HomeMy WebLinkAboutAgenda - 05-16-2017 - 5-a - Amendment to the Educational Facilities Impact Fee Ordinance and Repeal of Related Resolutions 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: May 16, 2017
Action Agenda
Item No. 5-a
SUBJECT: Amendment to the Educational Facilities Impact Fee Ordinance and Repeal of
Related Resolutions
DEPARTMENT: Planning and Inspections
ATTACHMENT(S): INFORMATION CONTACT: (919)
1. Recommended Ordinance
2. Recommended Resolution
John Roberts, County Attorney, 245-2318
Craig Benedict, Planning Director, 245-
2592
PURPOSE: To hold a public hearing, close the public hearing, and consider an amendment to
the Educational Facilities Impact Fee Ordinance ("Ordinance") to reinstate the impact fees to the
level those fees were imposed up to June 30, 2016.
BACKGROUND: On November 15, 2016 the Board of Commissioners amended the Ordinance
by modifying the impact fee amounts, adding provisions for reduced Impact Fees for smaller
sized single family dwellings (under 800 square feet in size) and for age restricted (senior) units.
On December 13, 2016 the BOCC adopted a Resolution Regarding Grandfathering of Projects
for School Impact Fee Collection Purposes. This Resolution was amended on April 4, 2017.
On March 20, 2017 House Bill 406 ("HB406") was filed in the House in response to an
Orange County resident's concerns about the fairness of the amended Ordinance. If it
passes, HB406, which specifically targets Orange County, will strip the County of its
authority to levy impact fees. On March 22, 2017 House Bill 436 ("HB436") was filed in
the House. Although originally HB436 was similar to HB406 in that it would strip the
County of its impact fee levying authority, HB436 was amended by rolling back all impact
fees to the amount of those fees on June 30, 2016, imposing a one year moratorium on
the ability of local governments to increase impact fee amounts, and appointing a
committee to study impact fee authority.
In light of the action by the General Assembly on HB436 staff recommends the Board of
Commissioners:
• amend the Ordinance to repeal the impact fees as adopted on November 15, 2016, but
keep in place the fees for age restricted units and smaller sized single family detached
units,
• reinstate the impact fees to the amounts those fees were beginning January 1, 2012,
• repeal the grandfathering resolutions adopted on December 13, 2016 and April 4, 2017,
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• authorize the reimbursement of that portion of any impact fee in excess of the amount of
the corresponding impact fee as it existed on June 30, 2016 and that was paid from
January 1, 2017 through May 16, 2017, and
• self-impose a one year moratorium on increasing the amount of the impact fees.
Utilizing data from the TischlerBise study, staff calculated that multifamily apartment complexes
that lease primarily to college students, particularly graduate students, do in fact have a student
generation rate greater than zero. Should the Board choose to add a provision to the ordinance
for multifamily student housing restricted units an appropriate fee level will be $955 per unit for
units within the Chapel Hill-Carrboro City Schools District and $788 per unit for units within the
Orange County Schools District. These amounts were calculated by analyzing existing units of
this type in the county and their associated student generation rates.
Staff makes this recommendation to bring the ordinance into compliance with the apparent
intent of the General Assembly and to allow time to study and collect data on issues related to
the Ordinance.
Legal advertisements for the public hearing were run on May 3 and May 10, in accordance with
statutory requirements.
FINANCIAL IMPACT: The rollback of school impact fees to June 30, 2016 as compared to new
fees imposed on January 1, 2017 will decrease projected 2017-18 school impact fees revenues
by approximately $150,000 for both school districts combined. An annualized amount could be
approximately $300,000 but in the current year budget only one-half the year (i.e. 1/1/17 to
6/30/17) was subject to the new fee structure. These projected numbers are derived from a
variety of assumptions including an estimated number of units per year and a unique
percentage mix of housing types per school district.
Recent analysis portends that the decrease would be less than even the projected $150,000
because of the `grandfathering' provisions that allowed certain `approved' projects to utilize the
prior 2016 rate. The BOCC adopted a `break even' fee structure in November 2016 that
approximated total revenues from the old fees schedule and new fee schedule albeit with the
redistribution of fees based on unit type and bedroom count that reflected commensurate
student generation rates and impacts.
Some reimbursements are anticipated where higher 2017 rates were permitted and paid in
2017. The amount is negligible in Orange County Schools since most units are single family
and 2017 rates were lower in the short term and new multifamily construction had not occurred
in this year's limited timeframe. Reimbursements in Chapel Hill/Carrboro school district are
being researched but due to the short 2017 fee period and grandfathering provisions, the
financial impact will likely be less than $50,000.
SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to
this agenda item:
• GOAL: ESTABLISH SUSTAINABLE AND EQUITABLE LAND-USE AND
ENVIRONMENTAL POLICIES
The fair treatment and meaningful involvement of people of all races, cultures, incomes
and educational levels with respect to the development and enforcement of
environmental laws, regulations, policies, and decisions. Fair treatment means that no
group of people should bear a disproportionate share of the negative environmental
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consequences resulting from industrial, governmental and commercial operations or
policies.
RECOMMENDATION(S): The Manager recommends that the Board:
1. Hold a public hearing on the proposed amendments to the Educational Facilities Impact
Fee Ordinance;
2. Close the public hearing; and
3. Adopt the Ordinance and Resolution in Attachments 1 and 2.
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ORD-2017-011 Attachment 1
ARTICLE II. - EDUCATIONAL FACILITIES IMPACT FEE
Sec. 30-31. - 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.
Sec. 30-32. - Definitions.
For the purposes of this Ordinance, the following terms shall have the following definitions:
Accessory Dwelling Unit. A dwelling unit located on the same lot as another dwelling unit and
recognized as an accessory use by the local zoning code.
Certificate of Occupancy. 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. Types of dwelling
units include Manufactured Homes, Multifamily, Single Family Attached, and Single Family Detached.
Each dwelling type may be Age Restricted or not.
Dwelling Unit, Age Restricted Unit. A dwelling unit, regardless of type (detached, attached, multi-
family, etc.), located in a development that restricts the number of units with occupants aged under 55
years old and whereby the age restriction is achieved by deed restrictions, homeowners association
documents, and/or restrictive covenants.
Dwelling Unit, Manufactured Home. A dwelling unit built in a factory in accordance with the federal
Manufactured Home Construction and Safety Standards, commonly referred to as the `HUD' Code.
Dwelling Unit, Multifamily. A group of dwelling units which share a common floor-to-ceiling wall or
share the wall of an attached garage or porch with an adjacent dwelling, but not otherwise defined as a
Single Family Attached Dwelling Unit.
Dwelling Unit, Single Family Attached. A group of dwelling units which share a common floor-to-
ceiling wall or share the wall of an attached garage or porch with an adjacent dwelling and in which all
units have a ground-floor living space. Units located above ground floor non-residential (i.e. retail or
office) uses are not included in this definition.
Dwelling Unit, Single Family Detached. . A dwelling unit which is neither a Manufactured Home
Dwelling Unit, Accessory Dwelling Unit, or attached to other dwelling units (as with Multifamily or Single
Family Attached).
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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.
Sec. 30-33. -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 public school impact fee shall be as shown in the following tables:
Chapel Hill—Carrboro City Schools District
Fee
Effective Fee Fee Fee Ef ;
Dwelling Unit Type January Effective m Effective
4-May 17, 2019
2017
Single Family Detached, On3 ,
to • $11,423 ;
9.; '9 <; ! $414,581
Single Family Detached $1,655[n]
* - , ,;
<800 sq. ft.
Single Family Attached, ; 4,4 !*
Utz •-e«* $6,610
�l* ^ Family Attached, 3+
- - , Z,;;; , ; a , ,e
Utz ••.-
Multifamily, 9 :e to*
Accessory 9 • -.4' _; .- :�,$2724a -
: et*.e. $1,286
-Multifamily, 3+ B e et*.
Accessory 9,,, * -. % 0,p, -,;9
.et**
Manufactured Home , �, fl
$4,939
Age Restricted Unit $325[T2]
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Orange County Schools District
Fee Fee - '
Effective Effective Effective
tiv Effective
f
Dwelling Unit Type January jan4api4, jan4apj4, Jan, Jan,
4-May 17, 2-0-2-0- 202-4-
i 2019
2017
Single Family Detached, On3
:z a t.. $5,623 , ,
'•. - ,...' , lea .. 0,
:a e t..
Single Family Detached $1,426[73] ; , - , , * , ,
<800 sq. ft.
