WEBVTT

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 Good afternoon and welcome to this meeting of the CIAC, the Capital Improvements Advisory

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 Committee.

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 The Planning and Zoning Commission serves as this committee and with the quorum present,

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 I will call us to order at 4.06 p.m.

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 And Tina is just going to offer a brief explanation of our committee.

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 So I got to thinking that Margie probably has had experience and Tim, I don't know if

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 you've had past experience as well, adjourning as the, excuse me, convening as the CIAC.

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 But this is not uncommon for the Planning and Zoning Commission to serve in this capacity

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 in communities, particularly when we're working on reviewing our impact fee ordinances, whether

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 that's roadway impact fee or utility impact fees.

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 And so just wanted to, for the benefit of those of you that have not ever had the opportunity

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 to serve in this capacity, just wanted to share with you some items with respect to

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 your role and I'll be honest with you, I had to go back and look at the resolution that

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 formed the committee back in, looks like the committee has existed prior to 2018, but that's

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 the last time we made some adjustments.

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 So when in your capacity as the Capital Improvements Advisory Committee, really it's to advise

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 the team that is, in this case, Becky Davini and the Capital Projects team, you know, you're

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 going to be advising and assisting our team, ultimately City Council in adopting land use

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 assumptions as you're well aware of.

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 We adopted land use assumptions when we worked on the update to the Comprehensive Plan with

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 our 2040 plan.

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 So our consultant team is utilizing that information that we've done with respect to the Denton

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 2040 plan, as well as they're even taking into consideration the recently adopted mobility

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 plan that we adopted simultaneously with that.

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 You also have a responsibility to review the Capital Improvements Plans and technically

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 file in your written comments if you have any to provide to our staff team.

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 Also monitoring, evaluating, implementation of the Capital Improvements Plan, and I know

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 Becky's team will get more into this, but as we adopt updates to our impact fee ordinances,

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 we have presumably divided the city into different areas.

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 We've identified calculations or costs associated with the public infrastructure that would

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 have to be provided within those areas, and so, but we're looking to see what we've programmed

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 in that plan if that's consistent with our adopted, in this case it would be our mobility

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 plan, or if we had an adopted utility master plan, then we're looking to see, okay, does

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 our impact fee ordinance align with those adopted master plans.

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 You also have the ability to file semi-annual reports with respect to the progress of the

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 Capital Improvements Plan and report to City Council or any political subdivision any perceived

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 inequities in implementing the plan or the fees that are proposing to be recommended

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 for inclusion within the impact fee ordinance, and then also advising Council of the need

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 to update or revise the land use assumptions, Capital Improvements Plans, and impact fee.

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 So I think we're in a good position given the fact that we've updated our comprehensive

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 plan and our mobility plan earlier this year.

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 If our plans were really, really old, and here we are making modifications to our impact

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 fee ordinances, then we might be having that conversation about how are we making these

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 decisions, especially if our master plans are 10 years old, right?

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 So but we're in a good position given the fact that we've done a lot of heavy lifting

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 earlier this year with the adoption of the comprehensive plan and the mobility plan.

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 So with that, unless you have any questions, I believe we can turn it over to Becky and

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 her team, but just wanted to provide that context so that you understand what your roles

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 and responsibilities are.

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 Okay, great.

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 Thanks, Tina.

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 Yeah, so we just have one agenda item, and that is PZ 22245, receive a report, hold a

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 discussion regarding update to the roadway impact fees.

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 Hi, Becky.

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 Thank you so much for serving in this capacity is very important for our team to be able

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 to get your review.

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 And you'll you'll be, I'm sure, excited to hear about roadway impact fees.

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 And I will tell you that as a part of this update, there's been a lot of work and effort

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 that's gone into making sure that all of the projects that have been constructed over the

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 last couple of years are also a part of that overall update.

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 The last update was completed in 2016.

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 And so I am going to turn it over to Pete Kelly, who's with Kimberly horn who we've

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 been working with on all of the roadway impact fee updates.

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 He's going to mention to you some updates on some of the schedule to since we've posted

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 this there's been a couple of changes to the overall calendar.

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 I'm sure that doesn't surprise us things move pretty quickly around here.

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 But I'm going to turn over to Pete and then of course we'll be happy to answer any questions

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 that you might have but thank you for coming in today a little earlier in serving in this

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 capacity.

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 It's greatly appreciated.

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 Okay.

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 Thank you.

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 Becky.

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 Yes.

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 I'm Pete Kelly.

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 I'm representing the consultant team on this project with Kimberly horn for the roadway

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 impact fee update.

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 As you can see on the slide presentation, we've titled this impact fees 101.

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 This is really just to cover what an impact fee is, what are the basic components and

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 we will get into the line use assumptions and the CIP today.

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 But we are planning to come back and do a second meeting on November 16th with the final

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 results of the study.

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 So really there's no formal action we're looking for in today's meeting.

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 It's more of a present the information and get any questions you have from us about the

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 technical aspects of the study.

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 So I'll go ahead and get into the presentation.

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 So an impact fee really is it's a one-time fee that's assessed to my presentations going

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 ahead of me here.

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 Here we go.

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 Okay.

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 It's a one-time fee assessed to the new development and that's intended to cover the cost of infrastructure

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 that's required to be built to support that new development.

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 It's governed by the Texas local government code chapter 395.

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 And so we follow all the requirements in that statute as we prepare the study.

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 One of those requirements is it needs to be updated every five years which is what brings

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 us to the point we are now in updating the study.

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 And that's just to reflect the fact that they are going to be changing dynamics in terms

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 of growth, in terms of infrastructure needs.

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 I know you all have seen a lot of changes in Denton and really all over Texas in the

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 last five years.

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 So there's a lot to capture there.

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 So why impact fees?

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 It provides an additional funding tool for infrastructure systems.

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 Currently what you have at your disposal are you have cash funds, you have debt funds,

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 and then you have the funding of development as they come in to share the burden of their

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 impact.

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 So and really impact fees is a mechanism to provide an orderly means of assessing that

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 impact and providing for that growth.

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 So the main components of an impact fee study.

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 We have to have service areas and we're going to talk about the land use assumptions.

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 That's really the growth or the demand that we're looking at.

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 And then capital improvements plans is what represents the infrastructure needed to support

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 that growth.

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 The service units are how we break down how impact fees are charged and then the maximum

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 fee calculation.

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 So we'll get to all those in the next slides.

