2018 10-29Impact Fee Advisory Committee Meeting Agenda – Friday, November 02, 2018 Page 1 of 2
All materials presented at public meetings shall become property of the City of Meridian.
Anyone desiring accommodation for disabilities related to documents and/or hearing,
Please contact the City Clerk’s Office at 888-4433 at least 48 hours prior to the public meeting.
1.
City Hall
2nd Floor Public Woks Training Room
33 E. Broadway Ave.
Meridian, Idaho 83642
Monday October 29, 2018 at 2:30 P.M.
1. Roll-Call Attendance
__X__ David Fulkerson __X__ Josh Cummings __X__ Jon Wardle
__X__ Matthew Adams __X__ Spencer Martin __X__ “Butch” Weedon
__X__ John Nesmith (2:35pm)
Non Roll Call Attendance:
Dwayne Guthrie, Charlie Butterfield, Jeff Lavey, Steve Siddoway, Colin Moss,
Alexander Freitag, Dale Bolthouse, Mike Barton, Bruce Freckleton, Mindi Smith,
Ted Baird, Brad Purser, Todd Lavoie, Jenny Fields, Patty Bowen, Caleb Hood
(2:43pm)
2. Update on Impact Fee Study by Raftelis
a. Dwayne Guthrie from Raftelis provided a PowerPoint Presentation and Land
Use Assumptions Report.
i. Discussions were had on using people verses square footage indicators
ii. Raftelis propose a different concept/method of fee calculation than what
the City is currently doing. Community Development Department point
out that software programing will be needed for the proposed method on
both residential and nonresidential permit types. Staff to work with IT on
the implementation of the new method, as committee decides which
method to adopt.
iii. Question was asked if the building development community will be in
acceptance of this new method of using square footages. This will be new
for Meridian and introduces more complexity than the last Impact Study.
iv. Comments were had on limiting the level of residential housing units to 3
or four verse the proposed five. Raftelis suggested that the City could
limit the levels to small, medium, and large.
v. Raftelis will provide rates according to the existing method and the
proposed method.
vi. Population and growth numbers were provided to Raftelis by staff and
are the same numbers City Growth Committee approved.
b. Todd Lavoie provided a CFP Summary Report for Fire, Police, Parks
IMPACT FEE ADVISORY COMMITTEE
MEETING AGENDA
Impact Fee Advisory Committee Meeting Agenda – Friday, November 02, 2018 Page 2 of 2
All materials presented at public meetings shall become property of the City of Meridian.
Anyone desiring accommodation for disabilities related to documents and/or hearing,
Please contact the City Clerk’s Office at 888-4433 at least 48 hours prior to the public meeting.
i. Staff meetings are scheduled with Raftelis tomorrow October 30th, to
determine what items in the CFP are eligible for Impact Fee consideration.
c. Todd Lavoie provided Population History and Projection Reports
3. Adjourn
Start Time: 2:30pm
End Time: 4:00pm
tMeridian Impact Fee
Update
First Advisory Committee Meeting
October 29, 2018
1
Presentation Overview
•Introductions
•Work Scope
•Impact Fee Fundamentals
•Preliminary Comparison of 2013 and 2018 studies
•Draft Land Use Assumptions
•Dwayne Guthrie, PhD, AICP
›Project Manager
›dguthrie@raftelis.com
›Cell: 443-280-0723
•Robert Wadsworth, CPA
›Senior Consultant
›rwadsworth@raftelis.com
›Cell: 708-710-7439
2
General Work Scope
•Project Initiation, Data Collection, and Detailed Schedule
•Demographics, Land Use Assumptions and Fee-Structure
Alternatives
•Infrastructure Standards, Growth-Related Capital Needs and
Funding Sources
•Present Preliminary Development Fees
•Report, Implementation Assistance and Final Presentation
3
Timeframe
4
Development Fee Fundamentals
•One-time payment for growth-related infrastructure
•Can’t be used for operations, maintenance, or
replacement
•Not a tax but more like a contractual arrangement with
three requirements
›Need (system not project-level improvements)
›Benefit (short range infrastructure)
›Proportionate For example, trails could be a
system improvement and
neighborhood parks could be
a project-level improvement
5
Proportionate Share Requirements
•Key phrases from Idaho enabling legislation
›Uniform standards by which…those who benefit…pay
a proportionate share
›Schedule of…fees for various land uses per unit of
development…to pay a project’s proportionate share
›Fees shall be based on a reasonable and fair
formula or method…does not exceed a
proportionate share of…system improvements
6
Common Impact Fee Methods
•Cost Recovery (past)
›Oversized and unique facilities
›Funds typically used for debt service
•Incremental Expansion (present)
›Formula-based approach documents level-of-service
with both quantitative and qualitative measures
•Plan-Based (future)
›Common for utilities but can also be used for other
public facilities with non-impact fee funding
Evaluate Credits
1.Development agreements may require
site-specific credits or reimbursements
2.Revenue credits for grants, dedicated
funding or taxes (policy decision)
7
Conceptual Impact Fee Formula
8
Source: Guthrie and Bise, 2015.
