill - 967-9251
PURPOSE: To consider repealing and re-enacting revisions to the school impact fee ordinance
approved on June 3, 1996 to specify an effective date of July 1, 1996.
BACKGROUND: The Orange County Educational Facilities Impact Fee Ordinance was originally
adopted on June 7, 1993 with an effective date of July 1, 1993 to correspond with the
beginning of the fiscal year. On April 3, 1995 an amendment was approved which
increased the fee in the Chapel Hill-Carrboro School District from$750 to $1500. The
effective date for that amendment was July 1, 1995.
On June 3, 1996,the Board of Commissioners approved an amendment to increase the
fee in the Chapel Hill-Carrboro School District from$1500 to $3000. The
amendment did not include reference to a specific effective date.
In order to simplify record-keeping and inform potential applicants of the fee increase
adopted on June 3,a July 1, 1996 effective date is proposed.
RECOMMENDATION: The Administration recommends that the Board of Commissioners:
1) repeal the Orange County Educational Facilities Impact Fee Ordinance
amendment adopted on June 3, 1996; and
2) re-enact the attached Orange County Educational Facilities Impact Fee
Ordinance,which includes a footnote (see page 2) specifying an effective
date of the July 1, 1996 for the June 3, 1996 amendments.
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ORANGE COUNTY EDUCATIONAL FACILITIES IMPACT FEE ORDINANCE
SECTION 1 -LEGISLATIVE FINDINGS
The Orange County Board of Commissioners makes the following legislative findings:
1. Orange County public school facilities are vital to the health, safety, welfare, and
economic prosperity of Orange County;
2. That public school facilities in Orange County must be expanded in order to
maintain current levels of service if new development is to be accommodated
without decreasing current levels of service;
3. To finance the expansion of the public school facilities in Orange County necessary
to maintain current levels of service while accommodating new residential growth,
several methods of finance will be employed, one of which will require new
residential development to pay an appropriate share of the reasonably anticipated
new educational facilities in the form of school impact fees; and
4. These school impact fees will provide,in a reasonable manner,for the public health,
safety,and welfare of persons residing within Orange County by providing a portion
of the costs of new school facilities which bears a relationship to the benefits of the
new school facilities to the new residential growth in Orange County.
SECTION 2 -DEFINITIONS y
For the purposes of this ordinance,the following terms shall have the following definitions:
Certificate of Occupangy. A certificate issued by Orange County or a municipality located
therein allowing the occupancy or use of a dwelling unit and certifying that the building or
structure has been constructed and will be used in compliance with all applicable codes and
ordinances.
Dwelling Unit.A room or group of rooms forming a single independent habitable unit with
facilities used or intended to be used for living, sleeping,cooking,and eating by one family.
Feepayer. The person constructing or responsible for having constructed a new dwelling
unit or new dwelling units. In the case of a mobile home, the person installing or
responsible for having installed a new mobile home or new mobile homes.
Impact Fee Ordinance i
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SECTION 3 - SCHOOL IMPACT FEES IMPOSED ON NEW RESIDENTIAL
DWELLING UNITS
In addition to all other charges prescribed by ordinance or resolution now or hereafter in
effect, there shall be public school impact fees charged to new residential dwelling units located
within Orange County, and within the municipalities and their extraterritorial planning jurisdictions
located within Orange County. No person may occupy any new residential dwelling unit until all
applicable public school impact fees contained in the following schedule have been paid in full.No
certificate of occupancy or other type of occupancy permit shall be issued for any new residential
dwelling unit until the public school impact fees hereby required have been paid in full. Payment of
such fees shall not relieve the feepayer from the obligation to comply with applicable land
development regulations of Orange County or the municipalities located within Orange County.
Schedule of Public School Impact Fees
The amount of the public school impact fee will be$750 per residential dwelling unit in the
Orange County School District. The amount of the public school impact fee will be $3,000 per
residential dwelling unit in the Chapel Hill-Carrboro School District.'
SECTION 4-PUBLIC SCHOOL IMPACT FEE EXCEPTIONS
Public school impact fees as provided in Section 3 shall not be imposed in the following
circumstances:
1. Buildings or structures, including alterations, repairs, renovations or additions
thereto,which are to be occupied and used solely for non-residential purposes.
2. Residential dwelling units for which a building permit was obtained prior to the
effective date of this ordinance.
3. Alterations,repairs,renovations or additions to a residential dwelling unit.
4.2 Replacement of a building, structure or mobile home used for residential purposes,
including the following:
I Amended June 3,1996;effective July 1,1996.
