HomeMy WebLinkAboutR19-008 Emergency Service Provider Impact Fees - Greater Eagle Fire Protection District Commissioner 0.)41 "i Dt-4-44- - moved adoption
of the following Resolution:
BOARD OF EAGLE COUNTY COMMISSIONERS
COUNTY OF EAGLE, STATE OF COLORADO
RESOLUTION NO. 2019- 0(A
IN THE MATTER OF ADOPTING REVISED EMERGENCY SERVICE PROVIDER
IMPACT FEES WITHIN THE GREATER EAGLE FIRE PROTECTION DISTRICT
WHEREAS,the Board of County Commissioners of the County of Eagle, State of
Colorado (hereinafter the"Board"), is authorized, pursuant to state enabling legislation
including, but not limited to, C.R.S. 30-28-101, et seq., to plan for and regulate the use and
development of land in the unincorporated territory of the County of Eagle, State of Colorado,
for the purpose of promoting the health, safety, convenience, order,prosperity, and welfare of
the present and future inhabitants of the County of Eagle; and
WHEREAS,Greater Eagle Fire Protection District (the "District"), is a quasi-municipal
governmental and political subdivision of the State of Colorado operating pursuant to Article 1,
Title 32, C.R.S. to provide fire protection services within portions of Eagle County; and
WHEREAS,the District relies primarily on revenues from ad valorem property taxes to
provide for their capital needs and to assure that they have available personnel, vehicles, and
equipment to respond and provide fire protection and emergency medical services to the
District's residents and visitors; and
WHEREAS, the Local Government Land Use Control Enabling Act of 1974 ("Act"),
Sections 29-20-101 et. seq., C.R.S., Article 28 of Title 30, and other applicable law grant broad
authority to Eagle County(the "County") to plan for and regulate the development of land on the
basis of the impacts thereof on the community and surrounding areas; and in amending the Act in
2001, the Colorado General Assembly specifically allows local governments to impose impact
fees to offset the cost of capital improvements necessary to serve new developments; and
WHEREAS, Sections 29-1-801 et seq„ C.R.S., concerning land development charges
recognize that counties may collect charges imposed on land development as A condition of the
approval of development, if such charges relate to an expenditure for an improvement, facility,
or piece of equipment necessitated by land development which is directly related to a local
governmental service; and
WHEREAS,the County has adopted as part of the Eagle County Land Use Regulations
Section 4-720, Emergency Service Impact Fees, which provides a program of Emergency
Service Impact Fees to be imposed on development which generates a need for additional
Emergency Service Capital Improvements. The amount of such fee shall be set and revised from
time to time by resolution of the Board based upon an application by an emergency service
provider and supported by a Fiscal Impact Fee Study; and
Eagle County, CO 201902300
Regina O'Brien 02/19/2019
Pgs: 21 03:28:51 PM
REC: $0.00
DOC: $0.00
WHEREAS,pursuant to Resolution No. 2006-075,the Board adopted Emergency
Service Impact Fees for the District to be imposed by the County to mitigate impacts of land
development activities on the provision of fire protection and emergency services.
WHEREAS,the District and the County entered into an Intergovernmental Agreement
on or about July 11, 2006,under Resolution 2006-075 (the "IGA")whereby the County agreed
to collect emergency service impact fees on behalf of the District and transfer such fees to the
District; and
WHEREAS,the County is experiencing high rates of population growth, increased
population density and increased demand for the services provided by the Emergency Service
Provider as a result of land development within the County; and
WHEREAS,the construction of new developments within the territorial jurisdiction of
the Emergency Service Provider is placing significant additional demands on fire protection and
emergency medical services; and
WHEREAS, in June 2017, BBC Research& Consulting completed fiscal impact studies
(the"2017 District Study") (Exhibit A) on behalf of the District, which recommended that the
District's impact fees be increased to ensure adequate fees are assessed to address the demands
on fire protection and emergency medical services. Specifically, such Study determined the net
present value of the capital improvement costs that will be generated by new growth in the
unincorporated portions of Eagle County located within the Emergency Service Providers'
boundaries, and found those costs to be $889 for Nonresidential except lodging(per 1,000 sq. ft),
$889 for Lodging facilities (per 1,000 sq. ft.), $2,206 for Single Family(per dwelling unit)and
$1,008 for Multifamily(per dwelling unit); and these figures represent the capital expenditures
by the Emergency Service Provider necessary to mitigate the impact of population growth from
land development within the Emergency Service Providers' boundaries; and
WHEREAS,based on the 2017 District Study, the District adopted a Resolution
Authorizing the Adjustment of Impact Fees on November 28, 2018 (Exhibit B); and.