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 So impact fee service areas, it's different for water, wastewater and roadway impact fees.

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 For water and wastewater, it can be the entire city and can even extend into the ETJ.

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 For roadway impact fees, the service areas are limited to six miles and that caused the

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 creation of five different service areas in the city of Denton.

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 Another part of the local government code is that any fees collected within a service

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 area must be spent within that service area, within 10 years on a CIP project.

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 Just covering again that the six mile restriction created the five separate service areas.

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 I'm going to flip to the map here.

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 This may be, hopefully that's okay.

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 It might be a little bit difficult to see.

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 But when we did this originally in 2016, we did a service area analysis to look at what's

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 the best way to divide up the city of Denton.

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 And the discussion back then was to try to separate out the service areas such that there's

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 an equal amount or near equal amount of projects in each service area so that you don't have

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 all the CIP projects and all the growth in one service area and very little in the others.

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 So that's the way they're divided up.

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 We also look at natural barriers such as interstate highways, we look at railroads, we look at

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 bodies of water.

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 For the most part, the service areas in Denton are divided up with the major roadways.

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 And we do have the inner loop touches three separate service areas rather than all just

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 being in its own service area.

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 And just to reiterate again, the roadway service areas cannot include any area in the ETJ.

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 It's limited to the corporate boundaries of the city.

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 So once we have the service areas established, the next step is to establish and forecast

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 the growth in each service area over the next 10 years.

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 So that's part of the state law is that we look at a 10-year window.

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 We don't look out 20 or 30 years or beyond.

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 We just look at the 10 years.

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 And then again, it's updated every five years to ensure that we're looking at the most up-to-date

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 growth projections and growth patterns.

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 So the way that we calculate these is we take all the growth and we simplify it down into

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 four categories.

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 And those categories are residential, which includes single-family and multi-family dwelling

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 units.

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 And then the non-residential or employment categories are basic service and retail.

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 So in the basic category that includes uses like industrial and agricultural.

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 In a service category that includes uses like office and institutional.

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 And in the retail category that includes essentially everything else in employment.

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 So shopping, dining, entertainment.

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 And as it was mentioned before, our employment and residential projections in the IMPACT

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 V study came directly from the efforts from the comp plan, from that data.

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 And so they're closely aligned, but we had to take that and separate it out into the

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 five separate service areas.

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 Again, this is the service areas map with the growth, the 10-year growth that we've

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 projected.

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 So if you were to add all these individual tables up, you'd see that we're projecting

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 just over 12,000 residential dwelling units in the next 10 years.

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 And if you were to include more than just the city limits, that figure would be a bit

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 higher, but we saw that we win that comparison, we saw that it was in alignment with the comprehensive

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 plan and the projections that it's showing.

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 And you can also see when you look at the employment numbers that the areas where we

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 have a lot of industrial growth going on right now.

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 So on the west side of the city in service area C and service area A, there's a lot more

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 industrial going on over there and there's a lot of residential projection going on in

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 service area A where we have some big developments there.

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 So after the land use assumptions, our next step is to develop the capital improvements

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 plan so that the land use assumptions establishes our demand over the next 10 years and the

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 capital improvements plan is how we establish the supply needed to serve that demand as

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 one way to look at it.

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 And one distinction I like to make when we're talking about the impact VCIP is that it's

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 different from the city five year CIP, which is the program of projects that includes new

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 roadways, widenings and maintenance as well.

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 The impact VCIP is only conceptual, it's a planning document and it cannot include any

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 maintenance projects, it's just for new roadways and widening, anything that can add capacity.

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 And so that really is the governing document that guides what impact fee funds can be spent

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 on, that's what the CIP is.

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 Another part of the state statute is that the impact VCIP needs to be based on an adopted

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 plan and so the adopted plan that this is based off of is the mobility plan that was

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 done as part of the comprehensive plan as you can see on the screen here.

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 So all the projects on the roadway impact VCIP are directly from the mobility plan.

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 And one thing you'll see when you look at the CIP is all the roadways on the mobility

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 plan that aren't built to their full configuration today, they're included in each of the service

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 areas.

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 Even though not all those projects will necessarily get built in the next 10 years, they're included

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 on there for flexibility so that the ones that need to get built can get built but it's

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 only the percentage of that capacity that's going to be used within the next 10 years

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 that actually gets included in the calculation.

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 So it's still limited to that 10 year window.

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 We are currently in the, still in the draft review phase with the CIP, the staff has done

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 a preliminary review of CIP, they're currently in the final review of the CIP and a draft

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 of the impact fee report.

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 So this represents a near finished version of the CIP for service area B. You can see

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 we have two different project types, we have the blue lines represent roadways that need

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 to be widened beyond what they are today based on the mobility plan and then the red dash

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 lines represent new roads that need to be built that don't exist today.

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 And the black solid and dash lines are roads that are either ineligible to be included

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 in the impact fee CIP or they are currently built to their full configuration.

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 So all this brings us to how the impact fee itself is actually calculated.

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 So we started out with the service areas, we calculated the growth in each service area

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 and then we mapped out the projects in each service area and then we costed out each of

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 those projects in each service area.

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 So we have a project cost total for each service area and that project cost total, we take

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 out the cost needed to extend that project beyond 10 years and we take out the cost needed

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 to fix existing problems.

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 And so we have just the cost that's eligible for the 10 year window and that gets divided

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 by the service units of growth that are projected out over the next 10 years.

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 So that's the equation you see on the screen there.

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 That's how we calculate the maximum fee.

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 After the maximum fee is, I should say as part of the maximum fee calculation, state

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 law requires that there is an accounting for, there's a credit calculation to account for

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 ad valorem taxes and there's two ways that that can be done.

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 It can be just a straight 50% reduction or you can go down the route of calculating what

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 that actual impact is and that's what the city of Denton has elected to do.

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 We have a financial firm, Nugen, that helps us do that.

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 They're in the process of completing that credit calculation to determine that impact.

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 So that's another part of it as well.

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 Just to review where we've been and where we're going, the 2016 impact fee, when you

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 look at just a single family home, so it'll be different depending on the land use that

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 you're looking at because a big box store is going to generate a lot more traffic than

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 a single family home.

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 So this is just what the maximum assessable fee of a single family home was calculated

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 to be in the 2016 study.

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 It's about an average of just under $10,000 a home.

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 As the study went through the adoption process, council elected to collect roughly 20% of

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 that cost from development.

