Loading...
6TilE CITY OF PLEASANT LIVING CITY OF SOUTH MIAMI OFFICE OF THE CITY MANAGER INTER-OFFICE MEMORANDUM To: The Honorable Mayor & Members of the City Commission FROM: Steven Alexander, City Manager Thru: Christopher Brimo AICP, Planning Director DATE: May 28,2014 Agenda Item No.:6 SUBJECT: An Ordinance of the City of South Miami, Florida, amending Section 7-3 of the Code of Ordinances and establishing a parks and recreational impact fee, and creating Section 7-3.2 establishing regulations for the collection of such impact fees. BACKGROUND: In April 2013, the City Commission approved a contract with Tischler Bise Incorporated, pursuant to a request for proposal [RFP #PZ 2013-03-01], to conduct an Impact Fee Study and Transportation Concurrency Review; Resolution No. 77-13-13895. The study would look at three areas for possible fee assessment; transportation, parks & recreation, and public safety. The City Administration requested the study of impact fee feasibility as a possible method of shifting the cost of infrastructure from new development from the existing residents, who pay for it now, to the developer. In essence it makes new development pay its own way. Therefore, adoption of impact fees reduces the financial pressure on local residents to raise taxes and fees. With new development paying for its fair share of capacity-enhancing infrastructure needs, any current funds that have been designated to pay for those projects can potentially be shifted to the more immediate needs of existing residents, such as for facility maintenance and rehabilitation. The City currently does not collect impact fees, and the purpose of the study was review the City'S current services and facilities and determine whether impact fees could be assessed for new development. The process included an appropriate impact fee determination methodology and fee assessment schedules necessary for the City to establish and defend any proposed fees. Any methodology for establishing impact fees would need to meet the "rational nexus" test, as well as be in compliance with Florida Statute 163.31801 the Florida Impact Fee Act, to guarantee fairness in assessing these fees. Adoption of impact fees reduces pressure on local residents to raise taxes and fees. And with new development paying for its own capacity-enhancing infrastructure needs, any current funds that have been deSignated to pay for those projects can be shifted to the more Parks & Recreation Impact Fee Ordinance May 28,2014 Page 2 of2 immediate needs of existing residents, such as for facility maintenance and rehabilitation. As a result of the study the consultants concluded that it would only be feasible at this time for the City to assess an impact fee for parks and recreational facilities. It was determined that the imposition of a transportation impact fee would not be a feasible option for the City, partly because there are limited opportunities for wholesale roadway corridor projects that would improve traffic flows, but also the capital costs of improving roadway levels of service for existing vehicular traffic. It was suggested that other options be pursued that place less emphasis on vehicle utilization, such as the creation of a multimodal transportation district (MMTD). By establishing a MMTD and having a long-term plan for the development of multimodal infrastructure, the City may be able to collect mobility fees to pay for that infrastructure. The City is currently undertaking the South Miami Intermodal Transportation Study (SMITP). The results of this study will be used in part, to address the feasibility of assessing a mobility fee. RECOMMENDATION: Staff recommends that the Commission approve the adoption of the parks and recreation impact fee schedule pursuant to the recommendations of the Tischler Bise impact fee study. The impact fee study is incorporated in the proposed Ordinance by reference. ATTACHMENTS: Proposed Ordinance Parks & Recreation Facilities Impact Fee Study; Dated April 1, 2014 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 ORDINANCE NO. _______ _ An Ordinance amending Section 7-3 of the Code of Ordinances, including the establishment of a parks and recreational impact fee category, and creating Section 7- 3.2 establishing regulations for the collection of such impact fees. WHEREAS, new development and redevelopment in the City can add to and help maintain the quality of life under a balanced growth management program; and WHEREAS, effective growth management is promoted when adequate public facilities are available to serve new development concurrent with the impacts of that development; and WHEREAS, the City Commission requested the preparation of an impact fee report, based upon the most recent and localized data in support of the impact fee Ordinance to be completed and submitted to the City; and WHEREAS, the report prepared by TischlerBise, Fiscal, Economic and Planning Consultants, dated April 1, 2014 recommended the implementation of a parks facilities impact fee for residential development; and WHEREAS, as set forth in the impact fee report, the collection of this impact fee will fund parks and recreation capital improvements required to serve growth, and the revenue generated from impact fees will benefit new development by maintaining current citywide levels of service;, thereby promoting the general welfare of all City residents and constitutes a public purpose; and WHEREAS, ad valorem tax revenue and other revenues will not be sufficient to provide the additional capital improvements for parks and recreation facilities, which are necessary to accommodate new development. NOW, THEREFORE BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA AS FOLLOWS: Section 1. The impact fee report prepared by Tischler Bise provides an adequate and lawful basis for the adoption and imposition of parks facilities impact fees in accordance with this Ordinance and is incorporated herein by reference. Section 2. follows: Section 7-3 of the City Code of ordinances is hereby amended to read as Sec. 7-3. Comprehensive Ffee Schedule. There is hereby established a comprehensive fee schedule setting forth fees for the The fees for the following items subjects shall be as set forth in the City's ordinance regulating these subjects, or as set forth in the City's comprehensive fees and fines ordinance (a copy of the latter shall be kept in the office of the City Clerk and which may U:\My Documents\resolutions\Ordinance Impact Fee CArev3.doc 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 be accessed on the City's web page which is currently at www.southmiamifl.gov), whichever is the most current: (1) Building permit fees. (2) Plumbing permit fees. (3) Mechanical permit fees. (4) Electrical permit fees. (5) Land use application fees. (6) Certificates of use, completion or occupancy fees. (7) Public works/utility fees. (8) Other fees. (9) Occupational license fees. (10) Tree removal permit fees. Qll Development impact fees. as set forth in the in the schedule entitled "Comprehensive Fee Schedule," attached to Ordinance No. 1454 and adopted by reference hereof, [and any amendments thereto]. (Ord. No. 1454, § 4, 9 690; Orc/. No. 1501, § 1, 3 3 92; Orc/. No. 1512, § 1, 9 1592; Ord. No. 1575, §§ 1 3,221 95; Ord. No. 157&, § 1, 4495; Orc/. No. 1594, §§ 1 3, 11 795; Ord. ,'\,'0. 1692, § 1, 11299; Orc/. ,".'0. 1730, § 1, 11 7 (0) EC/itor's Rote Section 1 of Ordinance No. 28 00 1730, adopted November 7, 2000, amended Ordinance No. 14 90 1454 by adding a new permit fee refund schedule. At the city's request, such schedule has not been set out herein, but is on file in the office of the city clerk. Section 3. Chapter 7 of the City Code of Ordinances is amended to add Section 7-3.2 which shall read as follows: Sec. 7-3.2. Parks Impact Fees. A. Established. As a condition of the issuance of a building permit for new development, the person, firm or corporation who or which has applied for the building permit for residential construction shall pay to the City, the parks impact fees as set forth in the provisions of this Ordinance. !!:.. Definitions. For the purpose of this Ordinance, certain terms and words are defined. Additionally and where applicable, words used in the present tense shall include the future; the singular number shall include the plural, and the plural the singular: Building permit shall have the same meaning as provided in the Florida Building Code and shall include a permit issued by the building official for the construction, U:\My Documents\resolutions\Ordinance Impact Fee CArev3.doc 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 enlargement, alteration, modification, repair, movement, demolition, or change in the occupancy of a building or structure. Capital improvements shall mean physical assets constructed or purchased to provide, improve or replace a public facility and which are large scale, high in cost, and have an estimated useful life in excess of one year. The cost of a capital improvement is generally nonrecurring and may require multiyear financing. Feepayer shall mean any person, firm, or corporation intending to commence new development and, during the life of the development, applies for the issuance of a building permit. Impact fee study shall mean the Parks and Recreation Facilities Impact Fee Study on the methodology used to establish Parks and Recreation Facilities Impact fees for the City of South Miami prepared by Tischler Bise, dated April 1, 2014, which establishes the basis for the fair share of capital facilities costs attributable to new development based upon standard and appropriate methodologies, and a copy of which is attached to and incorporated by reference into this Ordinance but which is excluded from the codified version of this ordinance. A copy shall be on file with the City Clerk. New development shall mean the carrying out of any residential building activity or the making of any material change in the use or appearance of any building or structure or land, which results in an additional impact or demand on parks facilities. ~ Imposition of fees. There is assessed, charged, imposed, and enacted parks impact fees on all new residential development occurring within the municipal boundaries of the City of South Miami. These fees will be assessed, charged, or imposed in accordance with the fee schedule provided below and as may be amended from time to time by the City'S Fee Schedule ordinance based upon the most recent and localized data. The effective date of any increase in fees shall take effect at least 90 days following publication and enactment of the amended Fee Schedule. Parks and Recreation Development Fee Schedule per Housing Unit Persons Number l2Jl!. Q[ Housing Proposed Unit Tvpe Bedrooms Unit VI Fee Multifamily Unit All Sizes 1.34 $1,366 Single Unit 0-3 2.54 $2,590 Single Unit 4+ 3.45 $3,519 Sinqle Unit .• Avq 2.80 $.2,865 U:\My Documents\resolutions\Ordinance Impact Fce CArev3.doc 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 fl] PPHU Recommended multipliers are scaled to make the average value by type of housing for FL PUMA 4014 match the average value for the City derived from 2011 American Community Survey data, with persons adjusted to the Citywide average of2.80 persons per single family unit. D. Payment. The impact fees shall be paid to the City by the Feepayer at the time of and as the condition precedent to the issuance of the building permit. E. Disposition of fees. All fees collected by virtue of this Ordinance and any interest earned on them, other than the allowable administrative cost for collection, shall be deposited into a special and separate trust account to be designated, "parks and recreation facilities impact fees account." Funds from this account may be expended for land acquisition for parks; for maintaining (not including routine maintenance), furnishing, equipping, repairing, remodeling, or enlarging of both existing and future facilities; for construction of new parks facilities; for any architectural, engineering, legal and other professional fees and expenses related to any such improvements; and for any administrative costs not incurred by the fee collection process. Funds from this account may also be expended for retirement of loans and/or bonds that may be, or have been, issued to finance the capital improvements herein contemplated. .E:.. Reporting, Collections, and Audits. The City of South Miami's Finance Director shall keep an accurate accounting and reporting of impact fee collections and expenditures within the City. The City shall retain up to 5% of the impact fees collected to offset the administrative costs of collecting the impact fees(which shall be limited to the actual collection costs incurred) and the cost of administering the provisions of this Ordinance. Audits of the City's financial statements which are performed by a certified public accountant pursuant to Section 218.39, F.S, as amended, that are submitted to the Auditor General must include an affidavit signed by the Finance Director stating that the City has complied with Section 163.31801, F.S.( "Florida Impact Fee Act.") as amended. G. Refunds, Credits, and Reimbursements. ill Upon application of the property owner, the City shall refund that portion of any impact fee which has been on deposit for over six (6) years and which is unexpended and uncommitted, except as described in subsection (3) of this section. The refund shall be made to the then-current owner or owners o[1ots or units of the development project or projects. ill If, at the request of the City, a Feepayer constructs a parks and recreation facilities component or dedicates land for future facilities and if the constructed facility or the dedicated land would otherwise have been paid for by impact fees, the City shall reimburse the Feepayer for Parks and Recreation Facilities impact fees previously paid in accordance with the following conditions, unless the Feepayer and the City agree to other conditions: !ill The reimbursement shall be limited to a payback period of five (5) years; ihl The City shall not reimburse interest on the outstanding balance; and. .c.0 The Feepayer shall be required to provide sufficient documentation acceptable to the City, of the actual costs incurred for the facility improvement. U:\My Documents\resolutions\Ordinance Impact Fee CArev3.doc 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 ill If any impact fees charged to a Feepayer are unexpended or uncommitted during the sixth year following its collection, the fees are exempt from subsection (1) of this section if the City Commission makes the following findings: ill) A need for the capital improvement still exists; ihl The fees will be used for an identified purpose within two (2) years of the finding of need; and if) The purpose for which the fees will be used is substantially similar to the purpose for which the fees were collected. Section 4. Codification. The provisions of this ordinance shall become and be made part of the Code of Ordinances of the City of South Miami as amended; that the sections of this ordinance may be renumbered or re-Iettered to accomplish such intention; and that the word "ordinance" may be changed to "section" or other appropriate word. Section 5. Severability. If any section, clause, sentence, or phrase of this ordinance is for any reason held invalid or unconstitutional by a court of competent jurisdiction, this holding shall not affect the validity of the remaining portions of this ordinance. Section 6. Ordinances in Conflict. All ordinances or parts of ordinances and all sections and parts of sections of ordinances in direct conflict herewith are hereby repealed. However, it is not the intent of this section to repeal entire ordinances, or parts of ordinances, that give the appearance of being in conflict when the two ordinances can be harmonized or when only a portion of the ordinance in conflict needs to be repealed to harmonize the ordinances. If the ordinance in conflict can be harmonized by amending its terms, it is hereby amended to harmonize the two ordinances. Therefore, only that portion that needs to be repealed to harmonize the two ordinances shall be repealed. Section 7. Effective Date. This ordinance shall become effective 90 days following its publication. PASSED AND ENACTED this __ day of _____ , 2014. ATTEST: CITY CLERK 1st Reading 2nd Reading READ AND APPROVED AS TO FORM: LANGUAGE, LEGALITY AND EXECUTION THEREOF U:\My Documents\resolutions\Ordinance Impact Fee CArev3.doc APPROVED: MAYOR COMMISSION VOTE: Mayor Stoddard: Vice Mayor Harris: 5 1 2 3 4 5 6 CITY ATTORNEY U:\My Documents\resolutions\Ordinance Impact Fee CArev3.doc Commissioner Edmond: Commissioner Liebman: Commissioner Welsh: 6 Advisory Legal Opinion -Municipalities, use of impact fees Number: AGO 2010-46 Date: November 5,2010 Florida Attorney General Advisory Legal Opinion Subject: Municipalities, use of impact fees Ms. Jerri Blair City Attorney City of Wildwood Post Office Box 130 Tavares, Florida 32778-0130 Page 1 of7 RE: MUNICIPALITIES -FEES IMPACT FEES -SOLID WASTE COLLECTION UTILITIES -use of impact fees for other purposes. s. 163.31801, Fla. Stat. Dear Ms. Blair: On behalf of the City Commission of the City of Wildwood, you have been asked to request my opinion on substantially the following questions: 1. Whether impact fees collected by the City of Wildwood for purposes of expanding a particular utility service such as refuse/garbage collection may be used for another utility service which generally benefits the subject property which paid the impact fees? 2. Whether the City of Wildwood must return impact fees which have been collected for a service which will be privatized to the owner of the property for which the fees were collected or to the person from whom the impact fees were paid? In sum: 1. Impact fees collected by the City of Wildwood for the purpose of refuse collection must be used for that purpose and for other solid waste-related purposes. Other utility services unrelated to solid waste collection may not be funded with surplus impact fees collected for refuse/garbage collection. 