The URL can be used to link to this page

Home My WebLink AboutAgenda - 12-01-2008 - 5a ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: December 1, 2008 Action Agenda Item No. 5-0 SUBJECT: Educational Facilities Impact Fee — Public Hearing DEPARTMENT: Planning / Budget PUBLIC HEARING: (Y/N) Yes ATTACHMENT(S): INFORMATION CONTACT: 1. Legal Ad for Public Hearing Craig Benedict, 245-2592 2. Consultant Presentation Donna Coffey, 245-2151 3. Graphs of Historical Impact Fee Perdita Holtz, 245-2611 Collections for Both School Districts 4. A. Impact Fee at Various Levels and Projected Level Necessary to Generate $1.6 million in CHCCS B. Educational Facilities Impact Fees in Relationship to New Single Family Dwelling Sales Prices C. Example of Cost Recovery 5. Adopted student Generation Rates and Results of 2007 and Relationship to SAPFO (Schools Adequate Public Facilities Ordinance) 6. Letters from CHCCS and OCS 7. Draft Report for CHCCS 8. Draft Report for OCS (Previously Provided Under Separate Cover) PURPOSE: To conduct a public hearing on the draft reports prepared by TischlerBise, Inc. which calculate the maximum supportable impact fee for new residential units in each of the two school districts. BACKGROUND: Orange County adopted the Educational Facilities Impact Fee Ordinance in 1993 and last updated impact fee levels in 2001. In 2007, the County contracted with TischlerBise, Inc. to produce an updated impact fee study. Copies of the draft reports were sent to the School Districts, BOCC, and municipal Planning Directors on July 22, 2008 and the Board formally received the draft Educational Facilities Impact Fee reports at its October 7, 2008 regular meeting. The topic was also discussed at the September 25, 2008 Joint County/Schools meeting and at the October 14, 2008 BOCC work session. Letters received from the school districts are included at Attachment 6. 2 The fee level ranges proposed by staff to be considered for the public hearing are as follows: • $5,069 - $11,423 for a new single-family detached dwelling in the Chapel Hill — Carrboro City Schools (CHCCS) district, and • $3,000 - $5,623 for a new single-family detached dwelling in the Orange County Schools (OCS) district. As is shown in Attachment 4A, the projected impact fee required in the CHCCS district to generate the budgeted amount of $1.6 million to offset a portion of CHCCS debt service is $5,069. This is the staff-recommended lower end of the impact fee range. The staff- recommended upper end of the range ($11,423) is 60% of the Maximum Supportable Impact Fee (MSIF), which is consistent with the adopted percentage of the 2001 MSIF. In the OCS district, the lower end of the staff-recommended range is the current impact fee of $3,000 and the upper end of the range ($5,623) is 60% of the MSIF. The MSIF is the highest amount feasible to be charged and represents new residential growth's fair share of the capital costs to provide school capacity (the Executive Summary of each technical report further details this concept). Attachment 4B shows impact fee levels in relation to the sales price of new single family detached dwellings. In CHCCS, the 2001-adopted impact fee of $4,407 is 1.21% of the 2001 median sales price of a new single family detached dwelling. If the impact fee were to be increased to 1.21% of the 2007 median sales price of a new single family detached dwelling, the corresponding impact fee would be $9,249. In OCS, the 2001-adopted impact fee of $3,000 is 1.32% of the median sales price of a new single family detached dwelling. If the impact fee were to be increased to 1.32% of the 2007 median sales price of a new single family detached dwelling, the corresponding impact fee would be $3,762. Attachment 4C is an example of cost recovery on 1,000 new single family detached dwellings