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HomeMy Public PortalAboutResolution 23-18 Amending the Comprehensive Plan Fire District CIPCity of McCall VALLEY COUNTY, STATE OF IDAHO RESOLUTION 23-18 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MCCALL MAKING CERTAIN FINDINGS; AMENDING THE CITY OF MCCALL IN MOTION 2018 MCCALL AREA COMPREHENSIVE PLAN BY THE AMENDMENT OF THE PUBLIC FACILITIES, UTILITIES, AND SERVICES, GOALS + POLICIES OF THE COMPREHENSIVE PLAN BY THE ADDITION OF A NEW GOAL 8 AND POLICY 8.1 PROVIDING FOR THE ADDITION OF THE MCCALL FIRE PROTECTION DISTRICT CAPITAL IMPROVEMENTS PLAN MCCALL FIRE PROTECTION DISTRICT IMPACT FEE STUDY AND CAPITAL IMPROVEMENT PLAN FINAL REPORT — JUNE, 2022; DIRECTING THE CITY CLERK; AND SETTING AN EFFECTIVE DATE. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of McCall: Section 1: Findings It is hereby found by the City Council of the City of McCall that: 1.1 In 2018 the City Council of the City of McCall adopted by resolution the current edition of The City of McCall In Motion 2018 McCall Area Comprehensive Plan (the "Comprehensive Plan"); and 1.2 The City is experiencing and is affected by considerable growth and development; and 1.3 The McCall Fire Protection District (the "Fire District") provides fire protection and emergency medical services throughout the City; and 1.4 The Fire District has requested the City, pursuant to I.C. § 67-8204A, to enter into an intergovernmental agreement and enact an ordinance to provide for development impact fees for the Fire District; and 1.5 The Idaho Development Impact Fee Act (the "Act") codified at Chapter 82 of Title 67 Idaho Code provides for: • the imposition, collection and expenditure of development impact fees in accordance with the provisions of the Act; and • the promotion of orderly growth and development by establishing uniform standards by which local governments may require that those who benefit from new growth and development pay a proportionate share of the costs of new public facilities needed to serve new growth and development; and Page 1 of 6 Resolution 23-18 Amending the Comprehensive Plan Fire District CIP September 7, 2023 • minimum standards for the adoption of development impact fee ordinances by governmental entities which are authorized to adopt ordinances; and • The contents of a capital improvements plan and the process to be followed for the adoption of a capital improvements plan. 1.6 The City of McCall is a governmental entity as defined in the Act at Idaho Code § 67- 8203(14) and, as provided at Idaho Code § 67-8202(5), has ordinance authority to adopt a development impact fee ordinance whereas, the Fire District does not have ordinance authority and cannot adopt a development impact fee ordinance; and 1.7 The Act provides, at Idaho Code § 67-8204A, that the City when affected by growth and development, has the authority to enter into an intergovernmental agreement with the Fire District for the purpose of agreeing to collect and expend development impact fees for Fire District System Improvements; and 1.8 In anticipation and in consideration of the City Council adopting the Ordinance, which is intended to provide for the collection and expenditure of development impact fees for the Fire District, the City has established and appointed, pursuant to Idaho Code § 67-8205, a Development Impact Fee Advisory Committee; and 1.9 The Fire District retained Anne Wescott of Galena Consulting, a qualified professional in the field of public administration, to prepare an impact fee study and capital improvements plan in consultation with the City of McCall Development Impact Fee Advisory Standing Committee (the "Advisory Committee"); and 1.10 The Advisory Committee has submitted to the City Council the McCall Fire Protection District Impact Fee Study and Capital Improvement Plan Final Report — June, 2022 prepared in accordance with the requirements of Idaho Code § 67-8208 in consultation with the Advisory Committee as provided in Idaho Code §§ 67-8205 and 67-8206(2); and 1.11 Prior to the adoption of the Capital Improvements Plan, the Fire District Board of Commissioners and the City Council of the City of McCall, in accordance with Idaho Code § 67-8206(3), have published notice and held a joint combined public hearing; and 1.12 The Capital Improvements Plan contains all the necessary contents of a capital improvements plan as provided in the Act by Idaho Code § 67-8208; and 1.13 The Fire District has concluded all of its process for the adoption of the Capital Improvements Plan as required in the Act by Idaho Code §§ 67-8205 and 67-8206(3); and 1.14 The Act at I.C. § 67-8208 (1) provides that governmental entities, such as the City, that are required to undertake comprehensive planning pursuant to chapter 65, title 67, Idaho Code, (the "Local Planning Act"), are also required to prepare and adopt a capital improvements plan according to the requirements contained in section 67-6509, Idaho Code, which shall Page 2 of 6 Resolution 23-18 Amending the Comprehensive Plan Fire District CIP September 7, 2023 be included as an element of the comprehensive plan. 1.15 The City Planning and Zoning Commission has provided notice and held a public hearing, in accordance with section 67-6509, and has made its findings of fact, conclusions of law and recommendation to the City Council of approval of the following amendments to the City's Comprehensive Plan: Amending the Public Facilities, Utilities, and Services, Goals + Policies of the Comprehensive Plan by the addition of a new Goal 8 and Policy 8.1 for the purpose of enacting an ordinance and entering into the intergovernmental agreement with the McCall Fire Protection District for the collection and expenditure of development impact fees for the Fire District's systems improvements as identified in the McCall