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OR 91-533.1 Adopts impact fees as a chapter of Code of Coppell ORDINANCE NO. 91533.1 AN ORDINANCE ADOPTING "IMPACT FEES" AS A CHAPTER OF THE CODE OF THE CITY OF COPPELL, TEXAS; PROVIDING THIS ORDINANCE BE CUMULATIVE; PROVIDING FOR SEVERABILITY; PROVIDING FOR GOVERNMENTAL IMMUNtTY~ PROVIDING FOR INJUNCTIONS; AND PROVIDING FOR AN EFFECTIVE DATE W}IEREAS, in 1987 the Texas legislature adopted Senate Bill 336, now Article 395 of the Local Government Code; and WHEREAS, the City Council finds that in all things the City has complied with said statute in the notice, adoption, promulgation and methodology necessary to adopt Impact Fees; and WHEREAS, the City Council has determined that it be appropriate policy to utilize schedule 1 and 2, attached hereto BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COPPELL, TEXAS: That the Code of Ordinances of the City of Coppell, Texas, be and the same is hereby amended by adding thereto a new Chapter 17 to be known as the "City of Coppell Impact Fee Code." IMPACT FEES ARTICLE I GENERAL PROVISIONS Section 1.01 Short Title This Chapter shall be known and cited as the City of Coppell Impact Fee Code. Section 1.02 Purpose This Chapter is intended to assure the provision of adequate public facilities to serve new development in the City by requiring each development to pay its pro rata share of the costs of such improvements necessitated by and attributable to such new development, as related to water and wastewater capital improvements. Section 1.03 Authority This Chapter is adopted pursuant to Article 395 of the Local Government Code (Senate Bill 336) and pursuant to the Coppell City Charter. The provisions of this Chapter shall not be construed to limit the powers of the City to utilize other methods authorized under State Law or pursuant to other City powers to accomplish the purposes set forth herein, either in substitution or in conjunction with this Chapter. Guidelines may be developed by Resolution or otherwise to implement and administer this Chapter. Section 1.04 Definitions (1) Capital Improvements Advisory Committee means the City's Planning and Zoning Commission~ as duly appointed by Resolution 031390.2 (March 13, 1990). (2) Area-related facility means a capital improvement or facility expansion which is designated in the Impact Fee Capital Improvements Plan and which is not a site related facility. Area-related facility may include a capital improvement which is located offsite, within, or on the perimeter of the development site. (3) Assessment means the determination of the amount of the maximum impact fee per service unit which can be imposed on new development pursuant to this Chapter. (4) Capital improvement means either a water facility or a sanitary sewer facility with a life expectancy of three (3) or more yearsl to be owned and operated by or on behalf of the City. (5) City means the City of Coppell, Texas. (6 Credit means the amount of reduction of an impact fee for fees, payments or charges for the same type of capital improvements for which the fee has been assessed. (7 Facilities expansion means either a water facility expansion or a sanitary sewer facility expansion. Final plat approval or approval of final plat means the point at which the applicant has complied with all conditions of approval and the plat has been released for filing with Dallas County. (9) Impact Fee means either a fee for water facilities or a fee for sanitary sewer facilities imposed on new development by the City pursuant to this Chapter in order to fund or recoup the costs of capital improvements or facilities expansions necessitated by and attributable to such new development. impact fees do not include the dedication of rights-of-way or easements for such facilities or the construction of such improvements. impact fees also do not include extension Charges, pro rata charges, or tapping fees for water improvements pursuant to section 3-1-13, section 3-1-14 and section 3-1-15 of chapter three of the Code of Ordinances. Impact fees also do not include extension charges, pro rata charges or tapping fees for sanitary sewer improvements pursuant to section 3-2-3, section 3-2-4 and section 3-2-5 of Chapter three of the Code of ordinances. 10) Impact fee capital improvements plan means either a water improvements plan or a sanitary sewer improvements plan adopted or revised pursuant to this chapter. 11) Land use assumptions means that projections of population and employment growth and associated changes in land use, densities and intensities adopted by the City, as may be amended from time to time, upon which the impact fee capital improvements plans are based. 12) New development means a project involving the construction reconstruction, conversion, structural alteration, relocation, or enlargement of any structure, or any use or extension of land, which has the effect of increasing the requirements for capital improvements or facilities expansions, measured by the number of service units to be generated by such activity, and which requires either the approval and filing with Dallas County of a plat pursuant to the City's subdivision regulations, the issuance of a building permit, or connection to the City's water or sanitary sewer system. 13) Offset means the amount of the reduction of an impact fee designed to fairly reflect the value of area-related facilities or other facilities, pursuant to rules herein established or administrative guidelinesl provided by a developer pursuant to the City's subdivisions regulations or requirements. (14) Recoupment means the imposition of an impact fee to reimburse the City for capital improvements which the City has previously oversized to serve new development. (15) Service area means either a water benefit area or a sanitary sewer benefit area within the City, within which impact fees for capital improvements or facilities expansions will be collected for new development occurring within such area and within which fees so collected will be expended for those types of capital improvements or expansions identified in the capital improvements plan applicable to the service area. (16 Service unit means the applicable standard units of measure shown on the conversion table in the impact fees capital improvements plan which can be converted to five-eighths by three-fourths inch (5/8" X 3/4") water meter equivalents, as the context indicates, which serves as the standardized measure of consumption, use or generation attributable to the new unit of development. (17 Sanitary sewer facility means an improvement for providing sanitary sewer service, including, but not limited to, land or easements, treatment facilities, lift stations or interceptor mains. Sanitary Sewer facility excludes sanitary sewer lines or mains which constructed by developers, the costs of which are reimbursed from pro rata charges paid by subsequent users of the facilities. Sanitary sewer facilities exclude site related facilities. (18) Sanitary seweI extension means the expansion of the capacity of any existing sanitary sewer improvement for the purpose of serving new development, but does not include the repair, maintenance, modernization, or expansion of an existing sanitary sewer facility to serve existing development. (19) Sanitary sewer improvements plan means the adopted plan, as may be amended from time to time, which identifies the sanitary sewer facilities or sanitary sewer expansions and their associated costs which are necessitated by and are attributable to new development, and for a period not to exceed ten (10) years, and which are to be financed in whole Or in part through the imposition of sanitary sewer facilities fees pursuant to this Chapter. (20) Single-family residential lot means a lot platted to accommodate a single-family dwelling unit, as authorized under the City's zoning and platting regulations. (21) Site-related facility means an improvement or facility which is for the primary use Or benefit of a new development and/or which is for the primary purpose of safe and adequate provision of water or sanitary sewer facilities to serve the new development, and which is not included in the impact fees capital improvements plan and for which the developer or property owner is solely responsible under subdivision and other applicable regulations. (22) Water facility means an improvement for providing water service, including, but not limited to, land or easements, water treatment facilities, water supply facilities or water distribution lines. Water facility excluded water lines or mains which are constructed by developers, the costs of which are reimbursed from pro rata charges paid by subsequent users of the facilities. Water facility excluded site-related facilities. 