Next-Generation Transportation
Impact Fees, Planning Advisory
Service Memo, American Planning
Association.
Meridian 2013 Impact Fee Formula
9
Growth Share of CIP
Split based on
estimated square feet
of floor area
Draft LUA 12,466 dwellings
and 6,960,000 square feet
over ten years
To make fees proportionate,
Raftelis recommends five
residential size thresholds and
four nonresidential types
Draft Land Use Assumptions
10
Meridian, Idaho FY14-15 FY18-19 FY19-20 FY23-24 FY28-29 FY39-40
Fiscal Year Begins Oct 1st 2015 2019 2020 2024 2029 2040 Ten-Year
Base Yr 1 5 10 21 Increase
Total Population
City of Meridian 114,102 121,126 140,190 149,248 165,761
Housing Units
Total Housing Units 42,345 44,445 50,145 54,811 65,937 12,466
Jobs (by place of work)
Industrial 6,781 7,501 7,693 8,511 9,656 12,748
Retail & Restaurants 10,354 11,455 11,748 12,996 14,746 19,467
Institutional 3,735 4,133 4,238 4,689 5,320 7,023
Office & Other Services 15,806 17,486 17,933 19,839 22,509 29,717
Total Jobs 36,676 40,575 41,612 46,035 52,231 68,955
Nonresidential Floor Area (square feet in thousands)
Total KSF 24,300 24,910 27,560 31,260 41,290 6,960
Persons per Housing Unit by
Bedroom Range
11
Recommended
Multipliers (2)
Bedrooms Persons Housing Persons per Housing
(1)Units (1)Housing Unit Mix
0-1 48 39 1.30 2.8%
2 353 194 1.92 14.1%
3 1,598 678 2.48 49.2%
4+1,614 467 3.64 33.9%
Total 3,613 1,378 2.76 100.0%
(1) American Community Survey, Public Use Microdata
Sample for ID PUMA 701 (2012-2016 5-year database ).
(2) Recommended persons per housing unit are scaled
to make the average derived from PUMS survey data
match the control total for Meridian (i.e. 2.76 persons
per housing unit).
Persons by Climate -Controlled Space
Thresholds
12
Nonresidential Types
13
Police
Fees
Fire
Fees
Land Use
Assumptions
ITE Land Use / Size Development Wkdy Trip Ends Wkdy Trip Ends Emp Per Sq Ft
Code Unit Per Dev Unit*Per Employee*Dev Unit Per Emp
110 Light Industrial 1,000 Sq Ft 4.96 3.05 1.63 615
140 Manufacturing 1,000 Sq Ft 3.93 2.47 1.59 628
150 Warehousing 1,000 Sq Ft 1.74 5.05 0.34 2,902
520 Elementary School 1,000 Sq Ft 19.52 21.00 0.93 1,076
530 High School 1,000 Sq Ft 14.07 22.25 0.63 1,581
610 Hospital 1,000 Sq Ft 10.72 3.79 2.83 354
620 Nursing Home 1,000 Sq Ft 6.64 2.91 2.28 438
710 General Office 1,000 Sq Ft 9.74 3.28 2.97 337
760 Research & Dev Center 1,000 Sq Ft 11.26 3.29 3.42 292
770 Business Park 1,000 Sq Ft 12.44 4.04 3.08 325
820 Shopping Center (avg size)1,000 Sq Ft 37.75 16.11 2.34 427
857 Discount Club 1,000 Sq Ft 41.80 32.21 1.30 771
Industrial in Meridian 1,000 Sq Ft 3.35 4.05 0.83 1,209
*Trip Generation , Institute of Transportation Engineers, 10th Edition (2017).
