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HomeMy WebLinkAboutOrdinance No. 2019-02 (Title: An ordinance approving the amendments to the land use assumptions, the capital improvements plan, the imposition of impact fees and amending Section 74-52(d) and Appendix D.) ORDINANCE NO. 2019-02 AN ORDINANCE AMENDING AND UPDATING LAND USE ASSUMPTIONS AND CAPITAL IMPROVEMENTS PLAN AND IMPOSITION OF IMPACT FEES PURSUANT TO THE TEXAS LOCAL GOVERNMENT CODE ANNOTATED, § 395.001 ET. SEQ.; AMENDING THE FRIENDSWOOD CITY CODE, CHAPTER 74 "TAXATION",ARTICLE III,IMPACT FEES, SECTION 74-52(D) AND APPENDIX D TO INCLUDE UPDATED IMPACT FEE AMOUNTS; PROVIDING A PENALTY IN AN AMOUNT NOT TO EXCEED $500 FOR VIOLATION OF ANY PROVISIONS HEREOF BY INCLUSION IN THE CODE OF ORDINANCES; REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES INCONSISTENT OR IN CONFLICT HEREWITH; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR PUBLICATION AND EFFECTIVE DATE. * * * * * * WHEREAS, by virtue of Vernon's Texas Codes Annotated, Local Government Code, Chapter 395 ("State Law"), the City Council has found it necessary and appropriate to revise the City's capital improvements plan and update impact fees to comply with the provisions of said State Law; and WHEREAS, the City Council has employed qualified professionals to revise the capital improvements plan and calculate updated impact fees, and has held a public hearing, as required by State Law, at which hearing all persons desiring to be heard were heard; and WHEREAS, the City of Friendswood first adopted Impact Fees for New Construction in 1990 in accordance with applicable law; and WHEREAS, Section 395.052 of the Texas Local Government Code requires that the land use assumptions and capital improvement plan for which an impact fee is imposed shall be reviewed, evaluated, and updated at least every five years; and WHEREAS, in accordance with the provisions of Chapter 395 of the Texas Local Government Code, "Financing Capital Improvements Required by New Development in Municipalities, Counties, and Certain other Local Governments — Subchapter C. Procedures for Adoption of Impact Fee," Sections 395.052 and 395.058, the City Council of the City of Friendswood appointed the Planning and Zoning Commission to act as the Capital Improvements Advisory Committee, (Committee), for the purpose of updating the land use assumptions, capital improvements, and impact fees and determined that the appointment of such Committee complied in all respects to the provisions of law; and WHEREAS, the Committee has filed its written comments on the proposed amendments to the land use assumptions, capital improvements plan, and impact fees as required by law,before the fifth business day before the date of the public hearing,for which notice was properly provided by the Friendswood City Council within 60 days after the date it received the update of the land use assumptions and capital improvements plan, in accordance with sections 395.053 and 395.056 of the Texas Local Government Code; and WHEREAS,the City Council has completed an Impact Fee Analysis on which to base the recommended amendment of fees and has caused to be prepared a new Capital Improvements Plan and Land Use Assumptions; and Ord No.2019-02 2 WHEREAS, the City of Friendswood has met all of the legal requirements and prerequisites for implementation of impact fees in accordance with Chapter 395 of the Texas Local Government Code; and WHEREAS, the City Council of the City of Friendswood finds and determines its legislative intent to enable the provisions of Chapter 395 of the Texas Local Government Code and has determined to approve the amendments to the Impact Fees within 30 days after the date of the public hearings on the subject amendments in compliance with section 395.057; and WHEREAS, this Ordinance is intended to and satisfies the statutory requirements for adoption of amendments to the land use assumptions and the capital improvements plan and modification and implementation of impact fees. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD, STATE OF TEXAS: Section 1. That the City Council of the City of Friendswood adopts the preceding preamble paragraphs as if repeated verbatim herein and find them to be true and correct facts. Section 2. The Impact Fee Study, updating land use assumptions, capital improvements plan and impact fees included in a study by Daniel S. Johnson with Daniel Scott Engineering,LLC,entitled"2018 Update Study for Land Use Assumptions,Capital Improvements Plan and Impact Fees, Water Supply / Distribution and Wastewater Treatment / Collection" is attached hereto as Exhibit"A" and incorporated for all purposes. Section 3. The"2018 Update Study for Land Use Assumptions, Capital Improvements Plan and Impact Fees Water Supply / Distribution and Wastewater Treatment / Collection" by Daniel S. Johnson with Daniel Scott Engineering, LLC, as shown in Exhibit "A" which was prepared as part of the Impact Fee Study, is hereby adopted and made a part of this Ordinance, and the Impact Fees set forth therein are hereby levied against new development on lands located within the corporate boundaries of the City of Friendswood and in compliance with Friendswood City Code, Chapter 74,Taxation,Article III. Impact Fees, Sections 74-50 through 74-52. Pursuant Ord No.2019-02 3 to Exhibit "A", the Water Impact Fee is $1,407 per equivalent service unit, and the Wastewater Impact Fee is $2,820 per equivalent service unit. The Total Impact fee for