4 (23) Water facility expansion means the expansion of the capacity of any existing water facility for the purpose of serving new development, but does not include the repair, maintenance modernization, or expansion of an existing water facility to serve existing development. (24) Water improvements plan means the adopted plan, as may be amended from time to time, which identifies the water facilities or water expansions and their associated costs which are necessitated by and which are attributable to new developmentl for a period not to exceed ten (10) years, and which are to be financed in whole or in part through the imposition of water facilities fees pursuant to this Chapter. Section 1.05 Applicability The provisions of this Chapter apply to all new development within the corporate boundaries of the City. Section 1.06 impact Fee as Condition of Development Approval No application for new development shall be approved within the City without assessment of an impact fee pursuant to this Chapter, and no final plat shall be approved unless the applicant has paid the impact fee imposed by and calculated hereunder. Section 1.07 Land Use Assumptions A. The Resolution adopting land use assumptions for the City is attached hereto as Exhibit "A" and is incorporated herein by reference. B. The land use assumptions for the City shall be updated at least every three (3) years, utilizing the amendment procedure set forth in Section 1.17. Section 1.08 impact Fees per Service Unit A. An impact fee per service unit for the service area shall be computed by dividing the total costs of capital improvements necessitated by and attributable to new development in the service area identified in the impact fee capital improvements plan for that category of capital improvements by the total number of service units anticipated within the service area, based upon the land use assumptions for the service area. Maximum impact fees per service unit for the service area shall be established by category of capital improvements and shall be set forth in schedule 1, attached hereto and made a part of this Chapter be reference. B. The impact fee per service unit which is to be paid by each new development within the service area shall be that established by Ordinance by City Council, as may be amended from time to time, and shall be an amount less than or equal to the maximum impact fee per service unit established in subsection (a/. impact fees that are to be paid shall be as set forth in schedule 2, attached hereto and made a part of this chapter be reference. C. Impact fee schedules 1 and 2 may be amended from time to time utilizing the amendment procedure set forth in Section 1.17. Section 1.09 Assessment of Impact Fees A. The approval of any new development shall include as a condition the assessment of the impact fee applicable to such development. B. Assessment of the impact fee for any new development shall be made as follows: 1. For a development which is submitted for approval pursuant to the Cityis subdivision regulations following the effective date of this Chapter, assessment shall be made in the development review process, and shall be the amount of the maximum impact fee per service unit then in effect, as set forth in schedule 1, as compufed by the procedures set forth in section 1.08(A). The city, in its sole discretionl may provide the subdivider with a copy of schedule 1 prior to development review~ but shall not constitute assessment within the meaning of this Chapter. 2. For a development which has received final plat approval prior to the effective date of this Chapter and for which no replatting is necessary, fees will be determined according to the fee schedule in effect at the time of approval. C. Following assessment of the impact fee pursuant to subsection (B), the amount of the impact fee per service unit for that development cannot be increased, unless the owner proposes to change the approved development by the submission of a new application for final plat approval, in which a new assessment shall occur at the schedule 1 rate then in effect. D. Following the lapse or expiration of approval for a platl a new assessment must be performed at the time a new applicafion for such development is filed. 6 Section 1.10 Computation and Collection of impact Fees A. The impact fees due for new development shall be collected prior to final plat approval by the City Council unless the equivalent service units for the new development cannot be determined. In such case an agreement between the developer and the City will be executed providing for a different time of payment. B. Following the filing and acceptance of an application, the City shall compute the impact fees due from the new development in the following manner: 1. The amount of each impact fee shall be determined by multiplying the number of service units generated by the new development by the impact fee due per service unit for the service area using schedule 2. The number of service units shall be determined by using the conversion table contained in the capital improvements plan. 2. The amount of each impact fee due shall be reduced by any allowable offsets or credits for that category of capital improvements, in the manner provided in Section 1.12. 3. The total of the impact fees due for the new development shall be calculated and attached to the development application with collection as a condition of approval. C. The amount of each impact fee due for a new development shall not exceed an amount computed by multiplying the fee assessed per service unit pursuant to Section 1.08 by the number of service units generated by the development. D. If the final plat for which an impact fee has been paid has expired, and a new application is thereafter filed, the impact fees due shall be computed using schedule 2 then in effect, with credits for previous payment of fees being applied against the new fees due. E. Whenever the property owner proposes to increase the number of service units for a development, the additional impact fees collected or such new service units shall be determined by using schedule 2 then in effect, and such additional fee shall be collected prior to issuance of a new building permit, or prior to enlargement of the connection to the City's water or sanitary sewer system. Section 1.11 Suspension of Fee Collection There is no suspension period for new development which has not received final approval prior to enactment of this Ordinance. Section 1.12 Offsets and Credits Against Impact Fees A. The City shall offset the reasonable value of any area-related facilities, pursuant to rules established in this section or pursuant to guidelines and which have been dedicated to and have been received after final acceptance by the City on or after June 1, 1990~ including the value of capital improvements constructed pursuant to an agreement with the City, against the amount of the impact fee due for that category of capital improvement. B. All offsets and credits against impact fees shall be subject to the following limitations and shall be granted based on this Ordinance and additional standards promulgated by the City, which may be adopted as administrative guidelines. 1. No Offset Or credit shall be given for the dedication or construction of site-related facilities. 2. No offset or credit shall exceed an amount equal to the eligible value of the offset multiplied by a fraction, the numerator of which is the impact fee per service unit due for the new development as computed using schedule 2 and the denominator of which is the maximum impact fee per service unit for the new development as computed using schedule 1. 3. The unit costs used to calculate the offsets shall not exceed those assumed for the capital improvements included in the capital improvements plan for the category or facility within the service area for which the impact fee is imposed. 4. If an offset or credit applicable to a plat has not been exhausted within ten (10) years from the acquisition of the first building permit issued or connection made after the effective date of this ordinance or within such period as may be otherwise designated by contract, such offset or credit shall lapse. 5. In no event will the City reimburse the property owner or developer for an offset or credit when no impact fees for the new development can be collected pursuant to this Ordinance or for any amount exceeding the total impact fees due for the development for that category of capital improvement, unless otherwise agreed to by the City. C. An applicant for new development must apply for an offset or credit against impact fees due for the development in the development review process unless the City agrees to a different time. The applicant shall file a petition for offsets Or credits with the City on a form acceptable by the City for such purpose. The contents of such petition shall be established by administrative guidelines. The City 8 must provide the applicant, in writing, with a decision on the offset or credit request, including the reasons for the decision. The decision shall specify the maximum value of the offset or credit which may be applied against an impact fee, which amount and the date of the determination shall be associated with the plat for the new development. D. The available offset or credit associated with the plat shall be applied against an impact fee in the following manner: 1. For single-family residential lots in a new development consisting only of single-family residential lots which have received Development Review Board approval, such offset or credit shall be prorated equally among such lots, to be applied at the time of filing and acceptance of an application of a final plat , against impact fees due. 2. For all Other types Of new development, including those involving mixed uses, which have received Development Review Board approval, the Offset or credit applicable to the plat shall be applied to the impact fee due at the time of approval. 