City Council

River Heights City COUNCIL MEETING AGENDA Tuesday, December 10, 2019 Notice is hereby given that the River Heights City Council will hold its council meeting beginning at 5:15 p.m. in the River Heights City Office Building at 520 S 500 E. Opening Remarks(Wilson)and Pledge of Allegiance (Clausen) Adoption of Previous Minutes and Agenda Public Hearing for an Ordinance Adopting an Impact Fee Facilities Plans and an Impact Fee Enactment for Wastewater, and Notice of Public Hearing Approve Bills to be Paid Eagle Project Presentation by Gabe Rasmussen Adjourn Poste^this 5^^ day of December 2019 Sheila Lind, Rtfcorder Attachments for this meeting and drafts of previous meeting minutes can be found on the State's Public Notice Website (pmn.utah.gov) In compliance with the American Disabilities Act, individuals needing special accommodations (including auxiliarv- communicative aids and services) during this meeting should notify Sheila Lind,(435) 770-2061 at least 24 hours before the meeting. 520 South 500 East River Heights, Utah 84321 Phone & Fax (435) 752-2646  River Heights City 3 Council Meeting 4 5 December 10,2019 6 7 8 Present: Mayor Todd Rasmussen 9 Council members: Doug Clausen 10 Robert"K" Scott U Elaine Thatcher 12 Dixie Wilson 13 Blake Wright 14 15 Recorder Sheila Lind 16 Finance Director Cliff Grover 17 18 Excused: Public Works Director Clayten Nelson 19 Treasurer Wendy Wilker 20 21 Others Present: Mike Jablonski 22 The following motions were made during the meeting: 25 26 Motion #1 27 Councilmember Clausen moved to "adopt the minutes ofthe council meeting of November 28 26, 2019 and the evening's agenda." Councilmember Thatcher seconded the motion, which passed 29 with Clausen, Scott, Thatcher, Wilson and Wright in favor. No one opposed. 30 31 Motion #2 32 Councilmember Thatcher moved to "accept Ordinance 6-2-19, An Ordinance Adopting an 33 Impact Fee Facilities Plans and an Impact Fee Enactment for Wastewater, and Notice ofPublic 34 Hearing." Councilmember Clausen seconded the motion, which carried with Clausen, Scott, Thatcher 35 and Wright in favor. Wilson opposed. 36 37 Motion #3 38 Councilmember Clausen moved to "approve the minutes for the November 26,2019 Council 39 Meeting and the evening's agenda." Councilmember Scott seconded the motion, which carried with 40 Clausen, Scott, Thatcher, Wilson and Wright in favor. No one opposed. 41 42 43 44 A*: IViiiiyi' IMghm CUiji Coyimil MiiiiiHiHir 520 South 500 East River Heights, Utah 84321 Phone & Fax (435) 752-2646 47 Proceedings ofthe Meeting: 48 49 The River Heights City Council met at 5:15 p.m. in the Ervin R. Crosbie Council Chambers in 50 the River Heights City Building on Tuesday, December 10,2019 for their condensed December 51 council meeting. 52 Opening Remarks and Pledge of Allegiance: Councilmember Wilson opened the meeting with 53 a thought and expressions of gratitude for her time served on the council and Councilmember Clausen 54 led the group in the Pledge of Allegiance. 55 Councilmember Scott also thanked everyone for their support and expressed his gratitude for 56 those he was able to work with on the council. 57 Adoption ofPrevious Minutes and Agenda: Minutes for the November 26,2019 meeting were 58 reviewed. 59 Councilmember Clausen moved to "adopt the minutes ofthe council meeting of 60 November 26,2019 and the evening's agenda." Councilmember Thatcher seconded the motion, 61 which passed with Clausen, Scott, Thatcher, Wilson and Wright in favor. No one opposed. 62 Public Hearing for An Ordinance Adopting an Impact Fee Facilities Plans and an Impact Fee 63 Enactment for Wastewater. and Notice ofPublic Hearing: Councilmember Clausen summarized the 64 ordinance by stating River Heights will charge a wastewater impact fee only for new construction 65 (residential and commercial). Councilmember Wilson asked how long the impact fee will be charged. 66 Mayor Rasmussen will check with the Rate Committee but thought it would be charged until the debt 67 is paid off. He pointed out that the ordinance may need to be modified if the city allows a different 68 zone, such as multi-family housing. 69 Councilmember Thatcher moved to "accept Ordinance 6-2-19, An Ordinance Adopting 70 an Impact Fee Facilities Plans and an Impact Fee Enactment for Wastewater, and Notice of 71 Public Hearing." Councilmember Clausen seconded the motion, which carried with Clausen, 72 Scott, Thatcher and Wright in favor. Wilson opposed. 73 Councilmember Wilson explained her opposition: She felt this ordinance will put a chill on 74 building. Mayor Rasmussen was supportive of new development having to pay for their impact to the 75 wastewater system. He pointed out that the equivalent residential unit will need to be revisited with 76 the addition ofcommercial and/or multi-unit dwellings that come into the city, which could be done by 77 addendum to the ordinance. 78 Mike Jablonski was in attendance to express gratitude for the council's service to the citizens 79 and wished everyone a Merry Christmas. 80 Approve Bills to be Paid: The list of bills was reviewed. 81 Councilmember Clausen moved to "approve the minutes for the November 26,2019 82 Council Meeting and tbe evening's agenda." Councilmember Scott seconded the motion, which 83 carried with Clausen, Scott, Thatcher, Wilson and Wright in favor. No one opposed. 84 Recorder Lind announced the swearing in for those who were recently elected will be held on 85 Monday, January 6 at 7:00 p.m. 86 Mayor Rasmussen Reported 87 • He has talked with Todd Beutler from the Cache Valley Transit District about Rodger Pond's 88 passing. Mr. Rasmussen told him he will have someone to replace Mr. Pond by the first ofthe 89 year. He will appoint a council member to serve on that board. 