Water and Wastewater is S4,227 per equivalent service unit. Section 4. The Friendswood City Code, Chapter 74 "Taxation", Article III, Impact Fees, Section 74-52 (d) is hereby amended to read as follows: (d) Fees. The Water Impact Fee is $1,407 per equivalent service unit. The Wastewater Impact Fee is $2,820 per equivalent service unit. Total Impact Fees charged for Water and Wastewater are $4,227 per equivalent service unit. Meter size and Type Equivalent Service Units 1" simple 1 1 1/2" simple 2 2" simple 3 3,, compound 6 4" compound 10 6" compound 20 8,, compound 32 10" compound 46 12" compound 86 [1" meter is the smallest acceptable meter. In any situation where a meter smaller than 1" is installed, the 1" fee will be charged]. Section 5. The Friendswood City Code, Appendix D, also being the fee schedule ordinance of the City, is hereby amended by changing"Utilities (5) City-wide impact fees"to read as follows: "Utilities (5) City-wide impact fees: Code Section 74-52 (a) Water impact fees S1,407 74-52 (d) (b) Wastewater impact fees S2,820 74-52 (d) Total Impact Fees charged for Water and Wastewater are S4,227 per equivalent service unit." The Impact Fee Chart attached as Exhibit "B" incorporated herein and made a part hereof for all purposes, calculates the water and wastewater impact fees charged for meter sizes ranging from 1"to 12", based on the water and wastewater impact fees adopted in this Ordinance. Section 6. Any person who shall violate any provision of this Ordinance shall be deemed guilty of a misdemeanor and, upon conviction, shall be fined in an amount not more than Ord No. 2019-02 4 Five Hundred Dollars ($500.00)per offense, or the maximum amount provided by law. Each day of violation shall constitute a separate offense. Section 7. All ordinances or parts of ordinances or resolutions inconsistent or in conflict herewith are, to the extent of such inconsistency or conflict, hereby repealed but only to the extent of such conflict. Section 8. In the event any clause, phrase, provision, sentence, or any part of this Ordinance or the application of the same to any person or circumstances shall for any reason be adjudged invalid or held unconstitutional by a court of competent jurisdiction, it shall not affect, impair, or invalidate this Ordinance 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. Section 9. It is the intent of the City Council of the City of Friendswood, Texas, that the provisions of this Ordinance shall be codified in the City's official Code of Ordinances as provided hereinabove. Section 10. All rights and remedies which have accrued in favor of the City under this Chapter and amendments thereto shall be and are preserved for the benefit of the City. Section 11. The City Secretary shall give notice of the enactment of this Ordinance by promptly publishing its descriptive caption and penalty after final passage in the official newspaper of the City, and the Ordinance shall take effect upon publication. PASSED AND APPROVED on first reading this 14th day of January,2019. PASSED,APPROVED,AND ADOPTED on second and final reading this 4th day of February,2019. ike F.4 reman May o ATTEST: Ord No.2019-02 5 --**--6 VI.R.1.8.NO:,s,- 4, -7S-Y-'' '', ' A ,... • • Melinda Welsh, TRIM j o• ), •o 60 1 City Secretary -* . • • ♦ •"J ♦, ®F ♦,♦ Ord No.2019-02 6 EXHIBIT"A" 2018 UPDATE STUDY OF LAND USE ASSUMPTIONS, CAPITAL IMPROVEMENTS PLAN and IMPACT FEES 'OD iticT* i1/4114. pa* fri 1 f 01 41' Ailif Lic 4941r rEX d#. IMPACT FEE STUDY ICJ 8 UPDATE ��I UD OF' ��D US A�BLJNIP T'IONS, CAPITAL IMPROVEMENTS PLAN & IMPACT` �" S WATER I.�PPL. DIST`RIBC�TION AND WASTEWATER TRA`T'� I�ITCOL�L�ECT"I0� CITY OF �'RI��D �00�, T �S '5.'',f-'4!i- fi IV...fr„ ..sli)Siolto,*„ *- *.." p- w4,6*, ,'-• ••-•,,-7--.','-.),.. .-,fr„. * 7y� �`1it:; r`J«�'/ ..*t a (� _,...:41.4,1%,#:..5.- -.-.' , __-:,- .,.. , ___, „,„:71-i, 'V": ,,43( . ilik tf .. NOE; ::::::,,,,,-,- '*** ,. rEX AS- - NOVEMBER 2018 PREPARED BY: DAN -. Scxyrrr 1 EN �C)RF�I�AVENU , I�I�I I_,, T �1 70 77 `78 TBPE F-�A9827 CITY OF FRIENDSWOOD IMPACT FEE STUDY CAPITAL IMPROVEMENTS ADVISORY COMMITTEE .DOE MATRANGA RICHARD CLARK BRETT BANFIELD ERIC GUENTHER LISA LUNDQUIST RICHARD SASSON MARCUS PERRY Q " E OF T °4� �Q � � 0040 00 * * 0 DANIEL S. JOHNSON v° ©� 1) 91011 p �o aao �c• 4;1000o�o'�F�ca ► � 1 1 /27/2018 Page 2 of 24 CITY OF FRIENDSWOOD IMPACT FEE STUDY TABLE OF CONTENTS INTRODUCTION 5 A. BACKGROUND 5 B. CAPITAL IMPROVEMENTS ADVISORY COMMIT I'EE 6 C. PLANNING PERIOD 6 D. CAPITAL IMPROVEMENTS 6 E. IMPACT FEES 6 II. LAND USE ASSUMPTIONS 7 A. BASIS 7 B. SERVICE AREA 7 C. POPULATION PROJECTIONS 8 D. GROWTH RATE 1 O III. CAPITAL IMPROVEMENTS PLAN 1 1 A. CAPITAL IMPROVEMENTS PROGRAM 11 B. EXISTING CAPITAL IMPROVEMENTS 12 1 . WATER SUPPLY AND DISTRIBUTION 12 2. WASTEWATER COLLECTION AND TREATMENT 13 C. PROJECTS 14 D. PROJECT DESCRIPTIONS 15 E. EQUIVALENT SERVICE UNITS 17 IV. IMPACT FEES 22 A. ADMINISTRATIVE ITEMS 22 B. MAXIMUM IMPACT FEE DETERMINATION 23 V. SUMMARY AND RECOMMENDATIONS 24 Page 3 of 24 CITY OF FRIENDSWOOD IMPACT FEE STUDY LIST OF TABLES 1 . IMPACT FEE STUDY UPDATE SUMMARY 5 2. US CENSUS BUREAU 8 3. HGAC POPULATION PROJECTIONS 9 4. 