CC - Agendas - City Council - REGULAR - 10/23/2012

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ATTAHMNTA City of prescdtt,A , Development ofJmpaot Fees,Infrastructure Improvement Klan ,,r} P1 sc o ui A-2 and Associated"Documents&Analyeie and Development of lJtllity gates '-!"wd,��r,,,.M. Task Determine Appropriate Improvements to current facilities related to Allocation th to to Comply with upgrading or updating facilities to maintain current New Statute Requirements service levels, improve service levels or meeting Development impact fees should represent the unit cost more strict regulatory standards by service area. of the service demands new development places on Improvements related to expanding capacity to serve current or future facility requirements. In this task we will new growth. recommend the development impact fee methodology that best reflects the unit cost incurred to serve new Anticipated inflation based on City specific development based on service demand and current and construction cost estimates. future facilities by fee category.A summary memorandum Additional items that will be reviewed within this task of the recommended approach will be developed. include: ask - identify Cft Cost - Work with City Staff to review the land cost Current and future growth-related facility costs need to be estimates that are part of the water and identified to update development impact fees by fee wastewater capital project cost estimates. category and service area. To identify facility needs and - Review the City's current right-of-way dedication costs we will incorporate guidance within ARS§9-463.05 and acquisition policy. affecting facilities eligible for development impact fee recovery. Service level requirements and demand factors - Survey current practices and alternatives based will provide the basis for new facilities and will be on policies of up to five (5) comparable reviewed with the City related to the timing of capital communities will be developed in this task. projects by fee category. Once requested data is provided and evaluated in We will work with City Staff to identify existing facilities previous tasks,the Red Oak Team and the City Project Team will facilitate subsequent meetings with City Staff with excess capacity and document the funding sources for these facilities. We will also review proposed capital and Department Directors who have projects that are improvement plan or other relevant studies to identify thproposed to be funded by development impact fees; growth-related facilities to serve growth over the next ten Meeti meetingseetings, we will d dlisc discuss t heldst at the he followin Cityn offices. During years. Once the growth-related capital improvements mg: have been identified over the ten-year study period,we Service level standards, demand factors and growth will work with City Staff to identify the facilities that are likely to be financed. Financing costs will be determined by fee category and/or service area. by preparing a ten-year cash flow analysis of funding Existing and future facility requirements to meet sources for the capital costs including estimates for projected demand factors over the ten-year study development impact fee revenues and estimated costs period. for growth-related projects anticipated and repayment of existing growth-related debt. Those improvements Capital funding sources, including facilities anticipated to be funded by tax-based revenues anticipated to be financed over the ten-year study generated by new development may require offsets period. developed in subsequent tasks. We will also summarize land cost requirements included in the facility cost Task 5 - Determine Need for & Calculate estimates to assist in the administration of credits. Credits to be lied Against Capital In reviewing planned capital project cost estimates Costs provided by the City and developed by a qualified In this task,we will determine need for and calculate professional licensed in the State of Arizona,we will credits and offsets to be applied against capital costs. allocate the portion of improvements to serve growth Credits for a portion of development impact fees by fee considering: category will be provided for facilities constructed by new ar5an01 Pathways to Lasting Solutions RFD >(� '(.:x