HomeMy WebLinkAboutResolution No. 2008-87RESOLUTION NO. R2008-87
A RESOLUTION OF THE CITY OF FRIENDSWOOD, TEXAS,
ADOPTING AMENDMENTS TO THE CAPITAL IMPROVEMENTS
PLAN AND THE LAND USE ASSUMPTIONS APPROVED, AND THE
IMPACT FEES IMPOSED BY RESOLUTION NO. R90-22, PASSED AND
APPROVED THE 4TH DAY OF JUNE, 1990, AS AMENDED BY
RESOLUTION NO. R91-4, PASSED AND APPROVED THE 7TH DAY OF
JANUARY, 1991; AS FURTHER AMENDED BY RESOLUTION NO. R93-
24, PASSED AND APPROVED THE 17TH DAY OF MAY, 1993; AS
FURTHER AMENDED BY RESOLUTION NO. R97-48, PASSED AND
APPROVED THE 15TH DAY OF DECEMBER, 1997; AMENDED BY
RESOLUTION NO. 2000-40 PASSED AND APPROVED THE 7TH DAY OF
AUGUST, 2000; AS FURTHER AMENDED BY RESOLUTION NO. 2003-
47, PASSED AND APPROVED THE 17TH DAY OF NOVEMBER, 2003.
WHEREAS, the City Council has directed the qualified professionals of the City's staff
and consultants to prepare an amendment to the City's Land Use Assumptions, Capital
Improvements Plan, and to recalculate the impact fees in accordance therewith; and
WHEREAS, the City Council has held public hearings as required by law to amend its
Capital Improvements Plan and adjust impact fees; and
WHEREAS, the City Council desires to adopt such amendment, a true and correct copy
of which is attached hereto as Exhibit "A" and for all things made a part hereof;
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD,
TEXAS:
Section 1. The facts and matters set forth in the preamble of this Resolution are
hereby found to be true and correct.
Section 2. The Land Use Assumptions, the Capital Improvements Plan and Impact
Fee Study, as amended, originally adopted pursuant to Resolution No. R90-22, passed and
approved the 4th day of June, 1990, as amended by Resolution No. R91-4, passed and approved
the 71h day of January, 1991, and as amended by Resolution No. R93-24, passed and approved the
171h day of May, 1993, as amended by Resolution No. R97-48, passed and approved the 15th day
of December, 1997; amended by Resolution No. R2000-40, passed and approved the 7th day of
August, 2000; as amended by Resolution No. R2003-47, passed and approved the 17th day of
November, 2003; is hereby further amended as set forth in Exhibit "A" attached hereto, said
Exhibit "A" being entitled "2008 Update Study for Land Use Assumptions, Capital
Improvements Plan and Impact Fees, for Water Supply/Distribution and Wastewater
Treatment/Collection Systems," dated September 2003, by HDR/Claunch & Miller, Inc.
Section 3. In the event any clause, phrase, provision, sentence, or part of this
Resolution or the application of the same to any person or circumstance shall for any reason be
adjudged invalid or held unconstitutional by a court of competent jurisdiction, it shall not affect,
impair, or invalidate this Resolution as a whole or any part or provision hereof other than the part
declared to be invalid or unconstitutional; and the City Council of the City of Friendswood,
Texas, declares that it would have passed each and every part of the same notwithstanding the
omission of any such part thus declared to be invalid or unconstitutional, whether there be one or
more parts.
PASSED, APPROVED AND RESOLV n is 17th day of November, 2008.
David J. H. Smith
Mayor
ATT
o f F RIEryG
A �p
Dd4oris McKenzie, T C Y a
City Secretary
s+�4rF of
R2008-87 2
Exhibit A
(R2008-87)
CITY OF FRIENDSWOOD
2008 UPDATE STUDY FOR LAND USE ASSUMPTIONS
CAPITAL IMPROVEMENTS PLAN AND IMPACT FEES
WATER SUPPLY / DISTRIBUTION AND
WASTEWATER TREATMENT / COLLECTION SYSTEMS
June, 2008
Mayor David J.H. Smith
City Council
Position 1 — Michael E. Barker
Position 2 — Jim Barr
Position 3 — Jim Hill
Position 4 — Leslie Reid
Position 5 — Bill Holbert
Position 6 — Andy Rivera
Interim City Manager
City Secretary
City Attorney
Roger Roecker
Deloris McKenzie, TRMC
Bobby Gervais
Interim Director of Community Development Morad Kabiri, P.E., AICP
CITY OF FRIENDSWOOD
2008 UPDATE STUDY FOR LAND USE ASSUMPTIONS
CAPITAL IMPROVEMENTS PLAN AND IMPACT FEES
WATER SUPPLY / DISTRIBUTION AND
WASTEWATER TREATMENT / COLLECTION SYSTEMS
Impact Fee Advisory Committee
Chairman: Vice Chairman:
Kevin Holland Mark McLean
Members:
Hassan Moghaddam
Jim Gibson
Michael Brown
David O'Farrell
Rueben Garcia, Jr.
Page 2 of 18
TABLE OF CONTENTS
ITEM
I. Executive Summary......................................................................................................................4
II. Introduction and Background....................................................................................................... 7
III. Review of Land Use Assumptions — City Growth Rates............................................................. 9
IV. Development of City -Wide Water Supply & Distribution Impact Fee.......................................12
1. Water Supply, Storage, Transmission, Pumping, and Distribution Projects
2. Service Unit Basis
3. Projected Service Units
4. Calculation of Updated City -Wide Water Supply & Distribution Impact Fee
V. Development of City -Wide Wastewater Collection & Treatment Impact Fee........................16
1. Wastewater Collection and Treatment Projects
2. Service Unit Basis
3. Projected Service Units
4. Calculation of Updated City -Wide Wastewater Collection & Treatment Impact Fee
VI. Recommendations & Conclusions..........................................................................................18
Appendices
A. Chapter 395 Local Government Code
B. Summary of Service Unit Equivalents
C. Water Supply & Distribution Projects and Costs
D. Wastewater Collection & Treatment Projects and Costs
E. Review of Historical Impact Fee Charges (Per Service Unit)
Page 3 of 18
I. EXECUTIVE SUMMARY
This study is the 2008 Update of the original study which the City of Friendswood (City)
performed in 1990 to establish impact fees for water supply and distribution and wastewater
collection and treatment facilities. Fees were established in accordance with the original
state Impact Fee Legislation (VTCA Local Government Code Section 395.001 et seq.) and
have previously been updated in 1993, 1997, 2000 and 2003. The law provides for
municipalities and certain other political subdivisions to assess and collect impact fees for
the infrastructure required to serve new development. Fees collected are used to fund new
infrastructure and expansions to existing infrastructure that are required to serve the needs of
the new development and cannot be used to serve existing development. The legislation
includes guidelines for use when determining if a particular project is eligible for impact fees
and the method of calculating the maximum allowable impact fee that can be established.
The City's fees have previously been adopted and subsequently updated for city-wide water
supply capacity, specific area water distribution systems, city-wide wastewater treatment
capacity, and specific area wastewater collection systems.
In 2003, Claunch & Miller, Inc. (CMI) prepared an update that included a review of current
water demand and wastewater flow data, population projections, land use assumptions and
area growth trends. The update also included as -built costs for recently constructed systems
improvements and other updated cost data that were utilized to determine the maximum
allowable impact fees to be assessed and collected. Future water and wastewater capital
projects that were identified in the most current Capital Improvement Plan (CIP) were also
included in the calculation of the impact fee. In this update, the City chose to simplify the
administration of the impact fee program by reducing all impact fees to a city-wide fee that
is currently either water or wastewater in nature and by changing the assessment approach to
be more equitable than the current system for small commercial developments on larger
tracts.
The state law originally required that impact fees be reviewed and updated at least every
three years from the adoption date; however, the legislation was amended to revise the
maximum period to five years between required updates.
Assessing Impact Fees based on Water Meter Size:
Many municipalities choose to assess impact fee amounts for water and sewer capital
improvements based on the size of the water meter purchased to serve the development. A
water meter of a particular size will allow a definite water flow that will provide adequate
service to the user. The larger the water meter, the larger the flow rate for which the meter is
rated. The American Water Works Association, one of the leaders in technical research in
the water and wastewater utility industries, has published tables identifying the rated water
flow rates through meters of various sizes. When an engineer sizes a water meter for a
particular development, he determines the number of water closets, water fountains, sinks,
and other types of fixture units and uses the number of fixture units and associated average
demands to select the proper water meter size.
Page 4 of 18
Essentially those "industry standard" flow rates are compared to the flow rates for the meter
serving a single family home (in Friendswood —1 inch) to determine the equivalent number
of service units for which the impact fee is ultimately charged. If a 1" meter is rated for 25
gpm and a 2" simple meter is rated for 50 gpm, then the purchase of a 2" meter to serve a
development would result in the assessment of an impact fee for 2 service units ( 50 gpm / 25
gpm = 2).
Assessing Impact Fees based on general consumption/ wastewater flow tables:
Agencies such as Texas Commission of Environmental Quality (TCEQ), City of Houston
(COH) and others have developed tables identifying water use and wastewater flows for
various types of commercial, institutional, and industrial development based on available
research data ( water meter records and wastewater flow tests) that they have on various
types of development. Depending on the size of a proposed development of a specific type,
water demands and wastewater flows can be developed from the tables and compared to
those generated by the single family residence. The ratio of the proposed water demands and
wastewater demands to those for the typical single family residence become the multiplying
factor for the impact fee charged for residential development to determine the impact fee to
be assessed a particular development.
Discussion of the use of these methods to develop water and sewer utility impact fees:
Communities use these types of methods as well as others to calculate the maximum
allowable impact fee to be assessed to a particular development. The use of either of the
above described methods are based on using industry standards to compare different types of
development and their associated water demands and wastewater flows.
Using either assessment method does not assure that the consumption and flow generation of
a particular development will not vary significantly from the values that form the averages
that are used to calculate fees. Even if average values are determined for a specific city
using historical data for that particular city, the water demands and wastewater flows for a
particular development typically vary significantly from the city averages.
For the selection of a water meter, there are other factors than impact fees that determine the
meter size that an owner may want for their development (i.e. keep pressures at desired
levels). While it is probable that actual water and wastewater records will result in numbers
that vary significantly from those developed by area agencies, as they are more general and
use many samples to develop their numbers - those samples may have significantly different
characteristics such as size, location, amount of water use in the area, fire protection,
irrigation patterns, and others.
Using either approach, a review of several months records of an individual development may
result in different numbers than the industry averages used to calculate the impact fees.