1 .5%ANNUAL GROWTH RATE PROJECTIONS 1 O 5. WATER PROJECTS FOR EXISTING NEEDS 12 6. WASTEWATER PROJECTS FOR EXISTING NEEDS 13 7. CAPITAL IMPROVEMENTS PLAN 14 8. EQUIVALENT METER TABLE 17 9. CURRENT RESIDENTIAL METER SUMMARY 18 1 O. CURRENT NONRESIDENTIAL METER SUMMARY 19 1 1 . CURRENT WATER METER SUMMARY 20 12. EQUIVALENT SERVICE UNITS 21 13. MAXIMUM IMPACT FEES 23 14. PREVIOUS IMPACT FEES 24 Page 4 of 24 CITY OF FRIENDSWOOD IMPACT FEE STUDY INTRODUCTION A. BACKGROUND The City of Friendswood, Texas has elected to adopt Water and Wastewater Impact Fees to assist in the financing of Capital Improvements for those systems that are necessitated by growth and development anticipated in the City. 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. 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. Table 1 provides a historical summary of all updates to the Impact Fee Study for the City of Friendswood: TABLE 1 IMPACT FEE STUDY UPDATE SUMMARY Year Revision Resolution Preparer 1990 Original R90-22 Brown& Gay Engineers, Inc. 1991 Amendment R91-4 Brown& Gay Engineers, Inc. 1993 Update#1 R93-24 Brown& Gay Engineers, Inc. 1997 Update#2 R97-48 Claunch&Miller,Inc. 2000 Update#3 R2000-40 Claunch&Miller,Inc. 2003 Update#4 R2003-47 Claunch&Miller, Inc. 2008 Update#5 R2008-17 HDR/Claunch&Miller, Inc. 2013 Update#6 R2013-11 JET Civil Consulting, LLC 2018 Update#7 Daniel Scott Engineering, LLC In 2013, the City Council authorized JET Civil Consulting, LLC to prepare the update of the Land Use Assumptions, Capital Improvements Plan (CIP), and Impact Fee Study in accordance with Chapter 395 of the Local Government Code (Impact Fee Legislation), which is the state legislation regulating this adoption process. In July 2018, the City authorized Daniel Scott Engineering, LLC (DSE) to prepare the required five-year update of the 2013 Study. This document includes the basis for determination of the Water and Wastewater Impact Fee per Equivalent Service Unit (ESU), based on Land Use Assumptions and the corresponding CIP. Page 5 of 24 CITY OF FRIENDSWOOD IMPACT FEE STUDY B. CAPITAL IMPROVEMENTS ADVISORY COMMITTEE The City Council has appointed a Capital Improvements Advisory Committee to give policy direction, guide the public hearing process, and make a recommendation to the Council regarding the final report and fee amount. This committee consists of the Friendswood Planning and Zoning Commission (P&Z), which currently has at least one member representing the real estate industry, as required by the Impact Fee Legislation. C. PLANNING PERIOD The City of Friendswood is located in a high growth corridor along Interstate 45, approximately 20 miles southeast of the City of Houston, and about 30 miles northwest of the City of Galveston. The planning period for this Impact Fee Study will be for the ten-year period from 2018-2028 in accordance with requirements of the aforementioned Chapter 395. Population projections and resulting growth for the planning period can be found in the Land Use Assumptions, and details of the projects are shown in the CIP. D. CAPITAL IMPROVEMENTS Water and Wastewater Capital Improvements are defined as "any facility that has a life expectancy of three or more years and are owned and operated by or on behalf of a political subdivision: water supply, treatment and distribution facilities; wastewater collection and treatment facilities." Costs for system improvements necessitated by regulatory changes, maintenance requirements, or to correct deficiencies in existing developed areas are not eligible for reimbursement by impact fees and are therefore not included in the CIP developed for the purposes of this study. Many of the improvements may be financed through the issuance of bonds, and therefore finance charges can been estimated and included in the fee calculation. Acquisition of land, easements, and engineering costs for the projects are also eligible under the legislation and can be included in the calculation. E. IMPACT FEES This document will establish the projected number of Equivalent Service Units estimated to be added to the City of Friendswood's water and wastewater system over the Planning Period, as well as the anticipated areas, which will require these services. The required Capital Improvements to be constructed can then be determined with cost estimates that will be utilized to calculate the proposed Impact Fees. Page 6 of 24 CITY OF FRIENDSWOOD IMPACT FEE STUDY LAND USE ASSUMPTIONS A. BASIS The Land Use Assumptions established herein are based on the following: • The City's current Zoning Map • The City's Capital Improvements Program 2017 Update • The City's Comprehensive Plan adopted in 1998 • Vision 2020 • 2001 Groundwater Reduction Plan • Area Growth projections provided by HGAC and other sources • United States Census Bureau data and previous historical data • Current growth trends experienced in the City • Availability of vacant tracts in the City B. SERVICE AREA The Impact Fee Legislation defines Land Use Assumptions as: "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 ten-year period." The City of Friendswood has elected to define the service area for Impact Fees as the current City Limits. The legislation also allows the City to impose impact fees in the City's Extraterritorial Jurisdiction (ETJ); however, the City of Friendswood has no ETJ. The City has elected to establish Impact Fees on a system-wide basis. Currently, the City has no standalone systems (Municipal Utility Districts) providing water and wastewater to residents and businesses. Page 7 of 24 CITY OF FRIENDSWOOD IMPACT FEE STUDY C. POPULATION PROJECTIONS According to the United States Census Bureau (Table 2), the population for the City of Friendswood was estimated at 39,839 on July 1, 2017. This represents an increase of 11.3% from the 2010 Official Census (35,805), and an increase of 4,034 people in seven years. After the increase of 23.3% (6,768 people) from 2000 (29,037) to 2010 (35,805), the Census Bureau continues to document Friendswood's growth toward buildout. Over the last 47 years of Census data, the City of Friendswood has experienced varying population increases. The City witnessed tremendous population spikes of 88.9% from 1970 to 1980, and 112.8% from 1980 to 1990, and a steady increase of about 6,300 people every decade since the 1990's. Altogether, the City has experienced an average annual population increase of 4.27% since 1970. The 2013 Impact Fee Study incorporated an average annual increase of 1.5% for the population projection, which proved to be consistent with the 1.54% increase observed by the Census Bureau. TABLE 2 US CENSUS BUREAU Geography Name Year Household % Population Population Increase Increase Friendswood 1970 5,675 Friendswood 1980 10,719 88.9% 5,044 Friendswood 1990 22,814 112.8% 12,095 Friendswood 2000 29,037 27.3% 6,223 Friendswood 2010 35,805 23.3% 6,768 Friendswood 2017 39,839 11.3% 4,034 ANNUAL AVERAGE SINCE 1970: 4.27% 726.9 SINCE 1980: 3.62% 787.0 SINCE 1990: 2.09% 630.6 SINCE 2000: 1.88% 635.4 SINCE 2010: 1.54% 576.3 Page 8 of 24 CITY OF FRIENDSWOOD IMPACT FEE STUDY The City's Comprehensive Plan, Vision 2020, and the Groundwater Reduction Plan projected a build-out population of 57,400 within the combined 21 square miles of the City. Growth trends for the current decade are on a similar track with Houston Galveston Area Council (HGAC) projecting a population increase of 9,147 by 2028. The HGAC population projections for the 10-Year Planning Period are presented in Table 3. TABLE 3 HGAC POPULATION PROJECTIONS Place Year Household % Population Population Increase Increase Friendswood 2015 38,435 - - Friendswood 2016 39,066 - - Friendswood 2017 39,697 - - Friendswood 2018 40,327 - - Friendswood 2019 40,958 1.6% 630.8 Friendswood 2020 41,589 1.5% 630.8 Friendswood 2021 42,853 3.0% 1,263.8 Friendswood 2022 44,117 2.9% 1,263.8 Friendswood 2023 45,380 2.9% 1,263.8 Friendswood 2024 46,644 2.8% 1,263.8 Friendswood 2025 47,908 2.7% 1,263.8 Friendswood 2026 48,430 1.1% 522.1 Friendswood 2027 48,952 1.1% 522.1 Friendswood 2028 49,474 1.1% 522.1 ANNUAL 2.1% AVERAGE: 9,147 TOTAL: Page 9 of 24 CITY OF FRIENDSWOOD IMPACT FEE STUDY D. GROWTH RATE According to the Census Bureau, the City of Friendswood has experienced an average growth rate of 1.54% per year over the last seven years. In turn, HGAC projects the City's average annual growth rate at 2.1%over the next ten years. The 2008 Impact Fee Study used a 1.9% annual growth rate, which projected a population in 2017 of 42,988. The 2013 Impact Fee Study implemented a slightly more conservative rate of 1.5% and estimated a population in 2017 of 41,144. According to the US Census Bureau, Friendswood's 2017 population was actually estimated at 39,839, which is on target with the 2013 projection. Therefore, the recommendation of this 2018 Updated Study is to maintain the same conservative growth rate for the planning period between 2018 and 2028 at 1.5%. This 1.5% Growth Rate is recommended for the projection of population and resulting service units for the calculation of the Impact Fee amount. Table 4 indicates the resulting population projections by year,with a total estimated population growth of 6,492 over the next 10 years. TABLE 4 1 .5% ANNUAL GROWTH RATE PROJECTIONS Source Year Household %o Increase Population Population Increase US 2000 29,037 Census 2010 35,805 23.3% 6,768 Data 2017 39,839 11.3% 4,034 Friendswood 2018 40,436 Friendswood 2019 41,043 607 Friendswood 2020 41,659 616 Friendswood 2021 42,284 625 Friendswood 2022 42,918 634 Friendswood 2023 43,562 644 Friendswood 2024 44,215 653 Friendswood 2025 44,878 663 Friendswood 2026 45,552 673 Friendswood 2027 46,235 683 Friendswood 2028 46,928 694 AVERAGE: 1.5% TOTAL: 6,492 Page 10 of 24 CITY OF FRIENDSWOOD IMPACT FEE STUDY III. CAPITAL IMPROVEMENTS PLAN A. CAPITAL IMPROVEMENTS PROGRAM Pursuant to the City Charter, the City Manager is required to submit a Capital Improvements Program (PROGRAM) to the City Council. By agreement, this program is to be updated periodically to reflect the completion of projects, the addition of new projects, and to update project costs for financial projection and management efforts. The first PROGRAM was adopted in 1999 and has been updated in 2003, 2007, 2009, 2012, 2014, and 2017. From the 2017 Update: "The intent of the updated program is to identify, describe, and, prioritize the infrastructure needs of the community as it grows and evolves. The overall goal of the CIP is to maintain the same high quality of life for all citizens through the timely anticipation of the City's needs, planning of improvement projects and determining funding sources as the community grows. The program is also intended to depict financial challenges of the City's growth and maintenance of infrastructure that characterize the City's future and the associated funding requirements to meet these objectives. The programming portion includes formulating preliminary plans, projecting estimated project costs, setting priorities, identifying funding sources, and scheduling the implementation of the plans. " The City of Friendswood adopted their current Capital Improvement Projects Manual in May of 2017 by Resolution R2017-13. This Manual proposed 77 projects for water, wastewater, facilities, drainage, parks, and streets. Within those 77 