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HomeMy WebLinkAboutcoa.lu.ca.Impact Fees School Land Dedication.0061.2011 THE CITY OF ASPEN City of Aspen Community Development Department CASE NUMBER 0061.2011.ASLU PARCEL ID NUMBERS CODE AMENDMENT PROJECTS ADDRESS 1�z EC4J60L DEL 0/c,4T7 PLANNER DREW ALEXANDER CASE DESCRIPTION CODE AMENDMENT REPRESENTATIVE CITY HALL DATE OF FINAL ACTION 9.28.11 CLOSED BY ANGELA SCOREY ON: 2.2.12 © 60 3. 2 O (• ZtC(. etStA4 AlliliiiiiiiiiiiiiiiiiIIIMInniiilliii11111111111111.111111 a File Edit Record Navigate Form Reports Format Tab Help P,o» > t J•1 _ imAt pip 1: A v Routing Status Fees IF* Snowy P'a'IActions IAttadraentsIRoutingHistory Vauabon Arch /Eng Custom F ids Sub Permits Parcels Perrot type Aspen Laid Use Perrot # 0061.2011.ASLU - Address 130 0 GALENA Apse CITY HALL 8 ay ASPEN St (CO Zip 81611 x Permit Information 10 - Master pent Hm!tiptple ask07 kited 9/28/201 Project final Apps 912812011 • Description CODE AMENDMENT - CITY INITATED AMENDMENTS TO CHAPTERS 26.610 AND Issued 9128t23 1 — 26.820 OF THE LAID USE CODE. OPEN AND CLOSE PER DREW Closed/Final 9128Q011 • Submitted pact Stopped pays 7 Expires 912212012 Submitted via _ Owner • Last name CITY HALL First name 801 CASTLE CRK ASPEN CO 81611 Phone () Address Applicant • 8 Owner is applicant? E Contractor is applicant? Last narne CITY HALL First name 801 CASTLE CRK ASPEN CO 81611 Phone ( ) - Cust # 12727 Address Lender Last name Fist r>mne Plane () Address 1. �-. o - Aspetiol (server) argelas -1 of 1 0 4 �- CAS -� a AFFIDAVIT OF PUBLIC NOTICE REQUIRED BY SECTION 26.304.060 (E), ASPEN LAND USE CODE ADDRESS OF PROPERTY: Al IA , Aspen, CO SCHEDULED UBLIC HEARING DATE: cp$' Hort _2.4 Q57'OV of , 20// STATE OF COLORADO ) ) ss. County of Pitkin // ) l 74 (name, please print) being or representirfg an Applicant to the City of Aspen, Colorado, hereby personally certify that I have complied with the public notice requirements of Section 26.304.060 (E) of the Aspen Land Use Code in the following manner: P ublication of notice: By the publication in the legal notice section of an official (, w.. paper or a paper of general circulation in the City of Aspen at least fifteen (15) days prior to the public hearing. A copy of the publication is attached hereto. Posting of notice: By posting of notice, which form was obtained from the Community Development Department, which was made of suitable, waterproof materials, which was not less than twenty -two (22) inches wide and twenty -six (26) inches high, and which was composed of letters not less than one inch in height. Said notice was posted at least fifteen (15) days prior to the public hearing and was continuously visible from the day of , 20 , to and,including the date and time of the public hearing. A photograph of the posted notice (sign) is attached hereto. Mailing of notice. By the mailing of a notice obtained from the Community Development Department, which contains the information described in Section 26.304.060(E)(2) of the Aspen Land Use Code. At least fifteen (15) days prior to the public hearing, notice was hand delivered or mailed by first class postage prepaid U.S. mail to all owners of property within three hundred (300) feet of the property subject to the development application. The names and addresses of property owners shall be those on the current tax records of Pitkin County as they appeared no more than sixty (60) days prior to the date of the public hearing. A copy of the owners and governmental agencies so noticed is attached hereto. (Continued on next page) • Rezoning or text amendment: Whenever the official zoning district map is in any way to be changed or amended incidental to or as part of a general revision of this Title, or whenever the text of this Title is to be amended, whether such revision be made by repeal of this Title and enactment of a new land use regulation, or otherwise, the requirement of an accurate survey map or other sufficient legal description of and the notice to and listing of names and addresses of' owners of real property in the area of the proposed change shall be waived. However, the proposed zoning map shall be available for public inspection in the planning agency during all business hours for fifteen (15) days prior to the public hearing on such amendments. Signature The foregoing "Affidavit of Notice" was acknowledged before me this day • of Q" F , 20_ by Ant m2(c Sr a—)e • rveue NOTICE WITNESS HAND HAND SEAL RE: CITY ITIATED AMENDMENTS TO l l lyy SS MY AND OFFICIAL SE CHAP yy TER .610 AND 26.620 OF THE LAND USE NOTICE l5 EM ond GIVEN that a ublic 0 al a 0 A � 1 1 i G ■.0 be hale b Mn ae t : September ore t 2011 at a My commission expires: 04P / :7 mee Councl, q ' tae 1 30 8. City Council, Aspen, l Chambers, City Hell, 130ly (( �, !, Galena St., As to consider Community Galena De ertment initiatetl amantlments to the I Land se Cotle mlatetl tp the provisions for Impact Fees and School Land Dedication, Chapters 26.610 and 26.620 respectively. For .ary Public further information, contact Draw Alexander at the ment 1130 Aspen Galena 01, Community CO 81611 42 ,.� P U g� \ \' 92739, prew.aMxandeAlrl.asp�co us r • sIMlcbae C. Ireland. COOMir &p,• ........... •• { [ � Published in the Aspen Times Weekly on Septem- Lj CO ber40, 2011. [69570171 ! ' ATTACHMENTS AS APPLICABLE: 'y N "" „ * COPY OF THE PUBLICATION I II `Pi. f OF C��o * PHOTOGRAPH OF THE POSTED NOTICE (SIGN) • •...„__— * LIST OF THE OWNERS AND GOVERNMENT AGENGIES NOTIED BY MAIL * APPLICANT CERTICICATION OF MINERAL ESTATE OWNERS NOTICE AS REQUIRED BY C.R.S. §24- 65.5 -103.3 • ^*aI 1O bP1O7 MEMORANDUM TO: Mayor Ireland and Aspen City Council THI2U: Chris Bendon, Community Development Director FROM: Drew Alexander, Planner RE: Land Use Code Amendments — Impact Fees & School Land Dedication 2 "d Reading of Ordinance No. 27, Series of 2011 MEETING DATE: September 26 2011 SUMMARY: The City's Land Use Code imposes a number of impact fees and land dedication fees -in -lieu to ensure that "development pays all or part of its way." These exactions are currently calculated and based upon the number of bedrooms proposed in the development. This enables the "bedroom game" where applicants argue with staff about the purpose of each room in a development. Staff is proposing amendments to the Land Use Code to eliminate the "bedroom game" and replace the bedroom metric with the square footage of a development. Staff has worked with a planning and analytical specialist firm from Boulder, RRC Associates, to ensure the conversion to square footage is statistically accurate and that the changes do not substantially affect the amount of fees collected. Amending the calculation methodology of the impact fees and land dedication fee -in -lieu should greatly simplify the zoning review process. The affected fees include Parks Development Impact Fee, Transportation Demand Management (TDM) /Air Quality Impact Fee, and School Land Dedication. These amendments reflect Land Use Code Chapters 26.610, Impact Fees and 26.620, School Land Dedication. The Impact Fee and School Land Dedication language was last amended in 2006 by Community Development Staff and BBC Research and Consulting out of Denver. It was during this time that the formula for using bedrooms for calculation was arrived at. No amendments have taken place since 2006. Some refinement has occurred since first reading to ensure accuracy on school land dedication. The current proposal is within 5% of the current fee structure. Staff is recommending approval of the proposed Ordinance. BACKGROUND: For residential development, the impact fees and land dedication fees -in -lieu are calculated based upon the number of bedrooms in a residence. The Land Use Code has a definition of "bedroom" that the zoning officer uses when reviewing plans: Bedroom: A portion of a dwelling unit intended to be used for sleeping purposes, which may contain closets, and may have access to a bathroom. Page 1 of 3 P108 This definition is not precise and lends itself to varying interpretation. What frequently /► happens (because the fees can be large) is that architects and builders will begin the ',too "bedroom game" with the zoning officer to try and lessen the fee amount. For example, a room with a closest may be labeled as a "study" on a plan set to avoid fees, but the zoning officer will calculate the room as a bedroom because it meets the definition in the code. Then, the architect will disagree with the decision and make small amendments. These resubmission persist until the zoning officer determines the room is no longer a bedroom. These changes usually look like doors being removed, removal of closets, or eliminated bathrooms or access to bathrooms. In an effort to avoid the bedroom debate altogether; staff has prepared a new draft of the Impact Fees and School Lands Dedication language that uses floor area as the calculation variable for fees. Staff created a report from approximately 350 building permits dating back to 2004 and examined two categories: floor area and number of bedrooms. RRC Associates in Boulder, CO are acting as a consultant on the project and confirming any data that staff is using for statistical validity. RRC Associates specialize in research and analysis with an emphasis in land use planning. Converting the City's impact fee system to a floor area basis will simplify zoning review, eliminate time wasted debating about the purpose /use of each room, impose fees more predictably, and make the impact fee estimates more precise for prospective applicants. Using floor area rather than the number of bedrooms should result in a system that is more accurate. As stated, the "bedroom game" encourages building permits to have awkward amendments and less than practical finished layouts. Floor area provides a simple metric that will accurately assess fees based on the size of home. These amendments will only alter the method of calculation, not the pre - determined fee schedules that have been in use since 2006. NEW CALCULATIONS: For TDM/Air Quality and Parks impact fees, staff has taken the total floor area from the building permit data and divided the number by the total fees paid for those permits. Based on the sample size, staff only used dwelling units with 6 bedrooms or less (there were only very few 7+ bedroom properties to sample from). The total floor area gathered for these permits was 1,022,427 square feet. The total amount of beds was 1,263 (studio units were counted as one - bedroom units). These 1,263 bedrooms paid $5,586,741 for Parks Development. $5,586,741 divided by the floor area amount (1,022,427) equals approximately $5.45 per square foot. The same math was applied for the TDM/Air Quality Fee. For School Lands Dedication, staff had to identify the average size homes with various bedrooms. To address the increasing number of students generated by various sizes of homes, three rates are provided — one for homes up to 1,200 square feet; a second rate for development up to 2,100 square feet; and, a final rate for development in excess of the 2,100 square foot threshold. No additional school impacts are apparent for residential Ass development in excess of 3,500 square feet. Please see Table 2 below. 'boo' Page 2 of 3 C 7l P109 Throughout this drafting process, staff has been in contact with the Aspen School District, the Transportation Dept., Parks Dept., and Environmental Health (groups that are impacted or receive funds from these fees). The new fees would include the following for residential development: Table 1: Parks and TDM/Air Quality for residential Parks Development $5.45 per sq. ft of floor area TDM/Air Quality $0.61 per sq. ft of floor area Note: • Hotel development is calculated just as residential floor area. However, non -unit space will not be contributed to these units during the calculation for fees. • Net leasable square foot is already calculated per square foot and will remain the same. Table 2: School Land Dedication Floor area (square feet) per Student Generation Rate dwelling unit First 1,200 .000064 students per square foot of Floor Area. tir 1,200 — 2,100 .000404 students per square foot of Floor Area. 2,100 — 3,500 .000031 students per square foot of Floor • Area. Staff refined these numbers since first reading with RRC and the proposed School fee structure is now slightly higher (5 %) than the current structure, but in a manner than represents equity to the School District and is supported by the District. RECOMMENDATION: Staff recommends City Council approve Ordinance No. 27, Series 2011" CITY MANAGER COMMENTS: RECOMMENDED MOTION: "I move to approve Ordinance 27, Series of 2011, approving amendments to Impact Fees and School Land Dedication requirements." 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IN N - e7 0- 0 CO r 010),0,,^ N', e 0 t0 0 CV Q N 0 1 1 0 C I 0 0 cc co m m 0 m 1 0- Q 6 0 10-1 m 0 N N 0 N a > N m1� P111 ORDINANCE NO. 27 (SERIES OF 2011) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, APPROVING AMENDMENTS TO THE FOLLOWING CHAPTERS OF THE CITY OF ASPEN LAND USE CODE: 26.610 AND 26.620 WHICH EXPLAIN THE COLLECTION OF IMPACT FEES AND SCHOOL LAND DEDICATION RESPECTIVELY. WHEREAS, the Community Development Director of the City of Aspen initiated an application proposing amendments to the Land Use Code, pursuant to Chapter 26.210; and, WHEREAS, the amendments relate to Chapters 26.610, Impact Fees, and 26.620, School Land Dedication, of Title 26 of the Aspen Municipal Code; and, WHEREAS, pursuant to Section 26.310, applications to amend the text of Title 26 of the Municipal Code shall be reviewed and recommended for approval, approval with conditions, or denial by the Community Development Director and then by the Planning and Zoning Commission at a public hearing. Final action shall be by City Council after reviewing and considering these recommendations; and, WHEREAS, the Community Development Director recommended approval of amendments to the above listed Sections as further described herein; and, WHEREAS, the Planning and Zoning Commission held a duly noticed public hearing to consider the proposed amendments described herein on July 5, 2011, and continued the public hearing on the following dates: July 19, August 2, and August 23. At the August 25, 2011 public hearing the Planning and Zoning Commission took and considered public testimony and the recommendation of the Director and recommended, by a 4 - 0 vote, that the City Council adopt the proposed amendments. WHEREAS, during a duly noticed public hearing on September 26, 2011, the City Council took public testimony, considered pertinent recommendations from the Community Development Director, the Planning and Zoning Commission, the public, and the applicable provisions of the Municipal Code as identified herein and approved the revisions by a vote of _ - ; and, WHEREAS, the Aspen City Council finds that the proposed Land Use Code amendments meet or exceed all the applicable standards and that the approval of the amendments, with conditions, is consistent with the goals and elements of the Aspen Area Community Plan; and, WHEREAS, the City Council finds that this ordinance furthers and is necessary for the promotion of public health, safety, and welfare. Aspen City Council Ordinance No. 27, Series of 2011 Page 1 P112 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, THAT: Section 1: Pursuant to Section 26.310 of the Municipal Code, the City Council hereby amends Section 26.610, Impact Fees, which section defines, describes, authorizes, and regulates the collection of Impact Fees of Parks Development and Transportation Demand Management (TDM) /Air Quality within the City of Aspen, to read as follows: Chapter 26.610 IMPACT FEES Sections: 26.610.010 Purpose and intent 26.610.020 Applicability 26.610.030 Exemptions 26.610.040 Definitions 26.610.050 Imposition, calculation and collection of fees /charges 26.610.060 Impact fee accounts 26.610.070 Use of impact fee proceeds 26.610.080 Credits 26.610.090 Impact fees 26.610.100 Waiver of fees 26.610.110 Appeals 26.610.010. Purpose and intent. For residents and visitors, parks and recreation facilities make up a significant part of the community character of the City. As a result of growth, increased pressure is placed on existing parks and recreation facilities necessitating acquisition of new park lands and development of additional recreation facilities in order to maintain the current level of service. In order to maintain the current community standards for acquisition of open space and development of parks and recreation facilities, the City finds it necessary to impose a Park Development impact fee on new development. Transportation demand management and air quality capital facilities ensure the mobility of residents, workers and visitors through multi -modal solutions, as well as clean air for the community. The Aspen Area Community Plan directs the City to maintain traffic levels at or below 1993 levels in order to protect our environment and quality of life, and the City has invested in capital facilities to do so. As new development and growth occur, increased pressure is placed upon our existing facilities, necessitating expansion of these capital facilities to maintain the current level of service. In order to maintain the current community standards for transportation demand management and air quality, the Aspen City Council Ordinance No. 27, Series of 2011 Page 2 ems P113 City finds it necessary to impose a Transportation Demand Management/Air Quality impact fee on new development. This Chapter is enacted for the purpose of implementing the City's plans for capital facilities by requiring that new development pay for its fair share of such facilities through the imposition of impact fees that will be used to finance, defray or reimburse all or a portion of the costs incurred by the City to serve new development. (Ord. No. 33, 2006, §1) 26.610.020. Applicability. Unless expressly exempted, the Park Development impact fee and the Transportation Demand Management (TDM) /Air Quality impact fee shall be assessed upon all development within the City which contains residential floor area or net leasable commercial space. (Ord. No. 33, 2006, §1)* 26.610.030. Exemptions. This Chapter does not apply to: A. Development involving a property listed on the Aspen Inventory of Historic Landmark Sites and Structures. This exemption is solely for an historic structure and its accessory structures. Development on an historic landmark property involving a non- historic or new building shall not be exempt. B. Alteration, expansion or replacement of a structure which does not create additional floor area or net leasable commercial space. (Ord. No. 33, 2006, §1)* 26.610.040. Definitions. When used in this Chapter, the following words, terms and phrases, and their derivations, shall have the meanings ascribed to them in this Section, except where the context clearly indicates a different meaning. Other words and terms shall be defined under the Definition section of this Title: A. Building permit means any City permit that involves increases in floor area, net leasable square footage and/or changes to land use. B. Capital facilities means land, structures or equipment for purposes of parks and recreation, transportation demand management and air quality. Capital facilities also includes design, engineering, inspection, testing, planning, legal review, land acquisition and all other costs associated with the construction or purchase of land, structures or equipment. Aspen City Council Ordinance No. 27, Series of 2011 Page 3 • P114 C. Collection means the point at which the impact fee /charge is actually paid to the City. D. Impact fee means a monetary exaction imposed by the City pursuant to this Chapter w✓ � as a condition of or in connection with approval of a development project for the purpose of defraying all or some of the City's cost for capital facilities associated with that development project. E. Impose means to determine that a particular development project is subject to the collection of impact fees as a condition of development approval. F. New development or development project means any project undertaken for the purpose of development, including without limitation a project involving the issuance of ,permit for construction, reconstruction or change of use but not a project involving the ��}�' issuance of a permit to operate or to remodel, rehabilitate, reconstruct or improve an � :� P P P existing structure, which does not change the amount of floor area, amount of net leasable commercial space, density or intensity of use. G. Nonresidential development project means all development other than residential development projects. H. Residential development project means any development, inclusive of hotel development, undertaken to create a new dwelling /lodge unit or add additional floor area to an existing dwelling /lodge unit. I. Floor Area and Net Leasable Commercial Space shall be as defined and calculated 3 according the City of Aspen Land Use Code. (Ord. No. 33, 2006, §1)* 26.610.050. Imposition, calculation and collection of fees /charges. A. Imposition. Except as provided in this Chapter and any amendment to this Chapter, the City may impose impact fees as a condition of approval of all new development projects. B. Updated annually. The base amount of each impact fee for each type of development project may be calculated annually and adopted by City Council ordinance. The City may choose to update its fee schedule based on the change in the Engineering News Record inflation index that occurs between annual updates. C. Collection. Impact fees shall be collected by the Building Department at the time and as a condition for issuance of a building permit. (Ord. No. 33, 2006, §1) 0 Aspen City Council Ordinance No. 27, Series of 2011 Page 4 P115 26.610.060. Impact fee accounts. A. Individual accounts. The City shall establish an impact fee account for each type of capital facility for which an impact fee is imposed. The impact fees collected shall be deposited in each such account according to type of improvement. The funds of the account shall not be commingled with other funds of the City. 13. Interest - bearing. Each impact fee account shall be interest - bearing, and the accumulated interest shall become part of the account. (Ord. No. 33, 2006, §1) 26.610.070. Use of impact fee proceeds. Impact fees may be expended only for the type of capital facilities for which they were imposed, calculated and collected and according to procedures established in this Chapter. Impact fees may be used to pay the principal, interest and other costs of bonds, notes and other obligations issued or undertaken by or on behalf of the City to finance such improvements. (Ord. No. 33, 2006, §1) 26.610.080. Credits. A. A property owner who dedicates land or improvements, agrees to participate in an improvement district or otherwise contributes funds for capital facilities as defined in this Chapter may be eligible for a credit for such contribution against the impact fee paid. 1. The City Council shall determine: a. The value of the developer contribution; b. Whether the contribution meets capital facilities' needs for which the particular impact fee has been imposed; and c. Whether the contribution will substitute or otherwise reduce the need for capital facilities anticipated to be provided with impact fee funds. In no event, however, shall the credit exceed the amount of the applicable impact fee. 13. When additional residential floor area, hotel floor area or net leasable commercial space are proposed after the demolition of a dwelling unit, lodge unit, or net leasable space, either individually or in combination, a credit for the existing floor area or net leasable space shall be credited towards the replacement development. A credit may only be allocated towards the development on the same individual lot or an adjacent lot within the same redevelopment, and cannot be assigned towards un- related development on a separate lot. Aspen City Council Ordinance No. 27, Series of 2011 Page 5 P116 C. Any application for credit must be submitted on forms provided by the City before development project approval. The application shall contain a declaration under oath of those facts which qualify the property owner for the credit, accompanied by the relevant documentary evidence. D. Total credits may not exceed the Impact Fee and a developer shall not be reimbursed by the City for new development which is smaller than the previous development. (Ord. No. 33, 2006, §1)* 26.610.090. Impact Fees. The following impact fees are the result of the "City of Aspen Impact Fee Study and Update of School Lands Dedication" study, which was sponsored by the City of Aspen and completed by BBC Research and Consulting on August 7, 2006. This study is available at the Community Development Department. On September 26, 2011, the Impact Fees were amended by the City of Aspen in order to make floor area the calculation variable instead of bedrooms. RRC Associates assisted with this effort. Impact fees are hereby established as follows: Table 610.1, Impact Fee Schedule Parks Development Fee Residential and Hotel $5.45 per square foot of Floor Area 3 Nonresidential $4.10 per square foot of Net Leasable Commercial Space TDM/Air Quality Fee Residential and Hotel $0.61 per square foot of Floor Area Nonresidential $0.46 per square foot of Net Leasable Commercial Space Notes: - An Accessory Dwelling Unit or Carriage House, as defined by and meeting the requirements of this Title, shall be calculated as additional floor area of the primary residence. - The calculation for hotel units shall include only the floor area associated with the individual lodging units. The calculation of Parks Development and TDM/Air Quality fees shall not include non -unit space. (Ord. No. 33, 2006, §1)* smiN Aspen City Council Ordinance No. 27, Series of 2011 Page 6 P117 26.610.100. Waiver of fees. Whenever the City Council determines that any part of a proposed development constitutes an affordable housing development or an essential public facility, as defined by this Title, and wishes to subsidize the construction, the City Council may exempt that part of the development from the application of the impact fees or may reduce by any amount the fees imposed by this Chapter. As an economic development incentive, a lodging development may apply for a waiver of the impact fees. An application for a waiver must be made and acted upon by the City Council prior to the submission of a building permit application. Retroactive waivers are not permitted. (Ord. No. 33, 2006, §1) 26.610.110. Appeals. Prior to issuance of a building permit, the applicant may challenge the imposition of a fee imposed pursuant to this Chapter by filing with the Community Development Director a written notice of appeal as provided in Section 26.316.030, Appeals procedures, with a full statement of the grounds and an appeal fee as may be fixed from time to time by ordinance by the City Council. The City may continue processing the building permit application. If the building permit is available for issuance by the City and the appeal has not been heard, the building permit may be issued if a bond or other security in an amount equal to the challenged/unpaid portion of the impact fee /charge is provided to the City. The appeal shall be heard by the City Council. (Ord. No. 33, 2006, §1) Section 2: Pursuant to Section 26.310 of the Municipal Code, the City Council hereby amends Section 26.620, School Land Dedication, which section defines, describes, authorizes, and regulates the collection of School Land Dedication fee -in -lieu for development within the City of Aspen, to read as follows: Chapter 26.620 SCHOOL LAND DEDICATION Sections: 26.620.010 Purpose and intent 26.620.020 Applicability 26.620.030 Exemptions 26.620.040 Definitions 26.620.050 Imposition, calculation and collection of dedications 26.620.060 Procedures for land dedication and/or cash payment irr Aspen City Council Ordinance No. 27, Series of 2011 Page 7 ea` P118 fees. Said fees shall be deposited in the City's general revenue fund to be expended as the City shall determine in its sole discretion. C. Updated Annually. The land dedication standard imposed may be updated annually and adopted by City Council ordinance. (Ord. No. 33, 2006, §2) 26.620.060. Procedures for land dedication and /or cash payment. A. Land Dedication/Cash -in -lieu Acceptance. Acceptance of the lands to be dedicated shall be at the discretion of the City Council. 