90 • He has met with the Mike Liechty and Dale Hansen of the school district concerning them 91 giving the Old School to the city. They are currently constructing portables at Sky View to 92 house post high students, which should be finished in January. The hearing specialist in the River Heights City Council Meeting, 12/10/19  Old School will need to stay until June. They set a tentative date of March 1 for the city to start any construction. Engineer Rasmussen has most of the design work done for the modification 95 of the gym for a public works shop. Once the plans are finished, they will put it out for bid. 96 It's possible that the city public works employees may start some of the work earlier, to save 97 some expense. 98 • He reminded that the RFP is out for the Old Church and is due December 31. 99 • He has asked State Representative Casey Snyder if he would come to council meeting to 100 discuss taxation. Mr. Snyder is willing to meet in December. If he picks a date, he'll let the 101 council know. 102 Eagle project Presentation bv Gabe Rasmussen: Gabe Rasmussen didn't show up. 103 The meeting adjourned at 5:45 p.m 104 105 106 107 108 m wh 109 Sheila Lind, Re ler 11 A. Rasmussen, Mayor River Heights City Council Meeting, 12/10/19  River Heights City Bills To Be Paid 12/10/2019 Payee Description Admin. P&Z Parks/Rec Pub. Safety Com. Aff. Roads Water Sewer Total 1 Caselle, Inc. Monthly Support $91.69 $91.66 $91.65 $275.00 2 Chris Milbank Training $60.00 $60.00 3 Chris Milbank Planning Commission $60.00 $60.00 4 Cindy Schaub Planning Commission $60.00 $60.00 5 Core & Main Water Repair Clamp $298.87 $298.87 6 Heather Lehnig Planning Commission $60.00 $60.00 7 IPACO Snow Plow Bolts $55.20 $55.20 8 Lacal Equipment, Inc. Rubber Snow Blade $367.38 $367.38 9 Lance Pitcher Planning Commission $36.00 $36;00 10 Nate Norman Utility Overpayment $118.10 $118.10 11 National Equipment Services New Plow Set Up $225.73 $225.73 12 Nicole Tolson Utility Overpayment $135.83 $10.27 $22.16 $420.59 $132.69 $721.54 13 Noel Cooley Planning Commission $48.00 $48.00 14 Sam's Club Annual Membership $107.00 $107.00 15 Secure Instant Payment, LLC Monthly Service Fee $14.07 $14.07 $14.06 $42.20 16 Sheila Lind Christmas Tree-Donuts $143.84 $143.84 17 Specialized Pest Control Fertilizer Application October Saddle Park $147.25 $147.25 18 Thomas Petroleum Fuel for City Vehicles $43.23 $43.23 $43.23 $43.23 $172.92 19 Verizion Wireless Monthly City Cell Phones $61.97 $61.97 $62.00 $185.94 20 Xerox Corporation Monthly Billing Usage $16.74 $16.74 21 22 23 24 25 . 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 Page 1 SubTotals $487.30 $264.00 $190.48 $10.27 $143.84 $713.70 $1,048.49 $343.63 $3,201.71 Page 1 Total Amount to b $3,201.71  ?M mr VioUVi/ix^^. txi\AY\u\ River Heights City Bills To Be Paid 0 _^//ln 12/20/2019 •em /t| I r Payee Description Admin. P&Z Parks/Rec Pub. Safety Com. Aff. Roads Water Sewer Total 1 AG-Trac Sprinkler Winterization $400.00 $400.00 2 Bear River Health Dept. Water Coliform Testing $80.00 $80.00 3 BRAG Area Recorder Membership Annual Membership $35.00 $35.00 4 Cache Mayor's Association 2020 Membership Dues $350.00 $350.00 5 Cache Valley Publishing Waste Water Impact Fees $49.06 $49.06 6 Christine Roberts CPR Training $13.46 $13.46 7 Dominion Energy Gas $68.57 $87.63 $80.54 $274.16 $80.55 $591.45 8 Forsgren & Associates General Consulting & Lower Well Impro $315.00 $595.00 $910.00 9 Freedom Mailing Bill Processing $144.20 $48.07 $48.07 $240.34 10 Logan City Water Consumption $137.67 $137.67 11 Mark Perry Utility Overpayment Refund $99.00 $99.00 12 Pro-Log Irrigation Water Shares Annual Dues $2,750.00 $2,750.00 13 Rocky Mountain Power Electricity $94.58 $60.02 $25.45 $1,312.06 $1,769.71 $26.71 $3,288.53 14 Sharlie Gallup Elected Officials Training $60.00 $60.00 15 Thomas Petroleum Fuel for City Vehicles $31.37 $31.38 $31.38 $31.38 $125.51 16 Utah Local Government Trust Workers Comp. Monthly $21.54 $33.09 $101.04 $127.98 $134.72 $418.37 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 Page 1 SubTotals $1,088.89 $612.11 $38.91 $1,525.02 $5,912.97 $370.49 $9,548.39 Page 1 Total Amount to b I $9,548.39 December 10,2019 To: River Heights City, Mayor and Council From: MikeJablonski 125 East 500 South River Heights, Utah 84321 435-752-4200 (office) Re: Comments for the Public Hearing regarding "An Ordinance Adopting an Impact Fee Facilities Plans and an Impact Fee Enactment for Wastewater" Please accept these written comments in lieu of verbal comments at today's public hearing. I have reviewed the proposed ordinance for the impact fee(s)for wastewater In River Heights. 1 think it is reasonable and appropriate for River Heights to access and charge the proposed fee(s), and to administer the fee(s), as stated In the proposed ordinance. I suggest that you pass this ordinance. Respectfully, MikeJablonski  ORDINANCE NO.6-2019 J AN ORDINANCE ADOPTING AN IMPACT FEE FACILITIES PLANS AND AN IMPACT FEE ENACTMENT FOR WASTEWATER,AND NOTICE OF PUBLIC HEARING WHEREAS,the City of River Heights (the "City") is a political subdivision of the State of Utah, authorized and organized under applicable provisions of Utah law; and WHEREAS,the City has legal authority, pursuant to Title 11, Chapter 36a of the Utah Code Annotated, as amended ("impact Fees Act" or "Act"), to impose development impact fees as a condition of development approval, which impact fees are used to.defray capital infrastructure costs attributable to new Development Activity; and WHEREAS,the City does not currently charge an impact fee for wastewater treatment; WHEREAS, wastewater treatment service for the City is provided by Logan City Corporation ("Logan City") pursuant to interlocal agreements dated February 13,2018; collectively referred to as the "Logan City Agreements"; and WHEREAS,the City desires to implement an impactfee for wastewater treatment, referred to hereafter as "Wastewater impact Fee" In accordance with applicable provisions of the Impact Fees Act in order to appropriately assign capital infrastructure costs to development in an equitable and proportionate manner as more particularly provided herein; and WHEREAS,the proposed Wastewater Impact Fee is based upon Logan City's Regional Wastewater impact Fees-Facilities Plan and Impact Fee Analysis, a copy of which is attached as Exhibit A, which the City Council hereby finds to be a reasonable plan that otherwise complies with the common law and the Act; and WHEREAS,the proposed Wastewater impact Fee established by this ordinance is reasonable related to the cost of providing such public facilities necessitated by anticipated future growth within the City or are reasonably related to public facility costs previously incurred by the City and/or Logan City and said fee does not exceed the highest fee justified by the impact Fee Analysis prepared by Logan City; and WHEREAS,the City has provided the required notice and public hearing requirements as' established under the Act and related statutes; and WHEREAS,a public hearing was held before the.City Council on December 10,2019 to receive public input and comment regarding the proposed Wastewater Impact Fee.  