Since both methods are successfully used in the vicinity, and either approach would produce
a more equitable fee in most cases (than would the current approach) for small commercial
Page 5 of 18
developments on larger tracts, the City adopted the water meter approach in the 2003 Update
for ease of administration and uniformity. The City staff has indicated a preference for the
water meter approach because of the ease of administration, and developers would also
benefit from the simplicity in that approach.
The city-wide fees determined per Service Unit (SU) for the 2003 update were:
1. Water Supply and Distribution $ 1,892
2. Wastewater Collection and Treatment $ 967
Total City -Wide Impact Fees $2,859
The proposed fees determined in this 2008 update are:
1. Water Supply and Distribution $ 1,849
2. Wastewater Collection and Treatment $ 1,290
Total City -Wide Impact Fees $ 3,139
The approach to assessing the impact fee is dependent on the size of the water meter serving
the proposed development which will be more equitable than the current system in allocating
capital improvement costs to serve commercial development on relatively large tracts of
land. (See Appendix B)
Administration Items:
1. The impact fee will be assessed at the time that a plat is filed (where applicable) and
collected during the building permit process as identified in the impact fee
legislation.
2. Parks, and construction trailers will not be assessed any impact fees.
3. Houses and businesses obtaining additional meter(s) for fire line or lawn irrigation
purposes only, will not pay the impact fee associated with water or wastewater.
4. The Architect or Engineer for the Owner will size the water meter for the
development based on industry standards.
5. Governmental buildings, churches, and schools will pay the water and sewer impact
fees based on the proposed assessment method.
6. When an existing water meter is changed out, additional impact fees will be assessed
if the meter size is increased. The fee will be based on the incremental increase in
the Service Units calculated per Appendix B.
7. When meters are changed out for the same size meter or a smaller meter, no fee will
be assessed.
Page 6 of 18
IL INTRODUCTION AND BACKGROUND
State law allows municipalities to establish impact fees to fund the cost of capital
improvements necessitated by new development. Current Chapter 395 of the Local
Government Code (VTCA Local Government Code, Chapter 395) contains the requirements
and procedures for the establishment of impact fees. (Appendix A)
The City of Friendswood has established impact fees to recover the costs of water supply and
distribution and wastewater treatment and collection. These impact fees were first adopted
on June 4, 1990 by Resolution No. 90-22, in accordance with the provisions of the, then
current State law.
Impact fees were originally established for the following items:
City-wide Water Supply Facilities
City-wide Wastewater Treatment Facilities
City-wide Impact Fee/CIP Study
Service Area Water Distribution:
Melody Lane Water System
Bay Area Boulevard Water System
Central Service Area Water System
Service Area Wastewater Collection:
Melody Lane Wastewater System
Central Service Area Wastewater System (Segments A-E)
On January 7, 1991, an amendment (R91-4) to the Impact Fee Resolution was adopted by the
City to create the Mills, Murphy, and Briarmeadow Avenue Wastewater Collection System
service area and establish an impact fee therefor.
In 1993, the 1990 Impact Fees were reviewed, as required by State law. The Updated Study
for Land Use Assumptions, Capital Improvements Plan and Impact Fees, dated March 10,
1993 reviewed the previously established impact fees with regard to water demand,
wastewater flow and revisions and extensions to the service areas. Adjustments to the
various components of the impact fees were recommended and adopted by the City based on
the 1993 Update Study, under Resolution No. R1993-24.
Significant modifications were made to the Central Service Area during the 1993 Update
Study. This area, renamed the South Friendswood Service Area, was greatly expanded and
the proposed collection system was redesigned. Costs for various other impact fee
components and areas were recalculated and updated in the 1993 study to reflect current
conditions as well.
Page 7 of 18
The second Update Study was prepared by CMI in 1996 — 1997 with the result being that
two service areas were deleted from the program and the fee calculation for the South
Friendswood Service Area was simplified for administration.
The 2000 Update Study added one specific water distribution service area and one specific
wastewater collection service area.
The 2003 Update Study was produced to recognize new Capital Improvement Projects that
have system -wide benefits and to meet the needs of new development that occurs anywhere
within the city. The study also simplified the overall assessment and collection process for
the City staff by grouping all water and wastewater impact fees into city-wide fees for either
water supply and distribution or wastewater collection and treatment. The assessment
method was changed to correlate Service Units with water meter size. This method allows
for the fees assessed to more closely reflect water demand and wastewater flows than the
previous method of assessing the fees on an acreage basis for particular development types
(which allows for a relatively high assessment for a commercial establishment on a site of
several acres).
The 2008 Update Study is being prepared to meet the requirements of the legislature to
update the Study at least every five years. The 2008 Update Study will recognize new
Capital Improvement Projects that will have system -wide benefits and to meet the needs of
new development that occurs anywhere within the city. The study will also update the cost
for capital projects that have been completed in the last five years and update land use
assumptions and population projections.
The Texas Impact Fee Legislation provides for assessing the impact fee before or at the time
of recordation of the final plat. In cases where new development occurs without platting, the
impact fee may be assessed at any time during the development and building process.
Per the legislation, collection of the impact fees can occur:
1. When the final plat is recorded, if the development is platted, or
2. When connections are made to the City's water and wastewater system, or
3. At the time the City issues either a building permit or certificate of occupancy.
After assessment of impact fees attributable to a specific project or the execution of an
agreement for payment of impact fees, no additional impact fees may be assessed to the
particular property for that project unless the number of Service Units (SU) is increased (a
larger meter is installed to replace the existing meter), in which case the additional fees to be
imposed shall apply only to the additional service units.
If a property owner pays an impact fee and the construction of the capital improvement, for
which the fee was paid, is neither under construction within two (2) years after payment nor
complete for service within five (5) years after payment, the property owner may request a
refund of the fee.
Page 8 of 18
III. REVIEW OF LAND USE ASSUMPTIONS — CITY GROWTH RATES
Land use assumptions adopted in the previous impact fee studies, prior to 2003, fell into two
(2) categories. For the city-wide impact fees (surface water supply and wastewater
treatment), growth rates for the city were projected for the 10-year planning period.
For the individual service area based impact fees, specific assumptions about land use types
and connection counts were made to reflect the planned or anticipated development in each
area.
The 2003 Update Study grouped all proposed impact fees into two (2) city-wide components
and thus an evaluation of the city-wide growth rates was the focus and the previously
identified specific service areas were no longer analyzed.
Previous Studies:
The original 1990 Impact Fee Study assumed a 5% annual growth rate throughout
the 10-year planning period. The 1990 population of the City was estimated to be
22,500 people with 7,662 equivalent connections. At the end of the planning period
(January 2000), the population was projected to be 36,650 people with 12,481
equivalent connections.
The 1993 Updated Study adopted population projections developed in two (2) reports
prepared by City staff and Wayne Smith & Associates. Those reports utilized
Houston -Galveston Area Council of Governments (HGAC) population projections
and the City Zoning Map to produce land use and population projections for the
entire City. Based on this data, the 1993 Update Study utilized population
projections of 30,850 for 1995, 38,900 for 2000 and 43,724 for 2003.
In 1996, Claunch & Miller, Inc. analyzed data from three (3) additional sources for
the Second Update Study. Data was again obtained from HGAC, a study prepared
by J.T. Duncan and Associates, and data provided by the City records for dwelling
units constructed.
It was determined that a growth rate of 3.6% derived from City records was possibly
the most accurate and reasonable figure available, as it was based on the 1990
Census count plus detailed records of new residential electrical connections made
since then, whereas all of the other figures were based on projections of historical
trends or assumed growth rates. The 3.6% annual growth rate produced a January
1996 population projection of 27,835 and a 2006 population projection of 40,175.
Page 9 of 18
The 2000 Update Study revisited HGAC, Texas Water Development Board
(TWDB), and City records on dwelling construction. The dwelling construction data
from 1997 through 1999 utilized with data previously gathered for the period from
1990-1996 indicated an average annual population growth rate of approximately
3.3%.
Based on the City supplied connection numbers by development type and the
recommended annual growth rate of 3.3%, the projected Service Unit totals at the
end of the 10-year planning period (2010) were 14,164 water service units and
13,709 wastewater service units.
For the 2003 Update Study projections from the various entities as well as City
records were again revisited. Census data was also available from the 2000 and
previous decades as follows:
Table I
Year
Population
% increase
annual % increase
1970
5,675
-
1980
10,719
88.9%
8.9%
1990
22,814
112.8%
11.3%
2000
29,037
27.3%
2.7%
Based on the current trends in 2003 it was agreed that the same 3.3% annual growth
rate would be utilized. Population and water / sewer connections projected for the
10 year planning period were determined as follows:
Year Population
2013 45,460
Current Study:
Table2
PPC Connections
2.8 16,236
Based on the City supplied connection numbers for residential units and the
average persons per household rate of 2.82 and occupancy rate of 0.971, as
experienced in the 1990 and 2000 census, the population for the last five (5) years
was as follows:
Table 3
Year
Households
Population
Persons/Household
1990
8,048
22,814
2.82
2000
10,605
29,037
2.82
2003
12,177
33,343
2.82
2004
12,376
33,888
2.82
2005
12,539
34,335
2.82
Page 10 of 18
2006 112,709 34,800 2.82
2007 12,991 35,572 2.82
Based on these records, the actual growth rate for the past five (5) years averaged
approximately 1.9%.
Other sources for population projections were also investigated for the 10 year
study period. The Houston Galveston Area Council predicts an average growth
rate of 1.94% for the community for the period from 2008 to 2018. The Texas
Water Development Board provides predictions of population for planning
purposes for 10 year periods. The TWDB growth rate projection for the period
from 2010 to 2020 is 0.9%. The City of Friendswood Planning Department
provided projections through 2020 when the city population is predicted to reach
approximately 45,486. The growth rate for the City supplied projections equates
to a future growth rate of approximately 1.2%.
It is recommended that a conservative growth rate of 1.9% be utilized for this
2008 Update Study which is consistent with current trends for the City and the
HGAC projections. Using the 1.9% growth rate results in the following projected
connections for the 10-year planning period:
Table 4
Year
Connections
emulation
2009
13,505
36,979
2010
13,761
37,682
2011
14,023
38,398
2012
14,289
39,127
2013
14,561
39,871
2014
14,837
40,628
2015
15,119
41,400
2016
15,407
42,187
2017
15,699
42,988
2018
15,998
43,805
Page 11 of 18
IV. DEVELOPMENT OF CITYWIDE WATER SUPPLY AND DISTRIBUTION
IMPACT FEE
Water Supply, Storage, Transmission, Pumping, and Distribution Projects
This City-wide water supply and distribution impact fee is composed of the following
components:
1. Surface Water Capacity
2. Surface Water Transmission, Pumping and Storage Facilities
3. Water Distribution System Improvements
Surface Water Capacity
Under the Harris -Galveston Coastal Subsidence District's requirements, the City's
future water supply must be converted from a majority of ground water use to a
majority of surface water use.