1. Form. A land dedication requirement of 3,000 square feet of land may automatically be met through a cash -in -lieu of dedication payment. A land dedication requirement of 3,000 square feet or more may be met through dedication of land or through a cash -in -lieu of land dedication payment at the discretion of City Council. 2. Criteria for Land Acceptance. Prior to acceptance of land, the City shall consider the comments of the Aspen School District to determine whether the lands proposed to be dedicated are of adequate size and can be suitably developed for school purposes or whether the lands have the capability of being sold, with the proceeds being used for school purposes. The City shall also consider the Alak probable impacts on neighboring properties of the development of the lands for school purposes. When the lands proposed to be dedicated are not adequate or suitable for school purposes and cannot feasibly be sold, the City shall require a cash payment in lieu of the land dedication. 3. Timing. Payment of cash -in -lieu of a land dedication shall be made to the City prior to and on a proportional basis to the issuance of any building permits for the residential dwelling units. Lands to be dedicated to the City to fulfill the standards of this Chapter shall be identified on a subdivision plat and shall be dedicated to the City prior to and on a proportional basis to the issuance of any building permits for the residential dwelling units. (Ord. No. 33, 2006, §2) 26.620.070. Current land dedication and cash -in -lieu fees. A. The following land dedication is the result of the "City of Aspen Impact Fee Study and Update of School Lands Dedication" study, which was sponsored by the City and completed by BBC Research and Consulting on August 7, 2006. This study is available at the Community Development Department. The land dedication was amended on September 26, 2011 to implement a change that began using floor area as a basis of calculation instead of bedrooms. RRC Associates assisted with the change. The current land area required per student equals 896 square feet. Table 620.1 provides ^+ the student generation rates as follows: Aspen City Council Ordinance No. 27, Series of 2011 Page 10 P119 Table 620.1, Student Generation Rates Floor area (square feet) per Student Generation Rate dwelling unit First 1,200 .000064 students per square foot of Floor Area. 1,200 — 2,100 .000404 students per square foot of Floor Area. 2,100 — 3,500 .000031 students per square foot of Floor Area. Above 3,500 0 Notes: - The calculation of the School Land Dedication shall be assessed per dwelling unit. For example, duplex dwelling units do not combine their floor area for one calculation. - An Accessory Dwelling Unit or Carriage House, as defined by and meeting the requirements of this Title, shall be calculated as additional floor area of the primary dwelling it is associated with. - When redevelopment of a property adds floor area, the difference between the generation rates of the existing floor area and the proposed floor area shall be the basis for determining the number of students generated. No refunds shall be provided if Floor Area is reduced. - When demolition is proposed, the redevelopment shall be credited the floor area from the demolished residential dwelling unit. Credit from a demolished dwelling unit cannot be allocated to more than one replacement dwelling unit or to development on a different lot. Figure 620.1, School Land Dedication Calculation 896 square feet — Land Area per Student Standard multiplied by Total Students Generated — Provided in Table 620.1, Student Generation Rates equals Total Square Feet to be Dedicated B. Cash payment in lieu. An applicant may make a cash payment in lieu of dedicating land to the City, or may make a cash payment in combination with a land dedication, to comply with the standards of this Chapter. Because of the extraordinary cost of land within the City, the School District and the City agreed to require payment of a cash -in- lieu amount which is less than the full market value of the land area. The formula to determine the amount of cash -in -lieu payment for each residential dwelling unit is as follows: Aspen City Council Ordinance No. 27, Series of 2011 Page 11 P120 Figure 620.2, Cash -in -Lieu Formula w� Total Square Feet to be Dedicated •r � multiplied by Per - Square - Foot Value of Land Being Developed (see below for value substantiation) multiplied by Percentage of Fee to be Charged — 33% (.33) equals Cash -in -Lieu Payment Figure 620.3, Cash Payment in Lieu Example The following example provides a development scenario to display how the fee is calculated. The scenario includes a new 3,200 sq. ft. (floor area) single - family residential home on a 6,000 sq. ft. lot with an actual lot value of $2,400,000. The per square foot lot value is $400. Floor Area Students Generated 3,200 (first 1,200 sq. ft. x .000064) .077 (next 900 sq. ft. x .000404) .364 (remainin51,100 sq. ft. x .000031) .034 Total Student Generation Rate .475 Land Dedication Calculation Land Area per Student Standard (sq. ft.) 896 multiplied by Total Students Generated (from above calculation) .475 equals Total Square Feet to be Dedicated 425.6 When calculating a cash payment in lieu of a land dedication (assuming a total land value of $2,400,000 for a 6,000 - square -foot lot containing the dwelling unit), the following calculation would be used to determine the cash payment in lieu: As Aspen City Council Ordinance No. 27, Series of 2011 Page 12 P121 Market Value of Land per sq. ft. $400 per sq. ft. multiplied by Total Square Feet to be Dedicated 425.6 multiplied by Percentage of Fee to be Charged — 33% 0.33 equals Cash Payment in Lieu $56,179.20 1. Current market value. Current market value means the value of the land at the time of the cash -in -lieu payment, including site improvements such as streets and utilities, but excluding the value of residential dwelling units and other structures on the property. 2. Substantiation. Market value may be substantiated by a documented purchase price (if an arms- length transaction no more than two [2] years old) or other mutually agreed -upon recognized means. Such means may include information from the Pitkin County Assessor for the specific parcel or for similar parcels on an aggregate basis or an estimate of value prepared by a qualified appraiser for the specific parcel or for similar parcels on an aggregate basis. 3. Appraisal. In the event the developer and the City fail to agree on market value, such value shall be established by a qualified real estate appraiser acceptable to both parties. The developer shall pay for the appraisal. C. Mixed Use Development. Properties containing mixed use development shall only pay the School Land Dedication fee -in -lieu for the floor area associated with the residential component of the development. Non -unit space shall not contribute to the payment of School Land Dedication. 26.620.080. Appeals. A. Prior to issuance of a building permit, the applicant may challenge the imposition of a land dedication imposed pursuant to this Chapter by filing with the Community Development Director a written notice of appeal as provided in Section 26.316.030, Appeals procedures, with a full statement of the grounds and an appeal fee as may be fixed from time to time by ordinance by the City Council. The City may continue processing the building permit application. If the building permit is available for issuance by the City and the appeal has not been heard, the building permit may be issued if a bond or other security in an amount equal to the land dedication or cash payment is provided to the City. The appeal shall be heard by the City Council. Aspen City Council Ordinance No. 27, Series of 2011 Page 13 .^ P122 (Ord. No. 33, 2006, §2) Section 3: A public hearing on the Ordinance was held on the 26 day of September, 2011, at 5:00 p.m. in Council Chambers, Aspen City Hall, Aspen Colorado, fifteen days (15) prior to which hearing a public notice of the same was published in a newspaper of general circulation within the City of Aspen. Section 4: This ordinance shall not affect any existing litigation and shall not operate as an abatement of any action or proceeding now pending under or by virtue of the ordinances repealed or amended as herein provided, and the same shall be conducted and concluded under such prior ordinances. Section 5: If any section, subsection, sentence, clause, phrase, or portion of this ordinance is for any reason held invalid or unconstitutional in a court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and shall not affect the validity of the remaining portions thereof. INTRODUCED, READ AND ORDERED PUBLISHED as provided by law, by the City Council of the City of Aspen on the 12 day of September, 2011. 3 Attest: Kathryn S. Koch, City Clerk Michael C. Ireland, Mayor FINALLY, adopted, passed and approved this day of , 2011. Attest: Kathryn S. Koch, City Clerk Michael C. Ireland, Mayor Approved as to form: City Attorney aat Nod Aspen City Council Ordinance No. 27, Series of 2011 Page 14 ono To /Zee 4329 RRC ASSOCIATES N / An STA Compnv MEMORANDUM TO: Chris Bendon, Director, and Drew Alexander, Planner, City of Aspen Community Development Department FROM: David Becher, Director of Research, RRC Associates RE: Proposed City of Aspen impact fee calculation methodologies: summary of RRC technical support and opinions regarding statistical validity DATE: September 26, 2011 Introduction RRC Associates was retained by the City of Aspen Community Development Department in summer 2011 to provide as- needed technical support to assist City staff in adjusting the fee calculations for the City's Parks Development Impact Fee, Transportation Demand Management (TDM) /Air Quality Impact Fee, and School Land Dedication Fee. The changes involved converting from the existing per- bedroom fee structures to proposed per- square -foot fee structures. The purpose of this memo is to summarize RRC's involvement and assistance in these fee restructuring efforts, review the methodologies used to generate the fee structures, and provide RRC's opinion regarding the statistical validity of the proposed new impact fee structures. Overall, as described in this memo, RRC believes that the proposed new impact fee structures have been developed in a methodologically and statistically sound manner, subject to the limitations of the available data for evaluation and testing purposes, and subject to identified tradeoffs in balancing statistical precision with administrative ease. `+rr 4940 Pearl East Circle, Suite 103 • Boulder, CO 80301 • 303/449 -6558 • 303/449 -6587 FAX • www.rrcassoc.com C. Bendon and D. Alexander RRC Associates 9/26/11 Page 2 Rationale for Proposed Changes in Fee Structures As identified in impact fee memos prepared for City Council by City staff, for residential uses (as well as for hotel uses, in the case of Parks and TDM /Air quality fees), the three subject impact fees are currently calculated on the basis of the number of bedrooms to be built. However, the definition of "bedroom" in the Aspen code is imprecise, and the City has experienced instances where permit applicants have adjusted and resubmitted their building plans with slight modifications in an effort to have one or more bedrooms reclassified as non - bedrooms to reduce impact fees (the "bedroom game "). To avoid the "bedroom game," to ensure an accurate and equitable fee system, to encourage rational building plans, and to enhance administrative workability, and the Community Development Department has developed and is proposing alternative residential impact fee structures which are based on livable square footage rather than bedrooms. Overview of RRC Technical Support RRC was in regular contact with Community Development Department staff throughout staff's process of developing the proposed new impact fee structures. RRC primarily served in a consultative role, providing comments and suggestions in response to staff questions, raising questions and highlighting issues for staff consideration as warranted, providing technical data support, and reviewing staff work product. RRC understood its responsibility as being to ensure that the proposed new impact fees were developed in a methodologically and statistically sound manner, and to ensure that possible concerns and questions regarding the proposed new fee structures were identified and addressed. General Criteria and Approach for Evaluating Methodological and Statistical Soundness As noted previously, the key change proposed in the residential impact fee structures is to shift from bedroom -based calculations to net livable square footage -based calculations. The two most important criteria used to guide and evaluate the proposed changes were the following: • Aggregate fee neutrality, i.e. the degree to which the proposed new impact fees would generate the same aggregate revenue as the existing impact fees, across a representative distribution of residential units. This involved comparing the fees that would be collected across a representative distribution of residential units under the existing and proposed fee systems. • Bedroom -class fee neutrality, i.e. the degree to which the proposed new impact fees would generate the same aggregate revenue as the existing impact fees for units with a given number of bedrooms. This involved comparing the fees that would be collected for units with different bedroom counts (on average) under the existing and proposed fee systems. Note that this criterion is impossible to satisfy at the individual unit level, r• • C. Bendon and D. Alexander RRC Associates 9126/11 Page 3 insofar as units with the same number of bedrooms can have varying amounts of livable square footage. As such, it should be recognized that a given individual unit of a certain bedroom count will likely be subject to somewhat different fees under the proposed new vs. existing systems. However, the aggregate of units with a given bedroom count should ideally be subject to roughly similar fees (on average). Selection of a Representative Database of Residential Units for Analysis and Testing: Building Permit Database vs. Assessor Database To evaluate fee neutrality on an aggregate and bedroom -count basis, it was necessary to access a representative database of residential units against which the existing and proposed fee systems could be modeled. Two such databases were acquired: • A download of the City of Aspen building permits database, inclusive of permits issued since 2004. • A download of the Pitkin County Assessor database for the area encompassing the City of Aspen. Each database has particular strengths and weaknesses. For background, the identified strengths and weaknesses of the databases include the following: • Building permits database: strengths: o Square footage data should be accurate and indicative of "net livable" square footage for purposes of impact fee calculations. o Bedroom count data should be accurate due to careful review in permit issuance process. o Database reflects "newer" units (built or authorized from 2004 to present). "Newer" units may potentially be more representative of units to be built in future than "older" units which are included as a component of the Assessor database. • Building permits database: weaknesses: o Sample size is small for units with no bedrooms (0 BRs, i.e. studios; 8 units), one bedroom (9 units), and two bedrooms (15 units), as well as larger units with 7 — 14 bedrooms (31 units). Additionally, the overall unit count in the permit database (n =337 units with 0 -14 BRs) is substantially smaller than the count in the Assessor database (n =4,517 units with 1 -14 BRs). o The permits database has four records with 23+ BRs each, totaling 340 BRs and 265,950 sqft. These records are excluded from the analysis due to lack of clarity as to how they break down into component unit /bedroom configurations. As a result of this exclusion, the usable portion of the Permits database may not be fully representative of recently built units. • Assessor database: strengths: o Broadest, most inclusive available database of all existing units in Aspen (virtual census of units). v 1: C. Bendon and D. Alexander RRC Associates 9/26/11 Page 4 • Assessor database: weaknesses: o Tabulates "heated square footage" rather than "net livable square footage," presenting a potential definitional inconsistency with City square footage standards.' o Inability to readily assess studio (OBR) units — e.g. many large residential units (e.g. 2000+ sqft) are reported as having 0 BRs, which is unlikely to be correct. o Presence of six units with 21+ BRs each — presumably apartments, and excluded from analysis due to absence of individual unit bedroom detail —thus database isn't completely usable. There has been extensive discussion between RRC and Aspen staff regarding which of the two databases is most appropriate to use for impact fee modeling purposes. Ultimately, staff determined that the building permits database should be the primary database used for fee modeling purposes, although the process should be informed by the Assessor database as well, to the extent that results between the two databases differ. RRC has deferred to the staff judgment and agrees that this is a reasonable decision (in light of the fact that neither database is "perfect "). As will be discussed below, the final recommended fee levels are benchmarked to the Permits data for the Parks Development Impact Fee and the TDM /Air Quality Impact Fee. By contrast, the School Lands Dedication Fee is benchmarked to a blended average of the Permits and Assessor databases. This memo notes the results of modeling efforts against each database, in the interest of more completely understanding of the fee implications of benchmarking to each respective database. TDM /Air Quality Impact Fee and Parks Development Impact Fee As outlined in the staff memo prepared for the September 26, 2011 City Council meeting, the methodology for preparing the TDM /Air Quality and Parks Development impact fees was as follows (excerpt from memo): For TDM /Air Quality and Parks impact fees, staff has taken the total floor area from the building permit data and divided the number by the total fees paid for those permits. Based on the sample size, staff only used dwelling units with 6 bedrooms or less (there were only very few 7+ bedroom properties to sample from). The total floor area gathered for these permits was 1,022,427 square feet. The total amount of beds was 1,263 (studio units were counted as one- 1 Section 26.575.0201 of the City of Aspen Municipal Code defines the measurement of net livable area as follows: "The calculation of Net Livable Area shall include all interior space measured from interior wall to interior wall, including interior partitions and inclusive of, but not limited to, entryways or lobbies dedicated to one unit, finished or unfinished basements which are or can be made habitable, and storage areas, closets and laundry areas accessible from the interior of a unit. Net livable Area shall not include common circulation areas, common lobbies, common stairwells, common elevator corridors, or similar common spaces not intended or designed to be occupied by an individual tenant. Net Livable Area shall not include uninhabitable basements, mechanical areas, stairs, unconditioned storage accessible only from the exterior, garages, carports, patios, decks, porches or similar spaces." w r C. Bendon and D. Alexander RRC Associates 9/26/11 Page 5 bedroom units). These 1,263 bedrooms paid $5,586,741 for Parks Development. $5,586,741 divided by the floor area amount (1,022,427) equals approximately $5.45 per square foot. The some math was applied for the TDM /Air Quality Fee. RRC has reviewed and generally concurs with the approach, calculations, and results outlined by staff, while noting that the analysis could arguably be extended to include units of 7+ bedrooms, insofar as such units exist in Aspen (notwithstanding the limitations of the small sample size). This methodology should ensure aggregate fee neutrality between the existing and proposed fee systems, to the extent that the Aspen Building Permits database is representative of the distribution of residential units to be built in the future. Additionally, the proposed fee system should provide a significant degree of bedroom -class fee neutrality as well. The existing fee structures vary linearly with the number of bedrooms, while the proposed fee structures vary linearly by square footage. There is a general equivalence between these two fee structures insofar as bedrooms and square footage also exhibit a linear relationship. In fact, analysis of the Aspen Building Permits database indicates that such a linear relationship exists between bedroom count and square footage, as illustrated in Figure 1 to follow. Additionally, modeling indicates that average Parks and Air Quality/TDM fees would be generally similar under the existing and proposed fee systems for each bedroom count grouping. Specifically, for studio through six bedroom units, the average absolute deviation between existing and proposed fees across the bedroom groupings is +/ -8 percent for both fees (per the Permits database). 2 I the analysis was extended to include units with up to 14 bedrooms, the suggested Parks Development impact fee would likely be $5.58 /sqft, or 2.3 percent higher than the proposed $5.45 /sqft. Similarly, the suggested Air Quality/TDM impact fee would likely be $0.63 /sqft, or 3.3 percent higher than the proposed $0.61 /sqft. 3 For additional context, if the proposed fees were calibrated to the Assessor database instead of the Permits database, the suggested Parks Development impact fee would be 6.4 percent higher ($5.80 /sqft instead of $5.45 /sqft), and the suggested TDM /Air Quality Impact fee would be 6.6 percent higher ($0.65 /sqft instead of $0.61 /sqft). The higher fee levels implied by the Assessor calibration are a function of the fact that the average residential square footage per bedroom (aggregated across 0 -6 BR units) is 5.7 percent lower per the Assessor database than the Permits database. 4 = 2 C. Bendon and D. Alexander RRC Associates 9/26/11 Page 6 Figure 1 Relationship between Average Livable Square Footage and Number of Bedrooms for Residential Units Receiving City of Aspen Building Permits (2004-2011 period) 5,000 — Trend line equation: c 4,500 — v= 697.18x- 357.48 4,213 4 243 — R'= 0.9563 a 4,000 Average liveable sqft per unit 3,365 m 3,500 — m 3,000 — — Linear (Average liveable sqft per unit) cr 2,500 2,39 a 2,000 1,500 ,260 a 1 — 646 90 CP 500 0 Studio 1 bedroom 2 bedrooms 3 bedrooms 4 bedrooms 5 bedrooms 6 bedrooms Number of Bedrooms in Unit �.- School Lands Dedication Fee The current school lands dedication fee has a non - linear relationship with the number of bedrooms, due to the fact that student generation rates (on per- bedroom basis) have been found to vary significantly for units with different bedroom counts. In particular, as implied by the existing School Lands Dedication Fee structure, units with three or more bedrooms generate significantly more students (on a per- bedroom basis) than units with zero to two bedrooms. The existing school lands dedication fee thus has five tiers, one for each unit size from studios through 4+ bedroom units. In converting the fee system from bedroom tiers to square footage tiers, the choice was made to utilize three square footage tiers. This choice was based on two major considerations: 1) there rough natural "breaks" in student generation rates between units with 0 -2 bedrooms, 3 bedrooms, and 4 or more bedrooms; 2) limiting the number of tiers to three levels strikes a balance between statistical precision and administrative ease. As noted previously, the School Lands Dedication Fee factors have been calibrated relative to the averaged results of the Assessor and Permits databases. This blending was undertaken due to the fact that the differentials between the two databases are somewhat wider when it comes to calibrating the School Lands Dedication Fee than in calibrating the Parks Development and Air Quality/TDM fees. Using a blended average of the two databases should minimize the • 1 C. Bendon and D. Alexander RRC Associates 9/26/11 Page 7 magnitude that any distortions /anomalies that either of the two databases might have individually. Consistent with this thinking, the upper end of the first tier was set at 1200 square feet, corresponding roughly to the average size of two bedroom units (per average of Permits and Assessor databases). The upper end of the second tier was set at 2100 square feet, slightly below the blended average size of three bedroom units (2200 square feet). The upper end of the third and final tier was set at 3500 square feet, slightly above the average square footage of four bedroom units (3365 square feet per Permits database), to reflect the fact that the student generation rates rise slightly from four bedroom units to units with five or more bedrooms. After the size thresholds were established, the student generation rates corresponding to each size tier were calculated in a manner so as to achieve aggregate and bedroom -class fee neutrality to the extent possible, across a blended average of the Permits and Assessor databases. More specifically, the student generation rates were calculated in such a manner as to minimize discrepancies (to the extent possible) between the existing and proposed fee systems for units with 0 -2 bedrooms, 3 bedrooms, 4 -14 bedrooms, and all units. The resulting staff recommendation (.000064 students /sqft for first 1200 sqft; .000404 students /sqft for 1200 -2100 sqft, and .000031 students /sqft for 2100 -3500 sqft) minimizes the discrepancy in average fee collections between the proposed vs. existing systems to -0.8 percent for all units, - +1.5 percent for 0 -2 BR units, +2.6 percent for 3 BR units, and +1.9 percent for 4-14BR units. RRC worked closely with staff in all phases of the development of the proposed school land dedication fees, and feels that the approach and conclusions are sound, subject to the aforementioned limitations of the Permits and Assessor databases for evaluation and testing purposes, and subject to reasonable tradeoffs in balancing statistical precision with administrative ease. The finding that student generation rates increase from 4 BR units to 5+ BR units was based on an analysis of student generation rates by bedroom count as indicated by the American Community Survey (US Census), 2005 -09 average, for Public Use Microdata Area 00700, encompassing Eagle, Grand, Gunnison, Hinsdale, Lake, Mineral, Ouray, Pitkin, and Summit counties. Detailed findings of the analysis have been provided to the Aspen Community Development Department. Additionally, the decision to use the Permits database as the source of the average size of 4 BR units (3,365 sqft) instead of the Assessor database (3,633 sqft) was based on concerns that Assessor "heated square footage" may increasingly diverge in nature from Permits "net livable square footage" for progressively larger units. 