NOW,THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF RIVER HEIGHTS CITY, STATE OF UTAH, AS FOLLOWS: SECTION I Definitions 1. "System Improvements" means: a. Existing public facilities that are: i. Identified in the Impact Fee Analysis ("IFA"), attached as Exhibit "A"; and ii. Designed to provide services to the service areas within the community at large; and b. Future public facilities that are intended to provide services to service areas within the community at large. 2. "Equivalent Residential Unit" means that unit of demand that has an impact on the wastewater treatment infrastructure of Logan City that is equivalent to a single-family residence with a flow of 245 gallons per day. 3. "Public Facilities" for purposes of this ordinance means only the following impact fee related facilities that have a life expectancy of 10 or more years and are owned by Logan City, and which are operated on behalf of the City: a. Wastewater collection and treatment facilities SECTION II Imoact Fee Analysis. Service Area 1. The City Council hereby adopts the Impact Fee Facilities Plan (IFFP) and Impact Fee Analysis (IFA) prepared for Logan City by Lewis Young Robertson & Burningham, Inc. 2. A copy of the IFA is included as Exhibit "A". 3. The entire area of the City is hereby designated as one service area with respect to wastewater treatment facilities. SECTION III The IFFP and IFA as set forth in Exhibit "A" is hereby adopted in its entirety by the City in accordance with applicable provisions of the impact Fees Act. SECTION IV Wastewater Impact Fee 1. A Wastewater Impact Fee is hereby established and imposed as a condition of the issuance of a building permit by the City for any development activity which creates additional demand and need for public facilities in accordance with the Act. The Wastewater Impact Fee shall be $2,433.00 per Equivalent Residential Unit. The non-standard Wastewater Impact Fee is calculated as by determining the Estimated Flow divided by 245GPD multiplied by $2,433.00. 2. The Non-Standard Impact Fee is defined as commercial and industrial facilities, public facilities, multifamily residential units(more than one dwelling sharing one connection), and any other user which may create different impact than what is standard for its land use. The  City of Logan Environmental Director or his designee Is responsible for the assessment and adjustment of the non-Standard impact Fee. 3. Logan City or the Environmental Services Department will collect the Wastewater Impact Fee at the time of building permit application. All impact fees must be paid in full before a building permit is issued. 4. Logan City and/or the Logan City Environmental Director is authorized to adjust the standard impact fee described above at the time the fee is paid in order to: a. Respond to: i. Unusual circumstances in specific cases; or ii. A request for a prorhpt and Individualized impact fee review for the development activity of the state, a school district, or a charter school and an offset or credit for a public facility for which an impact fee has been or will be collected; and b. Ensure that the impact fee is Imposed fairly. 5. The amount of the Wastewater Impact Fee to be Imposed on a particular development may be adjusted by Logan City and/or the Logan City Environmental Director. 6. Applications for exceptions are to be filed with Logan City and/or the Logan City Environmental Director at the time the applicant first requests the extension of service to the applicant's development or property. 7. Subject to approval by the Logan City and/or the Logan City Environmental Director, developers, including a school district or a charter school, may be allowed a credit against Impact Fees or proportionate reimbursement of Impact Fees if the developer 1) dedicates land for a System Improvement,2) builds and dedicates some or all of a System Improvement, or 3) dedicates a public facility that Logan City and the developer agree will reduce the need for a System Improvement; provided that the System Improvement is: (i) Identified in the Logan City Impact Fee Facility Plan; and (ii) is required by Logan City as a condition of approving the Development Activity. To the extent required In Section 11-36a-402 of the Act, the City, subject to the approval of Logan City and/or the Logan City Environmental Director, shall provide a credit against Impact Fees for any dedication of land for, improvements to, or new construction of any System Improvements provided by the developer if the facilities, 1) are a System Improvement; or 2) are dedicated to the public and offset the need for an identified System Improvement. SECTION V Accounting. Expenditure 1. Logan City shall account for, expend, and refund Wastewater Impact Fees pursuant in accordance with provisions of the Act. SECTION V! Administrative Challenges and Appeals Procedure 1. Any person or entity required to pay a Wastewater Impact Fee Imposed by Logan City who believes the fee does not meet the requirements of law may file a written request for information with Logan City and/or the Logan City Environmental Director as provided by law.  2. Within two weeks after the receipt of the request for information, Logan City and/or the Logan City Environmental Director shall provide the person or entity with the written impact fee analysis required by the Act and with any other relevant information relating to the impact fee. SECTION VII Amendments, inconsistencies. Severabilitv. Establishment 1. This ordinance and fee schedule may be amended by subsequent ordinances, subject to approval by Logan City and/or the Logan City Environmental Director. ■ 2. The City may adopt policies consistent with this ordinance and any resolutions passed by the City Council to assist in the implementation, administration and interpretation of this ordinance related to Impact Fees. 3. Any parts or portions of previous ordinances, resolutions, rules, and regulations which are inconsistent or in conflict with this ordinance are hereby repealed. 