To: Aaron Rector, City Manager
From: Alonzo Liñán, Director of Public Works
Subject:
Title
Consider a resolution approving a professional services agreement with Teague, Nall & Perkins, of Fort Worth, Texas, to provide engineering services to update the Impact Fee Study, for the Public Works Department, and further authorizing the City Manager to execute all contract documents relating thereto on behalf of the City of Keller, Texas.
Action Requested:
Approve a professional services agreement with Teague, Nall & Perkins, of Fort Worth, Texas, for the Impact Fee Study update, in the amount of $189,000.00.
Background:
Beginning in 2009, Keller has taken advantage of Chapter 395 of the Texas Local Government Code to establish impact fees for all new development. The Impact Fee Program was updated in 2021. An impact fee is a one-time charge or assessment imposed by a city on new development in order to recoup the costs of capital improvements or facility expansions necessitated by and attributable to new development.
Chapter 395 of the Texas Local Government Code details the procedures used to determine impact fees. Keller uses impact fees to help defray the cost of water and wastewater expansions linked to anticipated growth over a 10 year period. The growth is based on existing and future land use assumptions and fees are assessed by service units. Service units are standardized measures of consumption or use. Once the demand for these systems are determined, capital improvement plans are prepared that identify the supply of new water and wastewater facilities necessary to satisfy the demands attributable to the anticipated growth. The maximum impact fee amounts are determined by dividing the projected costs for new capital improvements divided by the number of service units. Except for very limited conditions, the actual impact fee amount that can be charged can be no greater than fifty percent (50%) of the maximum impact fees.
Section 395.058 of the Texas Local Government Code also requires that the land use assumptions, capital improvements plans and maximum impact fee calculations be reviewed by a Capital Improvements Advisory Committee (CIAC). The CIAC will be integrally involved in the development and review of all amendments to the land use assumptions, capital improvements plans, and impact fee calculations.
The present proposal includes updating the Impact Fee Study, an Education Element, an Adoption Process, and administration tools that assist in the management of this program. Depending on the extent of public education required, this project is expected to take up to a year to complete. Upon completion, the CIAC required to take action on the finished/recommended product and a public hearing will have to be held before the City Council takes action on adopting the updated product.
Financial Impact:
The funding for this item is included in the Funding will be from available Impact Fee Program fund balances in an amount not to exceed $189,000.00. If unforeseen circumstances are encountered, which results in an overage of the project budget, further council action and a budget amendment may be required.
Citizen Input/Board Review:
Not Applicable
Legal Review:
The City Attorney has reviewed and approved
Alternatives:
City Council has the following alternatives:
- Approve as submitted
- Approve with changes
- Denial
Council Action:
Consideration of the resolution as presented in the amount of $189,000.00.