Loading...
HomeMy WebLinkAboutIPFNA final 9-14-06 Infrastructure and Public Facilities Needs Assessment: Impact Fee Study prepared for County of HawaiÓi Planning Department prepared by DA UNCAN SSOCIATES in association with HH&F,P ELBER ASTERT EE LANNERS September 2006 Table of Contents EXECUTIVE SUMMARY.........................................................1 Overview of the Project......................................... Organization of the Report...................................... Policy Recommendations.......................................... Impact Fee Summary.............................................. Impact Fee Revenue Projections...............................................4 Impact Fee Comparisons.......................................... PART I: POLICY ANALYSIS......................................... CHAPTER 1: INTRODUCTION......................................... Current Fair Share Contributions........................................7 Background...................................................... CHAPTER 2: LEGAL FRAMEWORK...................................... General Principles.............................................. State Enabling Act.............................................. CHAPTER 3: POLICY ISSUES..............................................15 Treatment of Existing Lots...................................... Affordable Housing.............................................. Progressive Residential Fees.................................... Time of Collection...................................................17 Assessment and Benefit Districts................................ Pre-Ordinance Credits........................................... Post-Ordinance Reimbursements................................... Phase-In Period................................................. Maximum Impact Fees............................................. CHAPTER 4: AGENCY AND PUBLIC PARTICIPATION...................... Overview........................................................ CHAPTER 5: LESSONS LEARNED...................................... CHAPTER 6: NEXT STEPS/IMPLEMENTATION............................ Action Items If Impact Fees Not Adopted......................... Action Items if Impact Fees Adopted............................. PART II: IMPACT FEE CALCULATIONS................................ CHAPTER 7: ROADS................................................ Assessment and Benefit Districts................................ Service Unit.................................................... Major Roadway System............................................ Methodology..................................................... Travel Demand................................................... Roadway Capacity................................................ Cost per Service Unit........................................... Net Cost per Service Unit....................................... Maximum Fee Schedule............................................ Capital Improvement Plan........................................ CHAPTER 8: PARKS AND RECREATION................................. Assessment and Benefit Districts................................ Service Unit.................................................... Cost Per Service Unit........................................... Net Cost Per Service Unit....................................... Maximum Fee Schedule............................................ Capital Improvement Plan........................................ CHAPTER 9: FIRE/EMS............................................. Assessment and Benefit Districts................................ Service Unit.................................................... Cost per Service Unit........................................... Net Cost per Service Unit....................................... Maximum Fee Schedule............................................ Capital Improvement Plan........................................ CHAPTER 10: POLICE.............................................. Assessment and Benefit Districts................................ Service Unit.................................................... Cost per Service Unit........................................... Net Cost per Service Unit....................................... Maximum Fee Schedule............................................ Capital Improvement Plan........................................ CHAPTER 11: SOLID WASTE......................................... Assessment and Benefit Districts................................ Service Unit.................................................... Cost Per Service Unit........................................... Net Cost per Service Unit....................................... Maximum Fee Schedule............................................ Capital Improvement Plan........................................ CHAPTER 12: WASTEWATER.......................................... Assessment and Benefit Districts................................ Service Unit.................................................... Wastewater System Capacity...........................................94 Cost Per Service Unit........................................... Net Cost per Service Unit....................................... Maximum Fee Schedule............................................ Capital Improvement Plan........................................ PART III: APPENDICES........................................................101 APPENDIX A: ROAD INVENTORY...................................... APPENDIX B: GENERAL OBLIGATION DEBT............................1 APPENDIX C: DEMOGRAPHIC DATA.................................... APPENDIX D: FUNCTIONAL POPULATION..............................1 APPENDIX E: EXISTING PARK FACILITY INVENTORY...................1 APPENDIX F: WASTEWATER FACILITY INVENTORY.....................12 APPENDIX G: STATE IMPACT FEE LAW................................ APPENDIX H: STATE ACT 197....................................... APPENDIX I: NOVEMBER FOCUS GROUPS..............................1 APPENDIX J: JANUARY VIDEO CONFERENCE...........................1 APPENDIX K: MARCH WORKSHOPS SUMMARY..........................147 APPENDIX L: AUGUST WORKSHOPS SUMMARY.........................165 APPENDIX M: PARTICIPANTS........................................ APPENDIX N: IMPACT FEE GLOSSARY................................. APPENDIX O: FREQUENTLY ASKED QUESTIONS........................18 Prepared by Duncan Associates 13276 Research Boulevard, Suite 208, Austin, TX 78750 (512) 258-7347 x204, clancy@duncanplan.com, www.impactfees.com List of Tables and Figures Table 1:POTENTIAL IMPACT FEE SUMMARY............................ Table 2:POTENTIAL ANNUAL IMPACT FEE REVENUE..................... Table 3:POTENTIAL REVENUE VERSUS PLANNED EXPENDITURES........... Table 4:COMPARATIVE IMPACT FEE PER SINGLE-FAMILY UNIT........... Table 5:HYPOTHETICAL FAIR SHARE REVENUE, 2000-2005..........................8 Table 6:COUNTY POPULATION GROWTH BY DISTRICT, 1990-2000....................9 Table 7:HAWAIÓI COUNTY POPULATION AND VISITORS.................. Table 8:RESIDENTIAL AND NONRESIDENTIAL DEVELOPMENT, 2000-2006............10 Table 9:OWNERSHIP OF VACANT RESIDENTIAL LOTS.................... Table 10:ROAD IMPROVEMENT NEEDS..........................................31 Table 11:SINGLE-FAMILY TRIPS BY BEDROOMS........................ Table 12:SINGLE-FAMILY TRIPS BY SQUARE FOOTAGE.................. Table 13:ESTIMATED ACTUAL VEHICLE-MILES OF TRAVEL............... Table 14:TOTAL DAILY TRIPS...................................... Table 15:AVERAGE TRIP LENGTH.................................... Table 16:AVERAGE TRIP LENGTH BY TRIP PURPOSE.................... Table 17:TRAVEL DEMAND SCHEDULE................................. Table 18:DAILY VEHICLE CAPACITIES............................... Table 19:EXISTING SYSTEM-WIDE CAPACITY/DEMAND RATIO............. Table 20:RECENT ROAD IMPROVEMENTS............................... Table 21:ROAD COST PER SERVICE UNIT............................. Table 22:PLANNED ROAD IMPROVEMENT FUNDING, 2006-2008......................45 Table 23:STATE AND FEDERAL ROAD FUNDING CREDIT PER SERVICE UNIT............45 Table 24:ROAD DEBT CREDIT....................................... Table 25:ROAD GENERAL FUND HISTORICAL CAPACITY EXPENDITURES..... Table 26:ROAD PROPERTY TAX CREDIT............................... Table 27:ROAD NET COST PER SERVICE UNIT......................... Table 28:ROAD NET COST SCHEDULE................................. Table 29:ROAD CAPITAL IMPROVEMENT PROGRAM....................... Table 30:PARK EQUIVALENT DWELLING UNIT MULTIPLIERS.............. Table 31:EXISTING PARK SERVICE UNITS............................ Table 32:PARK LAND REPLACEMENT COST............................. Table 33:STANDARD PARK FACILITY REPLACEMENT COSTS............... Table 34:SPECIAL PARK STRUCTURES AND FACILITIES................. Table 35:PARK COST PER SERVICE UNIT............................. Table 36:PARK DEBT CREDIT PER SERVICE UNIT...................... Table 37:DIRECT PARK GENERAL FUND EXPENDITURES, 2001-2005..................57 Table 38:TOTAL PARK GENERAL FUND EXPENDITURES, 2001-2005...................57 Table 39:PARK PROPERTY TAX CREDIT............................... Table 40:PARK GRANT FUNDING, 2000-2005......................................58 Table 41:PARK GRANT FUNDING CREDIT.............................. Table 42:PARK NET COST PER SERVICE UNIT......................... Table 43:PARK NET COST SCHEDULE................................. Table 44:PARK CAPITAL IMPROVEMENT PROGRAM....................... Table 45:FIRE STATION CONSTRUCTION COST......................... Table 46:EXISTING FIRE/EMS FACILITY COSTS....................... Table 47:EXISTING FIRE/EMS VEHICLE COST......................... Table 48:EXISTING FIRE/EMS EQUIPMENT COST....................... Table 49:FIRE/EMS COST PER SERVICE UNIT......................... Table 50:FIRE/EMS DEBT CREDIT PER SERVICE UNIT.................. Table 51:FIRE/EMS GENERAL FUND CAPACITY EXPENDITURES, 2001-2005............68 Table 52:FIRE/EMS PROPERTY TAX CREDIT........................... Table 53:FIRE/EMS CAPITAL EQUIPMENT GRANTS, 2001 to 2005.....................69 Table 54:FIRE/EMS GRANT FUNDING CREDIT.......................... Table 55:FIRE/EMS NET COST PER SERVICE UNIT..................... Table 56:FIRE/EMS NET COST SCHEDULE............................. Table 57:FIRE/EMS CAPITAL IMPROVEMENT PROGRAM................... Table 58:EXISTING POLICE FACILITY REPLACEMENT COSTS............. Table 59:POLICE VEHICLE AND MAJOR CAPITAL EQUIPMENT COST........ Table 60:POLICE COST PER SERVICE UNIT........................... Table 61:POLICE GRANT FUNDING, 2000 to 2005...................................76 Table 62:POLICE GRANT FUNDING CREDIT............................ Table 63:POLICE DEBT CREDIT..................................... Table 64:POLICE GENERAL FUND CAPACITY EXPENDITURES, 2001-2005..............77 Table 65:POLICE PAST PROPERTY TAX CREDIT........................ Table 66:POLICE NET COST PER SERVICE UNIT....................... Table 67:POLICE NET COST SCHEDULE............................... Table 68:POLICE CAPITAL IMPROVEMENT PROGRAM..................... Table 69:EXISTING SOLID WASTE SERVICE UNITS..................... Table 70:SOLID WASTE TRANSFER STATION COST...................... Table 71:SOLID WASTE LANDFILL COST.............................. Table 72:SOLID WASTE EQUIPMENT COST............................. Table 73:SOLID WASTE COST PER SERVICE UNIT...................... Table 74:SOLID WASTE OUTSTANDING DEBT ALLOCATION................ Table 75:SOLID WASTE DEBT CREDIT PER SERVICE UNIT............... Table 76:SOLID WASTE GENERAL FUND CAPACITY EXPENDITURES, 2001-20........86 Table 77:SOLID WASTE PAST PROPERTY TAX CREDIT................... Table 78:SOLID WASTE GRANT FUNDING, 2000 to 2005.............................87 Table 79:SOLID WASTE GRANT FUNDING CREDIT....................... Table 80:SOLID WASTE NET COST PER SERVICE UNIT.................. Table 81:SOLID WASTE NET COST SCHEDULE.......................... Table 82:SOLID WASTE CAPITAL IMPROVEMENT PROGRAM................ Table 83:METER EQUIVALENCY FACTORS.............................. Table 84:WASTEWATER SERVICE UNIT MULTIPLIERS.................... Table 85:WASTEWATER SYSTEM CAPACITY............................. Table 86:WASTEWATER FACILITY REPLACEMENT COST................... Table 87:WASTEWATER COST PER SERVICE UNIT....................... Table 88:WASTEWATER FACILITY DEBT PER SERVICE UNIT.............. Table 89:WASTEWATER GENERAL FUND EXPENDITURES, 2001-2005.................97 Table 90:WASTEWATER PAST PROPERTY TAX CREDIT.................... Table 91:WASTEWATER NET COST PER SERVICE UNIT................... Table 92:WASTEWATER NET COST SCHEDULE........................... Table 93:WASTEWATER CAPITAL IMPROVEMENT PROGRAM................. Table 94:EXISTING MAJOR ROAD INVENTORY.......................... Table 95:ORIGINAL GENERAL OBLIGATION DEBT BY DEPARTMENT......... Table 96:ALLOCATION OF GENERAL OBLIGATION DEBT BY DEPARTMENT.... Table 97:OUTSTANDING GENERAL OBLIGATION DEBT BY DEPARTMENT...... Table 98:EXISTING DWELLING UNITS BY HOUSING TYPE................ Table 99:AVERAGE HOUSEHOLD SIZE BY HOUSING TYPE, 2000.....................109 Table 100:AVERAGE HOUSEHOLD SIZE BY BEDROOMS.............................110 Table 101:SINGLE-FAMILY HOUSEHOLD SIZE BY SQUARE FEET......................111 Table 102:NONRESIDENTIAL LAND USE, 2005.....................................111 Table 103:RESIDENTIAL EQUIVALENT DWELLING UNITS............................113 Table 104:NONRESIDENTIAL EQUIVALENT DWELLING UNITS........................114 Table 105:TOTAL EQUIVALENT DWELLING UNITS..................................115 Table 106:EXISTING PARK FACILITY INVENTORY..................................117 Table 107:NON-STANDARDIZED PARK FACILITY INVENTORY........................121 Table 108:WASTEWATER FACILITIES INVENTORY.................................123 Figure 1:JUDICIAL DISTRICTS..................................... Figure 2:PROPOSED BENEFIT DISTRICTS............................. Figure 3:MAJOR ROADWAY SYSTEM................................... Figure 4:ROAD IMPACT FEE FORMULA................................ Figure 5:DAILY TRIPS BY UNIT SIZE............................... Figure 6:EXISTING COUNTY PARKS.................................. Figure 7:FIRE STATION LOCATIONS................................. Figure 8:POLICE STATION LOCATIONS............................... Figure 9:LANDFILL/TRANSFER STATION LOCATIONS.................... Figure 10:WASTEWATER TREATMENT FACILITIES....................... Figure 11:SEWER SERVICE AREAS................................... this page intentionally left blank EXECUTIVE SUMMARY This study calculates the maximum impact fees that the County of HawaiÓi could charge based on the existing levels of service for roads, park and recreation facilities, fire/emergency medical service (EMS) equipment and facilities, police equipment and facilities, residential solid waste facilities and equipment and wastewater facilities. Overview of the Project The County of HawaiÓi Planning Department contracted with Helber Hastert and Fee to conduct an Infrastructure and Public Facilities Needs Assessment (IPFNA) study and draft ordinance. Helber Hastert & Fee subcontracted with Duncan Associates, impact fee experts of Austin, Texas, and Alice Moon and Co., a community and public relations firm of Hilo, HawaiÓi to achieve the project outcomes. Funding was provided by the HawaiÓi County Council. The Infrastructure and Public Facility Needs Assessment project was divided into two phases. The first phase focused on policy analysis, and the second phase focused o The first phase of this project was a policy analysis that culminated in the preparation of an Ordinance Issues Memorandum (October 2005) and a Policy Analysis Memorandum (January 2006). The first phase also included an extensive public participation process, including November 2005 focus groups in Hilo and Kona, a January 2006 video conference with participants in Kona, Hilo and Honolulu, and March 2006 workshops in Hilo and Kona. This report represents one of two major work products of the second, implementation phase of the project. This report provides the detailed analysis and calculations needed to support the adoption of an impact fee ordinance. It also summarizes the major policy recommendations resulting from the first phase. The other major work product of this phase is a draft ordinance, which is provided separately. Organization of the Report This Executive Summary begins the report. It summarizes the policy recommendations for both this study and the ordinance, the maximum impact fees that could be adopted by the County Council, the revenue that could be generated if the fees are adopted at the full amount, and a comparison of impact fee amounts calculated for HawaiÓi County with the current fair share assessments and average fees charged by jurisdictions on the mainland. The remainder of the report is divided into three parts. Part I: Policy Analysis includes five chapters: Introduction, Legal Framework, Policy Issues, Agency and Public Steps/Implementation. Part II: Impact Fee Calculations consists of six chapters devoted to Roads, Parks, Fire/EMS, Police, Solid Waste and Wastewater facilities. Part III: Appendices contains additional detail on the legal framework, public participation and impact fee calculations, as well as a glossary of terms and answers to frequently asked questions abou Part I: Policy Analysis begins with Chapter 1: Introduction. It summarizes the current fair share assessment system that would be replaced by impact fees. This chapter also describes growth trends on the Big Island. HÓC\INAÐIFSSeptember 19, 2006, Page 1 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Chapter 2: Legal Framework follows. This chapter describes the specific requirements of the State impact fee enabling act. It also explains the fundamental principles that govern impact fees. These principles guide the recommendations to base the impact fees on the existing levels of service, and to reduce the fees to account for other revenues that will be generated by new development and used to provide the same level of service that the fees are intended to Chapter 3: Policy Issues summarizes the public participation process and the recommendat major issues that came out of the first phase of the project. The policy issues deal primarily wi to structure the impact fee ordinance, rather than with the impact fee study that is the major focus of this report. Chapter 4: Agency and Public Participation describes the participation of County and State agency staff in providing data and input and the outreach efforts used Chapter 5: Lessons Learned describes some of the lessons learned during the agency and pub sessions. Chapter 6: Next Steps/Implementation outlines action items if impact fees are not adopted, and other action items if impact fees are adopted. Part II: Impact Fee Calculations contains the remaining chapters of the report, which calculate net cost to accommodate new development at the existing level of service for each of the following facility types: Chapter 7: Roads, Chapter 8: Parks and Recreation, Chapter 9: Fire/EMS, Chapter 10: Police, Chapter 11: Solid Waste and Chapter 12: Wastewater. Policy Recommendations Based on the analysis conducted for Phase I, the County should c assessments with a true impact fee system that follows the requirements of the State impact fee enabling act. An impact fee collected from all new development would be more legally defensible, more equit and generate significantly more revenue than the current Ñfair shareÒ system. This additional revenue would translate into capital improvements that would benefit all 1.Treatment of Existing Lots. The concern about how to treat existing lots is rooted in a concern about affordable housing. It is recommend that affordable housing be addressed separately, with no special treatment of existing lots. 2.Affordable Housing. It is important to mitigate the effects of impact fees on lower-income residents. Therefore, impact fees for affordable housing projects (e.g., Habitat for Humanity or self-help housing) should be paid by the County from other funding sources. To promote housing affordability more generally, the County could provide grants or loans to eligible homebuyers at closing to cover the amount of the impact fees pai 3.Progressive Residential Fees. This report presents the option of progressive single-family fees that vary by the size of the dwelling as one way to address this option will not be available if the County decides to collect fees for new single-family lots at the time of subdivision approval, since the size of the unit will not be known at that time. HÓC\INAÐIFSSeptember 19, 2006, Page 2 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY 4.Time of Collection. To promote the provision of infrastructure concurrent with the impact of development, the County could establish a two-tier system and collect impact fees from new single-family residential development at the time of final subdivision approval. Other types of development (commercial, industrial), including existing lots subdivided prior to the effective date of the impact fee ordinance, would pay impact fees at the time the building permit is issued. 