CC - Agendas - City Council - REGULAR - 8/14/2018

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9.H.a City of Prescott, Arizona Non -Utility DIF Study and Associated Documents Non -Utility Development Impact Fee Study Statement of Understanding Raftelis will work with the City of Prescott (City) to evaluate the feasibility of non -utility development impact fees (DIFs), including libraries, streets, fire, police, and parks/recreational facilities City-wide and/or within areas of the City experiencing significant growth. The feasibility evaluation will be presented to staff during a web -based meeting. Based on staff input following the feasibility evaluation, Raftelis will prepare presentation slides for a work session with elected officials to review development projections and recommended non -utility impact fees for further evaluations. After receiving policy directives from elected officials, Raftelis will prepare impact fee documentation that complies with the requirements of the Arizona Revised Statutes (ARS) §9-463.05. DIFs are one-time payments for specific public infrastructure that benefits new development. In contrast to project -level improvements, DIFs fund growth -related infrastructure that will benefit multiple development projects, or the entire jurisdiction (referred to as system improvements). Fees must proportionately allocate infrastructure costs to all types of new development. There are three general methods for calculating development fees. The choice of the best method depends primarily on the timing of infrastructure construction (past, concurrent, or future) and service characteristics of the facility type being addressed. Each method can be used simultaneously for different cost components. Regardless of the methodology, a consideration of "credits" is integral to the development of a legally defensible development fee study. In addition, DIF revenues must be used to fund the type of infrastructure for which the fee was collected, while providing a timely and substantial benefit to new development. To meet infrastructure demands from growth, Raftelis will work with the City to create a Land Use Assumptions (LUA), an Infrastructure Improvement Plan (IIP) and DIFs for up to three types of non -utility infrastructure. While up to five non -utility DIFs are subject to the initial feasibility, Raftelis and City staff anticipate up to three fee types will require the comprehensive calculation and if additional fee types are feasible, Raftelis will work with City staff to develop a contract amendment as may be necessary for the additional services. The proposed scope of services conforms to the requirements of ARS §9-463.05 and legal principles related to DIFs. Attachment: Raftelis Scope of Work -Prescott DIF and Rate Study (2124 : Rate & Fee Study Contract with Raftelis) RAFTELIS Non -Utility DIF Study and Associated Documents - Attachment Page 1 Packet Pg. 244