5 For additional context, if the Permits database alone was used to evaluate the School Lands Dedication Fee, aggregate fees would be 4.7 percent higher under the proposed fee structure than under the existing fee structure. By contrast, if the Assessor database alone was used to evaluate the fee structure, aggregate fees would be 6.4 percent lower under the proposed fee structure than under the existing fee structure. Drew Alexander From: Kate Fuentes [kfuentes @aspenk12.net] Sent: Monday, September 26, 2011 2:18 PM To: Chris Bendon Cc: Drew Alexander Subject: RE: Code amendments Chris, The School District has reviewed the proposed code amendments as described in the staff memo, ordinance and spreadsheet. We acknowledge the need for the change to the way certain impact fees are calculated and charged. We focused our review on keeping the proposed fees as close as possible to the current structure, as the goal is not to change the rate being charged. After several reviews of potential code amendments, we believe the current proposal will achieve the desired results. We are very appreciative of how this process worked — City staff included us in conversations from very early on, and continued to ask for and accommodate our recommendations and revisions until we achieved a result that work for both the City and the School District. Thank you for your time and efforts! • Kate D. Fuentes Chief Financial Officer Aspen School District No.1 RE 0235 High School Rd. Aspen, CO 81611 970.925.3760 x4009 kfuentes@aspenk12.net From: Chris Bendon [ mailto :Chris.Bendon @ci.aspen.co.us] Sent: Thursday, September 22, 2011 12:54 PM To: Kate Fuentes Cc: Drew Alexander Subject: FW: Code amendments Kate: Attached is the staff memo and Ordinance reflecting the changes to the City's impact fees. They are based on the spreadsheet from RRC, also attached. If you could provide the District's position on this it would be greatly appreciated. A reply email is fine. Again, thanks for your responsiveness to this matter and the flurry of iterations you've had to review. Thank you, thank you. Cheers, Chris From: David Becher [mailto:david @rrcassoc.com] Sent: Wednesday, September 21, 2011 11:31 PM To: Chris Bendon Cc: Drew Alexander Subject: RE: Code amendments 1 VUa MEMORANDUM TO: Mayor Ireland and Aspen City Council 644 THRU: Chris Bendon, Community Development Director FROM: Drew Alexander, Planner RE: Code Amendments - Impact Fees (26.610) and School Land Dedication (26.620); Ordinance No. Series of 2011 MEETING DATE: First Reading: September 12 2011 Second Reading: September 26 2011 SUMMARY: The current City of Aspen Land Use Code imposes a number of impact fees and land dedication fees -in -lieu upon residential development to ensure that "development pay all or part of its way." These exactions are currently calculated and based upon the number of bedrooms proposed for the development. Staff is preparing amendments to the Land Use Code to eliminate the "bedroom game" and maintain a higher level of service. Amending the calculation methodology of the impact fees and land dedication fee -in -lieu should greatly simplify the zoning review process. The affected fees include Parks Development Impact Fee, Transportation Demand Management (TDM) /Air Quality Impact Fee, and School Land Dedication. These amendments reflect Land Use Code Chapters 26.610, Impact Fees and 26.620, School Land Dedication. The Impact Fee and School Land Dedication language was last amended in 2006 by Community Development Staff and BBC Research and Consulting out of Denver. It was during this time that the formula for using bedrooms for calculation was arrived at. No amendments have taken place since 2006. REVIEW PROCEDURE: Text Amendment. At a duly noticed public hearing, the Commission shall recommend by Resolution the City Council to approve, approve with conditions, or deny the application. BACKGROUND: For residential development, the impact fees and land dedication fees -in -lieu are calculated based upon the number of bedrooms in a residence. The Land Use Code has a definition of "bedroom" that the zoning officer uses when reviewing plans: Bedroom: A portion of a dwelling unit intended to be used for sleeping purposes, which may contain closets, and may have access to a bathroom. Page 1 of 4 This definition is not precise and lends itself to varying interpretation. What frequently happens (because the fees can be large) is that architects and builders will begin the "bedroom game" with the zoning officer to try and lessen the fee amount. For example, a room with a closest may be labeled as a "study" on a plan set to avoid fees, but the zoning officer will calculate the room as a bedroom because it meets the definition in the code. Then, the architect will disagree with the decision and make small amendments. These resubmissions persist until the zoning officer determines the room is no longer a bedroom. These changes usually look like doors being removed, removal of closets, or eliminated bathrooms or access to bathrooms. In an effort to avoid the bedroom debate altogether; staff has prepared a new draft of the Impact Fees and School Lands Dedication language that uses floor area as the calculation variable for fees. Staff created a report from approximately 350 building permits dating back to 2004 and examined two categories: floor area and number of bedrooms. RRC Associates in Boulder, CO are acting as a consultant on the project and confirming any data that staff is using for statistical validity. RRC Associates specialize in research and analysis with an emphasis in land use planning. Converting the City's impact fee system to a floor area basis will simplify zoning review, eliminate time wasted debating about the purpose /use of each room, impose fees more predictably, and make the impact fee estimates more precise for prospective applicants. Using floor area rather than the number of bedrooms should result in a system that is more accurate. As stated, the "bedroom game" encourages building permits to have awkward amendments and less than practical finished layouts. Floor area provides a simple metric that will accurately assess fees based on the size of home. These amendments will only alter the method of calculation, not the pre - determined fee schedules that have been in use since 2006. NEW CALCULATIONS: For TDM/Air Quality and Parks impact fees, staff has taken the total floor area from the building permit data and divided the number by the total fees paid for those permits. Based on the sample size, staff only used dwelling units with 6 bedrooms or less (there were only very few 7+ bedroom properties to sample from). The total floor area gathered for these permits was 1,022,427 square feet. The total amount of beds was 1,255. 1,255 bedrooms would have paid $5,558,395 for Parks Development. $5,558,395 divided by the floor area amount (1,022,427) equals approximately $5.45 per square foot. The same math was applied for the TDM /Air Quality Fee. For School Lands Dedication, staff had to identify the average size of a four bedroom home (being that was the basis of the previous calculation). After analyzing the date, the average size of a four bedroom home was identified as 3,475 square feet of floor area. Staff then took this number and divided the cap on student generation (.452) by it. This resulted in a per square foot student generation rate of .00013 students. Additionally, to address the type of increasing scale that is present in the current Code, staff identified a generation rate for the average sized two- bedroom home. Applying the same math as explained for the 4 Page 2 of 4 t�‘ bedroom mitigation rate, .00008 was identifying as the generation rate. Three and four bedroom homes were adjusted accordingly for this scale (.00016 instead of .00013). Please see Table 2 below. Throughout this drafting process, staff has been in contact with the Aspen School District, the Transportation Dept., Parks Dept., and Environmental Health (groups that are impacted or receive funds from these fees). After this hearing, staff will continue this outreach and inform these entities of the Planning and Zoning Commission's recommendation. The new fees would include the following for residential development: Table 1: Parks and TDM/Air Quality for residential Parks Development ;' $5.45 per sq. ft of floor area TDM/Air, Quality $0.61 per sq. ft of floor area Note: • Hotel development is calculated just as residential floor area. However, non -unit space will not be contributed to these units during the calculation for fees. • Net leasable square foot is already calculated per square foot and will remain the same. Table 2: School Land Dedication Floor area (sq. ft.) Student Generation Rate First 1,200 .00008 per sq. ft 1,201 — 3,425 .00016 per sq. ft. Above 3,425 0 Notes: - An Accessory Dwelling Unit or Carriage House, as defined by and meeting the requirements of this Title, shall be calculated as additional floor area of a single - family or duplex dwelling. - When redevelopment of a property adds floor area, the difference between the generation rates of the existing floor area and the proposed floor area shall be the number of students generated. - For example, a 950 square foot residential unit would be required to mitigate for 68 square feet of land (950 *.00008) *896 = 68). Also see Figure 620.1. Staff is continuously refining these numbers with RRC and would like to inform Council that there could be slight differences between first reading and second reading. Page 3 of 4 RECOMMENDATION: W.. Staff recommends City Council approve Resolution Series of 2011 at First Reading and schedule the public hearing and Second Reading for September 26 2011. CITY - - GER COMMENTS: �g,�i� f -- _ Act-4n i . • RECOMMENDED MOTION: � "I move to approve `i d en te � eves of 2011 recommending approval of the amendments to Impact Fees and School Land Dedication at first reading." Attachments: a 4e € No..eries of 2011 Page 4 of 4 ORDINANCE NO. on' . - (SERIES OF 2011) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, APPROVING AMENDMENTS TO THE FOLLOWING CHAPTERS OF THE CITY OF ASPEN LAND USE CODE: 26.610 AND 26.620 WHICH EXPLAIN THE COLLECTION OF IMPACT FEES AND SCHOOL LAND DEDICATION RESPECTFULLY. WHEREAS, the Community Development Director of the City of Aspen initiated an application proposing amendments to the Land Use Code, pursuant to Chapter 26.210; and, WHEREAS, the amendments relate to Chapters 26.610, Impact Fees, and 26.620, School Land Dedication, of Title 26 of the Aspen Municipal Code; and, WHEREAS, pursuant to Section 26.310, applications to amend the text of Title 26 of the Municipal Code shall be reviewed and recommended for approval, approval with conditions, or denial by the Community Development Director and then by the Planning and Zoning Commission at a public hearing. Final action shall be by City Council after reviewing and considering these recommendations; and, WHEREAS, the Community Development Director recommended approval of amendments to the above listed Sections as further described herein; and, WHEREAS, the Planning and Zoning Commission held a duly noticed public hearing to consider the proposed amendments described herein on July 5, 2011, and continued the public hearing on the following dates: July 19, August 2, and August 23. At the August 25, 2011 public hearing the Planning and Zoning Commission took and considered public testimony and the recommendation of the Director and recommended, by a 4 - 0 vote, that the City Council adopt the proposed amendments. WHEREAS, during a duly noticed public hearing on September 26, 2011, the City Council took public testimony, considered pertinent recommendations from the Community Development Director, referral agencies, Planning and Zoning Commission, and considered the amendments under the applicable provisions of the Municipal Code as identified herein and approved the revisions by a vote of _ - ; and, WHEREAS, the Aspen City Council finds that the proposed Land Use Code amendments meet or exceed all the applicable standards and that the approval of the amendments, with conditions, is consistent with the goals and elements of the Aspen Area Community Plan; and, WHEREAS, the City Council finds that this ordinance furthers and is necessary for the promotion of public health, safety, and welfare. Aspen City Council Ordinance No._, Series of 2011 Page 1 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, THAT: Section 1: Pursuant to Section 26.310 of the Municipal Code, the Aspen Planning and Zoning Commission hereby recommends City Council amend Section 26.610, Impact Fees, which section defines, describes, authorizes, and regulates the collection of Impact Fees of Parks Development and Transportation Demand Management (TDM) /Air Quality within the City of Aspen to read as follows: Chapter 26.610 IMPACT FEES Sections: 26.610.010 Purpose and intent 26.610.020 Applicability 26.610.030 Exemptions 26.610.040 Definitions 26.610.050 Imposition, calculation and collection of fees /charges 26.610.060 Impact fee accounts 26.610.070 Use of impact fee proceeds 26.610.080 Credits 26.610.090 Current impact fees 26.610.100 Waiver of fees 26.610.110 Appeals 26.610.010. Purpose and intent. For residents and visitors, parks and recreation facilities make up a significant part of the community character of the City. As a result of growth, increased pressure is placed on existing parks and recreation facilities necessitating acquisition of new park lands and development of additional recreation facilities in order to maintain the current level of service. In order to maintain the current community standards for acquisition of open space and development of parks and recreation facilities, the City finds it necessary to impose a Park Development impact fee on new development. Transportation demand management and air quality capital facilities ensure the mobility of residents, workers and visitors through multi -modal solutions, as well as clean air for the community. The Aspen Area Community Plan directs the City to maintain traffic levels at or below 1993 levels in order to protect our environment and quality of life, and the City has invested in capital facilities to do so. As new development and growth occur, increased pressure is placed upon our existing facilities, necessitating expansion of these capital facilities to maintain the current level of service. In order to maintain the current community .. standards for transportation demand management and air quality, the City finds it necessary r..r Aspen City Council Ordinance No. , Series of 2011 Page 2 to impose a Transportation Demand Management/Air Quality impact fee on new development. This Chapter is enacted for the purpose of implementing the City's plans for capital facilities by requiring that new development pay for its fair share of such facilities through the imposition of impact fees that will be used to finance, defray or reimburse all or a portion of the costs incurred by the City to serve new development. (Ord. No. 33, 2006, §1) Sec. 26.610.020. Applicability. Unless expressly exempted, the Park Development impact fee and the Transportation Demand Management (TDM) /Air Quality impact fee shall be assessed upon all development within the City which contains new residential floor area or net leasable space. (Ord. No. 33, 2006, §1)* 26.610.030. Exemptions. This Chapter does not apply to: A. Development involving a property listed on the Aspen Inventory of Historic Landmark Sites and Structures. This exemption is solely for an historic structure and its accessory structures. Development on an historic landmark property involving a non- historic or new building shall not be exempt. B. Alteration, expansion or replacement of a structure which does not create additional floor area or net leasable space. (Ord. No. 33, 2006, §1)* 26.610.040. Definitions. When used in this Chapter, the following words, terms and phrases, and their derivations, shall have the meanings ascribed to them in this Section, except where the context clearly indicates a different meaning. Other words and terms shall be defined under the Definition section of this Title: A. Building permit means any City permit that involves increases in floor area, net leasable square footage and/or changes to land use. B. Capital facilities means land, structures or equipment for purposes of parks and recreation, transportation demand management and air quality. Capital facilities also includes design, engineering, inspection, testing, planning, legal review, land acquisition and all other costs associated with the construction or purchase of land, structures or equipment. C. Collection means the point at which the impact fee /charge is actually paid to the City. D. Impact fee means a monetary exaction imposed by the City pursuant to this Chapter as a condition of or in connection with approval of a development project for the purpose Aspen City Council Ordinance No. Series of 2011 Page 3 of defraying all or some of the City's cost for capital facilities associated with that ... development project. E. Impose means to determine that a particular development project is subject to the collection of impact fees as a condition of development approval. F. New development or development project means any project undertaken for the purpose of development, including without limitation a project involving the issuance of a permit for construction, reconstruction or change of use but not a project involving the issuance of a permit to operate or to remodel, rehabilitate, reconstruct or improve an existing structure, which does not change the amount of floor area, amount of net leasable space, density or intensity of use. G. Nonresidential development project means all development other than residential development projects. H. Residential development project means any development, inclusive of hotel development, undertaken to create a new dwelling/lodge unit or add additional floor area to an existing dwelling/lodge unit. (Ord. No. 33, 2006, §1)* 26.610.050. Imposition, calculation and collection of fees /charges. A. Imposition. Except as provided in this Chapter and any amendment to this Chapter, the City may impose impact fees as a condition of approval of all new development projects. B. Updated annually. The base amount of each impact fee for each type of development project may be calculated annually and adopted by City Council ordinance. The City may choose to update its fee schedule based on the change in the Engineering News Record inflation index that occurs between annual updates. C. Collection. Impact fees shall be collected by the Building Department at the time and as a condition for issuance of a building permit. (Ord. No. 33, 2006, §1) 26.610.060. Impact fee accounts. A. Individual accounts. The City shall establish an impact fee account for each type of capital facility for which an impact fee is imposed. The impact fees collected shall be deposited in each such account according to type of improvement. The funds of the account shall not be commingled with other funds of the City. B. Interest - bearing. Each impact fee account shall be interest- bearing, and the accumulated interest shall become part of the account. (Ord. No. 33, 2006, §1) Aspen City Council Ordinance No., Series of 2011 Page 4 26.610.070. Use of impact fee proceeds. Impact fees may be expended only for the type of capital facilities for which they were imposed, calculated and collected and according to procedures established in this Chapter. Impact fees may be used to pay the principal, interest and other costs of bonds, notes and other obligations issued or undertaken by or on behalf of the City to finance such improvements. (Ord. No. 33, 2006, §1) Sec. 26.610.080. Credits. A. A property owner who dedicates land or improvements, agrees to participate in an improvement district or otherwise contributes funds for capital facilities as defined in this Chapter may be eligible for a credit for such contribution against the impact fee paid. 1. The City Council shall determine: a. The value of the developer contribution; b. Whether the contribution meets capital facilities' needs for which the particular impact fee has been imposed; and c. Whether the contribution will substitute or otherwise reduce the need for capital facilities anticipated to be provided with impact fee funds. In no event, however, shall the credit exceed the amount of the applicable impact fee. B. When additional residential floor area, hotel floor area or net leasable space are proposed after the demolition of a dwelling unit, lodge unit, or net leasable space, either individually or in combination, a credit for the existing floor area or net leasable space shall be credited towards the replacement development. A credit may only be allocated towards the development on an individual lot and cannot be assigned towards development on a separate lot. C. Any application for credit must be submitted on forms provided by the City before development project approval. The application shall contain a declaration under oath of those facts which qualify the property owner for the credit, accompanied by the relevant documentary evidence. (Ord. No. 33, 2006, §1)* 26.610.090. Current impact fees. The following impact fees are the result of the "City of Aspen Impact Fee Study and Update of School Lands Dedication" study, which was sponsored by the City of Aspen and completed by BBC Research and Consulting on August 7, 2006. This study is available at the Community Development Department. On August , 2011, the Impact Fees were amended by the City of Aspen in order to make floor area the calculation variable instead of bedrooms. Impact fees are hereby established as follows: Table 610.1, Impact Fee Schedule Aspen City Council Ordinance No._, Series of 2011 Page 5 Parks Development Fee Residential and Hotel (per sq. ft. floor area) $5.45 Nonresidential (per net leasable sq. ft.) 4.10 TDM/Air Quality Fee Residential and Hotel (per sq. ft. floor area) $0.61 Nonresidential (per net leasable sq. ft.) 0.46 Notes: - An Accessory Dwelling Unit or Carriage House, as defined by and meeting the requirements of this Title, shall be calculated as additional floor area of a single - family or duplex dwelling. - The calculation for hotel units shall include only the floor area associated with the individual lodging units. The payment of Parks Development and TDM/Air Quality fees shall not include non -unit space. (Ord. No. 33, 2006, §1)* 26.610.100. Waiver of fees. Whenever the City Council determines that any part of a proposed development constitutes an affordable housing development or an essential public facility, as defined by this Title, and wishes to subsidize the construction, the City Council may exempt that part of the development from the application of the impact fees or may reduce by any amount the fees imposed by this Chapter. As an economic development incentive, a lodging development may apply for a waiver of the impact fees. An application for a waiver must be made and acted upon by the City Council prior to the submission of a building permit application. Retroactive waivers are not permitted. (Ord. No. 33, 2006, §1) Sec. 26.610.110. Appeals. Prior to issuance of a building permit, the applicant may challenge the imposition of a fee imposed pursuant to this Chapter by filing with the Community Development Director a written notice of appeal as provided in Section 26.316.030, Appeals procedures, with a full statement of the grounds and an appeal fee as may be fixed from time to time by ordinance by the City Council. The City may continue processing the building permit application. If the building permit is available for issuance by the City and the appeal has not been heard, the building permit may be issued if a bond or other security in an amount equal to the challenged/unpaid portion of the impact fee /charge is provided to the City. The appeal shall be heard by the City Council. (Ord. No. 33, 2006, §1) Section 2: Aspen City Council Ordinance No._, Series of 2011 Page 6 Pursuant to Section 26.310 of the Municipal Code, the Aspen Planning and Zoning Commission hereby recommends City Council amend Section 26.620, School Land Dedication, which section defines, describes, authorizes, and regulates the collection of School Land Dedication fee -in -lieu within the City of Aspen to read as follows: Chapter 26.620 SCHOOL LAND DEDICATION Sections: 26.620.010 Purpose and intent 26.620.020 Applicability 26.620.030 Exemptions 26.620.040 Definitions 26.620.050Imposition, calculation and collection of dedications 26.620.060 Procedures for land dedication and/or cash payment 26.620.070 Current land dedication and cash -in -lieu fees 26.620.080 Appeals 26.620.010. Purpose and intent. The Aspen School District requires land for necessary school functions which may include, but are not limited to, school buildings, support facilities, open space and recreation areas and housing for employees and their immediate families. The purpose of this provision is to ensure that, as development occurs and enrollment in the schools grows, the current level of service provided to students can be maintained. This is accomplished by the adoption of standards for new development to provide land, or cash in lieu thereof, to the City, for use by the Aspen School District. The standards are based on the number of students the development generates and the current level of service standard within the Aspen School District for land area provided per student. (Ord. No. 33, 2006, §2) 26.620.020. Applicability. Unless expressly exempted, the school land dedication standard shall be assessed upon all development within the City which contains residential dwelling units or additional floor area. The school land dedication standard shall only be assessed on the first 3,475 sq. ft. of floor area per dwelling, unit. (Ord. No. 33, 2006, §2)* Sec. 26.620.030. Exemptions. Any development considered nonresidential development, as defined by this Chapter, is exempt from the school land dedication. (Ord. No. 33, 2006, §2) Aspen City Council Ordinance No._, Series of 2011 Page 7 Sec. 26.620.040. Definitions. When used in this Chapter, the following words, terms and phrases, and their derivations, shall have the meanings ascribed to them in this Section, except where the context clearly indicates a different meaning: A. Building permit means any City permit that increases residential floor area and/or changes of land use. B. Collection means the point at which land or a cash payment in lieu is actually transferred or paid to the City. C. Impose means to determine that a particular development project is subject to the collection of a land dedication as a condition of development approval. D. Land dedication means a land exaction imposed by the City pursuant to this Chapter as a condition of or in connection with approval of a development project for the purpose of defraying all or some of the Aspen School District's cost for capital facilities associated with that development project. E. New development or development project means any project undertaken for the purpose of development, including without limitation, a project involving the issuance of a permit for construction, reconstruction or change of use but not a project involving the issuance of a permit to operate or to remodel, rehabilitate, reconstruct or improve an existing structure, which does not change the amount of floor area. F. Nonresidential development project means all development other than residential development. G. Residential development project means any development undertaken to create a new dwelling unit or to add additional floor area to an existing dwelling unit, excluding hotel units. (Ord. No. 33, 2006, §2) 26.620.050. Imposition, calculation and collection of dedications. A. Imposition. Except as provided in this Chapter and any amendment to this Chapter, the City may impose a school land dedication as a condition of approval of all new development projects. All lands dedicated to the City pursuant to this Section shall be held by the City for the Aspen School District, until such time as they shall be requested by the School District for school purposes. The Aspen School District shall be responsible for maintenance of said lands in a reasonable manner while they are being held by the City. B. Collection. Land dedications shall be finalized and completed prior to building permit application. A cash payment in lieu, however, shall be collected by the Building Department at the time and as a condition for issuance of a building permit. Nose Aspen City Council Ordinance No. Series of 2011 Page 8 PON 1. Funds. All funds collected pursuant to this Chapter shall be transferred by the Community Development Director to the Finance Director. All funds so collected shall be properly identified and promptly deposited in a designated account. Funds withdrawn from this fund shall be used exclusively for the purposes specified herein. 