4. Prior policies, ordinances, rules, and regulations of the City regarding Wastewater Impact Fees that are not in conflict with this ordinance remain in effect. 5. If any part of this Ordinance is declared invalid by a court of accepted jurisdiction, the remainder shall not be affected thereby. 6. As required by Section 401(2) of the Act, this ordinance shall become effective 90 days after passage by the City Council and public notice as required by law. ADOPTED and PASSED by the River Heights City Council this 10^ day of December, 2019. Todd A Rasmussen, Mayor VOTING: Councilmember Doug Clausen Yea_ Nay_ Councilmember Robert "K" Scott ' Yea_ Nay_ Councilmember Elaine Thatcher Yea_ Nay_ Councilmember Dixie Wilson Yea_ Nay_ Councilmember Blake Wright Yea_ Nay. ATTEST: Sheila Lind, City Recorder  WASTEWATER TREATMENT IMPACT FEE FACILITIES PLAN (IFFP) AND IMPACT FEE ANALYSIS (IFA) LOGAN CITY ENVIRONMENTAL DEPARTMENT r If ^ AUGUST 2019 LEWIS mi! YOUNG ROBERTSON & BURNINGHAM, inc. GATEWAY PLAZA BUILDING - A] N. RiO GRANDS. STE I 01 • Sai.t LAKE CITY, UT B410I (P)801-996-0700 • (TF)800-981-MOO - (FJ 801-996-3600 - WWW.LewisY0UNC.COM  IFFP AND IFA: Wastewater Treatment Logan City Environmental August 2019 Ifffj TABLE OF CONTENTS IMPACT FEE CERTIFICATION 3 DEFINITIONS 4 SECTION 1: EXECUTIVE SUMMARY 5 Proposed Wastewater Treatment Impact Fee 5 SECTION 2; GENERAL IMPACT FEE METHODOLOGY 6 SECTION 3; OVERVIEW OF SERVICE AREA, DEMAND,AND Lpi - 7 Service Areas I yfl-- 7 Demand Units ^ ^ 7 Level of Service Standards 7 SECTION 4; EXISTING FACILITIES INVENTORY.......... 8 Excess Capacity , 8 SECTION 5: CAPITAL FACILITY ANALYSIS 9 System vs. Project Improvements 9 Funding of Future Facilities 9 Proposed Credits Owed to Development...., 10 Equity of Impact Fees , ; -10 Necessity of Impact Fees : 11 SECTION 6; WASTEWATER TREATMENT IMPACT FEE CALCULATION 12 Proposed Wastewater treatment Impact Fee 12 P a g e2 WE PROVIDE SOLUTIONS LYRB IFFP AND IFA: Wastewater Treatment Logan City Environmental August 2019 n" IMPACT FEE CERTIFICATION IFFP CERTIFICATION LYRB certifies that the attached impact fee facilities plan: 1. includes only the costs of public facilities that are: a. allowed under the Impact Fees Act; and b. actually Incurred; or c. projected to be incurred or encumbered within six years after the day on which each impact fee is paid; 2. does not include: a. costs of operation and maintenance of public ^cilities; b. costs for qualifying public facilities that will raise the level of service for the facilities, through impact fees, above the level ofservice that is supported by existing residents; c. an expense for overhead, unless the expense is calculated pursuant to a methodology that is consistent with generally accepted cost accounting practices and the methodological standards set forth by the federal Office of Management and Budget for federal grant reimbursement; and, 3. complies in each and every relevant respect with the Impact Fees Act. IFA Certification LYRB certifies that the attached impact fee analysis: 1. Includes only the costs of public facilities that are: a. allowed under the Impact Fees Act; and b. actually incurred; or f''"% V. c. projected to be Incurred or encumbered within six'years after the day on which each Impact fee is paid; 2. does not include: .- V' costs of operation and maintenance of public facilities;- costs for qualifying public facilities that wilTraJse the*level of service for the facilities, through'impact fees, above the level of service that is supported b'yexisting residents; c. an expense for overhead, unlessjhe expense is calculated pursuant to a methodology that Is consistent with generally accepted cost.accqunting^practices and the methodological standards set forth by tiie federal Office of ManageipefTt and^Budget for federal grant reimbursement; 3. offsets costs with grants or othe/alternate sources of payment; and, 4. complies In each and every relevant respect with the Impact Fees Act. LYRB makes this certification with the following caveats: 1. All of the recommendations for Implementations of the IFFP made In tiie IFFP documents or in the IFA documents are followed by City Staff anB.elected officials. 2. If all or a portion of tfie JFFPor IFA are modified or amended, this certification is no longer valid. 3. All information provided,t6 LYRB is assumed to be correct, complete, and accurate. This Includes information provided by tiie City as well as outside sources. Pages WE PROVIDE SOLUTIONS LYRB IFFP AND IFA: Wastewater Treatment Logan City Environmental August2019 Kffffli DEFINITIONS The following acronyms or abbreviations are used in this document: AF: Acre Foot ERU: Equivalent Residential Unit GAL: Gallons GPM: Gallons per Minute GPD: Gallons per Day IFA: Impact Fee Analysis IFFP: Impact Fee Facilities Plan LOS: Level of Service LYRB: Le\Ms Young Robertson and Bumingham, Inc. MG: Million Gallons MGD: Million Gallons per Day P a g e4 We provide Solutions LYRB IFFP AND IFA: Wastewater Treatment Logan City Environmental August 2019 SECTION 1: EXECUTIVE SUMMARY The purpose of this Impact Fee Analysis (IFA), is to fulfill the requirements established In Utah Code Title 11 Chapter 36a, the Impact Fees Act," and help Logan City (the "City") fund necessary capita! improvements for future growth. This document will address the future sewer treatment infrastructure