projects, 7 water and 10 wastewater projects were identified for the next 5 years (2017-2021). Additionally, 23 water and wastewater projects were identified in the "Beyond 5 Year Plan." Since the planning period for the Impact Fee adoption process is 10 years, all of the eligible water and wastewater projects from the Capital Improvements Program are included, as well as other projects anticipated within the 10-year range. Page 1 1 of 24 CITY OF FRIENDSWOOD IMPACT FEE STUDY B. EXISTING CAPITAL IMPROVEMENTS 1. WATER SUPPLY AND DISTRIBUTION Historically, water supply for the City of Friendswood was served exclusively by groundwater. However, in 1975, the Harris-Galveston Subsidence District (HGSD) was created by the Texas Legislature for the purpose of preventing land subsidence and increased flooding. Under HGSD's requirements, it was determined that the City's future water supply must be converted from a majority of groundwater use to a majority of surface water use. In January 2001, a Groundwater Reduction Plan (GRP) was developed by Klotz Associates, Inc. in order to meet the HGSD requirements. The GRP indicated that the total water supply needed for the anticipated buildout population of 57,400 would be 16.8 million gallons per day (MGD): 57,400 x 136 gallons per person per day x 2.16 peaking factor= 16.8 MGD Further, it determined that, in order to meet groundwater reduction goals, the appropriate mix should be 11.8 MGD surface water and 5.0 MGD groundwater. As such, the City of Friendswood has diligently purchased 12.0 MGD of water treatment capacity from the City of Houston's Southeast Water Purification Plant, La Porte Water Authority, and MUD 55. As described in the PROGRAM, there are six (6) water projects that will be needed in the next 5 years in order to upgrade, update, and improve the existing Capital Improvements to meet the existing needs of the City. Although these projects cannot be used in the Impact Fee calculation, their inclusion in this Study is a requirement of Section 395.014 (a) (1) and (2) of the Impact Fee Legislation: TABLE 5 WATER PROJECTS FOR EXISTING NEEDS WATER PROJECTS APPROXIMATE COST 1. City of Houston Water Plant Rehabilitation S 3,500,000 2. Water Plant#1 Rehabilitation $ 1,339,000 3. 42" Water Main Replacement $ 12,656,000 4. Elevated Storage Tank#2 Rehabilitation S 1,059,000 5. Water Plant Tank#3 Rehabilitation $ 706,000 6. Water Plant Tank#4 Rehabilitation $ 706,000 SUBTOTAL WATER $ 19,966,000 Page 12 of 24 CITY OF FRIENDSWOOD IMPACT FEE STUDY 2. WASTEWATER COLLECTION AND TREATMENT Since 1979, the City of Friendswood has purchased 4.875 MGD of the 9.25 MGD capacity in the Blackhawk Regional Wastewater Treatment Facility. 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 has previously been subject to the impact fee. In order to serve the anticipated buildout population of 57,400 people, a total capacity of 6.5 MGD will be needed: 57,400 people /2.8 people per connection=20,500 connections 20,500 connections x 315 gallons per connection = 6.5 MGD Therefore, a 2.0 MGD Phase III expansion is anticipated to serve new development and was included in the 2013 impact fee calculation. Additionally, the PROGRAM identified 10 wastewater projects needed in the next 5 years in order to upgrade, update, and improve the existing Capital Improvements to meet the existing needs of the City. Although these projects cannot be used in the Impact Fee calculation, their inclusion in this Study is a requirement of Section 395.014 (a) (1) and(2)of the Impact Fee Legislation: TABLE 6 WASTEWATER PROJECTS FOR EXISTING NEEDS WASTEWATER PROJECTS APPROXIMATE COST 1. Lift Station#1 Replacement S 1,774,000 2. Lift Station#4 Replacement $ 1,774,000 3. Lift Station#17 Replacement S 1,774,000 4. Lift Station#22Replacement S 2 637,000 5. Lift Station#23 Replacement $ 3 935,000 6. Sanitary Sewer System Assessment Phase 4 S 1,464,000 7. Sanitary Sewer System Assessment Phase 5 $ 100,000 8. Sanitary Sewer System Assessment Phase 6 $ 100,000 9. Sanitary Sewer System Assessment Phase 7 S 175,000 10. Sanitary Sewer System Assessment Phase 8 S 1,830,000 SUBTOTAL WASTEWATER $ 15,563,000 Page 13 of 24 CITY OF FRIENDSWOOD IMPACT FEE STUDY C. PROJECTS As discussed, the City's Capital Improvements Program (PROGRAM) identified 77 projects for water, wastewater, facilities, drainage, parks, and streets. The Capital Improvements Plan (CIP) contained within this 2018 Updated Impact Fee Study document consists of only eligible water and wastewater projects from the City's PROGRAM. Four (4) water projects and five (5) wastewater projects were identified within the PROGRAM for this CIP and are included in Table 7. The approximate subtotal costs are S6.8M for the water projects and S13.7M for the wastewater projects. TABLE 7 CAPITAL IMPROVEMENTS PLAN WATER PROJECTS APPROXIMATE COST 1. Sixteen Inch Waterline Phase III $ 2,500,000 2. Beamer Road Waterline $ 2,043,000 3. East Waterline S 1,354,000 4. South Friendswood Service Area Loop $ 955,000 SUBTOTAL WATER S 6,852,000 WASTEWATER PROJECTS APPROXIMATE COST 1. Beamer Road Sanitary Sewer $ 4,200,000 2. El Dorado/Lundy Lane Sanitary Sewer S 3,880,000 3. FM 528—Falcon Ridge to Windsong Sanitary Sewer $ 1,005,000 4. FM 528—Lundy Lane to Tower Estates Sanitary Sewer $ 1,585,000 5. Windsong Sanitary Sewer S 3,061,000 SUBTOTAL WASTEWATER $ 13,731,000 Page 14 of 24 CITY OF FRIENDSWOOD IMPACT FEE STUDY D. PROJECT DESCRIPTIONS Project descriptions for the four (4) water projects and five (5) wastewater