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 So then the remainder of the cost is still the burden of the city to provide for.

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 Like I said, we're still in the draft stage of calculating the maximum fee for the 2022

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 study.

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 Based on what we're seeing is construction costs have nearly doubled since then.

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 So our max fees are looking to be close in the range of double to what they were in 2016.

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 And of course, we'll go through the same process where we'll get a chance to hear your recommendation

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 to staff and to council on what you think should be done, and they will ultimately determine

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 what percentage or what portion of that maximum fee gets calculated in each service area.

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 So like Becky said, we have some updates to this schedule.

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 We are meeting with the developers tomorrow to introduce the study to the development

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 community.

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 We're actually, instead of November 1st, it's going to be November 15th that we'll be holding

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 a workshop with council.

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 And the other date that's not included on here as well is that we're coming back to

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 this committee on November 16th to present the final results and the maximum fees to

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 you then as well.

00:17:43.700 --> 00:17:52.700
 And the final adoption that we're targeting is going to be January 10th of next year.

00:17:52.700 --> 00:18:01.260
 In addition, the water wastewater impact fees are, they're a little further behind, but

00:18:01.260 --> 00:18:04.860
 they're getting underway as well, and they're looking at an adoption of the water waster

00:18:04.860 --> 00:18:07.860
 impact fees next fall.

00:18:07.860 --> 00:18:16.860
 Are there any questions?

00:18:16.860 --> 00:18:17.860
 Commissioner Smith?

00:18:17.860 --> 00:18:20.980
 Thank you, Chair.

00:18:20.980 --> 00:18:27.900
 Just to reiterate, Tina, the November 16th, our direction at that point in time that's

00:18:27.900 --> 00:18:31.900
 given to council at that point will be, this is what Kimley-Horn decides, this is what

00:18:31.900 --> 00:18:35.940
 the maximum fee should be, and then we as a commission will make a recommendation, not

00:18:35.940 --> 00:18:40.680
 commission, a committee would probably have a non-official vote, but just kind of a direction

00:18:40.680 --> 00:18:44.860
 to be given that would go then to council to be discussed about how much of that maximum

00:18:44.860 --> 00:18:45.860
 fee they would then leverage.

00:18:45.860 --> 00:18:47.820
 Is that correct, my understanding?

00:18:47.820 --> 00:18:53.300
 So I'm going to defer that question to Becky because this is, I want to make sure I don't

00:18:53.300 --> 00:18:54.460
 speak out of turn.

00:18:54.460 --> 00:18:58.980
 So we will be having actually the council meeting on November 15th where the same information

00:18:58.980 --> 00:19:05.260
 that will be presented about the max fee on the 15th, the council, on the 16th, the CIAC.

00:19:05.260 --> 00:19:10.020
 Then we will request from you is any feedback that we receive at that CIAC.

00:19:10.020 --> 00:19:15.080
 We will then come back to council if needed at a December 6th meeting and call a public

00:19:15.080 --> 00:19:18.740
 hearing that has to last for 30 days.

00:19:18.740 --> 00:19:22.420
 During that timeframe, we can still receive comments from the CIAC.

00:19:22.420 --> 00:19:27.100
 It just has to go up until the date of, January 10th is the anticipated council date at this

00:19:27.100 --> 00:19:31.340
 point, and you have five days before that timeframe to give us comments.

00:19:31.340 --> 00:19:32.340
 Gotcha.

00:19:32.340 --> 00:19:34.300
 And correct me if I stated anything incorrectly.

00:19:34.300 --> 00:19:35.300
 Okay.

00:19:35.300 --> 00:19:37.320
 I'm trying to remember dates.

00:19:37.320 --> 00:19:38.320
 So it's a little bit interesting.

00:19:38.320 --> 00:19:39.320
 You're good.

00:19:39.320 --> 00:19:42.700
 And capital improvements makes recommendations on a city staff goes to city council with,

00:19:42.700 --> 00:19:44.560
 hey, this is what Kim Lee Warren says the maximum is.

00:19:44.560 --> 00:19:49.220
 Our recommendation would be like the 20% that was decided upon in 2016.

00:19:49.220 --> 00:19:51.540
 Did that come from staff that come from council?

00:19:51.540 --> 00:19:53.700
 Where do those directions come from traditionally?

00:19:53.700 --> 00:19:59.380
 Well, I wasn't here during that timeframe, but I would tell you that we will work with

00:19:59.380 --> 00:20:03.520
 the consultant and they will give us the recommendations.

00:20:03.520 --> 00:20:05.700
 They also give us multiple recommendations.

00:20:05.700 --> 00:20:10.980
 We work with what we feel like is the best recommendation to bring forward to council

00:20:10.980 --> 00:20:12.900
 and to you.

00:20:12.900 --> 00:20:18.540
 And then obviously there may be several different options and you may say, well, we really think

00:20:18.540 --> 00:20:20.660
 that it should be X instead of Y.

00:20:20.660 --> 00:20:22.380
 So we will work through that process.

00:20:22.380 --> 00:20:28.040
 I mean, there is a maximum allowable fee that is allowed, but we do understand that there's

00:20:28.040 --> 00:20:32.460
 other fees and part of the presentation to council on the 15th and then to you on the

00:20:32.460 --> 00:20:36.060
 16th, we'll be able to also describe all the fees.

00:20:36.060 --> 00:20:42.380
 So you can look at it more in my word holistically for the entire city versus just looking at

00:20:42.380 --> 00:20:45.940
 roadway versus water, wastewater versus parks.

00:20:45.940 --> 00:20:49.100
 We'd like to bring it forward to you where you see the entire big picture and you can

00:20:49.100 --> 00:20:51.980
 understand all the impacts.

00:20:51.980 --> 00:20:58.340
 Keep in mind the impact fees that are collected for these roadways are currently being used

00:20:58.340 --> 00:21:00.820
 on projects that are within those service areas.

00:21:00.820 --> 00:21:05.320
 So the fee does have a direct correlation with the amount of work that can be done and

00:21:05.320 --> 00:21:07.100
 funded through the roadway impact fee.

00:21:07.100 --> 00:21:11.080
 So hopefully that answers your question essentially there because of the mobility plan and capital

00:21:11.080 --> 00:21:15.140
 impact that the CIP that comes out, there could be impact fees that are collected that

00:21:15.140 --> 00:21:19.020
 don't have a project that is in the work within that five year CIP.