needed to serve new development through the next ten years, as well as the appropriate impactfees the City may charge to new grovi/th to maintain the level of service. n Impact Fee Service Area: The Service Area for the wastewater treatment impact fees includes the communities of Logan, Smithfieid, Hyde Park, North Logan, River Heights, Providence, Nibley, and Utah State University, n Demand Analysis: The demand unit utilized in this analysis is existing flow and equivalent residential units, or ERUs. Currently, the Service Area has an estimated flow of 13.7 Million Gallons Per Day(MGD), for a total of 55,918 ERUs. Based on a growth rate of 2.5 percent identified in the 2018 Sewer Collection Master Plan (see p.36), an additional 16,053 ERUs will be added to the System. A more moderate growth of 1.5 percent will produce another 9,112 ERUs. Regardless of the projected growth, the Sewer Treatment Facility has a defined capacity of 18 MGD annual average demand. Therefore, the Impact fee analysis will allocate the available capacity based on the current level of service. T7 Level of Service:The level of service identified in the Master Plan assumes each future ERU will contribute an average sanitary flow of 0.17 GPM,or 70 gallons per person per day. This equates to 245 GPD.per ERU,assuming an average household size of 3.5 people for each.^ V' " tT Excess Capacity: While the construction of the new treatment facility is needed Jo further treat for phosphorus and ammonia removal, existing ^ciiities will continue to be utilized to provide storage^facilities to existing and future ERUs to account for max day flows. This analysis includes a buy-in to existing facilitie_s.to''account for this capacity. The existing sewertreatmentinfrastructurehasanoriginal value of $16,561,911.^ n Capital Facilities Analysis: A new treatment facility is anticipated to^'cost a total of $162,146,550. $38,735,009, or 24 percent of the total cost, is considered impact fee eligible capit^ ^st.—-:;.^' n Funding of Future Facilities: This analysis assumes future growth-rejated facilities will be funded through a combination of wastewater revenues, debt financing, and impact fee f^enues/. '''' PROPOSED WASTEWATER TREATMENTJMPACT FEE The wastewater treatment impact fees proposed in this analysis vyij} be assessed within the Service Area. Table 1.1 illustrates the appropriate fee associated with wastewater treatmeritprojects orcurring within the planning horizon. Table 1.1: Impact Fee Per ERU 1 ' Gro^ CbsT-tqiFFR' ERUs Served Cost Per ERU Exisfing Facilities(Buy4n) ■ \$16,561.911 24% $3,956,456 17,551 $225 Future Facilities ,' $162,146,550 24% $38,735,009 17,551 52,207 Professional E)q)ense .... j; $13,050 100% $13,050 17,551 $1 Impact Fee Fund Balance "'"v-. 100% 17,551 - Total per ERU " $42,704,516 $2,433 Non-Standard Wastewater Treatment Impact Fees The City reserves the right under the Impact Fees Act to assess an adjusted fee that more closely matches the true impact that the land use vnll have upon public facilities.^ This adjustment could result in a lower impactfee ifthe City determines that a particular user may create a different impact than what is standard for its land use. The formula for a non-standard impact fee calculation is shown below. Non-stanoard Impact Fee Formula Estimated Flow/245 GPD x $2,433 = Impact Fee 2013 Wastfy-aierCo'sifo:: Misfcr !=F?, ?. 35 1 i-36a-4-22'1 'J; P a g 05 WE PROVIDE SOLUTIONS LYRB IFFP AND IFA: Wastev/ater Treatment Logan City Environmental August 2019 section 2: GENERAL IMPACT FEE METHODOLOGY The purpose of this study is to fulfill ttie requirements of the Impact Fees Act regarding the establishment of an IFA3. The IFFP, completed by Gardner Engineering, is designed to identify the demands placed upon the City's existing facilities by future development and evaluate how these demands will be met by the City, as Figure 2.1; Impact Fee well as the future improvements required to maintain the existing LOS. The purpose of the IFA Is to Metyiodology proportionately allocate the cost of the new facilities and any excess capacity to new development, while ensuring that all methods of financing are considered. The following elements are important considerations when completing an IFA. Demand Analysis Demand Analysis The demand analysis serves as the foundation for this analysis. This elementfocuses on a specific demand unit related to eacti-public service -the existing demand on public ^cilities and the future demand as a result of new development that will impact system facilities. Level OF Service Analysis The demand placed upon existing public facilities by existing development^ is known as the existing LOS. LOS Analysis Through the inventory of existing facilities, combined with the growth.^sumptions, this analysis identifies the LOS which is provided to a communit/s existing residents and ensures that future facilities maintain these standards. Any excess capacity identifed within existing faciljties can be apportioned to new development Any demand generated from new development that overburdens the 'existing system beyond the existing capacity justifies the construction of new facilities. 'V-r'-' Existing FACiirriES ExistingFACiLfrYInventory ^ Analysis In order to quantify the demands placed upon existing public facilities by new development activity, the analysis provides an inventory existing system facilities. The inventory of existing facilities is important to properly determine the excess capacity of existing facilities and the utilization of excess capacity by new development. .aV ■■ Future Capral FAciLriiEs Analysis ^ Future Facilities The demand analysis, existing facility invenlpr^ and LOS analysis allow for the development of a list of capital Analysis projects necessary to serve h§w growth and to maintain the existing system. This list Includes any excess capacity of existing facilities, as welj as future svstem improvements necessary to maintain the level of service. Any demand ^^nerated from new development that overburdens the existing system beyond the existing capacity justifies the construction of new facilities. Financing STf^TEGY'V, Financing Strategy This analysis must also include a consideration of all revenue sources,Including Impact fees,future debt costs, alternative funding sources and the dedication of systern improvements, which may be used to finance system improvemehts^Jn conjunction with this revenue analysis, there must be a determination that impact fees are necessaiy to achieve an equitable allocation of the costs of the new facilities between the new and existing users.