The City of Friendswood initially purchased 3.0 mgd of treatment capacity in the
City of Houston's Southeast Water Purification Plant. Additional purchases have
included 1.0 mgd from the La Porte Water Authority, 0.5 mgd from MUD 55, and
1.5 mgd from the Southeast Water Purification Plant (SEWPP).
The 2002 Groundwater Reduction Plan (GRP) developed to meet the needs of the
Harris / Galveston Coastal Subsidence District requirements indicated the ultimate
maximum day conditions for the City would be approximately 17.0 mgd and that to
meet ground water reduction goals, the appropriate mix should be 12.0 mgd surface
water and 5.0 mgd groundwater.
The recent purchase of 6 MGD will provide the total of 12.0 mgd surface water for
ultimate development of the City. Total available to the ultimate 57,400 population
of the City would be the 12.0 mgd surface water along with 5.0 mgd groundwater.
We are including the cost for the 6.0 MGD recent purchase in the SEWPP in this
impact fee study.
Surface Water Transmission, Pumping and Storage Facilities
The surface water transmission, pumping and storage projects that have been
completed to date along with those anticipated in the near future based on the current
Capital Improvement Program (CIP) are estimated to be sufficient for the city's
requirements through the ultimate build out level, or approximately 20,500 Service
Units. A summary of all surface water supply, storage, transmission, and pumping
projects included in the impact fee calculation are included as Appendix C.
Page 12 of 18
Water Distribution System Improvements
Appendix C includes water distribution facilities included in the water supply and
distribution system impact fee component. Several of the projects were previously
identified as projects for specific service areas in studies prior to the 2003 Update
Study. These projects have now been combined with all other projects for simplicity
of administration so that a city-wide water supply and distribution fee could be
developed.
1. Service Unit Basis
The 1990 Impact Fee Study and the 1993 Update Study calculated the surface water supply
capacity in terms of Service Units based on historical water usage and connection counts.
Table 5 below shows the data used to compute these figures, along with 1996, 2000 — 2002
and 2007 data.
Table 5
Surface Water Capacity
Study
Water
Service
Consumption
Surface Water
Year
Consumption
Units
Per S.U.
Unit Capacity
1990
2.8 mgd
7,662
365 gpd
10,261
1993
2.89 mgd
8,621
335 gpd
11,196
1996
2.97 mgd
9,337
318 gpd
11,789
2000
3.73 mgd
10,238
365 gpd
20,548
2001
3.42 mgd
10,955
312 gpd
"
2002
3.49 mgd
11,218
312 gpd
"
2007
3.56 mgd
11,758
303 gpd
"
(initial 3.0 mgd surface water capacity increased to 6.0 mgd capacity in 2000 by
purchases)
In 1996, CMI standardized the surface water supply impact fee calculations by defining a
previously fluctuating surface water supply service unit (based on yearly water consumption
fluctuations) at 365 gpd consumption, which was the value used in the original Impact Fee
Study. This value is a reasonable consumption rate for a typical single family residence and
is somewhat conservative based on analysis of water usage figures supplied by the City for
the period FY 1993 through FY 2002.
Most recently, the 2002 GRP indicated that the average demand per Service Unit should be
136 gpd X 2.8 ppc, or 381 gpd.
Page 13 of 18
Use of a value of 3 81 gpd per Service Unit means that the previous 6.0 mgd capacity owned
in the two (2) surface water treatment facilities equated to 19,685 SU ( versus the 20,500
ultimate anticipated Service Units) when the 80% surface water/20% groundwater mix is
factored in. The additional groundwater recently purchased will more than cover the
additional 815 connections that will ultimately need to be served.
The Groundwater Reduction Plan used a peak daily demand rather than an average daily
demand to determine the amount of future surface water purchases to meet the needs of
existing and future development.
The recommended 381 gpd per Service Unit is lower than the previously defined 450 gpd
defined for the Service Unit, however, there are valid reasons for a more conservative figure
to be used for distribution system design. In addition, the 1990 Impact Fee Study
acknowledged that the 450 gpd utilization rate was higher than other commonly recognized
rates.
For planning purposes, it is helpful to equate various types and densities of development in
terms of their water and sewer capacity requirements. The Texas Impact Fee legislation
requires that a standardized measure of consumption, use, generation or discharge
attributable to an individual unit of development be used in the computation of impact fees.
Previously, the water consumption for different land use types were compared to that of the
single family residential connection (Service Unit) to develop equivalent service units for
areas of development. To simplify administration of the impact fee program, required water
meter sizes are now proposed to determine the equivalent number of Service Units for a
particular development.
An equivalent Service Unit table for various water meter sizes is included as Appendix "B".
Projected Service Units
The existing surface water transmission, pumping, and storage components above are each
adequate to serve the 11,758 existing SU (3.56 mgd average 2007 daily demand / 381 gpd
per Service Unit). The existing and proposed surface water transmission, pumping, and
storage components will provide adequate transmission, storage, and pumping capacity for
the City's needs beyond the end of the 10-year planning period in 2018.
Table 6
Total Capacity SU Remaining SU
1. Surface Water Facility Capacity 20,500 8,742
Page 14 of 18
4.
Based on the 1.9% annual growth rate projection and the existing 12.0 mgd of total available
surface water capacity, the City's available Surface Water Capacity will more than serve the
needs of the development projected through the year 2018.
Calculation of Updated City -Wide Water Supply & Distribution Impact Fee
Using the updated total costs for previous projects along with the costs for the anticipated
projects to be completed within the next ten (10) years (per the current CIP provided by the
City) for the various components of the Surface Water Supply & Distribution System, the
Water Supply & Distribution Impact Fee is as follows:
Table 7
Water Supply and Distribution Maximum Impact Fee Calculation
Impact
Item
Cost**
Capacity
Fee
1. Surface Water Capacity (12.0 mgd)
$33,993,938
20,500 SU
$1658
2. Transmission, Pumping & Storage Facilities
$ 17,360,150
20,500 SU
$ 847
3. System Wide Components
$ 12,250,600
20,500 SU
$ 598
4. Water Distribution
$ 11,920,325
20,500 SU
$ 581
5. Impact Fee Studies (through 2018)
$ 100,000
6,531 SU*
$ 15
Total:
$3699
- (14,193(2018 SU) — 7662 (1990 SU))
** - See Appendix C for further details in individual cost
Page 15 of 18
8. DEVELOPMENT OF CITY-WIDE WASTEWATER COLLECTION AND
TREATMENT IMPACT FEE
1. Wastewater Treatment and Collection Projects
The City of Friendswood has purchased 4.875 MGD of capacity in the Blackhawk Regional
Wastewater Treatment Plant. Of the City's total capacity, 2.5 MGD was purchased in the
Phase I construction to serve existing development. An additional 2.375 MGD was
purchased in the Phase II expansion project to serve new development, and is subject to the
impact fee. A 2.0 MGD expansion is anticipated to be required to serve new development
within the 10-year planning period and has been included in the impact fee calculation.
The City has also participated in the construction of a temporary access road to serve the
Blackhawk Regional Plant, which is included in the impact fee calculation.
The following new additional projects and cost adjustments have been added as system wide
wastewater system costs and will be incorporated into the impact fee calculation:
(See Appendix D for a complete project list.)
Table 8
Deepwood Force Main $2,310,000
Deepwood Lift Station Expansion $1,365,000
Beamer Road Sanitary Sewer (Phase I) $ 945,000
FM 528 Trunk Sewer (Lundy Land — Tower Estates) $ 210,000
Sun Meadow Lift Station $ 855,540
South Friendswood Drive Force Main Diversion $ 456,750
Utility Master Plan $ 25,000
Eldorado/Lundy Lane Sanitary Sewer $ 3,498,600
Impact Fee Studies (50% X $200,000 — through 2018) $ 100,000
Service Unit Basis
In 1991 and 1992, a detailed analysis of the existing wastewater flows was undertaken as a
part of the planning effort for the South Friendswood Service Area. This study found that
the average daily dry weather flow was 82 gpd per capita or 246 gpd per Service Unit for
wastewater treatment capacity. The peak 2-hour flow was found to be 4.2 times the average
daily flow or 1,033 gpd per service unit, which was rounded up to 1,050 gpd for planning
purposes for the wastewater collection system.
It is recommended that the previously defined wastewater treatment capacity Service Unit of
246 gpd, from a typical single family residence, and wastewater collection system Service
Unit of 1,050 gpd be maintained for use in this study for consistency. These figures are
based on the previous flow study data and bear a reasonable relationship to the consumption
rate used to define the Service Unit.
Page 16 of 18
For planning purposes, it is helpful to equate various types and densities of development in
terms of their water and sewer capacity requirements. The Texas Impact Fee legislation
requires that a standardized measure of consumption, use, generation or discharge
attributable to an individual unit of development be used in the computation of impact fees.
Previously, the wastewater generation for different land use types were compared to that of
the single family residential connection (Service Unit) to develop equivalent Service Units
for areas of development. To simplify administration of the impact fee program, required
water meter sizes are now proposed to determine the equivalent number of Service Units for
a particular development.
3. Projected Service Units
Based on the Service Unit definition provided above, the 2.375 MGD of wastewater
treatment capacity in the Blackhawk Regional Plant equates to 9,654 Service Units. In the
previous impact fee studies wastewater treatment costs and costs for additional trunk sewers
and lift stations were distributed over these 9,654 Service Units to develop a city-wide
wastewater impact fee. The rationale was that these cost were adequate to serve only these
projected Service Units.
With the planned 2.0 MGD plant expansion and other system wide improvements proposed
in the current CIP the City will have adequate capacity to serve the 20,500 Service Units
anticipated at complete build -out. Therefore, the projected costs will be distributed over the
ultimate 20,500 Service Units.
The temporary plant access road serves both Phase I and II and must also be distributed over
the total of 20,500 ultimate Service Units(existing and future development).
4. Calculation of updated city-wide Wastewater Collection and Treatment Fee
The updated Wastewater Collections / Treatment Impact Fee is as follows:
Table 9
Impact
Items Cost- CapacityCgpacity Fee
1. Wastewater Treatment Capacity
$33,993,938
20,500
$1,658
(With Future 2.0 MGD)
2. Temporary Access Road
$ 411,431
20,500
$ 20
3. Additional System Wide Projects
$18,166,836
20,500
$ 886
4. Impact Fee Study Costs
$ 100,000
6,531
$ 15
Maximum Total Wastewater Collection / Treatment
$2,579
Page 17 of 18
8.
