HomeMy WebLinkAboutAgenda - 10-14-2008 - 3ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: October 14, 2008
Action Agenda
Item No.
SUBJECT• Establish Educational Facilities Impact Fee Public Hearing
DEPARTMENT: Planning /Budget PUBLIC HEARING: (Y/N) No
ATTACHMENT(S):
1. Adopted Educational Facilities Impact
Fees and Results of 2007 Study
2. Proposed Timeline
3. Adopted Student Generation Rates
and Results of 2007 and Relationship
to SAPFO (Schools Adequate Public
Facilities Ordinance)
4. Legal Ad for Public Hearing
5. Draft Report for CHCCS
6. Draft Report for OCS
(Previously Provided Under Separate
Cover)
INFORMATION CONTACT:
Craig Benedict, 245-2592
Donna Coffey, 245-2151
Perdita Holtz, 245-2611
PURPOSE: To: 1) review the proposed timeline, and 2) approve the public hearing legal
advertisement.
BACKGROUND: Copies of the draft reports were sent to the School Districts, BOCC, and
municipal Planning Directors on July 22, 2008. The Board formally received the Draft
Educational Facilities Impact Fee reports at its October 7, 2008 regular meeting.
September 25 2008 Joint BOCC/School Boards Meeting
Educational Facilities Impact Fees were a topic for discussion at the September 25, 2008 Joint
BOCC/School Boards meeting. Meeting participants stressed the need to be mindful of how
impact fees could affect housing affordability. Additionally, the idea that impact fees should rise
each year in conjunction with an inflationary index rather than requiring a substantial increase
every few years was suggested.
Attachment 1 summarizes the adopted educational facilities impact fee levels and the results of
the 2007 study. Attachment 2 is the proposed timeline to hold a public hearing and finalize the
reports. Impact fee levels to be considered for adoption would occur after receiving public input
on the draft reports at the public hearing. Attachment 3 summarizes issues pertaining to
student generation rates, and Attachment 4 is the proposed legal advertisement for the public
hearing.
FINANCIAL IMPACT: Other than advertising costs and staff time, there is no financial impact
in holding a public hearing(s) on the. draft Educational Facilities Impact Fee Reports. An
increase in impact fee levels would result in an increase in impact fees collected on a per-unit
basis. Whether total impact fees collected would increase, decrease, or remain unchanged has
not been determined as it requires factoring in aspects such as whether fee levels could affect
housing starts and other general economic matters that affect housing • development. An
increase in impact fees would result in each housing unit paying more of its actual impact to
educational facilities capital budgets.
RECOMMENDATION(S): The Manager recommends the Board:
1. Review the proposed timeline in Attachment 2.
2. Approve the public hearing legal advertisement in Attachment 4.
Attachment 1
0
Adopted Educational Facilities Impact Fees and Results of 2007 Study
Impact fees were last updated in 2001 and were adopted at the following levels:
Adopted School Impact Fees (2001)
[NOTE: Fee levels were adopted at 60% of the Maximum Supportable
Impact Fee MSIF) for CHCCS and 56% of the MSIF for OCS]
Chapel Hill-Carrboro Orange County
Schools Schools
Single-Family & Multi-wide $4,407 $3,000
Manufactured Homes
Multi-Family & Single-wide $1 979 $1,420
Manufactured Homes
Since 2001, construction costs have risen dramatically and land prices have
appreciated. For example, as the chart on page 16 of the Chapel Hill-Carrboro
City Schools draft report shows, when Scroggs Elementary was constructed in
Fall 2000 the project cost was slightly higher than $17.5 million (adjusted to 2007
dollars) while Morris Grove Elementary, constructed in the Fall of 2008, cost
slightly more than $24.6 million (adjusted to 2007 dollars). Additionally, land
costs have risen substantially in the CHCCS District and buildable parcels of a
size suitable for a school have gotten scarce. It is estimated that land acquisition
costs in the CHCCS will be $100,000 per acre for sites suitable for a school. The
2007 TischlerBise study has found the following Maximum Supportable Impact
Fee (MSIF) for each district:
2007 Stud Maximum Supportable Im pact Fees
Chapel Hill-Carrboro
Schools Orange County
Schools
Sin le-Famil Detached $19,039 $9,372
Sin le-Famil Attached $11,016 -
Multifamil $2,144 ~ -
Single-Family Attached /
Multifamil _ $2;905
Manufactured Homes $8,232 $4,463
Since 1995, Orange County has offered an impact fee reimbursement program
for school impact fees paid on affordable housing units. From FY2002-03
through FY2007-08, $196,698 in collected impact fees has been reimbursed for
the 59 affordable housing units constructed in that time period.