3. At its sole discretion, the City may authorize alternative credit or offset agreements upon petition by the owner in accordance with guidelines promulgated by the City. Section 1.13 Establishment of Accounts A. The City's Finance Department shall establish an account to which interest is allocated for the service area for each category of capital facility for which an impact fee is imposed pursuant to this Ordinance. Each impact fee collected shall be deposited in such account. B. Interest earned on the account into which impact fees are deposited shall be considered funds of the account and shall be used solely for the purposes authorized in Section 1.14. C. The City's Finance Department shall establish adequate financial and accounting controls to ensure that impact fees disbursed from the account are utilized solely for the purposes authorized in Section 1.14. disbursement of funds shall be authorized by the City at such times as are reasonably necessary to carry out the purposes and intent of this Ordinance, provided, however, that any fee paid will be expended within a reasonable period of time, but not to exceed ten (10) years from the date fee is deposited into the account. D. The City's Finance Department shall maintain and keep financial records for impact fees, which shall show the source and disbursement 9 of all fees collected or expended. The records of the account into which impact fees are deposited shall be open for public inspection and copying during ordinary business hours. The City may establish a fee for copying services. Section 1.14 Use of Proceeds of Impact Fee Accounts A. The impact fees collected for the service area pursuant to this Ordinance may be used to finance or to recoup the costs of any capital improvements or facilities expansions identified in the applicable impact fee capital improvements plan for the service area, including the construction contract price, surveying and engineering fees, land acquisition costs (including land purchased, court awards and costs, attorney's fees, and expert witness fees), and the fees actually paid or contracted to be paid to an independent qualified engineer or financial consultant preparing or updating the impact fee capital improvements plan who is not an employee of the political subdivision. Impact fees may also be used to pay the principal sum and interest and other finance costs on bonds, notes or other obligations issued by or on behalf of the City to finance such capital improvements or facilities expansions. B. Impact fees Collected pursuant to this Ordinance shall not be used to pay for any of the following expenditures: 1. construction, acquisition or expansion of capital improvements or assets other than those identified in the applicable impact fee capital improvements plan; 2. repair, operation or maintenance of existing or new capital improvements or facilities expansions; 3. upgrading, expanding or replacing existing capital improvements to serve existing development in order to meet stricter safety, efficiency, environmental or regulatory standards~ 4. upgrading, expanding or replacing existing capital improvements to provide better service to existing development, provided, however, that impact fees may be used to pay the costs of upgrading, expanding or replacing existing capital improvements in order to meet the need for new capital improvements generated by new development: or 5. administrative and operating costs of the City. Section 1.15 Appeals A. The property owner or applicant for new development may appeal the following decisions to the City Council: 1. applicability of an impact fee to the development; 2. the amount of the impact fee due; 3. the availability or the amount of an offset or credit; 4. the application of an Offset or credit against an impact fee due; 5. the amount of a refund due, if any. B. The burden of proof shall be on the appellant to demonstrate that the amount of the fee or the amount of the offset or credit was not calculated according to the applicable schedule of impact fees or the guidelines established for determining offsets and credits. C. The appellant must file a notice of appeal with the City Secretary within thirty (30) days following the decision. If the notice of appeal is accompanied by a bond or other sufficient surety satisfactory to the City Attorney in an amount equal to the original determination of the impact fee due, the development application may be processed while the appeal is pending. Section 1.16 Refunds A. Any impact fee or portion thereof collected pursuant to this Ordinance, which has not been expended within the service area within ten (10) years from the date of payment, shall be refunded, upon application, to the record owner of the property at the time the refund is paid or, if the impact fee was paid by another governmental entity, together with interest calculated from the date of collection to the date of refund at the statutory rate as set forth in Article 1.03, Title 79, Revised Statutes (Article 5069-1.03, Vernon's Texas Civil Statutes), or any successor statute. B. An impact fee collected pursuant to this Ordinance shall be considered expended if the total expenditures for capital improvements or facilities expansions authorized in Section 1.14 within the service area within ten (10) years following the date of pa~nent equals or exceeds the total fees collected for such improvements or expansions during such period. 11 C. If a refund is due pursuant to subsections (A) and (B), the City shall prorate the same by dividing the difference between the amount of expenditures and the amount of the fees collected by the total number of service units assumed within the service area for the period to determine the refund due per service unit. The refund to the record owner shall be calculated by multiplying the refund due per service unit by the number of service units for the development for which the fee was paid, and interest shall be calculated upon that amount. D. Upon completion of all the capital improvements or iacilities expansions identified in the Capital improvements plan for the service area, the City shall recalculate the maximum impact fee per service unit using the actual costs for the improvements or expansions. If the maximum impact fee per service unit based on actual cost is less than the impact fee per service unit paid, the City shall refund the difference, if such difference exceeds the impact fee paid by more than ten percent (10%). The refund to the record owner shall be calculated by multiplying such difference by the number of service units for the development for which the fee was paid, and interest due shall be calculated upon that amount. E. If the final plat for a new development for which an impact fee has been paid has expires, and a modified or new application has not been filed within six (6) months of such expiration, the City shall, upon written application, refund the amount of the impact fee to the applicant. Section 1.17 Update of Plan and Revision of Fees A. The City shall update its land use assumptions and impact fees capital improvements plan and shall recalculate its impact fee not less than once every three years in accordance with procedures set forth in Texas Revised Civil Statutes, Article 1269j-4.11, Section 6, or any successor statute. B. The City may review its land use assumptions, impact ice capital improvements plans, and other factors such as market conditions more irequently than provided in subsection (A) to determine whether the land use assumptions and impact fee capital improvements plans should be updated and the impact fee recalculated accordingly, or whether schedule 2 collection rates should be increased, decreased, or otherwise changed. Section 1.18 Functions of the Capital Improvements Advisory Committee A. The Capital Improvements Advisory Committee shall perform the following functions: 12 1. advise and assist the City in adopting land use assumptions; 2, review the impact fee capital improvements plans and file written comments thereon; 3. monitor and evaluate implementation of the impact fee capital improvements plans; 4. advise the City of the need to update or revise the land use assumptions, capital improvements plans and impact fees; and 5. file a semiannual report evaluating the progress of the City in achieving the impact fee capital improvements plans and identifying any problems in implementing the plans or administering the impact fees. B. The City Council shall adopt, by Resolution, procedural rules by which the Advisory Committee may carry out its duties. C. The City shall make available to the Advisory Committee any professional reports prepared in the development or implementation of the impact fee capital improvements plans. Section 1.19 Agreement for Capital Improvements A. An owner of a new development may construct or finance a capital improvement or facility expansion designated in the impact fee capital improvements plan, if required or authorized by the City, by entering into an agreement with the City prior to the approval of final plat for the development. The agreement shall be on a form acceptable to the City, and shall identify the estimated cost of the improvement or expansion, the schedule for initiation and completion of the improvement or expansion, a requirement that the improvement be designed and completed to City standards and such other terms and conditions as deemed necessary by the City. The agreement shall provide for the method to be used to determine the amount of the Offset to be given against impact fees due for the development. B. Except as herein otherwise provided, the assessment and collection of an impact fee shall be additional and supplemental to, and not in substitution of, any other tax, fee, charge or assessment which is lawfully imposed on and due against the property. C. The City may pay all or part of impact fees due for a new development taking into account available offsets and credits pursuant to duly adopted criteria. Section 1.21 Impact Fee as Additional and Supplemental Regulation 3 13 impact fees established by this Ordinance are