in the CHCCS District. The example shows the impact fee collected and deficit in funding the cost of school construction with impact fee levels at 100%, 60%, and 27% of the MSIF. The impact fee level for housing types other than single family detached dwellings would be set at the same percentage of maximum supportable impact fee for the particular type of dwelling as the percentage set for single family detached dwellings. For example, if impact fees were to be set at 60% of the maximum supportable impact fee for single family detached dwellings, the impact fee for a manufactured home would be set at 60% of the maximum supportable impact fee for manufactured homes. Changes in the present fees would be determined by the Board of Commissioners following public comment at the public hearing and otherwise. In no event would educational facilities impact fees be changed to an amount or amounts that exceed the maximums determined by the 2007 Technical Reports. Ms. Julie Herlands of TischlerBise, Inc. will be in attendance at the public hearing to give a presentation and to answer questions regarding the reports (see Attachment 2 for the basics of the presentation). The consultant's role relates to the technical aspects of determining the MSIF and not aspects regarding what the County decides on the MSIF or percentage thereof. FINANCIAL IMPACT: Other than staff time and the consultant contract, there is no financial impact in conducting a public hearing on this issue. As Attachment 4A shows, an increase in impact fees to $5,069 per new single family detached dwelling is projected to be necessary to generate the budgeted amount of$1.6 million to offset part of the CHCCS debt service. 3 RECOMMENDATION(S): The Manager recommends the Board: 1. Conduct a public hearing on the draft reports, 2. Direct the consultant to finalize the reports, 3. Close the public hearing, and 4. Direct staff to bring back amendments to and effective date of the Educational Facilities Impact Fee Ordinance for adoption consideration at December 11, 2008 regular Board meeting. Attachment 1 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 Monday, December 1, 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 recover a portion of school capital projects that add student capacity necessary to serve residential 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 OCS] Chapel Hill-Carrboro Schools Orange County 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 increased significantly and land prices have appreciated. 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. The full draft reports (one for each school district) are available on the Orange County website at: http://www.co.orange.nc.us/OCCLERKS/0809166d0.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 shown in the Table below. THE MAXIMUM LEGALLY PERMISSABLE FEES CALCULATED IN THE REPORTS OF THE CONSULTANT ARE NOT A PROPOSAL TO CHARGE THOSE LEVELS OF FEES. The Board of Commissioners is currently considering an impact fee in the range shown in the table. 0 2007 Study Maximum Supportable Impact Fees (MSIF) and Range Under Consideration Chapel Hill-Carrboro Schools Orange County Schools MSIF Range Under MSIF Range Under Consideration Consideration Single-Family Detached $9,372 $19,039 $5,069 -$11,423 $3,000 -$5,623 Single-Family Attached $11,016 $2,974-$6,610 - - Multifamily $2,144 $579 -$1,286 - - Single-Family Attached/ $2,905 Multifamily - - $930 -$1,743 Manufactured Homes $8,232 $2,223-$4,939 $4,463 $1,428 -$2,678 The Board of Commissioners will consider whether or not to change educational facilities impact fees following the December 1, 2008 public hearing. Impact fees for each housing type within each school district would be set at the same percentage point within its respective range. For example, if impact fees are set at 60% of the maximum supportable impact fee for single family detached dwellings, the impact fee for manufactured homes would be set at 60% of the maximum supportable impact fee for manufactured homes. Precise changes, if any, 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 the impact fee range under consideration. 