2. In the absence of any direction from the Legislature as to the return of validly collected impact fees for refuse collection, this office would suggest that the city utilize these fees for solid http://www.myfloridalegal.com/ago.nsf/printview/ A8EOF8C5AAA4D7 AD852577D20072... 5/28/2014 Advisory Legal Opinion -Municipalities, use of impact fees Page 2 of7 waste-related purposes as considered in St. Lucie County v. City of Fort Pierce. According to information you have supplied to this office, the City of Wildwood has, for several years, levied and collected an impact fee for refuse collection as well as other utilities and services. The impact fees collected by the city for refuse collection were imposed and collected pursuant to section 163.31801, Florida Statutes. The city has now determined that lower rates can be maintained through contracting and privatizing the refuse collection portion of its utility service and has entered into a contract for this service with a private company. However, the city currently holds $165,981.00 that was collected as refuse impact fees. Since the city is privatizing refuse services, you state that these fees will not be used for the expansion of refuse collection services. Therefore, you have asked whether these surplus fees may be used for any other utility service or must be returned. Question One Section 163.31801, Florida Statutes, is the "Florida Impact Fee Act."[1] The intent of the Legislature in adopting this statute is provided in subsection (2) thereof: "The Legislature finds that impact fees are an important source of revenue for a local government to use in funding the infrastructure necessitated by new growth. The Legislature further finds that impact fees are an outgrowth of the home rule power of a local government to provide certain services within its jurisdiction. Due to the growth of impact fee collections and local governments' reliance on impact fees, it is the intent of the Legislature to ensure that, when a county or municipality adopts an impact fee by ordinance or a special district adopts an impact fee by resolution, the governing authority complies with this section." Subsection (3) of the act requires that any impact fee adopted by municipal ordinance must, at a minimum: "(a) Require that the calculation of the impact fee be based on the most recent and localized data. (b) Provide for accounting and reporting of impact fee collections and expenditures. If a local governmental entity imposes an impact fee to address its infrastructure needs, the entity shall account for the revenues and expenditures of such impact fee in a separate accounting fund. (c) Limit administrative charges for the collection of impact fees to actual costs. (d) Require that notice be provided no less than 90 days before the effective date of an ordinance or resolution imposing a new or increased impact fee. A county or municipality is not required to http://www.myfloridalegal.com/ago.nsf/printview/A8EOF8C 5AAA4D7AD852577D200n... 5/28/2014 Advisory Legal Opinion -Municipalities, use of impact fees Page 3 of7 wait 90 days to decrease, suspend, or eliminate an impact fee." Nothing in section 163.31801, Florida statutes, addresses the redirection of impact fees collected under that statute to other purposes. With regard to the imposition of a viable impact fee, assessment and collection of such a fee must be based upon the pro rata share of the reasonably anticipated costs of capital expansion required to provide a service to a user. [2] The nature of such fees was expressed by the Supreme Court of Florida in Contractors and Bui~ders Association o£ Pine~~as County v. City o£ Dunedin,[3] as follows: "The avowed purpose of the ordinance in the present case is to raise money in order to expand the water and sewerage systems, so as to meet the increased demand which additional connections to the system create. The municipality seeks to shift to the user expenses incurred on his account. ."[4] This office has also concluded that impact fees are in the nature of user charges. [5] In Attorney General Opinion 76-137, this office commented upon the imposition of an impact fee for the construction of municipal water and sewer facilities, stating, "there is little doubt that the fee imposed (by city ordinance) is not a tax or a special assessment but is a valid imposition of an 'impact fee' or user charge for the privilege of connecting to the city's water and sewer system . " In City o£ Dunedin, the Court delineated the test to be applied in determining the validity of a locally imposed "impact fee." Such an impact fee must satisfy the following test: (1) new development must require that the present system of public facilities be expanded; (2) the fees imposed on users must be no more than what the local governmental unit would incur in accommodating the new users of the system; and (3) the fees must be expressly earmarked and spent for the purposes for which they were charged. Thus, a viable impact fee, levied and collected for an express purpose, must be spent for that purpose. In a case involving impact fees for refuse disposal services, St. Lucie County v. City o£ Fort Pierce,[6] the county brought an action against the city on the parties' waste disposal contract. For a number of years, pursuant to an inter local agreement, the county had granted the city the right to dispose of its garbage and trash at one of the county's landfills. The city paid tipping fees to the county for the use of the landfill. The fees increased over the course of the agreement and, after a final rate increase, the parties became involved in a dispute concerning the city's use of the landfill. After the fee increase, the city began withholding a http://www.myfloridalegal.com/ago.nsf/printview/A8EOF8C5AAA4D7AD852577D20072... 5/28/2014 Advisory Legal Opinion -Municipalities, use of impact fees Page 4 of7 portion of its payment to the county complaining that the county was using part of the fees it was collecting to close one of the county's other landfills. The city argued that it never used the landfill being closed and was not responsible for this portion of the assessed fee. The city then began delivering its waste to another landfill outside the county. St. Lucie County sued for declaratory and injunctive relief concerning the city's right to dispose of its waste outside of the county. The City of Fort Pierce counterclaimed for damages for unjust enrichment. The city based its claim on the theory that it should not be required to pay for the closure of a refuse disposal site never used by the city. The trial court ruled in favor of the city on its unjust enrichment claim and awarded damages to the city. The damage award under the unjust enrichment theory was the subject of the appeal to the Fourth District Court of Appeal. The county raised two points in support of its appeal: 1) that the waste disposal fee was a valid fee and that its partial use for other county solid waste purposes had no effect on the validity of the fee, and 2) that the use of these fees for closure of the landfill was not unjust enrichment. As the court noted, "[s]imply stated it's the county's position that if these fees are valid user fees and they are being used for related waste disposal purposes then there can be no unjust enrichment." The Fourth District Court of Appeal agreed with the county and reversed the lower court decision. As the court stated "[w]e find that the fees are valid user fees and that the fees are being expended for a solid waste-related purpose. "[7] The court's analysis relied on City of New Smyrna Beach v. Board of Trustees of Interna~ Improvement Trust FUnd. [8] In that case, the court dealt with a challenge to the expenditures made by the City of New Smyrna after the collection of a beach use fee. The board's position was that collection of the beach fee only authorized expenditures for "beach maintenance." The court rejected this argument and stated that: "If the term 'beach maintenance' were to be construed as limited solely to physical upkeep of the beach, then the municipalities would have to shoulder the economic burden of the increased costs for law enforcement, life guards, emergency service and liability insurance. "[9] The court upheld the city's expenditures, and held that the fees could be used for traffic management, parking, law enforcement, liability insurance, sanitation, lifeguards and other staff purposes, "so long as such expenses were beach related. "[10] Relying on the holding in City of New Smyrna Beach, the court in St. Lucie County agreed with the county that "the use of the fees to close down the Airport Landfill was a solid waste related purpose and therefore a valid expenditure from the fees collected."[11] Similarly, the City of Wildwood has imposed an impact fee for refuse collection. The City imposed this impact fee pursuant to section http://www.myfioridalegal.com/ago.nsf/printview/A8EOF8C5 AAA4D7AD852577D200n... 5/28/2014 Advisory Legal Opinion -Municipalities, use of impact fees Page 5 of7 163.31801, Florida Statutes. As a valid impact fee, the fees imposed must be no more than what the city would incur in accommodating the new users of the system and these fees must be expressly earmarked and spent for the purposes for which they were charged and collected. As Florida courts and this office have recognized, an impact fee, levied and collected for an express purpose, must be spent for that purpose. Thus, the City of Wildwood refuse collection impact fee may be spent only for that purpose and related purposes and may not be directed to another unrelated utility service. You have cited section 180.07, Florida Statutes, which relates to public utilities and provides for the combination of plants or systems and the pledge of revenues raised pursuant to this chapter for the construction and operation of these plants and systems. You note that subsection (2) of this statute provides: "Whenever any municipality shall decide to avail itself of the provisions of this chapter for the extension or improvement of any existing utility plant or system, any then-existing plant or system may be included as a part of a whole plant or system and any two or more utilities may be included in one project hereunder. The revenues of all or any part of any existing plants or systems or any plants or systems constructed hereunder may be pledged to secure moneys advanced for the construction or improvement of any utility plant or system or any part thereof or any combination thereof." (e.s.) According to your letter, the City of Wildwood relied on section 163.31801, Florida Statutes, to impose and collect an impact fee for refuse collection. Further, the city is not considering the extension or improvement of an existing utility plant, but is contracting with a private solid waste provider for services. The clear language of section 180.07(2), Florida Statutes, states that it applies to projects undertaken pursuant to the provisions of Chapter 180. Thus, it does not appear that section 180.07(2), Florida Statutes, provides authority for the City of Wildwood to use impact fees which were levied and collected for that purpose to support other utility services. Question Two Your second question relates to the disposition of impact fees which have been levied and collected, but are no longer needed for capital expansion to provide refuse collection services. No statutory or other authority of which I am aware or to which you have brought my attention would authorize the City of Wildwood to return or refund validly imposed and collect impact fees. [12] In the absence of any direction in the law for such an action, this office cannot suggest what may appear to be an equitable resolution to your http://www.myfioridalegal.com/ago.nsf/printview/A8EOF8C5AAA4D7AD852577D20072... 5/28/2014 Advisory Legal Opinion -Municipalities, use of impact fees Page 60f7 question. [13] In the absence of any such legislative authority for a refund, this office would suggest that the city utilize these fees for solid waste-related purposes as considered in St. Lucie County v. City of Fort Pierce, [14] cited and discussed above, which would represent a valid expenditure of the fees collected. Sincerely, Bill McCollum Attorney General BM/tgh [1] See s. 163.31801(1), Fla. Stat. [2] See Contractors and Builders Association of Pinellas County v. City of Dunedin, 329 So. 2d 314 (Fla. 1976), appeal after remand, 358 So. 2d 846 (Fla. 2d DCA 1978), cert. denied, 444 U.S. 867 (1979). See also Home Builders and Contractors Association of Palm Beach County, Inc. v. Board of County Commissioners of Palm Beach County, 446 So. 2d 140 (Fla. 4th DCA 1983), petition for review denied, 451 So. 2d 848 (Fla. 1984), appeal dismissed, 105 S.Ct. 376 (1984) . [3] 329 So. 2d 314 (Fla. 1976). [4] 329 So. 2d at 318. Cf. Loxahatchee River Environmental Control District v. School Board of Palm Beach County, 496 So. 2d 930 (Fla. 4th DCA 1986), approved, 515 So. 2d 217 (Fla. 1987), in which the court determined that certain service availability standby charges were within the definition of impact or service availability fees established by the State Department of Education. [5] See Cps. Att'y Gen. Fla. 76-137 (1976), 82-09 (1982), and 85-101 (1985); Inf. Cp. to Nieman, dated Oct. 4, 2010. [6] 676 So. 2d 35 (Fla. 4th DCA 1996) . [7] Id. at 37. [8] 543 So. 2d 824 (Fla. 5th DCA 1989) . [9] Id. at 829. [10] Id. See also Jacksonville Port Authority v. Alamo Rent-A-Car, 600 So. 2d 1159 (Fla. 1st DCA 1992), review denied, 613 So. 2d 1 (Fla. 1992). http://www.myfloridaiegal.com/ago.nsf/printview/ A8EOF8C5AAA4 D7 AD852577D200n... 5/28/20] 4 Advisory Legal Opinion -Municipalities, use of impact fees Page 7 of7 [11] Supra n.6 at 37. [12] Cf. State ex re~. Victor Chemica~ Works v. Gay, 74 So. 2d 560 (Fla. 1954), holding that unless there was some statutory authority providing for refunds, money could not be recovered once it had been paid into the state treasury and that refunds are a matter of legislative grace; St. Joe Paper Co. v. Department of Revenue, 460 So. 2d 399 at 404 (Fla. 1st DCA 1984), n[a]t common law, there was no right to a refund from the sovereign; as a result, in the absence of a statute authorizing a refund, a refund of taxes could not be allowed unless the taxpayer could demonstrate that the tax was paid involuntarily or compulsively[;]n Cp. Att'y Gen. Fla. 75-293 (1975). [13] Cf. Chaffee v. Miami Transfer Company, Inc., 288 So. 2d 209 (Fla. 1974), and Cps. Att'y Gen. Fla. 06-26 (2006) and 81-10 (1981), for the proposition that the Attorney General is without authority to qualify or read into a statute an interpretation or to define words in a statute in a manner which would result in a construction that seems more equitable under circumstances presented by a particular factual situation; such construction when the language of a statute is clear would, in effect, be an act of legislation which is exclusively the prerogative of the Legislature. [14] 676 So. 2d 35 (Fla. 4th DCA 1996) . http://www.myfioridalegal.com/ago.nsf/printview/A8EOF8C5AAA4D7 AD852577D20072... 5/28/2014 Parks and Recreation Facilities Impact Fee Study City of South Miami, Florida Submitted to: City of South Miami Florida April 1,2014 Prepared by: III! I Economic & 4701 Sangamore Road SuiteS240 Bethesda, Maryland 20816 800.424.4318 www.tischlerbise.com lischlerBise TischlerBise 4701 Sangamore Road Suite 5240 Bethesda, Maryland 20816 800.424.4318 www.tischlerbise.com 1ischlerBise Impact Fee Study City of South Miami, Florida T ABLE OF CONTENTS IMPACT FEE STUDY City of South Miami, Florida Impact Fee Study City of South Miami, Florida Executive Summary ....••••.••••.....•••.••...•••••..••.....•••.••••...••..••...••••••...•••.•••••.•.•••......••••.••••••...•.•••.•••...•...••• 1 Introduction to Impact Fees .•••••••....••.••••••.••••.••..••••....•....••••••.•..•...•.••••...•.•..•.•••••...•.......•.••..••.......•••••• 2 General Legal Framework ......................................................................................................................... 2 Unique Requirements of the Florida Impact Fee Act ............................................................................... 3 Methodologies and Credits ....................................................................................................................... 4 Cost for Impact Fee Study ......................................................................................................................... 6 Maximum Allowable Impact Fees By Type of Land Use ........................................................................... 6 Parks and Recreation Facilities Impact Fees ........................................................................................ 7 Methodology ............................................................................................................................................. 7 Parks and Recreation Facilities Improvements and Costs ........................................................................ 8 Parks and Recreation Capital Improvements Needed to Serve Growth ................................................. 11 Cost for Impact Fee Study ....................................................................................................................... 13 Credit For Future Principal Payments ..................................................................................................... 14 Parks and Recreation Input Variables and Impact Fees .......................................................................... 15 Cash Flow Projections ............................................................................................................................. 16 Implementation and Administration ................................................................................................. 