2 Amended April 3,1995.
Impact Fee Ordinance 2
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a. Installation of a replacement mobile home on a separate lot or mobile home
park space when an educational facilities impact fee for such lot or space has
been previously paid pursuant to this ordinance or where a residential
mobile home legally existed on such lot or space on or before the effective
date of this ordinance. For the purposes of this ordinance, "legally existed"
shall mean that a mobile home was located on the lot or space during the
five-year period prior to the date of adoption of this ordinance.
b. Replacement of a building, structure or mobile home damaged, destroyed or
partially destroyed by: the exercise of eminent domain; human acts, such as
riot, fire, accident, explosion; or flood, lightning, wind or other natural
calamity,with a new building,structure or mobile home.
A residential building, structure or mobile home may be replaced with a new
building, structure or mobile home of the same or dissimilar dwelling type. For
example, a mobile home may be replaced with a mobile home. Likewise, a mobile
home may be replaced with a stick-built structure. In either case, however, the
number of dwelling units may not be increased.
5. Accessory buildings and structures, including, but not limited to, garages, decks,
storage buildings, and similar structures, provided they are not used for residential
purposes.
6. Temporary buildings and structures, provided they are not used for residential
purposes. However, public school impact fees shall not be levied in the following
cases:
a. A mobile home being used to provide custodial care under the provisions of
an approved Special Use Permit.
b. A mobile home being used as a temporary residential dwelling during the
installation of a replacement mobile home or the construction of a stick-built
dwelling unit.
3 Amended April 3,1995.
Impact Fee Ordinance 3
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SECTION 5-COLLECTION OF FEES
A. CREATION OF PUBLIC SCHOOL BENEFIT AREA TRUST FUNDS
Public school impact fees collected by Orange County pursuant to this ordinance shall be
kept separate from other revenue of the County. There shall be one trust fund established for each
of the benefit areas. The benefit areas correspond to the school district boundaries as determined by
the School Districts and as illustrated on the attached map labeled Public School Benefit Areas.
B. RESPONSIBILITY FOR FEE COLLECTION
All public school impact fees are due to Orange County and shall be paid to Orange County
prior to a certificate of occupancy being issued for a dwelling unit. The fees will be collected by
Orange County and/or by interlocal agreement between Orange County and a municipality located
therein. All public school impact fees shall be properly identified by the appropriate benefit area
and transferred for deposit in the appropriate trust account.
Where there is an interlocal agreement in effect for collection of the public school impact
fees by a municipality, the municipality shall remit the fees to Orange County as provided in the
agreement, including a report of the amount of funds collected and the benefit area from which the
fees were collected. Upon receipt,the County shall deposit the fees in the appropriate trust fund.
C. LIMITATION ON EXPENDITURE OF FUNDS
Funds withdrawn from public school impact fee trust accounts shall be used solely in
accordance with the following provisions:
1.4 Funds shall be used for capital costs associated with the construction of new public
school space, including new buildings or additions to existing buildings or
otherwise converting existing buildings into new public school space where the
expansion is related to new residential growth. Such capital costs include actual
building construction; design, engineering, and/or legal fees; land acquisition and
site development; equipment and furnishings; infrastructure improvements; and/or
debt service payments and payments under leases through which to finance such
costs.
4 Amended April 3,1995;February 26,1996.
Impact Fee Ordinance 4
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2. Funds shall be used exclusively for capital improvements within the benefit area
from which the funds were collected.
3. Funds may be used for providing reimbursements as permitted in Section 5.E.
4. No funds shall be used for public school operating expenses, periodic or routine
maintenance,or the administration of this public school impact fee program.
5. Following their collection, funds shall be expended within ten (10) years, the time
frame coinciding with the public school facilities capital improvements program
(CIP)school impact fee period.
The disbursal of public school impact fee funds shall require the approval of the Board of
County Commissioners upon recommendation of the County Manager.
D. INTEREST ON FEES
Any public school impact fee funds on deposit and not immediately necessary for
expenditure shall be invested as allowed in N.C. General Statute 159-30 for other public moneys.
All income derived shall be deposited in the applicable trust fund.
E.5 REIMBURSEMENT OF FEES
Any funds not expended within the time frame established in Section 5.C.5. shall be
returned to the feepayer,or the land owner if the address of the feepayer provided to Orange County
is not current, with interest at a rate not to exceed that being paid on public school impact fees
deposited in accordance with Section 5.1).
If the Schedule of Public School Impact Fees as contained in Section 3 is reduced, the
difference between the old and new fees shall be returned to the feepayer, or the land owner if the
address of the feepayer provided to Orange County is not current, with interest at a rate not to
exceed that being paid on public school impact fees deposited'in accordance with Section 5.D. If
the Schedule of Public School Impact Fees as contained in Section 3 is increased,no additional fees
shall be collected from new construction for which certificates of occupancy have been issued.
Where an impact fee has been collected erroneously, or where an impact fee has been paid,
and the feepayer subsequently files for and is granted an exception as permitted in Section 4, the fee
shall be returned to the feepayer.
s Amended April 3,1995.