2. City shall transfer funds to School District. Funds collected pursuant to this Chapter shall be remitted monthly to the Aspen School District. The Aspen School District shall deposit said funds into an interest - bearing account authorized by law. The Aspen School District shall be the owner of the funds in the account, but the signature of the chief financial officer of the Aspen School District, or his or her designee, and the signature of the Finance Director of the City shall be required for the withdrawal of monies from the account. 3. Administrative Fee. The City shall be entitled to retain two percent (2 %) of the funds collected to compensate it for its administrative expenses of collecting the fees. Said fees shall be deposited in the City's general revenue fund to be expended as the City shall determine in its sole discretion. C. Updated Annually. The land dedication standard imposed may be updated annually and adopted by City Council ordinance. (Ord. No. 33, 2006, §2) 26.620.060. Procedures for land dedication and/or cash payment. A. Land Dedication. Lands to be dedicated to the City to fulfill the standards of this Chapter shall be identified on the subdivision plat and shall be dedicated to the City at the time of final plat approval. 1. Acceptance. Acceptance of the lands to be dedicated shall be at the discretion of the City Council. 2. Criteria. Prior to acceptance, the City shall consider the comments of the Aspen School District to determine whether the lands proposed to be dedicated are of adequate size and can be suitably developed for school purposes or whether the lands have the capability of being sold, with the proceeds being used for school purposes. The City shall also consider the probable impacts on neighboring properties of the development of the lands for school purposes. When the lands proposed to be dedicated are not adequate or suitable for school purposes and cannot feasibly be sold, the City shall require a cash payment in lieu of the land dedication. B. Cash -in -lieu payment. Payment of cash in lieu of a land dedication shall be made to the City prior to and on a proportional basis to the issuance of any building permits for the residential dwelling units. (Ord. No. 33, 2006, §2) Aspen City Council Ordinance No._, Series of 2011 Page 9 "Th 26.620.070. Current land dedication and cash -in -lieu fees. A. The following land dedication is the result of the "City of Aspen Impact Fee Study and Update of School Lands Dedication study, which was sponsored by the City and completed by BBC Research and Consulting on August 7, 2006. This study is available at the Community Development Department. The land dedication was amended on August —, 2011 to implement a change that began using floor area as a basis of calculation instead of bedrooms. The current land area required per student equals 896 square feet. Table 620.1 provides the student generation rates as follows: Table 620.1, Student Generation Rates Floor area (sq. ft.) Student Generation Rate First 1,200 .00008 per sq. ft. 1,201 — 3,425 .00016 per sq. ft. Above 3,425 0 Notes: - The calculation of the School Land Dedication shall be access per dwelling unit. For example, duplex dwelling units do not combine their floor area for one calculation. - An Accessory Dwelling Unit or Carriage House, as defined by and meeting the requirements of this Title, shall be calculated as additional floor area of the single - family or duplex dwelling it is associated with. - When redevelopment of a property adds floor area, the difference between the generation rates of the existing floor area and the proposed floor area shall be the number of students generated. - When a scrape- and - replace project is proposed, the redevelopment shall be credited the floor area from the demolished residential dwelling unit. Credit from a demolished dwelling unit cannot be allocated to more than one replacement dwelling unit or to development on a different lot. - For a general example, a 950 square foot residential unit would be required to mitigate for 68 square feet of land (950 *.00008) *896. Also see Figure 620.1. sir Aspen City Council Ordinance No., Series of 2011 Page 10 Figure 620.1, School Land Dedication Calculation • Land Area per Student Standard (square feet) multiplied by Total Students Generated (Provided in Table 620.1, Student Generation Rates) equals Total Square Feet to be Dedicated 13. Cash payment in lieu. An applicant may make a cash payment in lieu of dedicating land to the City, or may make a cash payment in combination with a land dedication, to comply with the standards of this Chapter. Because of the extraordinary cost of land within the City, the School District and the City agreed to require payment of a cash -in- lieu amount which is less than the full market value of the land area. The formula to determine the amount of cash -in -lieu payment for each residential dwelling unit is as follows: Figure 620.2, Cash -in -Lieu Formula Total Square Feet to be Dedicated multiplied by Appraised Per - Square - Foot Value of Land Being Developed multiplied by Percentage of Fee to be Charged (0.33) equals Cash -in -Lieu Payment sir Aspen City Council Ordinance No._, Series of 2011 Page 11 Figure 620.3, Cash Payment in Lieu Example The following example provides a development scenario to display how the fee is calculated. The scenario includes a new 3,200 sq. ft. (floor area) single - family residential home on a 6,000 sq. ft. lot with an actual lot value of $2,400,000. This lot value would mean a per sq. ft. lot value of $400. Floor Area Students Generated 3,200 (first 1,200 sq. ft. x .00008) .096 (remaining 2,000 sq. ft. x .00016) .32 Total Student Generation Rate .416 Land Dedication Calculation Land Area per Student Standard (sq. ft.) 896 multiplied by Total Students Generated (from above calculation) .416 equals Total Square Feet to be Dedicated 372.74 When calculating a cash payment in lieu of a land dedication (assuming a total land value of $2,400,000 for a 6,000 - square -foot lot containing the dwelling unit), the following calculation would be used to determine the cash payment in lieu: Market Value of Land per sq. ft. $400 per sq. ft. multiplied by Total Square Feet to be Dedicated 372.74 multiplied by Percentage of Fee to be Charged 0.33 equals Cash Payment in Lieu $49,201.68 1. Current market value. Current market value means the value of the land at the time of the cash -in -lieu payment, including site improvements such as streets and .� utilities, but excluding the value of residential dwelling units and other structures , on the property. Aspen City Council Ordinance No._, Series of 2011 Page 12 2. Substantiation. Market value may be substantiated by a documented purchase price (if an arms - length transaction no more than two [2] years old) or other mutually agreed -upon recognized means. 3. Appraisal. In the event the developer and the City fail to agree on market value, such value shall be established by a qualified real estate appraiser acceptable to both parties. The developer shall pay for the appraisal. C. Mixed Use Development. Properties containing mixed use development shall only pay the School Land Dedication fee -in -lieu for the floor area associated with the residential component of the development. Non -unit space shall not contribute to the payment of School Land Dedication. 26.620.080. Appeals. A. Prior to issuance of a building permit, the applicant may challenge the imposition of a land dedication imposed pursuant to this Chapter by filing with the Community Development Director a written notice of appeal as provided in Section 26.316.030, Appeals procedures, with a full statement of the grounds and an appeal fee as may be fixed from time to time by ordinance by the City Council. The City may continue processing the building permit application. If the building permit is available for issuance by the City and the appeal has not been heard, the building permit may be issued if a bond or other security in an amount equal to the challenged/unpaid portion of the land dedication is provided to the City. The appeal shall be heard by the City Council. (Ord. No. 33, 2006, §2) Section 3: A public hearing on the Ordinance was held on the 26 day of August, 2011, at 5:00 p.m. in Council Chambers, Aspen City Hall, Aspen Colorado, fifteen days (15) prior to which hearing a public notice of the same was published in a newspaper of general circulation within the City of Aspen. Section 4: This ordinance shall not affect any existing litigation and shall not operate as an abatement of any action or proceeding now pending under or by virtue of the ordinances repealed or amended as herein provided, and the same shall be conducted and concluded under such prior ordinances. Section 5: If any section, subsection, sentence, clause, phrase, or portion of this ordinance is for any reason held invalid or unconstitutional in a court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and shall not affect the validity of the remaining portions thereof. ar Aspen City Council Ordinance No._, Series of 2011 Page 13 INTRODUCED, READ AND ORDERED PUBLISHED as provided by law, by the City Council of the City of Aspen on the 12 day of September, 2011. Attest: Kathryn S. Koch, City Clerk Michael C. Ireland, Mayor FINALLY, adopted, passed and approved this day of , 2011. Attest: Kathryn S. Koch, City Clerk Michael C. Ireland, Mayor Approved as to form: City Attorney Vie Aspen City Council Ordinance No., Series of 2011 Page 14 AFFIDAVIT OF PUBLIC NOTICE REQUIRED BY SECTION 26.304.060 (E), ASPEN LAND USE CODE ADDRESS OF PROP ��iijj// , Aspen, CO SCHEDULED PUBLIC HEARING DATE: e 4.3bD+ ,2021 STATE OF COLORADO ) ) ss. County of Pitkin (name, please print) being or representin an Applicant to the City of Aspe , Colorado, hereby personally certify that 1 have complied with the public notice requirements of Section 26.304.060 (E) of the Aspen Land Use Code in the following manner: Publication of notice.: By the publication in the legal notice section of an officio\ paper or a paper of general circulation in the City of Aspen at least fifteen (15) \ "1 days prior to the public hearing. A copy of the publication is attached hereto. ter/ Posting of notice: By posting of notice, which form was obtained from the Community Development Department, which was made of suitable, waterproof materials, which was not less than twenty-two (22) inches wide and twenty-six (26) inches high, and which was composed of letters not less than one inch in height. Said notice was posted at least fifteen (15) days prior to the public hearing and was continuously visible from the _ day of 20 to and including the date and time of the public hearing. A photograph of the posted notice (sign) is attached hereto. Mailing of notice. By the mailing of a notice obtained from the Community Development Department, which contains the information described in Section 26.304.060(E)(2) of the Aspen Land Use Code. At least fifteen (15) days prior to the public hearing, notice was hand delivered or mailed by first class postage prepaid U.S. mail to all owners of property within three hundred (300) feet of the property subject to the development application. The names and addresses of property owners shall be those on the current tax records of Pitkin County as they appeared no more than sixty (60) days prior to the date of the public hearing. A copy of the owners and governmental agencies so noticed is attached hereto. (Continued on next page) ' /"'t Rezoning or text amendment: Whenever the official zoning district map is in r any way to be changed or amended incidental to or as part of a general revision of this Title, or whenever the text of this Title is to be amended, whether such revision be made by repeal of this Title and enactment of a new land use regulation, or otherwise, the requirement of an accurate survey map or other sufficient legal description of, and the notice to and listing of names and addresses of owners of real property in the area of the proposed change shall be waived. However, the proposed zoning map shall be available for public inspection in the planning agency during all business hours for fifteen (15) days prior to the public hearing on such amendments. _ Signature . The foregoing "Affidavit of Notice" was acknowledged before me this day ofJv --e- , 20 by _74- m-et. cal -e-, —, PUBII NO TIC C H: CITY .1 0IATED AMENDME TO WITNESS MY TT A ND AND OFFICIAL T S EA T CHAPTERS 2 6.109.100, 26.5]5, 28J10 and YY 111V 1:JJ MY 11!11 `I lJ L11VL i'i'11.1t1L Ji'i!]l. 26 .610,26,620 OF THE LAN USE C00E NOTICE /5 HEREBY /tirnt a public hearing will eg on da 6 to begin held at 4:30 Tuesp;m. , 2011, the Aspen P ending commission expires: mica • g tommi C illea R er Cit Ha Galenen Io r nitlon ) essie a epartment Initiated res. Develo na on rentals D I V 1 4 A A II!�"{/A/ -111/ Wmmtibl t t vati 4.00 D fis, ()E COL �\\vvv^^^ of tl sluhapter s a - atl 5 on 26.104.100 (Definitions), Chapter ns)and IMiscellane�0 Supplemental of the A pe) and Chpal Coder d Zon e Districts) N otary Public Y of the Aspen Municipal Cotle; a ntl la a D sitler a �,� , `1 resolution related to the calcul of impa tees — O . ;'� 1 and school lands dedication fees 0 Chaters 26.610 and 26.620 of the Aspen Municipal Code r , respectively For further Information, contact Sara • I Adams at tha Cl 13 0 & p n Community Develop -. Y LINDA M. i an) Department, s a 1 30 S. Gaena� st�Aspeq CO, I 9 ] 9 14z9.zn6, a 1 ; c�>lNING I z ls P lanning and Zoning Commission 1 es - ATTACHMENTS AS APPLICABLE: I 1, - ? - " 'ublishetl in the Aspen Times Weekly on Jun 19, 1, OF co v. '61 L 166 = CBE PUBLICATION - * rttu i o'ntAPH OF THE POSTED NOTICE (SIGN) My Commission Expires 0912912014 * LIST OF THE OWNERS AND GOVERNMENT AGENGIES NOTIED '\ BY MAIL * APPLICANT CERTICICATION OF MINERAL ESTATE OWNERS NOTICE AS REQUIRED BY C.R.S. §24- 65.5 -103.3 I RESOLUTION NO. 14 (SERIES OF 2011) A RESOLUTION OF THE PLANNING AND ZONING COMMISSION OF TILE CITY OF ASPEN, COLORADO, RECOMMENDING AMENDMENTS TO THE FOLLOWING SECTION OF THE CITY OF ASPEN LAND USE CODE: 26.610, IMPACT FEES, AND 26.620, SCHOOL LAND DEDICATION WHEREAS, the Community Development Director of the City of Aspen initiated an application proposing amendments to the Land Use Code, pursuant to Chapter 26.210; and, WHEREAS, the amendments relate to Section 26.610, Impact Fees, and 26.620, School Land Dedication, of Title 26 of the Aspen Municipal Code; and, WHEREAS, pursuant to Section 26.310, applications to amend the text of Title 26 of the Municipal Code shall be reviewed and recommended for approval, approval with conditions, or denial by the Community Development Director and then by the Planning and Zoning Commission at a public hearing. Final action shall be by City Council after reviewing and considering these recommendations; and, WHEREAS, the Community Development Director recommended approval of amendments to the above listed Sections as further described herein; and, WHEREAS, review of amendments to the official Land Use Code by the Planning and Zoning Commission require a public hearing and this application was reviewed at multiple public hearings were the recommendation of the Community Development Director and comments from the public were heard; and, WHEREAS, at regular meeting on July 5 2011, the Planning and Zoning Commission opened a duly noticed public hearing to consider the amendments as described herein and continued the hearing to July 19 2011 for further discussion. The meeting was main continued at the July 19 August 2n and August 23 hearings. At the August 25 2011 meeting, the Planning and Zoning Commission opened a public hearing, took public comment, considered the recommendation from the Community Development Director and recommended City Council approve the Land Use Code amendments by a 4 to 0 (4 - 0) vote, with findings listed hereafter; NOW, THEREFORE, BE IT RESOLVED BY THE PLANNING AND ZONING COMMISSION OF THE CITY OF ASPEN, COLORADO, THAT: Planning and Zoning Commission Resolution No. 14, Series of 2011 Page 1 Section 1: Pursuant to Section 26.310 of the Municipal Code, the Aspen Planning and Zoning Commission hereby recommends City Council amend Section 26.610, Impact Fees, which section defines, describes, authorizes, and regulates the collection of Impact Fees of Parks Development and Transportation Demand Management (TDM)/Air Quality within the City of Aspen to read as follows: Chapter 26.610 IMPACT FEES Sections: 26.610.010 Purpose and intent 26.610.020 Applicability 26.610.030 Exemptions 26.610.040 Definitions 26. 610.050 Imposition, calculation and collection of fees/charges 26.610.060 Impact fee accounts 26.610.070 Use of impact fee proceeds 26.610.080 Credits 26.610.090 Current impact fees ,,,.+ 26.610.100 Waiver of fees 26.610.110 Appeals 26.610.010. Purpose and intent. For residents and visitors, parks and recreation facilities make up a significant part of the community character of the City. As a result of growth, increased pressure is placed on existing parks and recreation facilities necessitating acquisition of new park lands and development of additional recreation facilities in order to maintain the current level of service. In order to maintain the current community standards for acquisition of open space and development of parks and recreation facilities, the City finds it necessary to impose a Park Development impact fee on new development. Transportation demand management and air quality capital facilities ensure the mobility of residents, workers and visitors through multi-modal solutions, as well as clean air for the community. The Aspen Area Community Plan directs the City to maintain traffic levels at or below 1993 levels in order to protect our environment and quality of life, and the City has invested in capital facilities to do so. As new development and growth occur, increased pressure is placed upon our existing facilities, necessitating expansion of these capital facilities to maintain the current level of service. In order to maintain the current community standards for transportation demand management and air quality, the City finds it necessary to impose a Transportation Demand Management/Air Quality impact fee on new development. Planning and Zoning Commission Resolution No. 14, Series of 2011 Page 2 This Chapter is enacted for the purpose of implementing the City's plans for capital facilities by requiring that new development pay for its fair share of such facilities through the imposition of impact fees that will be used to finance, defray or reimburse all or a portion of the costs incurred by the City to serve new development. (Ord. No. 33, 2006, §1) Sec. 26.610.020. Applicability. Unless expressly exempted, the Park Development impact fee and the Transportation Demand Management (TDM)/Air Quality impact fee shall be assessed upon all development within the City which contains new residential floor area or net leasable space. (Ord. No. 33, 2006, §1)• 26.610.030. Exemptions. This Chapter does not apply to: A. Development involving a property listed on the Aspen Inventory of Historic Landmark Sites and Structures. This exemption is solely for an historic structure and its accessory structures. Development on an historic landmark property involving a non- historic or new building shall not be exempt. B. Alteration, expansion or replacement of a structure which does not create additional floor area or net leasable space. (Ord. No. 33, 2006, §1)' 26.610.040. Definitions. When used in this Chapter, the following words, terms and phrases, and their derivations, shall have the meanings ascribed to them in this Section, except where the context clearly indicates a different meaning. Other words and terms shall be defined under the Definition section of this Title: A. Building permit means any City permit that involves increases in floor area, net leasable square footage and/or changes to land use. B. Capital facilities means land, structures or equipment for purposes of parks and recreation, transportation demand management and air quality. Capital facilities also includes design, engineering, inspection, testing, planning, legal review, land acquisition and all other costs associated with the construction or purchase of land, structures or equipment. C. Collection means the point at which the impact fee/charge is actually paid to the City. D. Impact fee means a monetary exaction imposed by the City pursuant to this Chapter as a condition of or in connection with approval of a development project for the purpose of defraying all or some of the City's cost for capital facilities associated with that development project. Planning and Zoning Commission Resolution No. 14, Series of 2011 Page 3 E. Impose means to determine that a particular development project is subject to the .✓ collection of impact fees as a condition of development approval. F. New development or development project means any project undertaken for the purpose of development, including without limitation a project involving the issuance of a permit for construction, reconstruction or change of use but not a project involving the issuance of a permit to operate or to remodel, rehabilitate, reconstruct or improve an existing structure, which does not change the amount of floor area, amount of net leasable space, density or intensity of use. G. Nonresidential development project means all development other than residential development projects. II. Residential development project means any development, inclusive of hotel development, undertaken to create a new dwelling/lodge unit or add additional floor area to an existing dwelling/lodge unit. (Ord. No. 33, 2006, §1)' 26.610.050. Imposition, calculation and collection of fees/charges. A. Imposition. Except as provided in this Chapter and any amendment to this Chapter, the City may impose impact fees as a condition of approval of all new development projects. B. Updated annually. The base amount of each impact fee for each type of development project may be calculated annually and adopted by City Council ordinance. The City may choose to update its fee schedule based on the change in the Engineering News Record inflation index that occurs between annual updates. C. Collection. Impact fees shall be collected by the Building Department at the time and as a condition for issuance of a building permit. (Ord. No. 33, 2006, §1) 26.610.060. Impact fee accounts. A. Individual accounts. The City shall establish an impact fee account for each type of capital facility for which an impact fee is imposed. The impact fees collected shall be deposited in each such account according to type of improvement. The funds of the account shall not be commingled with other funds of the City. B. Interest bearing. Each impact fee account shall be interest - bearing, and the accumulated interest shall become part of the account. (Ord. No. 33, 2006, §1) 26.610.070. Use of impact fee proceeds. Impact fees may be expended only for the type of capital facilities for which they were imposed, calculated and collected and according to procedures established in this Chapter. Planning and Zoning Commission Resolution No. 14, Series of 2011 Page 4 Impact fees be used to the principal, may pay p ' pal, interest and other costs of bonds, notes and other obligations issued or undertaken by or on behalf of the City to finance such improvements. (Ord. No. 33, 2006, §1) See. 26.610.080. Credits. A. A property owner who dedicates land or improvements, agrees to participate in an improvement district or otherwise contributes funds for capital facilities as defined in this Chapter may be eligible for a credit for such contribution against the impact fee paid. 1. The City Council shall determine: a. The value of the developer contribution; b. Whether the contribution meets capital facilities' needs for which the particular impact fee has been imposed; and c. Whether the contribution will substitute or otherwise reduce the need for capital facilities anticipated to be provided with impact fee funds. In no event, however, shall the credit exceed the amount of the applicable impact fee. B. When additional residential floor area, hotel floor area or net leasable space are proposed after the demolition of a dwelling unit, lodge unit, or net leasable space, either individually or in combination, a credit for the existing floor area or net leasable space shall be credited towards the replacement development. A credit may only be allocated towards the development on an individual lot and cannot be assigned towards development on a separate lot. C. Any application for credit must be submitted on forms provided by the City before development project approval. The application shall contain a declaration under oath of those facts which qualify the property owner for the credit, accompanied by the relevant documentary evidence. (Ord. No. 33, 2006, §1)* 26.610.090. Current impact fees. The following impact fees are the result of the "City of Aspen Impact Fee Study and Update of School Lands Dedication" study, which was sponsored by the City of Aspen and completed by BBC Research and Consulting on August 7, 2006. This study is available at the Community Development Department. On August -, 2011, the Impact Fees were amended by the City of Aspen in order to make floor area the calculation variable instead of bedrooms. Impact fees are hereby established as follows: Planning and Zoning Commission Resolution No. 14, Series of 2011 Page 5 Table 610.1, Impact Fee Schedule Parks Development Fee Residential and Hotel (per sq. ft. floor area) $5.45 Nonresidential (per net leasable sq. ft.) 4.10 TDM/Air Quality Fee Residential and Hotel (per sq. & floor area) $0.61 Nonresidential (per net leasable sq. ft) 0.46 Notes: - An Accessory Dwelling Unit or Carriage House, as defined by and meeting the requirements of this Title, shall be calculated as additional floor area of a single - family or duplex dwelling. - The calculation for hotel units shall include only the floor area associated with the individual lodging units. The payment of Parks Development and TDM/Air Quality fees shall not include non -unit space. (Ord. No. 33, 2006, §1)* 26.610.100. Waiver of fees. ANN Whenever the City Council determines that any part of a proposed development constitutes an affordable housing development or an essential public facility, as defined by this Title, and wishes to subsidize the construction, the City Council may exempt that part of the development from the application of the impact fees or may reduce by any amount the fees imposed by this Chapter. As an economic development incentive, a lodging development may apply for a waiver of the impact fees. An application for a waiver must be made and acted upon by the City Council prior to the submission of a building permit application. Retroactive waivers are not permitted. (Ord No. 33, 2006, §1) Sec. 26.610.110. Appeals. Prior to issuance of a building permit, the applicant may challenge the imposition of a fee imposed pursuant to this Chapter by filing with the Community Development Director a written notice of appeal as provided in Section 26.316.030, Appeals procedures, with a full statement of the grounds and an appeal fee as may be fixed from time to time by ordinance by the City Council. The City may continue processing the building permit application. If the building permit is available for issuance by the City and the appeal has not been heard, the building permit may be issued if a bond or other security in an amount equal to the challenged/unpaid portion of the impact fee/charge is provided to the City. The appeal shall be heard by the City Council. a Planning and Zoning Commission ‘010" Resolution No. 14, Series of 2011 Page 6 (Ord. No. 33, 2006, §1) Section 2: Pursuant to Section 26.310 of the Municipal Code, the Aspen Planning and Zoning Commission hereby recommends City Council amend Section 26.620, School