17 Credits and Reimbursements .................................................................................................................. 17 Collection and Expenditure Zones .......................................................................................................... 17 Appendix A -land Use Assumptions ................................................................................................ 18 Introduction ............................................................................................................................................ 18 Residential Development ........................................................................................................................ 19 Appendix B -Florida Statute: 163.31801 .......................................................................................... 24 Title XI 163.31801 -Impact fees; short title; intent; definitions; ordinances levying impact fees ......... 24 lischler8ise , 1 hie 4701 SANGAMORE ROAD I SUITE S240 ! BETHESDA I MD 20816 T: 800.424.4318 I F: 301.320.4860 Fiscal, Econornic & Planning Consultants 300 UNO LAGO DRIVE I SUITE 405 I NORTH PALM BEACH! FL 33408 T: 800.424.4318 I F: 301.320.4860 WWW.TISCHLERBISE.COM EXECUTIVE SUMMARY The City of South Miami retained TischlerBise, Inc. to analyze current levels of service, and to calculate maximum allowable impact fees for Parks and Recreation facilities in the City. This report presents the methodologies and calculations used to generate current levels of service and the maximum allowable impact fees. It is intended to serve as supporting documentation for future updates to impact fees in the City. The purpose of this study is to demonstrate the City's compliance with Florida Statute 163.31801 Florida Impact Fee Act. Consistent with the state Statute, and the City's master planning documents it is the intent of the City to: 1. Collect impact fees to fund parks and recreation capital improvements required to serve growth, and 2. To use revenue generated from impact fees to benefit new development by maintaining current citywide levels of service. Impact fees are one-time payments used to construct system improvements needed to accommodate new development. An impact fee represents new growth's fair share of capital facility needs. By law, impact fees can only be used for capital improvements, not operating or maintenance costs. Impact fees are subject to legal standards, which require fulfillment of three key elements: need, benefit and proportionality. • First, to justify a fee for public facilities, it must be demonstrated that new development will create a need for capital improvements. • Second, new development must derive a benefit from the payment of the fees (Le., in the form of public facilities constructed within a reasonable timeframe). • Third, the fee paid by a particular type of development should not exceed its proportional share of the capital cost for system improvements. TischlerBise evaluated possible methodologies, and documented appropriate demand indicators by type of development to document levels of service and calculate fees. Local demographic data and improvement costs were used to identify specific capital costs attributable to growth. This report includes summary tables indicating the specific factors, referred to as level of service standards, used to derive the impact fees. The geographic area for the Parks and Recreation Facilities impact fees is the City of South Miami; and the demand indicator is residential development. , Fiscal Impact Analysis .. Impact Fees· Economic Impacts· Infrastructure Financing' Market and Financial Feasibility· Fiscal Software· INTRODUCTION TO IMPACT FEES Impact Fee Study City of South Miami, Florida Impact fees are one-time payments used to construct system improvements needed to accommodate new development. An impact fee represents new growth's proportionate share of capital facilities. Impact fees have defined parameters for use. They are not a complete solution for infrastructure financing needs. Rather, they are one component of a comprehensive portfolio to ensure provision of adequate public facilities. Impact fees may only be used for capital improvements or debt service for growth-related infrastructure. In contrast to general taxes, impact fees may not be used for operations, maintenance, replacement or correcting existing deficiencies. GENERAL LEGAL FRAMEWORK Both state and federal courts have recognized the imposition of impact fees on development as a legitimate form of land use regulation, provided the fees meet standards intended to protect against regulatory takings. Land use regulations, development exactions, and impact fees are subject to the Fifth Amendment prohibition on taking of private property for public use without just compensation. To comply with the Fifth Amendment, development regulations must be shown to substantially advance a legitimate governmental interest. In the case of impact fees, that interest is in the protection of public health, safety, and welfare by ensuring that development is not detrimental to the quality of essential public services. The means to this end are also important, requiring both procedural and substantive due process. The process followed to receive community input, with stakeholder meetings, work sessions, and public hearings provide opportunity for comments and refinements to the impact fees. There is little federal case law specifically dealing with impact fees, although other rulings on other types of exactions (e.g., land dedication requirements) are relevant. In one of the most important exaction cases, the U. S. Supreme Court found that a government agency imposing exactions on development must demonstrate an "essential nexus" between the exaction and the interest being protected (see Nollan v. California Coastal Commission, 1987). In a more recent case (Dolan v. City of Tigard, OR, 1994), the Court ruled that an exaction also must be "roughly proportional" to the burden created by development. However, the Dolan decision appeared to set a higher standard of review for mandatory dedications of land than for monetary exactions such as impact fees. There are three reasonable relationship requirements for impact fees that related closely to "rational nexus" or "reasonable relationship" requirements enunciated by a number of state courts. Although the term "dual rational nexus" is often used to characterize the standard by which courts evaluate the validity of impact fees under the U.S. Constitution, we prefer a more rigorous formulation that recognizes three elements: "need," "benefit," and "proportionality." The dual rational nexus test explicitly addresses only the first two, although proportionality is reasonably implied, and was specifically mentioned by the U.S. Supreme Court in the Dolan case. Individual elements of the nexus standard are discussed further in the following paragraphs. All new development in a community creates additional demands on some, or all, public facilities provided by local government. If the capacity of facilities is not increased to satisfy that additional demand, the quality or availability of public services for the entire community will deteriorate. Impact fees may be used to recover the cost of development-related facilities, but only to the extent that the need for facilities is a consequence of development that is subject to the fees. The Nollan decision reinforced the principle that development exactions may be used only to mitigate conditions created by lischlerBise 2 2 Impact Fee Study City of South Miami, Florida the developments upon which they are imposed. That principle clearly applies to impact fees. In this study, the impact of development on infrastructure needs is analyzed in terms of quantifiable relationships between various types of development and the demand for specific facilities, based on applicable level of service standards. The requirement that exactions be proportional to the impacts of development was clearly stated by the U.S. Supreme Court in the Dolan case (although the relevance of that decision to impact fees has been debated) and is logically necessary to establish a proper nexus. Proportionality is established through the procedures used to identify development-related capital costs, and in the methods used to calculate impact fees for various types of facilities and categories of development. The demand for facilities is measured in terms of relevant and measurable attributes of development (e.g. a typical housing unit's household size). FINANCIAL ACCOUNTING A sufficient benefit relationship requires that impact fee revenues be segregated from other funds, and that they be expended only on the facilities for which the fees were charged. Impact fees must be expended in a timely manner and the facilities funded by the fees must serve the development paying the fees. However, nothing in the U.S. Constitution or the state enabling legislation requires that facilities funded with fee revenues be available exclusively to development paying the fees. In other words, benefit may extend to a general area including multiple real estate developments. Procedures for the earmarking and expenditure of fee revenues are discussed further below. All of these procedural, as well as substantive, issues are intended to ensure that new development benefits from the impact fees they are required to pay. The authority and procedures to implement impact fees is separate from, and complementary to, the authority to require improvements as part of subdivision or zoning review. UNIQUE REQUIREMENTS OF THE FLORIDA IMPACT FEE ACT In Florida, impact fees are an outgrowth of home rule power and compared to other states, the enabling legislation is relatively brief. [See Appendix B -Florida Statute: 163.31801] The Act requires the calculation of impact fees to be based on most recent and localized data. Administrative charges for the collection of impact fees are limited to actual costs. The chief financial officer of the local government has specific responsibilities for accounting and reporting collections and expenditures of impact fees. In contrast to the legal precedent in other states, Florida law states, "In any action challenging an impact fee, the government has the burden of proving by a preponderance of the evidence that the imposition or amount of the fee meets the requirements of state legal precedent or this section." As documented in this report, the City of South Miami has complied with the Florida Impact Fee Act and applicable legal precedents. Impact fees are proportionate and reasonably related to the capital improvement demands of new development. Specific costs have been identified using local data and current dollars. With input from City staff, TischlerBise determined demand indicators for each type of infrastructure and calculated proportionate share factors to allocate costs by type of development. This report documents the formulas and input variables used to calculate the impact fees for three types of parks and recreation capital components. Impact fee methodologies also identify the extent to which new development is entitled to various types of credits to avoid potential double payment of growth- related capital costs. lischlerBise 3 METI-IODOLOGIES AND CREDITS CONCEPTUAL IMPACT FEE CALCULATION Impact Fee Study City of South Miami, Florida In contrast to project-level improvements, impact fees fund growth-related infrastructure that will benefit multiple development projects, or the entire jurisdiction (usually referred to as system improvements). The first step is to determine an appropriate demand indicator for the particular type of infrastructure. The demand indicator measures the number of demand units (e.g., population) for each unit of development. For example, an appropriate indicator of the demand for parks is population growth and the increase in population can be estimated from the average number of persons per housing unit. The second step in the impact fee formula is to determine infrastructure units per demand unit, typically called level of service (LOS) standards. In keeping with the park example, a common LOS standard is park acreage per thousand people. The third step in the impact fee formula is the cost of various infrastructure units. To complete the park example, this part of the formula would establish the cost per acre for land acquisition and/or park improvements. CALCULATION METHODOLOGIES Impact fees can be calculated by anyone of several legitimate methods. The choice of a particular method depends primarily on the service characteristics and planning requirements for each facility type. Each method has advantages and disadvantages in a particular situation, and to some extent can be interchangeable, because each allocates facility costs in proportion to the needs created by development. Reduced to its simplest terms, the process of calculating impact fees involves two main steps: (1) determining the cost of development-related capital improvements, and (2) allocating those costs equitably to various types of development. In practice, though, the calculation of impact fees can become quite complicated because of the many variables involved in defining the relationship between development and the need for facilities. The following paragraphs discuss three basic methods for calculating impact fees, and possible application of each method. Cost Recovery or Buy-In Fee Calculation. The rationale for the cost recovery approach is that new development is paying for its share of the useful life and remaining capacity of facilities already built or land already purchased from which new growth will benefit. This methodology is often used for systems that were oversized such as sewer and water facilities. Incremental Expansion Fee Calculation. The incremental expansion method documents the current level of service (LOS) for each type of public facility in both quantitative and qualitative measures, based on an existing service standard (such as square feet per student). This approach ensures that there are no existing infrastructure deficiencies or surplus capacity in existing infrastructure. New development is only paying its proportionate share for growth-related infrastructure. The level of service standards are determined in a manner similar to the current replacement cost approach used by property insurance companies. However, in contrast to insurance practices, the fee revenues would not be for renewal and/or replacement of existing facilities. Rather, revenue will be used to expand or provide additional facilities, as needed, to accommodate new development. An incremental expansion cost method is best suited for public facilities that will be expanded in regular increments, with LOS standards based on current conditions in the community. TischlerBise 4 Impact Fee Study City of South Miami, Florida Plan-Based Fee Calculation. The plan-based method allocates costs for a specified set of improvements to a specified amount of development. Facility plans identify needed improvements, and land use plans identify development. In this method, the total cost of relevant facilities is divided by total demand to calculate a cost per unit of demand. Then, the cost per unit of demand is multiplied by the amount of demand per unit of development (e.g., housing units or square feet of building area) in each category to arrive at a cost per specific unit of development (e.g., single family detached unit). CREDITS Regardless of the methodology, a consideration of "credits" is integral to the development of a legally valid impact fee methodology. There are two types of "credits," each with specific and distinct characteristics, but both of which should be addressed in the calculation of impact fees. The first is a credit due to possible double payment situations. This could occur when contributions are made by the property owner toward the capital costs of the public facility covered by the impact fee. This type of credit is integrated into the impact fee calculation. The second is a credit toward the payment of a fee for dedication of public sites or improvements provided by the developer and for which the facility fee is imposed. This type of credit is addressed in the administration and implementation of a facility fee program. FEE METHODOLOGIES Each of the fee methodologies discussed above were considered to calculate impact fees for the City of South Miami. Where capacity is sufficient to serve current demand the incremental expansion method documents the current level of service (LOS) for each type of public facility. The cost recovery method, used on the rationale that new development is paying for its share of the useful life and remaining capacity of an existing facility, is used to calculate a new growth share of recreational facilities. The following table summarizes the method(s) used to derive the impact fee for each component of the Parks and Recreation Facilities impact fees. Figure 1: Summary of Impact Fee Methodologies REPORTING RESULTS Calculations throughout this technical memo are based on an analysis conducted using Excel software. Results are discussed in the memo using one-and two-digit places (in most cases), which represent rounded figures. However, the analysis itself uses figures carried to their ultimate decimal places; therefore the sums and products generated in the analysis may not equal the sum or product if the reader replicates the calculation with the factors shown in the report (due to the rounding of figures shown, not in the analysis). lischlerBise 5 Impact Fee Study City oj South Miami, Florida COST FOR IMPACT FEE STUDY Included in the Parks and Recreation facilities impact fee is the cost for preparation of the Impact Fee Study. The City of South Miami incurred a cost of $36,000 for the 2013 Impact Fee Study to establish maximum supportable impact fees for Parks and Recreation