projects contained within this CIP were also included within the PROGRAM, and are provided below per the requirement of Section 395.014 (a) (3) of the Impact Fee Legislation: Water Project#1: Sixteen Inch Waterline Phase III S 2,500,000 The proposed improvements would extend waterlines west from Water Plant #4 connecting to existing City waterlines in the western reaches of the City Limits. Currently, limited unlooped waterlines service various developments throughout the western region of Friendswood. This proposed water line loop would open up development opportunities along FM 528 and greatly improve water pressure. Water Project#2: Beamer Road Waterline $ 2,043,000 This project consists of the proposed installation of a twelve-inch waterline along Beamer Road from FM2351 to Dixie Farm Road. The proposed improvements will expand those installed in the 2010 Beamer Road utility project funded with U.S. Economic Development Administration Grant. Efforts to attract light industry and office warehouse business and development into this area are largely dependent on availability of City service infrastructure. Water Project#3: East Waterline $ 1,354,000 This project consists of the installation of approximately 2,850 linear feet of fourteen- inch waterline that would extend water service to the East Service Area, and then loop the line back into the existing system by installing 6,600 linear feet of twelve-inch waterline to Bay Area Boulevard. This project will provide water to the eastern most area of the City and loop the FM 528 line to the Bay Area Boulevard line. Water Project#4: South Friendswood Service Area Loop S 955,000 This project would extend waterlines to existing City water-lines in the southern reaches of the City Limits. Currently, limited unlooped water lines service various developments throughout the southern region of Friendswood. The proposed water line loop would open up development opportunities along FM 528. Page 15 of 24 CITY OF FRIENDSWOOD IMPACT FEE STUDY Wastewater Project#1: Beamer Road Sanitary Sewer S 4,200,000 This project consists of the proposed installation of additional gravity sewer lines along Beamer Road toward Dixie Farm. The proposed improvements will expand those installed in the 2010 Beamer Road utility project funded with U.S. Economic Development Administration Grant. Efforts to attract light industry and office warehouse business and development into this area are largely dependent on availability of City service infrastructure. Wastewater Project#2: El Dorado/Lundy Lane Sanitary Sewer S 3,880,000 This project will include approximately 2,500 feet of six-inch force main, 5,000 feet of twelve-inch gravity sewer, 1,500 feet of fifteen-inch gravity sewer, and twenty manholes. The lift station will be located in the vicinity of the intersection of Lundy Lane and El Dorado Lane. Easements must be obtained for construction and installation of the Lift Station. Currently this area consists of 36 large lots and large acreage tracts, and is served by individual septic systems. Wastewater Project#3: S 1,005,000 FM528 -Falcon Ridge to Windsong Sanitary Sewer The purpose of this project is to provide sanitary sewer to the non-serviced area along FM 528 from Falcon Ridge to Windsong. The project will require construction of a Lift Station, approximately 5,700 feet of eight-inch force main, 4,800 feet of ten-inch gravity line and fourteen manholes. Easements must be obtained for construction and installation of the force main. Wastewater Project#4: $ 1,585,000 FM528—Lundy Lane to Tower Estates Sanitary Sewer The construction of a new sanitary sewer is required to provide services to the currently non-serviced areas along FM 528 from Lundy Lane to Tower Estates. The project will consist of approximately 3,000 feet of ten-inch gravity line, 800 feet of eight-inch line, and ten manholes. Wastewater Project#5: Windsong Sanitary Sewer S 3,061,000 This project will provide sanitary sewer to the non-serviced area on Windsong to FM 528. The project will also include the Wind Creek and Windwood Lane areas. This project will consist of the construction of a Lift Station, in the vicinity of Windsong and Wind Creek Lane, approximately 3,000 feet of 6-inch force main, 6,450 feet of 8-inch gravity line and 18 manholes. In addition, a utility easement will be required for the construction of the Lift Station. Currently, the area is served by individual septic systems. Page 16 of 24 CITY OF FRIENDSWOOD IMPACT FEE STUDY E. EQUIVALENT SERVICE UNITS In Section 395.014 (a) (4), the Impact Fee Legislation requires that the study provide a "definitive table establishing the specific quantity of use, consumption, generation, or discharge of a service unit for each category of capital improvements or facility expansions, and an equivalent or conversion table establishing the ratio of a service unit to various types of land uses, including residential, commercial, and industrial. " Many municipalities have determined that the method that is the most equitable and easy to administer is based on the water meter size required to support the proposed building or facility. The American Water Works Association has published tables identifying the industry standard rated flow rates for meters of various sizes. These flow rates are compared to the standard residential meter (1" for Friendswood) as one service unit and provide an equivalency factor to determine the total impact fee. This method is recommended since it provides