14
Contact:Dwayne Guthrie, PhD
Member, American Institute of Certified Planners (AICP)
Mobile: 443 280 0723 / Email: dguthrie@raftelis.com
L AND U SE A SSUMPTIONS FOR
F IRE ,P OLICE AND
PARKS /R ECREATIONAL F ACILITIES
Prepared for:
City of Meridian,Idaho
D R A F T
October 24, 2018
Prepared by:
D R A F T 10/24/18
2
TABLE OF CONTENTS
INTRODUCTION .................................................................................................................................3
Qualified Professionals ..........................................................................................................................3
LAND USE ASSUMPTIONS ...................................................................................................................4
SERVICE AREAS .............................................................................................................................................4
SUMMARY OF GROWTH INDICATORS ................................................................................................................4
Figure 1 –Graph of Meridian Projections .............................................................................................5
PROPORTIONATE SHARE ANALYSIS ...................................................................................................................6
Service Units by Size of Residential Development .................................................................................6
Figure 2 –Persons per Housing Unit by Bedroom Range ......................................................................7
Figure 3 –Average Persons per Housing Unit by Size Threshold ..........................................................8
Service Units by Type of Nonresidential Development .........................................................................9
Figure 4 –Nonresidential Trip Rates and Jobs by Type of Development ..............................................9
D R A F T 10/24/18
3
The Idaho Development Impact Fee Act (Idaho Code Title 67 Chapter 82)sets forth “an equitable program
for planning and financing public facilities needed to serve new growth.”The enabling legislation calls for
three integrated products:1) Land Use Assumptions (LUA)for at least 20 years, 2)Capital Improvements
Plan (CIP), and 3)Development Impact Fees (DIFs).Also,Idaho requires a Development Impact Fee
Advisory Committee established to: a) assist in adopting land use assumptions, b) review the CIP and file
written comments, c) monitor and evaluate implementation of the CIP, d) file periodic reports on
perceived inequities in implementing the plan or imposing DIFs, and e) advise the governmental entity of
the need to update the LUA, CIP and DIFS.
The LUA uses population and housing unit projections provided by City staff.In addition, the CIP and DIF
for fire, police and parks/recreational facilities require demographic data on nonresidential development.
This document includes nonresidential land use assumptions such as jobs and floor area within the City of
Meridian, along with service units by residential size thresholds.
Qualified Professionals
Raftelis is a financial consulting firm specializing in DIFs, infrastructure funding, user fees,cost of service
studies, capital improvement plans, and utility rate studies.Raftelis has approximately 80 professionals
located in major urban areas across America.Meridian’s LUA was prepared by qualified professionals in
Houston, TX and Scottsdale, AZ.
D R A F T 10/24/18
4
This document contains the land use assumptio ns for Meridian’s 2018 DIF update.The CIP must be
developed in coordination with the Advisory Committee and utilize land use assumptions most recently
adopted by the appropriate land planning agency [see Idaho Code 67-8206(2)].Idaho’s enabling
legislation defines land use assumptions as:
“a description of the service area and projections of land uses, densities, intensities, and
population in the service area over at least a 20-year period.”
Raftelis prepared current demographic estimates and future development projections for both residential
and nonresidential development that will be used in the CIP and calculation of DIFs.Current conditions
in Fiscal Year (FY)18-19 (beginning October 1, 2018) are used to document levels-of-service provided to
existing development in Meridian.Although long-range projections are necessary for planning
infrastructure systems, a ten-year timeframe is critical for the LUA and CIP.
Service Areas
Idaho Code 67-8203(26)defines “service area” as:
“Any defined geographic area identified by a governmental entity,or by
intergovernmental agreement,in which specific public facilities provide service to
development within the area defined, on the basis of sound planning or engineering
principles,or both.”
A city-wide service area is appropriate for Meridian’s fire, police and parks/recreation facilities. The City’s
adopted Future Land Use Map indicates land uses, densities,and intensities of development, as required
by Idaho Code 67-8203(16).The service area is defined as all land within the city limits of Meridian, as
modified over time.
Summary of Growth Indicators
The demographic data and development projections shown in Figure 1 will be used in the LUA and CIP for
all types of infrastructure.The population and housing units projections from FY18-19 through FY28-29
in Figure 1 were provided by City staff.The City assumes a 1.0% annual population increase in the final
four years of their projection (FY25-26 through FY28-29) and Raftelis extended this 1.0% annual
population increase assumption to project the City’s population through FY39-40.The 2040 population
of 165,761 residents is higher than the Communities in Motion 2040 population of 154,780 (see Table 3.1,
COMPASS July 2014).Similarly, the City assumes a 1.7%annual increase for housing units in the final two
years of their projections (FY27-28 through FY28-29).Raftelis extended this annual housing unit increase
assumption through FY39-40.