Fire Protection District Impact Fee Study and Capital Improvement Plan Final Report — June, 2022 ( the "Capital Improvements Plan") to be appended to the Comprehensive Plan as Appendix A. 1.16 The City Council has provided notice and held a public hearing in accordance with section 67-6509 and has made its findings of fact, conclusions of law and order authorizing this resolution amending the City Comprehensive Plan as recommended by the City Planning and Zoning Commission. Section 2: Action Amending the City of McCall In Motion 2018 McCall Area Comprehensive Plan. 2.1 The Public Facilities, Utilities, and Services, Goals + Policies of McCall In Motion Comprehensive Plan is hereby amended by the addition thereto of a new Goal 8 and Policy 8.1 to read as follows: Goal 8: Ensure that new growth and development, in the City, pays its proportionate share of the costs of capital improvements necessitated by new growth and development needed by the McCall Fire Protection District to maintain its current level of fire prevention and emergency medical services within the City. Policy 8.1 In partnership with the McCall Fire Protection District, enact a development impact fee ordinance and enter into an intergovernmental agreement for the imposition and collection of McCall Fire Protection District impact fees in accordance with the McCall Fire Protection District Impact Fee Study and Capital Improvement Plan appended as Appendix A to this Plan. Addition to the Appendices: Appendix A- McCall Fire Protection District Impact Fee Study and Capital Improvement Plan Final Report — June, 2022. Page 3 of 6 Resolution 23-18 Amending the Comprehensive Plan Fire District CIP September 7, 2023 Section 3: Direction to City Clerk 3.1 The City Clerk is hereby directed to retain this resolution in the official records of the City and to provide a certified copy of this resolution to the District Administrator of the McCall Fire Protection District and facilitate the inclusion of the above stated amendment in an updated edition of the City of McCall In Motion Comprehensive Plan. Section 4: Effective Date. 4.1 This Resolution shall be in full force and effect after its passage and approval. PASSED BY THE CITY COUNCIL of the City of McCall this 7 day of September, Signed: 2023. Robert S. Giles, Mayor ATTEST: I certify that the above Resolution was duly adopted by the City Council of the City of McCall on September 7, 2023 by the following vote: Ayes: 5 Nos: 0 %,`. .. By �:.1 _iQ►;!��i' .�1�r - �` ��' BessieJo Wag . r, City Cler F. 4 �q d *1,,IDAHO *00 LAHO00 Resolution 23-18 Amending the Comprehensive Plan Fire District CIP September 7, 2023 Page 4 of 6 CITY OF MCCALL Certification of Resolution 23-18 STATE OF IDAHO ) . ss. County of Valley I certify that this is a true and correct copy of Resolution 23-18, an original record of the City of McCall, in the possession of Bessie Jo Wagner, City Clerk of the City of McCall. Dated: (i 1 1 I 2D.1'j LORI A WILKINS NOTARY PUBLIC - STATE OF IDAHO COMMISSION NUMBER 20220789 MY COMMISSION EXPIRES 3-1-2028 [seal] 062.1A. a. 4}A.A,,,__ Signature of Notary Public My commission expires: 31/ /02' Page 5 of 6 Resolution 23-18 Amending the Comprehensive Plan Fire District CIP September 7, 2023 APPENDIX A CAPITAL IMPROVEMENTS PLAN McCall Fire Protection District Impact Fee Study and Capital Improvement Plan Final Report — June, 2022 Page 6 of 6 Resolution 23-18 Amending the Comprehensive Plan Fire District CIP September 7, 2023 FINAL REPORT - June 2022 McCall Fire Protection District Impact Fee Study and Capital Improvement Plan Prepared By Galena Consulting Anne Wescott 1214 South Johnson Boise, Idaho 83705 ALINA ONSULTING Section I. Introduction This report regarding impact fees for the McCall Fire Protection District is organized into the following sections: An overview of the report's background and objectives; A defmition of impact fees and a discussion of their appropriate use; An overview of land use and demographics; A step-by-step calculation of impact fees under the Capital Improvement Plan (CIP) approach; A list of implementation recommendations; and A brief summary of conclusions. Background and Objectives The McCall Fire Protection District hired Galena Consulting to calculate impact fees for Fire and EMS. This document presents impact fees based on the District's demographic data and infrastructure costs before credit adjustment; calculates the District's monetary participation; examines the likely cash flow produced by the recommended fee amount; and outlines specific fee implementation recommendations. Credits can be granted on a case -by -case basis; these credits are assessed when each individual building permit is pulled. Definition of Impact Fees Impact fees are one-time assessments established by local governments to assist with the provision of Capital Improvements necessitated by new growth and development. Impact fees are governed by principles established in Title 67, Chapter 82, Idaho Code, known as the Idaho Development Impact Fee Act (Impact Fee Act). The Idaho Code defines an impact fee as "... a payment of money imposed as a condition of development approval to pay for a proportionate share of the cost of system improvements needed to serve development."' Purpose of impact fees. The Impact Fee Act includes the legislative finding that "... an equitable program for planning and financing public facilities needed to serve new growth and development is necessary in order to promote and accommodate orderly growth and development and to protect the public health, safety and general welfare of the citizens of the state of Idaho. "2 Idaho fee restrictions and requirements. The Impact Fee Act places numerous restrictions on the calculation and use of impact fees, all of which help ensure that local governments adopt impact fees that are consistent