the most equitable determination of actual impact of the development on the water and wastewater systems. Table 8 establishes Equivalency Factors for water meters based on AWWA hydraulic capacities standard to the engineering industry: TABLE 8 EQUIVALENT METER TABLE Actual Meter Size AWWA Capacity Equivalency (inches) (GPM) Factor 1 50 1 1-1/2 100 2 • 2 160 3 3 300 6 4 500 10 6 1000 20 8 1600 32 10 2300 46 12 4300 86 Page 17 of 24 CITY OF FRIENDSWOOD IMPACT FEE STUDY As of October 2018, the Utility Billing Department reported a total of 12,614 existing residential water meters in the City of Friendswood. As shown in Table 9, the majority of those meters (12,513/12,614 = 99%) are 1" in size or smaller, and therefore represent a 1:1 equivalency. However, there are also 101 residential meters that are larger than 1". Using the Equivalency Factors determined in Table 8 above, these 12,614 residential meters represent a total of 12,760 equivalent meters: TABLE 9 CURRENT RESIDENTIAL METER SUMMARY Meter Size Equivalency Residential Equivalent (inches) Factor Water Meters Meters 1* 1 12,513 12,513 1-1/2 2 66 132 2 3 34 109 3 6 1 6 4 10 0 6 20 0 8 32 0 10 46 0 12 86 0 Total 12,614 12,760 *Includes 3/4", 5/8", and I"water meters. Page 18 of 24 CITY OF FRIENDSWOOD IMPACT FEE STUDY In addition to the residential water meters, the Utility Billing Department also identified 558 existing non-residential water meters in the City of Friendswood. As shown in Table 10, the majority of those meters (339/558 = 60%) are 1" in size or smaller, and therefore represent a 1:1 equivalency. However, there are also 219 non-residential meters that are larger than 1". Using the Equivalency Factors determined in Table 8 above, these 558 non-residential meters represent a total of 1,140 equivalent meters: TABLE 10 CURRENT NON-RESIDENTIAL METER SUMMARY Meter Size Equivalency Non-Residential Equivalent (inches) Factor Water Meters HMters 1* 1 339 339 1-1/2 2 50 100 2 3 141 451 3 6 18 108 4 10 7 70 6 20 2 40 8 32 1 32 10 46 0 12 86 0 Total 558 1,140 *Includes 3/4", 5/8", and I"water meters. Page 19 of 24 CITY OF FRIENDSWOOD IMPACT FEE STUDY By combining the Total Actual and Total Equivalent meter data from Tables 9 and 10 for residential and non-residential water meters, Table 11 shows that approximately 8% of the current demand can be attributed to that of non-residential usage: TABLE 11 CURRENT WATER METER SUMMARY Residential Non-Residential Total Water Meters I Water Meters Water Meters Total Actual Meters 12,614 558 13,172 Total Equivalent Meters 12,760 1,140 13,900 Percentage of Equivalent Meters 92% 8% 100% In November 1998, when Vision 2020 was prepared by Kenneth Balk & Associates, the non-residential land usage at the time was observed as 8% (536 acres out of 6,759 acres). While the Vision Summary was to "develop undeveloped land in Friendswood in general conformance to the existing zoning plan with regard to the split between residential and non-residential land as 73% Residential and 27% Commercial and Light Industrial," Friendswood is still predominantly a residential community. Utilizing the 1.5% Growth Rate recommended in Section II. Land Use Assumptions, the number of Equivalent Service Units (ESU) projected to be added from 2018 to 2028 can be determined per Section 395.014 (a) (5) and (6) of the Impact Fee Legislation. According to the HGAC data, there were 13,511 total households within the City limits of Friendswood in 2015. With a corresponding 2015 population of 38,435, this equates to a ratio of 2.84 persons per household. In the year 2020, HGAC predicts that Friendswood will have 41,589 people in 14,258 households, representing 2.92 persons per household. Averaging these HGAC data points (2.84 and 2.92) results in a density of 2.88, which directly corresponds with the 2016 Census data of 2.88 persons per household in Friendswood. Previous updates have implemented 2.80, 2.82, and 3.00, indicating that 2.88 persons per household is an appropriate value for this Study. In addition to Friendswood's residential population, approximately 8% of the water and wastewater usage is represented by non-residential development. Assuming a continued density of 2.88 people per household, and a corresponding increase in non-residential development of 8%, the following increase in ESU will provide the basis for determining the maximum allowable impact fee that may be charged by the City: Page 20 of 24 CITY OF FRIENDSWOOD IMPACT FEE STUDY TABLE 1 2 EQUIVALENT SERVICE UNITS Section 395.014(a)(6) Projected increase in population for planning period (Table 4): 6,492 Projected increase in population per Service Unit: 6,492/2.88 Projected increase in Residential Service Units: 2,254 Projected increase in Non-Residential Service Units (8%): 180 Equivalent Service Units for planning period (2018-2028) = 2,434 ESU Page 21 of 24 CITY OF FRIENDSWOOD IMPACT FEE STUDY IV. IMPACT FEES The impact fee amount per Equivalent Service Unit (ESU) will be determined based on the number of service units projected to be added to the systems over the 10-year planning period. The single-family residence will be considered as the standard service unit. A. ADMINISTRATIVE ITEMS 1. The impact fee will be assessed(subject to future updates) 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 temporary 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 will not pay the water and wastewater impact fees based on the proposed assessment method. 