5.Assessment and Benefit Districts. It is recommended that all of the proposed impact fees be calculated county-wide, and that the county be divided into f the proposed impact fees. To facilitate projects of regional benefit, it is recommended that the County allow up to 20 percent of the impact fees (40 percent for solid waste fees) collected in any district to be used for projects located outside the district, provided that significant benefit will be provided to new development in the district in which the 6.Pre-Ordinance Credits. If developers have paid fair share assessments or made in-kind contributions for projects that have not been completed, impact eliminated for any remaining development in those projects. 7.Post-Ordinance Reimbursements. If developers are required, or agree, to dedicate land or make eligible improvements for impact fee facilities after the effective date of the ordinance, they should be reimbursed from impact fees for the value of thos 8.Phase-in Period. The phase-in period provides the public with notice that impac forthcoming. It also gives the County administration time to develop administrative procedures to implement the ordinance. The recommended effective date of the impact fee ordinance is one year after the adoption date. During the one-year phase-in assessments would continue to be in effect. 9.Maximum Fees. The County can charge any percentage of the maximum fees calcu this report, up to 100 percent, as long as the same percentage is applied to all land use categories. The percentage of the maximum fees charged could vary by benefit district. With the exception of solid waste fees, which have a large county-wide component (the landfill), individual fees could be charged in some districts but not other Impact Fee Summary The maximum potential fees calculated in this report for all six facilities and all land use types are presented in Table 1. All fees represent the maximum impact fee calculated based on the existing county-wide level of service and should be assessed through a uniform county-wide fee. The maximum road fee shown in this table does not include State roadsÏthe Co maximum fee with State roads included. If State road costs are included, the road fees would be much higher. The County can charge less than 100 percent of the full amount that could be charged, as long as the fees are reduced proportionately for all land use types. For new single-family homes, the County has the option of charging a flat rate for all single-family homes, or charging fees that vary between six dwelling unit size categories based on living area. HÓC\INAÐIFSSeptember 19, 2006, Page 3 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Table 1 POTENTIAL IMPACT FEE SUMMARY Unit ofFire/Solid Waste- Land Use TypeMeasurementRoads*ParksEMSPoliceWaste water** Total Less than 1,000 sq. ft.Dwelling$4,190$6,369$533$637$235$3,672 1,000 - 1,499 sq. ft.Dwelling$4,758$6,763$566$677$250$3,899 $1 1,500 - 1,999 sq. ft.Dwelling$4,979$7,026$582$696$257$4,050 $1 2,000 - 2,999 sq. ft.Dwelling$5,232$7,420$621$742$274$4,277 $1 3,000 - 3,999 sq. ft.Dwelling$5,481$7,879$659$788$291$4,542 $1 4,000 sq. ft or moreDwelling$5,675$8,404$703$841$310$4,845 $20 Single-Family (flat rate)Dwelling$4,758$6,566$549$657$242$3,785 Multi-FamilyDwelling$3,338$5,187$429$512$0$2,990 $12,456 Hotel/MotelRoom$4,767$3,086$258$309$0$1,779 $10,199 Retail/Commercial1,000 sq. ft.$8,114$0$830$992$0$606 $10,541 Office1,000 sq. ft.$6,187$0$467$558$0$606 $7,817 Industrial1,000 sq. ft.$3,909$0$291$348$0$606 $5,154 Warehouse1,000 sq. ft.$2,287$0$187$223$0$606 $3,302 Church/Synagogue1,000 sq. ft.$3,121$0$467$558$0$606 $4,752 Elem./Sec. School1,000 sq. ft.$1,134$0$467$558$0$606 $2,765 Hospital1,000 sq. ft.$9,875$0$467$558$0$606 $11,505 Nursing Home1,000 sq. ft.$2,780$0$467$558$0$606 $4,410 Other Institutional1,000 sq. ft.$6,187$0$467$558$0$606 $7,817 * County roads only; potential fee if State roads are included w ** Wastewater fees will only be assessed for land uses served by County wastewater facilities. Source: Potential fees for roads, parks, fire/EMS, police, solid waste and wastewater facilities from Tables 28, 43, 56, 67, 81 and 92; wastewater fees for nonresidential uses are estimates based Impact Fee Revenue Projections If adopted at the maximum levels calculated in this report, it is estimated that impact fees could generate approximately $45.6 million annually, as shown in Table 2. To put this in perspective, the road impact fee revenue would allow the County to construct about 1.7 miles of two-lane road per year. The park fees would fund the acquisition and development of 54 acres of new parks annually. The fire/EMS fees would allow the construction of a fire station with two fire engines and one tanker each year. The po fees would fund the construction of one police substation annually. The solid waste fees would fund the construction of about one transfer station every two years. The wastewater fees would fund the construction of a new treatment plant every three years to replace cesspools. HÓC\INAÐIFSSeptember 19, 2006, Page 4 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Table 2 POTENTIAL ANNUAL IMPACT FEE REVENUE Single- Multi- Family Family Retail Office IndustrialTotal Unit of MeasurementDwellingDwelling1000 sf1000 sf1000 sf Annual Growth1,88156636125628 Roads*$8,947,487$1,889,268$2,927,825$1,584,471$110,917$15,459,967 Parks$12,348,702$2,936,096$0$0$0$15,284,799 Fire/EMS$1,032,506$242,835$299,509$1,585,727$8,256$3,168,834 Police$1,235,623$289,817$357,967$142,911$9,874$2,036,191 Solid Waste$455,742$0$0$0$0$455,742 Wastewater$7,118,465$1,692,487$218,544$155,109$17,183$9,201,788 Total Revenue$31,138,525$7,050,503$3,803,845$3,468,218$146,230$45,607,321 * County roads only; potential revenue if State roads are included would be much higher. Source: Projected annual growth based on 2000 to 2005 building permit data; potential facility fees from Table 1. Another way to put the potential revenues in perspective is to c programmed in the CountyÔs capital improvements program for growth-related improvements. As shown below, the potential revenue at the maximum fee levels calculated in this report would exceed planned capacity expenditures programmed in the current 5-year capital improvements program for parks, fire/EMS and wastewater. Other projects would need to be impact fees for these facilities. Potential revenue from road and solid waste impact fees, on the other hand, would fund only a small fraction of planned projects. Table 3 POTENTIAL REVENUE VERSUS PLANNED EXPENDITURES Annual CIP % Funded Planned by Impact Annual Impact Type of FacilityFee Revenue ExpendituresFees Roads*$15,460,000 $87,740,00018% Parks$15,285,000 $12,015,800127% Fire/EMS$3,169,000 $4,742,00067% Police$2,036,000 $2,752,00074% Solid Waste$456,000 $3,275,00014% Wastewater$9,202,000 $4,806,000191% Total$45,608,000 $115,330,80040% * County roads only; potential revenue if State roads are included is much higher. Source: Potential revenue from Table 2; annual expenditures is one-fifth of eligible CIP funding from the table at the end of each chapter in Part II.. Impact Fee Comparisons The maximum impact fees calculated in this report are compared with HawaiÓi CountyÔs existing fair share assessments and California and national average impact fees in Table 4. The potential single- family impact fee is higher than the current fair share assessments for all facilities. The potential road impact fees for roads (County roads only) are very similar to the current fair share assessments and the California average (although the road fee would far exceed these if it included State road costs). The HÓC\INAÐIFSSeptember 19, 2006, Page 5 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY potential park fees are considerably higher than the current fair share assessments, and somewhat higher than the California average. The other impact fees are on par with current fair share assessments and what the average jurisdiction on the mainland charges for the sa Table 4 COMPARATIVE IMPACT FEE PER SINGLE-FAMILY UNIT MaximumCurrent Fair CaliforniaNational Facility Impact Fee Share Assess.AverageAverage Roads*$4,758 $4,281 $4,210 $2,270 Parks$6,566 $4,818 $5,890 $2,055 Fire$549 $459 $633 $365 Police$657 $232 $861 $345 Solid Waste$242 $201 na $189 Total$12,772 $9,991 $11,594 $5,224 Wastewater$3,785 na $4,716 $2,587 * County roads only; maximum fee if State roads are included is Source: Maximum impact fee for single-family unit from Table 1; HawaiÓi County fair share assessments as of November 2005; California and national average Associates survey, August 5, 2006 HÓC\INAÐIFSSeptember 19, 2006, Page 6 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY 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 IslandÔs 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 available data and other factors. This Phase II report presents detailed impact fee studies necessary to implement 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 imposed 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 zoning approval, are collected prior to securing final subdivision approval for newly created lots or prior to obtaining final plan approval for multi-family or hotel development. The fees, which are adjusted annually for inflation based on the Honolulu Consumer Price Index (CPI), currently (as of November 2005) total approximately $9,991.20 per dwelling unit; $6,411.25 for multi-family; and $10,994.22 for resort, per rental unit. The assessments 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 Code §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 adjusted 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 event 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 imposition 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 been 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 HÓC\INAÐIFSSeptember 19, 2006, Page 7 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY 3 been provided by developers in the form of in-kind contributions This is because most of the land that has been subject to fair share assessments been subdivided. If the fair share assessment amounts had been at time of building permit, they would have generated $103 million in cash and credits since January 2000, and if they had been assessed on nonresidential as well as residential develop have generated $170 million in less than six years, as shown in Table 5 HYPOTHETICAL FAIR SHARE REVENUE, 2000-2005 FacilityResidential NonresidentialTotal Roads$44,176,556$58,813,053 $102,989,609 Parks$50,038,557$0 $50,038,557 Police$2,273,269$2,743,975 $5,017,244 Fire$4,783,316$3,618,026 $8,401,342 Solid$2,102,646$1,812,255 $3,914,901 Total $103,374,344$66,987,309 $170,361,653 Source: Estimated revenue based on building permits issued from January 2000 through August 31, 2005 and annual fair share rates based o ContributionsÏAdjustments for inflation using the Honolulu Consumer Price Index.Ò Impact fees would essentially replace the fair share contributions. Lots that had paid fair share contributions would get credit against the impact fees or be exempt from having to pay impact fees for the same type of facilities. Fair share contributions made at zoning but not yet collected at the time of the effective date of the impact fee ordinance (because the property had not yet been subdivided) would become void; instead of paying fair share contributions, the properties would pay impact fees. A major difference is that impact fees would be assessed on all new deve development and residential development in areas with existing z Background The County of HawaiÓi encompasses the entire island of HawaiÓi (the ÑBig IslandÒ). The land area of the county is approximately twice the combined land area of all Traditionally, agriculture has played an important role in the CountyÔs economy and much of the CountyÔs population growth and development was tied to the growt agricultural economy. The islandÔs population declined after World War II with the decreasing need for agricultural workers. Since the 1960s, however, tourism has emerged as the primary economic activity. In addition, the County has seen substantial population growth beyond what would be expected from economic opportunities in the CountyÔs primary industries; such due to in-migration of people drawn to the quality of life in th 3 HawaiÓi County Planning Department, Fair Share Contributions Annual Report 2004, May 21, 2004 HÓC\INAÐIFSSeptember 19, 2006, Page 8 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY The County of HawaiÓi is currently the second most populous coun Figure 1 HawaiÓi. The 2000 U.S. Census recorded the CountyÔs population JUDICIAL DISTRICTS 148,677. The County of HawaiÓiÔs population growth has remained relatively constant over the last two decades, with a slight decline from an annual rate of 2.71 percent in the 1980s to 2.14 percent in the According to population projections provided in the medium serie projections in the HawaiÓi County General Plan, HawaiÓi CountyÔs population is expected to grow at about 1.9 percent a year over the next two decades. Under this growth assumption, the CountyÔs population is expected to be about 217,718 in 2020. As shown in Table 6, certain districts experienced much more rap growth during the 1990s than the county as a whole. The bulk of growth occurred in the districts of Puna, South Kohala and North The districts of North Kohala and KaÓu at opposite ends of the i also grew at a faster rate than the island average, but they started from a relatively small population base. In the 1950s and 1960s, the County allowed many subdivisions with minimal improvements, mostly in Puna and KaÓu, with a few in South Kona. Today, there are about which about 40,000 are vacant. KaÓu has about 16,000 residential lots, of which about 13,000 are vacant (mostly in HawaiÓian Ocean View Estates). Thirty-seven percent of the islandÔs population increase in the 1990s occurred in Puna, almost entirely in these older su Table 6 COUNTY POPULATION GROWTH BY DISTRICT, 1990-2000 JudicialGrowthGrowth District 1990 2000 GrowthShare Rate 1-Puna20,78131,33510,55437.21%4.19% 2-South Hilo44,63947,3862,7479.69%0.60% 3-North Hilo1,5411,7201790.63%1.10% 4-Hamakua5,5456,1085631.99%0.97% 5-North Kohala4,2916,0381,7476.16%3.47% 6-South Kohala9,14013,1313,99114.07%3.69% 7-North Kona22,28428,5436,25922.07%2.51% 8-South Kona7,6588,5899313.28%1.15% 9-KaÓu4,4385,8271,3894.90%2.76% Total 120,317148,67728,360100.00%2.14% Source: County of HawaiÓi Data Book, Section 1 <http://www.hawaii-county In addition to the development potential on zoned and subdivided lots, there is also significant development that can occur by subdivision of land under current zoning. According to County HÓC\INAÐIFSSeptember 19, 2006, Page 9 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Planning Department staff, eight areas outside of major resorts could be subdivided to accommodate 4 11,000 dwelling units without additional rezoning. In addition to the resident population, HawaiÓi County has a significant daily tourist population. Table 7 shows the resident population and visitor industry projections through 2020. Based on data from the HawaiÓi County General Plan, there were 1,265,700 visitors and 10,041 hotel rooms in the Co The average daily visitor census data illustrates the significance of tourism. The average daily number of visitors is projected to increase by 2.00 percent annually, f Table 7 HAWAIÓI COUNTY POPULATION AND VISITORS Resident Avg. DailyHotel YearPopulationVisitors Rooms 1985105,900 8,040 7,511 1990120,317 16,970 8,952 1995137,290 18,650 9,575 2000148,677 21,831 10,041 2005159,908 24,103 10,513 2010176,937 26,612 10,892 2015195,965 29,382 11,200 2020217,718 32,440 11,452 Source: HawaiÓi County General Plan, Table 1-5; Average Daily Visitor Census, 1985 to 2000, from HawaiÓi County Data Book, Table 7.3, data from 2005-2020 derived used total visitor growth rate projected increase of 2% per year from HawaiÓi County General Plan. Nonresidential growth appears to be at least as strong as residential construction, based on building permit data. Since the year 2000, the number of housing units h annually, while nonresidential square footage has been increasing by almost seven percent annually. Table 8 RESIDENTIAL AND NONRESIDENTIAL DEVELOPMENT, 2000-2006 2000 2000-20052006 Annual Land UseCensusPermits EstimateIncrease Single-Family Detached48,23110,12758,3583.2% Multi-Family/Other14,4433,12417,5673.3% Total Residential Units62,67413,25175,9253.2% Total Nonresidential Sq. Ft.17,233,6266,727,88123,961,5076.8% Source: Residential data from 2000 U.S. Census and January 1, 2000 thro data; 2005 nonresidential square footage estimate from HawaiÓi C assessment date for 2005 tax year); 2000-2005 nonresidential per 2000 through August 31, 2005; 2000 nonresidential estimate is di 4 The areas are Waikoloa Village, Bridge Ainalea, Kohala Ranch Project IV, former ÑY.O.