WHEREAS, the District thereafter requested that the County make an adjustment to the
amount of the District's impact fees collected by the County pursuant to the IGA to increase such
amount to one hundred percent of the increase identified in the 2017 District Study and an
additional 2.9%to adjust for inflation based on the Bureau of Labor Statistics, Denver-Boulder-
Greeley Consumer Price Index for the second half of 2018; and
WHEREAS,the Board of County Commissioners finds and determines that adoption of
revised impact fees pursuant to ECLUR Section 4-720 for fire protection within the District's
boundaries as contained herein, is necessary and designed for the purpose of promoting the
health, safety, convenience, order,prosperity and welfare of the present and future inhabitants of
Eagle County and is consistent with the County's goals,policies and plans, including the
Comprehensive Land Use Plan.
NOW,THEREFORE, BE IT RESOLVED by the Board of County Commissioners of
the County of Eagle, State of Colorado:
1) That findings and projections contained in the Greater Eagle Fire Protection District
Impact Fee Study, dated June 2017,performed by the BBC Research & Consulting, is
hereby adopted.
2) That the attached Exhibit 'A' containing the calculation for the Emergency Service
Impact Fees to be imposed by the County to mitigate impacts of land development
activities on the provisions of fire protection and emergency medical services is
hereby adopted.
3) That this Resolution shall take effect immediately.
The rest of this page intentionally left blank
MOVED,READ AND ADOPTED by the Board of County Commissioners of the
County of Eagle, State of Colorado, at its regular meeting held the 19 day of February, 2019.
COUNTY OF EAGLE, STATE OF
COLORADO, By and Through Its
BOARD OF COUNTY COMMISSIONERS
ATTEST:
•
124,4;41-04 ba-A By: 617)71(•04....1 Ce G.)
Clerk to the Board of nne McQueeney
civi• Colin, Commissioners Chair4 ,
a '1 '
liAA(
athy dler-Henry
Commissioner
7Matt Sc
Commissioner
Commissioner 50_44—lt_It., seconded adoption of the foregoing resolution. The roll
having been called, the vote was as follows:
Commissioner McQueeney 444h
Commissioner Chandler-Henry •
Commissioner Schen
2)/This resolution passed by 0 vote of the Board of County Commissioners of
the County of Eagle, State of Colorado
BBC
RESEARCH
CONSULTING
Greater Eagle Fire Protection District
Impact Fee Study
Final Report
June 1, 2017
Greater Eagle Fire Protection District
Impact Fee Study
Prepared for:
Greater Eagle Fire Protection District
425 East 3rd Street
PO Box 961
Eagle,CO 81631Commerce City,CO 80022
Prepared by:
BBC Research&Consulting
1999 Broadway,Suite 2200
Denver,Colorado 80202-9750
303.321.2547 fax 303.399.0448
www.bbcresearch.com
bbc@bbcresearch.com
BBC
RESEARCH
CONSULTING
Table of Contents
Impact Fee Design Considerations
Background and Objectives 1-1
Impact Fee Design Requirements 1-1
Fee Applicability 1-3
Other Fee Design Considerations 1-3
II. Impact Fee Calculations
Greater Eagle FPD Budget Overview 11-1
Impact Fee Calculations 11-1
Summary and Recommendations 11-5
BBC RESEARCH&CONSULTING
SECTION I .
Impact Fee Design Considerations
SECTION I.
Impact Fee Design Considerations
This report presents the analysis underlying calculation of proportional development impact
fees for the Greater Eagle Fire Protection District(GEFPD or the District). This section describes
fee design requirements and various implementation considerations.
