School Impact Fee

1. School Impact Fee Board of County Commissioners Public Hearing June 7, 2011

2. Presentation Outline • Background • Review Process • Impact Fee Study Update • Ordinance Overview • LPA Recommendation • Requested Action

3. Background Impact Fees - Fire/Rescue Services - Law Enforcement - Roads - Parks and Recreation - Schools

4. Background (cont.) School Impact Fee • Residential uses only • Required to be Countywide • Collected by County and municipalities • Fee redistributed to OCPS

5. Background (cont.) School Impact Fee History • Enacted 1992 • Revised 1998 • Revised 2005 • Created School Impact Fee Study Advisory Group (Advisory Group) • Recommended a Consistent Methodology • Revised 2007 • Update due 2011

6. Background (cont.) BCC Temporarily Reduced Impact Fees Consistent with Study Recommendations on May 10, 2011

7. Review Process • Consultant Updates Study • Advisory Group Review - Feb.- May, 2011 • LPA/P&Z Work Session - April 21, 2011 • OCPS Accepts Study - May 10, 2011 • LPA/P&Z Public Hearing - May 19, 2011 • BCC Public Hearing - June 7, 2011

8. Review Process (cont.) Advisory Group Membership OCPS 3 Members Douglas Kelly Roy Messinger Lou Roeder BCC 3 Members Miranda Fitzgerald Eric Marks Dotti Wynn HBA 1 Member Ed Hampden

9. Impact Fee Study Update • Overview of Data Trends • Impact Fee Components • Fee Comparison (Orange County)

10. Overview of Data Trends • 2007 Study (Final Study July 2007) • Based on 2005 and 2006 data • Observed changes in data trends • Lower cost component • Lower credit component • Lower Student Generation Rate

11. Overview of Data Trends (cont.) *Decrease measured by comparing 2007 and 2011 study data and approved changes to methodology.

12. Impact Fee Components • Facility Service Delivery • Cost Component • Credit Component • Net Cost per Student • Student Generation Rate • Calculated Impact Fee Schedule

13. Facility Service Delivery • Based on prototypical school design • Permanent gross square feet per permanent student station • Reflects schools constructed to state requirements

14. Facility Service Delivery (cont.) Final Report: Table 2, Page 4

15. Cost Component • Cost Component includes: • School Facility Costs • Construction • Non-Construction • Furniture, fixtures, and equipment (FF&E) • Land • Capacity Adjustment • Transportation, Administration, and Ancillary Facility Costs

16. Cost Component: School Facilities • 2010 adjusted GMPs* used as basis for school facility costs • GMPs provide costs for: • Construction • Non-construction (admin, design, etc.) • FF&E 1. *GMP = Guaranteed Maximum Price Contract

17. Cost Component: Land Value • Based on costs for school sites needed over next 10 years • Elementary: $35,000 per acre • Middle and High: $70,000 per acre

18. Cost Component: Cost per Student Station *Final Report: Table 3, Page 6

19. Cost Component: Capacity Adjustment • Adjustment to cost for availability of permanent capacity • Ratio of available permanent capacity to enrollment projected for 2012/13 school year

20. Cost Component: Capacity Adjustment (cont.) Final Report: Table 4, Page 8

21. Cost Component: Transportation Cost • Transportation cost per student - Cost of providing transportation services per student - Replacement value of transportation fleet

22. Cost Component: Capacity Adjustment • Ancillary and administrative facilities cost per student • Cost of providing support facilities per student • No recent construction data available • Replacement value – administrative facilities • Based on school construction costs • Replacement value – ancillary facilities • Percentage of administrative facility cost from 2007 Study applied

23. Cost Component: Total Impact Cost per Student Final Report: Table 5, Page 10

24. Credit Component • Credit provided for: • Non-impact fee revenue • Funding for expansion/capacity projects over the next five years • Two credits provided: * • Ad valorem “cash” revenue credit • Ad valorem debt repayment credit *Note: ad valorem cash and debt credits combined into one credit in 2007 Study

25. Credit Component: Ad Valorem “Cash” Revenue Credit • Ad valorem “cash” credit: • District-wide capital for new schools • Land acquisition for future schools • Security upgrades/expansion • Network technology for new buildings Final Report: Table 6, Page 12

26. Credit Component: Ad Valorem Debit Revenue Credit • Ad valorem debit credit: • All debt repaid with ad valorem • Credit provided for expansion-related debt only • All debt historical; no debt anticipated to be issued next five years Final Report: Table 7, Page 13

27. Net Cost per Student Final Report: Table 8, Page 14

28. Student Generation Rate • Demand component of impact fee formula • Average number of public school students per dwelling unit over the life of a home • Represents the lifecycle of the home

29. Student Generation Rate (cont.) • Geographic Information Systems (GIS)-based approach • Student addresses linked to parcels from Property Appraiser database • Provides current number of students in each residential land use type