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, 306F 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 November 19, 2008 November 19, 2008 November 26, 2008 November 26, 2008 14-finch rv-l-ent Z 0 Educational Facilitie- Impact Fees ' - ew Orange County Schools . .... - Chapel HiIi-Carrboro City Schools orange County,North Carolina • Introduction • Overview Pwe n etioe to .,..l - -Impact Fees Orange County _ - Process for the Studbs C`moECounty • Im act Fee Results b S stem Commissioners �, p � Y System) "`" -Methodologies December 1,2008 - Levels of Service&Costs - Maximum Supportable Amounts TISCdtlf $ n • Q&A • National Practice The purpose is to: • Impact Fees(700+) ;: , "% __<• Fiscal Impact ". , . Help defray the costs to the County Evaluations(600+) ..2.-:.„. °. __ -,-„*...7`...:,.-„ of constructing certain capital • Infrastructure Needs •": •�� ; ' • '' •' '•, . improvements, the need for which is &Revenue Strateges , created in substantial part by the new • Public and Private `-f development that takes place within the Sector Experience* County." •Norte Corollas ala+tsr CaWrrvs county,Comden C purity,C7raw6►Co war, St.1987460:'4n Act Maklrc Sundry Mam:to nts anthem county,C.MWd3 car MY'patx county,G1aRrdCOUnty,tnwNam.a Conceminplocal Governments in Orange and Chatham lc gemsr *e. wane coo nty,Can,www.,,o r,owe am,na «Mae, - CWmttes,Trtte VI:Orange Countyimpect Fees.” ladnonvxae,N aas trarb taR.wNmurato n,and tnNDn, ore awK.ac.a I o"wwvuc•• • Represent new growth's fair share of the • Interview key staff cost for capital facility needs • Analyze demographic data • Used for capacity expansions • Consider methodologies and determine levels of • Not a revenue raising mechanism but a service way to provide growth-related • Determine capital costs infrastructure • Evaluate inclusion of credits •Three requirements must be met: • Determine maximum supportable fee - Impact:Growth is generating need for infrastructure amounts for each School System - Benefit:Timing of improvements;Accounting and • Staff review expenditure(*taro& = • Presentations to the Pubic - Proportionality:Pair share of cost • Decision by elected officials __ tbleg.iii aw,aaroc.. awe•-o.+c.. 1 • 0 - - - - - - - - , ell11111111.1.1.10 - thodolog -- - •• , - ,.- - , -- •• - - Overview • • Cost Recovery (past) Demand Infrastructure . -- -Oversized and unique facilities Units Units Dollars • Incremental Expansion (present) per X per X - Formula-based approach documents level-of- Development Demand Infrastructure .-. service with both quantitative and qualitative Unit Unit Unit • measures;common for schcois --' ; - • Plan-Based (future) ,---- . •, , - -Common for utilities but can also be used for 1 ' 1 • i other public facilities with non-impact fee • funding(e.g.,roads) - Orme,...p1K•7 Ischlefte Mew GraarAC•li ...........-,. ( ."----.. _...V1+ P:.--,,r.,-)74,-,. ...4 .: - 1 i-, _'-'s......,;2',17-• .....-.. •- - - , " . - ' ,- .tion Rates --- __ - .-_,-- ,•=1,-- --4k----- - - ,-:.:,---,.. ---r---:-..- ,-- . 1 - ORRICE COUNTY SCHOOLS ..t. ''''''2,7''F"r".7._ o•- '■;;,i,,,Y1.,,re.--1W ocs amts - 14111e 1111Gmfee•:17.-. '"'",?. • ,.;_t14.1'XIZN-'."',1''''''a RarortS 3 '4.A.11Y 00.6.1 EINISEMINNISE=MISIINCEMBIBUI= F.,07An4ft4dth.aY la!Mille=REREJMENtillinIM1421825= 24mm...a...... BEES=INIMENEEIIIERESE=11111= -.7".-;=.r.---..47.---2-7. -_ ..;•-:... --,--,.1----'--1-7.:;:.--211 ----' "4.4'0 TV,.ak." 1111111111:1131■27.11111111111111111:3 NM:Ell - - '-`7.