Background and Objectives
GEFPD provides fire prevention,fire suppression,education,enforcement,inspection,Haz-Mat
response,wildland and emergency services as well as specialized rescue missions including ice,
swift water and mountain rescue.The District serves 194 square miles including the
communities and towns of Eagle,Wolcott,Fulford,and State Bridge in Eagle County and
responds to roughly 800 calls per year.
GEFPD currently collects impact fees on new development based on an impact fee study
conducted in 2006 and updated annually according to the Consumer Price Index.In March of
2017,GEFPD contracted BBC Research&Consulting to calculate proportional and defensible
fees as an update to the current fee schedule.This report documents BBC's analysis and
recommendations for an impact fee system that would recover the proportional capital costs
associated with all forms of new development.
Impact Fee Design Requirements
There isno universally accepted definition of impact fees,but most studies emphasize the fee's
one time use;application to new development;design requirements for proportionality;and
restricted use for infrastructure expansion purposes only:
"Fees collected through a set schedule or formula, spelled out in a local ordinance....fees
are levied only against new development projects as a condition of permit approval to fund
infrastructure needed to serve the proposed development. Impact fees are calculated to
cover the proportionate share of the capital costs for that infrastructure...1"
The key requirements of impact fee design are set by Colorado Statute and a series of United
States Supreme Court rulings.
Colorado requirements.Colorado statutes enable the use of impact fees and dictate the
following fee requirements:
• Impact fees are a one-time payment levied on new development;
• Funds can only be used for growth-related capital infrastructure projects;
1Juergensmeyer,Julian C.,and Thomas E.Roberts.Land Use Planning and Development Regulatory Law.St.Paul,MN:
WestGroup,2003;and ImpactFees.com,Duncan Associates,20 February 2008.
BBC RESEARCH&CONSULTING SECTION I,PAGE 1
D Applicable infrastructure must have at least a five year life;
D No funds can be diverted for operations,maintenance,repair or facility
replacement purposes;
• Fee revenues must be segregated from other general revenues and used for the purposes
for which they were collected;
• Fees must be imposed on all forms of development and cannot be limited to one type of
land use;
• Impact fee revenues must be used for capital infrastructure expansion.No funds can be
used for correction of existing system deficiencies;and
• There must be a reasonable expectation of benefit by the fee payer.
U.S. Supreme Court decisions.Impact fee design must also respect broad guidance offered
by a series of United States Supreme Court rulings.The two most notable court decisions that
speak to impact fee design and constraints on fee use are often referred to as Nollan2 and Dolan3.
Guidance from these decisions requires that there be an"essential nexus"between the
exaction/fee and the state interest being advanced by that exaction.In the more recent Dolan v.
City of Tigard(1994)decision,the U.S.Supreme Court held that in addition to an essential nexus,
there must be a"rough proportionality"between the proposed exactions and the project impacts
that the exactions are intended to mitigate.In Dolan,the court further states that rough
proportionality need not be derived with mathematical exactitude but must demonstrate some
relationship to the specific impact of the subject project:
"We think a term such as 'rough proportionality'best encapsulates what we hold to
be the requirements of the Fifth Amendment.No precise mathematical calculation is
required,but the city must make some sort of individualized determination that the
required dedication is related both in nature and extent to the impact of the proposed
development."
Over the past two decades since Dolan,many communities have imposed impact fees;thus,there
now is a broad set of common practices when considering how best to reflect these judicial and
statutory requirements in fee design efforts.
Fee Applicability
As noted above,impact fee revenues can only be used to cover the expansion costs of public
infrastructure needed to serve new development and fee amounts can only be set to recover the
cost infrastructure expansion that is proportional to the needs of the new project.
2 Nollan v.California Coastal Commission,483 U.S.82;1987 and Dolan v.City of Tigard(1994)114S.Ct.2309.
3 Dolan v.City of Tigard(1994)114S.Ct.2309
BBC RESEARCH&CONSULTING SECTION I,PAGE 2
Public infrastructure. Public or capital infrastructure is the physical component of public
services,generally including buildings,facilities and related improvements,such as parking,
lighting,ball fields or other support facilities. Capital infrastructure includes streets,parks,
administrative facilities,specialized fire or police buildings,and developed recreation facilities.