Facilities and Multi-Modal Transportation Facilities (to be discussed in a future document). To distribute the cost among each study component, half ($18,000) of the total project cost was assigned to the Parks and Recreation Facilities fee evaluation. The component shares and costs are shown in Figure 2. Figure 2: Impact Fee Study Preparation Cost Fee Components 2013 Component Costs Parks and Recreation $18,000 Multi-Modal Transportation $18,000 Total Study Cost $36,000 MAXIMUM ALLOWABLE IMPACT FEES BY TYPE OF LAND USE Figure 3 provides a schedule of the maximum allowable impact fees by type of land use for the City of South Miami. The fees represent the highest amount allowable for each type of applicable land use, and represents new growth's fair share of the cost for parks and recreation capital facilities. The City may adopt fees that are less than the amounts shown. However, a reduction in impact fee revenue will necessitate an increase in other revenues, a decrease in planned capital expenditures, and/or a decrease in levels of service. The fees for residential development are to be assessed per housing unit and should be collected when building permits are issued. As an option, the fees for single residential units are presented by size of the unit, based on number of bedrooms and persons per housing unit factors. See Appendix A for further explanation of these factors and fee options. Figure 3: Summary of Maximum Allowable Impact Fees by Land Use Unit Multifamily Unit Single Unit Number of [1] PPHU Recommended multipliers are scaled to make the average value by type of hous ing for FL PUMA 4014 match the average va I ue for the City derived from 2011 America n Community Survey data, with persons adjusted to the Citywide average of 2.80 persons per single family unit. TaschlerBise 6 PARKS AND RECREATION FACILITIES IMPACT FEES METHODOLOGY Impact Fee Study City of South Miami, Florida The Parks and Recreation Facilities impact fees include three components. Figure 4 illustrates the Parks and Recreation impact fee components and methodology. An incremental expansion cost methodology was used to calculate the developed parkland and park improvements components. A cost recovery method was used to calculate the recreation facilities component. All capital costs have been allocated 100 percent to residential development. Based on recent growth trends and discussions with City staff, TischlerBise calculated a base year population estimate of 11,979, for use in the Impact Fee Study. Please note: because population estimates used in the impact fee study are based on year-round population, estimates and projections presented herein represent more conservative figures than the University of Florida's Bureau of Economic and Business Research household population data. Figure 4: Parks and Recreation Facilities Impact Fee Methodology Chart Residential Development I I Persons multiplied by per Net Capital Cost Housing Unit Per Person I I Developed plus plus Parkland Park Recreational (incremental) Improvements Facilities (incremental) (cost recovery) lischlerBise 7 PARKS AND RECREATION FACILITIES IMPROVEMENTS AND COSTS DEVELOPED PARKLAND Impact Fee Study City of South Miami, Florida The City of South Miami does not anticipate purchasing additional parkland in the foreseeable future. Rather, the City plans to maintain the current level of service for developed parkland with a citywide service area that it provides to existing development. Thus, the incremental expansion methodology is used to calculate this component of the Parks and Recreation Facilities impact fees. The City intends to use impact fees to develop a portion of its undeveloped inventory of parkland. In order to host improvements such as athletic fields, playgrounds, parking, picnic and other amenities, parkland must first be developed in terms of basic infrastructure (e.g., sewer/water, parking, grading, etc.). Figure 5 provides a current inventory of City-maintained parkland, including 10 acres of undeveloped land designated as South Miami Park, and 34.94 acres of developed parkland, all with a citywide service area. As shown in Figure 5, the current level of service is 2.92 acres per 1,000 residents (rounded), based on a dividing the 34.94 developed acres by the current population of 11,979. The cost per person is calculated by multiplying the current LOS (2.92 acres per thousand persons) by the estimated cost to develop a park acre provided by the City ($175,000 per acre) and dividing this total by 1,000. This results in a current parkland development cost per person of $511.00. Figure 5: Incremental Expansion -Developed Parkland Acreage City of South Miami Parkland Undeveloped Developed lischlerBise Dante Fascell Park Brewer Park Murray Pa rk Fuchs Pa rk Marshall Williamson Park Jean Willis (Flowering Tree) Park All-America Park Van Smith Dison Palmer Park/S.M. Field South Miami Park TOTAL Source: City oj South Miami Level of Service (LOS) Standards Cost Analysis LOS: Acres perThousand Person Land Devel 7.50 1.50 3.50 5.00 3.50 0.50 1.40 1.14 1.00 9.90 10.00 10.00 34.94 8 Impact Fee Study City of South Miami, Florida PARK IMPROVEMENTS The park improvements component is based on the incremental expansion methodology. The City of South Miami maintains active and passive park improvements for use by the current population. As the resident population grows, the City intends to use impact fee revenue to add park improvements to existing parks as necessary to maintain the current level of service of 3.59 units per 1,000 residents. As shown below, the City has 43 park improvements including sports fields and courts, playgrounds, and picnic amenities. The combined value of park improvements is $5,075,586. The calculation to determine level of service is as follows: 43 units / {11,979/1,OOO residents} = 3.59 units per 1,000 residents (rounded). The average cost per unit of existing park improvements is $118,037. To calculate the cost of park improvements per capita, the average cost per unit is multiplied by the level of service resulting in a park improvements cost per capita of $423.75. Figure 6: Incremental Expansion -Park Improvements Total Costper Total Park Improvements Units Unit Value Ha ndba II Cou rts I----~ _ ___+----L~~I---...i.:~~ Pavi I i on I---_---::. _ ___+---~~~I----Z.~~ PI a ygrou nds 1--_2_-+ ___ ..2.:~~1--~:!..3.!..~ Footb a II /Socce r Fi e Ids (Li ghte d) I-----"'-----i---..::...::;;..::.:.::..::..::.t-,..=:.:...::.:=.::..j Base/Softball Fields (Lighted)I-_-f.._-J ___ ~~~J.--.i~~~ Ope n Fi elds (Unl ighted) I--~~-J---.z..=~~l---~~~ Tennis Courts 1--~~-J---2~~1---2.:~~ Basketball Courts I--~----i---~~~t-~~~ Vall eyba II Cou rts, Sa nd I--___ --+ ___ ~___'_'-'-'-+__--'..;;....:;~ Source: City of South Miami Level of Service (LOS) Standards Inventory of Park Improvements Total Park Acres Improvements per Acre 2013 City Popul ation 43 34.94 1.23 11,979 lOS: Improvements per Thousand Person I 3.59 Cost Analysis TischlerBise 9 RECREATION FACILITIES Impact Fee Study City of South Miami, Florida In 2001, a need was identified for a recreational facility to serve current demands and expected development in the City of South Miami. As shown in Figure 7, the city constructed the 22,032 square foot Murray/Gibson-Bethel Community Center to serve a resident population of approximately 14,000 people (both existing and new residents), and reserved 25 percent of the total facility to serve non- resident members. Therefore, a 25 percent reduction factor is applied to the total square feet to determine the 16,524 square feet of the total space that will be used to calculate the level of service for this component. Based on an adjusted square footage of 16,524 and a capacity to serve approximately 14,000 residents, a cost recovery methodology is used to calculate the level of service of 1.18 square feet per resident by dividing 16,524 square feet by 14,000 residents. The City spent $2.5 million to construct the 22,032 square foot facility, which equates to a cost per square foot of $113. The cost per person is derived by multiplying the 1.18 LOS by the cost per square foot ($113), resulting in a cost per person of $133.34. Figure 7: Cost Recovery -Parks and Recreation Facilities Total Square Cost per Facility Value Feet Square Foot Murray/Gibson Bethel Comm. Cntr $2,500,000 Reduction Factor 22,032 25% Share of Facility For City Residents 1'--____ ....:1:.;.6~,5..::.24.;"J1 Source: City of South Miami Level of Service (LOS) Standards Cost AnalYSis lischlerBise $113 10 Impact Fee Study City of South Miami, Florida PARKS AND RECREATION CAPITAL IMPROVEMENTS NEEDED TO SERVE GROWTH PARKS AND RECREATION FACIlITIES CAPACITY In 2001, the City of South Miami constructed a new recreation facility designed to serve a resident population of approximately 14,000 people, with additional space to serve non-resident guests. Issuance of a general obligation bond provided the necessary funding to construct the new facility. Based on a capacity to serve 14,000 residents and the land use assumptions (see Appendix A) used to project the potential rate of new development, there remains enough capacity to serve approximately twenty years of growth. Shown in Figure 8 is the annual residential demand for the recreational facility square footage for each year past current demand, until the remaining capacity is utilized by future development. Figure 8: Recreational Facility Remaining Capacity to Serve Growth Demand for Remaining Popu I a ti on LOS Fa ci Ii ty SF Ca pa city Bose 2013 11,979 Resident Portion of SF = 16,524 1 2014 12,074 1.18 14,247 2,277 2. 2015 12,169 1.18 14,359 2,165 3 2016 12,266 1.18 14,474 2,050 4 2017 12,363 1.18 14,588 1,936 5 2018 12,460 1.18 14,703 1,821 6 2019 12,559 1.18 14,820 1,704 7 2020 12,658 1.18 14,936 1,588 8 2021 12,759 1.18 15,056 1,468 9 2022 12,859 1.18 15,174 1,350 10 2023 12,961 1.18 15,294 1,230 11 2024 13,064 1.18 15,416 1,108 1.2 2025 13,167 1.18 15,537 987 13 2026 13,271 1.18 15,660 864 14 2027 13,376 1.18 15,784 740 15 2028 13,482 1.18 15,909 615 16 2029 13,589 1.18 16,035 489 17 2030 13,696 1.18 16,161 363 18 2031 13,805 1.18 16,290 234 19 2032 13,914 1.18 16,419 105 20 2033 14,024 1.18 16,548 0 lischlerBise 11 PROJECTION OF GROWTH-RELATED INFRASTRUCTURE NEEDS Impact Fee Study City oj South Miami, Florida Needs due to future growth were calculated using the current levels of service and cost factors for the incremental expansion of developed parkland and park improvements. Growth-related needs are a projection of the amount of existing infrastructure and estimated costs over a specified period needed to maintain current levels of service for expected population increases. Figure 9 below is a summary of the growth-related needs to incrementally expand the number of developed park acres, and park improvements. The pace and location of new development will drive decisions regarding the timing of individual improvements. Additionally, as new development occurs, the City may choose to negotiate for developers to make capital investments in return for credits against the Parks and Recreation Facilities Impact Fees. Figure 9: Parks and Recreation Incremental Improvement Needs Parkland Level of 2.92 Acres per Thousa nd Persons Service Unit $175,000 Land Development Cost Year Base 2013 1 2014 2 2015 3 2016 4 2017 5 2018 6 2019 7 2020 8 2021 9 2022 10 2023 Cost per Acre Demand Unit: Population 11,979 12,074 12,169 12,266 12,363 12,460 12,559 12,658 12,759 12,859 12,961 Projected Demand [1] Park Acres Improvements 35 43 35 43 36 44 36 44 36 44 36 45 37 45 37 45 37 46 38 46 38 47 Five-Year Total 481 1 2 Cost of Necessary Parkland $245,791 Cost of Necessary Improvements $203,825 Ten-Year Total 982 3 4 Cost of Necessary Parkland $501,802 Cost of Necessa ry Improvements $416,125 [1] Shown as rounded numbers lischlerBise I Park Improvements 3.59 Improvement Thousand Persons $118,037 Average Cost per Improvement 12 COST FOR IMPACT FEE STUDY Impact Fee Study City of South Miami, Florida Included in the fee is the cost for preparation of the Parks and Recreation Facilities impact fees. As shown in Figure 10, this is calculated based on the projected growth in South Miami population over the next five years, which is the recommended period of time impact fees should be in effect before reevaluation to reflect changes in development and levels of service. Between 2013 and 2018, the City of South Miami population is projected to grow by 481 persons. The consultant cost to prepare the 2013 Impact Fee Study ($18,OOO) is divided by the 5-year net increase in population (481) to derive a per person cost of $37.42. Figure 10: Impact Fee Study Preparation Cost (Parks and Recreation Portion) Fee Component Residential Proportionate Share 100% Consultant Fee $18,000 $18,000 lischlerBise l3 CREDIT FOR FUTURE PRINCIPAL PAYMENTS Impact Fee Study City of South Miami, Florida The City of South Miami borrowed money to fund construction of the Murray/Gibson-Bethel Community Center. Because of this, TischlerBise recommends the Parks and Recreation Facilities impact fees include a credit for future principal payments on the existing General Obligation debt. New residential development that pays the Parks and Recreation Facilities impact fees will also contribute to future principal payments paid from property tax revenue. To account for the time value of money, annual principal payments are discounted using a net present value formula based on the estimated average interest rates over the life of the bond. A credit is only necessary for principal payments because the recreation facilities component was based on the construction cost of the facility and not the debt service schedule. Figure 11 shows the credit calculated based on the projected principal payments starting in fiscal year 2014 through the remainder of the bond's term. The applicable net present value of the credit for residential development is $85.51 per person. This will be subtracted from the gross capital cost per person to derive a net capital cost per person to be used in calculating the maximum supportable impact fee for Parks and Recreation Facilities. Figure 11: Credit for Future Principal Payments on Parks and Recreation Facilities Fiscal Year Principal Persans 2014 $60,000 12,074 $4.97 2015 $65,000 12,169 $5.34 2016 $70,000 12,266 $5.71 2017 $75,000 12,363 $6.07 2018 $75,000 12,460 $6.02 2019 $80,000 12,559 $6.37 2020 $85,000 12,658 $6.72 2021 $90,000 12,759 $7.05 2022 $90,000 12,859 $7.00 2023 $95,000 12,961 $7.33 2024 $100,000 13,064 $7.65 2025 $105,000 13,167 $7.97 2026 $110,000 13,271 $8.29 2027 $120,000 13,376 $8.97 2028 $125,000 13,482 $9.27 2029 $130,000 13,589 $9.57 2030 $135,000 13,696 $9.86 TOTAL $1,610,000 Discount Rate* 4.00% Net Present Value $85.51 * Average estimated interest rate over life of loan. Source: City of South Miami lischlerBise 14 Impact Fee Study City oj South Miami, Florida PARKS AND RECREATION INPUT VARIABLES AND IMPACT FEES Figure 12 provides a summary of the input variables (described in the chapter sections above) used to calculate the net capital cost per person of developed parkland, park improvements, and recreational facilities. The Parks and Recreation impact fees are the product of persons per housing unit (see Appendix A -land Use Assumptions), by type, multiplied by the total net capital cost per person. Fees are provided for multifamily units and an average sized single family unit. As an option, fees are also presented by size of single family housing unit, based on household size established by number of bedrooms (see Appendix A for further explanation). Each Persons per Housing Unit factor is multiplied by the net capital cost per person to derive the impact fee per unit. An example of the calculation for an average single family unit is: the net capital cost per person ($1,020.00) multiplied by the persons per housing unit for that size unit (2.80) to derive the impact fee per average single family unit of $2,856. Figure 12: Parks and Recreation Input Variables and Maximum Allowable Impact Fees Parks and Recreation Capital Costs Parkland Land Development Park Improvements Developed Parks Parks and Recreation Facilities Impact Fee Study I GROSS CAPITAL COST Debt Service Credit I NET CAPITAL COST Parks and Recreation Fee Schedule Unit Number of Unit Multifamily Unit Per Person $511.00 $423.75 $133.34 $37.42 $1,105.51 ($85.51) $1,020.00 [1] PPHU Recommended multipliers are scaled to make the average value by type of housi ng for FL PUMA 4014 match the average va I ue for the City derived from 2011 Ameri ca n Community Survey data, with persons a djusted to the Citywide average of 2.80 persons per si ngl e fami Iy unit. lischlerBise 15 CASH FLOW PROJECTIONS Impact Fee Study City of South Miami, Florida This section summarizes the potential cash flow to the City of South Miami, if development occurs as projected, and the Parks and Recreation impact fee is implemented at the maximum allowable amounts. The cash flow projections are based on the assumptions detailed in this chapter, and the development projections discussed in Appendix A -Land Use Assumptions. The cash flow provides an indication of the impact fee revenue generated by new development, and capital expenditures necessary to meet the demand for new parks and recreation facilities brought about by new development and the existing debt service for the Murray/Gibson-Bethel Community Center General Obligation bond. Necessary expenditures associated with the incremental expansion of developed parkland, and park improvements are calculated based on current costs per unit, and on maintaining the current levels of service. For the cost recovery expenditures associated with the recreation facility General Obligation bond the total payments for the lO-year period are shown in the capital cost section. The cash flow deficit represents the portion of the full debt service not recouped through impact fee revenues. The cash flow is also affected by the reduction of impact fee