HomeMy WebLinkAboutBIL 304 Draft 03 2008-2010COUNTY OF HAWAII
STATE OF HAWAII
BILL NO. 304
ORDINANCE NO.
(DRAFT 3)
AN ORDINANCE AMENDING THE HAWAII COUNTY CODE 1983 (2005 EDITION,
AS AMENDED), BY ADDING A NEW CHAPTER RELATING TO IMPACT FEES.
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII:
SECTION 1. The Hawai`i County Code 1983 (2005 Edition, as amended), is amended
by adding a new chapter to read as follows:
"CHAPTER 36. IMPACT FEES.
Article 1. General Provisions.
Section 36 -1. Findings and purpose.
New development and construction, whether they be resorts, residential dwellings,
commercial or industrial units, have substantial impacts on the quality of life, social welfare, and
environment in Hawai`i County. The purpose of an impact fee is to ensure that the person or
persons responsible for impact - generating development and construction bear a proportionate
share of the cost of improvements to Hawai`i County's public facilities necessitated by such
development and construction, including roads, parks and recreation, fire /emergency medical
service (EMS), police, solid waste, and wastewater facilities. The creation of an impact fee
system would enable the County to impose a more proportionate share of the costs of required
system improvements, based on the County's General Plan and Community Development Plans,
on the development that create the need, as well as assure that the development that pays each
fee will receive a corresponding benefit within a reasonable period of time after the fee is paid.
The authority to impose impact fees is granted to counties by the Hawai`i Revised
Statutes, section 46 -141 through section 46 -148.
Section 36 -2. Definitions.
As used in this chapter, unless otherwise specified:
"Applicant" means the applicant for final plan approval, final subdivision approval, a
building permit or a connection to the wastewater system for which an impact fee is due pursuant
to the provisions of this chapter.
"Community development plan" means a county comprehensive plan for an area within
the County adopted by ordinance pursuant to section 15.1 of the General Plan.
"Dwelling unit" means one or more rooms designed for or containing or used as the
complete facilities for the cooking, sleeping and living area of a single - family only and occupied
by no more than one family and containing a single kitchen.
"Equivalent dwelling unit (EDU)" means a measurement of the impact of a typical
single- family dwelling. A typical single- family detached dwelling unit represents, on average,
one EDU.
"Fair share" means a condition of zoning enacted prior to this ordinance which requires
payment of fees to mitigate the anticipated regional impacts of the development, based on the
extent of the development allowed, for roads, parks and recreation, police, fire, or solid waste
facilities, or any combination of these facilities. It may also allow a developer to provide land or
facilities in lieu of paying the fair share fee.
"Fire /EMS facilities" means land, buildings, vehicles and capital equipment owned by
the County and used for providing fire and emergency medical services, including fire stations,
fire department administrative offices, training facilities, fire- fighting apparatus and support
vehicles, and fire- fighting equipment.
"Fire /EMS system improvements" means capital improvements that result in a net
expansion of the capacity of fire /EMS facilities to serve new development. Remodeling,
replacement, or maintenance of existing equipment or facilities does not constitute fire /EMS
system improvements, except to the extent that such improvement has the net effect of adding
capacity.
"Functional population" means the number of people occupying space at the site of a land
use on a twenty -four hour per day, seven day per week basis.
"General plan" means the County of Hawai`i 2005 general plan, and any revisions or
amendments thereto adopted by ordinance, including any revision resulting from a
comprehensive review.
"Gross floor area" means the total area within the perimeter of the outside walls of a
building as measured from the inside surface of the exterior walls, with no deduction for
hallways, stairs, closets, thickness of walls, columns, or other interior features. This is also the
total of the gross horizontal area of all floors below the roof and:
1) Within the outer surface of the main walls of principal or accessory buildings;
2) Within the outer surface of the main walls and the centerlines of a party wall
separating such buildings or portions thereof; or
3) Within lines drawn parallel to and two feet within the roof line of any building or
portions thereof without walls.
Gross floor area excludes unscreened residential porches or balconies, vehicle parking garages,
accessory or commercial vehicular parking areas and structures, and nonresidential arcades and
similar open areas that are accessible to the general public, and are not designed for or used as
sales, display, storage, service or production areas.
"Impact fee administrator" or "administrator" means either the director of planning or the
director of public works as selected by the mayor.
"Impact fees" means the road, parks and recreation, fire /EMS, police, solid waste, and
wastewater impact fees.
"Impact- generating development" means any land development designed or intended to
permit a use of land that will increase the number of service units, including the types of
development listed in the table contained in section 36- 12(a).
"Impact- generating development, commencement of' means for the purposes of roads,
parks and recreation, fire /EMS, police and solid waste impact fees, commencement occurs upon
obtaining a building permit for any development. For the purposes of wastewater impact fees,
commencement occurs upon the purchase of a water meter or, if no water meter is required, upon
physical connection to the County's wastewater line serving the property.
"Major road facilities" means arterials (roads providing the highest level of service at the
greatest speed for the longest uninterrupted distance, with some degree of access control) and
collectors (roads providing a less highly developed level of service at a lower speed for shorter
distances by collecting traffic from local roads and connecting them with arterials), including
state roads and federal highways located within the County.
"Major road system improvements" means improvements that expand the capacity of
major road facilities, including but not limited to planning and design, the acquisition of right -of-
ways, construction of new roads, addition of lanes, widening of existing roads, improvement of
intersections, and installation of traffic signals. Lane reconstruction, sidewalk construction,
median construction, landscaping, street lighting installation and other customarily related
components of a capacity- expanding road improvement shall not be considered system
improvements when they are not an integral part of a capacity - expanding improvement.
"Needs assessment study" means the Infrastructure and Public Facilities Needs
Assessment: Impact Fee Study prepared for Hawai`i County by Duncan Associates in September
2006, or a subsequent similar report.