RECOMMENDATIONS & CONCLUSIONS
The City simplified the impact fee assessment process in 2003 by incorporating water and
wastewater impact fees for existing service areas within the city into a city-wide impact fee
that included the costs of all Capital Improvements that will serve future development.
The City changed the approach of assessing impact fees to recognizing the water meter size
of a proposed development as the way to determine the number of Service Units for which
the development will be assessed the fee. (See Appendix B) These assessment methods
have proven to be successful over this 5-year update period and it is recommended that the
City continue in this manner.
Research indicates that the City should recognize approximately 20,500 Service Units at
ultimate development of the City and that the projected number of service units at the end of
the 10-year planning period in 2018 should be 15,998.
Chapter 395 of the Local Government Code was amended in 2001 to include that the City
must provide a credit for the following:
Section 395.014 Paragraph a (7)
(A) a credit for the portion of ad valorem tax and utility service revenues generated by new
service units during the program period that is used for the payment of improvements,
including the payment of debt, that are included in the Capital Improvements Plan; or
(B) in the alternative, a credit equal to 50 percent of the total projected cost of
implementing the capital improvements plan.
The City of Friendswood has elected to provide the credit equal to 50 percent of the CIP
resulting in the following recommended Impact Fees:
Capital Improvement Costs for new development distributed over the new development to be
served indicates that the maximum allowable water and wastewater impact fee to be assessed
future development would be $6,278/2 = $3,139.
The two components of the total fee to be assessed are:
1. Water Supply and Distribution- $1,849
2. Wastewater Collection and Treatment- $1,290
Total: $3,139
Page 18 of 18
APPENDIX "A"
LOCAL GOVERNMENT CODE
CHAPTER 395. FINANCING CAPITAL IMPROVEMENTS REQUIRED BY NEW
DEVELOPMENT IN MUNICIPALITIES, COUNTIES, AND CERTAIN OTHER LOCAL
GOVERNMENTS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 395.001. DEFINITIONS. In this chapter:
(1) "Capital improvement" means any of the following
facilities that have a life expectancy of three or more years and
are owned and operated by or on behalf of a political subdivision:
(A) water supply, treatment, and distribution
facilities; wastewater collection and treatment facilities; and
storm water, drainage, and flood control facilities; whether or not
they are located within the service area; and
(B) roadway facilities.
(2) "Capital improvements plan" means a plan required by
this chapter that identifies capital improvements or facility
expansions for which impact fees may be assessed.
(3) "Facility expansion" means the expansion of the
capacity of an existing facility that serves the same function as
an otherwise necessary new capital improvement, in order that the
existing facility may serve new development. The term does not
include the repair, maintenance, modernization, or expansion of an
existing facility to better serve existing development.
(4) "Impact fee" means a charge or assessment imposed by
a political subdivision against new development in order to
generate revenue for funding or recouping the costs of capital
improvements or facility expansions necessitated by and
attributable to the new development. The term includes amortized
charges, lump -sum charges, capital recovery fees, contributions in
aid of construction, and any other fee that functions as described
by this definition. The term does not include:
(A) dedication of land for public parks or payment
Page -1 -
APPENDIX "A"
in lieu of the dedication to serve park needs;
(B) dedication of rights -of -way or easements or
construction or dedication of on -site or off -site water
distribution, wastewater collection or drainage facilities, or
streets, sidewalks, or curbs if the dedication or construction is
required by a valid ordinance and is necessitated by and
attributable to the new development;
(C) lot or acreage fees to be placed in trust funds
for the purpose of reimbursing developers for oversizing or
constructing water or sewer mains or lines; or
(D) other pro rata fees for reimbursement of water
or sewer mains or lines extended by the political subdivision.
However, an item included in the capital improvements plan may
not be required to be constructed except in accordance with Section
395.019(2), and an owner may not be required to construct or
dedicate facilities and to pay impact fees for those facilities.
(5) "Land use assumptions" includes a description of the
service area and projections of changes in land uses, densities,
intensities, and population in the service area over at least a 10-
year period.
(6) "New development" means the subdivision of land; the
construction, reconstruction, redevelopment, conversion, structural
alteration, relocation, or enlargement of any structure; or any use
or extension of the use of land; any of which increases the number
of service units.
(7) "Political subdivision" means a municipality, a
district or authority created under Article III, Section 52, or
Article XVI, Section 59, of the Texas Constitution, or, for the
purposes set forth by Section 395.079, certain counties described
by that section.
(8) "Roadway facilities" means arterial or collector
streets or roads that have been designated on an officially adopted
Page -2 -
APPENDIX "A"
roadway plan of the political subdivision, together with all
necessary appurtenances. The term includes the political
subdivision's share of costs for roadways and associated
improvements designated on the federal or Texas highway system,
including local matching funds and costs related to utility line
relocation and the establishment of curbs, gutters, sidewalks,
drainage appurtenances, and rights -of -way.
(9) "Service area" means the area within the corporate
boundaries or extraterritorial jurisdiction, as determined under
Chapter 42, of the political subdivision to be served by the
capital improvements or facilities expansions specified in the
capital improvements plan, except roadway facilities and storm
water, drainage, and flood control facilities. The service area,
for the purposes of this chapter, may include all or part of the
land within the political subdivision or its extraterritorial
jurisdiction, except for roadway facilities and storm water,
drainage, and flood control facilities. For roadway facilities,
the service area is limited to an area within the corporate
boundaries of the political subdivision and shall not exceed six
miles. For storm water, drainage, and flood control facilities, the
service area may include all or part of the land within the
political subdivision or its extraterritorial jurisdiction, but
shall not exceed the area actually served by the storm water,
drainage, and flood control facilities designated in the capital
improvements plan and shall not extend across watershed boundaries.
(10) "Service unit" means a standardized measure of
consumption, use, generation, or discharge attributable to an
individual unit of development calculated in accordance with
generally accepted engineering or planning standards and based on
historical data and trends applicable to the political subdivision
in which the individual unit of development is located during the
previous 10 years.
Page -3 -
APPENDIX "A"
Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28,
1989. Amended by Acts 1989, 71st Leg., ch. 566, Sec. l(e), eff.
Aug. 28, 1989; Acts 2001, 77th Leg., ch. 345, Sec. 1, eff. Sept.
1, 2001.
SUBCHAPTER B. AUTHORIZATION OF IMPACT FEE
Sec. 395.011. AUTHORIZATION OF FEE. (a) Unless otherwise
specifically authorized by state law or this chapter, a
governmental entity or political subdivision may not enact or
impose an impact fee.
(b) Political subdivisions may enact or impose impact fees on
land within their corporate boundaries or extraterritorial
jurisdictions only by complying with this chapter, except that
impact fees may not be enacted or imposed in the extraterritorial
jurisdiction for roadway facilities.
(c) A municipality may contract to provide capital
improvements, except roadway facilities, to an area outside its
corporate boundaries and extraterritorial jurisdiction and may
charge an impact fee under the contract, but if an impact fee is
charged in that area, the municipality must comply with this
chapter.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28,
1989.
Sec. 395.012. ITEMS PAYABLE BY FEE. (a) An impact fee may
be imposed only to pay the costs of constructing capital
improvements or facility expansions, including and limited to the:
(1) construction contract price;
(2) surveying and engineering fees;
(3) land acquisition costs, including land purchases,
court awards and costs, attorney's fees, and expert witness fees;
and
(4) fees actually paid or contracted to be paid to an
independent qualified engineer or financial consultant preparing or
Page -4 -
APPENDIX "A"
updating the capital improvements plan who is not an employee of
the political subdivision.
(b) Projected interest charges and other finance costs may be
included in determining the amount of impact fees only if the
impact fees are used for the payment of principal and interest on
bonds, notes, or other obligations issued by or on behalf of the
political subdivision to finance the capital improvements or
facility expansions identified in the capital improvements plan and
are not used to reimburse bond funds expended for facilities that
are not identified in the capital improvements plan.
(c) Notwithstanding any other provision of this chapter, the
Edwards Underground Water District or a river authority that is
authorized elsewhere by state law to charge fees that function as
impact fees may use impact fees to pay a staff engineer who
prepares or updates a capital improvements plan under this chapter.
(d) A municipality may pledge an impact fee as security for
the payment of debt service on a bond, note, or other obligation
issued to finance a capital improvement or public facility
expansion if:
(1) the improvement or expansion is identified in a
capital improvements plan; and
(2) at the time of the pledge, the governing body of the
municipality certifies in a written order, ordinance, or resolution
that none of the impact fee will be used or expended for an
improvement or expansion not identified in the plan.
(e) A certification under Subsection (d)(2) is sufficient
evidence that an impact fee pledged will not be used or expended
for an improvement or expansion that is not identified in the
capital improvements plan.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28,
1989. Amended by Acts 1995, 74th Leg., ch. 90, Sec. 1, eff. May
16, 1995.
Page -5 -
APPENDIX "A"
Sec. 395.013. ITEMS NOT PAYABLE BY FEE. Impact fees may not
be adopted or used to pay for:
(1) construction, acquisition, or expansion of public
facilities or assets other than capital improvements or facility
expansions identified in the capital improvements plan;
(2) repair, operation, or maintenance of existing or new
capital improvements or facility expansions;
(3) upgrading, updating, expanding, or replacing
existing capital improvements to serve existing development in
order to meet stricter safety, efficiency, environmental, or
regulatory standards;
(4) upgrading, updating, expanding, or replacing
existing capital improvements to provide better service to existing
development;
(5) administrative and operating costs of the political
subdivision, except the Edwards Underground Water District or a
river authority that is authorized elsewhere by state law to charge
fees that function as impact fees may use impact fees to pay its
administrative and operating costs;
(6) principal payments and interest or other finance
charges on bonds or other indebtedness, except as allowed by
Section 395.012.
Added by Acts 1989, 71st Leg. , ch. 1, Sec. 82 (a) , eff. Aug. 28,
1989.