with federal law.' Some of those restrictions include: GALENA CONSULTING FINAL REPORT -- PAGE 1 • Impact fees shall not be used for any purpose other than to defray system improvement costs incurred to provide additional public facilities to serve new growth;° • Impact fees must be expended within 8 years from the date they are collected. Fees may be held in certain circumstances beyond the 8 -year time limit if the governmental entity can provide reasonable cause;5 • Impact fees must not exceed the proportionate share of the cost of capital improvements needed to serve new growth and development;' • Impact fees must be maintained in one or more interest -bearing accounts within the capital projects fund.' In addition, the Impact Fee Act requires the following: • Establishment of and consultation with a development impact fee advisory committee (Advisory Committee);8 • Identification of all existing public facilities; • Determination of a standardized measure (or service unit) of consumption of public facilities; • Identification of the current level of service that existing public facilities provide; • Identification of the deficiencies in the existing public facilities; • Forecast of residential and nonresidential growth;9 • Identification of the growth -related portion of the District's Capital Improvement Plan;1° • Analysis of cash flow stemming from impact fees and other capital improvement funding sources;1I • Implementation of recommendations such as impact fee credits, how impact fee revenues should be accounted for, and how the impact fees should be updated over time;12 • Preparation and adoption of a Capital Improvement Plan pursuant to state law and public hearings regarding the same;" and • Preparation and adoption of a resolution authorizing impact fees pursuant to state law and public hearings regarding the same.14 GALENA CONSULTING FINAL REPORT -- PAGE 2 How should fees be calculated? State law requires the District to implement the Capital Improvement Plan methodology to calculate impact fees. The District can implement fees of any amount not to exceed the fees as calculated by the CIP approach. This methodology requires the District to describe its service areas, forecast the land uses, densities and population that are expected to occur in those service areas over the 10 -year CIP time horizon, and identify the capital improvements that will be needed to serve the forecasted growth at the planned levels of service, assuming the planned levels of service do not exceed the current levels of service. ° Only those items identified as growth -related on the CIP are eligible to be funded by impact fees. The governmental entity intending to adopt an impact fee must first prepare a capital improvements plan." Once the essential capital planning has taken place, impact fees can be calculated. The Impact Fee Act places many restrictions on the way impact fees are calculated and spent, particularly via the principal that local governments cannot charge new development more than a "proportionate share" of the cost of public facilities to serve that new growth. "Proportionate share" is defined as ". . . that portion of the cost of system improvements .. . which reasonably relates to the service demands and needs of the project."19 Practically, this concept requires the District to carefully project future growth and estimate capital improvement costs so that it prepares reasonable and defensible impact fee schedules. The proportionate share concept is designed to ensure that impact fees are calculated by measuring the needs created for capital improvements by development being charged the impact fee; do not exceed the cost of such improvements; and are "earmarked" to fund growth -related capital improvements to benefit those that pay the impact fees. There are various approaches to calculating impact fees and to crediting new development for past and future contributions made toward system improvements. The Impact Fee Act does not specify a single type of fee calculation, but it does specify that the formula be "reasonable and fair." Impact fees should take into account the following: • Any appropriate credit, offset or contribution of money, dedication of land, or construction of system improvements; • Payments reasonably anticipated to be made by or as a result of a new development in the form of user fees and debt service payments; • That portion of general tax and other revenues allocated by the District to growth - related system improvements; and • All other available sources of funding such system improvements.'-' Through data analysis and interviews with the District and Galena Consulting identified the share of each capital improvement needed to serve growth. The total projected capital improvements needed to serve growth are then allocated to residential and nonresidential development with the resulting amounts divided by the appropriate growth projections from 2021 to 2031. This is consistent with the Impact Fee Act.'