1. business and industrial
2. business operations
3. management
4. project management

How To Administer
Impact Fees After The
Consultants Are Gone
Steven M. Pedretti, Sacramento County California
Maureen Zamarripa, Sacramento County California
Monica Daniels Mika, Weld County Colorado
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This presentation is designed to
provide a practical approach to
impact fee program
management.
Sacramento County, California
Weld County, Colorado
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Weld County
Impact Fee Total of $3310
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Sacramento
Impact Fee Total up to $62,314
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A
CALIFORNIA
APPROACH
SACRAMENTO
COUNTY
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Infrastructure Finance in
Sacramento County
• History
• Financing Solutions to the
Infrastructure Puzzle
• Program Development
• Program Implementation
• Program Administration
• Lessons Learned
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History in Sacramento
1986 County Population 1.03M
1986 Unincorporated Population 625,000*
2006 County Population 1.4M
2006 Unincorporated Population 560,000
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Financing Puzzle
• Land Secured Financing Tools
– Mello-Roos Community Facilities
Districts
– Assessment Districts
– Development Impact Fees
– Developer Funded
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Unincorporated Area
Impact Fees
Impact fees (residential)
• Sewer collection
• Sewer treatment
• Water supply
• Stormwater
• Roads
$1,853
$7,371
$9,692
$1,500
$2,247
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Unincorporated Area Fees
• In use 40+ years
• Department driven
• Only “backbone” facilities are
funded
• Credits against fees given to
developers who construct
backbone facilities
• Reimbursement occurs as funds
are available
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History of Infrastructure
Finance
• Infrastructure Finance Section
– 14 staff devoted to working with
service providers and the
development community
– Plan Area Fees-IFS specialty
– In existence for 20 years
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SACRAMENTO COUNTY FEE COMPARISON
CHART
$70,000
$60,000
Swainson's Hawk
Mitigation
$50,000
Community Amenities
$40,000
Underground
$30,000
Road and Transit
$20,000
Adm inistration
$10,000
$0
Antelope
(1986)
EGWV
(1994)
Vineyard
(2006)
NVS
(2006)
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ANTELOPE CAPITAL IMPROVEMENT PROGRAMS
$60,000,000
$50,000,000
$40,000,000
Community Amenities
$30,000,000
Road & Transit
Underground
$20,000,000
$10,000,000
$0
FACILITIES COMPONENTS
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ANTELOPE DEVELOPMENT IMPACT FEES
$4,000
$3,500
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$0
IMPACT FEE COMPONENTS
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ELK GROVE/WEST VINEYARD CAPITAL
IM PROVEM ENT PROGRAM S
$350,000,000
$300,000,000
$250,000,000
Community Amenities
$200,000,000
Road & Transit
$150,000,000
Underground
$100,000,000
$50,000,000
$0
FACILITIES COMPONENTS
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ELK GROVE/WEST VINEYARD DEVELOPMENT IMPACT FEES
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
$0
IMPACT FEE COMPONENTS
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NORTH VINEYARD STATION DEVELOPMENT
IMPACT FEES
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
IMPACT FEE COMPONENTS
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NORTH VINEYARD STATION CAPITAL IM PROVEM ENT
PROGRAM S
$300,000,000
$250,000,000
$200,000,000
Administration
Swainson's Hawk
$150,000,000
Community Amenities
Road & Transit
Underground
$100,000,000
$50,000,000
$0
FACILITIES COMPONENTS
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Capital Improvement Program
Development (CIP)
– Developer driven-reactive workresponding to customer needs
– Determine facilities/infrastructure
needed
– Determine timeline for needed
infrastructure
– Develop facility estimates-work with
service providers
– Piece the infrastructure financing puzzle
together
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Program Implementation
• Review with Service Providers and
gain participation for outreach
process
• Present to the Building Industry
Association
• Present to engineers, architects,
contractors, community groups
• Board of Supervisors Approval
• Work with staff-calculation and
collection efforts
• Publish and post program notices
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Program Administration
• Regular review of program
– Facility cost estimates
– Development base
– Service provider coordination
– Reporting mechanisms
– Overall program health
– Be prepared to quantify impacts
on specific projects for Board
consideration
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Weld County
Colorado
Funds Collected
Transportation Impact Fees
January 2000 – September 2006
$ 7,292,118.00
Stormwater/ Drainage Impact Fees
August 2005 – September 2006
$
105,511.00
$
309,982.00
Capital Expansion Impact Fees
August 2005 – September 2006
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Weld County Per Housing
Unit Impact Fees
Road Impact Fee
$1,987.00
Capital Expansion Fee
$575.00
Storm water Drainage Fee (if applicable)
$748.00
Total Impact Fees
$3,310.00
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Weld County Transportation
Impact Fee Program
¾ Started in 1999 for select area of
Weld County.
