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COS Lutheran-AG 910312HEARING . AGENDA REQUEST FORM ~TEM CAPTION: Request of Coppell Church of Christ to waive water impact fees in the amount of $0,600.00, and sewer impact fees in the amount of $2,110.00, for a new Church building being con- structed at 111 Samuel Boulevard. SUBMITTED BY: ~ i OTHER REP.: EVALUATION OF ITEM: DATE: Director At the Jan,,~r,y ZZ Council meeting, City Council discussed the issue of waiving development fees. It was the consensus of the Council to set a general policy of not waiving fees. In deliberation regarHinoo this issue, however, Council stated that it would consider, on a case-by-case basis any request for fee waiver initiated by a potential development in the City. The attached letter from the Coppell Church of Christ is the first of these requests. BUDGET AMT. AMT +/- BUDGET COMMENTS: AMT. ESTIMATED FINANCIAL REVIEW BY LEGAL REVIEW BY: AGENDA REQUEST FORM REVISED 1/91 II. CITY MANAGER'S COMMENTS/RECOMMENDATION FOR AGENDA ITEM Item # 16 City Council Agenda Dated: 3/12/91 Comments/Recommendation: We concur with the recommendation of the City Council Finance Committee and believe that waiver of these impact fees is not in the best interest of the City and is not consistent with heretofore established practices. In the past, only street assessment fees have been waived. Our opinion is that this is, in effect, a donation of City funds to a specific religious sect or church. If you determine that you want to do this, we recommend the City Council establish a policy which can be applied equally and uniformly. We would recommend denial of this request. Coppell Church of Christ 728 South Coppell Road Coppell, Texas 75019 February 5, 1991 City Council City of Coppell Coppell, Texas Dear Sirs: In a recent City Council meeting a report on waiving fees was considered. While establishing a general policy against waiving fees, it was suggested that the church submit a special request to the city council if we desired impact fees connected with our building project to be waived. We request that the council dismiss all Impact fees for both water and sewer. We make no request for waiving inspections fees, water tap fees, or street light fees. We offer the following arguments for your consideration. The Coppell Church of Christ is a tax exempt institution. Unlike inspection fees, water tap fees, and utility service, no service or commodity Is provided in exchange for the Impact fees. These fees are city taxes to provide for future development. This was explained by a member of the council in public meeting. Therefore, as a tax exempt church, we ask to be exempt from this tax assessment as we are from all city, state, county, and federal taxes. Precedent for dismissing assessments for churches was cited by a member of the city council during discussion in council meeting. It was stated that the city has not and does not collect street assessment against churches. The First Baptist Church was cited as an example. The impact assessment is a different assessment, but it demonstrates that the city recognizes the exceptional status of a church in regard to such assessments. The same reasons for dismissing street assessment argue for dismissing impact fees. The impact fees for the Thacker company have been waived. This sets precedent that impact fees can under some circumstances be waived. It seemed to be understood by: council members that some kind of Incentive would regularly be offered to such companies. Whether the Incentive Is in waiving Impact fees or In abating taxes, ordinary assessments are not collected. It seems that public services provided by a church in the community should be as great an incentive for waiving impact fees as attracting new business. Unlike precedent for waiving fees In commercial situations, waiving Impact fees for a church has a very limited precedent application. There are about ten churches in Coppell without church buildings. Assuming that all of them eventually construct a building In Coppell, waiving Impact fees for the Coppell Church of Christ cannot inlluence more than these ten situations. If other churches have the same Impact fees, the total precedent consideration could never total more than $87,000. It would be expected that this total waiving of fees would be scattered over several years. The city would be little influenced by waiving these fees; churches trying to build in a very expensive environment would be significantly Influenced by having to pay them. Precedent for waiving fees for commercial companies has unlimited Implications In both number of applications and in amount of money involved. Furthermore, Coppell Church of Chdst is not Impacting the system. The church has been in this community for 35 years, and 'for many years has been fled into the city utility system. No additional demands will be made on the city utility system. When the new building is completed, the