"Parks and recreation facilities" means land, buildings and improvements to County -
owned or County- maintained land used for recreational purposes, and recreational facilities and
improvements made or installed by the County on property not owned by the County and
available for public use.
"Parks and recreation system improvements" means capital improvements that result in a
net expansion of the capacity of park facilities to serve new impact - generating development.
Remodeling, replacement, or maintenance of existing equipment or facilities does not constitute
park system improvements.
"Person" means an individual, corporation, governmental agency or body, business trust,
estate, trust, partnership, association, two or more persons having a joint or common interest, or
any other entity.
"Police facilities" means land, buildings, vehicles, and capital equipment owned by the
County and used for providing police services, including police stations, police department
administrative offices, training facilities, patrol vehicles, and police equipment.
"Police system improvements" means capital improvements that result in a net expansion
of the capacity of the police facilities to serve new development. Remodeling, replacement, or
maintenance of existing equipment or facilities does not constitute police system improvements,
except to the extent that they have the net effect of adding capacity.
"Service units" means road "vehicle -miles or travel," parks and recreation "equivalent
dwelling units" (EDUs), fire /EMS EDUs, police EDUs, solid waste EDUs, or wastewater
"single- family equivalents."
"Single - family equivalent (SFE)" means the wastewater demand associated with a typical
single- family detached unit.
"Solid waste facilities" means land, buildings, vehicles, and capital equipment owned by
the County and used for providing solid waste services to self -haul residential customers. Solid
waste facilities shall include landfill improvements and equipment, transfer stations and
equipment, and vehicles.
"Solid waste system improvements" means capital improvements that result in a net
expansion of the capacity of the solid waste facilities to serve new development. Remodeling,
replacement, or maintenance of existing equipment or facilities does not constitute solid waste
system improvements, except to the extent that they have the net effect of adding capacity.
"System improvements" means road system improvements, parks and recreation system
improvements, fire /EMS system improvements, police system improvements, solid waste system
improvements, or wastewater system improvements. System improvements do not include land
dedications or capital improvements for the exclusive use or benefit of a particular development.
"Vehicle -miles of travel (VMT)" means the product of the number of vehicles traveling
during a given time period multiplied by the distance in miles that these vehicles travel.
"Vehicle -miles of capacity (VMC)" means the product of the maximum number of
vehicles that can be accommodated on a road multiplied by the length of the roadway in miles.
"Wastewater" means water mixed with waste matter, also known as sewer water.
"Wastewater facilities" means the land and improvements associated with a wastewater
plant, including effluent outfall to receiving waters, and the wastewater collection system,
excluding portions of the collection system typically installed by developers.
"Wastewater system improvements" means capital improvements that result in a net
expansion of the capacity of the wastewater facilities to serve new development. Gravity lines
less than twelve inches in diameter are not considered system improvements. Remodeling,
replacement, or maintenance of existing equipment or facilities does not constitute wastewater
system improvements, except to the extent that they add capacity.
Section 36 -3. Appeals.
Any final determination made by the impact fee administrator may be appealed to the
board of appeals within thirty days from the date of the decision appealed.
Section 36 -4. Violations and fines.
Furnishing false information on any matter relating to the administration of this chapter,
including without limitation the furnishing of false information regarding the expected size, use,
or impacts of a proposed development, shall be a violation of this chapter. The administrative
fine for each violation of this chapter shall be determined by the impact fee administrator and
shall not exceed twice the amount of the fee that would have been assessed had the relevant
information been accurately provided minus the impact fee previously paid. The collected fine is
to be deposited into the corresponding benefit district fund.
Section 36 -5. Reasonable project improvements.
Nothing in this chapter shall restrict the County from requiring the construction of
reasonable project improvements required to serve the development project, whether or not such
improvements are of a type for which credits are available under section 36 -17, post- ordinance
credits.
Section 36 -6. Review.
The impact fees and the administrative procedures established by this chapter shall be
reviewed by the council at least once every three years.
Section 36 -7. Reserved.
Article 2. Impact Fees.
Division 1. Impact Fee Requirements.
Section 36 -8. Impact fees required.
(a) On and after the effective date of this chapter, any person who causes the commencement
of impact - generating development shall be obligated to pay impact fees, pursuant to the
terms of this chapter. The obligation to pay the impact fees shall run with the land.
(b) The impact fees for roads, parks and recreation, fire /EMS, police, and solid waste shall be
determined and paid at the time of issuance of a building permit for the development.
(c) The impact fees for wastewater shall be determined and paid in accordance with the
following:
(1) The wastewater impact fee shall be paid at time of the purchase of a water meter.
(2) If no water meter is required, wastewater impact fees shall be paid at the time of
physical connection to the County wastewater system serving the property.
(3)
Under no circumstances shall a physical connection to the County's wastewater
line serving the property be permitted unless the applicable wastewater impact fee
has been paid.
Section 36 -9. Impact fee exemptions.
(a) The following shall be exempt from the terms of this chapter:
(1) A single - family detached unit on a lot for which impact fees had been paid shall be
exempt from any increase in impact fees of the types already paid, but shall be subject
to any new impact fees for additional facilities if the council enacts an amendment to
this ordinance requiring impact fees for other types of facilities;
(2) Alterations of an existing single - family detached dwelling unit where no additional
dwelling units are created;
(3) Replacement on the same lot of a destroyed or partially destroyed residential building
or structure that has been moved, with a new building or structure of the same use,
and with the same number of dwelling units;
(4) Replacement on the same lot of a destroyed or partially destroyed nonresidential
building or structure that has been moved, with a new building or structure of the
same use and not exceeding the gross floor area of the original building or structure;
or
(5) Any impact - generating development for which a completed application for a building
permit was submitted prior to the effective date of this chapter, provided that the
construction proceeds according to the provisions of the permit and the permit does
not expire prior to the completion of the construction.