revenue due to a credit for future payments of the General Obligation debt for the recreational facility. Figure 13: Cash Flow Summary lischlerBise Parks and Recreation Cash Flow 2013-2023 Net Cost per Population New Population [1] Revenues Potential Revenue, 2013-2023 (rounded) Costs Parks and Recreation Necessary Improvements Recreation Facility Debt Service [2] I mpa ct Fee Study Total Capital Costs, 2013-2023 Cash Flow Cumulative Surplus/(De!icit) [1] TischlerBise, Land Use Assumptions $1,020.00 982 $1,001,643 $917,927 $1,332,483 $18,000 $2,268,410 ($1,266,768) [2] Reflects the total debt service obligation (principal and interest) 16 IMPLEMENTATION AND ADMINISTRATION Impact Fee Study City of South Miami, Florida All costs in the impact fee calculations are given in current dollars with no assumed inflation rate over time. Necessary cost adjustments can be made as part of the recommended annual evaluation and update of impact fees. One approach is to adjust for inflation in construction costs by means of an index like the one published by Engineering News Record (ENR). This index can be applied against the calculated impact fee. If cost estimates change significantly the City should recalculate the fees. There are certain accounting procedures that should be followed by the City. For example, monies received should be placed in a separate fund and accounted for separately and may only be used for the purposes authorized in an impact fee ordinance. Interest earned on monies in the separate fund should be credited to the fund. CREDITS AND REIMBURSEMENTS If a developer constructs a parks and recreation facilities component that was included in the fee calculations or dedicates land for future investments, it will be necessary to either reimburse the developer or provide a credit against the Parks and Recreation Facilities impact fees. The latter option is more difficult to administer because it creates unique fees for specific geographic areas. Based on TischlerBise's experience, it is better for the City to establish a reimbursement agreement with the developer that constructs a system improvement. The reimbursement agreement should be limited to a payback period of no more than ten years and the City should not pay interest on the outstanding balance. The developer must provide sufficient documentation of the actual cost incurred for the system improvement. The City should only agree to pay the lesser of the actual construction cost or the estimated cost used in the impact fee analysis. If the City pays more than the cost used in the fee analysis, there will be insufficient fee revenue. Reimbursement agreements should only obligate the City of South Miami to reimburse developers annually according to actual fee collections from the benefiting area. COLLECTION AND EXPENDITURE ZONES The reasonableness of impact fees is determined in part by their relationship to the local government's burden to provide necessary public facilities. The need to show a substantial benefit usually requires communities to evaluate collection and expenditure zones for public facilities that have distinct geographic service areas. Therefore, developments paying fees will be benefiting from the provision of additional capital improvements in their service area. The impact fees prepared for the City of South Miami are based on capital improvements that will have citywide benefits; therefore, a citywide service area is appropriate. lischlerBise 17 ApPENDIX A -LAND USE ASSUMPTIONS INTRODUCTION Impact Fee Study City of South Miami, Florida As part of our Work Scope, TischlerBise has prepared documentation on demographic data and development projections that will be used in the City of South Miami Parks and Recreation Facilities Impact Fee Study. The demographic estimates for 2013 will be used in the fee calculations. The development projections are used solely to illustrate a possible future pace for service demands, impact fee revenues, and capital expenditures. Base year residential development estimates were developed based on historic trends, current data maintained by the Miami-Dade County Assessor's Office, and discussions with staff. Three assumptions informed the calculation of projections for each year past the base. First, TischlerBise assumed historic trends would continue. Second, the twenty-year projections do not include any large- scale development projects that would diverge for historic growth patterns. Lastly, the projections assume the City of South Miami would not annex additional lands for development in the twenty-year projection window. The data herein are for the City of South Miami 2013 Parks and Recreation Facilities Impact Fee Study. TlSChlerBise 18 Impact Fee Study City of South Miami, Florida RESIDENTIAL DEVELOPMENT CURRENT HOUSING UNIT ESTIMATES Impact fees require an analysis of current levels of service. For residential development, current levels of service are determined using estimates of population and housing units. To estimate current housing units in the City of South Miami, TischlerBise began by calculating the distribution of housing units by type of structure from the decennial census and the 2011 American Community Survey 5-year Estimates. According to the Census data, the housing unit inventory in the City is 65 percent single units and 35 percent units in multi-unit structures. Single Unit includes detached, attached-condominiums, and manufactured home structures. According to Miami-Dade County data, the City has 3,643 single unit housing structures (single family detached and condominium), and 95 structures with multiple housing units. Figure A14: City of South Miami Residential Structures Property Type Single Family Condomi ni um Multifa mi Iy Total Units Structure 2,854 789 3,643 Source: Mia mi-Dade County Property Appra iser. (lJul13) 2013 Assessment Roll Cha nge by Property Type 2,854 789 95 3,738 Holding the 2011 U.S. Census unit distribution constant, the number of housing units in the 95 multi-unit structures can be calculated as follows: (3,643 single units / 65%) X 35% = 1,988 housing units in multi- unit structures. This equates to a base year estimate of 5,631 total housing units in the City of South Miami. Figure A15: Residential Housing Units in the City of South Miami Structure Type Single Unit [3] 2+ Units Total 2011 Base Year Distribution [1] -,.,€IQ- 65% 3,643 35% 1,988 5,631 (1) U.s. Census Bureau, 2011 America n Community Survey 5-Year Estimates: Table B25024 (2) City of South Miami (3) Single Unit includes detached, attached, and manufactured homes Source: City of South Miami Based on household characteristics and data availability, TischlerBise recommends using two housing unit categories for the impact fee study: (I) Single Unit and (2) 2+ Unit. (Further discussion on housing characteristics by housing unit type and bedroom count is provided at the end ofthis memo.) lischlerBise 19 PERSONS PER HOUSING UNIT Impact Fee Study City of South Miami, Florida According to the u.s. Census Bureau, a household is a housing unit that is occupied by year-round residents. Impact fees often use per capita standards and persons per housing unit (PPHU) or persons per household (PPH) to derive proportionate-share fee amounts. • When PPHU is used in the fee calculations, infrastructure standards are derived using year- round population. • When PPH is used in the fee calculations, the impact fee methodology assumes all housing units will be occupied, thus requiring seasonal or peak population to be used when deriving infrastructure standards. TischlerBise recommends that impact fees for residential development in the City of South Miami be imposed according to the number of year-round residents per housing unit (PPHU). This methodology assumes some portion of the housing stock will be vacant; and according to the u.S. Census Bureau American Community Survey, the City had a 2011 vacancy rate of 16.6 percent. Persons per housing unit (PPHU) requires data on population in occupied units and the types of units by structure. These data are collected in the u.S. Census Bureau, American Community Survey (ACS). Figure A16 below shows 2011 ACS 5-year estimates for the City of South Miami. To calculate the PPHU, persons in occupied units (11,507) is divided by total housing units (5,034). Dwellings with a single unit per structure (detached, attached, and manufactured homes) averaged 2.80 persons per housing unit. Dwelling units in structures with multiple units averaged 1.34 persons per housing unit. The 2011 average persons per housing unit (PPHU) of 2.29 will be held constant over the projection period since the impact fees represents a "snapshot approach" of current levels of service and costs. The 2.29 PPHU factor will be applied to the base year 2013 housing unit estimate calculated above. Figure A16: Persons per Housing Unit by Type of Unit, 2011 American Community Survey 2011 Summary by Persons House-Persons per Housing Persons Per Housing Type of Housing holds Household Units Hsg Unit Mix Single Unit 9,1251 3,010 I 3.03l 3,257 I 2.80 J 65% 2+Unit 2,382 1 1,188 I 2.011 1,7771 1.34 I 35% Subtotal 11,507 4,198 2.74 5,034 2.29 Vacancy Group Quarters 56 Rate TOTAL 11,563 4,198 5,034 16.6% Source: U.S. Census Bureau, 2007-2011 American Community Sun.ey lischlerBise 20 Impact Fee Study City of South Miami, Florida YEAR-RoUND POPULATION ESTIMATES AND PROJECTIONS Based on recent growth trends and discussions with City staff, TischlerBise calculated a base year population estimate, for use in the Impact Fee Study. Please note: because population estimates used in the impact fee study are based on year-round population, estimates and projections presented herein will be lower than the University of Florida's Bureau of Economic and Business Research household population data. To calculate a 2013 year-round population, TischlerBise used annual intercensal July population estimates from the u.S. Census Bureau for 2006 -2010 to establish a population growth trend and a relationship between City of South Miami and Miami-Dade County population. According to Census estimates, over the last decade the City of South Miami has hosted on average 0.47 percent of the annual Miami-Dade County population, but the share has decreased slightly each year. The 2013 City of South Miami Impact Fee Study assumes the City will not annex additional land in the next twenty years. Therefore, the share of County population in the City is not likely to increase, but through more intensity of land use, the assumption used to calculate projected population estimates is that the share will decrease only 0.01 percent by 2033. The Florida Office of Demographic Research estimates the County has a 2013 population of 2,577,768. According to the Office's long-term growth projections, the population of Miami-Dade County is projected to exceed 3 million by 2033. This equates to roughly a 0.89 percent growth rate for the Miami- Dade County population between 2010 and 2033. By applying the City's share of County population to the 2033 projected population it is projected the City of South Miami will have a 2033 population of just over 14,000. See Figure A17 for additional detail. The exponential growth rate of 0.79 percent calculated from the City's 2010 and 2033 population estimates was used to estimate a 2013 base year population of 11,979 for the City of South Miami. Figure A17: Population Estimates and Projections for City of South Miami Population Estimates {lJ Population Estimates [2J City of South Miami I----"=cq..-~=+----'=""+--=.:::<.:...:<.:=t_-=o:.::.:::.t--=.:=:..=+_--...=!=::!.j Mi ami-Dade CountyL......;::.c.;.:;===--==="--==,,-,,-,--=<==,,-,,-,-=::..=:;:;..::.J.---=,,,",-,..<,;,.;;.,,",-_-=:";"::'.=.;..;;.J City share of County 0.47% 0.47% 0.47% 0.47% 0.47% 0.47% 0.46% [1] U.S. Census: Intercensal Populatlon Estimates [2] Florida Office of Demogra phic Resea rch: County Population Projections [3] Florida Office of Demogra phic Resea rch: County Popul ation Projection. City projection ca Icul ated from .46% City share of County population trend lischlerBise Exponenti a I Growth Rates 2006-10 2010-33 0.93% 1.02% 0.79% 0.89% 21 Impact Fee Study City of South Miami, Florida DEMAND INDICATORS BY SIZE OF DETACHED HOUSING TischlerBise analyzed demographic data in an effort to refine the impact fee schedule to be more progressive for residential development. This can be done by developing fees by size of housing unit based on bedroom count. Household size can be derived using custom tabulations of demographic data by bedroom range from survey responses provided by the U.S. Census Bureau in files known as Public Use Micro-data Samples (PUMS). Because PUMS data are only available for areas of roughly 100,000 persons, the City of South Miami is in Florida Public Use Micro-data Area (PUMA) 04014. Data is first analyzed for the PUMA area and then calibrated to conditions in the City. TischlerBise used 2011 ACS 5-Year Estimates to derive persons per housing unit by number of bedrooms. As shown in Figure A18, recommended multipliers were scaled to make the average value by type of housing for Florida PUMA 04014 match the average value derived from ACS data specific to South Miami. As the number of bedrooms increases, persons per unit increases. Figure A18: Average Persons and Trip Ends by Bedroom Range in City of South Miami Unit Type Single UnitO-3 Bdrms Single Unit 4+ Bdrms Single Unit Subtotal Multifa mi Iy Units Tota I Persons [1} 2,862 1,561 4,423 1,049 Housing Units [1} 1,245 500 1,745 724 GRAND TOTAL 5,472 2,469 Persons per Housing Unit [2} 2.54 3.45 2.BO 1.34 [1] American Community Survey, Public Use Microdata Sample for FL PUMA 04014 (unweighted data for 2011). [2] Persons per Housing Unit factors are scaled to make the average value by type of housing for FL PUMA 04014 match the average value derived from American Community Survey 2011 data, with persons adjusted to the Citywide average of 2.80 persons per single unit. POPULATION AND HOUSING UNIT PROJECTIONS TischlerBise used a two-step process to project housing units for each year past base year 2013. First, to calculate units added each year, the annual net population increase was divided by the PPHU factor (2.29). The total units estimate was then distributed by type of structure using the assumed 2013 unit mix from above (65 percent single unit and 35 percent multi-unit structures). Over the 20-year projection period, the share of single unit structures decreases by less than one percent. See Figure A19 below for a summary of population and housing unit projections. Population and housing unit projections are used to illustrate the possible future pace of service demands, revenues, and expenditures. As these factors will vary to the extent that future development varies, there will be virtually no effect on the actual amount ofthe impact fees. lischlerBise 22 Figure A19: Population and Housing Unit Projections in City of South Miami, 2013 -2033 BaseVr 1 2 3 4 5 6 2013 2014 2015 2016 2017 2018 2019 SUMMARY OF DEMAND PROJECTIONS (City Limits) TOTAL YEAR-ROUND POPULATION 0.79% 11,979 12,074 12,169 12,266 12,363 12,460 12,559 TOTAL HOUSI NG UNITS 2.29 PPHU 5,631 5,672 5,713 5,755 5,797 5,839 5,882 RESIDENTIAL DEVELOPMENT Housing Units 2011 Single Units 65% 3,643 3,660 3,686 3,713 3,741 3,768 3,796 Multifamily Units 35% 1,988 2,012 2,027 2,042 2,056 2,071 2,086 TOTAL 5,631 5,672 5,713 5,755 5,797 5,839 5,882 ANNUAL INCREASES (City Limits) 12-13 13-14 14-15 15-16 16-17 17-18 18-19 I Year-Round Population 95 95 97 97 97 99 Housing Units 41 41 42 42 42 43 Source: Florida Office of Demographic Research; City of South Miami; TischlerBfse TlSChlerBise 7 8 9 2020 2021 2022 12,658 12,759 12,859 5,925 5,969 6,013 3,823 3,852 3,880 2,102 2,117 2,133 5,925 5,969 6,013 19-20 20-21 21-22 99 101 100 43 44 44 Impact Fee Study City of South Miami, Florida Five-Year Increments ==> CumulatiVe Avg.Ann. 10 15. 20 Inaease lnaease 2023 2028 2033 2013-2033 2013-2033 12,961 13,482 14,024 2,045 102 6,058 6,285 6,523 892 45 3,910 4,057 4,210 567 28 2,148 2,228 2,313 325 16 6,058 6,285 6,523 892 45 2013-2033 22-23 27-28 32-33 AVRAnnual 102 106 110 102 45 46 48 45 23 ApPENDIX B -FLORIDA STATUTE: 163.31801 Impact Fee Study City of South Miami, Florida TITLE XI 163.31801 -IMPACT FEES; SHORT TITLE; INTENT; DEFINITIONS; ORDINANCES LEVYING IMPACT FEES FLORIDA IMPACT Fee ACT (1) This section may be cited as the "Florida Impact Fee Act." (2) The Legislature finds that impact fees are an important source of revenue for a local government to use in funding the infrastructure necessitated by new growth. The Legislature further finds that impact fees are an outgrowth of the home rule power of a local government to provide certain services within its jurisdiction. Due to the growth of impact fee collections and local governments' reliance on impact fees, it is the intent of the Legislature to ensure that, when a county or municipality adopts an impact fee by ordinance or a special district adopts an impact fee by resolution, the governing authority complies with this section. (3) An impact fee adopted by ordinance of a county or municipality or by resolution of a special district must, at minimum: (a) Require that the calculation of the impact fee be based on the most recent and localized data. (b) Provide for accounting and reporting of impact fee collections and expenditures. If a local governmental entity imposes an impact fee to address its infrastructure needs, the entity shall account for the revenues and expenditures of such impact fee in a separate accounting fund. (c) Limit administrative charges for the collection of impact fees to actual costs. (d) Require that notice be provided no less than 90 days before the effective date of an ordinance or resolution imposing a new or increased impact fee. A county or municipality is not required to wait 90 days to decrease, suspend, or eliminate an impact fee. (4) Audits of financial statements of local governmental entities and district school boards which are performed by a certified public accountant pursuant to s. 218.39 and submitted to the Auditor General must include an affidavit signed by the chief financial officer of the local governmental entity or district school board stating that the local governmental entity or district school board has complied with this section. (5) In any action challenging an impact fee, the government has the burden of proving by a preponderance of the evidence that the imposition or amount of the fee meets the requirements of state legal precedent or this section. The court may not use a deferential standard. History.