Land Dedication, which section defines, describes, authorizes, and regulates the collection of School Land Dedication fee -in -lieu within the City of Aspen to read as follows: Chapter 26.620 SCHOOL LAND DEDICATION Sections: 26.620.010 Purpose and intent 26.620.020 Applicability 26.620.030 Exemptions 26.620.040 Definitions 26.620.050 Imposition, calculation and collection of dedications 26.620.060 Procedures for land dedication and/or cash payment 26.620.070 Current land dedication and cash -in -lieu fees 26.620.080 Appeals 26.620.010. Purpose and intent. The Aspen School District requires land for necessary school functions which may include, but are not limited to, school buildings, support facilities, open space and recreation areas and housing for employees and their immediate families. The purpose of this provision is to ensure that, as development occurs and enrollment in the schools grows, the current level of service provided to students can be maintained. This is accomplished by the adoption of standards for new development to provide land, or cash in lieu thereof, to the City, for use by the Aspen School District. The standards are based on the number of students the development generates and the current level of service standard within the Aspen School District for land area provided per student. (Ord. No. 33, 2006, §2) 26420.020. Applicability. Unless expressly exempted, the school land dedication standard shall be assessed upon all development within the City which contains residential dwelling units or additional floor area. The school land dedication standard shall only be assessed on the first 3,475 sq. ft. of floor area per dwelling unit. (Ord. No. 33, 2006, §2)* Sec. 26.620.030. Exemptions. Any development considered nonresidential development, as defined by this Chapter, is w exempt from the school land dedication. Planning and Zoning Commission Resolution No. 14, Series of 2011 Page 7 0 (Ord. No. 33, 2006, §2) Sec. 26.620.040. Definitions. When used in this Chapter, the following words, terms and phrases, and their derivations, shall have the meanings ascribed to them in this Section, except where the context clearly indicates a different meaning: A. Building permit means any City permit that increases residential floor area and/or changes of land use. B. Collection means the point at which land or a cash payment in lieu is actually transferred or paid to the City. C. Impose means to determine that a particular development project is subject to the collection of a land dedication as a condition of development approval. D. Land dedication means a land exaction imposed by the City pursuant to this Chapter as a condition of or in connection with approval of a development project for the purpose of defraying all or some of the Aspen School Districts cost for capital facilities associated with that development project. E. New development or development project means any project undertaken for the purpose of development, including without limitation, a project involving the issuance of a permit for construction, reconstruction or change of use but not a project involving the issuance of a permit to operate or to remodel, rehabilitate, reconstruct or improve an existing structure, which does not change the amount of floor area. F. Nonresidential development project means all development other than residential development. G. Residential development project means any development undertaken to create a new dwelling unit or to add additional floor area to an existing dwelling unit, excluding hotel units. (Ord. No. 33, 2006, §2) 26.620.050. Imposition, calculation and collection of dedications. A. Imposition. Except as provided in this Chapter and any amendment to this Chapter, the City may impose a school land dedication as a condition of approval of all new development projects. All lands dedicated to the City pursuant to this Section shall be held by the City for the Aspen School District, until such time as they shall be requested by the School District for school purposes. The Aspen School District shall be responsible for maintenance of said lands in a reasonable manner while they are being held by the City. a wry^ Planning and Zoning Commission Resolution No. 14, Series of 2011 Page 8 B. Collection. Land dedications shall be finalized and completed prior to building pemrit application. A cash payment in lieu, however, shall be collected by the Building Department at the time and as a condition for issuance of a building permit. 1. Funds. All funds collected pursuant to this Chapter shall be transferred by the Community Development Director to the Finance Director. All funds so collected shall be properly identified and promptly deposited in a designated account. Funds withdrawn from this fund shall be used exclusively for the purposes specified herein. 2. City shall transfer funds to School District. Funds collected pursuant to this Chapter shall be remitted monthly to the Aspen School District. The Aspen School District shall deposit said funds into an interest - bearing account authorized by law. The Aspen School District shall be the owner of the funds in the account, but the signature of the chief financial officer of the Aspen School District, or his or her designee, and the signature of the Finance Director of the City shall be required for the withdrawal of monies from the account. 3. Administrative Fee. The City shall be entitled to retain two percent (2 %) of the funds collected to compensate it for its administrative expenses of collecting the fees. Said fees shall be deposited in the City's general revenue fund to be expended as the City shall determine in its sole discretion. C. Updated Annually. The land dedication standard imposed may be updated annually and adopted by City Council ordinance. (Ord. No. 33, 2006, §2) 26.620.060. Procedures for land dedication and/or cash payment. A. Land Dedication. Lands to be dedicated to the City to fulfill the standards of this Chapter shall be identified on the subdivision plat and shall be dedicated to the City at the time of final plat approval. 1. Acceptance. Acceptance of the lands to be dedicated shall be at the discretion of the City Council. 2. Criteria. Prior to acceptance, the City shall consider the comments of the Aspen School District to determine whether the lands proposed to be dedicated are of adequate size and can be suitably developed for school purposes or whether the lands have the capability of being sold, with the proceeds being used for school purposes. The City shall also consider the probable impacts on neighboring properties of the development of the lands for school purposes. When the lands proposed to be dedicated are not adequate or suitable for school purposes and cannot feasibly be sold, the City shall require a cash payment in lieu of the land dedication. Planning and Zoning Commission Resolution No. 14, Series of 2011 Page 9 r B. Cash - in - lieu payment. Payment of cash in lieu of a land dedication shall be made to 3 the City prior to and on a proportional basis to the issuance of any building permits for the residential dwelling units. (Ord. No. 33, 2006, §2) 26.620.070. Current land dedication and cash - in - lieu fees. A. The following land dedication is the result of the "City of Aspen Impact Fee Study and Update of School Lands Dedication" study, which was sponsored by the City and completed by BBC Research and Consulting on August 7, 2006. This study is available at the Community Development Department. The land dedication was amended on August —, 2011 to implement .a change that began using floor area as a basis of calculation instead of bedrooms. The current land area required per student equals 896 square feet. Table 620.1 provides the student generation rates as follows: Table 620.1, Student Generation Rates Floor area (sq. ft) Student Generation Rate First 1,200 .00008 per sq. ft. 1,201— 3,425 .00016 per sq. ft. Above 3,425 0 Notes: - The calculation of the School Land Dedication shall be access per dwelling unit. For example, duplex dwelling units do not combine their floor area for one calculation. - An Accessory Dwelling Unit or Carriage House, as defined by and meeting the requirements of this Title, shall be calculated as additional floor area of the single- family or duplex dwelling it is associated with. - When redevelopment of a property adds floor area, the difference between the generation rates of the existing floor area and the proposed floor area shall be the number of students generated. - When a scrape- and - replace project is proposed, the redevelopment shall be credited the floor area from the demolished residential dwelling unit Credit from a demolished dwelling unit cannot be allocated to more than one replacement dwelling unit or to development on a different lot. - For a general example, a 950 square foot residential unit would be required to mitigate for 68 square feet of land (950'.00008)'896. Also see Figure 620.1. Nor a Planning and Zoning Commission Resolution No. 14, Series of 2011 Page 10 r . Figure 620.1, School Land Dedication Calculation Land Area per Student Standard (square feet) multiplied by Total Students Generated (Provided in Table 620.1, Student Generation Rates) equals Total Square Feet to be Dedicated B. Cash payment in lien. An applicant may make a cash payment in lieu of dedicating land to the City, or may make a cash payment in combination with a land dedication, to comply with the standards of this Chapter. Because of the extraordinary cost of land within the City, the School District and the City agreed to require payment of a cash -in- lieu amount which is less than the full market value of the land area. The formula to determine the amount of cash -in -lieu payment for each residential dwelling unit is as follows: Figure 620.2, Cash -in -Lieu Formula Total Square Feet to be Dedicated multiplied by Appraised Per - Square -Foot Value of Land Being Developed multiplied by Percentage of Fee to be Charged (0.33) equals Cash -in-Lieu Payment Planning and Zoning Commission Resolution No. 14, Series of 2011 Page 11 ■ r -1 Ilk Figure 620.3, Cash Payment in Lieu Example The following example provides a development scenario to display how the fee is calculated. The scenario includes a new 3,200 sq. ft. (floor area) single - family residential home on a 6,000 sq. R lot with an actual lot value of $2,400,000. This lot value would mean a per sq. ft. lot value of $400. Floor Area Students Generated 3,200 (first 1,200 sq. it x .00008) .096 (remaining 2,000 sq. ft. x .00016) .32 Total Student Generation Rate .416 Land Dedication Calculation Land Area per Student Standard (sq. R) 896 multiplied by Total Students Generated (from above calculation) .416 equals ^ w Total Square Feet to be Dedicated 372.74 When calculating a cash payment in lieu of a land dedication (assuming a .total land value of $2,400,000 for a 6,000 - square-foot lot containing the dwelling unit), the following calculation would be used to determine the cash payment in lieu: Market Value of Land per sq. ft. $400 per sq. ft. multiplied by Total Square Feet to be Dedicated 372.74 multiplied by Percentage of Fee to be Charged 0.33 equals Cash Payment in Lieu $49,201.68 1. Current market value. Current market value means the value of the land at the time of the cash -in -lieu payment, including site improvements such as streets and Planning and Zoning Commission "d Resolution No. 14, Series of 2011 Page 12 r... utilities, but excluding the value of residential dwelling units and other structures on the property. 2. Substantiation. Market value may be substantiated by a documented purchase price (if an arms-length transaction no more than two [2] years old) or other mutually agreed -upon recognized means. 3. Appraisal. In the event the developer and the City fail to agree on market value, such value shall be established by a qualified real estate appraiser acceptable to both parties. The developer shall pay for the appraisal. C. Mixed Use Development. Properties containing mixed use development shall only pay the School Land Dedication fee -in -lieu for the floor area associated with the residential component of the development. Non -unit space shall not contribute to the payment of School Land Dedication. 26.620.080. Appeals. A. Prior to issuance of a building permit, the applicant may challenge the imposition of a land dedication imposed pursuant to this Chapter by filing with the Community Development Director a written notice of appeal as provided in Section 26.316.030, Appeals procedures, with a full statement of the grounds and an appeal fee as may be fixed from time to time by ordinance by the City Council. The City may continue processing the building permit application. If the building permit is available for issuance by the City and the appeal has not been heard, the building permit may be issued if a bond or other security in an amount equal to the challenged/unpaid portion of the land dedication is provided to the City. The appeal shall be heard by the City Council. (Ord. No. 33, 2006, §2) Section 3: A public hearing on this Resolution was held on the 25 day of August, 2011, at 4:30 p.m. in the Sister Cities Room, Aspen City Hall, Aspen Colorado, and where more than fifteen (15) days prior a public notice of the same was published in a newspaper of general circulation within the City of Aspen. {Signatures on following page) Planning and Zoning Commission Resolution No. 14, Series of 2011 Page 13 r FINALLY, adopted, passed and approved this 9. day of �^�l '' , 2011. Attest QQ e l/44( K Me Lothian, Deputy City Clerk Stan Gibbs, Chair Approved as to form: As Asi ity Attorney —� Planning and Zoning Commission Resolution No. 14, Series of 2011 Page 14 3 VG P1 a MEMORANDUM TO: Planning and Zoning Commission THRU: Jennifer Phelan, Community Development Deputy Director FROM: Drew Alexander, Planner p RE: ode Amendments - I mpact Fees (26.610) and School Land Dedication (26.620); Resolution No. -, Series of 2011 A d us-1-- 2 3 , a O /) MEETING DATE: August 16 2011 (continued from August 2 SUMMARY: The current City of Aspen Land Use Code imposes a number of impact fees and land dedication fees -in -lieu upon residential development to ensure that "development pay all or part of its way." These exactions are currently calculated and based upon the number of bedrooms proposed for the development. Staff is preparing amendments to the Land Use Code to eliminate the "bedroom game" and maintain a higher level of service. Amending the calculation methodology of the impact fees and land dedication fee -in -lieu should greatly simplify the zoning review process. The affected fees include Parks Development Impact Fee, Transportation Demand Management (TDM) /Air Quality Impact Fee, and School Land Dedication. These amendments reflect Land Use Code Chapters 26.610, Impact Fees and 26.620, School Land Dedication. The Impact Fee and School Land Dedication language was last amended in 2006 by Community Development Staff and BBC Research and Consulting out of Denver. It was during this time that the formula for using bedrooms for calculation was arrived at. No amendments have taken place since 2006. REVIEW PROCEDURE: Text Amendment. At a duly noticed public hearing, the Commission shall recommend by Resolution the City Council to approve, approve with conditions, or deny the application. BACKGROUND: For residential development, the impact fees and land dedication fees -in -lieu are calculated based upon the number of bedrooms in a residence. The Land Use Code has a definition of "bedroom" that the zoning officer uses when reviewing plans: Bedroom: A portion of a dwelling unit intended to be used for sleeping purposes, which may contain closets, and may have access to a bathroom. This definition is not precise and lends itself to varying interpretation. What frequently happens (because the fees can be large) is that architects and builders will begin the Page 1 of 4 P2 "bedroom game" with the zoning officer to try and lessen the fee amount. For example, a ..h, room with a closest may be labeled as a "study" on a plan set to avoid fees, but the zoning .: officer will calculate the room as a bedroom because it meets the definition in the code. Then, the architect will disagree with the decision and make small amendments. These resubmission persist until the zoning officer determines the room is no longer a bedroom. These changes usually look like doors being removed, removal of closets, or eliminated bathrooms or access to bathrooms. In an effort to avoid the bedroom debate altogether; staff has prepared a new draft of the Impact Fees and School Lands Dedication language that uses floor area as the calculation variable for fees. Staff created a report from approximately 350 building permits dating back to 2004 and examined two categories: floor area and number of bedrooms. RRC Associates in Boulder, CO are acting as a consultant on the project and confirming any data that staff is using for statistical validity. RRC Associates specialize in research and analysis with an emphasis in land use planning. Converting the City's impact fee system to a floor area basis will simplify zoning review, eliminate time wasted debating about the purpose/use of each room, impose fees more predictably, and make the impact fee estimates more precise for prospective applicants. Using floor area rather than the number of bedrooms should result in a system that is more accurate. As stated, the "bedroom game" encourages building permits to have awkward amendments and less than practical finished layouts. Floor area provides a simple metric that will accurately assess fees based on the size of home. These amendments will only alter the method of calculation, not the pre - determined fee schedules that have been in use since 2006. NEW CALCULATIONS: For TDM/Air Quality and Parks impact fees, staff has taken the total floor area from the building permit data and divided the number by the total fees paid for those permits. Based on the sample size, staff only used dwelling units with 6 bedrooms or less (there were only very few 7+ bedroom properties to sample from). The total floor area gathered for these permits was 1,022,427 square feet. The total amount of beds was 1,255. 1,255 bedrooms would have paid $5,558,395 for Parks Development. $5,558,395 divided by the floor area amount (1,022,427) equals approximately $5.45 per square foot. The same math was applied for the TDM/Air Quality Fee. For School Lands Dedication, staff had to identify the average size of a four bedroom home (being that was the basis of the previous calculation). After analyzing the date, the average size of a four bedroom home was identified as 3,475 square feet of floor area. Staff then took this number and divided the cap on student generation (.452) by it. This resulted in a per square foot student generation rate of .00013 students. Additionally, to address the type of increasing scale that is present in the current Code, staff identified a generation rate for the average sized two- bedroom home. Applying the same math as explained for the 4 bedroom mitigation rate, .00008 was identifying as the generation rate. Three and four Page 2 of 4 P3 bedroom homes were adjusted accordingly for this scale (.00016 instead of .00013). Please see Table 2 below. Throughout this drafting process, staff has been in contact with the Aspen School District, the Transportation Dept., Parks Dept., and Environmental Health (groups that are impacted or receive funds from these fees). After this hearing, staff will continue this outreach and inform these entities of the Planning and Zoning Commission's recommendation. The new fees would include the following for residential development: Table 1: Parks and TDM/Air Quality for residential Parks Development $5.45 per sq. ft of floor area TDM/Air Quality $0.61 per sq. ft of floor area Note: • Hotel development is calculated just as residential floor area. However, non -unit space will not be contributed to these units during the calculation for fees. • Net leasable square foot is already calculated per square foot and will remain the same. Table 2: School Land Dedication Floor area (sq. ft.) Student Generation Rate First 1,200 .00008 per sq. ft 1,201 — 3,425 .00016 per sq. ft. Above 3,425 0 Notes: - An Accessory Dwelling Unit or Carriage House, as defined by and meeting the requirements of this Title, shall be calculated as additional floor area of a single - family or duplex dwelling. - When redevelopment of a property adds floor area, the difference between the generation rates of the existing floor area and the proposed floor area shall be the number of students generated. - For example, a 950 square foot residential unit would be required to mitigate for 68 square feet of land (950 *.00008) *896 = 68). Also see Figure 620.1. RECOMMENDATION: Staff recommends the Planning and Zoning Commission recommend approval of the City - initiated amendments to Impact Fees and School Land Dedication as described in Resolution Series of 2011. Page 3 of 4 0 f P4 RECOMMENDED MOTION: "I move to approve Resolution Series of 2011 recommending approval of the amendments to Impact Fees and School Land Dedication." Attachments: Resolution No. , Series of 2011 Exhibit A: Code language with mark -ups Exhibit B: PowerPoint handout 3 0 Page 4 of 4 P 5 RESOLUTION NO. _ (SERIES OF 2011) A RESOLUTION OF THE PLANNING AND ZONING COMMISSION OF THE CITY OF ASPEN, COLORADO, RECOMMENDING AMENDMENTS TO THE FOLLOWING SECTION OF THE CITY OF ASPEN LAND USE CODE: 26.610, IMPACT FEES, AND 26.620, SCHOOL LAND DEDICATION WHEREAS, the Community Development Director of the City of Aspen initiated an application proposing amendments to the Land Use Code, pursuant to Chapter 26.210; and, WHEREAS, the amendments relate to Section 26.610, Impact Fees, and 26.620, School Land Dedication, of Title 26 of the Aspen Municipal Code; and, WHEREAS, pursuant to Section 26.310, applications to amend the text of Title 26 of the Municipal Code shall be reviewed and recommended for approval, approval with conditions, or denial by the Community Development Director and then by the Planning and Zoning Commission at a public hearing. Final action shall be by City Council after reviewing and considering these recommendations; and, WHEREAS, the Community Development Director recommended approval of amendments to the above listed Sections as further described herein; and, WHEREAS, review of amendments to the official Land Use Code by the Planning and Zoning Commission require a public hearing and this application was reviewed at multiple public hearings were the recommendation of the Community Development Director and comments from the public were heard; and, WHEREAS, at regular meeting on July 5 2011, the Planning and Zoning Commission opened a duly noticed public hearing to consider the amendments as described herein and continued the hearing to July 19 2011 for further discussion. At the July 19 2011 meeting, the Planning and Zoning Commission opened a public hearing, took public comment, considered the recommendation from the Community Development Director and recommended City Council approve the Land Use Code amendments by a _ to - ( - ) vote, with findings and conditions listed hereafter; NOW, THEREFORE, BE IT RESOLVED BY THE PLANNING AND ZONING COMMISSION OF THE CITY OF ASPEN, COLORADO, THAT: Planning and Zoning Commission Resolution No. , Series of 2011 Page 1 P 6 Section 1: ANN Pursuant to Section 26.310 of the Municipal Code, the Aspen Planning and Zoning Commission hereby recommends City Council amend Section 26.610, Impact Fees, which section defines, describes, authorizes, and regulates the collection of Impact Fees of Parks Development and Transportation Demand Management (TDM) /Air Quality within the City of Aspen to read as follows: Chapter 26.610 IMPACT FEES Sections: 26.610.010 Purpose and intent 26.610.020 Applicability 26.610.030 Exemptions 26.610.040 Definitions 26.610.050 Imposition, calculation and collection of fees /charges 26.610.060 Impact fee accounts 26.610.070 Use of impact fee proceeds 26.610.080 Credits 26.610.090 Current impact fees 26.610.100 Waiver of fees 26.610.110 Appeals 3 26.610.010. Purpose and intent. For residents and visitors, parks and recreation facilities make up a significant part of the community character of the City. As a result of growth, increased pressure is placed on existing parks and recreation facilities necessitating acquisition of new park lands and development of additional recreation facilities in order to maintain the current level of service. In order to maintain the current community standards for acquisition of open space and development of parks and recreation facilities, the City fmds it necessary to impose a Park Development impact fee on new development. Transportation demand management and air quality capital facilities ensure the mobility of residents, workers and visitors through multi -modal solutions, as well as clean air for the community. The Aspen Area Community Plan directs the City to maintain traffic levels at or below 1993 levels in order to protect our environment and quality of life, and the City has invested in capital facilities to do so. As new development and growth occur, increased pressure is placed upon our existing facilities, necessitating expansion of these capital facilities to maintain the current level of service. In order to maintain the current community standards for transportation demand management and air quality, the City fmds it necessary to impose a Transportation Demand Management/Air Quality impact fee on new development. 