old building will be moved away, and that service permanently discontinued. The church is simply changing the location of its utility service. Joe Fitch COPPELL PUBLIC WORKS MEMORANDUM DATE: To: From: Re: Water Impact Fe9 October 16, 1990 File/Church of Christ - Samuel Boulevard Public Works Staff Coppell Church of Christ Development Fees ($660/ESU) ~ 1 1/2" Domestic Meter = 5 ESU's 1 1/2" Irrigation Meter = 5 ESU's 'Total ESU's TM 10 10 ESU's @ $6.60 each $6,600.00 Wastewater Impact Fe~ 1 1/2" Domestic Meter = Total ESU's = 5 ESU's @ $422 each Water Tap Fee (Inspection~ 2 Taps @ $100 each ($422/ESU) 5 ESU's 5 $2,110.00- - Inspection Fee - (2% X Estimated Contract Cost) - Street and Signs $200.00~ ~~ To be determined prior to pre-construction meeting $292.60.~ Street Lig~ht Assessment for The following assessment is 1)eing made in accordance with' the City of Coppell. Subd'iv'ision Ordinance Appendix A Chapter VI, D. The following figures were supplied by T.P. ~& L. for estimating this assessment. ~ $292.60 per'light for'every 200 feet of roadway. You are being assessed for tO I light/. ft. of roadway, which totals $292.60 x I lights *Before lights a're.installed contact Public Works - Steve Goram, Director of Public Works or Per Birdsall, Street Foreman to have lighting plan approved. Councilman Weaver moved to approve authorizing Ginn & Case, Inc. to provide a design engineering, contract administration and construction review services for branches I and II of the Grapevine Creek Sewer Trunk Main. Councilman Nelson seconded the motion. The motion carried 4-3 with Councilmen Weaver, Cowman, Robertson and Nelson voting in favor of the motion and Mayor Pro Tem Smothermon and Councilmen Thomas and Morion voting against the motion. Item 15 Consideration of authorizing Ginn & Case, Inc., to provide professional services in the amount not to exceed $12,500.00 to re-evaluate the Water and Wastewater Impact Fees. Councilman Weaver moved to approve Ginn & Case, Inc. to provide professional services in the amount not to exceed $12,500 to re-evaluate the Water and Wastewater Impact Fees. Councilman Nelson seconded the motion. The motion carried 4-3 with Councilman Weaver, Cowman, Robertson and Nelson voting in favor of the motion and Mayor Pro Tem Smothermon and Councilmen Thomas and Morton voting against the motion. Item 16 Request of Coppell Church of Christ to waive water impact fees in the amount of $6,600.00 and sewer impact fees in the amount of $2,110.00 for a new Church building being constructed at 111 Samuel Boulevard. Joe Fitch of 732 S. Coppell Road, the applicant, made the presentation to the Council. Council pointed out that the $2,110 sewer impact fee is a fee which falls under the MUD (Municipal Utility Distric0; therefore, it would not be requested that this fee be paid at this time. It was pointed out, however, that these fees have already been paid to the City. Council pointed out the $6,600 is for a 1 1/2' line, with most other churches having a 1" line. The 1 * line charge is $3,300. There was some discussion about the church having the contractor change the line back to a 1' line. Mayor Pro Tern Smothermon stated that other churches which have come on line in the past have paid the impact for water and sewer services. Mayor Pro Tern Smothermon moved that the City of Coppell reimburse the Coppell Church of Christ the amount of $2,110. which it has already paid because the City does not at this point in time have a right to charge that fee, and that the City is in no way waiving the fight of the MUD if they so desire to assess that fee. He further moved that City Staff refund $3,300 of the water impact fee, providing that a way is found to reduce the size of service meter to 1 u rather than I 1/2'. Councilman Morton seconded the motion. The motion carried 6-1, with Mayor Pro Tem Smothermon and Councilmen Weaver, Thomas, Morton, Robertson and Nelson voting in favor of the motion and Councilman Cowman voting against the motion. EXE{~UTIVE SESSION (Closed to the Public) Item 5-ES A. Article 6252-17, Section 2(e) and Senate Concurrent Resolution Number 83, discussion with City Attorney concerning matter involving privileged communications between attorney and client. The Council convened into Executive Session at 8:47 p.m. on Tuesday, March 12, 1991 as allowed under the above stated articles. Mayor Wolfe adjourned the Executive Session and opened the Regular Session at 9:06 p.m. REGIJLAR SESSION (Open to the Public) Item 17 PUBLIC HEARING: To review the Texas Waste Management Franchise Agreement and other matters affecting service. Mickey Flood, President of Texas Waste Management and Vice President of Waste Management, North America, made a presentation to the Council. Texas Waste Management is proposing several service modifications which have been done in response to the survey that was done and also to the Recycling Committee. They have offered three different levels of