For nonresidential development, the basic LUA methodology converts Meridian job projections into
nonresidential floor area.Projected jobs within Meridian applies a 2.6% average annual increase to
36,676 estimated jobs in 2015, obtained from the U.S. Census Bureau website “OnTheMap.” The
projected compound job growth rate was derived from Table 3.1 in Communities in Motion (COMPASS
July 2014) indicating Meridian jobs would increase from 30,772 in 2010 to 65,642 by 2040.In comparison,
Figure 1 projects 68,955 jobs in Meridian by the year 2040.
D R A F T 10/24/18
5
The 2015 job mix by four general categories was held constant through 2040. Jobs were converted to
floor area estimates using national averages published by the Institute of Transportation Engineers (ITE
2017). As shown below (see Figure 4), Industrial development averages 1,209 square feet of floor area
per job, Retail/Restaurants average 427 square feet per job,Institutional averages 1,076 square feet per
job,and Office & Other Services average 337 square feet per job. Based on these assumptions,Meridian
has approximately 24 million square feet of nonresidential floor space in FY18-19.This floor area estimate
is consistent with total square feet of nonresidential development documented in Ada County’s Assessors
2018 commercial database, as provided by City staff.
Development projections and growth rates for FY18-19 through FY39-40 are graphed in Figure 1. These
projections will be used to estimate DIF revenue and to indicate the anticipated need for growth -related
infrastructure. However,DIF methodologies are designed to reduce sensitivity to accurate development
projections in the determination of the proportionate-share fee amounts. If actual development is slower
than projected,DIF revenues will also decline, but so will the need for growth-related infrastructure. In
contrast, if development is faster than anticipated, the City will receive an increase in DIF revenue and will
also accelerate capital improvements to keep pace with development.
Figure 1 –Graph of Meridian Projections
D R A F T 10/24/18
6
Jobs located within Meridian in 2015 are from the U.S. Census Bureau’s Work Area Profile. Industrial land
uses include agriculture, mining, utilities, construction, manufacturing, wholesale trade and
transportation/warehousing. Retail/Restaurant includes retail trade, and accommodation/food services.
Institutional includes educational services and public administration.Office & Other Services includes all
other industry sectors (note: NAICS means North American Industry Classification System, as used by the
federal government).
During the next ten years,Meridian expects to increase by an average of 1,247 housing units per year
(compound average annual growth rate of 2.6%).From 2019 to 2029,Meridian expects to add an average
of 696,000 square feet of nonresidential floor area per year (compound average annual growth rate of
2.6%per year).
Proportionate Share Analysis
The term “proportionate” is found throughout Idaho’s Development Impact Fee Act. For example, Idaho
Code 67-8202(2) states the intent to,
“Promote 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 cost of new public facilities needed to
serve new growth and development;”
Because DIFS must be proportionate, jurisdictions derive fees for various land uses per unit of
development, as stated in Idaho Code 67-8404(17).
“A development impact fee ordinance shall include a schedule of development impact
fees for various land uses per unit of development. The ordinance shall provide that a
developer shall have the right to elect to pay a project's proportionate share of system
improvement costs by payment of development impact fees according to the fe e
schedule as full and complete payment of the development project's proportionate
share of system improvement costs…”
Even though formulas and methods are not specified in Idaho’s Development Impact Fee Act,DIFs must
be reasonable and fair, as stated in section 67-8201(1).
“All development impact fees shall be based on a reasonable and fair formula or
method under which the development impact fee imposed does not exceed a
proportionate share of the costs incurred,or to be incurred,by the governmental
entity in the provision of system improvements to serve the new development.
In the following sections, Raftelis describes reasonable and fair formulas and methods that can be used in
the City of Meridian to make DIFs proportionate by size of residential development and type of
nonresidential development.
Service Units by Size of Residential Development
DIFs must be proportionate to the demand for infrastructure.Because the average number of persons
per dwelling unit has a strong and positive correlation to the number of bedrooms per unit,residential
fees should correlate to dwelling size. An average fee for all types and sizes of residential development is
D R A F T 10/24/18
7
not proportionate and this approach makes small units less affordable, while essentially subsidizing larger
units.
Rather than use national multipliers, custom tabulations of demographic data by bedroom range can be
created from individual survey responses provided by the American Community Survey (ACS), in files
known as Public Use Microdata Samples (PUMS). PUMS files, for areas of at least 100,000 persons, can
be downloaded from the U.S. Census Bureau’s website.Meridian is located within Idaho PUMA 701.
As shown in Figure 2, average persons per housing unit by bedroom range were derived from unweighted
PUMS data. Input variables are the two columns highlighted with yellow shading (i.e., persons and
housing units).The recommend multipliers (shown in the third column)by bedroom range are for all
types of housing units, adjusted to the control total of 2.76 persons per housing unit within Meridian.The
latter was derived from Tables B25024, B25032 and B25033 published by the U.S. Census Bureau (see ACS
2012-2016 estimates).