-s. 9, ch. 2006-218; s. 1, ch. 2009-49; s. 5, ch. 2009-96; s. 5, ch. 2011-14; s. 1, ch. 2011-149. TischlerBise 24 Concurrency Review Study for City of South Miami Final Report April 2014 Presented by Michael Baker Jr., Inc. City of South Miami Table of Contents CONCURRENCY REVIEW .................................................................................................. 1 INTRODUCTION ....................................................................................................................... 1 BRIEF HISTORY OF FLORIDA LAW ......................................................................................... 2 SOUTH MIAMI CONCURRENCY MANAGEMENT SYSTEM .................................................... 5 CITYWIDE TRANSPORTATION CAPACITY ASSESSMENT .................................................... 7 TRANSPORTATION CONCURRENCY EXCEPTION AREAS (TCEA) ...................................... 9 MULTIMODAL TRANSPORTATION DISTRICTS (MMTD) ....................................................... 14 SPECIALTY LEVELS OF SERVICE (LOS) ANALySiS ............................................................. 17 SUMMARY AND RECOMMENDATIONS ................................................................................. 21 Tables TABLE 1 CONCURRENCY REVIEW REQUIREMENTS IN SOUTH MIAMI .............................. 5 TABLE 2 SOUTH MIAMI LOS STANDARDS ............................................................................. 6 TABLE 3 FOOT'S GENERIC COST PER MILE MODELS ......................................................... 8 TABLE 4 SOUTH MIAMI TCEA PLANNING EFFORT (PRELIMINARY) ................................... 13 TABLE 5 SOUTH MIAMI MMTD PLANNING EFFORT (PRELIMINARY) .................................. 15 Figures FIGURE 1 CITY OF SOUTH MIAMI BOUNDARy ...................................................................... 3 FIGURE 2 CHANGES AFTER THE REPEAL OF THE GROWTH MANAGEMENT ACT ........... 4 FIGURE 3 SOUTH MIAMI URBAN INFILL & REDEVELOPMENT AREA .................................. 7 FIGURE 4 SOUTHWEST VIEW OF SOUTH DIXIE HIGHWAY ................................................. 8 FIGURE 5 MIAMI-DADE COUNTY TCEA COMPREHENSIVE PLAN COMPARISON .............. 11 FIGURE 6 MULTI-MODAL TRANSPORTATION OPTIONS IN AND AROUND SOUTH MIAMI12 FIGURE 7 MUL TIMODAL TRANSPORTATION DISTRICT CHECKLlST. ................................. 16 FIGURE 8 POLICE, FIRE, AND HOSPITAL FACILITIES IN SOUTH MIAMI. ............................ 18 FIGURE 9 ANNUAL AVERAGE DAILY VOLUMES FOR URBANIZED AREAS ........................ 20 aker Concurrency Review Study City of South Miami CONCURRENCY REVIEW Introduction In September 2013, the City of South Miami (City) contained approximately 2.31 square miles of land, had an estimated population of 11,998,1 and was one of 34 incorporated municipalities in Miami- Dade County (County). Together, the 34 incorporated municipalities covered approximately 217.59 square miles and the unincorporated areas covered approximately 1,761.77 square miles.2 In January 2013, the County reported a total population of 2,496,435 with 1,102,955 individuals living in unincorporated areas and 1,393,480 individuals living in incorporated municipalities. As such, the City contained approximately 0.12 percent of the County's land and 0.48 percent of the County's population (varies slightly depending upon data source). Figure 1 illustrates the boundary of the City, which is located adjacent to the City of Coral Gables to the east and the Village of Pinecrest to the south, but is mostly surrounded by unincorporated areas. The County is responsible for providing public facilities and services to most of the residents and businesses in the unincorporated areas. This places a large burden on the County's resources, and in some unincorporated areas, has resulted in lesser quality or lesser convenient access to public facility facilities and services (e.g., police response times) than are typically provided in the incorporated municipalities. On November 20, 2012, the Board of County Commissioners unanimously approved Resolution No. R-983-12, Resolution Creating Task Force to Review Pending Annexation and Incorporation Proposals and to Make Recommendations on How the County Should Proceed to Address the Remainder of the Unincorporated Communities. The intent was to create an Annexation and Incorporation Task Force that would provide the County with recommendations on how the remainder of the unincorporated areas could either create new incorporated municipalities or be annexed by an existing one. This was similar to what has been long encouraged by Broward County in order to allow more localized municipalities address and implement policy for their own localized issues, thereby allowing Broward County to concentrate on more regional issues. In recent years, the City has made proposals to annex some of the surrounding unincorporated areas (primarily those just north and south of the City boundary), but those proposals were temporarily set aside until further studies could be completed to analyze public sentiment, financial feasibility, and other factors. As the City continues to consider annexation opportunities and also new development opportunities within its current boundary, it was necessary to review the City's concurrency review procedures and Levels of Service (LOS) standards that are in place to ensure that adequate public facilities and services continue to be maintained. The purpose of this study is to analyze concurrency requirements within the City for 1 2013 Impact Fees: Demographic Memo, TischlerBise, August 28, 2013. 2 The square miles were calculated from GIS parcel data that was obtained from Miami-Dade County. aker 1 Concurrency Review Study City of South Miami CD new development, redevelopment, and revitalization project proposals and to present urban planning concepts that may be considered by the City to potentially increase the viability and number of such project opportunities. The remaining sections of this study cover the topics below. The City should use the information presented to determine whether some of their existing policies can be modified to be less restrictive for new development proposals (e.g., whether programs can be implemented to reduce impact fees). The information should also be useful for understanding some of the implications associated with annexing potential unincorporated areas in terms of maintaining adequate LOS standards for public facilities and services within those areas. • Brief History of Florida Law • South Miami Concurrency Management System • Citywide Transportation Capacity Assessment • Transportation Concurrency Exception Area (TCEA) • Multimodal Transportation District (MMTD) • Specialty Levels of Service (LOS) Analysis • Summary and Recommendations Brief History of Florida Law The 1985 Florida Growth Management Act (GMA) was passed, largely in part, to make sure that all of the state's citizens were afforded access to adequate public facilities and services. The GMA required local governments to develop state-approved comprehensive plans that included LOS standards and goals, objectives, and policies for various elements (land use, transportation, open space, etc.). The GMA also required local governments to perform concurrency reviews for certain development proposals. Concurrency was mandated by the state to make sure that adequate public facilities would continue to be provided after new developments are constructed. For example, if a new development would result in increased traffic on local roads and 500 new residents to a local population, a concurrency review may determine that impact fees would be required to pay for improved roadway infrastructure and new park facilities. Governor Rick Scott repealed the GMA in 2011 which subsequently left it up to local governments approve their own comprehensive plans and LOS standards. The Governor felt that the GMA was prohibitive to economic development in the state and was also a contributing factor to sprawl because many businesses decided to develop outside of congested urban areas where they would not be subject to significant impact fees (if any) -specifically those that would be determined during the transportation concurrency process that was previously mandated by the state. However, the City continues to be subject to various state laws that pertain to concurrency review procedures that are described throughout this study. Figure 2 highlights some of the changes that occurred following the repeal of the GMA. aker 2 Concurrency Review Study City of South Miami Figure 1 City of South Miami Boundary Rd Unincorporated o Coral Gables sw 0' "" South Miami ':} > ;; SVIJ 70th St 1 SW72nd Unincorporated Pinecrest Source: Michael Baker Jr., Inc., 2013. aker 3 Concurrency Review Study City of South Miami Figure 2 Changes After the Repeal of the Growth Management Act The CbaDges: Old vs. New L&NDUSEPLANCHANOES OLD (1986-2010) Required approval from rhe Florida Department of community Affairs. Staffed by 61 planners and fklrllfa 'llPartIItfIK Of CotlIm!Jldty Artaln NEW (AS OF OCll. 20U) Can only object on grounds of negaUve impact to "important stilte resources and facilities,.'" now !.mdeflmJd, Staffed bl' planners and assistants. PUBLIC SERVICES" DEVELOPER FEES OLD Developers were H:lQuired to for to schools, rkll'ks, and sewer would cause to Source: Northeast Florida Regional Council aker 4 Concurrency Review Study City of South Miami South Miami Concurrency Management System Florida Statute 163 .3180(1 b), Concurrency, states that "The local government comprehensive plan must demonstrate, for required or optional concurrency requirements, that the levels of service adopted can be reasonably met. Infrastructure needed to ensure that adopted level-of- service standards are achieved and maintained for the 5-year period of the capital improvement schedule must be identified pursuant to the requirements of FS 163.3177(3). The comprehensive plan must include principles, guidelines, standards, and strategies for the establishment of a concurrency management system." In other words, every local government is responsible for making sure their five-year capital improvement schedule is tailored such that improvements will be conducted to maintain the LOS standards set forth in the comprehensive plan. As new development, redevelopment, and revitalization projects occur in the City, the capital improvement schedule may need to be adjusted to account for maintaining consistent LOS standards for public facilities. Therefore, the City's concurrency management system is used to track and assess when public facilities and services may fall short of the adopted LOS standards and to determine what capital improvement projects may be necessary to combat those impacts. The Land Development Code of the City of South Miami describes the City's current concurrency review procedures. The Land Development Code indicates that "A development permit, Certificate of Completion (CC), Certificate of Occupancy (CO), or Certificate of Use and Occupancy (CU) shall not be issued when Level(s) of Service (LOS) for public services and facilities do not meet or exceed LOS standards, or when the issuance of a development permit and/or CC and/or CO and/or CU would result in a reduction of the actual LOS for any service or facility below the established LOS standards ... " Table 1 shows the concurrency review requirements for the City -specifically what types of projects require a concurrency determination. Concurrency determinations are conducted by the City, County, and other applicable agencies to review potential impacts to streets, sewage, water, drainage, solid waste, and recreational facilities. Table 2 summarizes the current LOS standards as identified in the Land Development Code. Consequently, non-exempt projects are subject to concurrency reviews that compare the development proposal to the LOS standards for each category shown. Table 1 Concurrency Review Requirements in South Miami Non-Exempt Projects (Concurrency Required) Exempt Projects (No Concurrency Required) • New development on vacant land. • Changes in use which clearly do not cause an • Building additions which increases gross floor area increase in demand upon any public facility (or by 5,000 square feet or more and increases public which cause a reduction in demand) and that do not facility usage. require more than 25 parking spaces. • Changes of use which increase required parking by • Single-family and two-family residences on 25 spaces. previously platted lots. • Public uses that the City Commission finds essential to the health and safety of city residents. • Projects approved prior to the adoption of the Land Development Code on October 26, 1989. Source: Land Development Code of the City of South Miami. aker 5 Concurrency Review Study City of South Miami Table 2 South Miami LOS Standards Streets -South Dixie Highway -150% of "D" Capacity -Bird Road -120% of "E" Capacity -Principal and Minor Arterials (Sunset Drive, Red Road, and Kendall Drive) -"F" Capacity -Collectors (SW 48th Street, Miller Drive, SW 62 nd Avenue, and Ludlam Road) -"E" Capacity (except those located in the County's Urban Infill Area" which are exempt from concurrency review) -Certain projects are exempt if they are located in the County's Urban Infill Area (see the note at the bottom of the table for a general description of the various capacity levels) Sewage -Disposal system shall operate with a deSign capacity of no less than 2% above the average daily flow for the preceding year (as determined by the County) -The County system maintains capacity to collect and dispose of 100 gallons of sewage per capita per day. -Properties without sewers must obtain a septic tank permit from the County Health Department. Water -Water system shall operate with a rated capacity of no less than 2% above the maximum daily flow for the preceding year (as determined by the County). -Water is delivered at a pressure no less than 20 PSI and no greater than 100 PSI and minimum fire flows must be maintained as approved by the County Fire Department. -The County system maintains capacity to deliver up to 200 gallons per capita per day. Drainage Any development must adequately accommodate runoff from the i-day, 1-in-1 O-year frequency storm. Solid Waste The County solid waste system shall maintain a minimum capacity of 5 years, or capacity as determined by the County to be sufficient. A generation rate of 7 pounds per person per day may be used for calculation. Recreation The public (City and school board recreational lands) park land within the City shall equal at least 4 acres per 1,000 persons. Source: Land Development Code of the City of South Miami. Note: LOS capacity levels for streets range from "A" to "F" and depend on the number of lanes and the average daily traffic volumes. LOS "A" is generally a free flow street with low traffic volumes and high speeds, whereas LOS "F" describes forced flow operation at low speeds where stoppages may occur for short and long periods of time. Because much of the City is already fully-developed with relatively aging infrastructure, it can be difficult for the City to attract new development opportunities that would result in a significant economic boost for the community. In addition to the costs required for a company to construct a new facility that may bring numerous jobs and/or residents to the City, under the current concurrency review requirements, the company may have to pay significant impact fees to modernize the infrastructure to maintain adequate LOS standards for public facilities and services. As mentioned in Table 2, certain projects are exempt from transportation concurrency if they are located within the County-designated urban infill and redevelopment area, which is depicted in Figure 3. That area is part of the County's TCEA, and as such, projects that encourage use of public transportation are exempt from transportation concurrency if they are consistent with the City's comprehensive plan. Furthermore, the entire City is located within the County's TCEA and certain projects in other parts of the City are also exempt from transportation concurrency, but the requirements for project exemptions are more stringent if they are located outside the urban infill and redevelopment area. Since impact fees for maintaining adequate LOS standards for transportation can be significant in a congested urban area, the state provides municipalities with other options to emphasize and plan for enhanced multimodal transportation infrastructure projects (public transportation, pedestrian, bicycle, etc.), one of which is by implementing a TCEA, in order to reduce congestion on local roads. Those options are also explored later in this study. aker 6 Concurrency Review Study City of South Miami Figure 3 South Miami Urban Infill & Redevelopment Area ti City Boundary ~ ~ ~' Source: Michael Baker Jr., Inc. Citywide Transportation Capacity Assessment The previous section identified the current LOS standards for various roads within the City. In order to determine if roadway projects could be conducted to enhance capacity (e.g., by adding additional lanes), Michael Baker Jr., Inc. (Baker) performed a general assessment of the existing roadway infrastructure. The assessment consisted of a Google Earth street view tour of the City to determine