Under Colorado statute infrastructure can include all equipment that has at least a five-year
lifetime.It does not include personnel or any element of service costs even in circumstances
where new staff is required to operate the new facilities.
Nature of infrastructure investments.In considering fee requirements,it should be noted
that not all capital infrastructure costs are associated with community growth or with the
expansion of facility capacity.Most communities make frequent infrastructure investments
regardless of growth pressures for repair and replacement of facilities.Communities considering
impact fees must recognize three elements of infrastructure needs:
• Repair and replacement of facilities.The expense of maintaining current facilities,such as
annual building maintenance,or replacing a roof.
• Betterment of facilities.Implementation of new services or improvement of existing
facilities(e.g.,adding better training equipment at a recreation center)without increasing
service capacity.
• Expansion of facilities.e.g.,expanding an existing city hall to accommodate growing
personnel requirements occurring in association with community growth.
Impact fees can only cover those infrastructure costs associated with the expansion of facilities
to serve the needs of new growth.
Other Fee Design Considerations
Over time a reasonable consensus has emerged as to how best to assure fee compliance with
state statute and federal court dictates.In order to develop fees,there are three basic
components:definition of community standards;calculation of proportional attribution to new
growth and attribution of infrastructure needs across all major land uses.These issues and their
resolution for this analysis are discussed below.
Setting community standards.The first fee design issue involves determining appropriate
capital standards for each category of infrastructure.Some states'enabling legislation describes
capital standard criteria with specificity;for instance,Idaho requires that a city use an endorsed
capital improvements schedule and then a process of attribution between growth related and
other investments—Colorado does not have this same detailed guidance.Facility standards,such
as library space per household or recreation facilities per household,can vary widely between
communities;thus,it is not appropriate to use standards developed for other towns,or
standards applied nationally.
Calculation methodology. There are two common methodologies employed in order to meet
the standards described above,the current service standard(capital buy-in)and the capital
improvement(plan-based):
BBC RESEARCH&CONSULTING SECTION I,PAGE 3
• Typically,the buy-in fee design process involves documenting the replacement value of
specific capital facilities and qualified equipment used for each category of infrastructure,
and then defining that level of investment as the city's capital standard.For instance,a city
of 2,500 homes with a 20,000 square foot recreation center(capital replacement value of
$5.0 million)would have a recreation center standard of 8 square feet per housing unit
(20,000 sq.ft./2,500 homes=8 sq.ft.per home).At$250/square foot(replacement value of
equivalent space),each existing residence would have an embedded recreational
investment of$2,000 per home.This would be the community's present facility standard
and this is what each new unit could be charged as a"buy-in"amount for a recreational
impact fee.
• In the plan-based fee methodology,the cost of new infrastructure is allocated to new
growth in proportion to that growth's anticipated demand of the infrastructure.This
forward looking approach requires forecasts of households and commercial growth and
detailed data on capital expansion plans.For infrastructure to be eligible for inclusion in the
impact fee calculation,it must meet the requirement that only items with a useful life of five
years or more are designated a fee-eligible capital asset,per CRS 29-20-104.5.4 Any
improvements used to address current service deficiencies or increase the level of service
cannot be included in the fee calculation—in other words,the fee calculations must take
into account the current level of service and exclude any elements of the plan that would
result in a higher level of service.
BBC used the capital buy-in approach to calculate the impact fees presented in this report.This
decision was mutually agreed upon by BBC and the GEFPD as it provides the most accurate and
robust fee calculation methodology given all available information.This methodology is
designed to ensure that infrastructure requirements needed to maintain the current level of
service provided can be replicated in proportion with the demand generated by new growth.
Adjustments for debt.Since facility standards are defined by a community's demonstrated
investment in infrastructure,calculations of community standards must recognize,and net out,
any applicable debt. Debt service will be paid by all future residents—new and old;it's not
appropriate to charge new development a front end impact fee and then charge the same
development again,after becoming residents or property owners,requiring them to also pay the
remaining equity and interest costs.All capital infrastructure amounts used in the fee
calculations are free of any debt financed components.
Fee design cost-recovery.The cost of this study can be recovered through fees and used to
reimburse the general fund.Fee design costs have been included in the District's infrastructure
valuation.