0 Planning and Zoning Commission Resolution No. , Series of 2011 Page 2 P7 This Chapter is enacted for the purpose of implementing the City's plans for capital facilities v,e by requiring that new development pay for its fair share of such facilities through the imposition of impact fees that will be used to finance, defray or reimburse all or a portion of the costs incurred by the City to serve new development. (Ord. No. 33, 2006, §1) Sec. 26.610.020. Applicability. Unless expressly exempted, the Park Development impact fee and the Transportation Demand Management (TDM) /Air Quality impact fee shall be assessed upon all development within the City which contains new residential floor area or net Leasable space. (Ord. No. 33, 2006, §1)* 26.610.030. Exemptions. This Chapter does not apply to: A. Development involving a property listed on the Aspen Inventory of Historic Landmark Sites and Structures. This exemption is solely for an historic structure and its accessory structures. Development on an historic landmark property involving a non- historic or new building shall not be exempt. B. Alteration, expansion or replacement of a structure which does not create additional floor area or net leasable space. (Ord. No. 33, 2006, §1)* 26.610.040. Definitions. When used in this Chapter, the following words, terms and phrases, and their derivations, shall have the meanings ascribed to them in this Section, except where the context clearly indicates a different meaning. Other words and terms shall be defined under the Definition section of this Title: A. Building permit means any City permit that involves increases in floor area, net leasable square footage and/or changes to land use. B. Capital facilities means land, structures or equipment for purposes of parks and recreation, transportation demand management and air quality. Capital facilities also includes design, engineering, inspection, testing, planning, legal review, land acquisition and all other costs associated with the construction or purchase of land, structures or equipment. C. Collection means the point at which the impact fee /charge is actually paid to the City. D. Impact fee means a monetary exaction imposed by the City pursuant to this Chapter as a condition of or in connection with approval of a development project for the purpose of defraying all or some of the City's cost for capital facilities associated with that development project. Planning and Zoning Commission Resolution No. , Series of 2011 Page 3 n P8 E. Impose means to determine that a particular development project is subject to the collection of impact fees as a condition of development approval. F. New development or development project means any project undertaken for the purpose of development, including without limitation a project involving the issuance of a permit for construction, reconstruction or change of use but not a project involving the issuance of a permit to operate or to remodel, rehabilitate, reconstruct or improve an existing structure, which does not change the amount of floor area, amount of net leasable space, density or intensity of use. G. Nonresidential development project means all development other than residential development projects. H. Residential development project means any development, inclusive of hotel development, undertaken to create a new dwelling/lodge unit or add additional floor area to an existing dwelling/lodge unit. (Ord. No. 33, 2006, §1)* 26.610.050. Imposition, calculation and collection of fees /charges. A. Imposition. Except as provided in this Chapter and any amendment to this Chapter, the City may impose impact fees as a condition of approval of all new development projects. B. Updated annually. The base amount of each impact fee for each type of development project may be calculated annually and adopted by City Council ordinance. The City may choose to update its fee schedule based on the change in the Engineering News Record inflation index that occurs between annual updates. C. Collection. Impact fees shall be collected by the Building Department at the time and as a condition for issuance of a building permit. (Ord. No. 33, 2006, §1) 26.610.060. Impact fee accounts. A. Individual accounts. The City shall establish an impact fee account for each type of capital facility for which an impact fee is imposed. The impact fees collected shall be deposited in each such account according to type of improvement. The funds of the account shall not be commingled with other funds of the City. B. Interest - bearing. Each impact fee account shall be interest- bearing, and the accumulated interest shall become part of the account. (Ord. No. 33, 2006, §1) 26.610.070. Use of impact fee proceeds. Impact fees may be expended only for the type of capital facilities for which they were AIN imposed, calculated and collected and according to procedures established in this Chapter. v' Planning and Zoning Commission Resolution No. , Series of 2011 Page 4 P9 - Impact fees may be used to pay the principal, interest and other costs of bonds, notes and +w other obligations issued or undertaken by or on behalf of the City to finance such improvements. (Ord. No. 33, 2006, §1) Sec. 26.610.080. Credits. A. A property owner who dedicates land or improvements, agrees to participate in an improvement district or otherwise contributes funds for capital facilities as defined in this Chapter may be eligible for a credit for such contribution against the impact fee paid. 1. The City Council shall determine: a. The value of the developer contribution; b. Whether the contribution meets capital facilities' needs for which the particular impact fee has been imposed; and c. Whether the contribution will substitute or otherwise reduce the need for capital facilities anticipated to be provided with impact fee funds. In no event, however, shall the credit exceed the amount of the applicable impact fee. B. When additional residential floor area, hotel floor area or net leasable space are proposed after the demolition of a dwelling unit, lodge unit, or net leasable space, either individually or in combination, a credit for the existing floor area or net leasable space shall be credited towards the replacement development. A credit may only be allocated towards the development on an individual lot and cannot be assigned towards development on a separate lot. C. Any application for credit must be submitted on forms provided by the City before development project approval. The application shall contain a declaration under oath of those facts which qualify the property owner for the credit, accompanied by the relevant documentary evidence. (Ord. No. 33, 2006, §1)* • 26.610.090. Current impact fees. The following impact fees are the result of the "City of Aspen Impact Fee Study and Update of School Lands Dedication" study, which was sponsored by the City of Aspen and completed by BBC Research and Consulting on August 7, 2006. This study is available at the Community Development Department. On August —, 2011, the Impact Fees were amended by the City of Aspen in order to make floor area the calculation variable instead of bedrooms. Impact fees are hereby established as follows: Planning and Zoning Commission Resolution No. _, Series of 2011 Page 5 P10 Table 610.1, Impact Fee Schedule Parks Development Fee Residential and Hotel (per sq. ft. floor area) $5.45 Nonresidential (per net leasable sq. ft.) 4.10 TDM/Air Quality Fee Residential and Hotel (per sq. ft. floor area) $0.61 Nonresidential (per net leasable sq. ft.) 0.46 Notes: - An Accessory Dwelling Unit or Carriage House, as defined by and meeting the requirements of this Title, shall be calculated as additional floor area of a single - family or duplex dwelling. - The calculation for hotel units shall include only the floor area associated with the individual lodging units. The payment of Parks Development and TDM/Air Quality fees shall not include non -unit space. (Ord. No. 33, 2006, §1)* 26.610.100. Waiver of fees. 3 Whenever the City Council determines that any part of a proposed development constitutes an affordable housing development or an essential public facility, as defined by this Title, and wishes to subsidize the construction, the City Council may exempt that part of the development from the application of the impact fees or may reduce by any amount the fees imposed by this Chapter. As an economic development incentive, a lodging development may apply for a waiver of the impact fees. An application for a waiver must be made and acted upon by the City Council prior to the submission of a building permit application. Retroactive waivers are not permitted. (Ord. No. 33, 2006, §1) Sec. 26.610.110. Appeals. Prior to issuance of a building permit, the applicant may challenge the imposition of a fee imposed pursuant to this Chapter by filing with the Community Development Director a written notice of appeal as provided in Section 26.316.030, Appeals procedures, with a full statement of the grounds and an appeal fee as may be fixed from time to time by ordinance by the City Council. The City may continue processing the building permit application. If the building permit is available for issuance by the City and the appeal has not been heard, the building permit may be issued if a bond or other security in an amount equal to the challenged/unpaid portion of the impact fee /charge is provided to the City. The appeal shall be heard by the City Council. Planning and Zoning Commission Resolution No. , Series of 2011 Page 6 J P11 (Ord. No. 33, 2006, §1) Section 2: Pursuant to Section 26.310 of the Municipal Code, the Aspen Planning and Zoning Commission hereby recommends City Council amend Section 26.620, School Land Dedication, which section defines, describes, authorizes, and regulates the collection of School Land Dedication fee -in -lieu within the City of Aspen to read as follows: Chapter 26.620 SCHOOL LAND DEDICATION Sections: 26.620.010 Purpose and intent 26.620.020 Applicability 26.620.030 Exemptions 26.620.040 Definitions 26.620.050 Imposition, calculation and collection of dedications 26.620.060 Procedures for land dedication and/or cash payment 26.620.070 Current land dedication and cash -in -lieu fees 26.620.080 Appeals 26.620.010. Purpose and intent. The Aspen School District requires land for necessary school functions which may include, but are not limited to, school buildings, support facilities, open space and recreation areas and housing for employees and their immediate families. The purpose of this provision is to ensure that, as development occurs and enrollment in the schools grows, the current level of service provided to students can be maintained. This is accomplished by the adoption of standards for new development to provide land, or cash in lieu thereof, to the City, for use by the Aspen School District. The standards are based on the number of students the development generates and the current level of service standard within the Aspen School District for land area provided per student. (Ord. No. 33, 2006, §2) 26.620.020. Applicability. Unless expressly exempted, the school land dedication standard shall be assessed upon all development within the City which contains residential dwelling units or additional floor area. The school land dedication standard shall only be assessed on the first 3,475 sq. ft. of floor area per dwelling unit. (Ord. No. 33, 2006, §2)* Sec. 26.620.030. Exemptions. Any development considered nonresidential development, as defined by this Chapter, is <., exempt from the school land dedication. Planning and Zoning Commission Resolution No. -, Series of 2011 Page 7 c ft. P12 ' (Ord. No. 33, 2006, §2) Sec. 26.620.040. Definitions. When used in this Chapter, the following words, terms and phrases, and their derivations, shall have the meanings ascribed to them in this Section, except where the context clearly indicates a different meaning: A. Building permit means any City permit that increases residential floor area and/or changes of land use. B. Collection means the point at which land or a cash payment in lieu is actually transferred or paid to the City. C. Impose means to determine that a particular development project is subject to the collection of a land dedication as a condition of development approval. D. Land dedication means a land exaction imposed by the City pursuant to this Chapter as a condition of or in connection with approval of a development project for the purpose of defraying all or some of the Aspen School District's cost for capital facilities associated with that development project. E. New development or development project means any project undertaken for the purpose of development, including without limitation, a project involving the issuance of a permit for construction, reconstruction or change of use but not a project involving the issuance of a permit to operate or to remodel, rehabilitate, reconstruct or improve an existing structure, which does not change the amount of floor area. F. Nonresidential development project means all development other than residential development. G. Residential development project means any development undertaken to create a new dwelling unit or to add additional . floor area to an existing dwelling unit, excluding hotel units. (Ord. No. 33, 2006, §2) 26.620.050. Imposition, calculation and collection of dedications. A. Imposition. Except as provided in this Chapter and any amendment to this Chapter, the City may impose a school land dedication as a condition of approval of all new development projects. All lands dedicated to the City pursuant to this Section shall be held by the City for the Aspen School District, until such time as they shall be requested by the School District for school purposes. The Aspen School District shall be responsible for maintenance of said lands in a reasonable manner while they are being held by the City. 0 Planning and Zoning Commission Resolution No. , Series of 2011 Page 8 1 r P 13 B. Collection. Land dedications shall be finalized and completed prior to building permit application. A cash payment in lieu, however, shall be collected by the Building Department at the time and as a condition for issuance of a building permit. 1. Funds. All funds collected pursuant to this Chapter shall be transferred by the Community Development Director to the Finance Director. All funds so collected shall be properly identified and promptly deposited in a designated account. Funds withdrawn from this fund shall be used exclusively for the purposes specified herein. 2. City shall transfer funds to School District. Funds collected pursuant to this Chapter shall be remitted monthly to the Aspen School District. The Aspen School District shall deposit said funds into an interest - bearing account authorized by law. The Aspen School District shall be the owner of the funds in the account, but the signature of the chief financial officer of the Aspen School District, or his or her designee, and the signature of the Finance Director of the City shall be required for the withdrawal of monies from the account. 3. Administrative Fee. The City shall be entitled to retain two percent (2 %) of the funds collected to compensate it for its administrative expenses of collecting the fees. Said fees shall be deposited in the City's general revenue fund to be expended as the City shall determine in its sole discretion. C. Updated Annually. The land dedication standard imposed may be updated annually and adopted by City Council ordinance. (Ord. No. 33, 2006, §2) 26.620.060. Procedures for land dedication and/or cash payment. A. Land Dedication. Lands to be dedicated to the City to fulfill the standards of this Chapter shall be identified on the subdivision plat and shall be dedicated to the City at the time of final plat approval. 1. Acceptance. Acceptance of the lands to be dedicated shall be at the discretion of the City Council. 2. Criteria. Prior to acceptance, the City shall consider the comments of the Aspen School District to determine whether the lands proposed to be dedicated are of adequate size and can be suitably developed for school purposes or whether the lands have the capability of being sold, with the proceeds being used for school purposes. The City shall also consider the probable impacts on neighboring properties of the development of the lands for school purposes. When the lands proposed to be dedicated are not adequate or suitable for school purposes and cannot feasibly be sold, the City shall require a cash payment in lieu of the land dedication. Planning and Zoning Commission Resolution No. , Series of 2011 Page 9 A \ .0.1% ) P14 B. Cash - in - lieu payment. Payment of cash in lieu of a land dedication shall be made to the City prior to and on a proportional basis to the issuance of any building permits for the residential dwelling units. (Ord. No. 33, 2006, §2) 26.620.070. Current land dedication and cash - in - lieu fees. A. The following land dedication is the result of the "City of Aspen Impact Fee Study and Update of School Lands Dedication" study, which was sponsored by the City and completed by BBC Research and Consulting on August 7, 2006. This study is available at the Community Development Department. The land dedication was amended on August — 2011 to implement a change that began using floor area as a basis of calculation instead of bedrooms. The current land area required per student equals 896 square feet. Table 620.1 provides the student generation rates as follows: Table 620.1, Student Generation Rates Floor area (sq. ft.) Student Generation Rate First 1,200 .00008 per sq. ft. 1,201– 3,425 .00016 per sq. ft. Above 3,425 0 Notes: - The calculation of the School Land Dedication shall be access per dwelling unit. For example, duplex dwelling units do not combine their floor area for one calculation. - An Accessory Dwelling Unit or Carriage House, as defined by and meeting the requirements of this Title, shall be calculated as additional floor area of the single - family or duplex dwelling it is associated with. - When redevelopment of a property adds floor area, the difference between the generation rates of the existing floor area and the proposed floor area shall be the number of students generated. - When a scrape- and - replace project is proposed, the redevelopment shall be credited the floor area from the demolished residential dwelling unit. Credit from a demolished dwelling unit cannot be allocated to more than one replacement dwelling unit or to development on a different lot. - For a general example, a 950 square foot residential unit would be required to mitigate for 68 square feet of land (950 *.00008) *896. Also see Figure 620.1. 3 Planning and Zoning Commission Resolution No. , Series of 2011 Page 10 P15 Figure 620.1, School Land Dedication Calculation Land Area per Student Standard (square feet) multiplied by Total Students Generated (Provided in Table 620.1, Student Generation Rates) equals Total Square Feet to be Dedicated B. Cash payment in lieu. An applicant may make a cash payment in lieu of dedicating land to the City, or may make a cash payment in combination with a land dedication, to comply with the standards of this Chapter. Because of the extraordinary cost of land within the City, the School District and the City agreed to require payment of a cash -in- lieu amount which is less than the full market value of the land area. The formula to determine the amount of cash -in -lieu payment for each residential dwelling unit is as follows: Figure 620.2, Cash -in -Lieu Formula Total Square Feet to be Dedicated multiplied by Appraised Per -Square -Foot Value of Land Being Developed multiplied by Percentage of Fee to be Charged (0.33) equals Cash - in - Lieu Payment Planning and Zoning Commission Resolution No. , Series of 2011 Page 11 P1 6 AIN Figure 620.3, Cash Payment in Lieu Example The following example provides a development scenario to display how the fee is calculated. The scenario includes a new 3,200 sq. ft. (floor area) single - family residential home on a 6,000 sq. ft. lot with an actual lot value of $2,400,000. This lot value would mean a per sq. ft. lot value of $400. Floor Area Students Generated 3,200 (first 1,200 sq. ft. x .00008) .096 (remaining 2,000 sq. ft. x .00016) .32 Total Student Generation Rate .416 Land Dedication Calculation Land Area per Student Standard (sq. ft.) 896 multiplied by Total Students Generated (from above calculation) .416 equals , V Total Square Feet to be Dedicated 372.74 When calculating a cash payment in lieu of a land dedication (assuming a total land value of $2,400,000 for a 6,000 - square -foot lot containing the dwelling unit), the following calculation would be used to determine the cash payment in lieu: Market Value of Land per sq. ft. $400 per sq. ft. multiplied by Total Square Feet to be Dedicated 372.74 multiplied by Percentage of Fee to be Charged 0.33 equals Cash Payment in Lieu $49,201.68 1. Current market value. Current market value means the value of the land at the time of the cash -in -lieu payment, including site improvements such as streets and Planning and Zoning Commission Resolution No. , Series of 2011 Page 12 s P17 utilities, but excluding the value of residential dwelling units and other structures on the property. 2. Substantiation. Market value may be substantiated by a documented purchase price (if an arms - length transaction no more than two [2] years old) or other mutually agreed -upon recognized means. 3. Appraisal. In the event the developer and the City fail to agree on market value, such value shall be established by a qualified real estate appraiser acceptable to both parties. The developer shall pay for the appraisal. C. Mixed Use Development. Properties containing mixed use development shall only pay the School Land Dedication fee -in -lieu for the floor area associated with the residential component of the development. Non -unit space shall not contribute to the payment of School Land Dedication. 26.620.080. Appeals. A. Prior to issuance of a building permit, the applicant may challenge the imposition of a land dedication imposed pursuant to this Chapter by filing with the Community Development Director a written notice of appeal as provided in Section 26.316.030, Appeals procedures, with a full statement of the grounds and an appeal fee as may be fixed from time to time by ordinance by the City Council. The City may continue processing the building permit application. If the building permit is available for issuance ` . y by the City and the appeal has not been heard, the building permit may be issued if a bond or other security in an amount equal to the challenged/unpaid portion of the land dedication is provided to the City. The appeal shall be heard by the City Council. (Ord. No. 33, 2006, §2) Section 3: A public hearing on this Resolution was held on the 16 day of August, 2011, at 4:30 p.m. in the Sister Cities Room, Aspen City Hall, Aspen Colorado, and where more than fifteen (15) days prior a public notice of the same was published in a newspaper of general circulation within the City of Aspen. {Signatures on following page} %vor Planning and Zoning Commission Resolution No. , Series of 2011 Page 13 J � P18 FINALLY, adopted, passed and approved this day of , 2011. �w� Attest: � Jackie Lothian, Deputy City Clerk Stan Gibbs, Chair Approved as to form: City Attorney 3 3 Planning and Zoning Commission Resolution No. , Series of 2011 Page 14 ")C 141 aiT A _----- P 19 Chapter 26.610 IMPACT FEES Sections: 26.610.010 Purpose and intent 26.610.020 Applicability 26.610.030 Exemptions 26.610.040 Definitions 26.610.050 Imposition, calculation and collection of fees /charges 26.610.060 Impact fee accounts 26.610.070 Use of impact fee proceeds 26.610.080 Credits 26.610.090 Current impact fees 26.610.100 Waiver of fees 26.610.110 Appeals 26.610.010. Purpose and intent. For residents and visitors, parks and recreation facilities make up a significant part of the community character of the City. As a result of growth, increased pressure is placed on existing parks and recreation facilities necessitating acquisition of new park lands and development of additional recreation facilities in order to maintain the current level of service. In order to maintain the current Q community standards for acquisition of open space and development of parks and recreation facilities, the City finds it necessary to impose a Park Development impact fee on new development. Transportation demand management and air quality capital facilities ensure the mobility of residents, workers and visitors through multi -modal solutions, as well as clean air for the community. The Aspen Area Community Plan directs the City to maintain traffic levels at or below 1993 levels in order to protect our environment and quality of life, and the City has invested in capital facilities to do so. As new development and growth occur, increased pressure is placed upon our existing facilities, necessitating expansion of these capital facilities to maintain the current level of service. In order to maintain the current community standards for transportation demand management and air quality, the City finds it necessary to impose a Transportation Demand Management/Air Quality impact fee on new development. This Chapter is enacted for the purpose of implementing the City's plans for capital facilities by requiring that new development pay for its fair share of such facilities through the imposition of impact fees that will be used to finance, defray or reimburse all or a portion of the costs incurred by the City to serve new development. (Ord. No. 33, 2006, §1) I Sec. 26.610.020. Applicability. Unless expressly exempted, the Park Development impact fee and the Transportation Demand Management (TDM) /Air Quality impact fee shall be assessed upon all development within the City which contains new residential unit) floor area or net leasable space. (Ord. No. 33, 2006, §1)* P20 26.610.030. Exemptions. This Chapter does not apply to: A. Development involving a property listed on the Aspen Inventory of Historic Landmark Sites and Structures. This exemption is solely for an historic structure and its accessory structures. Development on an historic landmark property involving a non - historic or new building shall not be exempt. B. Alteration, expansion or replacement of a structure which does not create additional bedrooms floor area or net leasable space. (Ord. No. 33, 2006, §1)* 26.610.040. Definitions. When used in this Chapter, the following words, terms and phrases, and their derivations, shall have the meanings ascribed to them in this Section, except where the context clearly indicates a different meaning. Other words and terms shall be defined under the Definition section of this Title: A. Building permit means any City permit that involves increases in the nu ber of bedrooms floor area, net leasable square footage and/or changes to land use. B. Capital facilities means land, structures or equipment for purposes of parks and recreation, transportation demand management and air quality. Capital facilities also includes design, engineering, inspection, testing, planning, legal review, land acquisition and all other costs associated with the construction or purchase of land, structures or equipment. C. Collection means the point at which the impact fee /charge is actually paid to the City. D. Impact fee means a monetary exaction imposed by the City pursuant to this Chapter as a condition of or in connection with approval of a development project for the purpose of defraying all or some of the City's cost for capital facilities associated with that development proj ect. E. Impose means to determine that a particular development project is subject to the collection of impact fees as a condition of development approval. F. New development or development project means any project undertaken for the purpose of development, including without limitation a project involving the issuance of a permit for construction, reconstruction or change of use but not a project involving the issuance of a permit to operate or to remodel, rehabilitate, reconstruct or improve an existing structure, which does not change the number amount of bedroems floor area, amount of net leasable space, density or intensity of use. G. Nonresidential development project means all development other than residential development projects. H. Residential development project means any development, inclusive of hotel development, undertaken to create a new dwelling/lodge unit or add one (1) or more additional bedrooms floor area to an existing dwelling/lodge unit. 2 P21 (Ord. No. 33, 2006, §1)* 26.610.050. Imposition, calculation and collection of fees /charges. A. Imposition. Except as provided in this Chapter and any amendment to this Chapter, the City may impose impact fees as a condition of approval of all new development projects. B. Updated annually. The base amount of each impact fee for each type of development project may be calculated annually and adopted by City Council ordinance. The City may choose to update its fee schedule based on the change in the Engineering News Record inflation index that occurs between annual updates. C. Collection. Impact fees shall be collected by the Building Department at the time and as a condition for issuance of a building permit. (Ord. No. 33, 2006, §1) 26.610.060. Impact fee accounts. A. Individual accounts. The City shall establish an impact fee account for each type of capital facility for which an impact fee is imposed. The impact fees collected shall be deposited in each such account according to type of improvement. The funds of the account shall not be commingled with other funds of the City. B. Interest - bearing. Each impact fee account shall be interest - bearing, and the accumulated © interest shall become part of the account. (Ord. No. 33, 2006, §1) 26.610.070. Use of impact fee proceeds. Impact fees may be expended only for the type of capital facilities for which they were imposed, calculated and collected and according to procedures established in this Chapter. Impact fees may be used to pay the principal, interest and other costs of bonds, notes and other obligations issued or undertaken by or on behalf of the City to finance such improvements. (Ord. No. 33, 2006, §1) Sec. 26.610.080. Credits. A. A property owner who dedicates land or improvements, agrees to participate in an improvement district or otherwise contributes funds for capital facilities as defined in this Chapter may be eligible for a credit for such contribution against the impact fee paid. 1. The City Council shall determine: a. The value of the developer contribution; b. Whether the contribution meets capital facilities' needs for which the particular • impact fee has been imposed; and c. Whether the contribution will substitute or otherwise reduce the need for capital facilities anticipated to be provided with impact fee funds. 