Ò property, University Terrace, Wilder Road property, Parker Ranch 2020 Plan in Waimea, former Haseko property south of Kona Palisades, per HawaiÓi County Planning Department memorandum, March 9, 2005 HÓC\INAÐIFSSeptember 19, 2006, Page 10 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY CHAPTER 2: LEGAL FRAMEWORK Impact fees are one of the most direct ways for local governments to require new developments to pay a larger portion of the costs they impose on the community. In contrast to traditional ÑnegotiatedÒ developer exactions, impact fees are charges that are assessed on new development based on a standard formula and objective characteristics, such as the number of dwelling units constructed or vehicle trips generated. The fees are one-time, up-front charges. Essentially, impact fees require that each deve of a new residential or commercial project pay its pro-rata share of the cost of new infrastructure facilities required to serve that development. General Principles Since impact fees were pioneered in states that lacked specific enabling legislation, such fees have generally been legally defended as an exercise of local governmentÔs broad Ñpolice powerÒ to protect the health, safety and welfare of the community. Over time, various state courts have developed guidelines for constitutionally valid impact fees, based on a Ñrational nexusÒ that must exist between the regulatory fee or exaction and the activity that is being regulated. The standards set by court cases generally require that an impact fee or other developer exaction 1)The need for new facilities must be created by new development (first prong of the dual rational nexus test); and 2)The expenditure of impact fee revenues must provide benefit to the fee-paying development (second prong of the dual rational nexus test). A Florida district court of appeals described the dual rational nexus test in 1983 as follows, and this 5 language was quoted and followed by the Florida Supreme Court in St. Johns County decision: In order to satisfy these requirements, the local government must demonstrate a reasonable connection, or rational nexus, between the need for additional capital facilities and the growth in population generated by the subdivision. In addition, the government must show a reasonable connection, or rational nexus, between the expenditures of the funds collected and the benefits accruing to the subdivision. In order to satisfy this latter requirement, the ordinance must specifically earmark the funds collected for use in acquiring capital facilities to benefit the new residents In addition to the dual rational nexus test, impact fees may als requirements for developer exactions. The most important recent legal development regarding 6 development exactions is the 1994 decision of the U.S. Supreme C Dolan v. City of Tigard. In Dolan, the Supreme Court expanded upon the rational nexus test, adding to it a requirement that there be a Ñrough proportionalityÒ between the impact of a proposed development and the burden of the exaction imposed on it. While this case involved an ad hoc land dedication requirement and may not apply to legislatively-adopted fees, impact fees are more likely to comply with this standard than ot types of developer exactions. 5 Hollywood, Inc. v. Broward County, 431 So. 2d 606, 611-12 (Fla. 4th DCA), review denied, 440 So. 1983), quoted and followed in St. Johns County v. Northeast Florida Builders AssÔn, 583 So. 2d 635, 637 (Fla. 1991) 6 Dolan v. City of Tigard, 512 U.S. 374, 129 L. Ed. 2d 304, 114 S. Ct. 2309 (1994) HÓC\INAÐIFSSeptember 19, 2006, Page 11 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY State Enabling Act To date, 26 states, including HawaiÓi, have adopted impact fee enabling legislation. Like most other state enabling acts, HawaiÓiÔs impact fee enabling act for counties re enumerated above. HawaiÓiÔs impact fee enabling act, adopted in 1992, authorizes counties to adopt impact fees for any Ñtypes of public facility capital improvemen comprehensive plan or a facility needs assessment study.Ò A copy of the enabling act is provided for reference in Appendix G. The only use of this authority to-date has been the adoption in 2002 of a road 7 impact fee by the City and County of Honolulu for the Ewa region Counties in HawaiÓi are authorized by State law to enact impact fee ordinances, provided that they follow the requirements of Chapter 46, Part VIII of HawaiÓi Revised Statutes (Section 46-141 throug 46-148). This section provides a brief summary of those requirements most relevant to HawaiÓi Cou Generally, developers prefer to pay impact fees as late in the development process as possible, and most state acts prohibit the collection of impact fees prior to the time of issuance of a building permit or certificate of occupancy. HawaiÓiÔs act states in Section 46-146 that ÑAssessment of impact fees shall be a condition precedent to the issuance of a grading or buildin before or upon issuance of the permit.Ò HawaiÓi CountyÔs Corporation Counsel has interpreted this language to mean that the County may assess and collect impact fees at the time of subdivision approval or building permit issuance. A fundamental principle of impact fees is that new development cannot be charged for a higher level of service than is provided to existing development. Section 46-142(b) states that an impact fee study Ñshall specify the service standards for each type of facility subject to an impact fee; provided that the standards shall apply equally to existing and new public facilities.Ò If, for example, a County currently provides five acres of parkland per 1,000 residents, it cannot base park impact fees for new development on a standard of ten acres of parkland per 1,000 residents, unless certain conditions are met. Fi another source of funding other than park impact fees would have to be identified and committed to fund the capacity deficiency created by the higher level of service. Second, the park impact fees must generally be reduced to ensure that new development does not pay twice for the same level of service, once through impact fees and again through general taxes that are used to remedy the capacity deficiency for existing development. Section 46-143(d)(1) requires counties to consider the Ñmeans, other than impact fees, by which existing deficiencies will be eliminated within a reasonable period of time...Ò in formulating an impact fee. One way to avoid these kinds of complications is to base the impact fees on the existing level of service. A corollary principle is that new development should not have to pay twice for the same level of service. As noted above, if impact fees are based on a higher-than existing level of service, the fees shoul reduced by a credit that accounts for the contribution of new development toward remedying the existing deficiencies. A similar situation arises when the existing level of service has not been fully paid for. Outstanding debt on existing facilities that are counted in the existing level of service will be retired, in part, by revenues generated from new development that will also pay impact fees to maintain the existing level of service. Consequently, impact fees should be payments that will retire outstanding debt on existing facilities. The HawaiÓi enabling act addresses this issue in Section 46-143(d)(6), which provides that one of the seven factors that shall be considered in 7 Chapter 33A of the Revised Ordinances of Honolulu (the fee for a single-family unit is $1,836) HÓC\INAÐIFSSeptember 19, 2006, Page 12 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY determining Ña proportionate share of public facility capital improvement costsÒ is the Ñextent to which a developer required to pay impact fees over the next twenty yea contribute to the cost of existing public facility capital improvements through user fees, debt service payments, or other payments, and any credits that may accrue to a development because of future payments ...Ò The State act implies that credit may also be due for other types of revenues besides those used to pay debt service on existing capital facilities. Section 46-143(d)(2) states that another factor that shall be considered is the Ñavailability of other funding for public facility capital improvements, including but not limited to user charges, taxes, bonds, intergovernmental transfers, and special taxation or assessments ...Ò Also, Section 46-141 defines Ñproportionate shareÒ to mean Ñthe portion of total public facility capital improvement costs that is reasonably attributable to a development, less: (1) Any credits for past or future payments, adjusted to present value, for public facility capital improvement costs made or reasonably anticipated to be contributed by a developer in the form of user fees, debt service payments, taxes, or other payments...Ò Aside from debt service payments, credit against impact fees may not be required for other types of funding that have historically been used for growth-related, capacity-expanding improvements, or which may even be committed to be spent in the future for such purpose contribute toward such funding, so does existing development, and both existing and new development benefit from the higher level of service that the additional fun historical capacity funding patterns must be continued after the adoption of impact fees, and that new development is entitled to a credit for its contribution to thos local governments cannot require Ñgrowth to pay for growthÒ unless they have always done so. Local funding that is committed to be used for capacity expansion in t only in cases where there is no reasonable need for or benefit from higher levels of service than the existing level of service embodied in the impact fee calculations. As long as the fees are based on new development paying to maintain existing levels of service that have been paid for in full by existing development, and additional funding can reasonably be used to raise the level of service for existing and new development alike, no additional revenue credits are warranted. Nevertheless, credit will be provided in this study for dedicated revenue (e.g., motor fuel t improvements) and State and Federal grants. HawaiÓiÔs statute is one of only a handful of state enabling acts that require credit for past property tax payments. Section 46-143(d)(5) states that the Ñextent to which a developer required to pay impact fees has contributed in the previous five years to the cost of existing public facility capital improvements and received no reasonable benefit therefrom, and any credits that may be due to a development because of such contributionsÒ shall be taken into consideration in the impact fee calculation. And the defin of Ñproportionate shareÒ cited above makes clear that this refers not just to developer exactions, but also to past property tax payments. Prior to development, the owners of a vacant parcel of land paid property taxes that may have been used, in part, to construct ca impact fees are being assessed. Consequently, it will be necessary to reduce impact fees by the present value of property tax payments over the last five years that were used to construct existing capital facilities of the type for which the fees are being charged. HÓC\INAÐIFSSeptember 19, 2006, Page 13 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY this page intentionally left blank HÓC\INAÐIFSSeptember 19, 2006, Page 14 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY CHAPTER 3: POLICY ISSUES The first phase of this project was a policy analysis that culmi Ordinance Issues Memorandum (October 2005) and a Policy Analysis Memorandum (January 2006). The first phase also included an extensive public participation and education process November 2005 focus groups in Hilo and Kona (see summary in Appe " January 2006 video conference with participants in Kona, Hilo and Honolulu (see summary in " Appendix H), and March 2006 workshops in Hilo and Kona (see summary in Append " A list of participants in these public meetings can be found in Based on the analysis conducted for Phase I, the County should consider replacing its fair share assessments with a true impact fee system that follows the requirements of the State impact fee enabling act. An impact fee collected from all new development would be more legally defensible, more equitable and generate significantly more revenue than the current Ñfair shareÒ system. This additional revenue would translate into capital improvements that would benefit all More specific recommendations are provided for detailed policy i Treatment of Existing Lots A major issue in the development of an impact fee system for HawaiÓi County is how to treat existing lots of record. In most jurisdictions that have adopted impact fees throughout the United States, how to treat existing lots is a minor issue. Generally, the supply of such lots is limited, and if they are grandfathered or otherwise exempted from impact fees the overall effect on impact fee revenues is short-lived and relatively minor. However, this is not the case indicates that there are about 64,000 undeveloped residential lots in the county. This exceeds the total number of housing units on the island at the time of the 2000 census (62,674). Many of these lots are accessed via private substandard roads, have private water catchment systems, and are serviced with cesspools or septic tanks. Of the roughly 2,000 permits of single-family detached units issued by the County annually, it has been estimated that about one-third of these new homes are being built on lots that were created in the 1950s and 1960s. The perception exists that many of these lots are owned by local residents who intend to build a h for themselves in these older subdivisions. While this is undoubtedly true to some extent, it is far from the typical case. An analysis of property tax records indicates that only about 14 percent of existing vacant residential lots are owned solely by Big Island residents, and two-thirds are under the exc ownership of non-Big Island residents (see Table 9). The remaining 17 percent are owned by multiple owners with some Big Island resident participation, but it is likely that most of these lots are bei as an investment, rather than as a future home site. The investment motive probably holds for a good number of the Big Island owners as well. So the number owned by build a home on them is probably considerably less than 9,000 lots. To put that number in perspective, it represents less than five years of single-family building permit activity in HawaiÓi County at current development rates. HÓC\INAÐIFSSeptember 19, 2006, Page 15 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Table 9 OWNERSHIP OF VACANT RESIDENTIAL LOTS Ownership# of LotsPercent Big Island-Single Owner9,12314.20% Big Island-Multiple Owners1750.30% Mixed Big Island/Other Owners10,74716.70% No Big Island Owners44,17568.80% Total Vacant Residential Lots64,220100.00% Source: HawaiÓi County Real Property Tax Administrator, January 7, 2006 (data base excludes lots that are (1) over 20 acres, (2) already improved with $10,000 or more worth of yard or outbuilding improvements, or (3) commercial, industrial or resort hotel tax classifications or zo roadway, governmental and utility parcels. One option that was considered for this study was to allow any existing lot of record to be developed with one dwelling unit without paying an impact fee. Any additional dwelling units or any nonresidential development on the lot would be required to pay an impact fee. This approach has the appearance of even-handednessÏafter all, every existing lot is given the same development right. However, exempting one dwelling unit amounts to a 100 percent exemption for an existing single-family lot, but a negligible exemption for a 500-acre parcel that will be subdivided and developed with 2,000 single-family homes. There are several alternatives for dealing with the large number of existing lots. Five options are outlined below. Option 1: Fee Waiver for First Dwelling. Allow any existing lot of record to be developed with one dwelling unit without paying an impact fee. Any additional dwel development on the lot would be required to pay an impact fee. A concern here is that if the amount of development not paying the fee is large, the impact fees will not be sufficient to provide the level of service that the fees are intended to provide. Option 2: County Grant for First Dwelling. Instead of waiving fees for the first dwelling unit on existing lots of record, an alternative would be for the County to use other funding sources to pay the impact fees for a principle single-family dwelling unit on existing lots. This approach ensures that the funding in the impact fee account is sufficient to maintain the level of service on which the impact fees are based. The County would not need to pay fees for existing lots for which fair share contributions had been paid, since the credit for such payments would likely o Option 3: Transition Exemption for First Dwelling. An alternative to a permanent waiver of fees for the first dwelling unit is to make it a temporary transition provision. For example, the State impact fee enabling act in Texas allows owners of lots that were subdivided prior to the impact fee ordinance to pull a building permit within one year following adoption of to pay the fee. A longer time period than one year could be considered, but it should probably exceed five years. The transition exemption could be a blanket one that applies to all building permits for all existing lots, or a more limited one such as the one-uni Option 4: Exclude Selected Areas. A fourth alternative would be to exclude the area where most of the existing lots are located (i.e., Puna and KaÓu Districts) from the impact fee system. Exclusion means HÓC\INAÐIFSSeptember 19, 2006, Page 16 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY that no impact fees would be collected in this area, and no impact fees would be spent there. Exclusion would not have to be permanent. For example, Kansas City, Missouri, first developed arterial street impact fees for the area north of the Missouri River, before preparing impact fees for the southern part of the city. In each area, the older part of the city that was annexed prior to 1950 was excluded from the impact fee system. Exclusion from the impact fee system would not be meant to penalize an area, but to lessen the burden of paying an impact fee. Other methods of funding new infrastructure could be explored for those areas. Option 5: Everyone Pays. A final option is not to provide any special treatment for existing lots. Most of the focus groups in both the Hilo and Kona workshops came up with this alternative as the preferred option. The consensus seemed to be that if housing affordability is the concern, there should be a separate program to address that. This is the recommended Affordable Housing The key characteristic of an impact fee is that the amount of the fee