Proportionality.As part of the fee design process it is necessary to ensure that fees only cover
the proportional expansion costs caused by new development. The state statutes and
aforementioned court decisions require a demonstration of proportionality.In this instance,by
using existing infrastructure and service population,then requiring new development to pay
4 Impact Fee Enabling Statute:CRS 29-20-104.5.Local Government Regulation of Land Use.
BBC RESEARCH&CONSULTING SECTION I,PAGE 4
fees at an amount scaled by the current level of service,proportionality is reasonably and fairly
derived.
Allocation by land use. The courts have indicated that all forms of development that have
facility impacts(residential,industrial and commercial)must pay their fair share of expansion
costs.If one land use is exempted from fees all other land uses have no reasonable expectation of
seeing facility expansion completed.Quantification of current residential,commercial,industrial
and related non-residential land uses is obtained from the county assessor's data.
Use specificity.Impact fee systems vary in how precisely they differentiate between varying
forms and size of residential development and varying uses of commercial buildings. Detailed
non-residential use or other specificity is merited when there is compelling evidence that use or
size variations reflect substantive difference in the demand for public services.The proposed fee
structure for GEFPD incorporates a four-tiered structure that assesses single family residential
by unit,multifamily residential by unit,commercial lodging facilities (hotel/motels) by the
square foot and all other nonresidential(commercial/industrial)by the square foot.
Redevelopment/credits.Application of impact fees raises a series of questions about how to
approve redevelopment of existing properties and the circumstances under which fees can be
waived or adjusted.The redevelopment of a residence,even a complete demolition and home
reconstruction,does not mean an increase in public service costs—it is still one residential unit
with little or no implications for service delivery costs or capital needs. Redevelopment of larger
lots with multiple homes would be assessed a fee based on the number of net new residences.
Similarly,non-residential redevelopment will only be charged on the basis of net new space.
Waivers.The District should not waive impact fees unless the fund is reimbursed from other
sources such as the general fund or the developer/owner is making other contributions to
system expansion by other mechanisms that meet or exceed the calculated requirements.
Timing.Generally impact fees are collected either at the time of building permit or at the
issuance of a certificate of occupancy.BBC recommends the District collect impact fees at the
time of building permit,which allows the District more time to extend service.
Updating.Fees should be updated periodically;most communities update fees every five years.
Inflationary adjustments are recommended on an annual basis.
BBC RESEARCH&CONSULTING SECTION I,PAGE 5
SECTION II .
Impact Fee Calculations
SECTION II.
Impact Fee Calculations
This section documents the derivation of impact fees for GEFPD.
Greater Eagle FPD Budget Overview
The 2017 GEFPD Budget indicates the District will collect revenues of approximately$2.08
million this year,including$9,000 in impact fees.Property taxes,generated from a 10.000 mill
levy on assessed property values,account for 92 percent of the District's projected revenues.
GEFPD is expected to incur expenditures of$2.18 million in 2017 including$106,600 in capital
expenditures.Operating expenditures account for$2.05 million of all expenditures in 2017,with
salaries and benefits being the single largest operational line item at$1.35 million.
The District currently funds capital improvements through their Capital Fund,which is funded
primarily through discretionary budget transfers from the General Fund and from the Impact
Fee Fund.In 2015 and 2016 transfers from the General Fund averaged$50,703 and transfers
from the Impact Fee Fund averaged$32,236.The 2017 Budget projects a transfer of$15,365
from the Impact Fee Fund but no transfers from the General Fund.Capital expenditures
budgeted for 2017 include approximately$44,000 in station improvements,$3,000 for vehicle
maintenance and$59,700 in equipment acquisition/replacements.
The District's Impact Fee Fund supports expansion-related capital investments and is
maintained separately from the Capital Fund.Impact Fee revenues for 2017 are projected to be
$9,000 and the Impact Fee Fund also projects interest income of$7,000 in 2017.Impact Fee
eligible expenses for 2017 include a portion of the Timberwolf Rescue Engine and the cost to
update the Impact Fe Study.