(b) An exemption must be claimed at the time of application for a building permit.
(c) The impact fee administrator shall determine the validity of any claim for exemption
pursuant to the criteria set forth in this chapter.
(d) In order to promote the economic development of the County or the public health, safety,
and general welfare of its residents, the council may authorize by ordinance payment of
some or all of the impact fees imposed on a proposed development or redevelopment
from other funds of the County that are not restricted to other uses and are not derived
from impact fees. Any such decision to pay impact fees on behalf of an applicant shall be
at the discretion of the council and shall be made pursuant to goals and objectives
articulated by the council.
Section 36 -10. Affordable Housing.
(a) For the purposes of this section:
"OHCD" means the office of housing and community development or its designated
agents and contractors.
(b) Designated affordable housing units.
(1) The County shall fund the impact fee for new affordable housing units that are
restricted for sale or rent to qualified households and eligible buyers. It is the
intent of this subsection that the funding of the impact fee by the County shall
apply to new units that are recognized by OHCD as satisfying affordable housing
requirements pursuant to chapter 11 of this Code, or which earn excess credits
pursuant to section 11 -5.
(2) To qualify the units for County funding, OHCD shall certify that the units qualify
as affordable housing under chapter 11, and that OHCD will monitor compliance
with price and eligibility restrictions, and restrictions on the subsequent transfer of
the units, consistent with the requirements of chapter 11. If certification occurs
after the issuance of the building permit and payment of the impact fee by the
developer, the County shall reimburse the impact fee to the developer.
(3)
If the unit is released from affordability restrictions on price or buyer eligibility
prior to the initial sale of the unit, the developer shall reimburse the affordable
housing trust fund for the amount of the impact fee funded by the County. If a
rental unit is released from limitations on lease rent prior to the expiration of the
term initially agreed upon by OHCD, the owner shall reimburse the affordable
housing trust fund for the amount of the impact fee funded by the County.
(c) Eligible buyers of other units.
(1) A buyer who purchases a new dwelling unit for which an impact fee had
previously been paid, which is not covered under subsection (b), shall be eligible
for a zero - interest loan from the affordable housing trust fund in an amount equal
to the impact fee, provided that:
(A) The buyer has been qualified by OHCD as an eligible buyer under the
applicable affordable housing guidelines;
(B) The dwelling unit is sold at a price which is affordable for families earning
no more than one hundred forty percent of the median income for a family
of four on the island of Hawai`i, as determined by OHCD; and
(C) The buyer has never previously received a loan under this subsection or
under subsection (d).
(2) The loan shall be provided at the closing of the sale of the unit and shall reduce
the amount of the principal mortgage. The loan shall be a recorded lien on the
property but shall be subordinated to the principal mortgage.
(3)
For the purposes of this subsection, the unit does not have to meet the standards of
section 11 -5(b), provided it has completed final building inspection as a dwelling
unit.
(4) The loan shall be repaid to the affordable housing trust fund upon any subsequent
transfer of title, provided that repayment shall be deferred if the subsequent
transfer complies with the provisions of paragraphs (c)(1)(A) through (c)(1)(C).
(d) Owner - builders.
(1) A person who builds a home on a parcel owned by that person for their personal
residence shall be eligible for a zero - interest loan from the affordable housing
trust fund to pay for the impact fee, provided that:
(A) The person would, except for the ownership of the parcel, qualify as an
eligible buyer;
(B) The tax - assessed value of the land does not exceed $100,000;
(C) The home's gross floor area does not exceed one thousand four hundred
square feet in size, excluding carport or garage; and
(D) The person has not previously received a loan under this subsection or
subsection (c).
(2) The loan shall be a recorded lien against the property but shall be subordinated to
any mortgage on the property.
(3)
The loan shall be repaid to the affordable housing trust fund upon any subsequent
transfer of title, provided that repayment shall be deferred if the subsequent
transfer complies with the provisions of paragraphs (c)(1)(A) through (c)(1)(C).
(e) The office of housing and community development shall verify eligibility of buyers and
renters, sales prices, and other restrictions, in a manner consistent with chapter 11.
Calculations of income eligibility shall include the income of all persons to be included
on the title of the property, and if a buyer is married, shall include the income of the
spouse.
(f) An affordable housing trust fund shall be created to provide funding for the payments and
loans referred to herein. The affordable housing trust fund shall not be funded by impact
fee receipts. Any reimbursements shall be re- deposited to the affordable housing trust
fund.
Section 36 -11. Reserved.
Division 2. Amount of fees.
Section 36 -12. Pre - calculated fees by land use type.
(a) Any person or group of persons who commence an impact - generating development,
except those exempted or preparing an independent fee calculation study, shall pay
impact fees in accordance with the following fee schedule:
Land Use Type Unit Roads Parks
Fire/
EMS
Police Solid Wastewater TOTAL **
Waste
Single- Family
3,500 sq. ft or
more
Dwelling
$2,617
$3,611
$303
$362
$133
$2,081
$7,026
Single - Family
2,500 -3,499 sq.
ft.
Dwelling
$2,379
$3,283
$275
$329
$121
$1,892
$6,387
Single- Family
Dwelling
$2,141
$2,955
$248
$296
$109
$1,703
$5,749
1,500 -2,499 sq. ft
Single Family
Dwelling
$1,903
$2,626
$220
$263
$98
$1,514
$5,110
1,000 -1,499 sq. ft
Single- Family
Dwelling
$1,665
$2,298
$193
$230
$85
$1,324
$4,471
999 sq. ft or less
Duplex or
Multi - Family
dwelling units of
Dwelling
$1,836
$2,853
$237
$281
$0
$1,645
$5,207
3,500 sq. ft or
more
Land Use Type Unit Roads Parks
Fire/
EMS
Police Solid Wastewater TOTAL **
Waste
Duplex or
Multi- Family
dwelling units of
2,500 -3,499 sq.
ft.