-' Among the advantages of the CIP approach is its establishment of a spending plan to give developers and new residents more certainty about the use of the particular impact fee revenues. GALENA CONSULTING FINAL REPORT -- PAGE 3 Other fee calculation considerations. The basic CIP methodology used in the fee calculations is presented above. However, implementing this methodology requires a number of decisions. The considerations accounted for in the fee calculations include the following: • Allocation of costs is made using a service unit which is "a standard measure of consumption, use, generation or discharge attributable to an individual unit— of development calculated in accordance with generally accepted engineering or planning standards for a particular category of capital improvement."23 The service units chosen by the study team for every fee calculation in this study are linked directly to residential dwelling units and nonresidential development square feet.24 • A second consideration involves refinement of cost allocations to different land uses. According to Idaho Code, the CIP must include a "conversion table establishing the ratio of a service unit to various types of land uses, including residential, commercial, agricultural and industrial."25 In this analysis, the study team has chosen to use the highest level of detail supportable by available data and, as a result, in this study, the fee is allocated between aggregated residential (i.e., all forms of residential housing) and nonresidential development (all nonresidential uses including retail, office, agricultural and industrial). Current Assets and Capital Improvement Plans The CIP approach estimates future capital improvement investments required to serve growth over a fixed period of time. The Impact Fee Act calls for the CIP to ". . . project demand for system improvements required by new service units . . . over a reasonable period of time not to exceed 20 years."76 The impact fee study team recommends a 10 -year time period based on the District's best available capital planning data. The types of costs eligible for inclusion in this calculation include any land purchases, construction of new facilities and expansion of existing facilities to serve growth over the next 10 years at planned and/or adopted service levels.27 Equipment and vehicles with a useful life of 10 years or more are also impact fee eligible under the Impact Fee Act.28 The total cost of improvements over the 10 years is referred to as the "CIP Value" throughout this report. The cost of this impact fee study is also impact fee eligible for all impact fee categories. Fee Calculation In accordance with the CIP approach described above, we calculated fees by answering the following seven questions: 1. Who is currently served by the District? This includes the number of residents and visitors, but is more specifically tied to the number of residential and nonresidential land uses. 2. What is the current level of service provided by the District? Since an important purpose of impact fees is to help the District achieve its planned level of service29, it is necessary to know the levels of service it is currently providing to the community. 3. What current assets allow the District to provide this level of service? This provides a current inventory of assets used by the District, such as facilities, land and equipment. In addition, each asset's replacement value was calculated and summed to determine the total value of the District's current assets. GALENA CONSULTING FINAL REPORT -- PAGE 4 4. What is the current investment per residential and nonresidential land use? In other words, how much of the District's current assets' total value is needed to serve current residential households and nonresidential square feet? 5. What future growth is expected in the District? How many new residential households and nonresidential square footage will the District serve over the CIP period? 6. What new infrastructure is required to serve future growth? For example, how many additional stations and apparatus will be needed by the McCall Fire Protection District within the next ten years to achieve the planned level of service of the District?3° 7. What impact fee is required to pay for the new infrastructure? We calculated an apportionment of new infrastructure costs to future residential and nonresidential land -uses for the District. Then, using this distribution, the impact fees were determined. Addressing these seven questions, in order, provides the most effective and logical way to calculate impact fees for the District. In addition, these seven steps satisfy and follow the regulations set forth earlier in this section. Exhibits found in Section III of this report detail all capital improvements planned for purchase over the next ten years by the District. See Section 67-8203(9), Idaho Code. "System improvements" are capital improvements (i.e., improvements with a useful life of 10 years or more) that, in addition to a long life, increase the service capacity of a public facility. Public facilities include fire, emergency medical and rescue facilities. See Sections 67-8203(3), (24) and (28), Idaho Code. 2 See Section 67-8202, Idaho Code. 3 As explained further in this study, proportionality is the foundation of a defensible impact fee. To meet substantive due process requirements, an impact fee must provide a rational relationship (or nexus) between the impact fee assessed against new development and the actual need for additional capital improvements. An impact fee must substantially advance legitimate local government interests. This relationship must be of "rough proportionality." Adequate consideration ofthe factors outlined in Section 67-8207(2) ensure that rough proportionality is reached. See Banbury Development Corp. v. South Jordan, 631 P.2d 899 (1981); Dollan v. District of Tigard, 512 U.S. 374 (1994). 4 See Sections 67-8202(4) and 67-8203(29), Idaho Code. 5 See Section 67-8210(4), Idaho Code. See Sections 67-8204(1) and 67-8207, Idaho Code. See Section 67-8210(1), Idaho Code a See Section 67-8205, Idaho Code. 9 See Section 67-8206(2), Idaho Code. 10 See Section 67-8208, Idaho Code. 6 7 11 See Section 67-8207, Idaho Code. 12 See Sections 67-8209 and 67-8210, Idaho Code. 13 See Section 67-8208, Idaho Code. 14 See Sections 67-8204 and 67-8206, Idaho Code. 15 As a comparison and benchmark for the impact fees calculated under the Capital Improvement Plan approach, Galena Consulting also calculated the District's current level of service by quantifying the District's current investment in capital improvements, allocating a portion of these assets to residential and nonresidential development, and dividing the resulting amount by current housing units (residential fees) or current square footage (nonresidential fees). By using GALENA CONSULTING FINAL REPORT -- PAGE 5 current assets to denote the current service standard, this methodology guards against using fees to correct existing deficiencies. 