Impact Fee Ordinance g
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F. ANNUAL REPORT
A report shall be made to the Board of County Commissioners each year showing where
public school impact fees have been collected, what projects have been constructed with such fees,
and what reimbursements have been made. The report shall also include an evaluation of this
ordinance, including its effectiveness and enforcement, and the methods and data used to calculate
the Schedule of Public School impact Fees contained in Section 3.
The Board of County Commissioners shall review the report to determine if, within each
benefit area, all areas of new construction are being benefited by the fees. If the Board of County
Commissioners determines that areas of new construction are not being benefited, then it shall
readjust the capital improvements program to correct this condition. If, after review of the methods
and data used to calculate the Schedule of Public School Impact Fees, the Board of County
Commissioners determines that adjustments are required in the Schedule, then it shall direct the
County Manager and staff to prepare a report which outlines recommended changes for its
consideration.
SECTION 6-CREDITS
Any conveyance of land for a public school site or construction of new school facilities
received and accepted by Orange County, a municipality located in Orange County, and/or the
Orange County or Chapel Hill-Carrboro School Board from a landowner may, at the election of the
landowner, be credited against the public school impact fee due if the conveyance or construction
meets the same needs as the public school impact fee in providing new public school facilities. If
the landowner elects to receive credit against the amount of the public school impact fee due for
such conveyance or construction,the landowner shall, prior to the agreement to convey land for or
construct new public school facilities, or the conveyance of land for or construction of new school
facilities, enter into a fee agreement with the County. The fee agreement shall provide for the
establishment of credits and payment of the fee in a specified manner and time, and shall, upon its
execution by the landowner and the County, be binding upon the heirs and assigns of the
landowner.
The value of land conveyed or facilities constructed by a landowenr and accepted by the
County, municipality or school board for purposes of this section shall be determined by an
appraisal based on the fair market value of the land or facilities as established by the County.
Construction shall be in accordance with applicable County, municipal, school board, and State
standards. Any land conveyed for credit under this section shall be conveyed no later than the time
at which public school impact fees are required to be paid. The portion of the public school impact
6 Revised February 26, 1996.
Impact Fee Ordinance 6
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fee represented by a credit for construction shall be deemed paid when the construction is
completed and accepted for maintenance or when adequate security for the completion of the
construction has been provided.
SECTION 7-PENALTIES
In addition to any other remedy allowed by N.C. General Statute 153A-123, the failure to
pay a public school impact fee is hereby declared to subject the person responsible for payment of
the public school impact fee to a civil penalty. The amount of the penalty shall be equal to the
amount of the unpaid school impact fee, plus an interest charge of one-half percent (1/2%) per
month compounded monthly and a service charge of one hundred dollars($100.00).
The County may assess this penalty against the land owner whereon new construction has
occurred without payment of the public school impact fee. However, no service charge will be
assessed when the County staff has made an error in the fee determination. Furthermore, no penalty
shall be assessed until the person or persons alleged to be in violation are served by registered mail,
certified mail -return receipt requested,or personal service with notice to pay.
The County Attorney is hereby authorized to institute a civil action in the name of Orange
County in the appropriate division of the General Court of Justice in Orange County for recovery of
the penalty.All moneys recovered shall be deposited in the appropriate trust fund.
SECTION 8-LEGAL STATUS PROVISIONS
All ordinances and clauses in conflict herewith are hereby repealed to the extent of said
conflict. If any clause or section of this ordinance or application thereof to any person or
circumstance is held invalid, such invalidity shall not affect other provisions or application of this
ordinance which can be given separate effect, and, to this end, the provisions of this ordinance are
declared to be severable.
This ordinance shall not diminish any prior contractual or special or conditional use district
zoning obligation to pay for or install road,park or other improvements required by Orange County
or a municipality located therein, nor shall the fulfillment of those obligations diminish any
applicable public school impact fee owed to the County. This ordinance shall not diminish any
prior obligation of the County or a municipality located therein to reimburse persons for road,parks
or other improvements, nor shall the fulfillment of those obligations by the County or a
municipality diminish any applicable credit owed to the feepayer.
SECTION 9-APPEAL TO THE ORANGE COUNTY BOARD OF ADJUSTMENT
[Reserved]
Impact Fee Ordinance
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SECTION 10-EFFECTIVE DATE
This ordinance shall be effective from and after the 1 st day of July, 1993. This ordinance
shall only apply to residential dwelling units for which building permits are issued on and after the
effective date of the ordinance or any amendment thereto.
Adopted this 7th day of June, 1993.
Amended: April 3, 1995
June 5, 1995
February 26, 1996
June 3, 1996
Impact Fee Ordinance 8
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PUBLIC SCHOOL 8 E N E F I T AREAS
Impact Fee Ordinance 9