is proportional to the impact on facilities. To waive fees for affordable housing or other policy goals may weaken the defensibility of the impact fee system, since opponents could argue that it is not actually an impact fee, but an illegal tax disguised as a fee. Consequently, any waiver of fees for affordable housing or other purposes should be paid by other funding sources. Paying fees on behalf of existing lot owners as a means of encouraging affordable housing would provide a windfall for many property owners who do not actually need assistance. The recommended approach would provide assistance to first-time home buyers who earn less than 140 percent of the median family income and who are purchasing or building a single-family unit that costs less than the median home value, provided that the property is used as the buyerÔs primary residence. The assistance could be either in the form of an outright grant, or in the form of an interest-free loan that would be repaid when the qualifying homebuyer sells the house or ceases to live there. The loan approach would have the advantage that it would reduce the incentive to gain public assistance that is not really needed, and would also make the program more self-sufficient if the loan repayments are earmarked for futu impact fee assistance. If the qualifying party already owns the lot, the assistance would be used to pay the impact fees at time of building permit. In the event of a speculative project, the builder would pay the fees at time of building permit, and the assistance in the amount of the fees paid would be provided to the qualifying homebuyer at closing to reduce the total funds closing. Progressive Residential Fees One thing that can be done to mitigate the effect on affordable housing is to reduce fees for the smaller and more affordable units to the extent that it can be demonstra impact on the need for facilities. That option has been provide would need to assess a flat rate for single-family homes if fees are collected at time of subdivision approval since the size of the house would not be known until a building permit is issued for the structure (see discussion below). Time of Collection The current fair share assessments are imposed during the rezoning process, and are collected prior to final subdivision approval for single-family lots and prior to final plan approval for multi-family and HÓC\INAÐIFSSeptember 19, 2006, Page 17 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY hotel/motel development. While collecting at subdivision gives improvements ahead of the siteÔs occupancy, collection of single-family fees at time of subdivision would be incompatible with the option of assessing single-family homes on the basis of dwelling unit size, since the square footage of the home is not known at that There seem to be two reasonable alternatives for dealing with time of collection: (1) collect impact fees from all development at the time of building permit issuance; or (2) collect fees for new single-family lots at the time of final subdivision approval, and collect fees for all other development (including single- family houses on existing lots) at building permit. However, since impact fees are designed to address the developmentÔs impact on infrastructure, it may be preferable to assess the fees at the time of building permit approval, if projects will develop slowly. Historically, in HawaiÓi County, large numbers of single- family lots have been approved with no homes being built for an argue that if the homes are not built, there is no impact on existing infrastructure and thus the fee should not be collected until a building permit is issued. Assessment and Benefit Districts In an impact fee system, it is important to clearly define the geographic areas within which impact fees will be collected and within which the fees collected will be spent. There are really two types of geographic areas that serve different functions in an impact fee system: assessment districts and benefit districts. An assessment district, which may also be called a service area, defines the area within which a set of common capital facilities provides service, and for which a fee schedule based on average costs within that district is calculated. Benefit districts, on the o the fees collected must be spent. They ensure that improvements funded with impact fees are constructed within reasonable proximity of the fee-paying developments to help ensure that developments benefit from the improvements. The assessment district is the geographic level at which Figure 2 the impact fee is calculated within a jurisdiction such as PROPOSED BENEFIT DISTRICTS a county. Calculating the fees at the county-wide level, based on the county-wide existing level of service, vastly simplifies the process. This was the approach used in the 1990 study as the basis of the CountyÔs current fair share assessments. Although some concerns were expressed that the cost of construction in the west is higher than in the east, cost data was not available to support differential fees, and all of the proposed impact fees were calculated on a county-wide basis. Concern has been expressed that a broad-based impact fee should be restricted to internal subdivision improvements like roads and parks, because otherwise owners of individual lots would not feel they were getting any benefit. However, impact fees must be used to expand capacity, and cannot be used to pave internal subdivision roads. HÓC\INAÐIFSSeptember 19, 2006, Page 18 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Through focus group discussions, the community has expressed a desire for multiple benefit districts for the purposes of collecting and spending the impact fee revenue. Based on that input and discus with local staff, four regional benefit districts that conform with existing judicial boundaries are recommended, as illustrated in Figure 2. Under the proposal, the districts would be composed as follows: District 1, North and South Kohala; District 2, Hamakua Puna and Kau; and District 4, North and South Kona. These same benefit districts could be used for most of the proposed impact fees. An exception is wastewater, where the fees should be earmarked and spent to improve the system to which the new customer has connec Another suggestion from the focus groups was to allow some of the revenue collected in each benefit district to be used for projects with regional or island-wide benefit. To facilitate projects of regional benefit, it is recommended that the County allow up to 20 percent of the road, park, fire and police impact fees collected in any district to be used for projects located outside the district, provided that significant benefit will be provided to new development in the district in which the fees were collected. Up to 40 percent of solid waste fees could be used for out-of-district improvements, reflecting the larger share of centralized facilities (landfill and vehicles). All wastewater fees would be restricted to be spent on improving the system to which the new customer connects. Pre-Ordinance Credits Some building permits will be issued in projects for which developers have already paid fair share contributions. To prevent double-charging, it will be necessary to either reimburse the developer, or to reduce or eliminate the impact fees that are charged for those building permits. Since it is likely that developers passed along the cost of the fair share contribution to the extent possible in the sale of the lots, reimbursing the developers would have the effect of handin alternative might be to reduce or eliminate the impact fees due policy would benefit the builder of the individual dwelling. The following approach could be used to implement the policy of pre-ordinance credits. Prior to the effective date of the ordinance, County planning staff would need to identify all parcels or subdivisions for which fair share contributions have been paid, and the amounts paid for each type of facility. If the project is built-out, no credits would be needed. If no development has yet occurred, the credit would be the amount paid, adjusted for inflation since the time of payment. If building permits have already been issued for a particular subdivision, but some development potential remains, the credit would be the amount paid, adjusted for inflation, less what the subdivision would have generated in impact fees had the fee schedule been in place. The resulting credit amounts would be available to offset impact fees otherwise due for building permits issued for the applicable parcels or within the subdivis first-come, first-served basis until the credits are exhausted. The amount of the credits would be adjusted annually for inflation, using the same index that is used for the impact fees. A time limit, such as ten years, could be imposed on the use of the credits. Fair share assessments that were imposed as a condition of zoning approval, but have not yet been paid by the effective date of the impact fee ordinance (because the property has not been subdivided or site-planned) would be replaced by the obligation to pay impact Another issue that must be addressed is credits for developers who made impact fee-eligible contributions prior to the impact fee ordinance, but who did not receive credit against fair share HÓC\INAÐIFSSeptember 19, 2006, Page 19 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY contributions for the value of those contributions. It is recommended that credits be provided for these types of improvements in much the same way as credits for fair s Post-Ordinance Reimbursements For fair share contributions and pre-ordinance contributions, credits that run with the land are recommended rather than developer reimbursements. So it may make sense to use the same approach when dealing with new developer exactions that occur after the impact fee ordinance is in place. However, an alternative approach is at least worthy of consideration, since the fair share credits affect a limited number of parcels and will expire in a certain number The alternative approach is to reimburse developers who make eligible improvements with impact fees collected for the same type of facility from other developers who do not. This approach was pioneered by Raleigh, North Carolina when it established road and park impact fees in 1987, and although it has not been widely emulated by other jurisdictions, it has much to recommend it. Raleigh enters into a reimbursement agreement with each developer who makes an impact fee-eligible improvement. If the improvement is an expensive one, the reimbursement is scheduled subject to available funding. The City also categorizes each developer contribution as Priority I or Priority II. Priority I projects include dedication of land or right-of-way and projects in the City's five-year capital improvements plan. Each year, the City sets aside a percentage of impact fees collected in each benefit zone (20 percent of park fees and 27 percent of road fees) into reimbursement accounts. If the reimbursement account has sufficient funds to pay all rei developers with outstanding reimbursements for that year receive insufficient to reimburse all developers, developers with Priority I improvements are reimbursed first. If funds are still insufficient, each Priority I developer receives a pro rata share of his reimbursement amount, with the unpaid amount rolled over to the next year. The reimbursement approach used by Raleigh is considerably simpl approach, and it also has the advantage that a predictable percentage of impact fee revenue is available to the local government to program for priority improvements. T pronounced for HawaiÓi County for the first few years, since staff would need to track fair share contribution credits for a number of years. However, those credits would affect a limited number of properties and would disappear after a few years. After that, the collection of fees at the building counter would be automatic for all permits, with no need to check to see if credits are available to offset the fees. The second advantage would also be somewhat attenuate share credits would reduce the amount of fees collected, but the County would be guaranteed that subsequent developer contributions would not consume more than a impact fee revenues. It is recommended that the County consider using a reimbursement approach similar to Raleigh's for post-ordinance developer contributions. Phase-In Period Following the adoption of the impact fee ordinance by the County Council, there needs to be a period of time before the impact fees actually go into effect (the Ñeffective dateÒ). This lapse of time is a common approach used by other jurisdictions when implementing impact fee programs. Some delay may be desired to give development projects already underway adequate time to apply for building HÓC\INAÐIFSSeptember 19, 2006, Page 20 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY permits and otherwise complete their projects. The delay also p addition, County staff will need some time to put the administrative processes in place to implement the ordinance. This includes designating an impact fee administrator, developing the collection system and the qualifying process for a grant/loan program. After discussions with staff, it is recommended that the collection of impact fees go into effect one year from the date of ordinance adoption. The fair share assessments would continue to be in effect during this period, but would be repealed on the effective date of the impact fees. In addition, substantial new or increased impact fees are often phased-in over a period of six to 18 months. For example, the fees might go into effect initially at 50 percent, then go up to 75 percent after six months and 100 percent after a year. However, HawaiÓi County is somewhat unique in that some developments are already paying substantial fees, while others are not paying any fees at all. A phase-in period that gradually imposes fees equivalent to the current fair share assessments would provide a windfall for projects that had been assessed the fair share fees. To avoid these kinds of complications, no additional phase-in after the one-year period following ordinance adoption is recommended. Maximum Impact Fees The impact fees calculated in this report represent the maximum fee that could be adopted by the County. The impact fees could be adopted at less than 100 percent of the impact fee levels shown for each facility type. The County must maintain proportionality be 100 percent. For example, if the County decided to adopt the Fire/EMS fee at 75 percent of the level calculated in this report, it would need to charge 75 percent of the maximum fee calculated for each land use category. The County should recognize that the fees adopted must be high enough to ensure adequate funds are available to reimburse developers when necessary. If fee revenue is insufficient to repay developers for improvements, the total time required for paying back developers would increase with fewer funds available for county impact fee funded projects. Road impact fe at very low percentage of maximum net costs. This is because developers often make in-kind contributions in the form of right-of-way dedication or actual roadway construction, and under an impact fee system receive a reimbursement for the equivalent value of such contributions (above any required dedications) against the fee. Therefore, if the fee is adopted at a very low percentage, fees collected will be too low for a developer to be fully compensate In general, the County has considerable flexibility in imposing fees geographically, whether it be imposing fees in some areas and not others, or imposing fees at different percentages of the maximum rates in different areas. However, if this approach is taken, some modifications to the impact fee system should be considered. First of all, solid waste is an exception, since this is the only one of the impact fee facilities that has a major island-wide component (i.e., the landfill). If you are not going to charge the solid waste fee island- wide, it will be necessary to recalculate the solid waste fee to remove the landfill component of the cost. The County should also probably give up the flexibility of spending any of the money collected in a district outside the district. Our recommendation that the County be allowed to spend up to 20 percent of road, park, fire and police impact fees outside the benefit district in which the fees were collected, provided some benefit to the paying district could be shown, assumes that the fees are applied island- HÓC\INAÐIFSSeptember 19, 2006, Page 21 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY wide at the same percentage. If the project located outside the district has significant benefits to development in another district that is not paying that fee, or paying a lower fee, it may be difficult to establish that the fees are meeting the tests of equity and proportionality. Consequently, the mixing and matching alternative to island-wide application means the County will probably need to give up some of the flexibility of using fees outside the district in which the fees were collected. Finally, the County would probably want to show that the impact fee money is not simply being used to allow the County to take property tax money it had been spending in the areas that now have fees, and spending it instead in areas where no fees are being charged. If the fees can be shown to provide benefits to the fee-paying areas that they would not otherwise have seen, any equity concerns with this approach could be avoided. HÓC\INAÐIFSSeptember 19, 2006, Page 22 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY CHAPTER 4: AGENCY AND PUBLIC PARTICIPATION The subject of impact fees is complex, and requires a detailed understanding of many issues, including the legal requirements that test the validity of any adopted impact fee ordinance. Impact fees have been the subject of a large number of court cases throughout the United States, and the issues that have constituted these legal challenges are nationally recognized in terms of crafting defensible impact fee legislation at the county or municipal level. It is also important to understand that impact fees can crafted to reflect important county values related to affordable housing and financial impact on builders and property owners, among others. It might be advantageous to hire consultants to consider a local and handing over a completed product in a relatively short period of time. However such a view is short-sighted and does not allow a community to educate itself in the nuances of an impact fee ordinance by engaging in the discussion and debate of such an important policy program. Impact fees oftentimes produce strong emotions (both pro and con) during the consideration of impact fees by any community. Consequently, it is important for communities to educate themselves about impact fees, and educate consultants about the issues important to them, in order to reach a point