^ Proportionate .' PROPORTIONATE SHARE ANALYSIS Share Analysis , The written Impact fee analysis Is required under the Impact Fees Act and must Identify the Impacts placed on the facilities by development activity and how these impacts are reasonably related to the new development. The written impact fee analysis must include a proportionate share analysis, clearly detailing each cost component and the methodology used to calculate each Impact fee. A local political subdivision or private entity may only impose impactfees on development activities when its plan for financing system improvements establishes that impact fees are necessary to achieve an equitable allocation of the costs borne In the past and to be borne In the future(UCA 11-36a-302). •UC 1 [•3S3-20U02,3.)3,30-1 'UC11-35a-3(}2{2) £UCIi-33a-302i3'i P ag e6 We Provide Solutions LYRB IFFP AND IFA; Wastewater Treatment Logan City Environmental August 2019 SECTION 3: OVERVIEW OF SERVICE AREA, DEMAND,AND LOS SERVICE AREAS Utah Code requires the impact fee enactment to establish one or more ser\nce areas within which Impact fees will be imposed.^ The Service Area for the wastewater impact fees includes the following areas: n Logan n River Heights W Smithfield n Providence n Hyde Park n Nibley n North Logan tT Utah State University Logan City is in the process of updating the lagoons to a mechanical plant in order to accommodate more stringent ammonia and phosphorous standards as well as future total nitrogen limits. Construction is estimated to be completed and the plant operational by the end of the year 2022. TABLE 3.1: Service Area ERU Growth Projections DEMAND UNITS " FLdW(MpD»^L. FLOW(HfGH^RC^j ERUs. The,demahd unit utilized in this analysis is GTO^RAtE'1;5®7o):' ' " "Ratc2.5%)'- • existing flow -and equivalent residential 2018 13,700,000 55,918 13,700,000 55,918 2019 13,905,500 14,042,500 57,316 units,;;of ERUs. The primary impact on the 56.757 ^sterh..will be growth in residential and 2020 14.114.083 57,609 14,393,563 58,749 oommercial ERUs through development As 2021 14,325,794 58,473 14,753.402 60,218 \development occurs within the Service 2022 14,540,681 59,350 15,122,237 /61.723: ..-'Area, it generates increased demand on the 2023 14,758,791 60,240 15,500,293 - 63,267 wastewater treatment system, above the 2024 14,980,173 61,144 15,887,800 "•'64,848 current demand. The system improvements 2025 15,204,875 62,061 16,284,995 66,469 identified in this study are designed to 2026 15,432,948 62,992 i.:i6.692.120 ■ •68,131 maintain the existing level of service for any 2027 15,664,443 63,937 17,109,423 69,834 new or redeveloped property within the 2028 15,899,409 64,896 ■'^\':17.537,158 71,580 Service Area. If growth assumptions change 2029 16,137,900 65,869 '17.975.587 73,370 substantially, the impact fee analysis should 2030 16,379,969 66,857 18,424,977 75,204 be updated to reflect these changes. IFFP Growth (2019-2029) 2.232,400 9,112 ' 3,933,087 16,053 Currently, the Service Area has an Source: LYRB projections, based on data from Logan City, and the 2018 Wastewater estimated flow of 13.7 Million Gallons Per Collection Master plan. ■ Day (MGD), for a total of 55,918 ERUs. Based on a growth rate of 2.5 percent identified in the 2018 Sewer Collection Master Plan (see p.36), an additional 16,053 ERUs will be added to the System. A more moderate growth of 1.5 perfentwlli\r;oduce another 9,112 ERUs. Regardless of the projected growth,the SewerTreatment Facility has a defined capacity of 1*8 MGD annual average demand. Therefore, Uie impact fee analysis will allocate the available capacity based on the current level of service. LEVEL OF SERVICE STANDARDS Impact fees cannot be used to finance an increase in the level of service to current or future users of capital improvements. Therefore, it is important to identity tiie wastewater level of service to ensure that the new capacities of projects financed through impact fees do not exceed the established standard. The 2018 Sewer Collection Master Plan identifies the existing level of service on a per ERU basis. According to the Impact Fee Act, the proposed level of service may diminish or equal the existing level of service. The existing level of service identified in the Master Plan assumes each future ERU will con^bute an average sanitary flow of 0.17 GPM,or 70 gallons per person per day. This equates to 245 GPD per ERU,assuming an average household size of 3.5 people for each.^ -UC11-36a—!'i2i l)'3 ■ -- 2!3- Fag e7 WE Provide solutions LYRB IFFP AND IFA: Wastewater Treatment Logan City Environmental August2019 SECTION 4: EXISTING FACILITIES INVENTORY EXCESS CAPACITY The Environmental Department's existing regional wastewater treatment consists of 460 acres of iagoons, and 240 acres of wetlands to treat and further polish wastewater. While the construction of the new treatment facility is needed to ^rther treat for phosphorus and ammonia removal, existing facilities will continue to be utiilzed to provide storage ledlities to existing and future ERUs to account for max day flows. This analysis includes a buy-in to existing facilities to account for this capacity. The existing sewer treatment infrastructure has an original value of $16,561,911. This includes pump stations, land, and improvements. The capacity of the lagoon system is applied to the total treatment capacity of the system, or 18 MGD. Manner of Financing Existing Public FAciunEs There is currently no outstanding debt related to the wastewater treatment system. This analysis assumes ftiture growth-related