17 See Section 67-8208, Idaho Code. 19 See Section 67-8203(23), Idaho Code. 20 See Section 67-8207, Idaho Code. 21 The impact fee that can be charged to each service unit (in this study, residential dwelling units and nonresidential square feet) cannot exceed the amount determined by dividing the cost of capital improvements attributable to new development (in order to provide an adopted service level) by the total number of service units attributable to new development. See Sections 67-8204(16), 67-8208(1(f) and 67-8208(1)(g), Idaho Code. 22 See Section 67-8203(27), Idaho Code. 23 See Section 67-8203(27), Idaho Code. 24 The construction of detached garages alongside residential units does not typically trigger the payment of additional impact fees unless that structure will be the site of a home -based business with significant outside employment. 25 See Section 67-8208(1)(e), Idaho Code. 26 See Section 67-8208(1)(h). 27 This assumes the planned levels of service do not exceed the current levels of service. The Impact Fee Act allows a broad range of improvements to be considered as "capital" improvements, so long as the improvements have useful life of at least 10 years and also increase the service capacity of public facilities. See Sections 67- 8203(28) and 50-1703, Idaho Code. 28 29 This assumes that the planned level of service does not exceed the current level ofservice. 30 This assumes the planned level of service does not exceed the current level of service. GALENA CONSULTING FINAL REPORT -- PAGE 6 Section II. Land Uses The McCall Fire Protection District serves the population of the City of McCall and a portion of unincorporated Valley County as indicated in Exhibit II -1 below. Exhibit II -1. District Boundaries The following Exhibit II -2 presents the current and estimated future population for the District based on U.S. Census data through 2020. Exhibit II -2. Current and Future Population within the boundaries of the McCall Fire Protection District 2021 2031 Net Growth Annual Growth Rate Population 5,411 Unincorporated 1,725 City Of McCall 3,686 6,709 2,138 4,571 1,299 2.4% 414 2.4% 885 2.4% The District currently has approximately 5,411 persons residing within its service boundary. Over the next ten years, it is estimated the District will grow by approximately 1,299 people, or at an annual growth rate of 2.4%. Population alone is not an accurate indicator of growth within the District, however, as McCall is a resort community and many of the residential units are short - GALENA CONSULTING FINAL REPORT -- PAGE 7 term rentals. As these units are not owner -occupied, the inhabitants are not included within the U.S. Census as part of the residential population. These units do drive demand for fire and EMS services and need to be considered within the study calculations. To more accurately project growth, the study team determined the number of projected new households and nonresidential square footage from 2021 through 2031 for the District based on data from the Valley County Assessor's Office, the Valley County Planning Department, the City of McCall, Idaho Power, regional real estate market reports and recommendations from District Staff and the Impact Fee Advisory Committee. The following Exhibit II -3 presents the current and future number of residential units and nonresidential square feet projected for the District. Exhibit II -3. Current and Future Land Uses, McCall Fire Protection District 2021 2031 Net Growth Net Growth in Percent of Total Square Feet "' Growth in SF Population 5,411 6,709 1,299 Residential (in units) 5,838 7,239 1,401 3,502,800 94% Nonresidential (in square feet) 875,700 1,085,868 210,168 210,168 6% Total Square Footage Growth = 3,712,968 100% As shown above, the McCall Fire Protection District is expected to grow by approximately 1,401 residential units and about 210,168 nonresidential square feet over the next ten years. Ninety-four percent of this growth is attributable to residential land uses, while the remaining six percent is attributable to nonresidential growth. These growth projections will be used in the following sections to calculate the appropriate impact fees for the District. Demographic and land -use projections are some of the most variable and potentially debatable components of an impact fee study, and in all likelihood the projections used in our study will not prove to be 100 percent correct. The purpose of the Advisory Committee's annual review is to account for these inconsistencies. As each CIP is tied to the District's land use growth, the CIP and resulting fees can be revised based on actual growth as it occurs. GALENA CONSULTING FINAL REPORT -- PAGE 8 Section III. Impact Fee Calculation In this section, we calculate fire and EMS impact fees for the McCall Fire Protection District according to the seven -question method outlined in Section I of this report. 1. Who is currently served by the McCall Fire Protection District? As shown in Exhibit II -3, the District currently serves 5,838 residential units and approximately 875,700 square feet of nonresidential land use. 2. What is the current level of service provided by the McCall Fire Protection District? The McCall Fire Protection District provides a response time of 6.15 minutes District -wide. Response times are approximately 4.99 minutes within the City of McCall, and can be longer than 6.15 minutes for other parts of the unincorporated County. As the number of residents and visitors to the District grows, additional infrastructure and equipment will be needed to sustain this level of service. Based on conversations with District staff, it is our understanding that the planned level of service is equal to a continuation of the current level of service. 