As was done when the impact fees were updated in 2001 (adopted at 56% of the
Maximum Supportable Impact Fee [MSIF] in OCS and 60% MSIF in CHCCS),
the BOCC has discretion to adopt fee bevels at less than 100% of the
Maximum Supportable Impact Fee.
Attachment 2
Proposed Timeline
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July 22, 2008 Draft reports sent to School Systems, BOCC, and municipal
Plannin Directors.
August 22, 2008 Date stated in transmittal letter for submittal of comments
from School Districts (letters have been received from both
school districts).
September 16, Draft reports on BOCC agenda for formal receipt of reports
2008 and direction. Dela ed due to time constraints
September 25, Educational Facilities Impact Fees (EFIF) discussed at the
2008 Joint BOCC/School Board meeting.
October 7, 2008 BOCC formal) received draft reports.
October 14, 2008 BOCC approves legal ad for public hearing to be held on
November 6.
October 22 and 29, Legal ad for public hearing runs in newspapers.
2008
November 6, 2008 Public hearing on draft reports and to receive input on the
potential (undetermined) fee levels. (Consultant attends to
present reports and answer questions). Direct Consultant
to finalize draft reports. Direct staff to bring back
amendments to Educational Facilities Impact Fee
Ordinance for adoption consideration, includin date.
Date to be BOCC adopts updated impact fee levels and determines
determined on effective date for new fee levels.
Nov. 6
Attachment 3
O
Adopted Student Generation Rates and Results of 2007 Study and Relationship
to SAPFO (Schools Adequate Public Facilities Ordinance)
Student generation rates have increased in both school districts from the rates
calculated in 2001. The Adopted (2001) student generation rates are as follows:
Ado ted Student Generation Rates (2001
C ha el Hil l-Carrbo ro Schools Ora n a Count Sch ools
Elem. Middle High All Elem. Middle High All
Grades Grades
Single- 0
168 0.095 0.123 0.386 0.150 0.075 0.084 0.309
Family .
Other 0.094 0.042 0.043 0.179 0.084 0.033 0.030 0.147
All
Housing 0.134 0.070 0.086 0.290 0.140 0.068 0.076 0.284
T es
The analysis for the 2007 draft report found the student generation rates in the
following table. Some data was aggregated slightly differently for the school districts
since the housing types found in each district vary (i.e., Single Family Attached /
Multifamily was combined for OCS since there is minimal single family attached
housing in the OCS district).
2007 Stud Student Gener ation Rates
Chapel Hill-C arrboro Schools . Ora n a Cou nt Schools
Elem. Middle High All Elem. Middle High All
Grades Grades
Single-Family 0
263 0.143 0.197 0.603 0.168 0.090 0.126 0.384
Detached .
Single-Family 158
0 0
077 0.115 0.350 - - - -
Attached . .
Multifamil 0.038 0.015 0.017 0.070 - - - -
Single-Family
Attached / - - - - 0.066 0.022 0.034 0.122
Multifamil
Manufactured 0.141 0.066 0.061 0.268 0.096 0.041 0.049 0.186
Homes
All Housing 149
0 0.078 0.105 0.332 0.145 0.074 0.102 0.321
T pes .
The contract with TischlerBise, Inc. includes an update to student generation rates
because student generation rates are a factor, along with school construction costs,
in the Maximum Supportable Impact Fee calculation.
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The Educational Facilities Impact Fee Ordinance is independent of and preceded the
Schools Adequate Public Facilities Ordinance (SAPFO) effective date. Student
generation rates are also a part of SAPFO and the Certificate of Adequate Public
Schools (CAPS) system that is component of SAPFO. Although it is logical to update
SAPFO processes with the most up-to-date data available, there is not a requirement
that SAPFO student generation rates be updated prior to or concurrent with changes
to the Educational Facilities Impact Fee Ordinance. For example, the 2001 impact
fee study included student generation rates which were adopted into SAPFO in 2003
because they were readily available.
The SAPFO MOU contains a process for updating student generation rates (and
other statistical methods). The process is as follows:
1. The Board may change the projected student membership growth rate, the
methodology used to determine this rate, or the student generation rate if the
Board concludes that ,such a change is necessary to predict growth more
accurately.