Figure 2 –Persons per Housing Unit by Bedroom Range
DIFs based on size of dwelling are generally easier to administer when expressed in square feet of finished
living space for all types of housing. Basing fees on floor area rather than the number of bedrooms
eliminates the need for criteria to make administrative decisions on whether a room qualifies as a
bedroom. To translate dwelling size by number of bedrooms into square feet of living space,Raftelis used
the 2018 Ada County Assessor’s residential database to derive average square feet by bedroom range (i.e.
zero to one,two, three, and four or more bedrooms).
Raftelis recommends that DIFs for residential development be imposed based on finished square feet of
living space, excluding garages,patios and porches that are not climate-controlled.Average floor area
and number of persons by bedroom range are plotted in Figure 3, with a logarithmic trend line fitted to
the Meridian data points. Using the trend line formula shown in the chart,Raftelis derived the estimated
average number of persons, by dwelling size, using five size thresholds. For development impact fee
calculations,Raftelis recommends a minimum size-threshold of 1100 square feet and a maximum size-
threshold of 2,501 or more square feet.
Recommended
Multipliers (2)
Bedrooms Persons Housing Persons per Housing
(1)Units (1)Housing Unit Mix
0-1 48 39 1.30 2.8%
2 353 194 1.92 14.1%
3 1,598 678 2.48 49.2%
4+1,614 467 3.64 33.9%
Total 3,613 1,378 2.76 100.0%
(1) American Community Survey, Public Use Microdata
Sample for ID PUMA 701 (2012 -2016 5-year database).
(2) Recommended persons per housing unit are scaled to
make the average derived from PUMS survey data match
the control total for Meridian (i.e. 2.76 persons per
housing unit).
D R A F T 10/24/18
8
Figure 3 –Average Persons per Housing Unit by Size Threshold
D R A F T 10/24/18
9
Service Units by Type of Nonresidential Development
In addition to data on residential development, the calculation of DIFs requires data on nonresidential
development.Raftelis uses the term “jobs” to refer to employment by place of work. In Figure 4,rows
with color shading indicates nonresidential development prototypes that will be used to derive average
weekday vehicle trip ends and nonresidential floor area estimates. For future industrial development,
Raftelis averaged Light Industrial (ITE code 110)and Warehousing (ITE code 150)to yield a reasonable
proxy for industrial development.The land use assumptions for the City of Meridian assume industrial
development averages 1,209 square feet per employees, as shown at the bottom of Figure 4.The
recommended prototype for future commercial development (i.e. retail and eating/drinking places) is an
average-size Shopping Center (ITE code 820).The prototype for future institutional development is an
average-size Elementary School (ITE code 520).For office and other services, General Office (ITE 710) is
the prototype for future development.Nonresidential development categories represent general groups
of land uses that share similar average weekday vehicle trip generation rates and employment densities
(i.e., jobs per thousand square feet of floor area).
Figure 4 –Nonresidential Trip Rates and Jobs by Type of Development
ITE Land Use / Size Demand Wkdy Trip Ends Wkdy Trip Ends Emp Per Sq Ft
Code Unit Per Dmd Unit*Per Employee*Dmd Unit Per Emp
110 Light Industrial 1,000 Sq Ft 4.96 3.05 1.63 615
140 Manufacturing 1,000 Sq Ft 3.93 2.47 1.59 628
150 Warehousing 1,000 Sq Ft 1.74 5.05 0.34 2,902
520 Elementary School 1,000 Sq Ft 19.52 21.00 0.93 1,076
530 High School 1,000 Sq Ft 14.07 22.25 0.63 1,581
610 Hospital 1,000 Sq Ft 10.72 3.79 2.83 354
620 Nursing Home 1,000 Sq Ft 6.64 2.91 2.28 438
710 General Office 1,000 Sq Ft 9.74 3.28 2.97 337
760 Research & Dev Center 1,000 Sq Ft 11.26 3.29 3.42 292
770 Business Park 1,000 Sq Ft 12.44 4.04 3.08 325
820 Shopping Center (avg size)1,000 Sq Ft 37.75 16.11 2.34 427
857 Discount Club 1,000 Sq Ft 41.80 32.21 1.30 771
Industrial in Meridian 1,000 Sq Ft 3.35 4.05 0.83 1,209
*Trip Generation , Institute of Transportation Engineers, 10th Edition (2017).
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