00:21:19.020 --> 00:21:20.020
 Is that correct?

00:21:20.020 --> 00:21:25.300
 My understanding of that, that we're collecting impact fee, but right now as our capital improvements

00:21:25.300 --> 00:21:27.820
 doesn't have a project anywhere slated for this.

00:21:27.820 --> 00:21:32.420
 So collecting 20% of the maximum allowable fee kind of comes down to the fact that we

00:21:32.420 --> 00:21:34.780
 just won't be using this money for a period of time, right?

00:21:34.780 --> 00:21:37.660
 There's not a time we're going to be using that.

00:21:37.660 --> 00:21:42.380
 Correct to a certain extent where we do try to use the fee on specific projects that are

00:21:42.380 --> 00:21:47.100
 located in the mobility plan and a part of the impact fee CIP.

00:21:47.100 --> 00:21:48.900
 So we do have specific projects.

00:21:48.900 --> 00:21:53.260
 We just had recent conversations with finance on we'd like to take the roadway impact fee

00:21:53.260 --> 00:21:59.940
 funding that is currently available and put it on these particular projects because they

00:21:59.940 --> 00:22:02.140
 are a part of the roadway impact fee.

00:22:02.140 --> 00:22:06.420
 And it makes sense from a financial perspective to use those fundings because the way that

00:22:06.420 --> 00:22:11.980
 roadways are funded are either through a bond election, a county bond proposal, if it show

00:22:11.980 --> 00:22:19.660
 so should pass or of course, you know, so, you know, this is just another funding mechanism

00:22:19.660 --> 00:22:20.660
 that we work through.

00:22:20.660 --> 00:22:30.900
 Another important piece of that as well is even if the funds aren't going directly to

00:22:30.900 --> 00:22:37.660
 build roads, developers are eligible to build the road and get impact fee credit for that.

00:22:37.660 --> 00:22:42.620
 So even if the funds aren't going from the city's account to build the roads, the impact

00:22:42.620 --> 00:22:48.460
 fee assessed is still accomplishing the means of getting the roads built, whether it's the

00:22:48.460 --> 00:22:51.420
 developer that builds it or whether it's the city that builds it.

00:22:51.420 --> 00:22:54.340
 With your experience at Kimley-Horne, how often does a developer go in and actually

00:22:54.340 --> 00:22:56.900
 build the roads themselves?

00:22:56.900 --> 00:23:01.500
 We don't see that on the planning, I know this is the capacity of CIAC, but in the capacity

00:23:01.500 --> 00:23:07.500
 of planning and zoning, we never really see those types of conversations pass that, so.

00:23:07.500 --> 00:23:08.500
 Sure.

00:23:08.500 --> 00:23:11.860
 Yeah, they're going to do what makes the most sense for them.

00:23:11.860 --> 00:23:16.060
 They're going to look at what kind of credits they're eligible for.

00:23:16.060 --> 00:23:18.960
 If it makes more sense for them to build it, they'll build it.

00:23:18.960 --> 00:23:20.780
 It just depends on how the math works out.

00:23:20.780 --> 00:23:25.260
 If the fee's low and it's going to be half for them to build it, they're going to want

00:23:25.260 --> 00:23:26.260
 to not do that.

00:23:26.260 --> 00:23:29.380
 So I think that's what I was getting to, that essentially, as you know, this is updated

00:23:29.380 --> 00:23:33.820
 every five years, that if it's not, if we're in the later part of that, then it's more

00:23:33.820 --> 00:23:38.000
 likely that someone will pay the fee rather than build the road, whereas if it's earlier

00:23:38.000 --> 00:23:41.620
 in that fee, that fee reassessment, that it'd be more likely they'd build it themselves

00:23:41.620 --> 00:23:46.180
 and take the credit, then they pay the fee, would that be a fair assessment, and either

00:23:46.180 --> 00:23:47.380
 of you guys can answer that.

00:23:47.380 --> 00:23:51.940
 So if I understand your question, you're talking about a five-year project life cycle.

00:23:51.940 --> 00:23:55.100
 I'm talking more about, like, whenever we update these fees, right?

00:23:55.100 --> 00:23:59.980
 So we're updating a roadway impact fee, and if the developer has a choice between either

00:23:59.980 --> 00:24:04.140
 building the road themselves and then taking a credit or paying the impact fee and put

00:24:04.140 --> 00:24:09.040
 it up on the city to build it, obviously disregarding any roadway that needs to be built for mobility

00:24:09.040 --> 00:24:13.180
 and access purposes, that, you know, if they say we want to take it upon ourselves and

00:24:13.180 --> 00:24:18.020
 do it, that is probably more apt to happen when the impact fee is more updated, therefore

00:24:18.020 --> 00:24:22.140
 it is at a higher cost than it is whenever the impact fee is maybe more outdated and

00:24:22.140 --> 00:24:27.220
 therefore at a lower cost in comparison to inflation of construction materials and costs

00:24:27.220 --> 00:24:28.340
 to build.

00:24:28.340 --> 00:24:32.820
 I think that's probably fair to say, and it all depends on what council chooses to adopt.

00:24:32.820 --> 00:24:37.540
 Council could raise the fee today if they wanted to, based on what the max fees we showed

00:24:37.540 --> 00:24:43.940
 in the presentation were, just about 10,000 house, they're collecting 2,000 right now,

00:24:43.940 --> 00:24:48.340
 so they could still do that today without an updated study, but the updated study, we

00:24:48.340 --> 00:24:53.100
 are looking at higher costs, and it is also part of the state law requirement that we

00:24:53.100 --> 00:24:54.100
 update the study.

00:24:54.100 --> 00:24:55.100
 Gotcha.

00:24:55.100 --> 00:24:56.100
 Yeah.

00:24:56.100 --> 00:25:00.300
 How is it calculated when it comes to phasing in a development that gets approved that,

00:25:00.300 --> 00:25:04.500
 I'm guessing, because these impact fees come in at the platting or the site plan process,

00:25:04.500 --> 00:25:09.860
 so it's really if there's a development that's approved, there's a phasing process that those

00:25:09.860 --> 00:25:12.940
 impact fees are recalculated every time there's a new phase that's started and gone through

00:25:12.940 --> 00:25:15.980
 the platting and site plan process.