additional and supplemental to, and not in substitution of, any other requirements imposed by the City on the development of land or issuance of building permits or certificates of occupancy. Such fee is intended to be consistent with and to further the policies of the City's Comprehensive Plan, the impact fee capital improvements plan, the zoning ordinance, subdivision regulations and other City policies, ordinances and resolutions by which the City seeks to ensure the provision of adequate public facilities in conjunction with the development of land. Section 1.22 Relief Procedures A. Any person who has paid an impact fee or an owner of land upon which an impact fee has been paid may petition the City Council to determine whether any duty required by this Ordinance has not been performed within the time so prescribed. The petition shall be in writing and shall state the nature of the unperformed duty and request that the act be performed within sixty (60) days of the request. If the City Council determines that the duty is required pursuant to the Ordinance and is late in being performed, it shall cause the duty to commence within sixty (60) days of the date of the request and to continue until completion. B. The City Council may grant a variance or waiver from any requirement of this Ordinance, upon written request by a developer or owner of property subject to this Ordinance, following a public hearing, and only upon finding that a strict application of such requirement would, when regarded as a whole, result in confiscation Of the property. C. The City Council may grant a waiver from any requirement of this Ordinance on other grounds, as may be set forth in administrative guidelines. D. If the City Council grants a variance or waiver to the amount of the impact fee due for a new development under this section, it shall cause to be appropriated from other City funds the amount of the reduction in the impact fee to the account for the service area in which the property is located. Section 1.23 Exemption From Ordinance Any final plat application which was duly accepted for filing prior to the effective date of this Ordinance and which is subsequently granted, shall be exempt from the assessment and payment of an impact fee under this Ordinance, unless such application thereafter expires. Other fees due in connection with said application shall not be exempt from collection. 14 WATER FACILITIES FEES Section 2.01 Water Benefit Area A. There is hereby established a water benefit area, constitufin~ the City as depicted on Exhibit "B" atfached hereto and incorporated herein by reference. B. The boundaries of the water benefit area may be amended from time to time, and new water benefit areas may be delineated, pursuant to the procedures in Section 1.17. Section 2.02 Water Improvement Plan A. The Water Improvement Plan for the City of Coppell is hereby adopted as set out in the Water and Wastewater System 1991 Capital Improvement Plan and Impact Fee Study Exhibit "C" attached hereto and incorporated by reference herein. B. The Water Improvement Plan may be amended from time to time, pursuant to the procedures in Section 1.17. Section 2.03 Water Facilities Fees A. The maximum impact fees per service unit for water facilities are hereby adopted and incorporated in schedule 1 attached hereto and made a part hereof by reference. B. The impact fees per service unit for water facilities, which are to be paid by new development, are hereby adopted and incorporafed in schedule 2 attached hereto and made a part hereof by reference. C. The impact fees per service unit for water facilities may be amended from time to time, pursuant to the procedures in Section 1.17. ARTICLE III SEWER FACILITIES FEES Section 3.01 Sanitary Sewer Benefit Area A. There is hereby established a sanitary sewer benefit area, constitutin~ the City as depicted on Exhibit "D" attached hereto and incorporated herein by reference. 15 B. The boundaries of the sanitary sewer benefit area may be amended from time to time, and new sanitary sewer benefit areas may be delineated, pursuant to the procedures in Section 1.17. Section 3.02 Sanitary Sewer improvements Plan A. The Sanitary Sewer improvements Plan for the City of Coppell is hereby adopted as set out in the Water and Wastewater System 1991 Captial Improvement Plan and Impact fee Study Exhibit "C" attached hereto and incorporated by reference herein. B. The Sanitary Sewer Improvements Plan may be amended from time to time, pursuant to procedures in Section 1.17. Section 3.03 Sanitary Sewer Facilities Fees A. The maximum impact fees per service unit for sanitary sewer facilities are hereby adopted and incorporated in schedule 1 attached hereto and made a part hereof by reference. B. The impact fees per service unit for sanitary sewer facilities, which are to be paid by each new development, are hereby adopted and incorporated in schedule 2 attached hereto and made a part hereof by reference. C. The impact fees per service unit for sanitary sewer facilities may be amended from time to time, pursuant to the procedures in Section 1.17. 2. This Ordinance shall be and is hereby declared to be cumulative of all other ordinances of the City of Coppelll and this Ordinance shall not operate to repeal or affect any of such other ordinances except insolaf as the provisions thereof might be inconsistent or in conflict with the provisions, if any, in such other ordinance or ordinances are hereby repealed. If any section, subsection, sentence, Clause or phrase of this ordinance is for any reason held to be unconstitutional, such holding shall not affect the validity of the remaining portions of this ordinance. 16 A1] of the regulations provided in this ordinance are hereby declared to be governmental and for the health, safety and welfare of the general public. Any member of the City Council or any City official or employee charged with the enforcement Of this ordinance, acting for the City of Coppell in the discharge of his duties, shall not thereby render himself personally liable: and he is hereby relieved from all personal liability for any damage that might accrue to persons or property as a result of any act required or permitted in the discharge of his said duties. Any violation of this ordinance can be enjoined by a suit filed in the name of the City of Coppell in a court of competent jurisdiction, and this remedy shall be in addition to any penal provision in this ordinance or in the Code of the City of Coppell. This ordinance shall take efiect immediately from and after the publication of its caption, as the law in such cases provides. 17 DULY PASSED by the City Council of the City of Coppell, Texas, this the 12th day of November , 1991. APPROVED Mark Wolfe MAYOR ATTEST: Dorothy Timmons CITY SECRETARY APPROVED AS TO FORM: Lawrence W. Jackson CITY ATTORNEY 18 SCHEDULE 1 MAXIMUM IMPACT FEE PER FACILITY TYPE SERVICE UNIT SERVICE UNIT Water Cost per 5/8 X 3/4 $974 inch water meter equivalent Sanitary Sewer- Cost per 5/8 X 3/4 $1,404 City System inch water meter equivalent Sanitary Sewer- Cost per 5/8 X 3/4 MUD System inch water meter $282 equivalent SCHEDULE 2 IMPACT FEE PER FACILITY TYPE SERVICE UNIT SERVICE UNIT Water Cost per 5/8 X 3/4 $650 inch water meter equivalent Fire Service Meter Only $1,625 (2.5 E.S.U's) Combination Fire/Domestic $1,625 plus $650 multiplied by number of ESU's for domestic meter size Sanitary Sewer Cost per 5/8 X 3/4 $450 City Wastewater inch water meter Customers equivalent Combination Fire/Domestic $450 multiplied by by number of ESU's for domestic meter size MUD Wastewater Cost per 5/8 X 3/4 $225 Customers inch water meter equivalent Combination Fire/Domestic $225 multiplied by number of ESU's for domestic meter size 19 " EXHIBIT A " A RESOLUTION OF THE CITY OF COPPELL, TEXAS PaSOLbTZON NO. 0 57~ 90, / APPROVING LAND USE ASSUMPTIONS TO BE USED IN THE ADOPTION OF IMPACT FEES WHEREAS Senate Bill 335 was passed by the Texas Legislature in 1987 (now Chapter 395 Local Government Code}, to provide a method for municipalities to impose impact fees for recouping the cost of off-site capital improvements necessitated by new development; 8rid I~HERE~, an important element of establishing impact fees as outlined by Senate Bill 336 is the adoption of land use assumptions to be used in the establishment of such fees; and WHEREAS, the public hearing to solicit citizen input to present evidence for and against the land use assumptions was held on May 8, 1990; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COh'NCIL OF THE CITY OF COPPELL: SECTION 1. That the land use assumptions prepared by the Capital improvements Advisory Committee and city staff as provided in Chapter 395 of the Local Government Code, ahnd kept on file in the office of the Plaruling Commission, be approved by the governing ~dy. SECTION 2. That this action is taken after appropriate, legal notice and subsequent public participation has been solicited from the community. SECTION 3. That this resolution shall take effect from and after its passaqe. THE CITY OF COPPELL, TEXAS MAYOR APPROVED A~ TO FORM: ATTEST: 'CITY ATTORITEY/,,, CI' " EXHIBIT B " "EXHIBIT D" "EXHIBIT C" --~ ;,~ WATER AND WASTEWATER SYSTEM 1991 CAPITAL IMPROVEMENT PLAN AND IMPACT FEE STUDY for the City of Coppell, Texas This d'3cl,;nen it; for inletira review GINN & CASE, INC. CONSULTING ENGINEERS 171~3 PRESTON ROAD, SUITE 100, LB-118 DALLAS, TEXAS 75248 (214) 248-4900 ( '~:./.. ,;6' ,,', .:/ "EXItlBIT C" WATER AND WASTEWATER SYSTEM 1991 CAPITAL IMPROVEMENT PLAN AND IMPACT FEE STUDY for the City of Coppell, Texas JULY 1991 GINN & CASE, INC. CONSULTING ENGINEERS 17103 PRESTON