3. What current assets allow the McCall Fire Protection District to provide this level of service? The following Exhibit III -1 displays the current assets of the McCall Fire Protection District utilized to provide fire protection and EMS response. Exhibit III -1. CurrentAssets—McCaII Fire Protection District Type of Capital Infrastructure Square Replacement Feet Value Facilities McCall Fire Station 81 Deinhard Lane 14,500 58,700,000 Vehicles/Apparatus 2 Engines $1,300,000 2 Ambulances 5470,000 Pumper Tender $400,000 Tender $200,000 Squad 5100,000 3 Support Vehicles $160,000 Fire Boat $50,000 3 Snowmobiles $45,000 UTV 525,000 Equipment 2 Stryker Auto load $40,000 2 Stryker Cots 544,000 3 Cardiac Monitors 5120,000 2 CPR Machines 530,000 Snowmobile Trailer 510,000 UTV Trailer $7,000 Extrication Tools $30,000 30 SCBAs 5180,000 Plus Cost of Fee -Related Research Impact Fee Study Grand Total $11,911,000 515,000 511,926,000 GALENA CONSULTING FINAL REPORT -- PAGE 9 As shown above, the District currently owns almost $12 million of capital assets. These assets are used to provide the District's current level of service for fire and EMS response. 4. What is the current investment per residential unit and nonresidential square foot? The McCall Fire Protection District has already invested $1,927 per existing residential unit and $0.77 per existing nonresidential square foot in the capital necessary to provide the current level of service for fire protection and emergency medical response. These figures are derived by allocating the value of the District's current assets among the current number of residential units and nonresidential square feet. We will compare our final impact fee calculations with these figures to determine if the two results will be similar; this represents a "check" to see if future District residents will be paying for infrastructure at a level commensurate with what existing District residents have invested in infrastructure. 5. What future growth is expected in the McCall Fire Protection District? As shown in Exhibit II -3, the McCall Fire Protection District is expected to grow by approximately 1,401 residential units and 210,168 square feet of nonresidential land use over the next ten years. 6. What new infrastructure is required to serve future growth? The following Exhibit III -2 indicates the density of calls for both fire protection and emergency medical services for the McCall Fire Protection District in 2018-2019. Exhibit III -2. Incident Density 2018-2019 — Fire and EMS Calls for Service EMS CALLS 1]Oi41 101 v) • insider, 114.11 j I • 1S/sq. mile _ 16 . e)/5q.... _ ' '5/5q. Mile I a J/5q. Mie - "C/Eq. mile FINAL REPORT -- PAGE 10 GALENA CONSULTING As shown above, the highest incidence of calls for service come from within the City of McCall and its immediate surroundings. The existing Station #1 is well -located geographically to respond to the areas of highest density within the desired amount of time. Of greater concern to the District than location, however, is the issue of concurrency of calls. The District participated in a study of the Valley County EMS District conducted by ESCI in 2020 in partnership with Valley County, the Donnelly Fire Protection District and the Cascade Fire Protection District. This study determined that 15% of the time the District was responding to more than one call (175 calls out of 1,147 in 2019). Without adequate staffing and apparatus, concurrent incidents result in response times beyond standards to reduce loss of life and property. It was recommended that an additional ambulance be acquired as a reserve ambulance to be shared among the three fire and EMS districts, and that the McCall Fire Protection District move toward staffing an additional ambulance at Station #1. The District intends to add nine firefighter/EMTs, increasing the size of each shift from four to seven, and the minimum manning from the current model of three firefighter/EMT's to six. This will would allow the district to staff an engine, and two ambulances with at least two people on each apparatus to further ensure the level of service does not decline as growth occurs. The McCall Fire Protection District has developed its capital improvement plans (CIPs) based on the recommendations of the ESCI study and its increased staffing initiative. The following Exhibit III -3 displays the capital improvements planned for purchase by the McCall Fire Protection District over the next ten years for fire protection response. GALENA CONSULTING FINAL REPORT -- PAGE 11 Exhibit III -3. McCall Fire Protection District CIP 2021 to 2031 Type of Capital Infrastructure CIP Growth Amount to Value Portion Include in Fees Amount from General Fund Facilities Addition to Station #1 to accommodate 9 additional FF/EMTs for growth $ 2,500,000 100% $ 2,500,000 Vehicles Additional command vehicle for growth $ 60,000 100% $ Additional Ambulance - shared by 3 districts $ 78,333 100% $ Engine Replacement $ 650,000 0% $ Equipment PPEs/Radios for 9 additional Firefighters 1 Stryker Cot 1 Stryker Auto Load $ 60,000 78,333 45,000 100% $ 45,000 22,000 100% $ 22,000 20,000 100% $ 20,000 650,000 Total Infrastructure $ 3,375,333 $ 2,725,333 $ 650,000 Plus Cost of Fee -Related Research Impact Fee Study $ 15,000 100% $ 15,000 Grand Total $ 3,390,333 $ 2,740,333 $ 650,000 As shown above, the District plans to purchase approximately $3.4 million in capital improvements over the next ten years, $2.7 million of which is impact fee eligible. These new assets will allow the District to continue its current level of fire protection and emergency medical service as the