facilities will be funded through a combination of utility revenues, impact fee revenues and debt financing. Pages WE Provide Solutions LYRB IFFP AND IFA: Wastewater Treatment Logan City Environmental August 2019 SECTION 5; CAPITAL FACILITY ANALYSIS The estimated costs attributed to new growth were analyzed based on existing development versus future development patterns. From this analysis, a portion offuture development costs were attributed to new growth and Included in this impact fee analysis as shown in Table 5.1. Capita! projects related to curing existing deficiencies were not included in the calculation of the impad fees. The costs of projects related to curing existing deficiencies cannot be ^nded through Impact fees. Based on capacity of the proposed improvements, the treatment facility can serve an additional 4.3 MGD, which represent 24 percent of the total capacity of the facility. Based on the existing LOS,this will serve an additional 17,551 ERUs. Table 5.1;Illustration of CAPrAL Improvements Scheduled to be Completed 1 .Fin^FAO^s' TpTAi-CqMsnRyCTWNX^. ' % CfTY,' Total Impact Fee EUGtBLE '• ■ ' -CbCTTOGROWra -Cbsr' " -■ Growth" FUNDH),' T-T coif' ' : New T reatment Facility $150,271,315 24% $35,898,147 100% $35,898,147 Interest $11,875,235 24% $2,836,862 100% $2,836,862 Total $162,146,550 $38,735,009 V $38,735,009 The treatment facility is anticipated to cost a total of $162,146,550. $38,735,009, or 24 pefcehfpf the total cost, is considered impact fee eligible capital cost. SYSTEM VS. PROJECT IMPROVEMENTS System improvements are defined as existing and future public facilities desjgned to provide services to service areas within the community at large.® Project improvements are Improvements and facilities, tfrat are planned and designed to provide service for a specific development (resulting from a development activity) and considered necessary for tiie use and convenience of the occupants or users of that development.® To the extent possible, tfils'ana^rsis.only includes the costs of system Improvements related to new growth within the proportionate share analysis. ' j FUNDING OF FUTURE FACILITIES The IFFP must also include a consideration of ajl. revenue sources, including impact fees and the dedication of system improvements, which may be used to finance systenTirnprovements.i® In conjunction with this revenue analysis, there must be a determination that impact fees are necessary to achieve atfequitable allocation of the costs of the new facilities between the new and existing users." other revenues such as utility rate revenues will be necessary to fund non growth-related projects and to ftjnd growth-related projects when sufficient impact fee.revehu^ are not available, in the latter case, impact fee revenues will be used to repay utility rate revenues for growth related projects. A brief description of alternative financing options is included below. V tT Utility Rate RevenuesfUtili^Tate revenues serve as the primary funding mechanism within enterprise funds. Rates are established to ensure appropriate coverage of all operations and maintenance expenses, debt service coverage, and capital project needs'. Impact fee revenues are generally considered non-operating revenues and help offset future capital costs. tT Grants, Donations and Other Contributions: Grants and donations are not expected as a future funding source. The impact fees should be adjusted if grant monies are received. New development may be entitled to a reimbursement for any grants or donations received for growth related projects, or for developer funded iFFP projects. TT Debt Financing: The City will utilize debt financing to l^nd future capital facility projects. The City has acquired low interest loans from the Utah Division of Water Quality, the State of Utah's Community Impact Board, and cash reserves or tax-exempt bonding in the public markets for the balance of the project, in addition, utility rate revenue and fund balances will be used to fund the project. Impact fees can be used to pay the proposed debt service, pay back existing rate payers and replenish the fund balance for the growth-related portions of the project. Future financing costs are illustrated in Table 5.2. A total of $11.8M in interest cost Is included in this analysis and added to the total cost found in Table 5.1. ' i-3c3-IOi 2i • ••ii-362-302i2. Pages We Provide solutions LYRB IFFP AND IFA: Wastewater Treatment Logan City Environmental August 2019 Table 5^:Illustration of Proposed Financing Mechanisms 2016Tax^le Sewer Treatment.- >201M^ATE^WBlREVENui BONpS - 2piBB(^B'Sivi^R£you^ j Revenue Bonds"-" 1"- .' > FiscalYear ;lNTE^ST....,/ •JPrmcpaI..' ,, ,,..tNTEREST' , PRINcipAL ~ : ; P^CIPAL,..,. !, 2019-20 - - 23,504 - 94,941 • 2020-21 - - 300,000 532,000 150,000 430,000 2021-22 - 3,257,000 292,020 540,000 143,550 435,000 2022-23 500,573 3,282,000 283,920 549,000 137,025 440,000 2023-24 475,958 3,306,000 275.685 557,000 130,425 445,000 2024-25 451,163 3.331,000 267,330 565,000 123,750 455,000 2025-26 426,180 3.356,000 258,855 574,000 116,925 465,000 2026-27 401,010 3,381,000 250,245 582,000 109,950 470,000 2027-28 375.653 3,406,000 241.515 591,000 102,900 480,000 2028-29 350,108 3,432,000 232,850 600,000 95,700 490,000 2029-30 324,368 3,458,000 223,650 609,000 88,350 495,000 2030-31 298,433 3.484.000 214,515 618,000 80,925 500,000 2031-32 272,303 3.510.000 205,245 627,000 73,425 510,000 2032-33 245,978 3,536,000 195,840 637,000 X 65,775 520,000 2033-34 219,458 3,563,000 186,285 646,000 .• 57,975 530,000 2034-35 192,735 3,589,000 176,595 656,000 50,025 535.000 203&^6 165,818 3,616,000 166,755 .'666,000 42,000 545,000 2036-37 138,698 3,643,000 156,765 676,000 . 33,825 550,000 2037-38 111,375 3,671.000 146,625 685,000 25,575 560,000 2038-39 83,843 3,698,000 136,335 .. ... . 696,000 17,175 570,000 2039-40 56,108 3,726,000 125.895 707,000 8,625 575,000 204041 28,163 3,755,000 115,290 718,000 ■ • 204142 - - 104,520 729,000 ■ - 204243 - - 93,585 740,000 ■ - 204344 - - 82,485 751,000 - - 204445 - . . 