0 In no event, however, shall the credit exceed the amount of the applicable impact fee. P22 0 0 13. When additional residential beslreems floor area, hotel bedrooms floor area or net leasable space are proposed after the demolition of a dwelling unit, lodge unit, or net leasable space, either individually or in combination, a credit for the existing floor area or net leasable space shall be credited towards the replacement development. A credit may only be allocated towards the development on an individual lot and cannot be assigned towards development on a separate lot. C. Any application for credit must be submitted on forms provided by the City before development project approval. The application shall contain a declaration under oath of those facts which qualify the property owner for the credit, accompanied by the relevant documentary evidence. (Ord. No. 33, 2006, §1)* 26.610.090. Current impact fees. The following impact fees are the result of the "City of Aspen Impact Fee Study and Update of School Lands Dedication" study, which was sponsored by the City of Aspen and completed by BBC Research and Consulting on August 7, 2006. This study is available at the Community Development Department. On August _ , 2011, the Impact Fees were amended by the City of Aspen in order to make floor area the calculation variable instead of bedrooms. Impact fees are hereby established as follows: Table 610.1, Impact Fee Schedule Parks Development Fee Residential and Hotel (per sq. ft. floor area) $5.54 Nonresidential (per net leasable sq. ft.) 4.10 TDM/Air Quality Fee Residential and Hotel (per sq. ft. floor area) $0.61 Nonresidential (per net leasable sq. ft.) 0.46 Notes: - An Accessory Dwelling Unit or Carriage House, as defined by and meeting the requirements of this Title, shall be calculated as additional floor area of a single - family or duplex dwelling. - The calculation for hotel units shall include only the floor area associated with the individual lodging units. The payment of Parks Development and TDM /Air Quality fees shall not include non -unit space. (Ord. No. 33, 2006, §1)* 26.610.100. Waiver of fees. oink, Whenever the City Council determines that any part of a proposed development constitutes an affordable housing development or an essential public facility, as defined by this Title, and wishes to 4 • 0 P23 subsidize the construction, the City Council may exempt that part of the development from the application of the impact fees or may reduce by any amount the fees imposed by this Chapter. As an economic development incentive, a lodging development may apply for a waiver of the impact fees. An application for a waiver must be made and acted upon by the City Council prior to the submission of a building permit application. Retroactive waivers are not permitted. (Ord. No. 33, 2006, §1) Sec. 26.610.110. Appeals. Prior to issuance of a building permit, the applicant may challenge the imposition of a fee imposed pursuant to this Chapter by filing with the Community Development Director a written notice of appeal as provided in Section 26.316.030, Appeals procedures, with a full statement of the grounds and an appeal fee as may be fixed from time to time by ordinance by the City Council. The City may continue processing the building permit application. If the building permit is available for issuance by the City and the appeal has not been heard, the building permit may be issued if a bond or other security in an amount equal to the challenged/unpaid portion of the impact fee /charge is provided to the City. The appeal shall be heard by the City Council. (Ord. No. 33, 2006, §1) Chapter 26.620 SCHOOL LAND DEDICATION Sections: 26.620.010 Purpose and intent 26.620.020 Applicability 26.620.030 Exemptions 26.620.040 Definitions 26.620.050 Imposition, calculation and collection of dedications 26.620.060 Procedures for land dedication and/or cash payment 26.620.070 Current land dedication and cash -in -lieu fees 26.620.080 Appeals 26.620.010. Purpose and intent. The Aspen School District requires land for necessary school functions which may include, but are not limited to, school buildings, support facilities, open space and recreation areas and housing for employees and their immediate families. The purpose of this provision is to ensure that, as development occurs and enrollment in the schools grows, the current level of service provided to students can be maintained. This is accomplished by the adoption of standards for new development to provide land, or cash in lieu thereof, to the City, for use by the Aspen School District. The standards are based on the number of students the development generates and the current level of service standard within the Aspen School District for land area provided per student. (Ord. No. 33, 2006, §2) 1 C P24 26.620.020. Applicability. Unless expressly exempted, the school land dedication standard shall be assessed upon all development within the City which contains residential units dwelling units or additional floor area. The school land dedication standard shall only be assessed on the first 3,475 sc, ft. of floor area per dwelling unit. (Ord. No. 33, 2006, §2)* Sec. 26.620.030. Exemptions. Any development considered nonresidential development, as defined by this Chapter, is exempt from the school land dedication. (Ord. No. 33, 2006, §2) Sec. 26.620.040. Definitions. When used in this Chapter, the following words, terms and phrases, and their derivations, shall have the meanings ascribed to them in this Section, except where the context clearly indicates a different meaning: A. Building permit means any City permit that increases the number of bedrooms residential floor area and/or changes to of land use. B. Collection means the point at which land or a cash payment in lieu is actually transferred or paid to the City. C. Impose means to determine that a particular development project is subject to the collection of a land dedication as a condition of development approval. D. Land dedication means a land exaction imposed by the City pursuant to this Chapter as a condition of or in connection with approval of a development project for the purpose of defraying all or some of the Aspen School District's cost for capital facilities associated with that development project. E. New development or development project means any project undertaken for the purpose of development, including without limitation, a project involving the issuance of a permit for construction, reconstruction or change of use but not a project involving the issuance of a permit to operate or to remodel, rehabilitate, reconstruct or improve an existing structure, which does not change the numbef amount of bs floor area. F. Nonresidential development project means all development other than residential development. G. Residential development project means any development undertaken to create a new dwelling unit or to add one (1) or more additional bedreems -floor area to an existing dwelling unit, excluding hotel units. (Ord. No. 33, 2006, §2) 6 P25 26.620.050. Imposition, calculation and collection of dedications. A. Imposition. Except as provided in this Chapter and any amendment to this Chapter, the City may impose a school land dedication as a condition of approval of all new development projects. All lands dedicated to the City pursuant to this Section shall be held by the City for the Aspen School District, until such time as they shall be requested by the School District for school purposes. The Aspen School District shall be responsible for maintenance of said lands in a reasonable manner while they are being held by the City. B. Collection. Land dedications shall be finalized and completed prior to building permit application. A cash payment in lieu, however, shall be collected by the Building Department at the time and as a condition for issuance of a building permit. 1. Funds. All funds collected pursuant to this Chapter shall be transferred by the Community Development Director to the Finance Director. All funds so collected shall be properly identified and promptly deposited in a designated account. Funds withdrawn from this fund shall be used exclusively for the purposes specified herein. 2. City shall transfer funds to School District. Funds collected pursuant to this Chapter shall be remitted monthly to the Aspen School District. The Aspen School District shall deposit said funds into an interest - bearing account authorized by law. The Aspen School District shall be the owner of the funds in the account, but the signature of the chief financial officer of the Aspen School District, or his or her designee, and the signature of the Finance Director of the City shall be required for the withdrawal of monies from the account. 3. Administrative Fee. The City shall be entitled to retain two percent (2 %) of the funds collected to compensate it for its administrative expenses of collecting the fees. Said fees shall be deposited in the City's general revenue fund to be expended as the City shall determine in its sole discretion. C. Updated Annually. The land dedication standard imposed may be updated annually and adopted by City Council ordinance. (Ord. No. 33, 2006, §2) 26.620.060. Procedures for land dedication and /or cash payment. A. Land Dedication. Lands to be dedicated to the City to fulfill the standards of this Chapter shall be identified on the subdivision plat and shall be dedicated to the City at the time of final plat approval. 1. Acceptance. Acceptance of the lands to be dedicated shall be at the discretion of the City Council. 2. Criteria. Prior to acceptance, the City shall consider the comments of the Aspen School District to determine whether the lands proposed to be dedicated are of adequate size and can be suitably developed for school purposes or whether the lands have the capability of being sold, with the proceeds being used for school purposes. The City shall also consider the probable impacts on neighboring properties of the development of the lands P26 for school purposes. When the lands proposed to be dedicated are not adequate or suitable for school purposes and cannot feasibly be sold, the City shall require a cash payment in lieu of the land dedication. B. Cash -in -lieu payment. Payment of cash in lieu of a land dedication shall be made to the City prior to and on a proportional basis to the issuance of any building permits for the residential dwelling units. (Ord. No. 33, 2006, §2) 26.620.070. Current land dedication and cash -in -lieu fees. A. The following land dedication is the result of the "City of Aspen Impact Fee Study and Update of School Lands Dedication" study, which was sponsored by the City and completed by BBC Research and Consulting on August 7, 2006. This study is available at the Community Development Department. The land dedication was amended on August , 2011 to implement a change that began using floor area as a basis of calculation instead of bedrooms. The current land area required per student equals 896 square feet. Table 620.1 provides the student generation rates as follows: Table 620.1, Student Generation Rates Floor area (sq. ft.) Student Generation Rate First 1,200 .00008 per sq. ft. 1,201 — 3,425 .00016 per sq. ft. Above 3,425 0 Notes: - The calculation of the School Land Dedication shall be access per dwelling unit. For example, duplex dwelling units do not combine their floor area for one calculation. - An Accessory Dwelling Unit or Carriage House, as defined by and meeting the requirements of this Title, shall be calculated as additional floor area of the single - family or duplex dwelling it is associated with. - When redevelopment of a property adds floor area, the difference between the generation rates of the existing floor area and the proposed floor area shall be the number of students generated. - When a scrape- and - replace project is proposed, the redevelopment shall be credited the floor area from the demolished residential dwelling unit. Credit from a demolished dwelling unit cannot be allocated to more than one replacement dwelling unit or to development on a different lot. - For a general example, a 950 square foot residential unit would be required to mitigate for 68 square feet of land (950 *.00008) *896. Also see Figure 620.1. 3 8 P27 Figure 620.1, School Land Dedication Calculation Land Area per Student Standard (square feet) multiplied by Total Students Generated (Provided in Table 620.1, Student Generation Rates) equals Total Square Feet to be Dedicated B. Cash payment in lieu. An applicant may make a cash payment in lieu of dedicating land to the City, or may make a cash payment in combination with a land dedication, to comply with the standards of this Chapter. Because of the extraordinary cost of land within the City, the School District and the City agreed to require payment of a cash -in -lieu amount which is less than the full market value of the land area. The formula to determine the amount of cash -in -lieu payment for each residential dwelling unit is as follows: Figure 620.2, Cash -in -Lieu Formula Total Square Feet to be Dedicated multiplied by Appraised Per - Square -Foot Value of Land Being Developed multiplied by Percentage of Fee to be Charged (0.33) equals Cash -in -Lieu Payment 1 P28 Figure 620.3, Cash Payment in Lieu Example The following example provides a development scenario to display how the fee is calculated. The scenario includes a new 3200 sq. ft. (floor area) single - family residential home on a 6,000 sq. ft. lot with an actual lot value of $2,400,000. This lot value would mean a per sq. ft. lot value of $400. Floor Area Students Generated 3,200 (first 1,200 sq. ft. x .00008) .096 (remaining 2,000 sq. ft. x .00016) .32 Total Student Generation Rate .416 Land Dedication Calculation Land Area per Student Standard (sq. ft.) 896 multiplied by Total Students Generated (from above calculation) .416 equals Total Square Feet to be Dedicated 372.74 • When calculating a cash payment in lieu of a land dedication (assuming a total land value of $2,400,000 for a 6,000- square -foot lot containing the single dwelling unit), the following calculation would be used to determine the cash payment in lieu: Market Value of Land per sq. ft. $400 per sq. ft. multiplied by Total Square Feet to be Dedicated 372.74 multiplied by Percentage of Fee to be Charged 0.33 equals Cash Payment in Lieu $49,201.68 1. Current market value. Current market value means the value of the land at the time of the cash -in -lieu payment, including site improvements such as streets and utilities, but fi excluding the value of residential dwelling units and other structures on the property. 10 • �.; � P29 2. Substantiation. Market value may be substantiated by a documented purchase price (if an arms - length transaction no more than two [2] years old) or other mutually agreed -upon recognized means. 3. Appraisal. In the event the developer and the City fail to agree on market value, such value shall be established by a qualified real estate appraiser acceptable to both parties. The developer shall pay for the appraisal. C. Mixed use developments. When the proposed development contains a mix of on a proportionate share ef residential net livable area ef the project compared to the total net livable and/or net 1cisable commercial and office space of the project as a whole. For example, • a Properties containing mixed use development shall only pay the School Land Dedication fee -in- lieu for the floor area associated with the residential component of the development. Non -unit space shall not contribute to the payment of School Land Dedication. 26.620.080. Appeals. A. Prior to issuance of a building permit, the applicant may challenge the imposition of a land dedication unposed pursuant to this Chapter by filing with the Community Development Director a written notice of appeal as provided in Section 26.316.030, Appeals procedures, with a full statement of the grounds and an appeal fee as may be fixed from time to time by ordinance by the City Council. The City may continue processing the building permit application. If the building permit is available for issuance by the City and the appeal has not been heard, the building permit may be issued if a bond or other security in an amount equal to the challenged/unpaid portion of the land dedication is provided to the City. The appeal shall be heard by the City Council. (Ord. No. 33, 2006, §2) P30 pi- 0 lT 8/11 /2011 Code Amendments Impact Fees and School Land Dedication Planning and Zoning Commission August 4t, 2011 Introduction • These examples will all use the same development scenario: — Single Family Residence — 3,200 square feet of floor area — 6,000 square foot lot — Lot value of $2,500,000 — Per square foot lot value of $400.00 2 Proposed Fee Schedule fee Type - feeAmotmtjper sq.h . 4:ecAmourlt {per sq. lL _ ses floor area netleasable Parks Development 55.45 54.10 TDM /AU Quality Fee 50.61 5.046 II First 1,200 sq. ft. of dwelling unit 0.00003 1,201 -3,425 sq. ft. 0.00016 Over 3,425 0 3 1 8/11 /20011 Parks Development and TDM /Air Quality Fees • Fee is calculated based on floor area with no cam. • Example: A 3,200 sq. ft. (floor area) home would result in the following calculation: — Parks Dev.: (3,200 x $5.45) = $17,440 —TDM /Air Quality: (3,200 x $0.61) = 51,952 • Total Impact Fees: $19,392 • School Land Dedication • Fee is derived from a floor area /student generation conversion with a cap at .452 students. • 3,200 sq. ft. home would generate 0.416 students — First 1,200 equals .096 students (1,200 x.00008) — Remaining 2,000 sq. ft. equals .32 students (2,000 x .00016) School Land Dedication • The Code explains that 1 student requires 896 square feet of land. • 0.416 student generation equals a requirement of 372 sq. ft. land dedication. — (896 x 0.416) = 372 sq. ft. 2 P32 • 8/11/2011 School Land Dedication • • The land dedication amount must be multiplied by the per sq. ft. value of the lot ($400). o 372 o x$400 o = $148,800 • The Code explains that only 33% of the fee should be imposed — $49,104 is the resulting School Land Dedication Fee. • Total fee for this project: — $68,496 • School Land Dedication - 72% (549,104) • Parks Development- 25% ($17,440) • TDM /Air Quality -3 %($1,952) • Old Program (4 Bedrooms) %.hi — $73,166 • School Land -74% ($53,458) • Parks Development-24% (517,716) • TDM /Air Quality-3% (51,992) • Total fee for this project (3,400 sq. ft. home): — $73,604 • School Land Dedication- $53,000 • Parks Development- $18,530 • TDM /Air Quality - 52,074 • Old Program (4 Bedrooms) — $73,166 • School Land — $53,458 • Parks Development-517,716 • TDM /Air Quality — $1,992 `an Ad • 3 8/11 /2(053 Fee Credits • Scrape -and Replace Development — Credit issued for redevelopment — For example: A 3,000 sq. ft. demolished dwelling unit would provide 3,000 sq. ft. of credit to the replacement dwelling unit. — This would be .384 Student Generation Credit — Prevents double- dipping of the fees • 4 Drew Alexander ""crom: Kate Fuentes [kfuentes @aspenk12.net] \, Friday, July 22, 2011 3:57 PM To: Drew Alexander Subject: RE: land ded fee info Hi Drew, In looking over this information, it seems reasonable, but I am having a hard time understanding the financial ramifications to the School District. The example you provided on the spreadsheet titled "Impact Fee Analysis" showed before /after amounts. Is there a way to provide similar information for us? Or maybe you can walk us through some examples? Thanks and have a great weekend! Kate From: Drew Alexander [mailto:Drew.Alexander @ci.aspen.co.us] Sent: Friday, July 01, 2011 3:37 PM To: Kate Fuentes Cc: John Maloy Subject: RE: land ded fee info Hi Kate – hanks again for meeting with me the other day. I apologize for the length of this email, but I wanted to be thorough, and Kate, these numbers have changed slightly since we last spoke So to explain the proposed program, I'll start with a general background of the research. In order to find average home size, staff used two databases: assessor data and building permit data. Both reports were very similar, and we ended up relying more on the building permit data for the final numbers, with cross - checks and balancing from the assessor data. Building permit reports represented the most accurate data for us because those numbers are entered by the zoning officer during the building permit review. Both reports also included statistics for bedroom counts. After generating the report, we arrived at the following averages of house size (all averages in floor area – floor area is different than gross sq. footage). • Studio: 646 sq. ft. • 1 Bedroom : 778 sq. ft. • 2 Bedroom: 1,245 sq. ft. • 3 Bedroom: 2,271 sq. ft. • 4 Bedroom: 3,478 In order to find the generation rates, we have used the pre - established student generation rates in the current codes for bedrooms: • Studio: 0.049 (Students) — • 1 Bedroom: 0.062 ‘4.-- • 2 Bedroom: 0.115 • 3 Bedroom: 0.310 • 4 Bedroom: 0.452 1 Our consultant in Denver recommended to start the sliding scale after the 2 bedroom rate, so the scales should represent homes smaller than a two bedroom average and then homes larger than the two bedroom average. To arrive the first scale, we simply divided the 2 bedroom generation (.115) rate by the average 2 bedroom home size (approx. `''1,300 sq. ft.) to arrive at .00008 students per square foot in floor area. For the upper end of the scale, the calculation is a bit more difficult. To do so, we first reduced the four bedroom numbers (.452 and 3,478 sq. ft.) by the lower scale numbers (.115 and 1,300) to arrive at .337 and 2,175. Dividing those two numbers gives us a generation rate of .00016, which would be applied to floor area above 1,300 sq. ft. For example, when a new single family residence permit was submitted, the zoning officer will look for the floor area. Let's say that the permit included 2,900 sq. ft. of floor area. The first 1,300 sq. ft. would be calculated at .00008 students per sq. ft. and the next 1,600 sq. ft. would be calculated at .00016 students per sq. ft. This gives a total student generation of .36. Looking at both of the scales above, this falls somewhere between the 3 and 4 bedroom size, both in floor area and in student generation amount. To staff, this represents a very accurate calculation. Floor area Student Generation Rate First 1,300 square feet of dwelling unit .00008 Above 1,300 square feet .00013 Upper limit for fee is 3,475 square feet .452 Notes: - An Accessory Dwelling Unit or Carriage House, as defined by and meeting the requirements of this Title, shall be calculated as additional floor area of a single - family or duplex dwelling. - When redevelopment of a property adds floor area, the difference between the generation rates of the existing floor area and the proposed floor area shall be the number of students generated. - For example, a 950 square foot residential unit would be required to mitigate for 68 square feet of land (950 *.00008) *896 = 68). Please let me know if you have any questions. Also, the July 5 P &Z meeting will not be discussing these amendments. They will likely be introduced at the July 19 public hearing. Cheers, Drew Alexander Planner Community Development Department City of Aspen From: Kate Fuentes [mailto:kfuentes @aspenkl2.net] Sent: Friday, July 01, 2011 9:16 AM To: Drew Alexander Subject: land ded fee info ii Drew, 2 i Hope you've had a good week. John and I reviewed the schedule you provided in a bit more detail. It prompted the question of how the "students per square foot" of 0.00012 was determined. I didn't see anything that referenced where that carne from. As this is the crux of the calculations, it would be good to know the assumptions and calculations it. 1 also wanted to get more info from you about the structure of the fees for "smaller" units. You had mentioned something about a limit or discount for units of 1000 sq ft or smaller. I don't recall any details about that. Can you shed more light on this for me please? Thanks for your help! Kate D. Fuentes Chief Financial Officer Aspen School District No.1 RE 0235 High School Rd. Aspen, CO 81611 970.925.3760 x4009 kfuentes @aspenkl2.net Email secured by Check Point Email secured by Check Point 3 Drew Alexander °"•From: John Maloy [jmaloy @aspenk12.net] .,,,,.dent: Tuesday, June 21, 2011 1:18 PM To: Drew Alexander Subject: RE: School Land Dedication Update Drew: Thank you for the telephone call and email. Kate is out of the office until Wednesday. Kate and I will chat after her return then contact you for a follow -up meeting. John Original Message From: Drew Alexander [mailto :Drew.Alexander ©ci.aspen.co.us] Sent: Tuesday, June 14, 2011 10:42 AM To: John Maloy; Kate Fuentes Subject: School Land Dedication Update Kate and John — I hope all is well and that you're enjoying summer now that it has finally arrived. I wanted to update you on the code amendment process that Community Development has been working on. The direction that the amendments were headed took a fairly significant turn recently. Instead of relying on assessor data to find average home size, we have now decided to use building permit data so that floor area could be used. This is more accurate, given that this number is entered by the zoning officer while reviewing the building permit. Also, floor area is a number submitted with all permits and is readily available. Additionally, we are no longer planning to include a new average land value to apply to the School Land Dedication fee. It was decided to keep the current case -by -case assessment in place. What this means is that the fees the School District would collect under this new program would be extremely similar to the fees of old (current) system. I've attached a short spreadsheet displaying how the new fees would compare to those single - family residential permits that were submitted in 2009. You may notice 1291 Riverside Drive on the spreadsheet because it has the largest difference. This is mostly because it is a small home with many bedrooms. Under the old system, fees were generated solely on bedrooms and this resulted in the high School Land fee. Under the new program, the small size of the home reflects the lower fee amount, but this large of difference should be rare. Also, some properties under the new system pay fees when they had to pay nothing under the old program. This is because the permit represents a floor area increase (even though no "bedrooms" were added). Please let me know your questions or concerns about this, and I would be glad to schedule another meeting. The City Council work session is still scheduled for June 21", with the first P &Z public hearing on July 19`". 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O c L«= o y r 0 0 •N c c c c w y— c o p o CD- .+ vi o >, ■ d o 0 o r o y mI -0 . iri ° m E c E o E ° co `n C a a a E i • 7. o O a p o 8 E e e a) c ca t 7 co CO x Q O c co c c c O. • a) — g • a) .y R. 2 cn 2 m E E o E E-o • ca ) U E E cC a> k.E.w oDODE '� ..- -0 o m LL c C Q o V E y E v Ea) E o ca - ,- > `- L to y 0 v , co w O ... _c N . co 0 y N U rn E 2$ C 0 °- 0 T O 7 ` " 5 E •a a c) N co co LT E a) H a) H a — 2 a E Q E 1 C 1- Q c v) cn u) cn co cn cn (J) E . 1U 0 c) 0 0 c . 7 7 a O CC CC CC CC .. p E t a) ca y y 0 c c 0..