--,-..,•'+'2.r'--".1',..-- .—17-.-r:=7'-7't--,--"1 , •• c.....moomcm......., ..... „,,_,...„ .....77,77,•..,---,-,_..,... .W.'::_ •.,...47—r422 , . Avon Figure 2 g5. Drerja.7. TI..M i 11 kaft -;;;;;;...;,,Pie•• WgA C.1.140.1.7.0•I. tketerlent Milk HAik . - BmIding&pro Foal'trStudat I= IS IR • • • - - - t Summary MAC.'Per feat $486116 $14743 42.57.76 - --- =111=21111:7M111E2E3 , _ . Acreage Po Studeni 0937 OAK 0039 _ Land Oad Pet Aue RUM sa. Snoop Megoggry Middle' High rrotal Gloss Capital Cost Per Stusta0 I $24691 I MON I 991.669 I , Pon.bleCliwoom Pf.g.d.t 0.001 QOM UN Local Shan of Capacity Cosi 99.0% 99.09. 99034, Ont Par Portal.Comm 810,030 SIO,C00 S10,000 Dial Geoss Local Capitil Cost PerStudelt $24424 94719 033.952 .--• P .-t CxeditrerStaden* owe %VA 1:05,1010 00 Sapp.*%rafts Cost Per Student $533 alb ON 5.= , OCICHCCS Transp.Peal*Con Per Mudget 191 Is.n.af.d1,4'G.0.6.6‘.4.4-- -''1 --NOW 'S606.1- UN 1 news.1)• (Pardon) Itusarkitkk■per Made* 9514 3909II WM. WekeAtei ArtrageOng pet BeaNdJde $0.603 80603 Safe 13(1.11..0 lo.vvthid.c.twas.kat . , .. '1 $419:11'.01.290 I -91490 I , •5 __ - ......q.mc•u lt.ellWie _ • 2 OCS Maximum Suppo able Impact - - - - -dent-Gene ti on es on Rates -.-- ====i3 arAff-LHILL-r.4112206040001$ Alhfiei 4.4041. ====sissoisumaimzzimz:mimulai 'r1=11111•11EPalraminliWzion2r3 EgEg MEE=33/EMEME MEE= HI••• SSENEMIESMEN=IiintinE=RESE= On0C...0332.3r•c.r1.3•33. Repo?Figure 14 Spore 2 14.010 rni, 133 IX 4111.1111111/MIM M . Taal Co%Per - - -- - - • •r-Stud t Summary XXXXXXC32030101.0,3 3011301-22E=BIE=115E=3 Acreage Par 3%3.3 1023 MAI 0232 • bald Cox Per Acne 3103301 NOWA° $100403 173433 Gem C230131 Cog Per&agent I 333433 I MIX I 3430311 coo,.soma. - um*1 IMO ,S5.20 1.0031 Sure X• • Cog 994% 994% 99.0% MS ANA MX . 992219 k3L1 042J33 03N Per Porlaila°now. VW. $33301 333.020 '7'11 Ler'•' Z.•-••• = =• CHOZ9 SapponswoRk. n.$34333 $1449 XXX CNCCS CCNOCC3 11.444.Fociliry Pa4•012* XS III el u 11•3•NAkladss per Sada+ 1309 0031 •009 WNAIned/worn,.CeN rce 1.0011241. 334143 MAX 3IA143 13 smay Gag s.s.a 333 336 333 lIddaSise • CHCCS Maximum Supp•rtable • • i• • •a ees • Discussion • Questions? 7TffirILTZ:=311■111111EC:11111M3=2.131111Eil 1-""".===1MENRIIIE=111111112:3•1123131111114=1 2==1111111111111111111111111111111112:3■=1•1111123311111213 t=11=1=1111■11111111112=1•1111121311111112MMEM CHCC2 #73053 14 issitedke 3 School Construction Impact Fee Chapel Hill Carrboro City Schools $3,000,000 - - 1,200 o School Construction Impact °' -0 0. c• $2,500,000 - ° Fee Increase Effective June - 1,000 t - j rte, c 25,2001 0 972 0 = 1 G° y 0. 851 ✓ $2,000,000 - 800 0 .0 0 Co. 99 628 -0 .0 0 • 8 0 l: $1,500,000 CD - 600 H v � � °,-° 0 571 H c., co a V c(0 E e=o w 'R. Ti", 0 d m $1,000,000 o - 400 0_ V rn X50 336 a to .5 �o m 3 ra a $500,000 200 c 67 I .-) a c $0 o 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Fiscal Year (1) Building permit data provided by Towns of Chapel Hill and Carrboro Planning Departments O School Construction Impact Fee 09/16/2008 Orange County Schools Does Not Reflect School Construction Impact Fees Collected on Behalf of City of Mebane $1,400,000 700 654 School Construction Impact Fee Increase 620 $1,200,000 Effective June 25, 2001 • 600 c 6 >. c a cv .8 L. w$ 1,000,000 500 y a c N >. Cn C)• U co E • c 7 $800,000 98 400 E v rn 67 � a 0)p c c 0 n o 0 17 0 $600,000 0 a) -g m rn -°- — rn 300 a; r cv V p! c0 V LU O co _r cD 6� c CO o �} CO 0 V 0 t 0 ifk V $400,000 N 200 rn � ;o = 'o te. 0 a $200,000 o a 100 N co 0) co co $0 0 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Fiscal Year (1) Includes School Construction Impact Fees Collected for Certificates of Occupancy Issued by Orange County Planning Department. Does not inlcude School Construction Impact Fees collected on behalf of City of Mebane. (2) Certificates of Occupancy data provided by Orange County Planning Department. 