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PART I: POLICY ANALYSIS CHAPTER 1: INTRODUCTION The purpose of this study is to calculate the maximum impact fees that HawaiÓi County can charge on the existing levels of service for the Big Island Ôs major road network, parks and recreation facilities, police, fire/EMS, wastewater treatment and solid waste facilities. If adopted, impact fees would replace the CountyÔs current system of Ñfair shareÒ assessment. This project has been divided into two phases. Phase I previously identified facilities for which it would be feasible to develop impact fees based on availa ble data and other factors. This Phase II report presents detailed impact fee studies necessary to im plement the policy decisions made in Phase I and develop an impact fee ordinance. Current Fair Share Contributions Since the early 1990s, the County of HawaiÓi has impos ed Ñfair shareÒ assessments on applicants for new residential (including agricultural lots zoned one acre or less in size) and hotel zoning. The fees, which are imposed as a condition of zoni ng approval, are collected prior to securing final subdivision approval for newly created lots or prior to obtaining final pl an approval for multi-family or hotel development. The fees, which are adjusted annually for inflat ion based on the Honolulu Consumer Price Index (CPI), currently (as of November 2005) total approxim ately $9,991.20 per dwelling unit; $6,411.25 for multi-family; and $10,994.22 for re sort, per rental unit. The assessm ents are collected for roads, parks, fire, police and solid waste facilities. The CountyÔs fair share assessments have never been adopted as an ordinance, although the County Council did pass a general authorization in 1992 for the collection of such fees as a condition of development approval in 1992 (HawaiÓi County Cod e §2-162). The fees are based on an impact fee study that was prepared by a consultant in 1990, but was never f 1 County. The fees calculated in that report are adj usted annually based on the change in the Honolulu Consumer Price Index. Many of the zoning ordinances passed by the HawaiÓi County Council in recent years contain a provision requiring that in the even t an impact fee ordinance is adopted, it will give credit for th share contributions. A typical provision reads as follows: ÑShould the Council adopt a Unified Impact Fees Ordinance setting forth criteria for imposit ion of exactions or assessment of impact fees, conditions included herein shall be credited towards the requirements of the Unified Impact Fees 2 Ordinance.Ò While the fair share assessments are substantial, they have not done in 2004 determined that over $74 million had been assessed on new approved rezonings in the ten years of the program, but only $3.6 million had b een collected in cash and another $15.2 million had 1 Ann Usagawa, Development Impact Fee Pricing Technical Report , August 1990 2 Ordinance No. 05-74, adopted on May 18, 2005 H Ó C \I N A ÐI F S September 19, 2006, Page 7 AWAI I OUNTY NFRASTRUCTURE EEDS SSESSMENT MPACT EE TUDY