ROAD, SUITE 100, LB-118 DALLAS, TEXAS 75248 (214) 248-4900 TABLE OF CONTENTS Page Executive Summary ....................................................................................................................... Overview .........................................................................................................................................2 Definition ...........................................................................................................................2 Methodology ......................................................................................................................2 Water System Analysis .................................................................................................................. Water System C~xpital Improvement Plan ..................................................................................5 Water System Equivalent Service Units .....................................................................................6 Employee Ratio ................................................................................................................6 Household Ratio ...............................................................................................................7 Equivalent Service Unit Conversion Formula ..........................................................................7 Maximum Allowable Water System Impact Fee .......................................................................8 Wastewater System Analysis ........................................................................................................9 Wastewater System Capital Improvement Plan ......................................................................10 Wastewater System Equivalent Service Units .........................................................................11 Employee Ratio ..............................................................................................................1 Household Ratio .............................................................................................................11 Equivalent Service Unit Conversion Formula ........................................................................ Maximum Allowable Wastewater System Impact Fee ...........................................................13 TABLES No. Page 1 Cost of Existing ~cilities Oversized for Future Development ...............................14 2 Cost for Proposed Water Facilities Required for Anticipated Growth ...................15 3 Cost of Proposed Wastewater Facilities Required for Anticipated Growth ........... 17 4 Combined Anticipated Interest Expense (No Principal Included) .........................18 5 Projected Citywide Populations ....................................................................................20 6 Population and Employment Projections ....................................................................21 7 Household and Employment Projections ....................................................................22 8 Equivalent Service Unit Conversion Factors ..............................................................23 9 Water System-May 1991-Total Equivalent Service Units ..........................................24 10 Irrigation and Fire Service Meters-May 1991-Total Equivalent Service Units ...... 25 11 Wastewater System-May 1991-Total Equivalent Service Units ................................26 EXHIBITS No. 1 Water System Improvement Map 2 Wastewater System Improvement Map 3 NCTCOG Traffic Districts EXECUTIVE SUMMARY In June of 1987, the Texas Legislature adopted Senate Bill 336 to standardize the method by which political subdivisions recover the cost of capital improvements required to serve new development. The legislation set forth a deadline and a methodology for the calcula- tion of the fees. In June of 1990, the City of Coppell adopted Water and Wastewater Impact Fees which complied with the legislation. In March of 1991, the Council authorized the re-evaluation of these fees. As in the initial study, this study area encompasses all land within the city limits, including areas currently served by the Coppell Municipal Utility District No. 1 and the City of Lewisville (Vista Ridge). The legislation requires that impact fees be based on an Equivalent Service Unit basis. For the City of Coppell, one Equivalent Service Unit (ESU) has been established as 5/8" x 3/4" meter. There is a projected increase of 14,669 ESU's for the Water System and 11,441 ESU's for the Wastewater System (4,774 City; 6,667 MUD) over the time period January 1, 1991 to January 1, 2001. Over the same period, there is projected to be $14,287,746 of recoverable capital expenditures for the water system. An estimated $4,893,250 is recov- erable from the City wastewater system and an additional $3,177,812 is recoverable from the combined City and MUD wastewater system. This yields a maximum calculated water impact fee of $974/ESUfor water, $1,307/ESU for the City wastewater system, and $282/ESU for the MUD wastewater system. If growth matched projections, adequate capital would be recovered to meet 100% of the fiscal requirements without the need for outside financing. However, growth rarely matches projections and the capital projects must be constructed in advance of the growth. As such, the City must incur long term debt for the construction of the projects. The associated revenue bonds are secured through the water and wastewater rates. In the first few years after the bonds are sold, the existing system customers, as well as the first "new" customers support the burden of this debt service. This could subject the City to a claim of double charging the new customers since they have paid an impact fee covering the projects and paid rates supporting the associated debt service. There are two possible solutions to prevent this type of claim. The first would be a two tiered rate structure, one with and one without the associated debt. Aside from being an administrative nightmare, such a rate strt~cture could make future revenue bonds difficult to market. The most realistic alternative is to discount the assessed impact fee, thus assuring the City that a potential double charge does not occur since the new development only pays the dis- counted portion up front with the unassessed balance being recovered system wide through the rates. Therefore, we recommend the Council set the new impact fee rates as follows: All Water Customers: $650/ESU City Wastewater Customers: $450/ESU MUD Wastewater Customers: $225/ESU City of Coppell, Texas 1991 Impact Fee Analysis I OVERVIEW Definition Impact Fees are a charge or assessment imposed by a political subdivision against new developments in order to generate revenue for recouping or funding the costs of capital improvements necessitated by and attributable to such new development. An Impact Fee is not a tax. The fees cover a defined group of capital improvements and are allocated equally over the anticipated new service units. The Impact Fee represents the equitable recovery of actual and anticipated capital expenditures on a unit basis over a ten year forward period. Projected expenditures beyond the ten year period, or expenditures to serve existing development, are equally absorbed by all customers of the system. By law, the Impact Fees may only be used to recover the cost of capital i~nprovements or facility expansions (contained in the approved Capital Improvements Plan) including the construction contract price, surveying and engineering fees, land acquisition costs (includ- ing court awards, attorney's and witness fees), and fees paid for preparing or updating the Capital Improvements Plan. Impact Fees may not be used for parks or park land acquisi- tion; onsite water distribution, wastewater collection, or drainage facilities; streets, side- walks or other such facilities required by valid ordinances. Projected interest charges and finance costs may be included in determining the amount of impact fees, provided such fees are used for the payment of obligations for the construction of hcilities identified in the Capital Improvement Plan. Upon completion of a project, the actual cost must be used to recalculate the fees to determine if refund provisions apply. Methodology The City of Coppell continues to be a rapidly growing cnmmunity in northwest Dallas County. The City has grown from a population of 3,836 in 1980 to 16,881 in 1990. Currently, in excess of 40% of the gross acreage within the City is undeveloped; therefore, adequate land exists for the growth to continue throaghout the next ten year planning period. Employment growth is expected to be a substantial component of the future growth as the western portion of the City begins to develop. The legislation allows for the City to recover the cost of certain existing oversized facilities as well as future facilities identified in the Capital Improvements Plan. To accomplish this, all water facilities constructed with funds from the 1985 Water Revenue Bond Program were analyzed for excess capacity as well as all oversized facilities constructed since 1986 in which the City participated in the cost. 