Sec. 395.014. CAPITAL IMPROVEMENTS PLAN. (a) The political
subdivision shall use qualified professionals to prepare the
capital improvements plan and to calculate the impact fee. The
capital improvements plan must contain specific enumeration of the
following items:
(1) a description of the existing capital improvements
within the service area and the costs to upgrade, update, improve,
expand, or replace the improvements to meet existing needs and
Page -6 -
APPENDIX "A"
usage and stricter safety, efficiency, environmental, or regulatory
standards, which shall be prepared by a qualified professional
engineer licensed to perform the professional engineering services
in this state;
(2) an analysis of the total capacity, the level of
current usage, and commitments for usage of capacity of the
existing capital improvements, which shall be prepared by a
qualified professional engineer licensed to perform the
professional engineering services in this state;
(3) a description of all or the parts of the capital
improvements or facility expansions and their costs necessitated by
and attributable to new development in the service area based on
the approved land use assumptions, which shall be prepared by a
qualified professional engineer licensed to perform the
professional engineering services in this state;
(4) a definitive table establishing the specific level
or quantity of use, consumption, generation, or discharge of a
service unit for each category of capital improvements or facility
expansions and an equivalency or conversion table establishing the
ratio of a service unit to various types of land uses, including
residential, commercial, and industrial;
(5) the total number of projected service units
necessitated by and attributable to new development within the
service area based on the approved land use assumptions and
calculated in accordance with generally accepted engineering or
planning criteria;
(6) the projected demand for capital improvements or
facility expansions required by new service units projected over a
reasonable period of time, not to exceed 10 years; and
(7) a plan for awarding:
(A) a credit for the portion of ad valorem tax and
utility service revenues generated by new service units during the
Page -7 -
APPENDIX "A"
program period that is used for the payment of improvements,
including the payment of debt, that are included in the capital
improvements plan; or
(B) in the alternative, a credit equal to 50
percent of the total projected cost of implementing the capital
improvements plan.
(b) The analysis required by Subsection (a)(3) may be
prepared on a systemwide basis within the service area for each
major category of capital improvement or facility expansion for the
designated service area.
(c) The governing body of the political subdivision is
responsible for supervising the implementation of the capital
improvements plan in a timely manner.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 82 (a) , eff. Aug. 28,
1989. Amended by Acts 2001, 77th Leg., ch. 345, Sec. 2, eff. Sept.
1, 2001.
Sec. 395.015. MAXIMUM FEE PER SERVICE UNIT. (a) The impact
fee per service unit may not exceed the amount determined by
subtracting the amount in Section 395.014(a)(7) from the costs of
the capital improvements described by Section 395.014(a)(3) and
dividing that amount by the total number of projected service units
described by Section 395.014(a)(5).
(b) If the number of new service units projected over a
reasonable period of time is less than the total number of new
service units shown by the approved land use assumptions at full
development of the service area, the maximum impact fee per service
unit shall be calculated by dividing the costs of the part of the
capital improvements necessitated by and attributable to projected
new service units described by Section 395.014(a)(6) by the
projected new service units described in that section.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28,
1989. Amended by Acts 2001, 77th Leg., ch. 345, Sec. 3, eff. Sept.
Page -8 -
APPENDIX "A"
1, 2001.
Sec. 395.016. TIME FOR ASSESSMENT AND COLLECTION OF FEE. (a)
This subsection applies only to impact fees adopted and land
platted before June 20, 1987. For land that has been platted in
accordance with Subchapter A, Chapter 212, or the subdivision or
platting procedures of a political subdivision before June 20,
1987, or land on which new development occurs or is proposed
without platting, the political subdivision may assess the impact
fees at any time during the development approval and building
process. Except as provided by Section 395.019, the political
subdivision may collect the fees at either the time of recordation
of the subdivision plat or connection to the political
subdivision's water or sewer system or at the time the political
subdivision issues either the building permit or the certificate of
occupancy.
(b) This subsection applies only to impact fees adopted
before June 20, 1987, and land platted after that date. For new
development which is platted in accordance with Subchapter A,
Chapter 212, or the subdivision or platting procedures of a
political subdivision after June 20, 1987, the political
subdivision may assess the impact fees before or at the time of
recordation. Except as provided by Section 395.019, the political
subdivision may collect the fees at either the time of recordation
of the subdivision plat or connection to the political
subdivision's water or sewer system or at the time the political
subdivision issues either the building permit or the certificate of
occupancy.
(c) This subsection applies only to impact fees adopted after
June 20, 1987. For new development which is platted in accordance
with Subchapter A. Chapter 212, or the subdivision or platting
procedures of a political subdivision before the adoption of an
impact fee, an impact fee may not be collected on any service unit
Page -9 -
APPENDIX "A"
for which a valid building permit is issued within one year after
the date of adoption of the impact fee.
(d) This subsection applies only to land platted in
accordance with Subchapter A, Chapter 212, or the subdivision or
platting procedures of a political subdivision after adoption of an
impact fee adopted after June 20, 1987. The political subdivision
shall assess the impact fees before or at the time of recordation
of a subdivision plat or other plat under Subchapter A, Chapter
212, or the subdivision or platting ordinance or procedures of any
political subdivision in the official records of the county clerk
of the county in which the tract is located. Except as provided by
Section 395.019, if the political subdivision has water and
wastewater capacity available:
(1) the political subdivision shall collect the fees at
the time the political subdivision issues a building permit;
(2) for land platted outside the corporate boundaries of
a municipality, the municipality shall collect the fees at the time
an application for an individual meter connection to the
municipality's water or wastewater system is filed; or
(3) a political subdivision that lacks authority to
issue building permits in the area where the impact fee applies
shall collect the fees at the time an application is filed for an
individual meter connection to the political subdivision's water or
wastewater system.
(e) For land on which new development occurs or is proposed
to occur without platting, the political subdivision may assess the
impact fees at any time during the development and building process
and may collect the fees at either the time of recordation of the
subdivision plat or connection to the political subdivision's water
or sewer system or at the time the political subdivision issues
either the building permit or the certificate of occupancy.
(f) An "assessment" means a determination of the amount of
Page -10 -
APPENDIX "A"
the impact fee in effect on the date or occurrence provided in this
section and is the maximum amount that can be charged per service
unit of such development. No specific act by the political
subdivision is required.
(g) Notwithstanding Subsections (a)-(e) and Section 395.017,
the political subdivision may reduce or waive an impact fee for any
service unit that would qualify as affordable housing under 42
U.S.C. Section 12745, as amended, once the service unit is
constructed. If affordable housing as defined by 42 U.S.C. Section
12745, as amended, is not constructed, the political subdivision
may reverse its decision to waive or reduce the impact fee, and the
political subdivision may assess an impact fee at any time during
the development approval or building process or after the building
process if an impact fee was not already assessed.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28,
1989. Amended by Acts 1997, 75th Leg., ch. 980, Sec. 52, eff.
Sept. 1, 1997; Acts 2001, 77th Leg., ch. 345, Sec. 4, eff. Sept.
1, 2001.
Sec. 395.017. ADDITIONAL FEE PROHIBITED; EXCEPTION. After
assessment of the impact fees attributable to the new development
or execution of an agreement for payment of impact fees, additional
impact fees or increases in fees may not be assessed against the
tract for any reason unless the number of service units to be
developed on the tract increases. In the event of the increase in
the number of service units, the impact fees to be imposed are
limited to the amount attributable to the additional service units.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28,
1989.
Sec. 395.018. AGREEMENT WITH OWNER REGARDING PAYMENT. A
political subdivision is authorized to enter into an agreement with
the owner of a tract of land for which the plat has been recorded
providing for the time and method of payment of the impact fees.
Page -11 -
APPENDIX "A"
Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28,
1989.
Sec. 395.019. COLLECTION OF FEES IF SERVICES NOT AVAILABLE.
Except for roadway facilities, impact fees may be assessed but may
not be collected in areas where services are not currently
available unless:
(1) the collection is made to pay for a capital
improvement or facility expansion that has been identified in the
capital improvements plan and the political subdivision commits to
commence construction within two years, under duly awarded and
executed contracts or commitments of staff time covering
substantially all of the work required to provide service, and to
have the service available within a reasonable period of time
considering the type of capital improvement or facility expansion
to be constructed, but in no event longer than five years;
(2) the political subdivision agrees that the owner of a
new development may construct or finance the capital improvements
or facility expansions and agrees that the costs incurred or funds
advanced will be credited against the impact fees otherwise due
from the new development or agrees to reimburse the owner for such
costs from impact fees paid from other new developments that will
use such capital improvements or facility expansions, which fees
shall be collected and reimbursed to the owner at the time the
other new development records its plat; or
(3) an owner voluntarily requests the political
subdivision to reserve capacity to serve future development, and
the political subdivision and owner enter into a valid written
agreement.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28,
1989.
Sec. 395.020. ENTITLEMENT TO SERVICES. Any new development
for which an impact fee has been paid is entitled to the permanent
Page -12 -
APPENDIX "A"
use and benefit of the services for which the fee was exacted and
is entitled to receive immediate service from any existing
facilities with actual capacity to serve the new service units,
subject to compliance with other valid regulations.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28,
1989.
Sec. 395.021. AUTHORITY OF POLITICAL SUBDIVISIONS TO SPEND
FUNDS TO REDUCE FEES. Political subdivisions may spend funds from
any lawful source to pay for all or a part of the capital
improvements or facility expansions to reduce the amount of impact
fees.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28,
1989.
Sec. 395.022. AUTHORITY OF POLITICAL SUBDIVISION TO PAY FEES.
(a) Political subdivisions and other governmental entities may
pay impact fees imposed under this chapter.
(b) A school district is not required to pay impact fees
imposed under this chapter unless the board of trustees of the
district consents to the payment of the fees by entering a contract
with the political subdivision that imposes the fees. The contract
may contain terms the board of trustees considers advisable to
provide for the payment of the fees.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28,
1989.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 250, Sec. 1, eff. May 25,
2007.
Sec. 395.023. CREDITS AGAINST ROADWAY FACILITIES FEES. Any
construction of, contributions to, or dedications of off -site
roadway facilities agreed to or required by a political subdivision
as a condition of development approval shall be credited against
roadway facilities impact fees otherwise due from the development.
Page -13 -
APPENDIX "A"
Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28,
1989.
Sec. 395.024. ACCOUNTING FOR FEES AND INTEREST. (a) The
order, ordinance, or resolution levying an impact fee must provide
that all funds collected through the adoption of an impact fee
shall be deposited in interest -bearing accounts clearly identifying
the category of capital improvements or facility expansions within
the service area for which the fee was adopted.
(b) Interest earned on impact fees is considered funds of the
account on which it is earned and is subject to all restrictions
placed on use of impact fees under this chapter.
(c) Impact fee funds may be spent only for the purposes for
which the impact fee was imposed as shown by the capital
improvements plan and as authorized by this chapter.
(d) The records of the accounts into which impact fees are
deposited shall be open for public inspection and copying during
ordinary business hours.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28,
1989.
Sec. 395.025. REFUNDS. (a) On the request of an owner of
the property on which an impact fee has been paid, the political
subdivision shall refund the impact fee if existing facilities are
available and service is denied or the political subdivision has,
after collecting the fee when service was not available, failed to
commence construction within two years or service is not available
within a reasonable period considering the type of capital
improvement or facility expansion to be constructed, but in no
event later than five years from the date of payment under Section
395.019(1).