where the adopted policy clearly reflects the personality of the community. A summary of the agency and public participation events and participants in those events are presen in the Appendices. Overview The process of developing an impact fee program for HawaiÓi County purposefully included a component that provided for community and public agency input and education. This aspect of the project included public agency briefings and collection of data, focus group meetings, regional meetings with small group break-out discussions, a video conference, additional discussions with a group of individuals (the ÑLocal Resource TeamÒ) who were knowledgeable a provide a Ñbig pictureÒ sounding board for the project team, and use of the HawaiÓi County website to circulate information and work products. The various elements of the agency and public participation and education effort are discussed in more detail below. Agency Liaison Team In order to provide the consultants with the necessary informati an Agency Liaison Team, consisting of representatives from County and State agencies, was formed to provide data on the following type of infrastructure and public facilities: transportation, parks, po fire, solid waste and wastewater. A large volume of information needed to be compiled and organized by the agency liaisons for the consultants to complete the needs assessment. Without their assistance the needs assessment could not have been prepared. Public Participation and Education Public participation and education in the study process was determined to be a critical component for this study. Initially, the contract allotted for only one stakeholder meeting, however, as the effort progressed, it became obvious, that without public education, preparing an ordinance that could be implemented would be difficult. The contract was amended twice HÓC\INAÐIFSSeptember 19, 2006, Page 23 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY education would continue throughout the process. The subject material is not simple, but through a collaborative effort between the consultants and the county, several opportunities were provided to inform and keep the public involved through video conferences, the Internet, the distribution of a fact sheet, email communication and workshops. Informational Meetings: Key stakeholder organizations were invited to participate in two initial focus group meetings in Hilo (November 18, 2005) and Kona (November 20, 2005) as an introduction to the consultants. County Council: The consultants held an initial workshop with the County Council on November 21, 2006, to introduce themselves, present the time line for the project, present their initial memorandum and an Impact Fee 101 PowerPoint presentation. Video Conference: A video conference was held on January 17, 2006 that linked Kona, Hilo, Honolulu, and Duncan Associates in Austin, Texas. The consultant PowerPoint presentation on impact fees and to answer questions f Planning Commission: The consultants also held a workshop with the Planning Commissio March 9, 2006 in Hilo with a PowerPoint presentation to introduc conversation on impact fees. Ordinance Issues Workshop: Focus group meetings where held in Kona (March 8, 2006) and Hilo (March 10, 2006) to introduce and create a dialogue on those critical issues that needed to be decided on for the impact fee ordinance. Community participants brought valuable insights for the consultants; in particular, the idea that a portion of the impact fee fu collected be used on an island-wide basis. Final Public Meetings: Two final public meetings were held in Hilo (August 15, 2006) and Captain Cook (August 16, 2006) to provide an overview of the final needs assessment and draft ordinance. The consultants were present with the Planning Director to field questions. The public was also informed that final work products would be forwarded to the County Counci submitted. Local Resource Team A Local Resource Team (LRT) was created to supplement the public by the IPFNA Project Team (Planning Department; Helber Hastert & Fee Planners, Inc.; Duncan Associates; Alice Moon & Co). The primary intent of the LRT was to discuss problematic issues that were highlighted during the larger public Group Meetings being conducted in Kona and Hilo, and to brainstorm with the Project Team on how to deal with these issues during formulation of an ordinance to establish an impact fee system within the County HawaiÓi. The solicitation of ÑindividualsÒ was based on a number of factors, including organizational affiliation, presence in the development industry, participation in community issue. The goal was to obtain a wider perspective on the issues facing the adoption of an impact fee ordinance in HawaiÓi County. Overall, it was hoped that the LRT: (1) provided a more granular look at problem issues and concerns; (2) provided a Ñbig pictureÒ perspective; and, (3) introduced a creative approach to problem solving. Composition of the LRT was based on including previous experience with and knowledge of impact fees, HÓC\INAÐIFSSeptember 19, 2006, Page 24 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY familiarity with the development process from a public, private ability to provide a local and island-wide perspective. The LRT assisted in advising the project team and in reviewing the final work products. HÓC\INAÐIFSSeptember 19, 2006, Page 25 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY this page intentionally left blank HÓC\INAÐIFSSeptember 19, 2006, Page 26 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY CHAPTER 5: LESSONS LEARNED Although the agency and public participation meetings provided opportunities for participants to gain a better understanding of impact fees, impact fees are a complex funding mechanism intended to help solve even more complex infrastructure problems. The following are some of the lessons learned during the agency and public sessions: oEducation for all participants is an ongoing process. It is a successful project. Plan and prepare to provide multiple opportunities to address questions and provide answers. oUnderstand that it is impossible to reach every stakeholder, in our case, the large percentage of vacant lot owners who do not reside on HawaiÓi Island. Given that, seize the opportunity of ongoing community planning efforts and initiatives, such as Community De neighborhood boards and other grassroots efforts, as they serve as perfect venues for bringing the dialogue to the community. oImpact fees alone will not solve the County's infrastructure problems; they are one source for partial financing of new infrastructure and public facilities. solution in perspective with all financing options, which need to be identified and implemented by decision-makers and agencies. oThe County of HawaiÓi needs to take a more comprehensive look a share that vision with the public, and encourage creative public & private efforts to ensure completion of specific improvements. oThere are no easy answers on how to address impact fees and their effect on affordable housing. Fees cannot be waived, but may be paid from grants or other funding sources. Funding sources for grants should be explored and identified early on in the process oShould an impact fee ordinance be implemented, current administrative procedures need to be retooled and additional staff may be needed to administer the impact fee system. Existing systems do not necessarily meet the needs of this new program. This has bee discussion among the agency liaisons. oFees may be imposed at less than 100 percent the maximum allowable amount, provided they are applied proportionately to all land uses. oFees may be tailored to reflect the unique circumstances, needs communities. Specific fees can be applied to a district or community that is more ready and prepared to implement impact fees. HÓC\INAÐIFSSeptember 19, 2006, Page 27 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY this page intentionally left blank HÓC\INAÐIFSSeptember 19, 2006, Page 28 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY CHAPTER 6: NEXT STEPS/IMPLEMENTATION The County has a choice to adopt an impact fee ordinance based on this study or not to adopt an impact fee ordinance at this time and continue to fund new infrastructure and public facilities with existing planning and budgetary processes. Infrastructure financing options currently utilized by the Coun include bond issues, current revenues, state and federal funding, and the Ñfair shareÒ contribution program. The County needs to determine the adequacy of current funding sources with the need f new facilities along with the legality of the current Ñfair shar Action Items If Impact Fees Not Adopted Should the County of HawaiÓi decide not adopt an impact fee ordinance, the following recommendations are suggested: A more extensive and comprehensive discussion of funding options " public facilities should take place, with the consideration of impact fees in the context of other financing tools. This was an overarching theme that permeated all aspects of public discussion during this project. An Impact Fee Working Group should be established to receive an overview and education of " the CountyÔs present budgetary and planning process for funding new infrastructure and informed of existing financing tools available to government. The Working Group would be tasked with considering and exploring new and creative financing options, including impact fees. A collaborative approach involving developers, businesses, non-profit organizations, local impact fee ÑexpertsÒ and government agencies would provide an opportunity to work on specific infrastructure improvements. The Working Group could also be tasked with identifying specific infrastructure projects with consideration of the General Plan, Community Development Plans and Capital Improvement Project (CIP) budget and proceed to implement a collaborative resolution to the planning, implementation and construction of specific projects. Action Items if Impact Fees Adopted Should the County of HawaiÓi decide to adopt an impact fee ordinance there are also several options for implementing a fair and legally-defensible system. A full-fledged impact fee program could be imposed using maximum fees island-wide for roads, parks, fire, police so options and variations could also be implemented. The maximum fees could be used as a guide for establishing a low reasonable impact fee. A single benefit district could be selected as a test case or impact fees could be collected for a particular type of infrastructure, such as for r Whichever options are selected, should the impact fee ordinance proceed to adoption, it is recommended that the Mayor immediately proceed with the followin Designate an appropriate agency to be the overall administrator of the impact fee program. In " other jurisdictions, this responsibility has fallen on the building permit department (which is responsible for collection of the fee), the finance department ( administration of the impact fee accounts), or the planning depa HÓC\INAÐIFSSeptember 19, 2006, Page 29 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Form an Impact Fee Implementation Committee (IFIC) consisting of affected agencies to assist " in developing the administrative procedures for implementing the Impact Fee Program. The decisions/responsibilities for the IFIC would include, among Review the options and decide the course of action for the critical policy issues listed in the " Executive Summary. Identify a source of funding for a grant system to be implemented that would provide relief for " qualifying residents, and design procedures to determine who receives a grant to address affordability and affordable housing concerns. Develop a collection process and identify agencies involved, system for tracking of funds and " pre-ordinance offsets. Develop a system for annual reports so that funds are disbursed within 6 years, in accordance " with HRS, Chapter 45, Impact Fees. Identify specific projects that impact fees would be applied to in consideration of the General " Plan, Community Development Plans, and Capital Improvement Proje Produce a Manual of Operations. " Depending on how far into the future the County determines the effective date of the Ordinance, a consultant could be contracted to assist with formulating, developing and expediting the design of the program and the above tasks so that the Ordinance is implemented HÓC\INAÐIFSSeptember 19, 2006, Page 30 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY PART II: IMPACT FEE CALCULATIONS CHAPTER 7: ROADS This section of the study discusses road impact fees for HawaiÓi County. One of the most costly impacts associated with new development is on the road system. Road impact fees are designed to rationalize the process of ad hoc, negotiated exactions and Ñlevel the playing fieldÒ by requiring all developers to pay an impact fee based on their impact on the major roadway sys developers who are required to make improvements to the major roadway system will receive credit against their impact fees for the value of their contributions. Credit provisions and other issues will be addressed in the impact fee ordinance. The 1998 HawaiÓi Long Range Land Transportation Plan, prepared by the State in association with the County, identifies the islandÔs major transportation improvement needs to support anticipated growth to the year 2020. The major highways on the island are the HawaiÓi Belt Highway and the Mamalahoa Highway, which together link the major towns of all of the districts except North Kohala. Major improvement needs identified by the Transportation Plan include the reconstruction of the Saddle Road (Highway 200) and the widening of Queen Kaahumanu Highway (Highway 19) to four lanes between Waikoloa Road and Kona International Airport at Keahole. Many of the islandÔs road capacity improvement needs are on the State road system (see Table 10). Previously, State law had restricted road impact fees outside of Oahu from being used to help fund State road improvements, but this restriction was lifted in the last l 8 provided in Appendix H). Nonetheless, this report provides the option of implementing a road impact fee for County roads only, or both County and State roads. Table 10 ROAD IMPROVEMENT NEEDS PriorityCounty RoadsState RoadsTotal Tier 1 (1998-2005)$112,400,000$291,000,000$403,400,000 Tier 2 (2006-2010)$49,300,000$155,100,000$204,400,000 Tier 3 (2011-2020)$103,100,000$307,800,000$410,900,000 Tier 4 (Unfunded)$173,900,000$124,200,000$298,100,000 Total$438,700,000$878,100,000$1,316,800,000 Source: Frederick R. Harris, Inc., HawaiÓi Long Range Land Transportation Plan, May 1998. Assessment and Benefit Districts Concern has been expressed that a broad-based impact fee should be used to facilitate internal subdivision improvements like roads and parks, because otherwise owners of individual lots would not feel they were getting any benefit from the expenditure of the impact fees collected. However, road impact fees must be used to expand capacity, and cannot be used to pave internal subdivision roads. 8 2006 Act 197 (Senate Bill 2901), effective July 1, 2006, amends Part VIII, Impact Fees of Chapter 264, Highways, to delete the definition of county, which was defined as counties having more than 500,000 residents. HÓC\INAÐIFSSeptember 19, 2006, Page 31 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Many of the capacity needs identified in HawaiÓi County are on State roads and major County roads, in which case they could reasonably be county-wide. Based on available road cost data and the integrated nature of the road major road network, it is recommended that the proposed road impact fees be calculated county-wide. Based on focus group discussions, the community has expressed a desire for multiple benefit districts. For the purposes of collecting and spending the impact fee revenue it is recommended that the County establish four road impact fee benefit districts (see Figure 2 in the Policy Issues section). To facilitate projects of regional benefit, it is recommended that up to 20 percent of the impact fees collected in any district be allowed to be used for projects located outside the district, provided that significant benefit will be provided to new development in the district in which the Service Unit A service unit creates the link between supply (roadway capacity) and demand (traffic generated by new development). An appropriate service unit basis for road impact fees is vehicle-miles of travel (VMT). Vehicle-miles is a combination of the number of vehicles traveling during a given time period and the distance (in miles) that these vehicles travel. The two time periods most often used in traffic analysis are the 24-hour weekday (average daily trips or ADT) and the single hour of the weekday with the highest traffic volume (peak hour trips or PH Average daily trips are the best measure for the amount of motor fuel tax that will be generated by new development, which may be used to calculate a revenue credit. In addition, average daily trip data are less variable than peak hour trips, which can vary considerably based on the size and demographic make- up of a community. For these reasons, it is recommended that average daily VMT be utilized as the service unit for the road impact fee. Major Roadway System A road impact fee program should include a clear definition of the major roadway system that is to be funded with the impact fees. In the context of a consumption-based road impact fee methodology, the definition of the major roadway system affects the average trip length, as well as the types of improvements for which revenue and construction credits against the fees must be given to developers. Currently, the County directly funds growth-related improvements only to County roads and indirectly funds improvements to State and County roads through motor fuel generated by County residents and businesses. County roads that function as arterials or collectors are entirely the responsibility of the County, while State Highways The County currently may require developers to dedicate right-of-way (ROW) or make improvements to major roads as part of the development approval process. The cost of the improvement or value of the ROW may be utilized to offset fair share contributions. Similarly, to the extent that a developer is required to make an improvement to the major road network or purchase ROW, the impact fee would be offset by a credit for the improvements. The functional classification system for major State and County roads in HawaiÓi is defined by the CountyÔs General Plan (see Figure 3). For the purpose of the road impact fees calculated for this study, HÓC\INAÐIFSSeptember 19, 2006, Page 32 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY the major roadway system is proposed to be defined as existing State and County primary and secondary arterial roads and collector roads. Figure 3 MAJOR ROADWAY SYSTEM HÓC\INAÐIFSSeptember 19, 2006, Page 33 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY An inventory of the existing major roadway system was prepared as part of this project and is presented in Table 94 in Appendix A. The major purpose of the inventory is to determine the total amount of travel on the major roadway system, expressed in vehicle-miles o capacity, expressed in vehicle-miles of capacity (VMC). Methodology The recommended methodology is to base the road impact fees on the existing level of service. As discussed in the Phase I policy memorandum, basing the impact fees on a higher-than-existing level of service creates existing deficiencies that must be funded and requires credit against the impact fees for the revenue generated by new development and used to remedy the complications, the recommended approach is to base all impact fees on the existing level of service. The proposed road impact fee methodology relies on a Ñconsumption-basedÒ model, which basically charges a new development the cost of replacing the capacity that it consumes on the major roadway system. That is, for every vehicle-mile of travel (VMT) generated by the development, the road impact fee charges the net cost to construct an additional vehicle-mile of capacity (VMC). Since travel is never evenly distributed throughout a roadway system, actual roadway systems require more than one unit of capacity for every unit of demand in order acceptable level of service. Suppose for example, that the County completes a major widening project. The completed road is likely to have a significant amount of excess capacity for some period of time. If the entire system has just enough capacity to accommodate all of the vehicle-miles of travel, then the excess capacity on this segment must be balanced by another segment being over-capacity. Clearly, roadway systems in the real world need more total aggregate capacity than the total aggregate demand, because the traffic does not always precisely match the available capacity. Consequently, the standard consumption-based model generally underestimates the full cost of accommodating new development at the existing level of service. In most rapidly growing communities, some roadways will be exper congestion at any given point in time. One of the principles of impact fees is that new development should not be charged for a higher level of service than is provided to existing development. In the context of road impact fees, this has sometimes been interpreted to mean that impact fees should not be spent on roadways that are already over-capacity. A variant of this approach is that impact fees should only be used to fund a percentage of the project that can be attributed to providing additional capacity beyond what is needed to remedy any existing deficiency These approaches for dealing with existing deficiencies create several types of problems. A major one is that impact fees are restricted from being spent on roadways that are most in need of improvement. The approach that allows a percentage of the cost to be funded complicates impact fee administration by requiring that the portion of the cost of each improvement that is attributable to remedying deficiencies be funded from a different revenue source. Finally, these approaches ignore the interconnectedness of the major roadway system. For example, road impact fees could not be spent directly to improve a deficient segment, but could be spent to improve or construct a parallel roadway that would also relieve the congestion. The most important objection, however, is that it is not necessary to address existing deficiencies in a consumption-based system, which, unlike an improvements-driven system, is not really designed to HÓC\INAÐIFSSeptember 19, 2006, Page 34 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY recover the full costs to maintain the desired LOS on all roadwa consumption-based method is only designed to maintain a minimum one-to-one overall ratio between system demand and system capacity. Consequently, under a standard consumption-based system, the level of service standard is really a systemwide VMC/VMT ratio of one. Since the CountyÔs major roadway system currently operates at better than this LOS (see Table 19), the consumption-based method assumes a one-to-one ratio. The consumption-based methodology is recommended for use in the HawaiÓi County. While the actual VMC/VMT ratio is much higher than one-to-one, this approach utilizes the more conservative ratio in evaluating the system-wi fees are based. The recommended impact fee formula is presented Figure 4 ROAD IMPACT FEE FORMULA IMPACTFEE= 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 pas LENGTH=Average length of a trip on the major roadway system ÷ 2=Avoids double-counting trips for origin and destination COST/VMC=Average cost to add a new daily vehicle-mile of capacit VMC/VMT=System-wide ratio of VMC to VMT on the major roadway system (assumed 1:1) CREDIT/VMT0DEBT/VMT + PAST/VMT + GRANT/VMT DEBT/VMT=Outstanding debt used for capacity improvements on exis divided by total existing VMT PAST/VMT=The net present value of property taxe s paid over the land for road capacity improvements, including general fund expe as debt service payments, per VMT GRANT/VMT=The net present value of future Federal and State roadway capacity funding anticipated to be forthcoming per VMT over the next 20 years HÓC\INAÐIFSSeptember 19, 2006, Page 35 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Travel Demand The travel demand generated by specific land use types is a product of three factors: 1) trip generation; 2) percent new trips; and 3) trip length. The result is the vehicle-miles of travel (VMT) generated by a unit of development. Trip Generation Trip generation rates are based on information published in the Transportation EngineersÔ (ITE) Trip Generation manual. Trip generation rates represent trip ends, or driveway crossings at the site of a land use. Thus, a single one-way trip from home to work counts as one trip end for the residence and one trip end for the work pla over-counting, all trip rates have been divided by two. This places the burden of travel equally between the origin and destination of the trip and eliminates double-charging for any particular trip. To date, few road impact fees have been adopted that vary by the size of the dwelling unit. This is largely because road impact fees are generally based on national trip generation rate data, and the Institute of Transportation Engineers (ITE) Trip Generation manual does not provide rates by dwelling unit size. However, the fact that trip generation rates for residential uses vary by the size of the household is actually well documented in the transportation plan This study gives the County the option of establishing impact fees for single-family housing based on the size of the dwelling unit. The size of the dwelling unit is related to the number of residents, and the average number of vehicle trips generated is strongly related to the number of people living in the dwelling unit. The average household size of single-family detached units by number of bedrooms is available from 2000 Census five-percent sample data, which is presented in Appendix C. This information is combined with the trip rate data by household size presented in the previous table to derive daily trip rates by the size of the unit, represented by bedrooms, as shown in Table 11. Table 11 SINGLE-FAMILY TRIPS BY BEDROOMS Avg.Daily BedroomsHH SizeTrips Up to Two2.558.45 Three2.979.72 Four3.4911.04 Five or more4.2212.82 Average2.929.57 Source: Average household sizes from Table 100; daily trips derived from Transportation Research Board, NCHRP Report 365, ÑTravel Estimation Techniques for Urban Planning,Ò Washington, D.C.: National Academy Press, Table 9 (for areas with populations of 50,000 to 199,999), 1998. HÓC\INAÐIFSSeptember 19, 2006, Page 36 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY To determine a relationship between the Figure 5 DAILY TRIPS BY UNIT SIZE average square footage of single-family detached units, the number of bedrooms and trip generation, the consultant analyzed a sample with compiled data on all 630 single- family homes listed for sale in HawaiÓi County from the National Association of Realtors website (www.realtor.com) on October 19, 2005. To this data base, variables for daily trip rates were added, consisting of the trip rates by number of bedrooms presented in the previous table. Regression analysis was then performed to determine the relationship between unit size in square feet and trip rates. Linear, semi-logarithmic and logarithmic regressions were performed, and the logarithmic equation was determined to 9 provide the best explanation of the data. The curve described by the equation for peak hour trips is shown relationship between size and trip generation is positive but modest. Many large homes are occupied by empty-nesters or used as second homes. Nevertheless, on average larger homes do have somewhat more impact on the road system. Using the regression equation, average daily trip rates were derived for five size categories based on square footage. The results a Table 12 SINGLE-FAMILY TRIPS BY SQUARE FOOTAGE Dwelling Size CategoryMidpointDaily Trips Less than 1,000 sq. ft.500 8.44 1,000 - 1,499 sq. ft. 1,250 9.58 1,500 - 1,999 sq. ft.1,750 10.03 2,000 - 2,999 sq. ft.2,500 10.54 3,000 - 3,999 sq. ft.3,500 11.04 4,000 sq. ft. or more4,500 11.43 Source: Daily trips derived using the regression equation formula and t midpoints of the size categories. New Trip Factor Trip rates also need to be adjusted by a Ñnew trip factorÒ to exclude pass-by and diverted-link trips. This adjustment is intended to reduce the possibility of over-counting by only including primary trips generated by the development. Pass-by trips are those trips that are already on a particular route for a different purpose and simply stop at a particular development on that route. For example, a stop at a convenience store on the way home from the office is a pass-by t 9 The equation for average daily trips is Ln (y) =0.138385 * Ln(x) + 1.272444, where y is average daily trips and 2 x is the floor area of the unit in square feet; the R is 0.42863 and the t-statistics are 21.705 for the x-coefficient and 27.119 for the y-intercept. HÓC\INAÐIFSSeptember 19, 2006, Page 37 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY pass-by trip does not create an additional burden on the street system and therefore should not be counted in the assessment of impact fees. A diverted-link trip is similar to a pass-by trip, but a diversion is made from the regular route to make an interim stop. The reduction for pass-by and diverted-link trips was drawn from ITE and other published information. Average Trip Length In the context of a road impact fee based on a consumption-based methodology, we are interested in determining the average length of a trip on the major roadway system within HawaiÓi CountyÔs jurisdiction. An inventory of the CountyÔs major roadway system was prepared as part of this project (see Table 94 in Appendix A). Traffic counts were available for about forty percent of the major road network. It is likely that roads for which counts are available have higher traffic volumes than roads for which no counts were available. To take this into account, volu assumed to have, on average, only three-quarter the volumes on roads with counts. Based on these data and assumptions, the total demand on the major County and State roadway system is estimated to be about 3.5 million VMT, with total demand on County roads accounting for 1.0 million VMT, as shown in Table 13. Table 13 ESTIMATED ACTUAL VEHICLE-MILES OF TRAVEL Ln-MiObserved 3/4 Trips/Ln-Mi w/oEstimated Road Classw/Counts VMT Lane Counts VMT Total VMT Prim. Arterial125.2 872,711 5,228 3.0 15,684888,395 Sec. Arterial461.0 1,280,814 2,084 3.8 7,9191,288,733 Major Collector109.2 128,996 886 4.8 4,253133,249 Minor Collector 1.8 3,164 1,318 133.2 175,558178,722 State Roads697.2 2,285,686 9,516 144.8 203,4142,489,099 Prim. Arterial22.4 195,868 6,558 0.0 0195,868 Sec. Arterial104.3 136,339 980 0.0 0136,339 Major Collector187.7 599,138 2,394 34.3 82,114681,252 County Roads314.3 931,344 9,932 34.3 82,1141,013,459 Total1,011.5 3,217,031 19,448.0179.1 285,5283,502,558 Notes: ÑLn-Mi w/CountsÒ is lane-miles of road segments with recent traffic counts; ÑObserved VMTÒ is average annual daily travel on road segments with counts; Ñ3/4 Trips/LaneÒ is 3/4 times the ratio of observed VMT to lane-miles with counts; ÑLn-Mi w/o CountsÒ is lane-miles of segments without recent traffic count dta; ÑEstimated VMTÒ is estimated average daily VMT on segments without counts (product of 3/4 VMT and lane-miles without counts); ÑTotal VMTÒ is sum of observed and estimated VMT. Source: Table 94 in Appendix A. The average length of a trip on the CountyÔs major roadway system can be estimated by dividing the total vehicle-miles of travel (VMT) on the major road system by the total number of trips that are generated by existing land uses in HawaiÓi. Multiplying trip generation rates by existing land use results in an estimate of 0.51 million daily trips generated by existing development, as shown in the following table. HÓC\INAÐIFSSeptember 19, 2006, Page 38 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Table 14 TOTAL DAILY TRIPS ExistingDaily TripDaily Land UseUnitUnits GenerationTrips Single-FamilyDwelling58,7724.79 281,518 Multi-Family/OtherDwelling17,1533.36 57,634 Hotel/MotelRoom10,5133.45 36,270 Shopping Center/General Retail1,000 sq. ft.5,30713.31 70,636 Office/Other Institutional1,000 sq. ft.4,5515.51 25,076 Medical Office1,000 sq. ft.26918.07 4,859 Industrial1,000 sq. ft.4173.48 1,451 Mini-Warehouse1,000 sq. ft.2481.25 310 Warehouse1,000 sq. ft.7,9562.48 19,731 Church/Synagogue1,000 sq. ft.4024.56 1,833 Elementary/Secondary School1,000 sq. ft.6086.85 4,165 Nursing Home1,000 sq. ft.2163.05 659 Hospital1,000 sq. ft.2458.79 2,154 Total Daily Trips506,296 Source: Existing housing units from Table 98; existing nonresidential hotel/motel rooms based on 2000 hotel room count of 10,041 from HawaiÓi County Data Book, Table 7.3, data for 2005 derived from total visitor growth rate projec HawaiÓi County General Plan; daily trip generation from Institute of Transportation Enginee Trip th Generation, 7 Ed., 2003 (shopping center rate has been multiplied by a 0.62 n Dividing total VMT on the major roadway system by the estimated trips generated by existing development yields an average trip length. As shown in Table 15, the average trip length on the CountyÔs major road system is approximately 2.00 miles on County roads and a total of 6.92 miles on all major roads, including State roads. Table 15 AVERAGE TRIP LENGTH Total Estimated Daily Vehicle-Miles of Travel, County Roads (VMT)1,013,397 Total Daily Trips506,288 Average Trip Length, County Roads (miles)2.00 Total Estimated Daily Vehicle-Miles of Travel (VMT)3,502,681 Total Daily Trips506,288 Average Trip Length, County and State Roads (miles)6.92 Source: Total daily trips from preceding table; VMT from Table 13. The national average trip lengths derived from the U.S. Department of TransportationÔs 2001 National Household Travel Survey for a variety of trip purposes, including home-to-work trips, d school/church, shopping, and other personal trips are shown in Table 16 below. The average trip length on HawaiÓi CountyÔs major roadway system, including State roads, is 70 percent of the national average. This is not surprising, since the trip length calculation excludes travel on the CountyÔs HÓC\INAÐIFSSeptember 19, 2006, Page 39 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY unclassified local roads. Reducing all of the national trip lengths by purpose by this adjustment factor yields the following estimates of local trip lengths by trip pur Table 16 AVERAGE TRIP LENGTH BY TRIP PURPOSE County RoadsAll Major Roads NationalLocalLocalLocalLocal Trip LengthAdjustmentTrip LengthAdjustmentTrip Length Trip Purpose(miles)Factor(miles)Factor(miles) Visit Friends/Relatives14.99 0.203.000.7010.49 To or from Work12.19 0.202.440.708.53 Residential*10.77 0.202.150.707.54 Doctor/Dentist9.890.201.980.706.92 Average9.820.202.000.706.92 School/Church7.500.201.500.705.25 Family/Personal7.430.201.490.705.20 Shopping6.610.201.320.704.63 * weighted based on 40% work trips and 60% average trips Source: National trip lengths from US. Department of Transportation, Na average trip length from Table 15. Travel Demand Summary The result of combining trip generation rates, primary trip factors and localized average trip lengths is a travel demand schedule that establishes the daily VMT during the average weekday on the major roadway system generated by various land use types per unit of development in HawaiÓi County. The recommended travel demand schedule is presented in Table 17. The schedule provides the option of assessing single-family detached development based on the overall average trip generation or on trip generation rates that vary by the size of the dwelling unit. In addition, the schedule provides the option of basing the fee on major County roads only, or including both HÓC\INAÐIFSSeptember 19, 2006, Page 40 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Table 17 TRAVEL DEMAND SCHEDULE County RoadsAll Major Roads ITEPrimary LengthDailyLengthDaily Land Use TypeCodeUnitADTTrips (miles)VMT(miles)VMT Less than 1,000 sq. ft.210Dwelling4.22100% 2.159.097.5431.81 1,000 - 1,499 sq. ft.210Dwelling4.79100% 2.1510.327.5436.11 1,500 - 1,999 sq. ft.210Dwelling5.02100% 2.1510.807.5437.81 2,000 - 2,999 sq. ft.210Dwelling5.27100% 2.1511.357.5439.73 3,000 - 3,999 sq. ft.210Dwelling5.52100% 2.1511.897.5441.62 4,000 sq. ft. or more210Dwelling5.72100% 2.1512.317.5443.09 Single-Family Det. Avg.210Dwelling4.79100% 2.1510.327.5436.11 Multi-Family220Dwelling3.36100% 2.157.247.5425.33 Hotel/Motel310/320Room3.45100% 3.0010.3410.4936.20 Retail/Commercial8201000 sq. ft.21.4762% 1.3217.604.6361.59 Office 7101000 sq. ft.5.51100% 2.4413.428.5346.97 Industrial Park1301000 sq. ft.3.48100% 2.448.488.5329.69 Warehouse1501000 sq. ft.2.48100% 2.004.966.9217.16 Church/Synagogue5601000 sq. ft.4.56100% 1.496.775.2023.69 Elementary/Sec. School520/5301000 sq. ft.6.8524% 1.502.465.258.62 Hospital6101000 sq. ft.8.79100% 2.4421.428.5374.96 Nursing Home6201000 sq. ft.3.05100% 1.986.036.9221.12 Other Institutional7101000 sq. ft.5.51100% 2.0011.016.9238.09 Source: ÑADTÒ is 1/2 of daily trips from Institute of Transportation En Trip Generation, 7th ed., 2003; other institutional ADT based on office ADT rate; single-family trip rates by sq. footage categories from Table 12; primary tri retail/commercial uses from ITE, Trip Generation Handbook, March 2001 (additional 10% deducted from non-passby percentage for shopping centers to account for diverted-link trips); percentage for elementary/secondary school based on Preston Hitchens, ÑTrip Generation of Day Care Centers,Ò 1990 ITE Compendium; local average trip lengths from Table 16. Roadway Capacity Nationally-accepted level of service (LOS) categories have been developed by the transportation engineering profession. Six