Dwelling
$1,669
$2,594
$215
$256
$0
$1,495
$4,734
Duplex or
Multi Family
dwelling units of
1,500 -2,499 sq. ft
Dwelling
$1,502
$2,335
$194
$230
$0
$1,346
$4,261
Duplex or
Multi Family
dwelling units of
1,000 -1,499 sq .ft
Dwelling
$1,335
$2,075
$172
$205
$0
$1,196
$3,787
Duplex or
Multi- Family
dwelling units of
999 sq. ft or less
Dwelling
$1,168
$1,816
$151
$179
$0
$1,047
$3,314
Hotel / Motel
Room
$2,383
$1,543
$129
$155
$0
*
$4,210
Retail /
Commercial
1,000 sq.
ft.
$4,057
$0
$415
$496
$0
*
$4,968
Office
1,00 0 sq.
$3,094
$0
$234
$279
$0
*
$3,607
Industrial
1,00 0 sq.
$1,955
$0
$146
$174
$0
*
$2,275
Warehouse
1'000 sq.
$1,144
$0
$94
$112
$0
*
$1,350
Church /
Synagogue
1,000 sq.
ft.
$1,561
$0
$234
$279
$0
*
$2,074
School / College
1,0 f0 sq.
t.
$567
$0
$234
$279
$0
*
$1,080
Hospital
1,000 sq.
ft.
$4,938
$0
$234
$279
$0
*
$5,451
Nursing Home
1,000 sq.
$1,390
$0
$234
$279
$0
*
$1,903
Other
Institutional
1,000 sq.
ft.
$3,094
$0
$234
$279
$0
*
$3,607
* See wastewater impact fees by water meter size below for non - residential development.
** Does not include wastewater impact.
Water Meter Size
Wastewater Impact Fee
5/8" x 3/4" Meter
$1,892
1" Meter
$4,731
1 -1/2" Meter
$9,463
2" Meter
$15,140
3" Meter
$30,281
4" Meter
$47,315
6" Meter
$94,629
8" Meter
$151,407
10" Meter
$274,425
(b) The fees set out in subsection (a) shall be adjusted annually to account for inflation. At
the end of each calendar year, the impact fee administrator shall prepare an adjusted fee
schedule, which will be posted on the County's website and be made publicly available.
The adjusted fee schedule will go into effect on January 1 of the following year.
(c) The adjustment factor shall be the ratio of the appropriate cost index for the quarter
during which the adjustment is made (even if projected) to the same cost index for the
quarter during which the fees were last adopted, updated or adjusted. The appropriate
cost indices shall be as follows from the most recent edition of the U.S. Army Corps of
Engineers, Civil Works Construction Cost Index System, utilizing the Hawaii
adjustment factors:
(1) For road impact fees, the roads, railroads and bridges index;
(2) For parks and recreation impact fees, the recreation facilities index; and
(3) For fire /EMS, police, solid waste, and wastewater impact fees, the buildings,
grounds and utilities index.
In the event that the referenced cost indices are not available, the updates shall be based
on reasonable alternative indices as determined by the impact fee administrator.
(d) Impact fees due and payable shall be net of any approved offsets available pursuant to
section 36 -17, post- ordinance credits, and section 36 -18, pre- ordinance offsets. It shall
be the responsibility of the applicant to claim offsets prior to payment of impact fees.
Any offsets not claimed shall be deemed waived.
(e) If the type of impact - generating development is not specified on the above schedule, the
impact fee administrator shall determine the fee on the basis of the fee applicable to the
most nearly comparable type of land use on the fee schedule. In the case of road impact
fees, the impact fee administrator shall be guided in the selection of a comparable type of
land use by trip generation rates contained in the most current edition of the report titled
"Trip Generation," prepared by the Institute of Transportation Engineers (ITE), or articles
or reports appearing in the ITE Journal.
(f) In general, impact fees shall be assessed based on the principal use of a building or lot.
For example, a warehouse that contained a small administrative office would be assessed
at the warehouse rate for all of the square footage. Shopping centers are assessed at the
retail /commercial rate, regardless of the type of tenants. For a true mixed -use
development, such as one that includes both residential and nonresidential development,
(g)
the fee shall be determined by adding up the fees that would be payable for each use as if
it was a free - standing land use type pursuant to the fee schedule.
If the type of impact - generating development is for a change of land use type or for the
expansion, redevelopment, or modification of an existing development, the fee shall be
based on the net increase in the fee for the new land use type as compared to the previous
land use type.
(h) In the event that the proposed change of land use type, redevelopment, or modification
results in a net decrease in the fee for the new use or development as compared to the
previous use or development, there shall be no refund of impact fees previously paid.
(i) Square feet in the fee schedule refer to gross floor area as defined in this chapter.
Section 36 -13. Fees calculated by independent fee calculation study.
(a) The impact fee may be calculated using an independent fee calculation study at the
election of the applicant or upon the request of the impact fee administrator, in the
following circumstances:
(1) For any proposed land development not listed on the land use fee schedule; or
(2) For any proposed land development activity that the impact fee administrator
concludes will likely generate impacts costing substantially more to mitigate than
the amount of the fee that would be generated by the use of the fee schedule due
to the nature, timing, or location of the proposed development.
(b) If an applicant elects to have impact fees calculated by an independent fee calculation
study as provided in subsection (a), the applicant shall pay all costs associated with the
preparation of the independent fee study calculation.
(c) Any person who applies to perform an independent fee calculation study shall pay an
application fee of $3,000 for administrative costs associated with the review and decision
on such study.
(d) Within ten days of the administrator's acceptance of the independent fee calculation
study for review, the applicant shall publish a notice in at least two newspapers of general
circulation in the County that an independent fee calculation study has been submitted
and that it may be reviewed in the office of the administrator. The notice shall list the
land use(s) and TMK number for which the independent fee calculation is proposed.