(b) Repealed by Acts 2001, 77th Leg., ch. 345, Sec. 9, eff.
Sept. 1, 2001.
(c) The political subdivision shall refund any impact fee or
Page -14 -
APPENDIX "A"
part of it that is not spent as authorized by this chapter within
10 years after the date of payment.
(d) Any refund shall bear interest calculated from the date
of collection to the date of refund at the statutory rate as set
forth in Section 302.002, Finance Code, or its successor statute.
(e) All refunds shall be made to the record owner of the
property at the time the refund is paid. However, if the impact
fees were paid by another political subdivision or governmental
entity, payment shall be made to the political subdivision or
governmental entity.
(f) The owner of the property on which an impact fee has been
paid or another political subdivision or governmental entity that
paid the impact fee has standing to sue for a refund under this
section.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28,
1989. Amended by Acts 1997, 75th Leg., ch. 1396, Sec. 37, eff.
Sept. 1, 1997; Acts 1999, 76th Leg., ch. 62, Sec. 7.82, eff. Sept.
1, 1999; Acts 2001, 77th Leg., ch. 345, Sec. 9, eff. Sept. 1,
2001.
SUBCHAPTER C. PROCEDURES FOR ADOPTION OF IMPACT FEE
Sec. 395.041. COMPLIANCE WITH PROCEDURES REQUIRED. Except as
otherwise provided by this chapter, a political subdivision must
comply with this subchapter to levy an impact fee.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28,
1989.
Sec. 395.0411. CAPITAL IMPROVEMENTS PLAN. The political
subdivision shall provide for a capital improvements plan to be
developed by qualified professionals using generally accepted
engineering and planning practices in accordance with Section
395.014.
Added by Acts 2001, 77th Leg., ch. 345, Sec. 5, eff. Sept. 1, 2001.
Sec. 395.042. HEARING ON LAND USE ASSUMPTIONS AND CAPITAL
Page -15 -
APPENDIX "A"
IMPROVEMENTS PLAN. To impose an impact fee, a political
subdivision must adopt an order, ordinance, or resolution
establishing a public hearing date to consider the land use
assumptions and capital improvements plan for the designated
service area.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 82 (a) , eff. Aug. 28,
1989. Amended by Acts 2001, 77th Leg., ch. 345, Sec. 5, eff. Sept.
1, 2001.
Sec. 395.043. INFORMATION ABOUT LAND USE ASSUMPTIONS AND
CAPITAL IMPROVEMENTS PLAN AVAILABLE TO PUBLIC. On or before the
date of the first publication of the notice of the hearing on the
land use assumptions and capital improvements plan, the political
subdivision shall make available to the public its land use
assumptions, the time period of the projections, and a description
of the capital improvement facilities that may be proposed.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28,
1989. Amended by Acts 2001, 77th Leg., ch. 345, Sec. 5, eff. Sept.
1, 2001.
Sec. 395.044. NOTICE OF HEARING ON LAND USE ASSUMPTIONS AND
CAPITAL IMPROVEMENTS PLAN. (a) Before the 30th day before the
date of the hearing on the land use assumptions and capital
improvements plan, the political subdivision shall send a notice of
the hearing by certified mail to any person who has given written
notice by certified or registered mail to the municipal secretary
or other designated official of the political subdivision
requesting notice of the hearing within two years preceding the
date of adoption of the order, ordinance, or resolution setting the
public hearing.
(b) The political subdivision shall publish notice of the
hearing before the 30th day before the date set for the hearing, in
one or more newspapers of general circulation in each county in
which the political subdivision lies. However, a river authority
Page -16 -
APPENDIX "A"
that is authorized elsewhere by state law to charge fees that
function as impact fees may publish the required newspaper notice
only in each county in which the service area lies.
(c) The notice must contain:
(1) a headline to read as follows:
"NOTICE OF PUBLIC HEARING ON LAND USE ASSUMPTIONS AND CAPITAL
IMPROVEMENTS PLAN RELATING TO POSSIBLE ADOPTION OF IMPACT FEES"
(2) the time, date, and location of the hearing;
(3) a statement that the purpose of the hearing is to
consider the land use assumptions and capital improvements plan
under which an impact fee may be imposed; and
(4) a statement that any member of the public has the
right to appear at the hearing and present evidence for or against
the land use assumptions and capital improvements plan.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28,
1989. Amended by Acts 2001, 77th Leg., ch. 345, Sec. 5, eff. Sept.
1, 2001.
Sec. 395.045. APPROVAL OF LAND USE ASSUMPTIONS AND CAPITAL
IMPROVEMENTS PLAN REQUIRED. (a) After the public hearing on the
land use assumptions and capital improvements plan, the political
subdivision shall determine whether to adopt or reject an
ordinance, order, or resolution approving the land use assumptions
and capital improvements plan.
(b) The political subdivision, within 30 days after the date
of the public hearing, shall approve or disapprove the land use
assumptions and capital improvements plan.
(c) An ordinance, order, or resolution approving the land use
assumptions and capital improvements plan may not be adopted as an
emergency measure.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28,
1989. Amended by Acts 2001, 77th Leg., ch. 345, Sec. 5, eff. Sept.
1, 2001.
Page -17 -
APPENDIX "A"
Sec. 395.0455. SYSTEMWIDE LAND USE ASSUMPTIONS. (a) In lieu
of adopting land use assumptions for each service area, a political
subdivision may, except for storm water, drainage, flood control,
and roadway facilities, adopt systemwide land use assumptions,
which cover all of the area subject to the jurisdiction of the
political subdivision for the purpose of imposing impact fees under
this chapter.
(b) Prior to adopting systemwide land use assumptions, a
political subdivision shall follow the public notice, hearing, and
other requirements for adopting land use assumptions.
(c) After adoption of systemwide land use assumptions, a
political subdivision is not required to adopt additional land use
assumptions for a service area for water supply, treatment, and
distribution facilities or wastewater collection and treatment
facilities as a prerequisite to the adoption of a capital
improvements plan or impact fee, provided the capital improvements
plan and impact fee are consistent with the systemwide land use
assumptions.
Added by Acts 1989, 71st Leg., ch. 566, Sec. 1(b), eff. Aug. 28,
1989.
Sec. 395.047. HEARING ON IMPACT FEE. On adoption of the land
use assumptions and capital improvements plan, the governing body
shall adopt an order or resolution setting a public hearing to
discuss the imposition of the impact fee. The public hearing must
be held by the governing body of the political subdivision to
discuss the proposed ordinance, order, or resolution imposing an
impact fee.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28,
1989. Amended by Acts 2001, 77th Leg., ch. 345, Sec. 5, eff. Sept.
1, 2001.
Sec. 395.049. NOTICE OF HEARING ON IMPACT FEE. (a) Before
the 30th day before the date of the hearing on the imposition of an
Page -18 -
APPENDIX "A"
impact fee, the political subdivision shall send a notice of the
hearing by certified mail to any person who has given written
notice by certified or registered mail to the municipal secretary
or other designated official of the political subdivision
requesting notice of the hearing within two years preceding the
date of adoption of the order or resolution setting the public
hearing.
(b) The political subdivision shall publish notice of the
hearing before the 30th day before the date set for the hearing, in
one or more newspapers of general circulation in each county in
which the political subdivision lies. However, a river authority
that is authorized elsewhere by state law to charge fees that
function as impact fees may publish the required newspaper notice
only in each county in which the service area lies.
(c) The notice must contain the following:
(1) a headline to read as follows:
"NOTICE OF PUBLIC HEARING ON ADOPTION OF IMPACT FEES"
(2) the time, date, and location of the hearing;
(3) a statement that the purpose of the hearing is to
consider the adoption of an impact fee;
(4) the amount of the proposed impact fee per service
unit; and
(5) a statement that any member of the public has the
right to appear at the hearing and present evidence for or against
the plan and proposed fee.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28,
1989. Amended by Acts 2001, 77th Leg., ch. 345, Sec. 5, eff. Sept.
1, 2001.
Sec. 395.050. ADVISORY COMMITTEE COMMENTS ON IMPACT FEES.
The advisory committee created under Section 395.058 shall file its
written comments on the proposed impact fees before the fifth
business day before the date of the public hearing on the
Page -19 -
APPENDIX "A"
imposition of the fees.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28,
1989. Amended by Acts 2001, 77th Leg., ch. 345, Sec. 5, eff. Sept.
1, 2001.
Sec. 395.051. APPROVAL OF IMPACT FEE REQUIRED. (a) The
political subdivision, within 30 days after the date of the public
hearing on the imposition of an impact fee, shall approve or
disapprove the imposition of an impact fee.
(b) An ordinance, order, or resolution approving the
imposition of an impact fee may not be adopted as an emergency
measure.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28,
1989. Amended by Acts 2001, 77th Leg., ch. 345, Sec. 5, eff. Sept.
1, 2001.
Sec. 395.052. PERIODIC UPDATE OF LAND USE ASSUMPTIONS AND
CAPITAL IMPROVEMENTS PLAN REQUIRED. (a) A political subdivision
imposing an impact fee shall update the land use assumptions and
capital improvements plan at least every five years. The initial
five-year period begins on the day the capital improvements plan is
adopted.
(b) The political subdivision shall review and evaluate its
current land use assumptions and shall cause an update of the
capital improvements plan to be prepared in accordance with
Subchapter B.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28,
1989. Amended by Acts 2001, 77th Leg., ch. 345, Sec. 6, eff. Sept.
1, 2001.
Sec. 395.053. HEARING ON UPDATED LAND USE ASSUMPTIONS AND
CAPITAL IMPROVEMENTS PLAN. The governing body of the political
subdivision shall, within 60 days after the date it receives the
update of the land use assumptions and the capital improvements
plan, adopt an order setting a public hearing to discuss and review
Page -20 -
APPENDIX "A"
the update and shall determine whether to amend the plan.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28,
1989.
Sec. 395.054. HEARING ON AMENDMENTS TO LAND USE ASSUMPTIONS,
CAPITAL IMPROVEMENTS PLAN, OR IMPACT FEE. A public hearing must be
held by the governing body of the political subdivision to discuss
the proposed ordinance, order, or resolution amending land use
assumptions, the capital improvements plan, or the impact fee. On
or before the date of the first publication of the notice of the
hearing on the amendments, the land use assumptions and the capital
improvements plan, including the amount of any proposed amended
impact fee per service unit, shall be made available to the public.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28,
1989.
Sec. 395.055. NOTICE OF HEARING ON AMENDMENTS TO LAND USE
ASSUMPTIONS, CAPITAL IMPROVEMENTS PLAN, OR IMPACT FEE. (a) The
notice and hearing procedures prescribed by Sections 395.044(a) and
(b) apply to a hearing on the amendment of land use assumptions, a
capital improvements plan, or an impact fee.