Impact fees allow the District to retain an independent and equitable source of revenue for
capital expenditures required to serve new growth.Without impact fees,the District would
likely have to increase property taxes district-wide,reduce service standards for all taxpayers,or
do both in order to accommodate growth once the Capital Fund balance is exhausted.
With impact fees,new development pays only their equitable pro rata share of new
infrastructure required to serve them while existing taxpayers will not subsidize growth.At the
same time,the District's capital and operating funds will be reserved for fiscally appropriate,
non-growth related uses.
Impact Fee Calculations
BBC's methodology for GEFPD impact fee includes the following tasks:
1. Quantify the fire infrastructure standards and investments needed to maintain the
current level of service;
2. Develop estimates of the District's current land use pattern;and
BBC RESEARCH&CONSULTING SECTION II,PAGE 1
3. Calculate the fire protection infrastructure costs per unit of development(per
household,or per square foot of commercial development).
Fire infrastructure.A conservative method of establishing the District's current level of
service for fire protection is to quantify its financial investment in infrastructure and capital
equipment.Specifically,GEFPD has five types of capital infrastructure related spending that
should be included in a calculation of current infrastructure investment:
• Station land and buildings;
• Major apparatus such as fire engines and specialized vehicles;
• A variety of life-saving and fire-fighting apparatus/equipment such as air packs and
portable water tanks;
• Business personal property such as fire station and office furniture,computers and
related durable assets;and
• Impact fee system related investments including the cost of this impact fee study
and the Impact Fee Fund balance.
Figure 11-1 on the following page presents the District's current capital infrastructure.
Replacement values are based on information provided by GEFPD,including a detailed
description of the District's capital assets from Arch Insurance Company.
As discussed earlier in this report,only the District's equity share of assets can be included in the
impact fee calculation (i.e.,debt used to finance fire stations or vehicle must be excluded).5
Presently,the District does not have any debt-financed items,having recently issued final
payments on the 2014 Pierce Engine and the 2015 Dodge Brush Truck.
The full cost of infrastructure acquired specifically for fighting wildfires is also excluded from
the total value used for the fee calculation.Additional residential or commercial development in
the district will not directly contribute to capital requirements of fighting wildland fires.
Therefore,the fee system should not replicate wildfire-specific infrastructure investments.
GEFPD property tax or other revenue sources will maintain the wild land fire standard of
service.Accordingly,the 2015 Dodge Brush Truck used exclusively for wildfires is not included
in the impact fee calculations(shown as 0%"portion to include in impact fees"in Figure 11-1).
GEFPD also maintains an antique fire truck that is not used to provide fire protection services to
District households and businesses.As such,the value of this asset is excluded from the fee
calculation.
The total replacement value of the District's current capital infrastructure is approximately$8.6
million,$8.4 million of which is eligible to be included in the impact fee calculation.
5 See Section I page 5 for an explanation of debt adjustments.
BBC RESEARCH&CONSULTING SECTION II,PAGE 2
Figure II-1.
Greater Eagle Fire Protection District's Current Assets
Total Portion to Include Allocated
Replacement in Impact Replacement
Type of Capital Infrastructure Value Fees h)'iz1 Value(3)
Bui and Land
IdinBs
Station 9(land and station) $2,294,000 100% $2,294,000
behides •
1937 Chevrolet Antique $30,000 0% $0
1968 Kaiser Jeep Tanker $33,000 100% $33,000
1996 Pierce Pumper $680,000 100% $680,000
1998 Pierce Pumper $680,000 100% $680,000
1999 Pierce Aerial $1,500,000 100% $1,500,000
2001 Haulrite ATV Trailer $6,000 100% $6,000
2006 Ford F150 $46,000 100% $46,000
2006 Ford F350 $46,000 100% $46,000
2008 Ford F150 $48,000 100% $48,000
2009 Chevrolet Tahoe Rescue $55,000 100% $55,000
2010 Trailer $32,000 100% $32,000
2010 Rosenbauer Pumper $350,000 100% $350,000
2010 Rosenbauer Tanker $400,000 100% $400,000
2014 Pierce Aero XT Rescue Engine $680,000 100% $680,000
2015 Dodge Ram 5500 (Brush Truck) $100,000 0% $0
Fire Equipment and Business Property`
Station and office business personal property $496,535 100% $496,535
Air packs and Air rescue system $219,042 100% $219,042
Radios,computers&mobile communications $113,523 100% $113,523
Generators $45,049 100% $45,049
Portable water tank $15,400 100% $15,400
Other moveable equipment $16,182 100% $16,182
Impact Fee Fund and Study
Impact Fee Fund Balance $671,290 100% $671,290
Cost of Nexus Study $9,000 100% $9,000
Total Value of Fire Infrastructure for Fee Calculation $8,566,022 $8,436,022
Note: (1)Reflects District's equity in each piece of capital infrastructure,net of any outstanding debt.