(e) The final decision on whether to accept payment of the independent fee based on an
independent fee calculation shall be made by the council, by resolution, after
recommendation by the impact fee administrator. The impact fee administrator shall
make the recommendation to the council within ninety days after accepting a completed
application for an independent fee calculation.
Section 36 -14. Independent fee calculation formulae.
(a) The independent fee calculation study shall be based on the same service standards and
unit costs for facilities used in the needs assessment study (as adjusted by the same cost
inflation factors used in annual adjustments since the study was prepared), and shall
document the methodologies and assumptions used.
(b) An independent fee calculation study submitted for the purpose of calculating a road
impact fee may be based on data, information, or assumptions from independent sources,
provided that:
(1) The independent source is an accepted standard source of transportation
engineering or planning data; or
(2) The independent source is a local study on trip characteristics carried out by a
qualified transportation planner or engineer pursuant to an accepted methodology
of transportation planning or engineering.
(c) The independent fee calculation is the sum of the road impact fees, the parks and
recreation impact fees, the fire /EMS impact fees, police impact fees, solid -waste impact
fees, and wastewater impact fees. The formulae for calculation of these fees are listed
below.
(1) The road impact fees shall be calculated according to the following formula:
ROAD IMPACT FEE = VMT x NET COST/VMT
Where:
VMT
=
TRIPS x % NEW x LENGTH _ 2
NET COST /VMT
=
COST/VMC x VMC/VMT - CREDIT/VMT
TRIPS
=
Trip ends during an average weekday
% NEW
=
Percent of trips that are primary trips, as opposed to pass -by or
diverted -link trips
LENGTH
=
Average length of a trip on the major road facilities
2
=
Avoids double- counting trips for origin and destination
COST/VMC
=
Average cost to add a new daily vehicle -mile of capacity
VMC/VMT
=
System -wide ratio of VMC to VMT on the major road facilities
(assumed 1:1)
CREDIT /VMT
=
DEBT /VMT + PAST/VMT + GRANT/VMT
DEBT /VMT
=
Outstanding debt used for capacity improvements on existing road
facilities divided by total existing VMT
PAST /VMT
=
The net present value of property taxes paid over the last five years
by vacant land for road capacity improvements, including general
fund expenditures as well as debt service payments, per VMT
GRANT /VMT
=
The net present value of future Federal and State road capacity
funding anticipated to be forthcoming per VMT over the next 20
years
-12-
(2) The parks and recreation impact fees shall be calculated according to the
following formula:
PARKS AND RECREATION IMPACT FEE = EDUs x NET COST/EDU
Where:
EDUs
=
UNITS x EDUs/UNIT
UNITS
=
Number of dwelling units of each housing type in the
development
EDUs/UNIT
=
Number of Equivalent Dwelling Units represented by one
dwelling unit of a given housing type
NET COST /EDU
=
COST /EDU — CREDIT /EDU
COST /EDU
=
Total replacement cost of existing park facilities divided by total
existing residential development in the County, expressed in terms
of EDUs
CREDIT /EDU
=
DEBT /EDU + PAST /EDU + GRANT /EDU
DEBT /EDU
=
Outstanding debt on existing parks and recreation facilities
divided by total existing EDUs
PAST /EDU
=
The net present value of property taxes paid over the last five
years by vacant land for parks and recreation capacity
improvements, including general fund expenditures as well as
debt service payments, per EDU
GRANT /EDU
=
The net present value of future Federal and State grant funding
anticipated to be forthcoming per EDU over the next 20 years
(3) The fire /EMS impact fees shall be calculated according to the following formula:
FIRE /EMS IMPACT FEE = EDUs x NET COST/EDU
Where:
EDUs
=
UNITS X EDUs/UNIT
UNITS
=
Number of dwelling units of each housing type in the development
or thousands of square feet of nonresidential buildings of each
land use type
EDUs /UNIT
=
Equivalent Dwelling Units represented by one dwelling unit of a
given housing type or 1,000 square feet of nonresidential floor
area of a given land use type, calculated as the ratio of the
functional population per dwelling unit or per 1,000 square feet to
the functional population of the typical single family detached
unit.
For residential development, functional population per unit is one -
half the average household size for that housing type.
(4) The police impact fees shall be calculated according to the following formula:
POLICE IMPACT FEE = EDUs x NET COST/EDU
Where:
For nonresidential development, the functional population per unit
is determined by the following formula:
Functional population/1000 sf = (employee hours /1000 sf + visitor
hours /1000 sf) - 24 hours /day
Where:
Employee hours /1000 sf = employees /1000 sf x 10 hrs /day
Visitor hours /1000 sf = visitors /1000 sf x 1 hour /visit
Visitors /1000 sf = weekday ADT /1000 sf x avg, vehicle
occupancy - employees /1000 sf
Weekday ADT /1000 sf = one -way average daily trips (total trip
ends - 2)
NET COST /EDU
=
COST /EDU - CREDIT /EDU
COST /EDU
=
Total replacement cost of existing fire /EMS facilities divided
by total existing residential and nonresidential development
in the County, expressed in terms of EDUs
CREDIT /EDU
=
DEBT /EDU + PAST /EDU + GRANT /EDU
DEBT /EDU
=
Outstanding debt on existing fire /EMS facilities divided by
total existing EDUs
PAST /EDU
=
The net present value of property taxes paid over the last five
years by vacant land for fire /EMS capacity improvements,
including general fund expenditures as well as debt service
payments, per EDU
GRANT /EDU
=
The net present value of future Federal and State grant
funding anticipated to be forthcoming per EDU over the next
20 years
(4) The police impact fees shall be calculated according to the following formula:
POLICE IMPACT FEE = EDUs x NET COST/EDU
Where:
EDUs
=
UNITS X EDUs/UNIT
UNITS
=
Number of dwelling units of each housing type in the development
or thousands of square feet of nonresidential buildings of each
land use type
EDUs/UNIT
Equivalent Dwelling Units represented by one dwelling unit of a
given housing type or 1,000 square feet of nonresidential floor
area of a given land use type, calculated as the ratio of the
functional population per dwelling unit or per 1,000 square feet to
the functional population of the typical single- family detached
unit.