=0:1C01:01:00:10:1 v000000 a0C O o 7ri ee m »> g 4- 4- 4- > - >, T 7 ,-• o m MEMORANDUM TO: Mayor Ireland and Aspen City Council THRU: Chris Bendon, Community Development Director FROM: Drew Alexander, Planner oa RE: Code Amendments - Bedroom Calculation and Impact Fees, including School Land Dedication MEETING DATE: June 21 2011 The current City of Aspen Land Use Code imposes a number of zoning impact fees upon residential development to ensure that "development pay all or part of its way." These exactions are currently calculated and based upon the number of bedrooms proposed for the development. Staff is seeking Council direction to initiate amendments to the Land Use Code to eliminate the "bedroom game." Amending the calculation methodology of the zoning impact fees should greatly simplify the zoning review process. The affected fees include Parks Development, Transportation Demand Management (TDM) /Air Quality, and School Land Dedication. For residential development, the zoning impact fees are calculated based upon the number of bedrooms in a residence. The Land Use Code has a definition of "bedroom" that the zoning officer uses when reviewing plans: Bedroom: A portion of a dwelling unit intended to be used for sleeping purposes, which may contain closets, and may have access to a bathroom. This definition is not precise and lends itself to varying interpretation. What frequently happens (because the fees can be large) is that architects and builders will begin the "bedroom game" with the zoning officer to try and lessen the fee amount. For example, a room with a closest may be labeled as a "study" on a plan set to avoid fees, but the zoning officer will calculate the room as a bedroom because it meets the definition in the code. Then, the architect will disagree with the decision and make small amendments. These resubmission persist until the zoning officer decides the room is no longer a bedroom. These changes usually look like doors being removed, removal of closets, or eliminated bathrooms or access to. In an effort to avoid the "bedroom game" altogether, staff is preparing a new draft of the Impact Fees and School Lands Dedication language that uses floor area as the calculation variable for fees. Staff created a report from approximately 350 building permits dating back to 2004 and examined two categories: floor area and number of bedrooms. RRC Associates in Boulder, CO are acting as a consultant on the project and confirming any data that staff is using for statistical validity. Converting the City's impact fee system to a floor area basis will simplify zoning review, eliminate time wasted arguing about each room, impose fees more equitably, and make the impact fee estimates more precise for prospective applicants. Using floor area rather than the number of bedrooms should result in a system that is more accurate. As stated, the "bedroom game" encourages building permits to have awkward amendments and less than practical finished layouts. Floor area provides a simple metric that will accurately assess fees based on the size of home and presumably the number of school aged children, not its intended or unintended use. These amendments will only alter the method of calculation, not the pre- determined fee schedules that have been in use since 2006. For TDM/Air Quality and Parks fees, staff simply took the total floor area from the building permit data and divided the number by the total fees paid for those permits. For the School Land Dedication fee staff divided the 4 bedroom generation rate (.452) by the average size of a four bedroom home (3790 sq. ft.) to arrive at a per square foot student generation rate. Throughout this drafting process, staff has been in contact with the Aspen School District, the Transportation Dept., Parks Dept., and Environmental Health (groups that are impacted or receive funds from these fees). After this work session, staff will continue this outreach and inform these entities of Council's direction. The new fees would include the following for residential development: Parks Development $5.45 per sq. ft TDM/Air Quality $0.61 per sq. ft School Land Dedication .00012 students per sq. ft. (capped at .452) CITY MANAGER'S COMMENTS: Attachments: Exhibit A: Data from building permit report k 0 t 3 v al Po 0 m 00 Y f4 g 1D e G .� w : `n • m 1- u) ta W O W 0I u. a m A LO N V! Y O u1 O u1 1-1 ID N O O u 0 D O m M Ln 03 LO 0 0 0 m 1n 0 m m N m ID m u1 a m N j N a 1" l N 00 -p ra Ln N E a .o . N u 11/46,.,, a d 01 I= 10 a a C 12 C O • ` 2 g iii y B' uT O o 0 0 0 00 0 (m 0 0 N In 0 0 0 0 0 r 0 0 0 0 3 <' a N y N La r1 a tD 0 0 0 a 0 N m- in 'i 143 a N VT 0 VT VT A. 0C N O 0) TO t VT t vT in t m 4 > > is. '' r c a 9 .. 3 a ' E of a s .-I a a 0 u1 N VI 2 m H 0 N in 1 0 N O to m w O To o pp O. i 0 0 0 0 0 0 0 0 0 0 0 ` . 0 0 0 0 0 0 0 0 0 ee . N Id «3 N N o « 3 O n C: 01 Ent of of o 0D 0 m 0 LC N eF N V LO M 10 f 1p N 10 N m M N. tD O N O 0 y W Oi Of N 01 Uf O OI N O e- Oi N. 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W W 10 E a LT, a Z .-1 0 01— Ln u1 U In u1 = C 2 ,-1 0 0 I in u1 U 1 n Ln ._ y u1 °i7 d V 0 D O � 'O N m in .-1 in Ln m ul O oo V 'fl I N m Ln .-1 M u1 m Ln O 0o p u1 aa J m 00 rD 00 m m �o U O N 0 0 Ln 0 0 0 Ln m ��pp "q N O N 0 0 u1 0 0 0 ul M O O U C N -i c- .1 .-1 N O o 00 00 .-1 U Q.: -1 1-1 e-1 N 0 0 CO 00 .-1 *0 m f• in .-1 N M a Ln 1D The Oily otGspen CITY OF ASPEN STANDARD FORM OF AGREEMENT PROFESSIONAL SERVICES City of Aspen Project No.: AGREEMENT made as of .JvN 7 , 2011. BETWEEN the City: Contract Amount: The City of Aspen c/o Chris Bendon 130 South Galena Street Total: Dependent upon total hours of Aspen, Colorado 81611 work completed. Hourly rate is Phone: (970) 920 -5055 part of this agreement as Exhibit B. If this Agreement requires the City to pay And the Professional: an amount of money in excess of $25,000.00 it shall not be deemed valid I2RC Associates until it has been approved by the City Council of the City of Aspen. 4940 Pearl East Circle Suite 103 City Council Approval: Boulder, CO 80301 Phone: 303 - 449 -6558 Date: N/A Resolution No.:N /A For the Following Project: Provide as needed assistance to Community Development staff in the analysis of average home size when the active variable is number of bedrooms, and with arriving at an average per square foot residential land value for the City of Aspen. Exhibits appended and made a part of this Agreement: Exhibit A: Scope of Work. Exhibit B: Hourly Fee Schedule. Agreement: Professional Services Page 0 • The City and Professional agree as set forth below. 1. Scope of Work. Professional shall perform in a competent and professional manner the Scope of Work as set forth at Exhibit A attached hereto and by this reference incorporated herein. 2. Completion. Professional shall commence Work immediately upon receipt of a written Notice to Proceed from the City and complete all phases of the Scope of Work as expeditiously as is consistent with professional skill and care and the orderly progress of the Work in a timely manner. The parties anticipate that all Work pursuant to this Agreement shall be completed no later than October 31, 2011. Upon request of the City, Professional shall submit, for the City's approval, a schedule for the performance of Professional's services which shall be adjusted as required as the project proceeds, and which shall include allowances for periods of time required by the City's project engineer for review and approval of submissions and for approvals of authorities having jurisdiction over the project. This schedule, when approved by the City, shall not, except for reasonable cause, be exceeded by the Professional. 3. Payment. In consideration of the work performed, City shall pay Professional on a time and expense basis for all work performed. The hourly rates for work performed by Professional shall not exceed those hourly rates set forth at Exhibit B appended hereto. Except as otherwise mutually agreed to by the parties the payments made to Professional shall not initially exceed the amount set forth above. Professional shall submit, in timely fashion, invoices for work performed The City shall review such invoices and, if they are considered incorrect or untimely, the City shall review the matter with Professional within ten days from receipt of the Professional's bill. 4. Non - Assignability. Both parties recognize that this Agreement is one for personal services and cannot be transferred, assigned, or sublet by either party without prior written consent of the other. Sub - Contracting, if authorized, shall not relieve the Professional of any of the responsibilities or obligations under this Agreement. Professional shall be and remain solely responsible to the City for the acts, errors, omissions or neglect of any subcontractors' officers, agents and employees, each of whom shall, for this purpose be deemed to be an agent or employee of the Professional to the extent of the subcontract. The City shall not be obligated to pay or be liable for payment of any sums due which may be due to any sub- contractor. 5. Termination of Procurement. The sale contemplated by this Agreement may be canceled by the City prior to acceptance by the City whenever for any reason and in its sole discretion the City shall determine that such cancellation is in its best interests and convenience. 6. Termination of Professional Services. The Professional or the City may terminate the Professional Services component of this Agreement, without specifying the reason therefor, by giving notice, in writing, addressed to the other party, specifying the effective date of the termination. No fees shall be earned after the effective date of the termination. Upon any termination, all finished or unfinished documents, data, studies, surveys, drawings, maps, models, photographs, reports or other material prepared by the Professional pursuant to this Agreement shall become the property of the City. Notwithstanding the above, Professional shall not be relieved of any liability to the City for damages sustained by the City by virtue of any breach of this Agreement: Professional Services Page 1 Agreement by the Professional, and the City may withhold any payments to the Professional for the purposes of set-off until such time as the exact amount of damages due the City from the Professional may be determined. 7. Independent Contractor Status. It is expressly acknowledged and understood by the parties that nothing contained in this agreement shall result in or be construed as establishing an employment relationship. Professional• shall be, and shall perform as, an independent Contractor who agrees to use his or her best efforts to provide the said services on behalf of the City. No agent, employee, or servant of Professional shall be, or shall be deemed to be, the employee, agent or servant of the City. City is intei ested only in the results obtained under this contract The manner and means of conducting the work are under the sole control of Professional. Professional may use Ciry equipment and facilities consisting of a work station located on the third floor of City Hall, a computer, a phone, city email, and incidental office materials. None of the benefits provided by City to its employees including, but not limited to, workers' compensation insurance and unemployment insurance, are available from City to the employees, agents or servants of Professional. Professional shall be solely and entirely responsible for its acts and for the acts of Professional's agents, employees, servants and subcontractors during the performance of this contract. Professional shall indemnify City against all liability and loss in connection with, and shall assume full responsibility for payment of all federal, state and local taxes or contributions imposed or required under unemployment insurance, social security and income tax law, with respect to Professional and/or Professional's employees engaged in the performance of the services agreed to herein. 8. Professional's Insurance. (a) Professional agrees to procure and maintain, at its own expense, a policy or policies of insurance sufficient to insure against all liability, claims, demands, and other obligations assumed by the Professional pursuant to Section 7 above. Such insurance shall be in addition to any other insurance requirements imposed by this contract or by law. The Professional shall not be relieved of any liability, claims, demands, or other obligations assumed pursuant to Section 7 above by reason of its failure to procure or maintain insurance, or by reason of its failure to procure or maintain insurance in sufficient amounts, duration, or types. (b) Professional shall procure and maintain, and shall cause any subcontractor of the Professional to procure and maintain, the minimum insurance coverages listed below. Such coverages shall be procured and maintained with forms and insurance acceptable to the City. All coverages shall be continuously maintained to cover all liability, claims, demands, and other obligations assumed by the Professional pursuant to Section 8 above. In the case of any claims -made policy, the necessary retroactive dates and extended reporting periods shall be procured to maintain such continuous coverage. (i) Workers' Compensation insurance to cover obligations imposed by applicable laws for any employee engaged in the performance of work under this contract, and Employers' Liability insurance. If required by law, such insurance shall provide minimum limits of FIVE HUNDRED THOUSAND DOLLARS ($500,000.00) for each accident, FIVE HUNDRED THOUSAND DOLLARS ($500,000.00) disease - policy limit, and FIVE HUNDRED THOUSAND Agreement: Professional Servi ces Page 2 DOLLARS ($500,000.00) disease - each employee. Evidence of qualified self- insured status may be substituted for the Workers' Compensation requirements of this paragraph. (c) The policy or policies required above shall be endorsed to include the City and the City's officers and employees as additional insureds. Every policy required above shall be primary insurance, and any insurance carried by the City, its officers or employees, or carried by or provided through any insurance pool of the City, shall be excess and not contributory insurance to that provided by Professional. No additional insured endorsement to the policy required above shall contain any exclusion for bodily injury or property damage arising from completed operations. The Professional shall be solely responsible for any deductible losses under any policy required above. (d) The certificate of insurance provided by the City shall be completed by the Professional's insurance agent as evidence that policies providing the required coverages, conditions, and minimum limits are in full force and effect, and shall be reviewed and approved by the City prior to commencement of the contract. No other form of certificate shall be used. The certificate shall identify this contract and shall provide that the coverages afforded under the policies shall not be canceled, terminated or materially changed until at least thirty (30) days prior written notice has been given to the City. (e) Failure on the part of the Professional to procure or maintain policies providing the required coverages, conditions, and minimum limits shall constitute a material breach of contract upon which City may immediately terminate this contract, or at its discretion City may procure or renew any such policy or any extended reporting period thereto and may pay any and all premiums in connection therewith, and all monies so paid by City shall be repaid by Professional to City upon demand, or City may offset the cost of the premiums against monies due to Professional from City. (f) City reserves the right to request and receive a certified copy of any policy and any endorsement thereto. (g) The parties hereto understand and agree that City is relying on, and does not waive or intend to waive by any provision of this contract, the monetary limitations (presently $150,000.00 per person and $600,000 per occurrence) or any other rights, immunities, and protections provided by the Colorado Governmental Immunity Act, Section 24-10 -101 et seq., C.R.S., as from time to time amended, or otherwise available to City, its officers, or its employees. 9. City's Insurance. The parties hereto understand that the City is a member of the Colorado Intergovernmental Risk Sharing Agency ( CIRSA) and as such participates in the CIRSA Proper- ty/Casualty Pool. Copies of the CIRSA policies and manual are kept at the City of Aspen Finance Department and are available to Professional for inspection during normal business hours. City makes no representations whatsoever with respect to specific coverages offered by CIRSA. City shall provide Professional reasonable notice of any changes in its membership or participation in CIRSA. Agreement: Professional Services Page 3 10. Completeness of Agreement. It is expressly agreed that this agreement contains the entire undertaking of the parties relevant to the subject matter thereof and there are no verbal or written representations, agreements, warranties or promises pertaining to the project matter thereof not expressly incorporated in this writing. 11. Notice. Any written notices as called for herein may be hand delivered or mailed by certified mail return receipt requested to the respective persons and/or addresses listed above. 12. Non - Discrimination. No discrimination because of race, color, creed, sex, marital status, affectional or sexual orientation, family responsibility, national origin, ancestry, handicap, or religion shall be made in the employment of persons to perform services under this contract, Professional agrees to meet all of the requirements of City's municipal code, Section 13 -98, pertaining to non - discrimination in employment. 13, Waiver. The waiver by the City of any term, covenant, or condition hereof shall not operate as a waiver of any subsequent breach of the same or any other term. No term, covenant, or condition of this Agreement can be waived except by the written consent of the City, and forbearance or indulgence by the City in any regard whatsoever shall not constitute a waiver of any term, covenant, or condition to be performed by Professional to which the same may apply and, until complete performance by Professional of said term, covenant or condition, the City shall be entitled to invoke any remedy available to it under this Agreement or by law despite any such forbearance or indulgence, 14, Execution of Agreement by City. This Agreement shall be binding upon all parties hereto and their respective heirs, executors, administators, successors, and assigns. Notwithstanding anything to the contrary contained herein, this Agreement shall not be binding upon the City unless duly executed by the Mayor of the City of Aspen (or a duly authorized official in his absence) following a Motion or Resolution of the Council of the City of Aspen authorizing the Mayor (or a duly authorized official in his absence) to execute the same. 15. Illegal Aliens — CRS 8- 17.5 -101 & 24- 76.5 -101. (a) Purpose. During the 2006 Colorado legislative session, the Legislature passed House Bills 06 -1343 (subsequently amended by HB 07 -1073) and 06 -1023 that added new statutes relating to the employment of and contracting with illegal aliens. These new laws prohibit all state agencies and political subdivisions, including the City of Aspen, from knowingly hiring an illegal alien to perform work under a contract, or to knowingly contract with a subcontractor who knowingly hires with an illegal alien to perform work under the contract. The new laws also require that all contracts for services include certain specific language as set forth in the statutes. The following terms and conditions have been designed to comply with the requirements of this new law. (b) Definitions. The following terms are defined in the new law and by this reference are incorporated herein and in any contract for services entered into with the City of Aspen. Agreement Professional Services Page 4 "Basic Pilot Program" means the basic pilot employment verification program created in Public Law 208, 104th Congress, as amended, and expanded in Public Law 156, 108th Congress, as amended, that is administered by the United States Department of Homeland Security. "Public Contract for Services" means this Agreement. "Services" means the furnishing of labor, time, or effort by a Contractor or a subcontractor not involving the delivery of a specific end product other than reports that are merely incidental to the required performance. (c) By signing this document, Professional certifies and represents that at this time: (i) Professional shall confirm the employment eligibility of all employees who are newly hired for employment in the United States; and (ii) Professional has participated or attempted to participate in the Basic Pilot Program in order to verify that new employees are not employ illegal aliens. (d) Professional hereby confirms that: (i) Professional shall not knowingly employ or contract new employees without confirming the employment eligibility of all such employees hired for employment in the United States under the Public Contract for Services. (ii) Professional shall not enter into a contract with a subcontractor that fails to confirm to the Professional that the subcontractor shall not knowingly hire new employees without confirming their employment eligibility for employment in the United States under the Public Contract for Services. (iii) Professional has verified or has attempted to verify through participation in the Federal Basic Pilot Program that Professional does not employ any new employees who are not eligible for employment in the United States; and if Professional has not been accepted into the Federal Basic Pilot Program prior to entering into the Public Contract for Services, Professional shall forthwith apply to participate in the Federal Basic Pilot Program and shall in writing verify such application within five (5) days of the date of the Public Contract. Professional shall continue to apply to participate in the Federal Basic Pilot Program and shall in writing verify same every three (3) calendar months thereafter, until Professional is accepted or the public contract for services has been completed, whichever is earlier. The requirements of this section shall not be required or effective if the Federal Basic Pilot Program is discontinued. (iv) Professional shall not use the Basic Pilot Program procedures to undertake pre - employment screening of job applicants while the Public Contract for Services is being performed. Agreement: Professional Services Page 5 • (v) If Professional obtains actual knowledge that a subcontractor performing work under the Public Contract for Services knowingly employs or contracts with a new employee who is an illegal alien, Professional shall: (1) Notify such subcontractor and the City of Aspen within three days that Professional has actual knowledge that the subcontractor has newly employed or contracted with an illegal alien; and (2) Terminate the subcontract with the subcontractor if within three days of receiving the notice required pursuant to this section the subcontractor does not cease employing or contracting with the new employee who is an illegal alien; except that Professional shall not terminate the Public Contract for Services with the subcontractor if during such three days the subcontractor provides information to establish that the subcontractor has not knowingly employed or contracted with an illegal alien. (vi) Professional shall comply with any reasonable request by the Colorado Department of Labor and Employment made in the course of an investigation that the Colorado Department of Labor and Employment undertakes or is undertaking pursuant to the authority established in Subsection 8- 17.5 -102 (5), C.R.S. (vii) If Professional violates any provision of the Public Contract for Services pertaining to the duties imposed by Subsection 8- 17.5 -102, C.R.S. the City of Aspen may terminate the Public Contract for Services. If the Public Contract for Services is so terminated, Contractor shall be liable for actual and consequential damages to the City of Aspen arising out of Professional's violation of Subsection 8- 17.5 -102, C.R.S. (ix) If Professional operates as a sole proprietor, Professional hereby swears or affirms under penalty of perjury that the Professional (1) is a citizen of the United States or otherwise lawfully present in the United States pursuant to federal law, (2) shall comply with the provisions of CRS 24- 76.5 -101 et seq., and (3) shall produce one of the forms of identification required by CRS 24- 76.5 -103 prior to the effective date of this Agreement. 16 Warranties Against Contingent Fees, Gratuities, Kickbacks and Conflicts of Interest. (a) Professional warrants that no person or selling agency has been employed or retained to solicit or secure this Contract upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by the Professional for the purpose of securing business. (b) Professional agrees not to give any employee of the City a gratuity or any offer of employment in connection with any decision, approval, disapproval, recommendation, preparation of any part of a program requirement or a purchase request, influencing the Agreement: Professional Services Page 6 content of any specification or procurement standard, rendering advice, investigation, auditing, or in any other advisory capacity in any proceeding or application, request for ruling, determination, claim or controversy, or other particular matter, pertaining to this Agreement, or to any solicitation or proposal therefore. (c) Professional represents that no official, officer, employee or representative of the City during the term of this Agreement has or one (1) year thereafter shall have any interest, direct or indirect, in this Agreement or the proceeds thereof, except those that may have been disclosed at the time City Council approved the execution of this Agreement. (d) In addition to other remedies it may have for breach of the prohibitions against contingent fees, gratuities, kickbacks and conflict of interest, the City shall have the right to: 1. Cancel this Purchase Agreement without any liability by the City; 2. Debar or suspend the offending parties from being a Professional, contractor or subcontractor under City contracts; 3. Deduct from the contract price or consideration, or otherwise recover, the value of anything transferred or received by the Professional; and 4. Recover such value from the offending parties. 17 Fund Availability. Financial obligations of the City payable after the current fiscal year are contingent upon funds for that purpose being appropriated, budgeted and otherwise made available. If this Agreement contemplates the City utilizing state or federal funds to meet its obligations herein, this Agreement shall be contingent upon the availability of those funds for payment pursuant to the terms of this Agreement. 18 General Terms. (a) It is agreed that neither this Agreement nor any of its terms, provisions, conditions, representations or covenants can be modified, changed, terminated or amended, waived, superseded or extended except by appropriate written instrument fully executed by the parties. (b) If any of the provisions of this Agreement shall be held invalid, illegal or unenforceable it shall not affect or impair the validity, legality or enforceability of any other provision. (c) The parties acknowledge and understand that there are no conditions or limitations to this understanding except those as contained herein at the time of the execution hereof and that after execution no alteration, change or modification shall be made except upon a writing signed by the parties. (d) This Agreement shall be governed by the laws of the State of Colorado as from time to time in effect. Agreement: Professional Services Page 7 IN WITNESS WHEREOF, the parties hereto have executed, or caused to be executed by their duly authorized officials, this Agreement in three copies each of which shall be deemed an original on the date first written above. CITY OF ASPEN, COLORADO: PROFESSIONAL: V W. X41 eoic, [Signature] [Signature] By: Chris Bendon By: Nolan Rosall Title: Community Development Director Title: President, RRC Associates City of Aspen Date: !•'✓ Date: 5 ! Z 1 Approved as to form: /. _ C 7omey's • ffice EXHIBIT A Scope of Work Provide as needed assistance to Community Development staff in the analysis of average home size when the active variable is number of bedrooms, and assistance with arriving at an average per square foot value of residential land within the City of Aspen. EXHIBIT B Hourly Fee Schedule x+ $ / 20. per hour 1\114 ezealood.- kmdsv4 — tatati Agreement: Professional Services Page 8