categories, ranging from LOS A to LOS F, qualitatively describe driving conditions in terms of such factors as speed and travel time, freedom to maneuver, traffic interruptions, comfort and convenience, and safety. LOS A represents free flow, while LOS F represents the breakdown of traffic flow, characterized by stop-and-go conditio Service volume capacity is a quantitative measure, expressed in terms of the rate of flow (vehicles passing a point during a period of time). Service volume capacity represents the maximum rate of flow that can be accommodated by a particular type of roadway while still maintaining a specified LOS. The service volume capacity at LOS E represents that maximum volume the flow breaks down into stop-and-go conditions that characteri ultimate capacity of the roadway. HÓC\INAÐIFSSeptember 19, 2006, Page 41 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY The capacity of an individual roadway depends on a number of factors, including number of lanes, lane width, topography, percent of truck traffic, etc. In impact fee analysis, generalized capacity estimates are typically used based strictly on number of lanes. The Florida Department of Transportation has done extensive work developing generalized capacity estimates to be used for planning purposes based on Highway Capacity Manual procedures, and their work will be used to develop planning-level capacity estimates for use in this analysis. As can be seen in Table 18, major roadways tend to be able to accommodate about 6,500 vehicles per lane per day. Table 18 DAILY VEHICLE CAPACITIES Total Capacity/ CapacityLane 2-Lane Undivided13,0006,500 2-Lane Divided or 3-Lane17,1005,700 4-Lane Undivided25,9006,475 4-Lane Divided or 5-Lane34,5006,900 Source: Data for Class II arterial roads (2.0-4.5 signalized intersecti per mile) from Florida Department of Transportation, 2002 Quality/Level of Service Handbook, 2002, Table 4-1: Generalized Annual Average Daily Volumes for FloridaÔs Urbanized Areas. The inventory of HawaiÓiÔs major roadway system, including segment descriptions, segment lengths in miles, number of lanes, number of lane-miles, generalized daily capacity and average daily volumes, is presented in Appendix A, Table 94. The estimated existing system-wide demand based on available traffic count data is presented in Table 13. Dividing the system-wide capacity (VMC) by system-wide demand (VMT) yields the VMC/VMT ratio. As shown in Table 19, the major roadway system currently has about 121 percent more capacity than demand. This represents the current system-wide level of service. However, this level of service may not be sustainable as the community grows, and instead may represent some amount of excess capacity. For this study, a conservative system-wide VMC/VMT ratio of 1.00 will be used as the level of service in the impact fee calculations. Table 19 EXISTING SYSTEM-WIDE CAPACITY/DEMAND RATIO County RoadsAll Roads Total Vehicle-Miles of Capacity (VMC)2,265,510 7,738,770 Total Estimated Vehicle-Miles of Travel (VMT)1,013,4593,502,558 Existing VMC/VMT Ratio2.242.21 Assumed VMC/VMT Ratio for Impact Fee Calculation1.001.00 Source: Actual VMC from Table 94 of Appendix A; estimated VMT from Tabl HÓC\INAÐIFSSeptember 19, 2006, Page 42 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Cost per Service Unit Expanding the capacity of the CountyÔs major roadway system is p existing roadway cross-sections to accommodate additional throug and bridges. While impact fees can be used for intersection improvements and other types of capacity enhancements, it is more difficult to quantify the capacity added by these types of improvements in terms of vehicle-miles of capacity. In a consumption-based transportation impact fee system, roadway improvement costs are entered into the formula as an average cost for providing new roadway capacity. Assuming there are no dramatic changes to the mix of the type of improvements, it is not necessary to revisit impact fees each time that the capital improvement program changes. Updates at reasonable periodic intervals are sufficient to analyze potential changes to average costs. The current cost to add additional capacity to the existing major roadway system can be estimated using historical costs as well as planned projects for which bids have been received. Table 20 below summarizes the CountyÔs capacity-expanding improvements to its major roadway system from 2000 to 2005, including the cost and the vehicle-miles of capacity (VMC) added by each improvement. Projects for which it was impossible to quantify the vehicle-miles of capacity added by the improvement were excluded. Based on available cost data, the CountyÔs road cost is approximately $4.4 million per lane- mile, excluding bridge construction, and $5.8 million including Table 20 RECENT ROAD IMPROVEMENTS No. of LanesCapacity New Added ProjectMi.BeforeAfterBeforeAfterLn. Mi.VMC Cost Mamalahoa Hwy0.79241.5813,00026,00010,270$7,258,964 Mohouli Street Extension1.35022.70013,00017,550$11,207,098 Puainako Street Extension4.50029.00013,00058,500$32,310,000 Kuakini Hwy, Palani to Hualalai0.49240.9813,00026,0006,370$12,574,000 Subtotal, Segment Improvements7.1314.2626,00078,00092,690$63,350,062 Komohana St./Alenaio Stream 0.02240.0413,00026,000260$5,871,625 Oshiro, Kalopa/Aliipali & Kaumoali0.03120.036,50013,000195$2,314,450 Honomu Bridge Replacement0.02120.026,50013,000130$2,516,264 Inoino Gulch Bridge Replacement0.01120.016,50013,00065$1,129,238 Onomea Camp Rd Bridge Replace0.01120.016,50013,00065$585,005 Kawailani Street Bridge Replace0.02240.0413,00026,000260$7,786,710 Subtotal, Bridge Replacements0.110.1552,000104,000975$20,203,293 Total14.41 93,665$83,553,355 Source: Road segments, miles, lanes and costs from HawaiÓi County; total cost includes actual construction cost or bid cost if final cost not available, design cost and right-of-way cost if applicable; costs have been adjusted by Engineering News-Record Construction Cost Index from date of completion to January 2006; added capacity (difference between before and after capacity) times segment length. HÓC\INAÐIFSSeptember 19, 2006, Page 43 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY The calculation of the cost per service unit can be derived from the recent thoroughfare improvement project costs. As shown in Table 21, the average cost per service for new road construction inclu bridges is $892. However, since the bridge cost per VMC is much higher than general road construction costs per VMC, the cost per VMC excluding bridges may more accurately reflect the average cost of the entire road system. The average cost per VMC is $683 if bridge projects are excluded. Table 21 ROAD COST PER SERVICE UNIT Total Excluding Road CostsBridges Recent Road Improvement Costs$83,553,355$63,350,062 Added Lane-Miles14.4114.26 Average Cost per Lane-Mile$5,798,290$4,442,501 Recent Road Improvement Costs$83,553,355$63,350,062 Added VMC93,66592,690 Average Cost per VMC$892$683 Source: Recent road improvement cost, added lane-miles and added VMC fro Net Cost per Service Unit In the calculation of the impact of new development on roadway infrastructure, credit should be giv for taxes that will be paid by new development and used to retire outstanding debt for past major roadway improvements. Credit will also be provided in this stud property, as well as motor fuel taxes that will be generated by new development and used to pay for capacity-related major road improvements. Roadway systems in HawaiÓi County are generally financed through Federal, State and County programs. The County fuel tax and vehicular taxes are deposited to the Cou 10 the HawaiÓi County General Plan, fuel tax and vehicular taxes collected in the county are deposi the Highway fund for maintenance of County roads. As a result, credit for the future contribution of development to these funds is not necessary since the fund is used exclusively for the maintenance of County roads. Federal aid is generally provided for the mainten of Federal-aid County highways. The County allocates 50 percent maintenance of Federal-aid County highways, and the balance of the fuel tax is used to maintain the non-Federal-aid local roads. In addition to maintenance funding, the County receives Federal and State aid for capacity-enhancing projects. Based on a review of the 2006 to 2008 Statewide Transportation Improvement Program (TIP), it is anticipated that $61.5 million in Federal funds and $6.3 million in State funds will be available to pay for capacity related improvement programs on major roads in HawaiÓi County over the next three years. The current list of Federal- and State-funded eligible improvements from the State of HawaiÓi Department of Transportation TIP is shown in Table 22. 10 HawaiÓi County General Plan Infrastructure Assessment Study, Ch. 3.3.5, 2004 HÓC\INAÐIFSSeptember 19, 2006, Page 44 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Table 22 PLANNED ROAD IMPROVEMENT FUNDING, 2006-2008 State Federal ProjectSegment LimitsImprovementFundingFunding HawaiÓi Belt RdWaimea BypassNew Road$0$1,200,000 Konoelehua Ave (Design)Kamehameha to PuinakoWiden$70,000$280,000 Kealakehe ParkwayKeanalehu Dr to KealakaaRoad Extension$100,000$1,200,000 Queen Kaahumanu HwyKealakehe Pkwy to Keahole Widen$6,000,000$24,000,000 Volcano RoadKulani Rd IntersectionIntersection$100,000$400,000 Subtotal, State Roads$6,270,000$27,080,000 Puainako StreetKomohana to KawiliWiden$0$4,000,000 Saddle Roadn/aRoad Extension$0$2,400,000 Alii Hwy, Phase 1Kamehameha III Rd to KuakiniWiden$0$24,000,000 Kuakini HwyHualalai Rd to Alii HwyWiden$0$40,000 Palani-Kealakaa Intersectionn/aIntersection$0$4,000,000 Subtotal, County Roads$0$34,440,000 Totals$6,270,000$61,520,000 Source: HawaiÓi Department of Transportation, Statewide Transportation Improvement Program, FY 2006 to FY 200, 2005. Dividing the capacity-related share of anticipated annual Federal and State funding by existing travel on the major roadway system yields the annual Federal and State capacity funding per VMT. Multiplying that figure by the appropriate net present value provides the eq stream of funding over the next 20 years, a period that roughly corresponds to the life of roadway improvements. The result is a Federal and State funding credit of $151 per VMT for County roads and $78 per VMT for all roads, as shown in Table 23. Table 23 STATE AND FEDERAL ROAD FUNDING CREDIT PER SERVICE UNIT County RoadsAll Major Roads Federal Capacity Improvement Funding, FY 2006 to FY 2008$34,440,000$61,520,000 State Capacity Improvement Funding, FY 2006 to FY 2008$0$6,270,000 Total State and Federal Funding$34,440,000$67,790,000 Total Years in Transportation Plan33 Annual Funding$11,480,000$20,506,667 Daily VMT on Major Roadway System1,013,3973,502,681 Annual Capacity Funding per VMT$11.33$5.85 Present Value Factor (20 years at 4.25%)13.2913.29 Federal and State Funding Credit per VMT$151$78 Source: Federal and State funding from Table 22; existing VMT from Table 13; discount rate for net present value factor is based on average rate on 20-year, tax exempt AAA municipal bo The thoroughfare facility fees must also take into consideration that new development will be generating future revenues that will be used to retire outstanding debt for past capacity-related roadway improvements. An analysis of GO debt is provided in Appendix B. This analysis assumes that all the HÓC\INAÐIFSSeptember 19, 2006, Page 45 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY outstanding road-related debt was issued for capacity-enhancing projects. As shown in Table 24, total outstanding road-related debt is $68.8 million. A simple method that ensures that new development is not required to pay for existing facilities, through property tax or other funds used for debt retirement, as well as to subtract the outstanding debt from the replacement cost of existing road facilities. Essentially, this defines the existing level of service that new development is required to maintain as the equity va the existing road system. While it may be somewhat difficult to quantify the replacement value of the existing thoroughfare system, the same result is obtained by dividing the outstanding debt by existing service units. The CountyÔs road-related debt credit is $68 per service unit when prorated over travel on County roads, and $20 per service unit when based on all major road travel, as shown in Table 24. Table 24 ROAD DEBT CREDIT County RoadsAll Major Roads Total Outstanding Road Related Debt Principal $68,846,141$68,846,141 Percent Attributable to Capacity100%100% Attributable Outstanding Road Debt Principal $68,846,141$68,846,100 Daily VMT on the Major Roadway System 1,013,4593,502,558 Debt Credit per VMT$68$20 Source: Total outstanding debt from Appendix B, Table 97; percent attributable to capacity assumed; existing VMT from Table 13. Prior to development, the owners of a vacant parcel of land paid property taxes that may have been used, in part, to construct capital facilities of the type for which impact fees are being assessed. law requires the provision of an additional credit in order to reduce impact fees by the value of property tax payments over the last five years that were used to construct existing capital facilities of th which the fees are being charged. Pursuant to State law, this credit must represent the present value of the past five years of property taxes paid by vacant land for capital facilities funded through the general fund. Based on a review of the CountyÔ s CIP status report, nearly all of the CountyÔs road cap improvements over the past five years have been funded through Federal and State funds and County GO bonds with maintenance and operations funded through the CountyÔs Highway Fund. Since newly- developing properties were undeveloped in the past, they did not generate any revenue for the highway fund or any other type of general fund revenues except for property taxes. As a result, a credit necessary to account for the portion of property taxes from vacant and agricultural land that has been utilized over the past five years to pay principal and interest for outstanding road-related debt. In the absence of a detailed principal and interest schedule for road-r assumed to be the same for all five years. As shown in the table below, the estimated annual principal and interest payments on the current outstanding debt for roads million. HÓC\INAÐIFSSeptember 19, 2006, Page 46 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Table 25 ROAD GENERAL FUND HISTORICAL CAPACITY EXPENDITURES Annual GO Bond Debt Service$24,921,138 Roads Share of Total Outstanding Debt25.2% Annual Road Debt Service$6,280,127 Years5 Total General Fund Capacity Funding, 2000-2005$31,400,634 Source: Annual debt service based on 2004-05 debt service from HawaiÓi County, 2005-06 Annual Operating Budget, June 2006; road share of debt from Table 96. An analysis of budgetary and tax data indicates that vacant and agricultural properties within the County generate 32.5 percent of property tax revenues, and property taxes accounted for 66.5 percent of general fund revenues. Using these percentages, the credit for past pro only County roads are considered, or $3 per VMT if the road impact fees are based on travel on all major roads, as shown in Table 26. Table 26 ROAD PROPERTY TAX CREDIT County RoadsAll Major Roads Percent of General Fund from Property Taxes, FY 2005-0666.5%66.5% Percent of Property Taxes from Vacant/Ag. Land, 200632.5%32.5% Percent of General Fund from Vacant/Ag. Land21.6%21.6% Total General Fund Capacity Funding, 2000-2005$31,400,634$31,400,634 Vacant/Ag. Land Share of Past Capital Cost$6,786,462$6,783,544 Replacement Cost of Existing Road System$1,547,343,330$5,285,579,910 Percent of Existing Cost Paid by Vacant/Ag. Land, 2000-20050.4%0.1% Road Cost per VMT$683$683 Past Property Tax Credit per VMT$3$1 Source: Percent of general fund from property taxes from HawaiÓi County 2005-06 Annual Operating Budget, June 2006; percent of property taxes from undeveloped/agricultural land from HawaiÓ fund capacity funding from preceding table; replacement cost is product of existing VMC from Table 94 in Ap per VMC; cost per VMT (assumed same as cost per VMC) from Table 21. Reducing the cost per service unit by the road debt credit, past property tax payments and the anticipated annual Federal/State funding per service unit leaves a net cost of about $461 per VMT for county roads and about $584 per VMT for all roads to replace cap development, as summarized in Table 27. HÓC\INAÐIFSSeptember 19, 2006, Page 47 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Table 27 ROAD NET COST PER SERVICE UNIT County RoadsAll Major Roads Cost per Vehicle-Mile of Travel (VMT)$683 $683 Federal/State Funding Credit per VMT$151 $78 Debt Service Credit per VMT$68 $20 Property Tax Credit$3 $1 Net Cost per VMT$461 $584 Source: Cost per VMT from Table 21; Federal/State funding credit from T service credit from Table 24; property tax credit from Table 26. Maximum Fee Schedule Using the formula and the inputs calculated in this section of the impact fee report, the maximum potential road impact fees per unit of development for various land uses are shown in Table 28. The fee schedule provides the option of charging single-family detached development based on a flat rat per unit or on a variable schedule depending on the size of the dwelling unit. The fee schedule provides the option of implementing the road impact fee based on major county roads or both State and county major roads. In addition, impact fees could be adopted at less than 100 percent of the level shown in the net cost schedule, provided that the reduction is applied un order to retain the proportionality of the fees. HÓC\INAÐIFSSeptember 19, 2006, Page 48 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Table 28 ROAD NET COST SCHEDULE County RoadsAll Major Roads Net Net Net Net ITEDailyCost/Cost/ DailyCost/ Cost/ Land Use TypeCodeUnitVMTVMT Unit VMTVMT Unit Less than 1,000 sq. ft.210Dwelling9.09$461$4,19031.81$584$18,577 1,000 - 1,499 sq. ft.210Dwelling10.32$461$4,75836.11$584$21,088 1,499 - 1,999 sq. ft.210Dwelling10.80$461$4,97937.81$584$22,081 2,000 - 2,999 sq. ft.210Dwelling11.35$461$5,23239.73$584$23,202 3,000 - 3,999 sq. ft.210Dwelling11.89$461$5,48141.62$584$24,306 4,000 sq. ft. or more210Dwelling12.31$461$5,67543.09$584$25,165 Single-Family (flat rate)210Dwelling10.32$461$4,75836.11$584$21, Multi-Family220Dwelling7.24$461$3,33825.33$584$14,793 Hotel/Motel310/320Room10.34$461$4,76736.20$584$21,141 Retail/Commercial8201000 sq. ft.17.60$461$8,11461.59$584$35,969 Office 7101000 sq. ft.13.42$461$6,18746.97$584$27,430 Industrial Park1301000 sq. ft.8.48$461$3,90929.69$584$17,339 Warehouse1501000 sq. ft.4.96$461$2,28717.16$584$10,021 Church/Synagogue5601000 sq. ft.6.77$461$3,12123.69$584$13,835 Elementary/Sec. School520/5301000 sq. ft.2.46$461$1,1348.62$584$5,034 Hospital6101000 sq. ft.21.42$461$9,87574.96$584$43,777 Nursing Home6201000 sq. ft.6.03$461$2,78021.12$584$12,334 Other Institutional7101000 sq. ft.13.42$461$6,18746.97$584$27,430 Source: Net cost per