(b) The notice of a hearing under this section must contain
the following:
(1) a headline to read as follows:
"NOTICE OF PUBLIC HEARING ON AMENDMENT OF IMPACT FEES"
(2) the time, date, and location of the hearing;
(3) a statement that the purpose of the hearing is to
consider the amendment of land use assumptions and a capital
improvements plan and the imposition of an impact fee; and
(4) a statement that any member of the public has the
right to appear at the hearing and present evidence for or against
the update.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 82 (a) , eff. Aug. 28,
1989. Amended by Acts 2001, 77th Leg., ch. 345, Sec. 7, eff. Sept.
Page -21 -
APPENDIX "A"
1, 2001.
Sec. 395.056. ADVISORY COMMITTEE COMMENTS ON AMENDMENTS. The
advisory committee created under Section 395.058 shall file its
written comments on the proposed amendments to the land use
assumptions, capital improvements plan, and impact fee before the
fifth business day before the date of the public hearing on the
amendments.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28,
1989.
Sec. 395.057. APPROVAL OF AMENDMENTS REQUIRED. (a) The
political subdivision, within 30 days after the date of the public
hearing on the amendments, shall approve or disapprove the
amendments of the land use assumptions and the capital improvements
plan and modification of an impact fee.
(b) An ordinance, order, or resolution approving the
amendments to the land use assumptions, the capital improvements
plan, and imposition of an impact fee may not be adopted as an
emergency measure.
Added by Acts 1989, 71st Leg. , ch. 1, Sec. 82 (a) , eff. . Aug. 28,
1989.
Sec. 395.0575. DETERMINATION THAT NO UPDATE OF LAND USE
ASSUMPTIONS, CAPITAL IMPROVEMENTS PLAN OR IMPACT FEES IS NEEDED.
(a) If, at the time an update under Section 395.052 is required,
the governing body determines that no change to the land use
assumptions, capital improvements plan, or impact fee is needed, it
may, as an alternative to the updating requirements of Sections
395.052-395.057, do the following:
(1) The governing body of the political subdivision
shall, upon determining that an update is unnecessary and 60 days
before publishing the final notice under this section, send notice
of its determination not to update the land use assumptions,
capital improvements plan, and impact fee by certified mail to any
Page -22 -
APPENDIX "A"
person who has, within two years preceding the date that the final
notice of this matter is to be published, give written notice by
certified or registered mail to the municipal secretary or other
designated official of the political subdivision requesting notice
of hearings related to impact fees. The notice must contain the
information in Subsections (b)(2)-(5).
(2) The political subdivision shall publish notice of
its determination once a week for three consecutive weeks in one or
more newspapers with general circulation in each county in which
the political subdivision lies. However, a river authority that is
authorized elsewhere by state law to charge fees that function as
impact fees may publish the required newspaper notice only in each
county in which the service area lies. The notice of public
hearing may not be in the part of the paper in which legal notices
and classified ads appear and may not be smaller than one -quarter
page of a standard -size or tabloid -size newspaper, and the headline
on the notice must be in 18-point or larger type.
(b) The notice must contain the following:
(1) a headline to read as follows:
"NOTICE OF DETERMINATION NOT TO UPDATE
LAND USE ASSUMPTIONS, CAPITAL IMPROVEMENTS
PLAN, OR IMPACT FEES";
(2) a statement that the governing body of the political
subdivision has determined that no change to the land use
assumptions, capital improvements plan, or impact fee is necessary;
(3) an easily understandable description and a map of
the service area in which the updating has been determined to be
unnecessary;
(4) a statement that if, within a specified date, which
date shall be at least 60 days after publication of the first
notice, a person makes a written request to the designated official
of the political subdivision requesting that the land use
Page -23 -
APPENDIX "A"
assumptions, capital improvements plan, or impact fee be updated,
the governing body must comply with the request by following the
requirements of Sections 395.052-395.057; and
(5) a statement identifying the name and mailing address
of the official of the political subdivision to whom a request for
an update should be sent.
(c) The advisory committee shall file its written comments on
the need for updating the land use assumptions, capital
improvements plans, and impact fee before the fifth business day
before the earliest notice of the government's decision that no
update is necessary is mailed or published.
(d) If, by the date specified in Subsection (b)(4), a person
requests in writing that the land use assumptions, capital
improvements plan, or impact fee be updated, the governing body
shall cause an update of the land use assumptions and capital
improvements plan to be prepared in accordance with Sections
395.052-395.057.
(e) An ordinance, order, or resolution determining the need
for updating land use assumptions, a capital improvements plan, or
an impact fee may not be adopted as an emergency measure.
Added by Acts 1989, 71st Leg., ch. 566, Sec. 1(d), eff. Aug. 28,
1989.
Sec. 395.058. ADVISORY COMMITTEE. (a) On or before the date
on which the order, ordinance, or resolution is adopted under
Section 395.042, the political subdivision shall appoint a capital
improvements advisory committee.
(b) The advisory committee is composed of not less than five
members who shall be appointed by a majority vote of the governing
body of the political subdivision. Not less than 40 percent of the
membership of the advisory committee must be representatives of the
real estate, development, or building industries who are not
employees or officials of a political subdivision or governmental
Page -24 -
APPENDIX "A"
entity. If the political subdivision has a planning and zoning
commission, the commission may act as the advisory committee if the
commission includes at least one representative of the real estate,
development, or building industry who is not an employee or
official of a political subdivision or governmental entity. If no
such representative is a member of the planning and zoning
commission, the commission may still act as the advisory committee
if at least one such representative is appointed by the political
subdivision as an ad hoc voting member of the planning and zoning
commission when it acts as the advisory committee. If the impact
fee is to be applied in the extraterritorial jurisdiction of the
political subdivision, the membership must include a representative
from that area.
(c) The advisory committee serves in an advisory capacity and
is established to:
(1) advise and assist the political subdivision in
adopting land use assumptions;
(2) review the capital improvements plan and file
written comments;
(3) monitor and evaluate implementation of the capital
improvements plan;
(4) file semiannual reports with respect to the progress
of the capital improvements plan and report to the political
subdivision any perceived inequities in implementing the plan or
imposing the impact fee; and
(5) advise the political subdivision of the need to
update or revise the land use assumptions, capital improvements
plan, and impact fee.
(d) The political subdivision shall make available to the
advisory committee any professional reports with respect to
developing and implementing the capital improvements plan.
(e) The governing body of the political subdivision shall
Page -25 -
APPENDIX "A"
adopt procedural rules for the advisory committee to follow in
carrying out its duties.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28,
1989.
SUBCHAPTER D. OTHER PROVISIONS
Sec. 395.071. DUTIES TO BE PERFORMED WITHIN TIME LIMITS. If
the governing body of the political subdivision does not perform a
duty imposed under this chapter within the prescribed period, a
person who has paid an impact fee or an owner of land on which an
impact fee has been paid has the right to present a written request
to the governing body of the political subdivision stating the
nature of the unperformed duty and requesting that it be performed
within 60 days after the date of the request. If the governing
body of the political subdivision finds that the duty is required
under this chapter and is late in being performed, it shall cause
the duty to commence within 60 days after the date of the request
and continue until completion.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28,
1989.
Sec. 395.072. RECORDS OF HEARINGS. A record must be made of
any public hearing provided for by this chapter. The record shall
be maintained and be made available for public inspection by the
political subdivision for at least 10 years after the date of the
hearing.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28,
1989.
Sec. 395.073. CUMULATIVE EFFECT OF STATE AND LOCAL
RESTRICTIONS. Any state or local restrictions that apply to the
imposition of an impact fee in a political subdivision where an
impact fee is proposed are cumulative with the restrictions in this
chapter.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28,
Page -26 -
APPENDIX "A"
1989.
Sec. 395.074. PRIOR IMPACT FEES REPLACED BY FEES UNDER THIS
CHAPTER. An impact fee that is in place on June 20, 1987, must be
replaced by an impact fee made under this chapter on or before June
20, 1990. However, any political subdivision having an impact fee
that has not been replaced under this chapter on or before June 20,
1988, is liable to any party who, after June 20, 1988, pays an
impact fee that exceeds the maximum permitted under Subchapter B by
more than 10 percent for an amount equal to two times the
difference between the maximum impact fee allowed and the actual
impact fee imposed, plus reasonable attorney's fees and court
costs.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28,
1989.
Sec. 395.075. NO EFFECT ON TAXES OR OTHER CHARGES. This
chapter does not prohibit, affect, or regulate any tax, fee,
charge, or assessment specifically authorized by state law.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28,
1989.
Sec. 395.076. MORATORIUM ON DEVELOPMENT PROHIBITED. A
moratorium may not be placed on new development for the purpose of
awaiting the completion of all or any part of the process necessary
to develop, adopt, or update land use assumptions, a capital
improvements plan, or an impact fee.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 82 (a) , eff. Aug. 28,
1989. Amended by Acts 2001, 77th Leg., ch. 441, Sec. 2, eff. Sept.
1, 2001.
Sec. 395.077. APPEALS. (a) A person who has exhausted all
administrative remedies within the political subdivision and who is
aggrieved by a final decision is entitled to trial de novo under
this chapter.
(b) A suit to contest an impact fee must be filed within 90
Page -27 -
APPENDIX "A"
days after the date of adoption of the ordinance, order, or
resolution establishing the impact fee.
(c) Except for roadway facilities, a person who has paid an
impact fee or an owner of property on which an impact fee has been
paid is entitled to specific performance of the services by the
political subdivision for which the fee was paid.
(d) This section does not require construction of a specific
facility to provide the services.
(e) Any suit must be filed in the county in which the major
part of the land area of the political subdivision is located. A
successful litigant shall be entitled to recover reasonable
attorney's fees and court costs.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 82 (a) , eff. Aug. 28,
1989.
Sec. 395.078. SUBSTANTIAL COMPLIANCE WITH NOTICE
REQUIREMENTS. An impact fee may not be held invalid because the
public notice requirements were not complied with if compliance was
substantial and in good faith.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28,
1989.
Sec. 395.079. IMPACT FEE FOR STORM WATER, DRAINAGE, AND FLOOD
CONTROL IN POPULOUS COUNTY. (a) Any county that has a population
of 3.3 million or more or that borders a county with a population
of 3.3 million or more, and any district or authority created under
Article XVI, Section 59, of the Texas Constitution within any such
county that is authorized to provide storm water, drainage, and
flood control facilities, is authorized to impose impact fees to
provide storm water, drainage, and flood control improvements
necessary to accommodate new development.