For residential development, functional population per unit is one-
half the average household size for that housing type.
For nonresidential development, the functional population per unit
is determined by the following formula:
Functional population/1000 sf = (employee hours /1000 sf + visitor
hours /1000 sf) ± 24 hours /day
Where:
Employee hours /1000 sf = employees /1000 sf x 10 hrs /day
Visitor hours /1000 sf = visitors /1000 sf x 1 hour /visit
Visitors /1000 sf = weekday ADT /1000 sf x avg, vehicle
occupancy - employees /1000 sf
Weekday ADT /1000 sf = one -way average daily trips (total trip
ends - 2)
NET COST /EDU
COST /EDU - CREDIT /EDU
COST /EDU
Total replacement cost of existing police facilities divided by total
existing residential and nonresidential development in the County,
expressed in terms of EDUs
CREDIT /EDU
DEBT /EDU + PAST /EDU + GRANT /EDU
DEBT /EDU
Outstanding debt on existing police facilities divided by total
existing EDUs
PAST /EDU
The net present value of property taxes paid over the last five
years by vacant land for police capacity improvements, including
general fund expenditures as well as debt service payments, per
EDU
GRANT /EDU
The net present value of future Federal and State grant funding
anticipated to be forthcoming per EDU over the next 20 years
(5) The solid waste impact fees shall be calculated according to the following
formula:
SOLID WASTE IMPACT FEE = EDUs x NET COST/EDU
Where:
EDUs
=
UNITS X EDUs/UNIT
UNITS
=
Number of dwelling units of each housing type in the development
EDUs /UNIT
=
Number of Equivalent Dwelling Units represented by one
dwelling unit of a given housing type
NET COST /EDU
=
COST /EDU - CREDIT /EDU
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COST /EDU
=
Total replacement cost of existing solid waste facilities that serve
residential development utilizing transfer stations divided by all
existing single - family detached units
CREDIT /EDU
=
DEBT /EDU + PAST /EDU + GRANT /EDU
DEBT /EDU
=
Outstanding debt on existing solid waste facilities attributable to
residential development utilizing transfer stations divided by all
existing single - family detached units
PAST /EDU
=
The net present value of property taxes paid over the last five
years by vacant land for solid waste capacity improvements
attributable to residential development utilizing transfer stations,
including general fund expenditures as well as debt service
payments, per EDU
GRANT /EDU
=
The net present value of future Federal and State grant funding
anticipated to be forthcoming for solid waste capital
improvements attributable to residential development per EDU
over the next 20 years
(6) The wastewater impact fees shall be calculated according to the following formula:
WASTEWATER IMPACT FEE = SFEs x NET COST /SFE
Where:
SFEs
=
UNITS x SFEs/UNIT
UNITS
=
Number of dwelling units of each housing type in a
residential development or the number of water meters of
various sizes in a non - residential development
SFEs /UNIT
=
Number of Single - Family Equivalents represented by one
dwelling unit of a given housing type or by a water meter of
a particular size
NET
COST /SFE
=
COST - CAPACITY x GPD /SFE — CREDIT /SFE
COST
=
Total replacement cost of existing major wastewater
facilities, excluding lines less than 12" in diameter typically
installed by developers
CAPACITY
=
Capacity of existing treatment plants in gallons per day
GPD /SFE
=
230 gallons per day per SFE
CREDIT /SFE
=
DEBT /SFE + PAST /SFE
DEBT /SFE
=
DEBT _ CAPACITY x GPD /SFE
DEBT
=
Outstanding debt on existing major wastewater facilities
and equipment
PAST /SFE
=
PAST ± CAPACITY x GPD /SFE
PAST
=
The net present value of property taxes paid over the last
five years by vacant land for wastewater capacity
improvements, including general fund expenditures as well
as debt service payments
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Section 36 -15. Reserved.
Division 3. Refunds, Credits, Off -sets, and Recalculations.
Section 36 -16. Refunds.
(a) If a building permit, for which an impact fee was paid as a condition for its issuance,
expires, is revoked, or is voluntarily surrendered, and no construction or improvement of
land has commenced, then the person or persons who paid the fee shall be entitled to a
refund of a portion of the impact fee paid. The refund amount shall consist of the amount
of impact fee paid minus three percent of the impact fee paid. The withheld amount will
be retained as an administrative fee to offset the cost of processing the refund. No
interest will be paid on refunds issued pursuant to this subsection.
(b) Any moneys in the impact fee fund that have not been spent or encumbered within six
years after the date on which such fee was paid shall be returned to the current owners
with interest since the date of payment.
(c) Written notice of the right to a refund, including the amount of the refund and the
procedure for applying for and receiving the refund, shall be sent to or served upon the
present owners of the property within thirty days from the date the refund becomes due.
Sending notices by regular mail to all present owners of record shall be sufficient to
satisfy this notice requirement.
(d) Application for a refund shall be submitted to the County within one year of the date on
which the right to a refund arises. Following approval of the refund application by the
impact fee administrator, the refund shall be paid in full. Any unclaimed refund shall be
retained in the appropriate account and expended as provided in section 36 -24.
(e) In the event that the County terminates impact fee requirements, all unexpended or
unencumbered funds shall be refunded as provided in this section. The County shall give
public notice of termination and availability of refunds at least two times. All funds
available for refund shall be retained for a period of one year at the end of which any
remaining funds may be transferred to the County's general fund and expended for any
public purpose not involving water supply or service as determined by the council.
Section 36 -17. Post - ordinance credits.