Single Famil Attached,--2-
.• /Multifamily $1,74
' Family Attached, 3+ 1
Z - - _2 , i is 4 .. ,,„4 9 ...4,
'l_ _ I !Ice thy.•
Accessory b •;:r '.. ,.' . ry I4 ;z r, ! . , ^� - , 4Q " ,
9... , t2 e,yw.•
Multifamily, 3+ Be: t••
Accessory 9 •: '.. ...,•' ,, , ;• , 0,4 4 .!; .,; elt'A
Manufactured Home $2,678 ; ' g'
Age Restricted Unit $268[T4] 4 , 4
New residential dwelling units qualifying for the age restricted impact fee must remain age restricted for a
minimum period of 20 years after the impact fee is paid. The owner of any age restricted dwelling unit
changed to a non-age-restricted unit before the 20-year period expires shall be required to pay the
difference between the age restricted impact fee paid and the impact fee in effect for the dwelling unit
type at the time of the change.
Sec. 30-34. - Public school impact fee exceptions.
Public school impact fees as provided in Section 30-33 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) Replacement of a building, structure or mobile home used for residential purposes, including the
following:
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
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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.
Sec. 30-35. -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.
(1) 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.
(2) 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) 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.
(2) Funds shall be used exclusively for capital improvements within the benefit area from which the
funds were collected.
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(3) Funds may be used for providing reimbursements as permitted in subsection (e)of this Section.
(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) Reimbursement of fees.
(1) Any funds not expended within the time frame established in subsection (c)(5) of this Section.
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 subsection (d)of this Section.
(2) If the Schedule of Public School Impact Fees as contained in Section 30-33 is reduced due to
an updated school impact fee study that results in changes to impact fee levels charged, no
refund of previously paid fees shall be made. If the Schedule of Public School Impact Fees as
contained in Section 30-33 is reduced due to reasons other than an updated school impact fee
study, 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 subsection (d)of this Section. If the Schedule of Public School Impact Fees as contained in
Section 30-33 is increased, no additional fees shall be collected from new construction for which
certificates of occupancy have been issued.
(3) 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 30-
34, the fee shall be returned to the feepayer.
(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 30-33.
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.
Sec. 30-36. -Credits.
(a) 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
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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.
(b) The value of land conveyed or facilities constructed by a landowner 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 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.
Sec. 30-37. - Penalties.
(a) 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).
(b) The County may assess this penalty against the landowner 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.
(c) 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.
Sec. 30-38. - Legal status provisions.
(a) 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.
(b) This Ordinance shall not diminish any prior contractual, conditional zoning, 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.
Secs. 30-39-30-70. -Appeal to the Orange County Board of Adjustment [Reserved].
Sec. 30-80. - Effective date.
This Ordinance shall be effective from and after the 1st 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.
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RES-2017-031 Attachment 2
RESOLUTION OF AMENDMENT
AN ORDINANCE AMENDING CHAPTER 24 OF THE ORANGE COUNTY CODE
OF ORDINANCES AND A RESOLUTION REPEALING RESOLUTIONS 2016-
083 AN D2017-018
WHEREAS, the State of North Carolina authorizes Orange County to impose impact fees through
Title VI of Chapter 460 of the Session Laws of 1987, as amended by Chapter 324 of the Session
Laws of 1991 and Part 4 of Chapter 642 of the Session Laws of 1993; and
WHEREAS, the General Assembly is considering amending the County's authority to impose
impact fees through House Bills 406 and 436; and
WHEREAS, in order to study how best to remain in compliance with the proposed laws and to study
issues raised by the General Assembly and collect further data; and
WHEREAS, the Orange County Board of Commissioners, believing it to be in the best interest of
the citizens and residents of Orange County, hereby determines that Chapter 30 of the Orange
County Code of Ordinances should be amended to repeal the impact fee amounts adopted on
November 15, 2016 and .
NOW THEREFORE BE IT ORDAINED that the Code of Ordinances, Orange County, North
Carolina, Chapter 30, by majority vote of the Orange County Board of Commissioners, is hereby
amended by amending section 30-33, which section reads as shown in the attached revised
ordinance amending the Educational Facilities Impact Fee in Orange County.
BE IT FURTHER RESOLVED, that Resolutions 2016-083 and2017-018 adopted on December 13,
2016 and April 4, 2017, respectively, are hereby repealed.
BE IT FURTHER RESOLVED that the County Manager is authorized to refund that portion of any
impact fees paid between January 1, 2017 and May 16, 2017 that exceeds the amount of impact
fees that would have been paid for the same project on January 1, 2012.
This Amendment shall become effective upon adoption.
Adopted by the Orange County Board of Commissioners this 16th day of May, 2017.
By: Attest:
Mark Dorosin, Chair Donna Baker, Clerk to the Board
Orange County Board of Commissioners
[SEAL]