CC - Agendas - City Council - REGULAR - 3/23/2010

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J-A COUNCIL AGENDA MEMO — 3/23/10 (Supplemental Information) DEPARTMENT: City Manager AGENDA ITEM: Approval of Ordinance No. 4721-1018 superseding Ordinance No. 4665-0908 during the legislative moratorium or further legislative actions regarding the imposition of water and sewer development fees, and declaring an emergency Approved By: Date: , t Regional Programs Director: Craig McConnell �- 3- /e-IO Finance Director: Mark Woodfill City Manager: Steve Norwood v , . Background As discussed in the previous Council agenda memo and March 16th Study Session, Ordinance No. 4721-1018 will not repeal No. 4665-0908 or its effective date, but instead make certain adjustments to the amounts and types of fees being assessed by the City. Key provisions of the Ordinance and implementation to effect compliance with the House Bill (HB) 2008 moratorium are summarized below: • Rollback of impact fees to the amounts on June 29, 2009, the last day prior to HB 2008 becoming effective. • Reinstatement of previous "sewer buy-in fees" which were replaced in Ordinance No. 4665-0908 by new sewer "impact fees" (the imposition of new fees is prohibited during the moratorium) due to suspension of the Ordinance. • Refund of amounts paid on and after July 11, 2009, exceeding the fee levels which were in effect on June 29, 2009. • Emergency clause to expedite compliance with HB 2008. The following actions are also to be taken for items identified at the Study Session: • Refund letters will be sent to the building permit holder, with copy to the property owner. • Sales tax which may not have been paid due to deductibility of the impact fees will be addressed in the refund letters. Permittees and property owners will be notified that the refund may create a sales tax obligation depending upon the nature of the project and which party paid for the permit. Contact information for the Privilege Tax Section of the City Finance Department will be provided to those being notified of eligibility for a refund. • CPI adiustment - due to a lack of internal clarity within HB 2008 (it can be interpreted in more than one way with respect to the CPI adjustment), and given both the current ENR- CCI (CPI) at 1.6% and low number of permits being issued for construction involving impact fees, annual adjustment is effectively a moot issue; consequently, the CPI adjustment provision has been removed from the revised Ordinance (attached). Attachments - Ordinance No. 4721-1018 (revised to remove CIP adjustment clause) - Table of current and rollback fees Recommended Action: MOVE to approve Ordinance No. 4721-1018 with the emergency clause.