if there were cost-feasible opportunities to add additional lanes or to conduct large- scale roadway modifications to improve traffic flow. As shown in Figure 4, because the City is largely built-out with existing infrastructure, road edges tend to be close to buildings, parking lots, and other features that severely limit roadway expansion possibilities. For example, within this view of South Dixie Highway, the M-Path multi-use trail and the elevated Metrorail track prevent expansion of the southbound lanes, whereas buildings and parking lots prevent expansion of the northbound lanes. Although this is only one view of the City's roads, it was provided to illustrate that limited options for wholesale corridor improvements are available aker 7 Concurrency Review Study City of South Miami within the City, unless a significant amount of property acquisition and demolition is conducted. It is noted that Baker only conducted a wholesale corridor assessment and did not conduct an intersection by intersection analysis to determine if signalization, signage, and tum lane improvements could be conducted in some locations to ease traffic congestion. For reference purposes, various construction "Cost Per Mile" estimates are provided in Table 3 from the Florida Department of Transportation's (FOOT) Generic Cost Per Mile Models worksheet (updated April 8, 2013). The estimates are representative of the entire state of Florida and do not include the additional costs that would be required for design, property acquisitions, demolitions, utility relocations, etc. Due to the extreme costs and impacts that would be associated with roadway widening, the City is actively considering conducting multimodal transportation improvements that would encourage greater use of bicycle, pedestrian, and mass transit facilities with the goal of placing less emphasis on automobile utilization, which is discussed in the following sections of this study. Figure 4 Southwest View of South Dixie H.t'.nUI!:II\I Table 3 FOOT's Generic Cost Per Mile Models Description Cost Per Mile Add 2 Lanes to Existing 2 Lane Urban Undivided Arterial (1 Lane Each Side) with $3,472,028 4' Bike Lanes Widen 2 Lane Urban Arterial to 4 Lane Divided with 22' Median & 4' Bike Lanes $4,065,273 Add 2 Lanes to Existing 3 Lane Urban Undivided Arterial (1 Lane Each Side) with $3,637,222 Center Turn Lane & 4' Bike Lanes Widen 4 Lane Urban Divided Arterial to 6 Lane Urban Divided with 22' Median & 4' $3,774,587 Bike Lanes Widen 6 Lane Urban Divided Arterial to 8 Lane Urban Divided with 4' Bike Lanes $4,276,798 Two Directional, 12' Shared Use Path $231,279 Sidewalk Construction -5' One Side, 4" Depth $110,392 Source: FDOT's Generic Cost Per Mile Models worksheet (updated April 8, 2013). aker 8 Concurrency Review Study City of South Miami Transportation Concurrency Exception Areas (TCEA) As previously mentioned, the entire City is located within the County's TCEA. The 2009 Community Renewal Act (CRA) classified the entire County as a TCEA as well as all local governments qualified as Dense Urban Land Areas (DULAs), which is a classification that is determined based on specific population and density criteria. Eight DULA counties were identified in the CRA including Miami-Dade, Broward, Palm Beach, Orange, Seminole, Lake, Hillsborough, and Pinellas. Non-rural areas within those counties were identified as TCEAs (except Miami-Dade which was entirely identified as a TCEA). Within the TCEAs, there is no longer a state-mandate requiring local governments to conduct transportation concurrency and to collect impact fees from developers; rather, the CRA allowed local governments to collect mobility fees from developers in order to implement multi modal transportation projects that are intended to reduce vehicular traffic. Although the City is currently designated as a TCEA, it is still subject to transportation concurrency review in order to maintain the adopted LOS standards -unless a proposed development is exempt per the requirements of the County's TCEA. If the City wanted to expand upon its ability to exempt development proposals from transportation concurrency, it would need to update its comprehensive plan to include various elements required for the establishment of a TCEA, as described in this section. It is noted that FDOT, the Florida Department of Economic Opportunity (DEC), and the County Planning Department should be consulted to determine what type of planning effort is appropriate for the City considering the City's intentions to ease development restrictions and hefty transportation impact fees. In short, the TCEA is intended to offset the adverse impacts of transportation concurrency by encouraging the development of multimodal transportation infrastructure through a variety of planning strategies that must be incorporated into a comprehensive plan. If a TCEA is adopted by the City, then new developments in the subject area are not subject to a transportation concurrency review as long as they are consistent with the adopted comprehensive plan. There are five specific types of areas that may be designated as a TCEA and the comprehensive plan must address different objectives and policies for each: 1) urban infill area, 2) urban redevelopment, 3) downtown revitalization within the central business district, 4) urban infill and redevelopment area, and 5) an urban service area (i.e., an area intended for public facilities). In order to establish a TCEA, it must be documented in a local government's comprehensive plan and must also be compatible with the various elements of the plan. The comprehensive plan must provide support for the size and boundaries of the TCEA including a traffic study that considers existing conditions as well as future conditions after multimodal transportation strategies are implemented. It is noted that a TCEA may cross jurisdictional boundaries and that the comprehensive plan must address subsequent impacts that may occur outside the TCEA after multimodal transportation projects are carried out (as well as to the Florida Interstate Highway System). The February 2007 report by the Florida Department of Community Affairs (now the DEC) titled A Guide for the Creation and Evaluation of Transportation Concurrency Exception Areas describes the basic TCEA elements that must be included in a comprehensive plan, as listed below. aker 9 Concurrency Review Study City of South Miami • ~ Support Mobility • 1&1 Fund Mobility • Support the Purpose of the Designation (urban infill, urban redevelopment, downtown revitalization, urban infill and redevelopment) • Implement Alternative Modes of Travel • ~ Demonstrate How Mobility will be Provided • Address Urban Design • ~ Identify Appropriate Land Uses Mixes • ~ Establish Minimum Intensity and Density Standards for Development • I8J Address Network Connectivity • !?J Mitigate Impacts to the Strategic Intermodal System (SIS) EZI = Covered in the City's Comprehensive Plan I&l = Not Covered in the City's Comprehensive Plan The 2007 report also includes a detailed evaluation of the County's TCEA and how the comprehensive plans of its various local governments address their role within the TCEA. As shown in Figure 5 and also in the bullet list above, the City's comprehensive plan is currently missing many of the elements identified as basic TCEA requirements. Figure 6 illustrates some of the City's existing multimodal transportation infrastructure. Generally speaking, in order to be designated as a TCEA, the City would have to develop a more detailed multimodaI transportation infrastructure plan that is financially-feasibible and that supports greater mobility for public transportation, pedestrians, and bicyclists in the TCEA. By implementing such a plan, the City would have a guidebook for better supporting, funding, and managing mobility projects that would reduce vehicular traffic (thus reducing impact fees and creating additional development interest). As part of this study, the City requested information on the level of effort that would be necessary to update its comprehensive plan to include the required TCEA elements. Baker. prepared the preliminary cost estimate in Table 4, including general descriptions of the associated effort, to assist the City with determining the appropriate level of effort for such a comprehensive plan update. aker 10 Concurrency Review Study City of South Miami Figure 5 Miami-Dade County TCEA Comprehensive Plan Comparison Goals, objectives, and policies that support Miami-Dade's TCEA (purpose: inftll, redevelofment, and transit) Basic TCEA Requirements Other Elements § 'c :?' ,g '" " ,g OJ) .0 "f5. c: Cl '" lli '" ;:. ;:. <!) l- iD OJ) '" '0 ~ '" ';;; (f) '" 0' § _. '" Ii; '0 " '> &'12 " " co 0 " tl OJ t) Ziji '2 OJ) '" £ u " x c " "' 0." '" C l-v ~ c '" " 6 C2 " '" to c I-" '" u '" '" :a c 2:1 c: t) ::;; u ~ c E ~ e. 0> u C ? ~o " 0 '0 x .~ ~ .~ OJ) 0 ;;; " c: t} " ~I-,~ E OJ ~ ~ 8-'"", " E :J 0 c: 0. OJ " '" "" E '" '" '" ° v E -::; '-' " (.) " 8 g ~ " O"l g~ " " "lli " t ~ 0 '§. .£ ~ :2! t: iJ) 1)) ro !2 8:.: c: ,;:; " .-!: 0._ i:o OJ ,£ 0 c: OJ) '" if> "., ::;; 1il ~ e z.g ';;; ro a. .c '" e c: ~ " ,,}; () ~ ::> (f) 15 -' -~IY is "" € n ~ 6ifJ c:;.:{ ~ u ~ Cl. -0::> a~ '" ~ ~ 6 ill '" a. " ro c: c .c 0:: g-ro ~ " '0 0 ~ ::> "' c: !2' oc j .~ c:. 0 ro '-' ~ t5 von 2-E ~ ~~ ~ Q E~ E :g to ," 0" OJ) if> OJ) '" E OJ) of; ,,~ "'"0 Oi OJ) " " " '" .~ " "§ '-' OJ) :o::;~ OJ)t ro-u t E on t 'OJ cu 1))-0 OJ) '" OJ) OJ) !g g~ " 0 ~ Jurisdictions in "'1:> "' ru &g §,§ '" 0 OJ) ~&1 ~.~ §{l OJ) OJ) OJ) OJ) .8 0 o. ,_ u <ll " " §.ro '0 "-'0 ~ Q) '" ~ .~ OJ) " 5: y.?~ "iii iii Urbanlnfill :> 52 '0 0, c: U'i..,.. " c. c .2 c: E> i5~ "0 C C C C C 0 oil(f) > § ~g => "' '" OJ 0. 6l " u '" i'i5" ~~ ~ ~E ~ ~ '" o ,u r~ ~ "' Area1 0 <{l5. (f)", Of; (f) u.. J:J::; tI, _.J~ "i ~I-j;: 0 '0 1-- Miami-Dade County 2 X X X X X X X X X X Aventura 2 X (if X X X X X X X Bal Harbour 0 X Bay Harbor Islands 0 X Biscayne Park 0 Coral Gables 2 X X X X X X X EI Portal 0 X Golden Beach 0 Hialeah 0 X X X X X X X X X Indian Creek Village 0 Key Biscayne 0 X Medley 0 Miami 2 X X X X X X X X x Miami Beach 0 X X X X X X X Miami Gardens 0 X X X X X X X X X X X X X X Miami Lakes 0 X X X X X X x Miami Shores 0 X X (3) X (3) Miami Sprin9,s 0 X X I"' X X (3) North Bay_Village 0 North Miami 3 X X X X X X X X X X X X X North Miami Beach 0 X X X X X X X X X X Ope-Locka 0 X X Palmetto Bay 0 X X X X X X Pinecrest 0 X X X X X South Miami 2 X X X X X X X Sunny Isles Beach 0 Surfside 0 X Virginia Gardens 0 West Miami 0 X Rating Scale o -Does not mention a TCEA or references the future designation of a TCEA. 1 -Designates a TCEA but addresses few if any of ttle evaluation criteria, 2 -Mentions the TCEA in basic detail. Satisfaction of the evaluation criteria is not linked to the TCEA 3 -Provides explicit detail on the TCEA. Satisfaction of the evaluation criteria is linked to the TCEA. (1) Coral Gables and North Miami are Included on In thiS table to provide additional information on their Independent TCEAs, They are also included in the Table 5. US 0 l- Q) :S £' OJ) u il '0 c: ru ljj (jJ 0 -' OJ) " m ::> X X X X (2) Policies 4.1 and 4.2 of the Transportation Element state that Aventura will implement a local public transit system to operate exclusively within the local TCEA, (3) Miami Shores Transportation Element Policy 1.12 and Miami Springs Transportation Element Policy 1.1.8 set a priority to evaluate the potential effectiveness of TCEAs and/or TCMAs but do not actually designate either one in either city. (4) RCEA'" Redevelopment Concurrency Exception Area UDB = Urban Development Boundary UIA '" Urban Infill Area Source: A Guide for the Creation and Evaluation of Transportation Concurrency Exception Areas, Florida Department of Community Affairs, February 2007. aker 11 Concurrency Review Study City of South Miami Figure 6 Multi-Modal Transportation Options in and Around South Miami ~ i ,...".. oSir,,!l,,-.o 0 ft r --t::~~ <'II 40" 51" Legend.. o~ uL'·~ .~ -!.~I:' .. ~ "'. ~, ::r Metrorail Stations » • ~, , Bus Stop Sl~D4ath rl Curb Bike Lane ~ Paved Bike Path .(erw~;,J .. ..... .. "11'"'' c:J City Boundary q aker ~ ... --....... .. • Source: Michael Baker Jr., Inc., 2013. 12 • 9,_ • • • ~ • f 0 41' ... l t «( St N Concurrency Review Study City of South Miami Table 4 South Miami TCEA Planning Effort (Preliminary) ; TCEA Com rehenslve Plan Element General Descr! tlon Estimated Cost rehmma Identify and illustrate alternative modes of transportation, parking management strategies (particularly in the downtown area where merchants feel that parking is currently deficient), transient-oriented design standards, land use strategies, interconnectivity plans between various modes of transportation, etc. Several concepts will be evaluated to determine a refined 181 Support Mobility mobility concept that best integrates the various transportation modes in a way that encourages reduced automobile traffic on $30,000 local roads. It will be necessary to minimize the mobility impacts to surrounding jurisdictions as part of this process. The existing bikeway plan and other elements within the City's comprehensive plan will also be reviewed for consistency with TCEA requirements. A financially-feasible capital improvement funding system identifying sources such as public investment through redevelopment 181 Fund Mobility taxes or grants, parking revenues, private investment by developers to fund the TCEA improvements, and other sources. This $15,000 may include a cash flow analysis to illustrate the City's ability to afford the implementation of multimodal transportation P!ojects. o Support the Purpose of the Designation (urban infill, urban redevelopment, Provide the justification for identifying various portions of the city as one of the allowable TCEA categories (including size, downtown revitalization, urban infill and redevelopment) purpose, and goals). Although the City's comprehensive plan currently provides some of this information, the TCEA planning $5,000 effort will include a review of all areas of the City that could potentially be eligible for being designated as a TCEA. A detailed implementation schedule will be identified for each mode of transportation identified. Although the City's I;;] Implement Alternative Modes of Travel comprehensive plan currently contains policies for supporting and funding mobility projects, it will be necessary to review the $5,000 previous analyses for consistencywith TCEA requirements. 181 Demonstrate How Mobility will be Provided This component elaborates on the implementation schedule by identifying any committed funding agreements (public or $5,000 private) to illustrate how and when the mobility projects will be provided. [Y'1 Address Urban Design The City's comprehensive plan currently addresses design guidelines for accessibility to transit facilities. Detailed design $20,000 specifications must be identified in order to develop a plan that supports and implements the mobility strategies for the TCEA. Land use strategies will be identified in order to encourage mobility within the TCEA and to reduce focus on automobile 181 Identify Appropriate Land Uses Mixes transportation. The key is to encourage walking and biking within the TCEA, so complementary land use mixes will be $10,000 identified in order to accomplish that Qoal. 181 Establish Minimum Intensity and Density Standards for Development Intensity and density standards will be identified in order to effectively manage traffic flows within the TCEA (e.g., residents and employees per acre). $5,000 I8l Address Network Connectivity Connectivity between the identified mobility strategies and the greater metropolitan area also need to be identified. As such, it $5,000 will be necessary to consider how all of the mobility strategies fit into similar networks in the surrounding communities. The SIS in Florida is made up of strategic transportation facilities that are used for the movement of people and goods (e.g., o Mitigate Impacts to the Strategic Intermodal System (SIS) commercial airports and freight rail lines). FOOT will be contacted to determine what SIS facilities are located in the City and $5,000 surrounding areas, and the mobility strategies will attem~t to minimize im~acts to those facilities. General Coordination, Meetings, and Documentation Throughout the TCEA planning process, regular coordination and meetings with FOOT and City staff will be necessary. It is $15,000 anticipated that public meetings and City Council meetings will also be conducted. Total (Preliminary) $120,000 Source: Michael Baker Jr., Inc., 2013. I;;] = Covered in the City's Comprehensive Plan I8l = Not Covered in the City's Comprehensive Plan aker 13 Concurrency Review Study City of South Miami EZ Multimodal Transportation Districts (MMTD) Similar to TCEAs, MMTDs are intended to reduce automobile traffic by assigning primary priority to other modes of transportation. FDOT's Multimodal Transportation Districts and Areawide Quality of Service Handbook (Handbook) describes the requirements necessary for a municipality to establish a MMTD. Like TCEAs, comprehensive plans must be updated to include plans for implementing alternative modes of transportation (public transit, pedestrian, bicycle, etc.), but unlike TCEAs, comprehensive plan updates for MMTDs adopt LOS standards for those alternative modes of transportation. The intent of the MMTD is to reduce transportation impact fees by reducing automobile traffic. The collection of impact fees is typically used to pay for the planned improvements to the MMTD (e.g., additional bike lanes) and not necessarily for roadway improvements that would provide additional vehicular capacity. When a new development is proposed within a MMTD, it is subject to transportation concurrency review and the associated LOS standards for all modes of transportation identified in the comprehensive plan (within TCEAs, projects are exempt from transportation concurrency because multimodal strategies are already