30. Student Generation Rate (cont.) Final Report: Table 9, Page 16

31. Calculated Impact Fee Schedule Final Report: Table 10, Page 16

32. Fee Comparison (Orange County)

33. Fee Comparison (Other Jurisdictions)

34. Ordinance Overview • Clarifications, Updates, Consistency Changes • Removed Unused Sections • Deleted Indexing • Deleted Prior Contracts Provision • Amended Alternative Study Standards • Study based on characteristics of building, not solely on dwelling unit

35. Ordinance Overview (cont.) • Expanded Advisory Group’s Purpose • Review methodology, study and ordinance • Annual Review of data for Impact Fee variables by OCPS • Added New Student Generation Rates to Subdivision Regulations

36. LPA Recommendation • On May 19, 2011, the LPA made a finding of Consistency of the Ordinance with the Comprehensive Plan, and • Recommended that Accessory Dwelling Units (ADUs) be exempt from School Impact Fees

37. LPA Recommendation (cont.) Accessory Dwelling Units • Definition: Living Quarters separate from primary single-family dwelling • AKA Garage Apartment, “Granny Flat”, Accessory Cottage, Accessory Apartment • Attached or Detached • Minimum Living Area 400-500 sq. ft. • Maximum Living Area 750-1200 sq. ft.

38. LPA Recommendation (cont.) Accessory Dwelling Units • Charged Multi-Family Rates • Permitted and Conditional Use • Two-Bedroom Maximum (O.C.) • Units Permitted since 2007 • Orange County – 20 • Orlando – 66 (55 Baldwin Park)

39. LPA Recommendation (cont.) Accessory Dwelling Units • Staff Recommends Maximum threshold of 500 sq. ft. Insert Language as follows on Page 24, Line 12 (Sec. 23-161 Exemptions) (7)The Construction of an accessory dwelling unit as defined in section 38-1, Orange County Code, provided, however, that the living area of the accessory dwelling unit does not exceed 500 square feet.

40. Requested Action • Finding of Consistency with the Comprehensive Plan • Finding of Sufficiency with Sec. 30-2 – Economic Impact • Adopt Ordinance Amending Chapters 23 and 34, Orange County Code • Approve Indemnification Agreement Effective Date of Ordinance: June 10, 2011

41. Requested Action (cont.) Relevant CP Policies: PS4.1.4 Orange County in consultation with OCPS and Orange County Municipalities shall review and update the School Impact Fee Study at least once every four (4) years. PS4.1.5 With the School Board, review and recommend amendments, as necessary, to the School Impact Fee Ordinance, consistent with current applicable law.

42. Requested Action (cont.) Relevant CP Policies: CIE 1.4.1 Orange County shall continue to impose impact fees as a means of establishing and paying for future development's proportional cost of capital improvements. CIE 1.6.1 Orange County shall assess impact fees on new development to cover a fair share of capital cost to provide these services to new growth.

43. Requested Action (cont.) Relevant CP Policies: CIE 1.6.2 Impact fees shall continue to be used to fund capital facility needs resulting from new development and shall not be used to fund existing deficiencies. CIE 1.6.3 Impact fees shall be maintained for as many public facilities as feasible, but with consideration to the economic impact on affordable housing and the local construction industry.

44. Requested Action (cont.) Additional Ordinance Amendments Page 5, line 17, insert “accessory dwelling units,” before “apartments, townhouses, and condominiums” Multifamily dwelling unit shall mean a Dwelling Unit located in a building or a portion of a building (including, but not limited to accessory dwelling units, apartments, townhouses, and condominiums), regardless of form of ownership, which building containing more than one (1) dwelling unit designed for occupancy by a single family, whichand suchdwelling units are not customarily offered for rent for one (1) dayon a monthly basis, generally for a minimum six-month lease period, and shall include apartments, townhouses, and condominiums

45. Requested Action (cont.) Additional Ordinance Amendments Page 34, line 106, substitute “July 1, 2011” for “November 13, 2010”: (11) Applicants for deferral of impact fees for Workforce Housing pursuant to this pilot program shall be submitted to the County not later than July 1, 2011. Page 36, lines 159 and 160, substitute “July 1, 2011” for “November 13, 2010”: (e) Sunset. Except for applications for projects submitted before July 1, 2011 this pilot program shall sunset on July 1, 2011 without further action by the Board of County Commissioners.

46. Requested Action • Finding of Consistency with the Comprehensive Plan • Finding of Sufficiency with Sec. 30-2 – Economic Impact • Adopt Ordinance Amending Chapters 23 and 34, Orange County Code • Approve Indemnification Agreement Effective Date of Ordinance: June 10, 2011

47. School Impact Fee Board of County Commissioners Public Hearing June 7, 2011