'Fable 1 summarizes the identified water projects, the percentage required for existing development, allocated interest expenses for 1991 to 2001 and recoverable costs from future development. The total recoverable cost from future development for existing water facilities is $7,509,535. The only existing wastewater City of Coppell, Texas 1991 Impact Fee Analysis 2 projects eligible for cost recovery are the Master Wastewater Plan and the wastewater portion of the 1990 Impact Fee Analysis. These projects total $55,585 of recoverable wastewater costs. It should be noted that the 1985 Revenue Bonds were retinaneed and refunded under the 1991 Refunding Revenue Bond Series. The next step was to identify the capital water/wastewater projects and/or system im- provements which would be required to serve new development prior to January 1, 2001. The Ten Year Capital Improvements Programs contained in the recently adopted Master Water Plan and Master Wastewater Plan for the City of Coppell were evaluated for the ability to serve the anticipated new development. The majority of the proposed im- provements will be required in the business/industrial districts in the western part of the city. For the purpose of this analysis, it is assumed that developers will bear the cost of all infrastructure for their development without City cost participation. For segments identi- fied as "oversize only", the anticipated cost participation represents the recoverable cost above the size required by the subdivision ordinance. The estimated recoverable cost for proposed future water facilities (Table2) is $6,778,211. Table 3 summarizes the wastewa- ter facilities which will be required prior to January 1, 2001 and the associated recoverable costs. The estimated recoverable cost of the proposed wastewater facilities is $8,536,015. The corresponding percentage of the project cost, including projected interest expense, was allocated to existing and proposed development. Table 4 is a composite summary of the interest expense for the existing and anticipated revenue bond programs necessary to complete the Ten Year Capital Improvement Programs. Base year populations/household data was derived from the 1990 U.S. Census. Future flows and system demands were calculated based on the population/employment projec- tions provided by the City of Coppoll Planning Department, the 1987 Comprehensive Plan by J. T. Dunkin and Associates, the Fnture Land Use Assumption Plan, and Master Thoroughfare Plan (with modified S.H. 121 interchanges). In addition, the Coppea Municipal Utility District No. 1 Wastewater Collection System Study by J. T. Millican and Associates, Inc., the Sanitary Sewer System Infiltration/Inflow Evahtation Survey by Geo- Marine, Inc., and the Proposed Vista Ridge Utility Service Plan by Carter & Burgess were utilized to determine capacities and future improvements within the MUD District wastewater system. ~tble 5 is a composite summary of the projected households, population, and employment for the entire City through the year 2020. qhble 6 is a breakdown, by NCTCOG District, of the population and employment projections for 1990, 2000, 2010, and 2020. ~Pable 7 is a breakdown, by NCTCOG District, of the household and employment projections for the same periods. City of Coppell, Texas 1991 Impact Fee Analysis 3 Water System Analysis Water usage within the City of Coppell has increased as dramatically as the population. The average daily demand has increased from 0.602 MGD in 1980 to 2.88 MGD in 1990. In 1990, the water system experienced a new record high peak day of 6.78 MG. Based on the population projections from the Planning Department and the Future Land Use Assumption Plan, it is estimated that peak day water demands will exceed 14 MGD by the year 2000 and ultimately approach 24 MGD at "build out". The potential drought peak day at buildout is 27.5 MGD. One of the most critical factors affecting w,~ter demands is weather. The amount of rainfall and summer heat can directly influence water usage by 15-20%. In order to assure a dependable water supply for the community, the system must be capable of meeting the expected peak hour demand during the peak day of a drought year. Adequate fire reserves must be maintained at all times. Summarized below are the past and projected water demands: Year Avg. Day Peak Day Peak # of MGD MG D Factor Connections 1980 0.602 1.479 2.46 1,075 1986 1.911 5.827 3.05 4,276 1987 1.753 5.859 3.34 4,500 1988 2.712 5.736 2.12 4,881 1989 2.412 5.356 2.22 5,200 1990 2.880 6.780 2.35 5,400 1991' 3,000 7.120 2.35 5,995 1995 * 4, 130 9.340 2.26 9,104 2000* 6.660 14.080 2.11 14,974 2001' 6,940 14.680 2.11 15,621 2005* 8.320 17.140 2.06 18,536 2010' 10,480 21.030 2.01 23,135 2015' 11,180 22.460 2.01 24,745 2020* 11.880 23.900 2.01 26,506 · Projected city of Coppell, Texas 1991 Impact Fee Analysis 4 Water System Capital Improvement Plan The recently adopted Master Water Plan contains a five, ten, twenty, and thirty year Capital Improvement Plan. For the purpose of this Impact Fee Analysis, only those projects identified within the five and ten years plans are included for analysis of recover- able costs. The projects include: Wrangler Drive 12" Waterline loop from the Old High School to Freeport Parkway. This line is needed to ensure adequate pressures and fire flows to the Park West Commerce Center. Only the oversize portion (12" from 8") of this project is included for analysis. 16" Waterline along Gateway Bird. from the Postal Facility on Royal Lane to the Santa Fe Development on Gateway. This segment is needed to improve fire flows to the southwestern industrial areas of the City. The estimated cost of the oversize portion (16" from 8") plus the city's portion (off site of existing developments) is included. Freeport Parkway 16" Waterline from I.H. 635 to Southwestern. Parkway Blvd. 16" Waterline from the New High SchOol west to the Villages at Cottonwood Creek. Rate of Flow Controller for the Village Parkway Pump Station: Construct a 20 MGD rate-of-flow controller to serve the Village Parkway site directly from DWU. Acquire Site for a second elevated storage tank. Analysis indicates that a second elevated storage tank will be required by late 2000. For the facility to be on-line by then, site acquisition should be undertaken during the mid 1990's. Additional 4-6 MG Ground Storage Tank for the Village Parkway Pump Station: Analysis indicates that the second tank will be required in order to maintain total ground storage at one average day's demand. Sandy Lake Road 24" Waterline - Phase I from MacArthur Blvd. to Denton 'Pap Road. South Belt Line Road 16" Waterline from Southwestern Blvd. to Lakeshore Drive. · Freeport Parkway 16" Waterline from Bethel Road to Highway 121. Sandy Lake Road 24" Waterline - Phase I1 from Denton Tap Road to Freeport Pkwy. and a 16" waterline from Freeport to Hwy. 121. Construct a 2.0 MG Elevated Storage ~xnk in the vicinity of Sandy Lake Road and Freeport Pkwy. Hwy. 121 Waterline - 12" from the West City Limits to Freeport Pkwy. and a 16" Waterline from Freeport Pkwy. to Parkway Blvd. · Parkway Blvd. 16" Waterline from Highway 121 to Coppell Road. City or Coppell, Texas 1991 Impact Fee Analysis 5 Denton Tap 16" Waterline from Southwestern Blvd. to Bethel Road. Install a fourth pump at the Village Parkway Pump Station. Coppell Road 16" Waterline from Bethel Road to Sandy Lake (Thweat Road). It should be noted that this analysis is based on the entire service area within the City limits since the City system and MUD District system area are operated by the City as one water system. No distinction has been made between the above listed improvements within the City of Coppell and the Coppell Municipal Utility District No. 1. Several projects within the MUD District boundary which are currently planned or in progress have not been included since no City funds are anticipated to be expended. These projects include: Denton ~Pap 16" Waterline from Parkway Blvd. to the HWY. 121 By-Pass. MacArthur BIrd. 12" Waterline from DeForest Road to the Hwy. 121 By-Pass. Water System Equivalent Service Units The legislation requires impact fees to be based on equivalent service units (ESU) to insure an equal distribution between residential and employment development. The standard residential water meter in the City of Coppell is a 5/8" x 3/4" meter. Therefore, impact fee calculations were based on a 5/8" x 3/4" meter = 1 ESU. All other meter sizes in the system were converted to ESU's using the factors published by the Texas Rural Water Association (Table 8). Table 9 is a summary of the number of meters in the water system with the corresponding ESU's. Allmetersincludingirrigationmetersandfiremeterswere included since these meters impose a significant potential demand on the water system. Table 10 summarizes the irrigation and fire service meters in the system. It should be noted that while irrigation meters only comprise 1.7% of the total number of system connections, they represent 7.07% of the total water system ESU's. Fire service meters represent an even wider variation, comprising 0.3% of the total system connections and 19.2% of the systems potential ESU demand. The calculation of current and the projection of future ESU's is dependent upon some ratio of household and employment numbers which would best represent future develop- ment in the City of Coppell. The ratios were calculated in the following manner: Employee Ratio Determined the total number of commercial/industrial meters in the system (in- cluding irrigation and fire service meters) and converted the number to equivalent service units. Total Business ESU's = 4,234.5. Divided the number of business equivalent service units within the system by the total number of employees (1991 estimate at 2,670). Calculated water system ratio (equivalent service units/employee) of 1.5860. City of Coppell, Texas 1991 Impact Fee Analysis 6 Household Ratio Calculated the total number of equivalent service units for the entire City (Table 9). Total ESU's = 10,237. Subtracted Business ESU's from