0 School Construction Impact Fees 09/16/2008 Orange County Schools $1,600,000 $1,400,000 $1,200,000 im ,O MI $1,000,000 ,0 Dkb $800,000 $600,000 $400,000 0 $200,000 $ I 0 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Fiscal Year •Collected by Orange County Planning for Certificates of Occupancy Issued 0 Collected by Orange County Planning on Behalf of City of Mebane III R THIS PAGE INTENTIONALLY LEFT BLANK 0 Attachment 4A Impact Fee at Various Levels and Projected Level Necessary to Generate$1.6 million in CHCCS The tables below provide impact fee levels at various percentages of the maximum supportable impact fee(MSIF)as defined in the 2007 technical reports prepared by TischlerBise,Inc. Cun eft Impact Fee for Single Family Homes located in CHCCS School District Chapel Hill Carrboro City Schools __________ .■ 100% 90% 80% 70% 60% 50% 40% 32% 30% 27% 23% 20% 10% Single Family Detached $19,039 $17,135 $15231 $13227 $11,423 $9,520 $7,616 $6,092 $5,71 $5,069 __MAW $3,808 $1,904 Single Family Attached $11,016 $9,914 $8,813 $7,711 $6,610 $5,508 $4,406 $3,525 , 05 $2,203 $1,102 Multifamily $2,144 $1,930 $1,715 $1,501 $1,286 $1,072 $858 $643 $429 $214 Single Family N/A N/A N/A N/A N/A N/A N/ N/A N/A N/A N/A Attached/Multifamily Manufactured Homes $8,232 $7,409 $6,586 $5,762 $4,939 $4, $3,293 $2,634 $2,470 $1,646 $823 Average number of building permits issued by Towns of 316 Chapel Hill and Carrboro in FY 2005-06 through 2007-08 Amount of Impact Fee revenue anticipated to offset CHCCS debt $1,600,000 service Impact Fee Level to Generate Current Impact Fee for $1.6 million $5,069 Single Family Homes located in OCS School District Orange County Schools 100% 90% 80% 70% 60% 56% 50% 40% '' 32% 30% 27% 20% 10% Single Family Detached $9,372 $8,435 $7,498 $6,560 $5,623 $5248 $4,686 $3,749 $3,000 $2,812 $2,530 $1,874 $937 Single Family Attached N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Multifamily N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Single Family $2,905 $2,615 $2,324 $2,034 $1,743 $1,627 $1,453 $1,162 $872 $784 $581 $290 Attached/Multifamily Manufactured Homes $4,463 $4,017 $3,570 $3,124 $2,678 $2,499 $2,232 $1,785 $1,339 $1,205 $893 $446 Attachment 4B 14 Educational Facilities Impact Fees Fees in Relationship to New Single Family Dwelling Sales Prices Chapel Hill — Carrboro City Schools District New SF 2001 $4,407 2007 2008 Impact detached (217 closed Impact Fee (74 closed Fee if at same dwelling sales) % of Price sales) % as 2001 Average $393,445 1.12 $805,707 $9,024 Sales Price Median $364,900 1.21 $764,394 $9,249 Sales Price Source of data: MLS closed sale date for Average; proprietary appraisal software for Median, using MLS data. It should be noted that all sales are not entered into the MLS. Orange County Schools District New SF 2001 $3,000 2007 2008 Impact detached (95 closed Impact Fee (110 closed Fee if at same dwelling sales) % of Price sales) % as 2001 Average $233,626 1.28 $337,775 $4,324 Sales Price Median $228,000 1.32 $284,968 $3,762 Sales Price Source of data: MLS closed sale date for Average; proprietary appraisal software for Median, using MLS data. It should be noted that all sales are not entered into the MLS. Attachment 4C 4131 Example of Cost Recovery Example for 1,000 new single family detached dwellings in the Chapel Hill — Carrboro City Schools District PLEASE NOTE: Numbers are rounded to the nearest whole number for example 100% MSIF Example Number of students Generated (at all levels) [0.603 x 1000 = 603] 600 Maximum Supportable Impact Fee per Dwelling [actual is $19,039] $19,000 Impact Fee Collected on 1,000 new dwellings if MSIF imposed $19,000,000 Approximate cost of school for 600 students (not including land costs) $24,600,000 Deficit if impact fee is increased to MSIF (other fund sources would be necessary to ($5,600,000) compensate for this amount) 60% MSIF Example Impact Fee Collected on 1,000 new dwellings if impact fee is set at 60% of the MSIF [$11,400] $11,400,000 Deficit if impact fee is increased to 60% of MSIF (other fund sources would be necessary to ($13,200,000) compensate for this amount) 27% MSIF Example Impact Fee Collected on 1,000 new dwellings if impact fee is set at 27% of the MSIF [$5,000] $5,000,000 Deficit if impact fee is increased to 27% of MSIF (other fund sources would be necessary to ($19,600,000) compensate for this amount) Attachment 5 C 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: Adopted Student Generation Rates (2001) Chapel Hill-Carrboro Schools Orange County Schools 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 Types 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 Study Student Generation Rates Chapel Hill-Carrboro Schools Orange County 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 0.158 0.077 0.115 0.350 - - - - Attached Multifamily 0.038 0.015 0.017 0.070 - - - - Single-Family Attached / - - - - 0.066 0.022 0.034 0.122 Multifamily Manufactured 0.141 0.066 0.061 0.268 0.096 0.041 0.049 0.186 Homes All Housing 0.149 0.078 0.105 0.332 0.145 0.074 0.102 0.321 Types 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. 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. $ CHAPEL HILL- rEcF i':_TED ARRBORO BY0 9 zaos:s CITY SCHOOLS September 8, 2008 Barry Jacobs, Chair Board of County Commissioners PO Box 8181 Hillsborough, NC 27278 Dear Commissioner Jacobs: At its meeting on September 3, 2008, the Chapel Hill-Carrboro Board of Education approved the following resolution: Be it, therefore, resolved that the Board of Education urges the Orange County Board of Commissioners to increase the school impact fees in order to provide a source of funding to construct new schools to keep pace with the district's growing student population and the escalating cost of construction. Be it further resolved that the Board of Education urges the Orange County Board of Commissioners to continue to reimburse the impact fee for newly constructed affordable housing. We look forward to further discussion on this important topic at our joint meeting on September 25, 2008. Sincerely, Pamela S. Hemminger, Chair Board of Education C: Laura Blackmon Neil Pedersen Lincoln Center,750 S. Merritt Mill Road • Chapel Hill, NC 27516-2878 • (919)967-8211 •www.chccs.k12.nc.us iq Orange County Schools 1f L c 200 East King Street Hillsborough NC 27278 G.Patrick Rhodes (919)732-8126 Telephone Superintendent (919)732-8120 Fax www.orange.k12.nc.us September 19,2008 • Mr.Craig Benedict,Director Orange County Planning and Inspections Department 306 F Revere Road,PO Box 8181 Hillsborough,NC 27278 Dear Mr.Benedict: RE: School Impact Fees The Orange County Board of Education held a discussion at their September 2,2008 Board meeting regarding the Draft School Impact Fees Report completed by TischlerBise. In response to the request for our Board to provide comments pertaining to the report,I am providing the following excerpt from the approved minutes of the September 2 meeting: Board members agreed by consensus to reply to the County Commissioners stating the Board of Education supports the County Commissioners in all their efforts to fully fund our school district Administration recommends the percentage of the maximum supportable impact fee remain at 56% The Orange County Board of Education fully supports the Board of County Commissioners'efforts to fund the Orange County Schools and supports the current impact fee levels. Please let me know if you need any additional infulmation. Sincerely, ,/"Cl Pc,kketc ardA4.-- G.Patrick Rhodes Superintendent /pmc cc: Orange County Board of Education SAP Z�QQB .13V I it