El Paso County Public Services Department Road Impact Fee Program

1. El Paso County Public Services Department Road Impact Fee Program BoCC Worksession August 30, 2012

2. Thanks to the Steering Committee Members The development of the fee program could not be made without the hard volunteer work of developers and the HBA Steering Committee and subcommittees. Members attend meetings with the county on average of twice a month. We are using a collaborative process to develop a program that works for all parties. Steering Committee members include the following volunteers plus others: • Jerry Novak • HBA members & staff • Karl Andrews • Kathleen Krager • Les Gruen • P J Anderson • Randy Case II • Roger Dekloe • Simon Malk • Steve Mulliken • Terry Schooler • Grant Langdon • Tom Benkert • Mark Watson • Alan T. Matlosz • and others Al Watson Bill Ankele Bryan Long Dave Cocolin Frank Watson Jeff Hodsdon Jeff Mark Danny Mientka

3. Transportation Improvement Fee Update Goals Accurately identify transportation improvements needed to accommodate growth.  Accurately assess appropriate fees for the transportation improvements and ensure that costs and fees are updated regularly.  Ensure that the identified transportation projects are built or fees are paid.  Ensure accurate and reliable accounting of fees, credits and reimbursements for needed improvements. Ensure that identified transportation projects are fairly and equitably distributed among new development.

4. Program Objectives The fee program is a credit and reimbursement program that would credit (pay back) developers that build more than required. The program does not change the current entitlement process. Developers will still be responsible for improvements necessary to make their subdivisions work pursuant to the engineering criteria manual and applicable laws. The funds are all held in accounts that are completely separate from county funds. More predictable, saves time and levels playing field for all landowners who subdivide.

5. Quantifying Impacts from New Development • Major Transportation Corridors Plan is basis • How many trips are on the roads now – traffic counts and modeling • How many trips are expected in the future • Subtract existing trips from future trips • Subtracted trips from other jurisdictions and military trips • What was left are trips from new development

6. The Fee Equation $ 382 Million = $331 1,150,000 Trips Improvement Costs (Developers Share) = Cost per Trip Trips

7. Determining number of trips Look up land use on trip table and multiply by cost per trip.

8. What is an eligible improvement? The recommended impact fee program is based on the MTCP Highlighted as an improvement Major collector and above on the MTCP. Not all collectors are eligible – only regional collectors. Can be a State road. Unit costs – jointly developed Building of roads follows all applicable rules and regulations and processes

9. MTCP www.2040mtcp.com

10. Unit Costs • Standardized for all • No negotiation • Simple calculation

11. What is a PID? Special taxing districts that can fund any public improvement that the impact fee covers.  Similar in many respects to “metro districts," but one major distinction BoCC sits as the Board of Directors, not property owners elected from within the District area.

12. How was the PID selected? In Feb. 2010, the concept was suggested by the development community and HBA. Researched by staff and consultants. PID structure was selected following an extensive review process of many different kinds of special taxing districts, using White Bear and Ankele as special counsel to the County, and with substantial input from all Stakeholders involved in the process.

13. Why Use a Public Improvement District (PID)? Current system requires us to anticipate, fund and build all roads needed for the future before the demand on the roads are there. The District is flexible and can provide funding progressively when needed. More predictable source of capital, with bonding possible. Reduce lobbying efforts with staff. Allows the impact fee to be paid over time rather than all costs upfront.

14. How do PID and Fee work together? Full impact fee = (PID taxes collected over time) + (Impact fee portion paid at Building Permit) Split between upfront fee and PID amount to be determined by bonding experts

15. Keeping the Fee Low Creating two PIDs – residential and commercial Commercial PID will have lower mill levy due to higher assessed value rate Allow creation of sales tax districts to be used instead of property tax districts Removed trips from fee Removed existing deficiencies Adjusted the trip lengths – shorter for commercial areas Model calibration for accuracy Consolidated trip rates by land use – benefit to commercial property Not overbuilding – $150 million less than last plan Did not charge for capital equipment and facilities

16. Staff were asked to consider How to deal with special district overlap How to transition the former Falcon Area Fee Program How to implement the program How to handle credits and reimbursements How to handle PPRTA projects

17. Special District Overlap

18. Special District Locations

19. Falcon Transition Determined which developments may have credits: Meridian Ranch Falcon Highlands Elkhorn Estates Paint Brush Hills 4-Way Ranch Provide for credits earned under the former program by holding former program requirements and principals. Convert lane miles to dollars using the Falcon formula of $298,000 per mile. All new building goes into the countywide fee system.

20. Falcon Transition Other Areas Checked per Request Bent Grass / Latigo – Remain in Woodmen Road District High Plains Ranch – All new buildings into new fee system. Shaw Ranch – All new buildings into new fee system. Sterling Ranch – All new buildings into new fee system. Santa Fe Springs – All new buildings into new fee system.

21. Advisory Committee Makes recommendations to the BoCC on credits and reimbursements, fee program updates, PID disbursements and bonds, independent studies, and other issues that arise. Committee make up: 3 from development community 3 county staff 1 HBA representative 1 citizen at large

22. Credits and Reimbursements Person that builds the road owns the credits Credits do not run with the land (LDC change) Credits are tradable if approved by the County, in a group, and tracked Credits above the fee obligation can be submitted for reimbursement Reimbursements are prioritized by date of acceptance and pro rata share (if not enough funds) Credit requests are presented to Advisory Committee and approved by BoCC

23. PPRTA and the Fee Program PPRTA projects are excluded from the fee program. Statutory requirement to not double tax for the same facility. If PPRTA is extended, the a fee update would be done. Likely decrease in fee per trip. PPRTA projects are not reimbursable through the Fee Program. Suggest an IGA or development agreement with developer and the County for County to reimburse. Suggest using the unit costs from the fee program as a basis for reimbursement agreements to maintain equity.

24. What’s left to do? Write up the credit and reimbursement process as decided by committee on 8/23 Update the fee and building permit/PID split Update the guidance documents and resolution with changes requested by the committee Appoint the advisory committee members Establish a fee program manager Present PID budget to the BoCC (legal requirement of the PID)

25. Outreach and Information The Steering Committee and staff met three times a month, on average for 20 months. Monthly HBA land use meeting updates. Updates to HAC, PPACG TAC, MTTC, MTCP Citizens’ Working Group Fee program and MTCP listserv. Fee Program Website with all meeting materials, notes and drafts. www.2040MTCP.com Steering Committee inform and educate other developers. BoCC Fee Program Work Session and updates August 2011, Fee program and PID presented to HBA Held a workshop for managers of Special Districts

26. For More Information http://www.2040mtcp.com/

27. BoCC options Keep interim fee Legal challenges Resolution does not allow spending of fee Have no road impact fee program Repeal the interim fee All fees collected to date would have to be refunded Approve the new fee this year Begin to implement the system Reimburse for credits that exceed fee obligations Potentially begin work on Meridian/US 24 intersection Review and update the fee program after the first year

28. Questions?