Total ESU's to determine Household ESU's = 6,002.5. Divided Household ESU's by total number of households (1991 estimate at 6,708). Calculated ratio (equivalent service units/household) of 0.8948. Equivalent Service Unit Conversion Formula Using the calculated ratios, the formula for the existing equivalent service units is: Existing Water ESU's = 0.8948 x (# oflhmseholds) + 1.5860 x (# of Employees) It should be noted that the conversion formula is based on the current distribution of households and industrial/commercial development. These factors should continue to change as the development density increases. The household factor should gradually decrease to approximately 0.865 by 2000 and remain fairly constant thereafter. The residential household densities are projected to increase from 2.642 res./household to 2.80 res./household at buildout. An employee factor of 1.5860:1 ESU reflects the fact that the business sector of the community is just beginning to develop. These figures are somewhat distorted by the newly constructed and partially occupied commercial buildings. As commercial development matures, this ratio should drastically fall to the range of 0.50 ESU's/employee (2.0 Employ- ees/ ESU) as existing developments reach full staffing levels. If the employment growth occurs as projected in the commercial/office/light industrial sectors, the employee to ESU ratio will increase to the range of 2.0 to 2.25 employees/ESU and the ESU/employee factor will stabilize around 0.45 by the year 2000. Therefore, the following formula represents our opinion of the projected water system ESU's for the year 2001: Year 2001 Water ESU's = 0.865 x (# ofltouseholds) + 0.495 x (# of Employees) City of Coppell, Texas 1991 Impact Fee Analysis 7 Therefore, the projection for the Year 2001, is: Total Projected Households in 2001 = 11,077 Total Projected Employment in 2001 = 30,959 Year 2001 Water ESU's = 0.865 x (11,077) + 0.495 x (30,959) = 24,906 Net Gain in Water System ESU's (1991 to 2001) -- 24,906 - 10,237 = 14,669. Since the future ESU formula is sensitive to changes in the demographic distribution and population/employment densities, we recommend that these factors be re-examined on an annual basis and the ESU formula updated to insure that the impact fees adequately recapture the capital costs. Maximum Allowable Water System Impact Fee The maximum allowable impact fee is determined by dividing the total recoverable capital expenses by the projected growth in equivalent service units. Therefore, the calculated maximum water impact fee for the City of Coppell is: Recoverable Cost from Existing Facilities: $7,509,535 (Table 1) Recoverable Cost from Future Facilities: $6,778,211 (Table 2) Total Recoverable Costs: $14,287,746 Maximum Allowable Water Impact Fee = $14,287,746 / 14,669 = $974 per ESU City of Coppell, Texas 1991 Impact Fee Analysis Wastewater System Analysis Wastewater flows within the City of Coppell have out-paced the rapid population growth. The average daily ,low has increased from 1.070 MGD in 1986 to 2.273 MGD in 1990. Based on the population projections from the Planning Department and Future Land Use Assumptions, it is estimated that future peak day wastewater flows will exceed 13.5 MGD by the year 2000 and will approach 20 MGD by 2010. The ultimate peak day flow is projected to be 21.15 MGD at buildout. The corresponding two hour storm flow at buildout is projected at approximately 42.3 MGD. Wastewater flows are highly dependent upon rainfall and the associated infiltration and inflow. In 1988, the wastewater system flow averaged 53.4% of the average daily water demand. In 1990, a year with above average rainfall (and several record floods), the wastewater system flow averaged only 72.1% of the average daily water demand. This figure is extremely low considering the large amount of known Inflow and Infiltration which the system received. In the months of January to April 1990, wastewater ,'lows averaged 122% of the water demand. This indicates that infiltration and inflow are a significant problem in both the City and MUD District systems. Based on the available flow data, the peak hourly flow may approach a f~ctor of 5 times the average daily flow and 2.5 times the peak day flow. In order for the system to operate effectively, the wastewater collection system must be capable of handling these peak hourly flow events without overflow. Summarized below are the past and projected wastewater flows: Peak Year Avg. Day Day % of Water # of MGD MGD Demand Connections 1986 1.070 56.0 4,276 1987 1.256 71.6 4,500 1988 1.455 5.0 + 53.6 4,881 1989 2.090 5.0 + 83.4 ' 5,200 1990 2.080 5.0 + 72.1 5,400 1991' 2.265 6.800 75.5 5,689 1995' 3.221 8.700 78.0 8,712 2000* 5.395 13.488 81.0 14,492 2001 * 5.621 13.772 81.0 15,128 2010' 8.908 20.043 85.0 22,498 2015' 9.727 20.427 87.0 24,084 2020* 10.573 21.146 89.0 25,789 · Projected + Meter limits prevented accurate measurement City of Coppell, Texas 1991 Impact Fee Analysis 9 WASTEWATER SYSTEM CAPITAL IMPROVEMENT PLAN The wastewater system was analyzed to determine existing capacities and projected flows for the entire City (including areas within the MUD and Vista Ridge). Average and peak day demands were calculated based on the population projections. The demands were distributed within the districts to the appropriate interceptors. The process was repeated for the projected years 2001, 2010, and 2020 demands. A series of system improvements (12" and larger) were analyzed for each time period to size the ultimate facilities and determine the size required for the year 2001. Table 3 summarizes the capital projects required to handle the year 2001 flows. The future system improvements which were identified to meet the projected Year 2001 demands are as follows: Grapevine Creek Trunk Main: Construct a 30" interceptor parallel to the existing 12" trunk line along Grapevine Creek from MacArthur to Denton Tap Road (Branch I). 24" laterals should continue west along Grapevine Greek to South- western Boulevard (Branch II) and extend south along Belt Line to Airline (Branch Ill). Branch IV will extend a 12" line north from Denton Tap to Bethel School Road. · St. Louis/Southwestern Railroad Collector line: Construct a 12"/15"/18" line along the railroad from Royal Lane to the Grapevine Creek Trunk Main. North Bethel Road Collector: Construct a 15" collector line from Grapevine Creek to Coppell Road. South Belt Line Road Sewer: Extend the existing sewer collection system to serve the far southern portion of the City including the IH 635 frontage. · TRA Central Plant Expansinn: The City of Coppell is a member of the TRA system. Subsequently, the City is obligated for its share of improvements to the TRA system. The TRA Central Plant is currently undergoing a $153,892,000 expansion. Of this total, $9,446,000 is for retrofit to handle existing flows and $144,446,000 is for expansion to handle future development wastewater flows. The City of Coppell contributes approximately 2.2% of the total flow to the TRA Central Plant; therefore, the City's portion of this expansion is estimated to be approximately $3,177,812 (without interest expense). This portion of the Wastewater Impact Fee should be assessed and collected for all tracts, regardless of location. It should be noted that this analysis is based on the entire service area within the City limits operating as one integrated wastewater system. However, the lack of an interlocal agree- ment between the City and MUD district on impact fees has necessitated the separation of the systems for the purpose of fee calculation. We most caution that the collection of an impact fee in an area serviced by the MUD District inw~lves several legal issues which must be resolved. Negotiations on an interlocal agreement have been ongoing for almost a year with little progress. Until the issue of absorption of the MUD by the City is resolved or an City of Coppell, Texas 1991 Impact Fee Analysis 10 interlocal agreement between the parties regarding impact fees is reached, we recommend that wastewater impact fees exclude MUD related projects and only the portion related to the TRA project be assessed on property within tile MUD service area. Should such an agreement be reached, we recommend that the wastewater fees be re-evaluated to include proposed MUD projects and all fees assessed citywide. Wastewater System Equivalent Service Units The legislation requires that impact fees be based on equivalent service units (ESU) to insure an equal distribution between new residential and employment development. The standard residential water meter in the City of Coppell is a 5/8" x 3/4" meter. Therefore, for uniformity, impact fee calculations were based on a 5/8" x 3/4" meter = 1 ESU for water and wastewater. As with the water system, other meter sizes were converted to ESU's using the factors published by the Texas Rural Water Association (Table 8). For the wastewater system, irrigation meters and fire service meters were not included, since these meters do not generate any wastewater denland. In addition, approximately 179 house- holds receive water service but are not connected to the wastewater system at this time. The total ESU's for the wastewater system are summarized in 'Pable 11. The calculation of current and the projection of future ESU's is dependent upon some ratio of household and employment numbers which woald best represent future develop- ment in the City of Coppell. The ratios were calculated in the following manner: Employee Ratio Determined the total number of commercial/industrial meters (net of irrigation and fire service) in the City and converted the