(b) The imposition of impact fees authorized by Subsection
(a) is exempt from the requirements of Sections 395.025, 395.052-
395.057, and 395.074 unless the political subdivision proposes to
Page -28 -
APPENDIX "A"
increase the impact fee.
(c) Any political subdivision described by Subsection (a) is
authorized to pledge or otherwise contractually obligate all or
part of the impact fees to the payment of principal and interest on
bonds, notes, or other obligations issued or incurred by or on
behalf of the political subdivision and to the payment of any other
contractual obligations.
(d) An impact fee adopted by a political subdivision under
Subsection (a) may not be reduced if:
(1) the political subdivision has pledged or otherwise
contractually obligated all or part of the impact fees to the
payment of principal and interest on bonds, notes, or other
obligations issued by or on behalf of the political subdivision;
and
(2) the political subdivision agrees in the pledge or
contract not to reduce the impact fees during the term of the
bonds, notes, or other contractual obligations.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28,
1989. Amended by Acts 2001, 77th Leg., ch. 669, Sec. 107, eff.
Sept. 1, 2001.
Sec. 395.080. CHAPTER NOT APPLICABLE TO CERTAIN WATER -RELATED
SPECIAL DISTRICTS. (a) This chapter does not apply to impact
fees, charges, fees, assessments, or contributions:
(1) paid by or charged to a district created under
Article XVI, Section 59, of the Texas Constitution to another
district created under that constitutional provision if both
districts are required by law to obtain approval of their bonds by
the Texas Natural Resource Conservation Commission; or
(2) charged by an entity if the impact fees, charges,
fees, assessments, or contributions are approved by the Texas
Natural Resource Conservation Commission.
(b) Any district created under Article XVI, Section 59, or
Page -29 -
APPENDIX "A"
Article III, Section 52, of the Texas Constitution may petition the
Texas Natural Resource Conservation Commission for approval of any
proposed impact fees, charges, fees, assessments, or contributions.
The commission shall adopt rules for reviewing the petition and
may charge the petitioner fees adequate to cover the cost of
processing and considering the petition. The rules shall require
notice substantially the same as that required by this chapter for
the adoption of impact fees and shall afford opportunity for all
affected parties to participate.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 82(a), eff. Aug. 28,
1989. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 11.257, eff.
Sept. 1, 1995.
Sec. 395.081. FEES FOR ADJOINING LANDOWNERS IN CERTAIN
MUNICIPALITIES. (a) This section applies only to a municipality
with a population of 105,000 or less that constitutes more than
three -fourths of the population of the county in which the majority
of the area of the municipality is located.
(b) A municipality that has not adopted an impact fee under
this chapter that is constructing a capital improvement, including
sewer or waterline or drainage or roadway facilities, from the
municipality to a development located within or outside the
municipality's boundaries, in its discretion, may allow a landowner
whose land adjoins the capital improvement or is within a specified
distance from the capital improvement, as determined by the
governing body of the municipality, to connect to the capital
improvement if:
(1) the governing body of the municipality has adopted a
finding under Subsection (c); and
(2) the landowner agrees to pay a proportional share of
the cost of the capital improvement as determined by the governing
body of the municipality and agreed to by the landowner.
(c) Before a municipality may allow a landowner to connect to
Page -30 -
APPENDIX "A"
a capital improvement under Subsection (b), the municipality shall
adopt a finding that the municipality will benefit from allowing
the landowner to connect to the capital improvement. The finding
shall describe the benefit to be received by the municipality.
(d) A determination of the governing body of a municipality,
or its officers or employees, under this section is a discretionary
function of the municipality and the municipality and its officers
or employees are not liable for a determination made under this
section.
Added by Acts 1997, 75th Leg., ch. 1150, Sec. 1, eff. June 19,
1997.
Sec. 395.082. CERTIFICATION OF COMPLIANCE REQUIRED. (a) A
political subdivision that imposes an impact fee shall submit a
written certification verifying compliance with this chapter to the
attorney general each year not later than the last day of the
political subdivision's fiscal year.
(b) The certification must be signed by the presiding officer
of the governing body of a political subdivision and include a
statement that reads substantially similar to the following: "This
statement certifies compliance with Chapter 395, Local Government
Code."
(c) A political subdivision that fails to submit a
certification as required by this section is liable to the state
for a civil penalty in an amount equal to 10 percent of the amount
of the impact fees erroneously charged. The attorney general shall
collect the civil penalty and deposit the amount collected to the
credit of the housing trust fund.
Added by Acts 2001, 77th Leg., ch. 345, Sec. 8, eff. Sept. 1, 2001.
Page -31 -
APPENDIX "D"
SUMMARY OF SERVICE UNIT EQUIVALENTS
CITY OF FRIENDSWOOD
WATER AND WASTEWATER IMPACT FEES
Meter Size and Type
Service Units
ill
simple
1
1 'A"
simple
2
Ilk"
turbine
2
2"
simple
3
2"
compound
3
2"
turbine
4
3"
compound
6
3"
turbine
10
4"
compound
10
4"
turbine
17
6"
compound
20
8"
compound
32
6"
turbine
37
10"
compound
46
8"
turbine
64
10"
turbine
100
12"
turbine
132
1" meter is the smallest acceptable meter. In any situation where a meter smaller than 1"
is installed, the 1 " fee will be charged.
Appendix "C" - Water Supply & Distribution Projects
Water Capacity Purchases
InititCapacityCosts
$ 5,665,737
$ 3,418,761
AddMGD - SEWPP
$ 2,290,379
$
Additional 1.0 MGD - La Porte Water Authority WTP
$ 1,458,299
$
Additional 0.5 MGD - MUD 55
$ 1,002,624
$ -
Additional 6.0 MGD - SEWPP
$ 7,983,138
$ 8,500,000
Raw Water System Buy -In
$ -
$ 3,675,000
1E �j
S 33,993,938
Transmission, Pumping, and Storage Facilities
Initial Transmission, Pumping, and Storage
$ 2,161,110
$
GRP Beamer Road Pump Station
$ 4,350,656
$
GRP 1.0 MG Elevated Storage Tank
$ 2,232,095
$
GRP 0.5 MG Ground Storage Tank
$ 616,289
$
42-Inch Water Main Replacement
$ -
$ 8,000,000
17,360,150
System Wide Components
Initial System Wide Components
$ 593,582
$
Water Study - The Forest
$ 23,500
$
Sun Meadow Water Well #4 Engineering Study
$ 7,500
$
Gulf Coast Water Authority Planning Study
$ 5,770
$
Water Well #3 & #4 - Increase Storage Capacity
$ 1,781,752
$ (58,773)
Second Take Point - Phase II
$ 1,095,319
$ 1,365,000
Water Plant #2 Rehabilitation
$ -
$ 1,506,750
Water Plant #5 Rehabilitation
$
$ 3,561,600
Water Plant #6 Rehabilitation
$
$ 1,104,600
Water Plant #7 Rehabilitation
$
$ 1,239,000
Utility Master Plan
$
$ 25,000
ptall
Water Distribution
Bay Area Boulevard Waterline
$ 413,700
$
South Friendswood Waterline
$ 570,182
$
Moore / Mandel Waterline System Loop
$ 476,445
$
FM 2351 16-Inch Waterline (Melody - Sunset)
$ 1,252,939
$
Blackhawk & FM 2351 Waterline
$ 1,015,275
$
Beamer Waterline (FM 2351 - Dixie Farm Road)
$ 1,649,501
$
Bay Area Boulevard 14-Inch Waterline
$ 1,186,083
$ (974,180)
WWTP 8-Inch Waterline Loop
$ 75,074
$
Viejo Waterline Loop (E & W)
$ 609,456
$ -
16-Inch Waterline South Friendswood
$ -
$ 3,150,000
16-Inch Waterline South Friendswood Phase II
$
$ 2,112,600
12-Inch Waterline Blackhawk Boulevard
$
$ 383,250
Ali, -'SowTw
11,920,325
Impact Fee Study (Water)
Estimated Impact Fee Studies (through 2013) - Water
Is 100,000 1
$
77,
$ 100,000
Appendix "D" - Wastewater Collection & Treatment Projects
Wastewater Treatment Capacity
Blackhawk Phase III
$
541,129
$
WWTP Expansion
$
-
$
10,500,000
Temporary Access Road
$
411,431
$
-
<la
Additional System Wide Projects
South Friendswood Lift Station & 20-Inch Force Main
$
1,972,370
$
-
South Friendswood Interceptor
$
1,405,850
$
South Friendswood Wastewater Diversions
$
467,691
$
Rancho Viejo Sewer Collection Line
$
1,255,111
$
Mills, Murphy, Briarmeadow Collection System
$
121,554
$
Autumn Creek Sewer
$
194,111
$
27-Inch Trunk Sewer Capacity Study - The Forest
$
12,500
$
Preliminary Study - Area One South of FM 528 (bound by
Clear Creek & Eastern City Limits)
$
6,500
$
-
Sewer Panhandle Area
$
20,000
$
Deepwood Lift Station Transfer Switch
$
26,069
$
Crazyhorse Lift Station Transfer Switch
$
20,839
$
Autumn Creek Lift Station Transfer Switch
$
13,906
$
-
Deepwood Force Main
$
1,153,727
$
2,310,000
Deepwood Lift Station Expansion
$
490,821
$
1,365,000
Beamer Road Sanitary Sewer (Phase 1)
$
1,017,518
$
945,000
FM 528 Trunk Sewer (Lundy Lane - Tower Estates)
$
322,379
$
210,000
Sun Meadow Lift Station
$
-
$
855,540
South Friendswood Drive Force Main Diversion
$
-
$
456,750
Utility Master Plan
$
-
$
25,000
El Dorado / Lundy Lane Sanitary Sewer
$
$
3,498,600
Impact Fee Study (Wastewater)
Estimated Impact Fee Studies (through 2013) - Sewer
$
100,000
$
SW
$ 11,452,560
$ 18,166,836
$ 100,000
APPENDIX "E"
Review of Historical Imapct Fee Charges
(per Service Unit -Single Family Connection)
IMPACT FEE COMPONET
City Wide Impact Fees
Water Distribution
Bay Area Boulevard S.A.
South Friendswood S.A.
Moore/Mandate Road S.A.
Wastewater Collection
Mills, Murphy, Briarmeadow S.A
South Friendswood S.A.
Autumn Creek S.A.
TOTAL IMPACT PER SERVICE UNIT
1997
2000 2003 2008
$850
$1,448 $2,859 $3,139
$391
$328
$248
$245
$806
$2,532 $2,532
$488 $479
$246
$850- $1,448- $2,859 $3,139
$3,382 $3,980