(2)Equipment used exclusively for brush fire response and/or antique show vehicles are excluded from the impact fee calculation.
(3)District equity multiplied by replacement value equals allocated replacement value.
Source: GEFPD,T.Arch Insurance Inventory and BBC Research&Consulting.
Current land use. This report utilizes the current distribution of development in the District as
a basis for allocating certain infrastructure expansion costs over different types of land uses.It is
consistent with the Colorado Municipal League's recommendation that cost allocation be based
on a measure of land use.
The distribution of commercial and residential building square footage is set forth in Figure II-2,
based on data from the Eagle County Assessor.The District is 76 percent residential
BBC RESEARCH&CONSULTING SECTION II,PAGE 3
development and 24 percent nonresidential(i.e.,commercial and industrial)development.The
vast majority of residential development is comprised of single family homes.
Figure 11-2.
Distribution of Commercial and
Residential Square Footage,2017 Multifamily Nonresidential
Residential,4% except lodging,
21%
Source:
Eagle County Assessor and ROC Research&Consulting.
Lodging
facilities,2%
Single Family
Residential,
7"
Impact fee calculation. Figure 11-3 uses the District's current service standards and
infrastructure replication costs to determine appropriate household and commercial fees.The
District's existing land use pattern is used as a reasonable proxy for the assignment of costs to
particular types of development.
Full cost-recovery impact fees for GEFPD,total$2,206 per single family residential dwelling unit
and$1,008 per multifamily dwelling unit.Nonresidential fees—for both lodging and other
nonresidential development—total$889 per thousand square feet.The District can choose to
charge less than this amount but discounts must be uniformly applied to all land use categories.
The full cost recovery fees shown in Figure 11-3 reflect the relatively high cost of providing
service in Eagle County.BBC recommends considering a fee amount that balances infrastructure
needs with economic development goals,which could mean discounting the full cost recovery
fee.Should the Board opt to charge a discounted fee,regular transfers from the General Fund to
the Capital Fund may be necessary to extend the current level of service to new growth.
BBC RESEARCH&CONSULTING SECTION II,PAGE 4
Figure 11-3. Calculation of Impact Fees
Fire Impact Fees
Value of Fire Infrastructure $8,436,022
Source: Current Land Use Distribution
BBC Research&Consulting,2017. Nonresidential except lodging 21.3%
Lodging facilities 2.3%
Residential 76.4%
Single family 72.1%
Multifamily 4.3%
Costs by Land Use Category
Nonresidential except lodging $1,800,997
Lodging facilities $192,624
Residential $6,442,402
Single family $6,083,298
Multifamily $359,103
Existing Development
Nonresidential except lodging(in ft2) 2,026,246
Lodging facilities(in ft2) 216,715
Residential(in dwelling units) 3,113
Single family(in dwelling units) 2,757
Multifamily(in dwelling units) 356
Impact Fee by Land Use
Nonresidential except lodging(per 1,000 ft2) $889
Lodging facilities(per 1,000 ft2) $889
Single family(per dwelling unit) $2,206
Multifamily(per dwelling unit) $1,008
Summary and Recommendations
The fees listed in Figure II-3 should be considered full cost recovery amounts,although it is
recognized that the District may choose not to adopt fees as high as the maximum defensible
amounts set forth in this analysis.
We also offer the following recommendations for your consideration:
• The District should continue to maintain the Impact Fee Fund separate and apart
from the General Fund,withdrawn only to pay for growth-related infrastructure.