(a) After the effective date of this ordinance, credit from impact fees shall be provided for
system improvements for the same type of facility built by private parties, or for land
dedicated to and accepted by the County in lieu of the impact fee payments.
(1) Approved credits shall become effective when the improvements have been
completed and have been accepted by the County, or their construction secured by
bond or other equivalent security.
(2) No credit will be applied to either the road impact fee for improvements to the
major road facilities that primarily serve traffic generated by the applicant's
project, such as roads within a development or acceleration/deceleration lanes into
(3)
and out of the project, or to the parks and recreation impact fee for parks and
recreation that are not available for use by the general public.
Approved credits for land dedication shall become effective when the land has
been conveyed to and has been accepted by the County.
(b) To receive credit for system improvements, the developer shall submit construction
drawings, specifications, and construction cost estimates or property appraisals to the
impact fee administrator. The impact fee administrator shall determine the amount of
credit due based on the information submitted, or where such information is inaccurate or
unreliable, then, on alternative engineering or construction costs acceptable to the impact
fee administrator. The impact fee administrator may independently determine the amount
of credit to be approved for land dedication by securing other property appraisals, or
requiring submittal of other relevant information, and may consult with any relevant
County departments.
(c) If the credit only partially offsets the impact fee in a particular category for a project, the
credit shall be applied against the impact fees due and payable at the time of issuance of a
building permit.
(d) If the credit only partially offsets the impact fee for a particular category for a project
where the impact fees are not collected at the time of subdivision, that will generate a
number of individual building permits, such as an industrial subdivision, the impact fee
administrator shall determine a pro -rata reduction in the future impact fees based upon
the expected development of the property and thereafter apply the pro -rata reduction
when the impact fees are collected. The property owner may, with the consent of the
impact fee administrator, designate a portion of the property for which the credit will
apply in which case the credit shall offset the impact fees on that portion of the property
until the credit is exhausted.
(e) The applicant shall bear the burden of proof that an impact fee credit is appropriate for a
system improvement.
Section 36 -18. Pre - ordinance offsets.
(a) Owners of property for which fair share payments have been made, or for which the
County had accepted facilities or land in lieu of the payment of fair share, shall be
entitled to offset such fair share payments or amounts accepted in lieu of fair share
pursuant to subsections (b) and (c).
(b) When the payment of the fair share or the acceptance of facilities or land in lieu of fair
share was accepted by the County in complete satisfaction of the fair share requirement
for a type of development, such as the residential or hotel units allowed within a project,
no impact fees for that type of development in the project shall be assessed, provided that
the number of units is not increased. However, impact fees shall be assessed against other
impact - generating development for which no fair share was contributed.
(c) When the payment of fair share was only in partial satisfaction of the fair share
requirement, it shall offset the impact fees owed on a dollar- for - dollar basis against the
type of development. The impact fee administrator shall determine a pro -rata reduction in
the future impact fees based upon the expected development of the property and
thereafter apply the pro -rata reduction when the impact fees are collected.
(d) After the enactment of this ordinance, but prior to its effective date, owners of property
who owe fair share may elect to make payments under the terms of the fair share
condition in the zoning ordinance, or under the payment schedule contained in this
ordinance. Such property owners may also apply for in -lieu credit under the terms of this
ordinance.
(e) The offset shall be applied against the impact fees due for building permits issued on the
property until the amount of the offset is exhausted or the development project for which
the capital contribution was made is completed. In no case shall any offset be transferred
from the development project for which the capital contribution was made.
(0 The applicant shall bear the burden of proof that an impact fee credit is appropriate for a
system improvement.
Section 36 -19. Recalculation due to mistake or misrepresentation
(a) If an impact fee has been calculated and paid based on a mistake or misrepresentation, it
shall be recalculated by the impact fee administrator.
(b) Overpayments.
(1) Any amounts overpaid by an applicant shall be refunded by the impact fee
administrator to the applicant within thirty days after the acceptance of the
recalculated amount, with interest, determined by the impact fee administrator
since the date of such overpayment.
(2) A claim for overpayment shall be made within one year of the date of the
payment.
(c) Underpayments.
(1) Any amounts underpaid by the applicant shall be paid to the impact fee
administrator within thirty days after the acceptance of the recalculated amount,
with interest since the date of such underpayment.
(2) The County shall not issue any additional permits or approvals for any project for
which the impact fee was previously underpaid until such underpayment is
corrected. If amounts owed to the County are not paid within the thirty -day period
mentioned in paragraph (1), the County may also rescind any permits issued in
reliance on the previous payment of such impact fee.
Section 36 -20. Reserved.
Article 3. Impact Fee Fund.
Section 36 -21. Establishment and creation of an impact fee revolving fund.
The department of finance is hereby authorized to establish an impact fee program to
ensure that the person or persons responsible for impact - generating development and
construction bear a proportionate share of the cost of improvements to the County's major road,
parks and recreation fire /emergency medical service (EMS), police, solid waste, and wastewater
facilities that are necessitated by such development and construction.
Pursuant to section 10 -12, Hawai`i County Charter, a special revolving fund to be known
as the impact fee revolving fund is hereby created. This fund shall be interest bearing, distinct
from the general fund, and administered by the department of finance.
Section 36 -22. Impact fee administrator.
(a) The impact fee administrator shall:
(1) Receive impact fees from the department of finance and place the fees into the
impact fee fund corresponding to the benefit district;
(2) Maintain accurate records of the impact fees paid, including the name of the
person paying such fees, the project for which the fees were paid, the date of
payment of each fee, the amounts received in payment for each fee, and any other
matters that the County deems appropriate or necessary to the accurate accounting
of such fees;
(3) Manage the funds in terms of fee renewal, reimbursement, and use as described in
sections 36 -16, 36 -17, and 36 -24; and
(4) Perform related duties as required to implement the provisions of this chapter.