number to equivalent service units. · Divided the number of business equivalent service units within the City by the number of employees. Calculated ratio (equivalent service units/employee) of 0.5983. (Note: This is lower than the Water System formula since irrigation and fire service meters compose a significant portion of the employment ESU's.) Household Ratio Calculated the total number of equivalent service units for the entire City CPable 11). Total Wastewater ESU's = 7,338. · Subtracted Business ESU's from Total ESU's to determine Household ESU's = 5,740. City of Coppell, Texas 1991 Impact Fee Analysis 11 Divided Household ESU's by total number of households. Calculated ratio (equivalent service units/household) of 0.8557. (Approximately the same as the Water System.) Equivalent Service Unit Conversion Formula Using the calculated ratios, the formula for existing equivalent service units is: Existing ESU's = 0.8557 x (#of Households) + 0.5983 x (# of Employees) It should be noted that the conversion formula is based on the current distribution of households and industrial/commercial development. Presently, the total wastewater ESU's in the system account for only 71.68% of the total water system ESU's. This percentage should increase as development continues and is projected to approach 75.0% by 2000, 77.5% by 2010, and reach 80.0% by 2020. Additionally, all households are projected to be connected to the wastewater system by the early 2000's. With the percent- age of households on the wastewater system approaching 100%, the household factors in the water formula and wastewater formula should virtually equal each other. As such, the expected major difference in the two formulas will be in the employment factor. Combin- ing these factors, the anticipated future ESU formula for the Wastewater System is: Year 2001 Wastewater ESU's = 0.862 x (# of Ihmseholds) + 0.298 x (# of Employees) Therefore, the projection for the Yuar 2001, is: Total Projected Households in 2001 = 11,077 Total Projected Employment in 2001 -- 30,959 Year 2001 ESU's = 0.862 x (11,077) + 0.298 x (30,959) = 18,779 Net Gain in ESU's (1991 to 2001) = 18,779 - 7,338 = 11,441 * For the Entire Area. When the projected growth is allocated based on the City/MUD boundary and NCTCOG Districts, the distribution is approximately 4,774 new ESU's for the City System and 6,667 new ESU's for the MUD System. Since the future ESU formula is sensitive to changes in the demographic distribution and population/employment densities, we recommend that these factors be re-examined on an annual basis and the ESU formula updated to insure that the impact fees adequately recapture the capital costs. City of Coppell, Texas 1991 Impact Fee Analysis 12 Maximum Allowable Wastewater System Impact Fee The maximum allowable impact fee is determined by dividing the total recoverable capital expenses by the projected growth in equivalent service units. Due to the fact that there are two entities involved in the construction of new hcilities but only one for operation, separate fees have been calculated as follows: Both Systems: Recoverable Costs of Existing Facilities: $55,585 Recoverable Future Facilities (TRA): $3,177,812 Combined Component Assessable to both Systems: $3,233,397 Impact Fee Assessable to Both Systems: $3,233,397/11,441 = $282/ESU City System Only: Recoverable Future Facilities: $4,893,250 City Component: $5,358,203 / 4,774 = $1,025/ESU MUD System Only: No Separate Costs Therefore, the calculated maximum wastewater impact fee(s) within the City of Coppell are: City System: Maximum Wastewater Impact Fee = $282 + $1,025 = $1,307 / ESU MUD System: Maximum Wastewater Impact Fee = $282 / ESU City of Coppell, Texas 1991 Impact Fee Analysis 13 TABLE 5 PROJECTED CITYWIDE POPULATIONS YEAR HOUSEHOLDS POPULATION EMPLOYMENT 1990 6,404 16,881 2,100 1991 6,708 17,721 2,670 1992 7,026 18,603 3,395 1993 7,360 19,529 4,317 1994 7,709 20,500 5,489 1995 8,075 21,520 6,980 1996 8,458 22,591 8,875 1996 8,860 23,715 11,285 1997 9,281 24,896 14,350 1998 9,721 26,134 18,246 1999 10,183 27,435 23,200 2000 10,667 28,800 29,500 2001 11,077 29,964 30,959 2002 11,504 31,175 32,490 2003 11,946 32,435 34,096 2004 12,406 33,745 35,782 2005 12,884 35,109 37,551 2006 13,380 36,528 39,408 2007 13,895 38,004 41,357 2008 14,431 39,540 43,402 2009 14,986 41,138 45,548 2010 15,564 42,800 47,800 2011 15,715 43,294 48,016 2012 15,867 43,793 48,232 2013 16,021 44,298 48,450 2014 16,176 44,809 48,668 2015 16,334 45,325 48,888 2016 16,492 45,848 49,108 2017 16,652 46,377 49,330 2018 16,814 46,912 49,552 2019 16,978 47,453 49,776 2020 17,143 48,000 50,000 City of Coppell, Texas 1991 Impact Fee/h~alysis 20 TABLE 6 POPULATION AND EMPLOYMENT PROJECTIONS NCTCOG Residential Population Employment District 1990 2000 2010 2020 1990 2000 2010 2020 257 0 0 0 0 0 828 1,380 1,400 258 0 317 625 675 0 46 80 100 259 0 125 500 575 88 935 1,500 1,575 260 3,631 6,250 11,370 11,500 33 256 405 450 261 0 0 0 0 0 1,440 2,400 2,550 262 0 0 0 0 239 396 500 530 263 125 0 0 0 110 3,460 5,694 6,100 264 0 0 0 0 18 2,715 4,513 4,550 265 0 0 0 0 203 819 1,240 1,275 266 90 75 125 190 0 270 450 500 267 18 625 1,125 1,625 0 1,595 2,658 2,700 268 * 2,075 3,000 6,250 7,000 38 176 275 300 269 5,875 7,250 8,000 8,500 64 488 770 775 270 13 875 1,250 1,250 0 0 0 0 271 50 25 0 0 0 708 1,180 1,200 272 50 25 0 0 148 1,678 2,700 2,850 273 400 875 1,250 1,800 65 503 795 950 274 8 25 35 45 40 220 340 500 275 * 0 0 0 65 33 76 105 150 276 0 0 0 0 0 576 960 748 278 0 0 0 0 0 276 460 500 279 0 0 0 0 0 1,290 2,150 2,300 280 50 500 1,125 1,250 0 720 1,200 1,400 281 0 0 0 0 0 741 1,235 1,300 282 0 0 0 0 0 924 1,540 1,625 283 0 0 0 0 0 288 480 500 284 23 750 950 1,425 9 34 50 50 285 500 500 750 1,025 10 254 420 450 286 1,609 1,875 2,250 2,850 50 200 300 300 287 625 675 675 700 225 280 325 325 288 8 0 0 0 410 809 1,075 1,100 289 5 0 0 0 188 138 I10 150 290 503 750 875 1,I00 0 432 720 700 291 1,125 1,250 1,375 1,500 0 42 70 50 292 13 0 0 0 115 90 75 100 294 25 0 0 0 0 2,757 4,600 4,700 300 * 0 2,500 3,750 4,250 0 1,664 2,770 2,900 301 * 15 0 0 0 14 155 250 250 302 * 0 0 0 0 0 600 1,000 1,0130 304 * 30 213 75 75 0 225 370 397 305 * 0 0 0 0 0 320 530 550 314 15 320 445 600 0 60 1130 1130 559 0 0 0 0 0 16 25 50 Totals 16,881 28,800 42,800 48,000 2,101) 29,500 47,800 50,000 · Onlyportions of District within the City of Coppell are inchtried City of Coppell, Texas 1991 Impact Fee Analysis 21 TABLE 7 HOUSEHOLD AND EMPLOYMENT PROJECTIONS NCTCOG Residential I!ouseholds Employment District 1990 2000 2010 2020 1990 2000 2010 2020 257 0 0 0 0 0 828 1,380 1,400 258 0 117 227 241 0 46 80 100 259 0 46 182 205 88 935 1,500 1,575 260 1,377 2,315 4,135 4,107 33 256 405 450 261 0 0 0 0 0 1,440 2,400 2,550 262 0 0 0 0 239 396 500 530 263 47 0 0 0 110 3,460 5,694 6,100 264 0 0 0 0 18 2,715 4,513 4,550 265 0 0 0 0 203 819 1,240 1,275 266 34 28 45 68 0 270 450 500 267 7 231 409 580 0 1,595 2,658 2,700 268* 787 1,111 2,273 2,500 38 176 275 300 269 2,229 2,685 2,909 3,036 64 488 770 775 270 5 324 455 446 0 0 0 0 271 19 9 0 0 0 708 1,180 1,200 272 19 9 0 0 148 1,678 2,700 2,850 273 152 324 455 643 65 503 795 950 274 3 9 13 16 40 220 340 500 275 * 0 0 0 23 33 76 105 150 276 0 0 0 0 0 576 960 748 278 0 0 0 0 0 276 460 500 279 0 0 0 0 0 1,290 2,150 2,300 280 19 185 409 446 0 720 1,200 1,400 281 0 0 0 0 0 741 1,235 1,300 282 0 0 0 0 0 924 1,540 1,625 283 0 0 0 0 0 288 480 500 284 9 278 345 509 9 34 50 50 285 190 185 273 366 10 254 420 450 286 610 694 818 1,018 50 200 300 300 287 237 250 245 250 225 280 325 325 288 3 0 0 0 410 809 1,075 1,100 289 2 0 0 0 188 138 110 150 290 191 278 318 393 0 432 720 700 291 427 463 500 536 0 42 70 50 292 5 0 0 0 115 90 75 100 294 9 0 0 0 0 2,757 4,600 4,700 300* 0 926 1,364 1,518 0 1,664 2,770 2,900 301 * 6 0 0 0 14 155 250 250 302 * 0 0 0 0 0 600 1,000 1,000 304 * 11 79 27 27 0 225 370 397 305 * 0 0 0 0 0 320 530 550 314 6 119 162 214 0 60 100 100 559 0 0 0 0 0 16 75 50 Totals 6,404 10,667 15,564 17,143 2,100 29,500 47,800 50,000 Density 2.636 2.70 2.75 2.80 · Oneportions ofD~ffict wi~ the Ci~ L~ffts of Coppeg are ~c~ded. City of Coppell, Texas 1991 Impact Fee Analysis 22 TABLE 8 EQUIVALENT SERVICE UNIT CONVERSION FACTORS METER SIZE E.S.U. * 5/8 X 3/4" 1.00 1" 2.50 11/2" 5.00 2" 8.00 3" 16.00 4" 25.00 6" 62.50 8" 80.00 10" 115.00 * From 'l~xas Rural Water Association Recommended Meter Equivalents, based on AWWA Specifications and Design Criteria. City of Coppell, Texas 1991 Impact Fee Analysis 23 TABLE 9 WATER SYSTEM MAY 1991 TOTAL EQUIVALENT SERVICE UNITS METER # of TRWA EQUIV. SIZE METERS EQUIV. SERVICE UNITS 5/8" X 3/4" 5,665 1.00 5,665 1" 95 2.50 238 11/2" 40 5.00 200 2" 149 8.00 1,192 3" 5 16.00 80 4" 6 25.00 150 6" 9 62.50 563 8" 24 80.00 1,920 10" 2 115.00 230 TOTAL 5,995 10,237 City of Coppell, Texas 1991 Impact Fee Analysis 24 TABLE 10 IRRIGATION AND FIRE SERVICE METERS MAY 1991 TOTAL EQUIVALENT SERVICE UNITS METER # of TRWA EQU1V. SIZE METERS EQUIV. SERVICE UNITS 5/8" X 3/4" 9 1.00 9 1" 11 2.50 28 11/2" 12 5.00 60 2" 69 8.00 552 Y' 0 16.00 0 4" 3 25.00 75 6" 6 62.50 375 8" 17 80.00 1,360 10" 2 115.00 230 TOTAL 129 2,689 Note: Irrigation and Fire Service Meters account for 26.3% of the entire ESU's in the water system. These meters do not generate any wastewater demand. City of Coppell, Texas 1991 Impact Fee Analysis 25 TABLE 11 WASTEWATER SYSTEM MAY 1991 TOTAL EQUIVALENT SERVICE UNITS METER # of TRWA EQUIV. SIZE I~,PS EQUIV. SERVICE UNITS 5/8" X 3/4" 5,490 1.00 5,490 1" 76 2.50 190 11/2" 23 5.00 115 2" 80 8.00 640 3" 5 16.00 80 4" 3 25.00 75 6" 3 62.50 188 8" 7 80.00 560 10" 0 115.00 0 TOTAL 5,687 7,338 City of Coppell, Texas 1991 Impact Fee Analysis 26