00:25:15.980 --> 00:25:20.620
 So I'm going to let Tina answer that, but one thing I want to mention is, keep in mind,

00:25:20.620 --> 00:25:26.420
 it's not just a roadway impact fee calculation, there also is a proportionality calculation

00:25:26.420 --> 00:25:30.700
 that has to be done to make sure that we're not putting more burden on the developer than

00:25:30.700 --> 00:25:31.700
 shall be.

00:25:31.700 --> 00:25:36.140
 I'm trying to trivialize a very complex subject to be able to get some comprehension here.

00:25:36.140 --> 00:25:43.460
 It is also not a situation where every single role applies to every single situation, right?

00:25:43.460 --> 00:25:45.140
 100% agree.

00:25:45.140 --> 00:25:49.420
 The roadway impact fee calculations are something that are done a part of the development process,

00:25:49.420 --> 00:25:51.700
 so I'll let Tina speak to that.

00:25:51.700 --> 00:25:52.700
 Okay.

00:25:52.700 --> 00:25:55.860
 I was just confirming our processes.

00:25:55.860 --> 00:25:59.620
 So what we do is we would assess the fee at the time of platting, but then it's actually

00:25:59.620 --> 00:26:01.380
 collected at building permit.

00:26:01.380 --> 00:26:07.180
 So it takes into consideration, if it is a phase development, depending upon what phases

00:26:07.180 --> 00:26:11.780
 are being constructed, then we would be collecting the appropriate fee at that time.

00:26:11.780 --> 00:26:12.780
 Gotcha.

00:26:12.780 --> 00:26:13.780
 Cool.

00:26:13.780 --> 00:26:14.780
 Thank you.

00:26:14.780 --> 00:26:16.620
 Last two questions, then I'll give the four.

00:26:16.620 --> 00:26:21.580
 I know those are going to sound way more pointed and with an agenda behind them than they're

00:26:21.580 --> 00:26:22.580
 meant to.

00:26:22.580 --> 00:26:26.940
 It's just really just trying to get comprehension because it sounds like November 16th, we're

00:26:26.940 --> 00:26:30.660
 going to be coming back and being shown, this is what the recommendation, city council's

00:26:30.660 --> 00:26:34.980
 already seen it, CIAC, you guys got any feedback?

00:26:34.980 --> 00:26:38.140
 So it really sounds like today is really our biggest time to be able to give some sort

00:26:38.140 --> 00:26:39.780
 of direction and feedback.

00:26:39.780 --> 00:26:43.140
 I guess, before I ask my questions, I'll let...

00:26:43.140 --> 00:26:44.540
 Not necessarily.

00:26:44.540 --> 00:26:48.100
 You're going to receive the information on Friday, the same day that council will receive

00:26:48.100 --> 00:26:49.380
 the information.

00:26:49.380 --> 00:26:55.540
 We're going to listen to all of the feedback that's received and it is a purpose of us

00:26:55.540 --> 00:26:58.060
 bringing it forward to council and to CIAC.

00:26:58.060 --> 00:27:03.700
 It just happens to be that the dates are a little bit awkward for the holiday month,

00:27:03.700 --> 00:27:09.420
 but not necessarily, and you actually have a period of time that's actually longer from

00:27:09.420 --> 00:27:14.980
 the perspective of you have five days before the day that the public hearing lands to give

00:27:14.980 --> 00:27:16.340
 us the feedback and the comment.

00:27:16.340 --> 00:27:21.500
 But all comments received, we're going to take into consideration and evaluate.

00:27:21.500 --> 00:27:27.160
 And to be honest with you, when we have the council presentation on the 15th, we can tell

00:27:27.160 --> 00:27:30.500
 you what came of that and what happened.

00:27:30.500 --> 00:27:36.540
 But we will just put that as a slide as the council meeting was held and be able to give

00:27:36.540 --> 00:27:37.580
 you some feedback.

00:27:37.580 --> 00:27:43.620
 But ultimately, we want to understand your feedback that you have on the overall fee

00:27:43.620 --> 00:27:44.620
 also.

00:27:44.620 --> 00:27:45.620
 Cool.

00:27:45.620 --> 00:27:46.620
 Okay.

00:27:46.620 --> 00:27:53.060
 To the two questions then, why would a city choose to take a smaller portion of the maximum

00:27:53.060 --> 00:27:57.780
 credit and why would a city choose to take the maximum portion rather than only taking

00:27:57.780 --> 00:27:58.780
 a smaller portion of it?

00:27:58.780 --> 00:28:01.700
 Does that make sense that why would a city choose to do more, why would a city choose

00:28:01.700 --> 00:28:02.700
 to do less?

00:28:02.700 --> 00:28:07.020
 My assumption, and I really want to make sure I not to answer my own question, but my assumption

00:28:07.020 --> 00:28:12.140
 is taking a smaller percentage of that, so 10,000 maximum for a single family in 2016,

00:28:12.140 --> 00:28:17.660
 but city council said let's only take two, would encourage development and growth.

00:28:17.660 --> 00:28:22.180
 Whereas saying maximum is 10,000, we're going to enforce 10,000.

00:28:22.180 --> 00:28:24.020
 That would discourage growth.

00:28:24.020 --> 00:28:28.260
 Anything else within there that just my comprehension that I'm missing within there about why they

00:28:28.260 --> 00:28:33.160
 would recommend less, why they would recommend more?

00:28:33.160 --> 00:28:36.580
 I think you're on the right track with that.

00:28:36.580 --> 00:28:43.740
 It goes back to the economic development attitude and policies on what the priorities are for

00:28:43.740 --> 00:28:44.820
 economic development.

00:28:44.820 --> 00:28:49.540
 I've been to some communities that want to discourage residential and want to encourage

00:28:49.540 --> 00:28:55.740
 non-residential and so the collection policies are different there and there's the reality

00:28:55.740 --> 00:29:00.660
 that some of these, like a lot of these costs, the developers will pass on to the home builders

00:29:00.660 --> 00:29:05.220
 that will pass on the home buyers and there may be a desire to not make the new homes

00:29:05.220 --> 00:29:08.820
 as expensive for residential.

00:29:08.820 --> 00:29:12.580
 You've essentially got the understanding of the rec.

00:29:12.580 --> 00:29:13.580
 Yes.

00:29:13.580 --> 00:29:17.700
 But yeah, there's some competing interest there.

00:29:17.700 --> 00:29:22.900
 We want to encourage development, but we also need to have roads for those patrons of businesses

00:29:22.900 --> 00:29:25.900
 and for those residents to drive on when they come in.