2. Before making any such change, the Board shall receive and consider the
recommendation of a staff committee consisting of the planning directors of
the Town(s) and the County and a representative of the School District
appointed by the Superintendent.
3. The committee shall provide, in a timely manner, a copy of its
recommendation to the governing boards at the time it provides such
recommendation to the BOCC and the BOCC shall provide an opportunity for
the governing boards to comment on the recommendation.
4. If a change is made, the BOCC shall inform the governing boards prior to
February 1St in any year in which such change is intended to become effective
what change was made and why it was necessary.
Attachment~-4
~/
NOTICE OF PUBLIC HEARING
ORANGE COUNTY BOARD OF COMMISSIONERS
A public hearing will be held in the Judge F. Gordon Battle Superior Courtroom of the
New Orange County Courthouse, 106 E. Margaret Lane, Hillsborough, North Carolina, on
Thursday, November 6, 2008, at 7:30 PM for the purpose of giving all interested citizens
an opportunity to speak for or against the following item:
1. Draft Educational Facilities Impact Fee Reports
Effective July 1, 1993, the Board of County Commissioners established a system of
impact fees to help fund a portion of the school capital needs created by growth in the
county. Since that date, an impact fee has been collected for each new housing unit
constructed or installed in the county, including single-family home, multi-family housing
units, apartments, and manufactured homes. Fees collected in each of the two school
districts within the county (Chapel Hill -Carrboro City Schools and Orange County
Schools) are deposited into separate special accounts and used exclusively for the
construction of new school facilities in the school district in which the fee was collected.
The impact fee supplements funds provided by the County from sales tax and property
tax revenues for school capital projects. The educational facilities impact fee presently
collected (last updated in 2001) in each district for each new residential unit is as
follows:
Adopted School Impact Fees (2001)
[NOTE: Fee levels were adopted at 60% of the Maximum Supportable Impact Fee (MSIF)
for CHCCS and 56% of the MSIF for OCSj
Chapel Hill-Carrboro Schools Oran a Count Schools
Single-Family & Multi-wide $4,407 $3,000
Manufactured Homes
Multi-Family & Single-wide $~ 979 $1,420
Manufactured Homes
The Board of County Commissioners employed a consultant to evaluate impact fee
levels and determine the maximum legally defensible fee for new development in each
of the school districts with the County to subsequently decide the maximum justifiable
fee it will charge,. The full draft reports (one for each school district) are available on the
Orange County website at: htt~//www.co.orange.nc.us/OCCLERKS/0809166dO.pdf
(Orange County Schools) and http://www.co.orange.nc.us/OCCLERKS/0809166dC.pdf
(Chapel Hill -Carrboro City Schools).
The 2007 Technical Reports determined the Maximum Supportable Impact Fees as
follows:
0
2007 Study Maximum Supportable Impact Fees
Chapel Hill-Carrboro Schools Oran a Count Schools
Sin le-Famil Detached $19,039 $9,372
Sin le-Famil Attached $11,016 -
Multifamil $2,144 -
Single-Family Attached /
Multifamil _ $2,905
Manufactured Homes $8,232 $4,463
The Board of Commissioners will consider whether or not to change educational
facilities impact fees following the November 6, 2008 public hearing. THE MAXIMUM
LEGALLY PERMISSABLE FEES CALCULATED IN THE REPORTS OF THE
CONSULTANT ARE NOT A PROPOSAL TO CHARGE THOSE LEVELS OF FEES.
Any change in the present fees will be determined by the Board of Commissioners
following public comment at the public hearing and otherwise: In no event will
educational facilities impact fees be changed to an amount or amounts that exceed the
maximums determined by the 2007 Technical Reports.
Purpose: To receive public comment on the Draft Educational Facilities Impact Fees
reports and receive direction from the Board of Commissioners as to subsequent steps.
Changes may be made in the advertised proposal that reflect debate, objections
and discussion at the hearing.
Accommodations for individuals with physical disabilities can be provided if the
request is made to the Director of Planning at least 48 hours prior to the Public
Hearing by calling the appropriate number listed below.
Questions regarding the proposal may be directed to the Orange County Planning
Department located in the Planning and Agricultural Center, 306E Revere Road,
Hillsborough, North Carolina. Office hours are from 8:00 a.m: to 5:00 p.m. Monday
through Friday. You may also call 245-2575 or 245-2585 and you will be directed to a
staff member who will answer your questions.
PUBLISH:
News of Orange Chapel Hill Herald
October 22, 2008 October 22, 2008
October 29, 2008 October 29, 2008