6. Schools are exempt from payment of impact fees unless the board of trustees consents to a specific agreement in accordance with Chapter 395, Local Government Code. 7. When an existing water meter is changed out, additional impact fees will only be assessed if the meter size is increased. The fee will be based on the incremental increase in the Service Units. 8. When meters are changed out for the same size meter or a smaller meter, no Impact Fee will be assessed. 9. If an existing home is currently on a private well and/or septic system, and public water or wastewater become available: a. If the homeowner connects within 1 year of the installation of the City services,they will not have to pay impact fees. b. If the homeowner has not connected to City services within 1 year, they will pay the full impact fee at the time of their connection. 10. Impact fees do not include tap or meter fees; these regulations do not waive any tap or meter fees. Page 22 of 24 CITY OF FRIENDSwOOD IMPACT FEE STUDY B. MAXIMUM IMPACT FEE DETERMINATION Chapter 395 of the Local Government Code was amended in 2001 to include that the City must provide for one of the following from 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 follow option (B) and provide the credit equal to 50 percent of the CIP resulting in the following maximum Impact Fees. Therefore: TABLE `I 3 MAXIMUM IMPACT FEES Total Cost of Water Projects (Table 7) _ $ 6,852,000 Total Cost of Wastewater Projects (Table 7) _ $ 13,731,000 Increase in Service Units (Table 12) = 2,434 Total Cost of Water Projects from CIP/Increase in Service Units (2018-2028) $6,852,000/2,434 = $2,815 /ESU Total Cost of Wastewater Projects from CIP/Increase in Service Units (2018-2028) $13,731,000 /2,434 = $ 5,641 /ESU Maximum Water Impact Fee: $2,815 x 50% _ $ 1,407/ESU Maximum Wastewater Impact Fee: $ 5,641 x 50% _ $ 2,820 /ESU Maximum Total Impact Fee: $ 1,407+ $2,820 = $ 4,227/ESU Page 23 of 24 CITY OF FRIENDSWOOD IMPACT FEE STUDY V. SUMMARY AND RECOMMENDATIONS The City of Friendswood, Texas has elected to adopt Water and Wastewater Impact Fees to assist in the financing of Capital Improvements for the systems that are necessitated by growth and development anticipated in the City. • The Planning Period for this Impact Fee Study is 2018 to 2028. • A growth rate of 1.5% per year is recommended for projection of population and resulting service units for the calculation of the Impact Fee amount. • The projected population increase for this Planning Period is 6,492 people. ® The equivalent increase in service units is 2,434 ESU. • The Total Costs for eligible Water Projects identified in the CIP equate to $6,852,000. • The Total Costs for eligible Wastewater Projects in the CIP equate to $13,731,000. • The Maximum Water Impact Fee is $1,407 per ESU. • The Maximum Wastewater Impact Fee is $2,820 per ESU. TABLE 1 4 PREVIOUS IMPACT FEES Year Water Sewer Total 2003 $1,892 $967 $2,859 2008 $1,849 $1,290 $3,139 2013 $2,088 $840 $2,928 The City of Friendswood has traditionally adopted the maximum calculated Impact Fee, as recommended by the Capital Improvement Advisory Committee. While a community can elect to adopt a lesser amount than the maximum calculated Impact Fee, they cannot adopt a greater amount. Based on the information presented in this 2018 Impact Fee Study, the Capital Improvement Advisory Committee recommends that the City Council adopt the following Impact Fee rates: RECOMMENDED WATER IMPACT FEE = $1 ,407 f ESU RECOMMENDED WASTEWATER IMPACT FEE = $2,820 f ESU RECOMMENDED TOTAL IMPACT FEE = $4,227 1 ESU Page 24 of 24 EXHIBIT "B" UPDATED IMPACT FEE CHART ,06*01.1 D S (relkix. 4c-- . EX AS.‘,-4' fr 4:: *dr., A;. • „ 11! ,15 . . • � y ,,, dswood a,,q.,-,,,,,go,, Cit-- ,597,,,A*,,, !-"0.4,4---,,,,,y-,... y of .,,,,,, ,,,„..„ ,,,,,,, , ,,, •,,,., (,,,,,, i., Frien 4 ` v, v \\--1.2waht-____2,7,1-'' '\;;;:it--:)-(.:PW IMPACT F E ES ,.... - .}r... itiiktf--::fg:Sta:itgrf,fz,,-,::,,:•_--,:lii,7:-.,-,ii-i:taivitciailTii:A.,*,,,,,,,..-----.---- i .. ��,.. -,„.,.. � +,._ ,�„ ^- -_,��-< �:. ;i --�` .,m. fix-` N �". -r-- i-o,kr.s,: *iy;.1,30:t.f.r*aa;,';c:,,,,,zs,..;,....k,f-.A:F.,..:N,-'t.tttiz..i.iftt , t P1-,-r17:j,*i,,,, ,t5t.,:::::!:!!:f,r4,:itf4::4PA:.!*-:'":.:':'''''l''''''''' --* -t!ii„!::!.1-77;,.,17i..11f.-fiiI;'''Y----,3:,-;%-:,,, -;-,*- -41i--".'-, 1 II..,'Iti-:;:.,'';ftt',*jffttilrit7t.:*,',:I;''',C;'f:;';14-'::',,,:!*',:-,;til:::',.'-'2 :',',4r:*i-':',-',..4-'c'-'''-'I ! 2 V',.,;T:41 $1,407 2820 n 4 227 _v___.._ ��._v..�v_v�A� w_.w�.vuw_._�Y.��_.u_ �_:�� __Uw. ____M�u_. .v_ _�_..av,��___�___._�..�_ .�.��.�..���_.u__..€�.�_w�_ �Y�...�u �q F 1.5" $2,814 s $5,640 $8,454 3 _ S, 4 j 9 3 2�I $8,4602 1 $4,221 $1 J 68 _.u.. _M_u___..________v_.___ � .__.v___ 3" $8,442 $16,920 $25,362� 1 II t 1 (( 4 $14,070 $28,200 t $42,270 .uu__ _.u. - , - 5 ..__,.u__ u_________vw.___u._..u. 6 t $28,140 s $56,400 }a $84,540 1-.. 8J' $45,024 s $90,240 $135,264 3 x [µ�.�._-_.v__.._w w.,� w_;__ _�__ _._. ._., __µkw M_ .__ .ww_:_.__-__- _: w--w_.�_ ._...wnk ._�w____.v ._.�_ww__�.� I il 10" $64,722 - $129,720 i $194,442 s . 12�J x 1 _ ! $121,002 $242,520 f $363,522 (......_,......w.....,..__-..,....w.,,......_......._....W._.........__...��..n_._._.,._.>. .��.._...,n...->........-....<.-..r.-w...._._.>.,._r..- �v.....__....,.,� ....._-...��.n..��.-.__w..�.�.....>.__�.�..��..,.__�. w__�w..�.w.�..._..M...-.�...�..n.._.,_....._..._.��..-,__-. .M...,_N......_.-.__.....V..-.-.._._._._Y... -...._..:....... .....�_M.r�.:...,...��..n.w_..... EXHIBIT "B" Effective 02/2019