00:29:25.900 --> 00:29:29.740
 Part of the recommendation, you guys come back about the 2022 recommendation for this

00:29:29.740 --> 00:29:34.140
 is what the maximum credits should be and then obviously city council would determine

00:29:34.140 --> 00:29:37.980
 what is actually going to be levied against.

00:29:37.980 --> 00:29:46.260
 I guess my thought process really goes to how much thought is given to developments

00:29:46.260 --> 00:29:50.860
 that are ... Never mind.

00:29:50.860 --> 00:29:51.860
 Okay.

00:29:51.860 --> 00:29:52.860
 Okay.

00:29:52.860 --> 00:29:57.540
 Are there any other questions?

00:29:57.540 --> 00:29:58.540
 Any other questions?

00:29:58.540 --> 00:29:59.540
 Commissioner Pruitt?

00:29:59.540 --> 00:30:00.540
 Thank you, Chair.

00:30:00.540 --> 00:30:01.540
 Okay.

00:30:01.540 --> 00:30:06.660
 Let me see if I can make this logical in the flow.

00:30:06.660 --> 00:30:08.660
 First, a couple small things.

00:30:08.660 --> 00:30:13.700
 When you mentioned the 10-year requirement to spend the money within 10 years, is that

00:30:13.700 --> 00:30:21.980
 like a clock based on when each payment is received, that that payment must be distributed

00:30:21.980 --> 00:30:23.300
 within 10 years?

00:30:23.300 --> 00:30:24.700
 Yes, that's correct.

00:30:24.700 --> 00:30:25.700
 Okay.

00:30:25.700 --> 00:30:29.020
 What happens to that money if it's not spent within 10 years?

00:30:29.020 --> 00:30:30.860
 For the state code, it needs to be refunded.

00:30:30.860 --> 00:30:31.860
 Okay.

00:30:31.860 --> 00:30:32.860
 To the original?

00:30:32.860 --> 00:30:33.860
 Right.

00:30:33.860 --> 00:30:34.860
 Okay.

00:30:34.860 --> 00:30:35.860
 So you got this first in, first out kind of thing.

00:30:35.860 --> 00:30:36.860
 Yes.

00:30:36.860 --> 00:30:40.020
 Got it.

00:30:40.020 --> 00:30:47.300
 I really appreciate the comments of Tina when we were thinking through the fact that we

00:30:47.300 --> 00:30:52.820
 have the new plans recently updated for this.

00:30:52.820 --> 00:30:54.140
 I saw one thing in the slide.

00:30:54.140 --> 00:30:58.540
 It said that the water wastewater, I know we're not ... We'll get to that later, but

00:30:58.540 --> 00:31:03.500
 this relates to a question I'm about to ask on the roadways, so if you forgive me.

00:31:03.500 --> 00:31:04.500
 Sure.

00:31:04.500 --> 00:31:08.900
 Mentioned that the plan was to have a single service area for the water.

00:31:08.900 --> 00:31:11.300
 It was like the second or third slide, I think.

00:31:11.300 --> 00:31:12.620
 Right, right.

00:31:12.620 --> 00:31:22.900
 And I believe that the current water impact fee map is actually divided into zone 1A, 1B,

00:31:22.900 --> 00:31:23.900
 and zone 2.

00:31:23.900 --> 00:31:24.900
 Is that correct?

00:31:24.900 --> 00:31:29.900
 Sounds like Nick's got an answer to that.

00:31:29.900 --> 00:31:31.100
 Okay.

00:31:31.100 --> 00:31:33.300
 So Nick Menson, Assistant Director of Finance.

00:31:33.300 --> 00:31:38.060
 To answer your question, this is not talking about the service areas of water and wastewater.

00:31:38.060 --> 00:31:43.180
 It's when the water utility is actually three service areas and wastewater is actually one.

00:31:43.180 --> 00:31:47.700
 We will bring in some recommendations forward to the PB and City Council in the coming months,

00:31:47.700 --> 00:31:50.280
 once we work through that.

00:31:50.280 --> 00:31:54.300
 So does that answer your question?

00:31:54.300 --> 00:32:02.660
 So when it says service area citywide, what is that referring to?

00:32:02.660 --> 00:32:07.580
 I can tell you back on that one.

00:32:07.580 --> 00:32:10.820
 For water and wastewater, it's allowed to be citywide.

00:32:10.820 --> 00:32:12.180
 You're not limited to six miles.

00:32:12.180 --> 00:32:13.180
 Got it.

00:32:13.180 --> 00:32:14.780
 Okay, so those are the requirements.

00:32:14.780 --> 00:32:15.780
 Okay.

00:32:15.780 --> 00:32:16.780
 Correct.

00:32:16.780 --> 00:32:17.780
 So I've reviewed it.

00:32:17.780 --> 00:32:23.680
 Actually, our water impact fees right now are in zone 1A, 1B, and zone 2.

00:32:23.680 --> 00:32:27.700
 And it looks like it's basically oriented in sort of a bullseye pattern.

00:32:27.700 --> 00:32:30.780
 And you can do that at the outskirts because there's none of this six mile requirement

00:32:30.780 --> 00:32:31.780
 for them.

00:32:31.780 --> 00:32:34.140
 So that makes sense now.

00:32:34.140 --> 00:32:40.300
 And I appreciate the background that you shared of the direction when we went through the

00:32:40.300 --> 00:32:48.180
 2016 impact fee study was to try to keep the amount of new development in each defined

00:32:48.180 --> 00:32:55.020
 service area consistent between the three to avoid the denominator being small, I imagine,

00:32:55.020 --> 00:32:57.700
 in that calculation.

00:32:57.700 --> 00:33:05.640
 My question is, has any thought been given to establishing those service areas in a way

00:33:05.640 --> 00:33:16.220
 that would most correlate with some of our comprehensive plan goals that I think we just

00:33:16.220 --> 00:33:22.260
 reiterated about infill development and redevelopment?

00:33:22.260 --> 00:33:29.060
 As I look at that map, what I see is there's people north of UNT who, if a new home goes

00:33:29.060 --> 00:33:34.380
 up there, they're paying an impact fee to rebuild May Hill or even the road east of

00:33:34.380 --> 00:33:37.360
 May Hill that's on the mobility plan, right?

00:33:37.360 --> 00:33:42.060
 And that seems a little bit of a stretch of the roadways that they would be using on a

00:33:42.060 --> 00:33:44.100
 regular basis.