(b) Annually, the mayor shall present to the council a proposed capital improvements
program that shall assign moneys from each impact fee fund to specific projects and
related expenses for eligible improvements of the type for which the fees in that fund
were paid. Any moneys, including any accrued interest, not assigned to specific projects
within such capital improvements program and not expended pursuant to section 36 -16,
shall be retained in the same impact fee fund until the next fiscal year.
Section 36 -23. Funding.
(a) The impact fee program shall be funded by proceeds from the following sources:
(1) Impact fees from any person who causes or persons who cause the
commencement of impact - generating development and is obligated at that time to
pay impact fees, pursuant to the terms of this chapter; and
(2) Other sources of revenue, including but not limited to, general obligation bonds
and transfers from the general fund.
(b) The impact fee fund shall be subdivided into the following accounts:
(1) Road impact fee;
(2) Parks and recreation impact fee;
(3) Fire /EMS impact fee;
(4) Police impact fee;
(5) Solid waste impact fee; and
(6) Wastewater impact fee.
(c) Each account shall contain only those impact fees collected pursuant to this chapter for
the type of facility reflected in the title of the account plus any interest that may accrue
from time to time on such amounts. Any accrued interest shall be subject to the same
restrictions as other funds in the account.
Section 36 -24. Use of fees.
(a) The moneys in each impact fee account shall be used only for the following:
(1) To acquire or construct system improvements of the type reflected in the title of
the account;
(2) To pay debt service on any portion of any current or future general obligation
bond or revenue bond that was used to create capacity of the type reflected in the
title of the account that will be available to serve development occurring after the
effective date of this chapter;
(3)
For refunds as described in section 36 -16; or
(4) For post - ordinance credits as described in section 36 -17.
(b) The moneys in each impact fee account shall not be used for the following:
(1) Rehabilitation, reconstruction, replacement or maintenance of existing facilities;
or
(2) Ongoing operational costs.
(c) Moneys of each impact fee account shall be used in accordance with the capital
improvements program submitted by the mayor and in compliance with the community
development plan of each district, when available, and approved by the council.
(d) Pursuant to section 46- 144(5), Hawai`i Revised Statutes, within six years of the date of
collection the impact fees shall be expended or encumbered for the construction of the
public facility capital improvements for which they were collected.
(e) The sub -area benefit zones are hereby created and consist of the following aggregations
of judicial districts:
(1) North Kohala/South Kohala;
(2) North Hilo /South Hilo and Hamakua;
(3) Puna;
(4) Ka`u; and
(5) North Kona/South Kona.
(f) With the exception of solid waste and wastewater, up to twenty percent of the impact fee
revenues collected within a benefit zone may be used to fund improvements located
adjacent to the benefit zone in which the fees were collected, provided that the council
makes a finding that the improvement will provide significant benefit to new
development in the collecting zone. For solid waste and wastewater impact fees, the
percentage shall be forty percent.
(g)
Six impact fee improvement plans per each sub -area benefit zone are created, as follows:
(1) North Kohala/South Kohala benefit zone:
(A) North Kohala/South Kohala road impact fee improvement plan;
(B) North Kohala/South Kohala parks and recreation impact fee improvement
plan;
(C) North Kohala/South Kohala fire /EMS impact fee improvement plan;
(D) North Kohala/South Kohala police impact fee improvement plan;
(E) North Kohala/South Kohala solid waste impact fee improvement plan; and
(F) North Kohala/South Kohala wastewater impact fee improvement plan.
(2) North Hilo /South Hilo and Hamakua benefit zone:
(A) North Hilo /South Hilo and Hamakua road impact fee improvement plan;
(B) North Hilo /South Hilo and Hamakua parks and recreation impact fee
improvement plan;
(C) North Hilo /South Hilo and Hamakua fire /EMS impact fee improvement
plan;
(D) North Hilo /South Hilo and Hamakua police impact fee improvement plan;
(E) North Hilo /South Hilo and Hamakua solid waste impact fee improvement
plan; and
(F) North Hilo /South Hilo and Hamakua wastewater impact fee improvement
plan.
(3)
Puna benefit zone:
(A) Puna road impact fee improvement plan;
(B) Puna parks and recreation impact fee improvement plan;
(C) Puna fire /EMS impact fee improvement plan;
(D) Puna police impact fee improvement plan;
(E) Puna solid waste impact fee improvement plan; and
(F) Puna wastewater impact fee improvement plan.
(4) Ka`u benefit zone:
(A) Ka`u road impact fee improvement plan;
(B) Ka`u parks and recreation impact fee improvement plan;
(C) Ka`u fire /EMS impact fee improvement plan;
(D) Ka`u police impact fee improvement plan;
(E) Ka`u solid waste impact fee improvement plan; and
(F) Ka`u wastewater impact fee improvement plan.
(5)
North Kona/South Kona benefit zone:
(A) North Kona/South Kona road impact fee improvement plan;
(B) North Kona/South Kona parks and recreation impact fee improvement
plan;
(C) North Kona/South Kona fire /EMS impact fee improvement plan;
(D) North Kona/South Kona police impact fee improvement plan;
(E) North Kona/South Kona solid waste impact fee improvement plan; and
(F) North Kona/South Kona wastewater impact fee improvement plan.
Section 36 -25. Records.
Records shall be available for review by the public during normal business hours and
with reasonable advance notice by contacting the impact fee administrator.
SECTION 2. If any provision of this ordinance, or the application thereof to any person
or circumstance is held invalid, such invalidity shall not affect other provisions or applications of
the ordinance which can be given effect without the invalid provision or application, and to this
end, the provisions of this ordinance are declared to be severable.
SECTION 3. This ordinance shall take effect July 1, 2013.
, Hawai`i
Date of Introduction:
Date of 1st Reading:
Date of 2nd Reading:
Effective Date:
REFERENCE Cantu. 40.11
COUNCIL MEMBER,
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