community grows. The primary impact fee eligible expenditures are the expansion of Station #1 to accommodate living and dormitory space for the 9 additional firefighters/EMTs recommended in the ESCI study, the District's proportional share of an additional ambulance and equipment to be used by all three districts providing EMS in Valley County, personal protective equipment and radios for the 9 firefighters/EMTs, and an additional command vehicle for the expanded crew. 100% of these expenditures are necessitated by growth and are required to maintain the current level of service. The replacement of the existing engine is not impact fee eligible and must be funded through other sources. The remaining $650,000 is the price for the District to replace an existing engine. Replacement of existing capital is not eligible for inclusion in the impact fee calculations. The District will therefore have to use other sources of revenue including all of those listed in Idaho Code 67- 8207(iv)(2)(h). The District has identified property tax revenue as the source for funding non - growth -related capital improvements. It should be noted that the participation amount associated with purely non -growth improvements like apparatus replacements is discretionary. The District can choose not to fund these capital improvements (although this could result in a decrease in the level of service if the deferred repairs or replacements were urgent). GALENA CONSULTING FINAL REPORT -- PAGE 12 7. What impact fee is required to pay for the new capital improvements? The following Exhibit III -4 takes the projected future growth from Exhibits II -3 and the growth - related CIP for Fire from Exhibit III -3 to calculate fire and EMS impact fees for the McCall Fire Protection District. Exhibit III -4. Impact Fee Calculation, McCall Fire Protection District Impact Fee Calculation Amount to Include in Fee Calculation $ 2,740,333 Distribution of Future Land Use Growth Residential Nonresidential 94% 6% Future Assets by Land Use Residential $ 2,585,220 Nonresidential $ 155,113 Future Land Use Growth Residential Nonresidential 1,401 210,168 Impact Fee per Unit Residential $ 1,845 Nonresidential $ 0.74 As shown above, we have calculated impact fees for the McCall Fire Protection District at $1,845 per residential unit and $0.74 per non-residential square foot. In comparison, as indicated in question #4 above, property taxpayers within the District have already invested $1,927 per residential unit and $0.78 per nonresidential square foot in the capital inventory necessary to provide today's level of service. The District cannot assess fees greater than the amounts shown above. The District may assess fees lower than these amounts, but would then experience a decline in service levels unless the District used other revenues to make up the difference. GALENA CONSULTING FINAL REPORT -- PAGE 13 Section IV. Fee Analysis and Administrative Recommendations A comparison of the calculated Fire and EMS impact fees to similar fees being assessed by fire and EMS departments/districts within Southwest Idaho is shown in Exhibit IV -1: Exhibit IV -1. Impact Fee Comparison McCall Fire Cascade Fire Ada County/ Canyon Co/ Gem County/ Twin Falls Co/ Elmore Co/ Payette Co/ District District Kuna Fire Nampa Fire Gem Fire Rock Creek Mtn Home Parma DRAFT DRAFT District District District Fire District Fire District Fire District DRAFT DRAFT DRAFT Fire and EMS per Residential Unit $ 1,845 $ 2,891 $ 1,973 $ 1,567 $ 1,808 $ 1,661 $ 2,111 $ 2,316 per Non -Residential sf $ 0.74 $ 1.16 $ 0.80 $ 0.63 $ 0.71 $ 0.66 $ 1.80 $ 1.90 Some communities express concern that impact fees will stifle growth. Empirical data indicates impact fees are not a primary reason for a decision to build or not build in a particular area. Factors including the price of land and construction, market demand, the availability of skilled workers, access to major transportation modes, amenities for quality of life, etc. all weigh more heavily in decisions to construct new homes or businesses, as well for business relocation. Ultimately the impact fee, which is paid at the time of building permit, is passed along to the buyer in the purchase price or wrapped into a lease rate. Therefore, in a market with a high demand for development, an impact fee higher than other jurisdictions is unlikely to slow growth. An impact fee program will enable the District to plan for growth without decreasing its service levels (response time), which can decrease buyer satisfaction and cause property insurance premiums to increase. It will also allow the District to collect a proportionate share of the cost of capital improvements from growth instead of funding future capital through property taxes. As the District Commission evaluates whether or not to adopt the Capital Improvement Plan and impact fee presented in this report, we also offer the following information regarding District participation in funding, and implementation recommendations for your consideration. Implementation Recommendations The following implementation recommendations should be considered: Intergovernmental Agreements. The McCall Fire Protection District is enabled under Idaho Code as a governmental entity to adopt impact fees. However, because impact fees are paid upon building permit, and the District does not participate in this process, it needs another governmental entity to collect these fees on its behalf. Idaho Code 67-8204(a) authorizes the District to enter into an intergovernmental agreement with the City of McCall and Valley County to collect fire and EMS fees on their behalf. In the case that any one of these jurisdictions chooses not to collect the fees on the Fire District's behalf, inequities will result. Developers will have to pay an impact fee in one part of the District but not another, and the growth