00:33:44.100 --> 00:33:52.200
 So I guess it's just my feedback to staff is that I would really like to see a comprehensive

00:33:52.200 --> 00:33:59.740
 understanding of, hey, let's make sure we design these areas in a way that gives us

00:33:59.740 --> 00:34:03.960
 the biggest leg up to achieve the goals that we have, right?

00:34:03.960 --> 00:34:07.940
 I mean, we've seen development come in in different places in different areas of the

00:34:07.940 --> 00:34:14.740
 city, and as far as I can tell, right, we have this desire for infill and redevelopment,

00:34:14.740 --> 00:34:20.220
 and it's just not going to happen at the same pace or faster than Greenfield until projects

00:34:20.220 --> 00:34:22.300
 can pencil more easily, right?

00:34:22.300 --> 00:34:26.800
 And the impact fees are a big part of that, as far as I understand.

00:34:26.800 --> 00:34:32.420
 We haven't had extensive discussions on changing the service areas to meet that goal.

00:34:32.420 --> 00:34:39.580
 There is a part of the ordinance that was adopted, it really more touches on redevelopment

00:34:39.580 --> 00:34:46.620
 that if a use redevelops and it's less than 10 times the amount of traffic demand, then

00:34:46.620 --> 00:34:50.140
 the impact fees not assessed, they're exempt from the impact fee in that situation.

00:34:50.140 --> 00:34:53.860
 So that is one component that's just built into the policy, but not really built into

00:34:53.860 --> 00:35:01.620
 the service areas, and there are other policies that could be implemented along with the existing

00:35:01.620 --> 00:35:08.620
 service areas to encourage infill and redevelopment, and that could be something that we could

00:35:08.620 --> 00:35:11.900
 discuss with staff as well on any recommendations.

00:35:11.900 --> 00:35:18.060
 Well, and if I can add to that, Eric, I think I understand where you're going, especially

00:35:18.060 --> 00:35:21.900
 with respect to if we're trying to encourage infill development, and that really becomes

00:35:21.900 --> 00:35:27.900
 a policy discussion question for council, probably separate and apart from this process.

00:35:27.900 --> 00:35:32.460
 But that is, for example, if we are trying to encourage infill development within certain

00:35:32.460 --> 00:35:39.820
 areas of the community in which the roadway network is already built, then becomes a conversation

00:35:39.820 --> 00:35:45.260
 about do we want to potentially consider reducing the roadway impact fee collected on infill

00:35:45.260 --> 00:35:49.140
 development in areas where additional roadway capacity cannot be added.

00:35:49.140 --> 00:35:57.260
 So it's, but to me, that's a discussion that happens in all likelihood outside of this

00:35:57.260 --> 00:36:03.700
 particular process, because again, this is with respect to adopting the roadway impact

00:36:03.700 --> 00:36:08.860
 fee ordinance, the plan associated with it, the calculations that have been generated,

00:36:08.860 --> 00:36:14.060
 but it becomes a separate conversation of if we are wanting to incentivize certain types

00:36:14.060 --> 00:36:18.220
 of development in certain locations of the city, then what are some of the carrots that

00:36:18.220 --> 00:36:24.900
 we offer to incentivize that development, and impact fees is part of that discussion,

00:36:24.900 --> 00:36:30.140
 because in other communities I've worked in, in cities where their networks are already

00:36:30.140 --> 00:36:34.980
 built and we're not adding additional capacity, they've done away with their impact fees.

00:36:34.980 --> 00:36:40.860
 And so that provides an incentive to infill development happening within a community,

00:36:40.860 --> 00:36:45.140
 because that's just one less development cost, so, but I really think that that's a policy

00:36:45.140 --> 00:36:47.300
 decision that council needs to provide direction on.

00:36:47.300 --> 00:36:52.140
 Yeah, so that helps, and maybe just a quick thing to clarify so that my understanding

00:36:52.140 --> 00:36:54.860
 can be broadened.

00:36:54.860 --> 00:37:01.220
 Is it a state law requirement that the impact fee assessed within each one of the defined

00:37:01.220 --> 00:37:06.860
 service areas be the same for every development of that type?

00:37:06.860 --> 00:37:13.360
 Or is council free, like you said, to adopt a policy where a portion of a service area

00:37:13.360 --> 00:37:17.860
 can have one impact fee and a different portion can have a lesser impact fee?

00:37:17.860 --> 00:37:23.540
 So I'm gonna defer that one to Pete, since he's our technical expert on that.

00:37:23.540 --> 00:37:28.100
 There can be situations where there's an overlay area where development in a certain area,

00:37:28.100 --> 00:37:30.420
 there's different rates.

00:37:30.420 --> 00:37:35.680
 We've even worked with a lot of cities where you have different rates for different types

00:37:35.680 --> 00:37:42.140
 of uses, where all the developments in one particular type of use pay a certain rate.

00:37:42.140 --> 00:37:47.300
 For example, industrial versus shopping versus residential, those can all have different

00:37:47.300 --> 00:37:53.140
 rates applied to them if there's a reason to encourage a different type of use.

00:37:53.140 --> 00:37:56.460
 But there's some geographic flexibility as well.

00:37:56.460 --> 00:38:02.260
 Okay, so those overlays don't have to be related to the surface area map?

00:38:02.260 --> 00:38:03.260
 No.

00:38:03.260 --> 00:38:04.260
 Okay.

00:38:04.260 --> 00:38:06.140
 All right, thank you.

00:38:06.140 --> 00:38:09.300
 Is that it?

00:38:09.300 --> 00:38:10.300
 Okay.

00:38:10.300 --> 00:38:13.900
 Any other questions, Commissioner?

00:38:13.900 --> 00:38:18.820
 I guess, just to piggyback a little bit on that, you mentioned, so there's nothing in

00:38:18.820 --> 00:38:26.020
 state law that precludes incentivizing, as Tina mentioned, as a possible incentive for

00:38:26.020 --> 00:38:29.020
 infill development to retract the impact fee.

00:38:29.020 --> 00:38:30.020
 Is that correct?

00:38:30.020 --> 00:38:31.020
 Right.

00:38:31.020 --> 00:38:35.740
 So, if we can apply that fairly to everyone in that area, then yeah.

00:38:35.740 --> 00:38:36.740
 In the --

00:38:36.740 --> 00:38:37.740
 In the infill area.

00:38:37.740 --> 00:38:39.860
 In that specific regional area.