in place to reduce traffic). Unlike TCEAs, MMTDs are not limited to urban infill and redevelopment areas. The Handbook identifies the following basic criteria for a MMTD: • Provision of a complementary mix of land uses including residential, educational, recreational, and cultural uses. • Provision of an interconnected network of streets designed to encourage walking and bicycling with traffic calming where desirable. • Provision of appropriate densities and intensities of land uses within walking distance of transit stops. • Provision of daily activities within walking distance of residences; public infrastructure that is safe, comfortable, and attractive for pedestrians; adjoining buildings open to the street; and parking facilities structured to avoid conflict with pedestrian, transit, automobile, and truck travel. • Provision of transit service within the designated area, or a definitive commitment to the provision of transit. This definitive commitment should be found in local planning documents and in the approved capital improvements program. For new developments, transit connectivity to the major urban area must also be included, or a definitive commitment for transit connections, again evident in both planning documents and the approved capital improvement program. Baker prepared the preliminary cost estimate in Table 5, including general descriptions of the associated effort, to assist the City with determining the appropriate level of effort for a MMTD planning effort (in accordance with the Handbook). Figure 7 identifies the successful indicators for establishing a successful MMTD. aker 14 Concurrency Review Study City of South Miami Table 5 South Miami MMTD Plan'ning Effort (Preliminary) MMTD Element General Descr! tlon Estimated Cost rehmma The MMTD will be defined as part of this element and various maps of existing conditions and multimodal transportation Assess Scale of Development infrastructure will be presented. Current demographic and land use information will also be inventoried and preliminary goals $10,000 and objectives will be defined. A detailed analysis of land uses within the MMTD will be conducted to make sure that they would encourage a safe, attractive, Analyze Land Use Mix and Organization and comfortable environment for pedestrians. It will be key to include residential land uses in the MMTD because they are $10,000 typically the most likely to utilize multimodal transportation features for routine activities (e.g., visits to grocery stores and restaurants ). As part of this element, the existing multimodal infrastructure will be evaluated within the City based on the previous land use analysis. It will be used to analyze where potential shortfalls in connectivity exist that would not allow convenient access Analyze Network Connectivity between complementary land uses that would encourage mobility. The results of this element will be used to define the modal $25,000 network. It is antiCipated that GIS will be utilized to conduct various path analyses between complementary land uses and preliminary LOS standards will be identified. Surveys of local citizens and businesses may need to occur in order to obtain perceptions about use of multimodal transportation infrastructure. Based on the results of the network connectivity analysis, areas where there are shortfalls in mobility will be identified for Define Modal Network pedestrians, bicyclists, and other users of public transportation. Those Shortfalls can then be used to develop modal networks $25,000 that are intended to resolve deficiencies and provide strategic multimodal facilities throughout the City. This element will include a detailed determination of LOS standards for the various multimodal transportation facilities, which Areawide Quality/Level of Service Analysis will ultimately be included in the comprehensive plan, land development code, and concurrency review procedures. In addition, $20,000 an Areawide Quality of Service (QOS) analysis will be conducted, which is the overall measurement of perceived performance of service from the user's point of view. Final Evaluation of Proposed Multimodal Transportation District This is the final evaluation to determine if the proposed area is a good candidate for a MMTD. It is basically a checklist to see if $10,000 the proposed area meets all of the "Indicators for a Successful District" as shown in Figure 6. General Coordination, Meetings, and Documentation Throughout the MMTD planning process, regular coordination and meetings with FOOT and City staff will be necessary. It is $15,000 anticipated that public meetings and City Council meetings will also be conducted. Total (Preliminary) $115,000 Source: Michael Baker Jr., Inc., 2013. aker 15 Concurrency Review Study City of South Miami Figure 7 Multimodal Transportation District Checklist Cliteria for a Multimodal Indicators for a Successful Contra-Indicators Transportation District District for a Dishict • Size of District too • Min. Residential Pop 5,000 small or too large to Appropriate Scale of • Minimum Population/Jobs support appropriate Development Ratio: 2 to 1 intensities and • Provision of scheduled transit densities • No transit service • 3 or more significant land Complementary Mix of Land uses Single Land Use Uses Physical integration of • • components Land Uses Promoting • Land uses that are mutually Single Land Use supporting • Multimodal Usage • Different land uses are located within the typically • Land uses spaced Acceptable Separation of Land acceptable range for walking too far apart for Uses (1/4 to Y:, mile) typical pedestrian comfort • Minimum of 4 residential units • Less than minimum Appropriate Densities and per acre for marginal potential residential units per Intensities of Land Uses • Minimum of 40 employees acre and minimum per acre for marqinal potential employees per acre • Core area of activities and services Isolated or Appropriate Organization of • • Activity centers along scattered Land Uses corridors concentrated at key Development intersections promoting transit usaqe Regionallntermodal • Regional intermodal • No regional Connectivity connections present intermodal service • Each modal network meets connectivity index standard • Poor Connectivity Interconnected Multimodal using polygon methodology: on modal networks Network recommended minimum of 50 • Unconnected street polygons per square mile pattern with cul-de- • Connected street pattern, sacs and dead ends generall'Lgridlike • Meets recommended Level of Service standards for each mode • Transit oriented development Acceptable Levels of Service pedestrian, transit, and • Poor Level of for Each Mode bicycle LOS of C Service • Non-motorized oriented development pedestrian and bicycle LOS of C and transit LOS of 0 Acceptable Areawide Quality Areawide Quality of Service Poor Level of Service of Service for each Mode meets recommended standards Source: FOOTs Multimodal Transportation Districts and Areawide Quality of Service Handbook. aker 16 Concurrency Review Study City of South Miami Specialty Levels of Service (LOS) Analysis As the City continues to consider options to annex surrounding unincorporated areas and also to increase mobility within the current City boundary, it was important to review LOS characteristics for emergency services (police, fire, and EMS) as well as for multimodal transportation features (pedestrian, bicycle, and public transportation). No recommended LOS standards are provided in this section -only qualitative information is provided such that the City can gain a preliminary understanding as future options are weighed. Emergencv Services LOS Analvsis Figure 8 illustrates the existing presence of police, fire, and hospital facilities in the City. This section reviews LOS for emergency services within the City. As annexation continues to be considered, the City, County, and other emergency services entities may use this information to help understand what additional staffing, equipment, and facilities may be needed to allow for adequate response times for existing and new City residents and businesses. Police -Within the City, police services are provided by the South Miami Police Department (SMPD). The City's Annexation Proposal 2012 document indicates that the SMPD currently has an approximate ratio of five officers for every 1,100 citizens. The document also indicates that average response times by the SMPD are less than two minutes for emergencies and less than five minutes for routine calls, whereas the Miami-Dade Police Department (MDPD) has response times of approximately eight minutes for emergencies and 25 minutes for routine calls in the nearby unincorporated areas. According to the County's Public Safety Progress Report,3 the County as a whole reported an average response time of 8.2 minutes for the MDPD, although the MDPD's Business Plan for Fiscal Years 2012 and 2013 identifies reduced response time as a key objective. Considering the proposed annexation at the time, the SMPD police chief felt that the response times could be maintained with a reduction in the ratio to four officers for every 1,100 citizens and indicated that the proposed annexation area is not substantially large in size and that the distance travelled would not drastically increase. Although there are many guidebooks available for determining police staffing demands, such as the U.S. Department of Justice's Guidelines for Starting and Operating a New Police Department, the actual procedures are typically based numerous factors including geographical area of patrol, population served, average number of incidents, community goals, budgets, etc. Therefore, the City should continue to monitor its own needs for police services and plan accordingly, similar to what was conducted for the Annexation Proposal. 3 http://www.miamidade.gov/results/public_safety.asp. aker 17 Concurrency Review Study City of South Miami Figure 8 Police, Fire, and Hospital Facilities in South Miami Legend * Police Station rn Hospital ... Fire Station c:J City Boundary aker • ~~ a D Larkin~ommunity Hospital ruv South Miami Hospital m * Source: Michael Baker Jr., Inc., 2013. 18 s! o o j i N Concurrency Review Study City of South Miami Fire and Emergency Medical Services (EMS) -Miami-Dade Fire Rescue (MDFR) provides firefighting and EMS services for the City and surrounding unincorporated areas (from Station 14 in South Miami). Other private companies also provide EMS ambulance and paramedic services within the City and there are two hospitals located in the City (South Miami Hospital and Larkin Community Hospital). The adjacent City of Coral Gables has its own fire department and the ViI of Pinecrest also relies on MDFR. According to the County's Public Safety Multimodal LOS Analvsis Progress Report, the County as a whole reports an average response time of 8.05 minutes for the MDFR. The MDFR's Business Plan for Fiscal Years 2012 and 2013 identifies several measures to reduce response times including constructing new facilities, hiring additional firefighters, purchasing additional equipment, improving communications, etc. The specific MDFR response time within the City is unknown at this time; however, the previously-proposed annexation areas are currently served by MDFR and would continue to be served by MDFR if ultimately annexed by the City. Figure 9 illustrates the generalized annual average daily volumes for Florida's urbanized areas as obtained from the FDOT's 2013 Quality/Level of Service Handbook. FDOT provides LOS classifications for bicycle, pedestrian, and bus modes, but the information does not constitute a standard. If the City decides to implement LOS standards for such multimodal transportation features, the FDOT's Handbook not only provides LOS standards, it also includes suggested design elements for those features. As part of the MMTD planning process (and to a lesser extent the TCEA planning process), it is anticipated that a LOS classification system would be identified and that all roadways within the City would be classified using that system. Thereafter, LOS standards would be adopted and improvements would be focused on correcting shortfalls in the multimodal transportation network. For example, the City of North Miami's Transportation Master Plan utilized the regression-based LOS analysis described in the FDOT's Multimodal Transportation Districts and Areawide Quality of Service Handbook to identify shortfalls in the existing pedestrian and bicycle networks and to develop long-term mobility recommendations. aker 19 Concurrency Review Study : City of South Miami Figure 9 Annual Average Daily Volumes for Urbanized Areas C"'~'-"~'~'"-'"'"-'~~'·H""'_· _. '~-"-~~~"~~~ __ ~_'H-~'~!mr-H--'~~_'-~--'--'-'-_~~_'_H'~--,-~~.H_H'_H-'-__ ""'il BICYCLE MODE! (Multiply motOlized vehicle volumes ShOWH below by Humber of directional roadv.;ay lanes to detenuiue twoMway maximum <,;cl'\'ice volumes.) Paved ShoulderiBicycie Lane Coverage 0-49% 50-84~·o 85-100% B * 2,100 C 2,900 6,700 9,300 19,700 D 7,600 19,700 ·19.700 PEDESTRlAl"l MODE 2 E 19,700 "19.700 ** (I'\'fultiply motorized vehicle \'oiumes shown belovo' by number of directionallOaclv.:ay lanes to detennine two-way maximum .<:.ervice volumes,) Sidewalk Coverage B C D 0-49°'0 * * 2.800 50-84'!-o * 1,600 8.700 85-IOO~/o 3,800 10.700 17.400 BUS MODE (Scheduled Fixed Route)3 (Bu~e., in peak honr ill peak direction) Sidewalk Coverage B C D 0-84% ·5 ::::4 2:3 85-100% >-1 2:3 >2 E 9.500 15.800 >19.700 E ::::2 2: 1 lValues 5110'wn an:: presented as two .. \vay annual avcrage iliIily volumes. for lev~ls ()f service and are fOJ the automobileitruck modes unless specificaUy stated. This table docs not constitute a <,tandflfd and should be used only for general planning applications, The computer models fi'01ll which this table is derived should be u'"cd for more sptXifn: pJallning npplicatiol.lo;.. The table and derivjJlg computer model" shoukl not be: used 1'01' con:idor or iUfersection design .. where more n::fined techniques exist C~~ku1ation'> arc based on plalUling 8pplicariom of the Highway Capacity Manual and the Transit Capacity and Quality of Service Manual :I Levelofsen;ice for tlle bicycle and pedestrian modes ill thi.r, table is based on mun!>er ofmotol'ized vehicles. not tltllllbet'ofbicycli-:,ts ol·pedeo;.trians using the facility. 3 Buses per hOUfSho,\\ll ru:e only for thc:peak hom' in the single direcrionofrlte high:t·traffic flow. "* Call1lOt be achieved using table input value defaults, *'" Not applicable for that level of s(:J.·v.Ne letter grade. For the automobile mode, volumes. greater t11.'lU level of s.ervice D become F bc{:ause imet'secrIDu capacitie:. have been reached, F01' the bicycle mode~ the kvel of ~et'viJ;e lettet: grade (including F) ~ not achievable becllllSC; ther¢: is no maximum vehicle vohuue tlucshold using table input value deL'luh':.. Source: Florida Department of Transportation Systems Planning Office ww\\',dot.state.tlusm!auuingJwstemsi'im:losfdefmlit.shilU Source: FOOT's 2013 Quality/Level of Service Handbook. aker 20 Concurrency Review Study City of South Miami a Summary and Recommendations The following list includes key items that were identified within this concurrency review study: • Concurrency reviews are conducted to make sure that adequate public facilities continue to be provided as new developments occur. The City's concurrency reviews evaluate the impacts to streets, sewage, water, drainage, solid waste, and recreation. • The City is largely built-out and there are limited opportunities for wholesale roadway corridor projects that would improve traffic flows. Consequently, the City has adopted roadway LOS standards that are generally considered inadequate for streets. Furthermore, the City does not currently collect transportation impact fees that would typically be determined through the concurrency review process. • Because no major capacity-enhancing roadway projects were identified, the City should focus on enhancing and encouraging alternative modes of transportation (bicycle, pedestrian, and mass transit), thereby reducing emphasis on automobile utilization. • Although the City is currently located within a TCEA, it does not have the traditional elements of a TCEA that would allow most development proposals to be exempt from transportation concurrency (e.g., the City does not currently have a well-defined and financially feasible multi modal infrastructure plan). The TCEA concept is an older concept and many municipalities are now in favor of establishing a MMTD. • A MMTD is similar to a TCEA, but the MMTD establishes LOS standards for multimodal facilities and allows municipalities to collect mobility fees to pay for multimodal infrastructure (in lieu of conducting transportation concurrency reviews and collecting impact fees). • Additional specialty LOS data was presented for emergency services within the City and also for multimodal facilities. Based on the information presented herein and through discussions with the City, Baker has determined that the existing LOS standards are generally considered inadequate for streets. Because there are limited opportunities for wholesale roadway corridor projects that would improve traffic flows within the City, other options should be pursued that place less emphasis on vehicle utilization. By establishing a MMTD and having a long-term plan for the development of multimodal infrastructure, the City may be able to collect mobility fees to pay for that infrastructure. If successful, that process would eliminate the need for transportation concurrency in all or select areas within the City, as well as the collection of potential transportation impact fees. It is noted that the City is currently conducting an Intermodal Transportation Plan that will evaluate many of the elements of a MMTD study. It may be possible to incorporate the elements of the Intermodal Transportation Plan into a MMTD study to reduce the costs shown previously in Table 5. aker 21 Concurrency Review Study