in the non -participating jurisdictions will essentially be subsidized by the growth in the participating region. Should this occur, it is recommended that the fee calculation be revised to more accurately reflect demand from the participating jurisdictions. Alternatively, jurisdictions not wishing to collect impact fees on behalf of the District may be encouraged to include the payment of the fee amount in their development agreements to be paid directly to the District. GALENA CONSULTING FINAL REPORT -- PAGE 14 Capital Improvements Plan. Should the Advisory Committee recommend this study to the District Commission and should the Commission adopt the study, the District should also formally adopt this Capital Improvement Plan. While not subject to the procedures of the Local Land Use Planning Act (LLUPA), the adoption of the Capital Improvement Plan would comply with the Act's requirements of other governmental entities to adopt capital improvement plans into a Comprehensive Plan as part of the adoption of impact fees. Each participating jurisdiction will need to also adopt the Capital Improvement Plan into their Comprehensive Plan via amendment. Impact Fee Ordinance. Following adoption of the Capital Improvement Plan, the Commission should review the proposed Impact Fee Ordinance for adoption via resolution as reviewed and recommended by the Advisory Committee and legal counsel. Each participating jurisdiction will also need to adopt the impact fee ordinance. Advisory Committee. The Advisory Committee is in a unique position to work with and advise Commission and District staff to ensure that the capital improvement plans and impact fees are routinely reviewed and modified as appropriate. Impact fee service area. Some municipalities have fee differentials for various zones under the assumption that some areas utilize more or less current and future capital improvements. The study team, however, does not recommend the District assess different fees by dividing the areas into zones. The capital improvements identified in this report inherently serve a system -wide function. Specialized assessments. If permit applicants are concerned they would be paying more than their fair share of future infrastructure purchases, the applicant can request an individualized assessment to ensure they will only be paying their proportional share. The applicant would be required to prepare and pay for all costs related to such an assessment. Donations. If the District receives donations for capital improvements listed on the CIP, they must account for the donation in one of two ways. If the donation is for a non- or partially growth -related improvement, the donation can contribute to the District's General Fund participation along with more traditional forms, such as revenue transfers from the General Fund. If, however, the donation is fora growth -related project in the CIP, the donor's impact fees should be reduced dollar for dollar. This means that the District will either credit the donor or reimburse the donor for that portion of the impact fee. Credit/reimbursement. If a developer constructs or contributes all or part of a growth -related project that would otherwise be financed with impact fees, that developer must receive a credit against the fees owed for this category or, at the developer's choice, be reimbursed from impact fees collected in the future." This prevents "double dipping" by the District. The presumption would be that builders/developers owe the entirety of the impact fee amount until they make the District aware of the construction or contribution. If credit or reimbursement is due, the governmental entity must enter into an agreement with the fee payer that specifies the amount of the credit or the amount, time and form of reimbursement!' Impact fee accounting. The District should maintain Impact Fee Funds separate and apart from the General Fund. All current and future impact fee revenue should be immediately deposited into this account and withdrawn only to pay for growth -related capital improvements of the same category. General Funds should be reserved solely for the receipt of tax revenues, grants, user fees and associated interest earnings, and ongoing operational expenses including the GALENA CONSULTING FINAL REPORT -- PAGE 15 repair and replacement of existing capital improvements not related to growth. Spending policy. The District should establish and adhere to a policy governing their expenditure ofmonies from the Impact Fee Fund. The Fund should be prohibited from paying for any operational expenses and the repair and replacement or upgrade of existing infrastructure not necessitatedby growth. In cases when growth -related capital improvements are constructed, impact fees are an allowable revenue source as long as only new growth is served. In cases when new capital improvements are expected to partially replace existing capacity and to partially serve new growth, cost sharing between the General Fund or other sources of revenue listed in Idaho Code 67-8207(I)(iv), (2)(h) and Impact Fee Fund should be allowed on a pro rata basis. Update procedures. The District is expected to grow rapidly over the 10 -year span of the CIPs. Therefore, the fees calculated in this study should be updated annually as the District invests in additional infrastructure beyond what is listed in this report, and/or as the District's projected development changes significantly. Fees can be updated on an annual basis using an inflation factor for building material from a reputable source such as McGraw Hill's Engineering News Record. As described in Idaho Code 67-8205(3)(c)(d)(e), the Advisory Committee will play an important role in these updates and reviews. 37 See Section 67-8209(3), Idaho Code. 38 See Section 67-8209(4), Idaho Code GALENA CONSULTING FINAL REPORT -- PAGE 16