71,220 762,000 - ■ 204546 - 59,790 774,000 - - 204647 - ■ 48,180 785.000 - - 204748 . - 36,405 797,000 - ■ 204849 - - 24,450 809,000 ■ - 2049-50 - •• 12,315 821,000 ■ ■ Total $5,117,925 $70,000,000 $5,008,469 $20,000,000 $1,748,841 $10,000,000 PROPOSED CREDITS OWED TO DEVELOPMENT The Impact Fees Act requires a local political subdivision or private entity to ensure that the Impact fee enactment allows a developer, including a school district or a charter school, to receive a credit against or proportionate reimbursement of an Impact fee if the developer,(a) dedicates land for a system improvement;(b) builds and dedicates some or all of a system Improvement; or (c) dedicates a public facility that the local political subdivision or private entity and the developer agree will reduce the need for a system improvementT^ jhe facilities must be considered system Improvements or be dedicated to the public, and offset the need for an improvement identified in the IFFP. EQUITY OF IMPACT FEES Impact fees are Intended to recover the costs of capital infrastructure that relate to hjture growth. The impact fee calculations are structured for impact fees to fund 100 percent of the growth-related facilities identified in the proportionate share analysis as presented in the impact fee analysis. Even so, there may be years that impact fee revenues cannot cover the annual growth- related expenses. In those years, other revenues such as general fund revenues will be used to make up any annual deficits. Any borrowed funds are to be repaid in their entirety through Impact fees. Page10 We Provide solutions LYRB IFFP AND IFA: Wastewater Treatment Logan City Environmental August 2019 NECESSITY OF IMPACT FEES An entity may only impose impact fees on development activity if the entity's plan for financing system improvements establishes that impact fees are necessary to achieve parity between existing and new development This analysis has Identified the Improvements to public facilities and the funding mechanisms to complete the suggested Improvemehts. Impact fees are Identified as a necessary Ending mechanism to help offset the costs of new capita! improvements related to new growth. In addition, alternative funding mechanisms are identified to help offset the cost offuture capital improvements. K'-y '' t 1 if il tv "Y Page1 1 We provide Solutions  \ LYRB IFFP AND IFA: Wastewater Treatment V- VJ Logan City Environmental August 2019 SECTION 6: WASTEWATER TREATMENT IMPACT FEE CALCULATION Impact fees are calculated based on many variables centered on proportionality and level of service. The previous sectioris identified the future demand,the existing and proposed level of service, tiie availability of excess capacity and the needed future facilities to serve new.development.The following section identifies the appropriate Impact fee to be assessed to new development to maintain the existing level or service. PROPOSED WASTEWATER TREATMENT IMPACT FEE Impactfees can be calculated based on a defined set of costs specified for future development, usually defined within the Master Plan, Capital Improvement Plan and IFFP.The total project costs are divided by the total demand units the projects are designed to serve. Under this methodology, it is important to Identify the existing level of service and detemiine any excess capacity in existing facilities that could serve new growth. Impactfees are then calculated based on many variables centered on proportionality share and level of service. The wastewater treatment impactfees proposed in this analysis will t]e assessed within the Service Area.The table below illustrates the appropriate impactfee to maintain the existing level or serwce, based on the assumptions w^in this document.The fee below represents the maximum allowable impact fee assignable to new development.The total fee per ERU is $2,433. 's . Table 6.1:Impact Fee Per ERU ■ ^41?- . ■^rERUsSKVm,',- ;COCTPaERIJ' \ \ ^ . -v. It.' ,12- -■■.'GROWra;". . ExisGng Facilities (Buy-In) $16,561,911 24% ■t$3.956?456 17,551 $225 Future Facilities $162,146,550 24% "X $38,735,009 17,551 $2,207 Professional Expense $13,050 100%" '$13,050 17,551 $1 Impact Fee Fund Balance - <100%,- 17,551 - Toy per ERU ' ■ $42,704,516 $2,433 Non-Standard Impact Fees The City reserves the right under the Impact Fees Act'^ to assess an adjusted fee that more closely matches the true impact that the land use will have upon the wastewater system.-This a^justrfienl could result in a lower impact fee if evidence suggests a particular user will create a different impact than what is standard for its category. The formula for a non-standard impact fee calculation is shown below. "v, V, Non-Standard Impact Fee Formula Estimated Flow/245 GPD x $2,433 - Impact Fee Consideration of all Revenue Sources/i The Impact Fees Act requires ^e proportionate share analysis to demonstrate that Impact fees paid by new development are the most equitable method of funding growth-related infrastructure. See Section 5 for further discussion regarding the consideration of revenue sources. ■ ~ Expenditure of Impact Fees Legislation requires that impact fees should be spent or encumbered witiiin six years after each impact fee is paid. Impact fees coliected in the next five to six years should be spent only on those projects outlined in the IFFP as growth related costs to maintain the level or service. Growth-Drivhn Extraordinary Costs The City does not anticipate any extraordinary costs necessary to provide services to future development. Summary of Time Price Differential The Impact Fees Act allows for the inclusion of a time price differential to ensure that the future value of costs Incurred at a later date are accurately calculated to include the costs of construction inflation. While an Inflation component may be Included in the Impact fee analysis to reflect the future cost of facilities, at the request of the City it is not considered in the cost estimates in this study. However, the impact fee analysis should be updated regularly to account for changes in costs estimates over time. -s. ^ Page 1 2 We Provide solutions