• The District should adhere to a written policy governing its expenditure of monies
from the Impact Fee Fund.The Fund should be prohibited from paying for District
operational expenses including the repair and replacement of existing
infrastructure not necessitated by growth.In cases when new infrastructure is
expected to partially replace existing capacity and to partially serve new growth,
cost sharing between the General Fund and Impact Fee Fund should be allowed on
a pro rata basis as determined by the District's board.
• The fees calculated in this study should be updated periodically as the District
invests in additional fire protection infrastructure beyond what is listed in Figure
BBC RESEARCH&CONSULTING SECTION II,PAGE 5
II-1,and/or the District's population or inventory of commercial square footage
change significantly.
• The fees should continue to be updated annually based on established inflation
indices,such as the Consumer Price Index or the Engineering News Record.
• Finally,consider a fee amount that balances infrastructure needs with economic
development goals.
BBC RESEARCH&CONSULTING SECTION II,PAGE 6
GREATER EAGLE FIRE PROTECTION DISTRICT
RESOLUTION NO.2018-6
A RESOLUTION AUTHORIZING THE ADJUSTMENT OF IMPACT FEES
WHEREAS, the Greater Eagle Fire Protection District("District")is a quasi-municipal corporation and political
subdivision of the State of Colorado and a duly organized and existing special district pursuant to Title 32, Colorado
Revised Statues;and
WHEREAS, the Board of Directors ("Board") of the District has ultimate authority and responsibility over all
operations, personnel and affairs of the District, with all rights, duties and powers specially granted to the Board by
Title 32,Article 1 of the Colorado Revised Statues; and
WHEREAS, the District previously entered into intergovernmental agreements concerning the collection,
payment and use of fire protection and emergency services impact fees with Eagle County, the Town of Gypsum, and
the Town of Eagle (collectively,the"IGAs"), under which impact fees are collected and transferred to the District;and
WHEREAS, the Board conducted a study and reviewed results presented at its June 21, 2017 meeting. The
study suggested the District's impact fees be adjusted in accordance with recommendations from the study indicating
impact fees should be increased to ensure adequate impact fees are assessed;and
WHEREAS, the Board desired to request an adjustment to the amount of the impact fees collected by Eagle
County, the Town of Gypsum, and the Town of Eagle pursuant to the IGAs to make such amount consistent with the
suggested impact fees,which will assist the District with covering the costs of the District's capital improvement plans;
and
WHEREAS, the Board passed Resolution 2017-5 at its December 13,2017 and found it reasonable,appropriate,
and necessary to request an adjustment to the amount of the District's impact fees collected by Eagle County, the
Town of Gypsum, and the Town of Eagle pursuant to the IGAs to make such amount consistent with the suggested
impact fees and that the amount of increase would be eighty percent (80%)of the increase identified in the District
study; to take place immediately; and the Fire Chief and Officers of the District are authorized and directed to take all
actions necessary and appropriate to affect the provisions of said resolution.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Greater Eagle Fire Protection District as
follows:
1. The District will request an increase in the amount of the impact fees collected by Eagle County, the
Town of Gypsum, and the Town of Eagle and transferred to the District. The additional amount of increase will be
twenty percent(20%)to bring the total up to one hundred percent of the increase identified in the 2017 District study
and an additional two point nine percent (2.9%) to adjust for inflation based upon the Bureau of Labor Statistics,
Denver-Boulder-Greely Consumer Price Index for the second (2' )half of 2018.
2. This Resolution shall take effect immediately and the annual CPI adjustment will be made based upon
the Bureau of Labor Statistics, Denver-Boulder-Greely Consumer Price Index for the second(2nd) half.
3. The Fire Chief and Officers of the District are authorized and directed to take all actions necessary and
appropriate to affect the provisions of this Resolution.
RESOLVED by the Board of Directors of the Greater Eagle Fire Protection District,upon a motion duly made,
seconded and passed at a Special Meeting held on the 28th of November,2018 by a vote of `1 in favor and
4 against,and,+NIPr abstentions.
GREATER EAGLE 'E PECTON 'ISTRICT
By: Ase
Eric 'eterso airman/President
Attest:
EricIlom;Secretary