¾ Program modified in 2003 for County
wide application.
¾ Applies only to strategic roads
¾ Distribution of funds is based on
benefit areas.
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Historical
data
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Present data
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Weld County
Stormwater Impact Fee
¾ Funds for regional drainage
projects
¾ Monies collected in urban
areas
¾ Some exempt structures
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Capital Expansion Fee
¾ Need for capital expansion
New growth and development
requires expansion in Countyowned improvements.
™ Jail
™ General Government Services
Single Family
$575 per unit
Commercial - Industrial $95/ 1000 sq.
Agricultural
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Program Implementation
¾ Set up Impact Fee Board
¾ Get Local Home Builders Association
on board
¾ Advertise, Advertise, Advertise
™
Newspaper
™
Public Meetings
™
Notice at counters
™
Notice on building permits
¾ Tell everyone who wants to hear
¾Get staff involved at the beginning
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Program Administration
¾ Give staff ownership
¾ Prior to starting the adoption process
¾ Get the right staff involved
¾ Empower staff
¾ Know your organization’s future needs
¾ Be able to explain need
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Elected Officials
¾
¾
¾
¾
Review regulations on a regular basis
Show public outreach information
Discuss appeal process
Educate about roles in the appeals
process
¾ Have attorney conduct a short staff
training with board to discuss
™Staff responsibilities
™Elected official role
™Possible outcomes
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What to do when you get a
fee challenge
¾ How to measure the success
¾ Staff may not like fee challenges
¾ They will arise…be prepared
¾How you handle these challenges
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If you can’t avoid a
challenge then..
¾ Maintain due process
¾ Provide fairness
¾ Be timely
¾ Ensure supportability
¾ Keep records
¾ Follow your process
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We now know what?
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Lessons Learned
• Important to get the toughest
critics involved in reviewing the
program early
• Development Triggers
• Missing Curb Lane Fundpavement holiday solution
• Contingency-for that traffic
signal you didn’t know you
wanted but your Board member
did
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Lessons Learned
¾ Let the public know about the fee
¾ Keep records of all permits assessed
¾ Write down uniqueness
¾ Modify your permit system to
calculate for Impact Fees
¾ Select permits to review quarterly for
assessment
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Lessons Learned
¾ Have an established protocol.
Develop a procedural guide for the
public to follow.
¾ Make sure all correspondence is time
sensitive as per the guidance in your
code.
¾Careful selection of land use
categories.
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Lessons Learned
¾Maintain staff consistency
¾ Use defendable data
¾ Everyone pays…not an Economic
Development incentive
¾ If County project pay the fee
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Lessons Learned
• Fairness
– Earn a reputation for fairness
– Take into account projects
already in the pipeline
– Be fair to the small projectJoe Homeowner
• Develop credibility with elected
officials
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Lessons Learned
• Dealing with the Developer
– Be consistent
– Time is more important than
money
– Need certainty on fee rates
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Harder Lessons Learned
• Use a common sense approachkeep it simple
• Don’t create fees for areas that
are too small
• Include a CPI Escalator
• Perform regular program
updates-critical to program
success
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Conclusion:
¾ Compared and contrasted two
programs
¾ Major to Minor piece of the
infrastructure puzzle
¾Lessons learned are universal and
not dependent on program size
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Web Pages
www.saccounty.net
www.co.weld.co.us