00:38:39.860 --> 00:38:40.860
 Understood.

00:38:40.860 --> 00:38:41.860
 Okay.

00:38:41.860 --> 00:38:42.860
 Anybody else?

00:38:42.860 --> 00:38:43.860
 Okay.

00:38:43.860 --> 00:38:46.980
 Thank you for the information.

00:38:46.980 --> 00:38:51.620
 I think I would encourage, if something kind of trips your brain between now and then,

00:38:51.620 --> 00:38:55.620
 Becky, to you, would the feedback go, or where would you like that feedback?

00:38:55.620 --> 00:38:56.620
 Okay.

00:38:56.620 --> 00:38:57.620
 Yeah.

00:38:57.620 --> 00:39:03.260
 So, they can even present some of that feedback possible to Council on the 15th, prior to

00:39:03.260 --> 00:39:04.940
 us seeing it again on the 16th.

00:39:04.940 --> 00:39:05.940
 Right?

00:39:05.940 --> 00:39:06.940
 Commissioner Perot.

00:39:06.940 --> 00:39:07.940
 Thank you, Chair.

00:39:07.940 --> 00:39:11.140
 Just, I guess, a question to Chair and the Commission.

00:39:11.140 --> 00:39:16.460
 It strikes me, obviously, I don't want to cause a challenge for staff, but to some of

00:39:16.460 --> 00:39:21.180
 the questions that Commissioner Smith was asking about the order and the priority and

00:39:21.180 --> 00:39:27.260
 how does all that work, are we doing it in the right order, I, myself, I think I could

00:39:27.260 --> 00:39:32.100
 be available that Monday afternoon evening, just for the cake committee, if that would

00:39:32.100 --> 00:39:37.220
 be something that would alleviate your concerns, but I don't know what, if that's a possibility

00:39:37.220 --> 00:39:39.580
 for staff or not.

00:39:39.580 --> 00:39:41.420
 That's totally up to your flexibility.

00:39:41.420 --> 00:39:46.540
 If you would like to meet on the Monday, the 14th, I'll feel really old that day, I'm going

00:39:46.540 --> 00:39:52.660
 to have a 21-year-old, but I would be happy to meet on that day, if you would like.

00:39:52.660 --> 00:39:57.420
 If you would like to be able to have the opportunity to give us your feedback before it goes to

00:39:57.420 --> 00:39:59.260
 Council on the next day.

00:39:59.260 --> 00:40:04.020
 I'm sure, you know, as long as that's okay with the Commission and, the committee and

00:40:04.020 --> 00:40:08.960
 Tina and her team, I don't have an issue with it, I mean, you've had to come at a particular

00:40:08.960 --> 00:40:12.540
 time before your planning and zoning, we were really working with your calendar to make

00:40:12.540 --> 00:40:17.040
 sure you were only here one day during the week versus two, so trying to be respectful

00:40:17.040 --> 00:40:18.040
 of your time.

00:40:18.040 --> 00:40:23.020
 I also wanted to mention tomorrow at the Developer Town Hall, there will not only be this similar

00:40:23.020 --> 00:40:26.700
 presentation, there'll be a few minor updates, there's also going to be a presentation of

00:40:26.700 --> 00:40:32.100
 the water wastewater, and if you're not able to be present, that is at the Development

00:40:32.100 --> 00:40:39.780
 Services Center tomorrow at 10 a.m., and after that presentation, then we'll also post that

00:40:39.780 --> 00:40:45.540
 information when the posting and recording of the meeting is available, so you can actually

00:40:45.540 --> 00:40:51.340
 watch that too, but of course we'll take whatever questions, but Tina, I think that's really

00:40:51.340 --> 00:40:56.260
 kind of up to you if we want to look at considering the 14th at four o'clock, I know we have a

00:40:56.260 --> 00:41:00.180
 typical meeting during that day, but if we'd like to switch, our team doesn't have an issue

00:41:00.180 --> 00:41:03.820
 with it being the 14th or the 16th.

00:41:03.820 --> 00:41:08.340
 And I think what maybe you can do is, maybe we probably can't answer that right now because

00:41:08.340 --> 00:41:12.580
 it probably is going to depend on how many Commissioners we can get, but maybe what we

00:41:12.580 --> 00:41:17.600
 can do is you think about it with your schedule, and if that's a possibility, then let's throw

00:41:17.600 --> 00:41:24.740
 out an email ahead of time, see how many of us can make it on that day, so yeah, because

00:41:24.740 --> 00:41:30.180
 you may not be able to answer that question right now given what's between now and then.

00:41:30.180 --> 00:41:35.780
 Yeah, I was just looking at the calendar, I mean, if it's the consensus of at least

00:41:35.780 --> 00:41:40.740
 the Commissioners present to try and convene on the day, then I'm sure we can make it work,

00:41:40.740 --> 00:41:46.800
 I think our biggest challenge might be room availability, and if we want to do it early

00:41:46.800 --> 00:41:53.520
 in the afternoon, if that is this, we can do that as well, so tell you what, why don't

00:41:53.520 --> 00:41:59.060
 we all have, I'll work with Kelly and her team, we'll send maybe a survey monkey out

00:41:59.060 --> 00:42:04.580
 to you to find out what your availability is on the 14th, and then also if there's a

00:42:04.580 --> 00:42:09.260
 time range that works better for you, and then we can also check facility availability

00:42:09.260 --> 00:42:13.540
 as well, but if that's the desire, I mean, if that benefits your team, I'm open to that

00:42:13.540 --> 00:42:14.540
 as well.

00:42:14.540 --> 00:42:16.100
 Yeah, sure, we don't have an issue with that.

00:42:16.100 --> 00:42:17.100
 Okay.

00:42:17.100 --> 00:42:18.100
 Excellent.

00:42:18.100 --> 00:42:19.100
 Okay.

00:42:19.100 --> 00:42:20.100
 Sure thing.

00:42:20.100 --> 00:42:21.100
 All right, anything else?

00:42:21.100 --> 00:42:24.100
 No, thank you so much, we appreciate it.

00:42:24.100 --> 00:42:29.460
 Okay, any concluding items to add at the end of this meeting?

00:42:29.460 --> 00:42:38.740
 Okay, with that, then I will close this CIAC meeting at 4.48 p.m. We will convene back

00:42:38.740 --> 00:42:43.140
 here at 5 p.m. for our Planning and Zoning Commission work session.