VMT from Table 27; daily VMT from Table 17. Capital Improvement Plan Funding of $90.5 million is proposed for transportation infrastructure improvements in the CountyÔs 2005-06 to 2010-2011 capital improvements program (CIP). Impact fees may only be used for capacity- expanding improvements to the major roadway system. A detailed breakdown of each project component cost was not available; consequently, the identification of eligible projects is prelimin subject to verification. It is estimated that eligible improvements account for $87.4 million of the total CIP costs. The current list of eligible improvements from the six-year CIP is shown in Table 29. improvements are currently planned specifically for the proposed 4-Puna/KaÓu benefit district. Some impact fee-eligible improvements should be identified for this benefit districts prior to the adoption of a road impact fee. HÓC\INAÐIFSSeptember 19, 2006, Page 49 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Table 29 ROAD CAPITAL IMPROVEMENT PROGRAM Proposed BenefitTotal Impact Fee Judicial ProjectDistrictDistrictCost Eligible Mamalahoa-Kawaihae Connector Kohala1-N/S Kohalano est.no est. Kalopa Sand Gulch Bypass RoadHamakua2-Hilo/Hamakua$2,500,000$2,500,000 Waianuenue Ave ImprovementsS. Hilo2-Hilo/Hamakua$8,675,000$8,675,000 Hilo Roads Guardrail & Retaining Walls (FHWA)S. Hilo2-Hilo/Hamakua$600,000$0 Kamehameha Avenue Resurfacing (FHWA)S. Hilo2-Hilo/Hamakua$1,000,000$0 Kuakini Highway Improvements (FHWA)S. Hilo2-Hilo/Hamakua$1,500,000$1,500,000 Kawailani/Pohakulani/Ainaola/Iwalani Intersect.S. Hilo2-Hilo/Hamakua$4,886,000$4,886,000 N./ S. Mamalahoa Highway Improvements (FHWA)Hilo2-Hilo/Hamakua$528,000$528,000 Mohouli Street Improvement (FHWA)S. Hilo2-Hilo/Hamakua$1,575,000$1,575,000 Laupahoehoe Gulch Access Road ImprovementsN. Hilo2-Hilo/Hamakua$100,000$0 Plani-Kealakaa Intersection (FHWA)N. Kona4-N/S Kona$1,316,000$1,316,000 Alii Drive Improvements (FHWA)N. Kona4-N/S Kona$800,000$800,000 Kahului-Keauhou Parkway (FHWA)N. Kona4-N/S Kona$15,830,000$15,830,000 Alii HighwayN. Kona4-N/S Kona$49,321,000$49,321,000 Bridge Inspection & ApprisalsVarious$60,000$0 Land Acquisition for PW FacilitiesVarious$450,000$450,000 East Hawai'i Drainage ImprovementsVarious$700,000$0 West Hawai'i Drainage ImprovementsVarious$700,000$0 Total$90,541,000$87,381,000 Source: County of HawaiÓi, Capital Budget and Six Year Capital Improvements Program, June 2006. HÓC\INAÐIFSSeptember 19, 2006, Page 50 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY CHAPTER 8: PARKS AND RECREATION Recreational facilities can be generally classified as resource-based or facility-based. Most resource- based parks on the island are provided by the Federal and State governments (231,400 and 800 acres respectively), with the County primarily providing resource-based parks along the coast in beach parks (260 acres). The County provides a variety of facility-based parks, ranging from small neighborhood parks that serve relatively small geographic areas, district parks that serve an entire district, and larger regional parks with a county-wide scope. The location of existing parks and recreation facilities is graphically illustr Figure 6, and the inventory of parks and park facilities is shown in Table 106 of Appendix E. This study bases the proposed park impact fees on the existing level of service, and measures that level of service in terms of the ratio of the replacement value of existing facilities to existing residential development expressed in service units. Figure 6 EXISTING COUNTY PARKS HÓC\INAÐIFSSeptember 19, 2006, Page 51 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Assessment and Benefit Districts The concept of assessment and benefit districts was described in the Policy Issues section. Assessment districts are geographic areas subject to a single fee schedule. Assessment districts may be divided into multiple benefit districts, which are areas where fees collected are earmarked to be spent. While construction and land cost data are likely to vary between urban and rural locations and different parts of the County, sufficient cost data are not available by district that would provide a legal basis for calculating separate fees for each benefit district. Consequently, a single county-wide assessment district is recommended for calculating park and recreation impact fees, which provides a uniform park impact fee schedule throughout the county. However, it is further recommended that the County create several benefit districts for park impact fees. The County currently restricts the expenditure of fair share contributions to the judicial district in which they were collected. The nine judicial districts have been aggregated into the proposed four park benefit districts (see Figure 2 on page 18). To facilitate projects with wider benefit, such as regional parks, it is recommended that the County allow up to 20 percent of the park impact fee collected in a district to be used for projects outside the district, provided that significant benefit can be shown to the district in which the fees were collected. Service Unit While most impact fees are assessed on all uses, park impact fees are usually assessed only on residential uses. This is because a park nexus is generally easier to establish for residential uses than for nonresidential. Some jurisdictions, however, do assess park fees on non-residential uses. Jurisdictions that charge non-residential uses for park impact fees are generally less populated central cities within major metropolitan areas with a high day-time, or functional population, than night-time, or residential population since the added influx of daytime population places extra demand and strain on park facilities and services, such as parks. Similarly, communities such as HawaiÓi County, with a significant tourist population, assess park impact fees for hotel/motel accommodations since the users of those units also benefit from the communityÔs parks and recreational facilities. Disparate types of development must be translated into a common unit of measurement that reflects the impact of new development on the demand for park facilities. a Ñservice unit.Ò Population is the most common service unit used in park impact fee analysis. Si the level of service for park facilities is measured in terms of population, demand for park facilities is proportional to the number of people in a dwelling unit or hotel room. Consequently, data on average household size for various types of units is a critical component of a park impact fee. These data are presented and analyzed in Appendix C. Population estimates are based on three factors: the number of dwelling units, average household sizes for various types of units and occupancy rates. The number of d some degree of precision, and average household size has been declining somewhat predictably but has been stabilizing in recent years. Occupancy rates, on the other hand, tend to vary significantly over time, and not in predictable directions. Consequently, this report recommends the use of a service unit that avoids the need to make assumptions about occupancy rates. This service unit is the Ñequivalent dwelling unitÒ or EDU, which HÓC\INAÐIFSSeptember 19, 2006, Page 52 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY represents the impact of a typical single-family dwelling. By definition, a typical single-family unit represents, on average, one EDU. Other types of units each represent a fraction of an EDU, based on their relative average household sizes. The EDUs associated with each housing type and unit size category are shown in Table 30. Table 30 PARK EQUIVALENT DWELLING UNIT MULTIPLIERS Land UseAvg HH SizeEDUs/Unit Less than 1,000 sq. ft.2.780.97 1,000 - 1,499 sq. ft.2.951.03 1,500 - 1,999 sq. ft.3.061.07 2,000 - 2,999 sq. ft.3.231.13 3,000 - 3,999 sq. ft.3.451.20 4,000 sq. ft or more3.681.28 Single-Family Detached Average2.871.00 Multi-Family2.260.79 Hotel/Motel1.340.47 Source: Average household size for single-family average and multi-fami units from Table 99 in Appendix C; average household sizes by si categories from Table 100 in Appendix C; average occupancy for h rooms estimated to be one-half of average vehicle occupancy on v trips, as reported by U.S. Dept. of Transportation, National Hou Survey, 2001; EDUs/unit is ratio of average household size to si detached average household size. In order to determine the existing level of service, it is necessary to estimate the total number of EDUs in the county. This is accomplished by multiplying the number of existing residential units by the EDUs per unit calculated above based on relative average household sizes. As shown in Table 31, there are 77,264 park service units (EDUs) in HawaiÓi County. Table 31 EXISTING PARK SERVICE UNITS ExistingEDUs/Total Land UseUnits UnitEDUs Single-Family Detached58,772 1.0058,772 Multi-Family17,153 0.7913,551 Hotel/Motel10,513 0.474,941 Total Park EDUs77,264 Source: Existing units from Table 98 in Appendix C; EDUs per unit from Table 30; hotel/motel units from Table 7. Cost Per Service Unit As noted earlier, this study bases the park and recreation impact fee on the existing level of service, and measures that level of service in terms of the ratio of the replacement value of existing facilities to existing residential development expressed in equivalent dwelling units. A full inventory of HawaiÓi CountyÔs parks and specialized recreational facilities is shown in Table 106 and Table 107, respectively HÓC\INAÐIFSSeptember 19, 2006, Page 53 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY of Appendix E. As shown in Appendix E, HawaiÓi CountyÔs existing open space sites total 1,898.4 acres, with 991.6 acres of developed parkland. The previous 1990 impact fee study utilized agriculture land value per acre in the County for determining the replacement value for park acreage. Agricultural land value provides a reasonable proxy for parks that are located in rural inland locations; however, it does not accurately reflect the value of parkland located in urban or shoreline areas where land costs ar County acquisitions for parks have been infrequent in recent years and do not provide a good basis for determining current average park land costs. An alternative approach was to analyze the cost of residential land offered for sale based on an analysis of 2,147 parcels of residential land were offered for sale in HawaiÓi County and were posted on the web site of the National Association of Realtors. Costs per acre vary considerably by size and location, but location is variation by parcel size is used. Applying the average cost per acre for residential property based on current asking prices by existing park acreage in each parcel size category yields a reasonable estimate of current park land replacement costs of $72.6 million, as shown in Table 32. These costs are f only, and do not include site development costs. Development costs for park land includes the cost of site preparation such as clearing and grading, installation of security lighting, landscaping and ut Site development costs per acre for HawaiÓi CountyÔs existing developed parks are unavailable and will not be considered in determining the impact fee. Table 32 PARK LAND REPLACEMENT COST Hawaii County Real Estate Data Existing Est. Park Size of ParcelTotal Price Total Ac.Cost/AcrePark AcresLand Value Less than 1 acre$135,789,442249.20$544,9018.5$4,648,006 1 to 4.99 acres$199,922,9601,879.57$106,366178.3$18,963,994 5 to 9.99 acres$36,188,600433.60$83,461163.3$13,625,008 10 to 19.99 acres$40,924,900643.49$63,598169.7$10,793,853 20 to 49.99 acres$56,181,5001,646.62$34,119348.3$11,883,648 50 to 99.99 acres$16,549,0001,263.75$13,095521.7$6,831,138 100 to 499.99 acres$22,055,0001,906.56$11,568508.7$5,884,295 500 acres or more$27,150,0004,441.58$6,1130.0$0 Total$534,761,40212,464.37$42,9031,898.4$72,629,942 Source: Hawaii County real estate data is all residential properties offered for sale on www.realtor.com on June 6, 2006; existing park acres from Table 106 of Appendix E. The County has invested in the construction of park and recreation facilities, ranging from playgro and picnic pavilions to community centers. The sum of current s County recreation facilities total about $440.7 million, as show HÓC\INAÐIFSSeptember 19, 2006, Page 54 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Table 33 STANDARD PARK FACILITY REPLACEMENT COSTS Facility TypeUnitsUnit CostTotal Cost Gymnasium19$6,000,000$114,000,000 Gymnasium w/ Community Mtg Rm3$7,500,000$22,500,000 Community Center17$4,500,000$76,500,000 Senior Center9$2,500,000$22,500,000 Pavilion80$200,000$16,000,000 Swimming Pool (25M)6$6,000,000$36,000,000 Swimming Pool (50M)3$10,000,000$30,000,000 Restroom78$350,000$27,300,000 Picnic Area33$200,000$6,600,000 Playground Equipment25$250,000$6,250,000 Baseball Field66$850,000$56,100,000 Soccer/Football Field24$400,000$9,600,000 Basketball Court29$150,000$4,350,000 Volleyball Court7$150,000$1,050,000 Tennis Court26$125,000$3,250,000 Lighted Tennis Court21$150,000$3,150,000 Skateboard Park2$250,000$500,000 Boat Launch5$1,000,000$5,000,000 Total Standard Facility Costs$440,650,000 Source: Units from Table 106 in Appendix E with breakdown of pools by s County Department of Parks and Recreation, July 25, 2006.; unit County facilities inventory original construction costs adjusted by ENR CCI (January 2006) and HawaiÓi County Department of Parks and Recreation, April 11 and The CountyÔs Parks and Recreation Department provides residents with additional recreational facilities for which standardized pricing is not applicable. The following table shows replacement values for non- standardized facilities such as golf courses, civic centers, arenas and unique recreational facilitie estimates are based on original costs from the CountyÔs fixed asset listings, adjusted by a construction cost inflation factor. The estimated total value of these facilities is $25.0 million, as shown in Table 34. Table 34 SPECIAL PARK STRUCTURES AND FACILITIES Facility TypeReplacement Value Special Facilities$14,594,261 Golf Course Facilities$2,283,847 Civic Centers and Auditoriums$8,110,740 Total Facility Costs$24,988,848 Source: Facility replacement value from non-standard facility adjusted cost in Table 107 in Appendix E. Dividing the total replacement cost of existing park land and capital improvements by the number of existing park service units (or EDUs) yields the cost per EDU to maintain the existing level of service, as summarized in Table 35. The cost per service unit to maintain the current level of service is $6,967 per EDU. HÓC\INAÐIFSSeptember 19, 2006, Page 55 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Table 35 PARK COST PER SERVICE UNIT Total Park Land Cost$72,629,942 Total Park Facility Cost$440,650,000 Total Special Facility Cost$24,988,848 Total Park Costs$538,268,790 Equivalent Dwelling Units (EDUs)77,264 Park Cost per EDU$6,967 Source: Park land cost from Table 32; total facility cost from Table 33; total special facility cost from Table 34; EDUs from Table 31. Net Cost Per Service Unit Some of the cost to provide new residents with park facilities will be paid by the new residents themselves through future payments that will be used to retire outstanding debt, and past payments paid through property taxes levied on the vacant land prior to development. In addition, some of the capital costs to serve growth will be paid by outside funding sources. Consequently, the cost per service unit is reduced to take account of these factors, and the result Based on a review of the CountyÔs CIP status report, the CountyÔ park capital improvements over the past five years has been gene of past bond issues shown in Table 97 of Appendix B indicates that currently the CountyÔs outstandi debt related to parks is $25.4 million. A simple method that ensures that new development is not required to pay for existing facilities, through property tax or other funds used for debt retirement, as well as to subtract the outstanding debt from the replacement cost of existing park facilities. Essentially, this defines the existing level of service that new development is required to maintain as the equity value of the existing park system. The same result is obtained by dividing the outstanding debt by existing service units. As shown in Table 36, the CountyÔs current park-related debt results in a credit of $329 for every park service unit in HawaiÓi County. Table 36 PARK DEBT CREDIT PER SERVICE UNIT Total Outstanding Debt Principal$25,431,806 Park Equivalent Dwelling Units, 200577,264 Park Debt Credit per EDU$329 Source: Total outstanding debt from Appendix B, Table 97; total park EDUs from Table 31. State law requires an additional credit in order to account for the portion of past property taxes from vacant land that have paid for capital facilities over the previous five years. This additional credit represents the value of the past five years of property taxes paid by vacant land for capital facilities funded through the general fund. HÓC\INAÐIFSSeptember 19, 2006, Page 56 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Based on a review of the CountyÔs CIP status report, two capacity-expanding projects for parks were funded directly from the general fund appropriations over the last five years. As shown in Table 37, direct general fund expenditures for new park facilities were $1 Table 37 DIRECT PARK GENERAL FUND EXPENDITURES, 2001-2005 Project Expenditure Keaau Park Improvements$110,000 District 4 Park Improvements$37,500 Total$147,500 Source: HawaiÓi County, Capital Improvement Project Status Report, June 2005. Most other capacity-expanding park projects were funded through the CountyÔs GO bonds. As shown in the table below, the estimated annual principal and interest payments on the current outstanding debt for parks over the past five years was $13.0 million. Total general fund capacity expenditures were $13.1 million. Table 38 TOTAL PARK GENERAL FUND EXPENDITURES, 2001-2005 Annual GO Bond Debt Service$24,921,138 Park Share of Total Outstanding Debt10.4% Annual Park Debt Service$2,591,798 Years5 Total Debt-Related Capacity Funding, 2000-2005$12,958,992 Direct General Fund Expenditures, 2000-2005$147,500 Total General Fund Expenditures, 2000-2005$13,106,492 Source: Annual debt service based on 2004-05 debt service from HawaiÓi County, 2005-06 Annual Operating Budget, June 2006; park share of debt from Table 96; direct general fund expenditures from Table 37. An analysis of budgetary and tax data indicates that vacant and agricultural properties within the County generate 32.5 percent of property tax revenues, and property taxes accounted for 66.5 percent of general fund revenues. Using these percentages, the credit for past property tax payments is $35 per EDU, as shown in Table 39. HÓC\INAÐIFSSeptember 19, 2006, Page 57 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Table 39 PARK PROPERTY TAX CREDIT Percent of General Fund from Property Taxes, FY 2005-0666.5% Percent of Property Taxes from Vacant/Ag. Land, 200632.5% Percent of Credit for Past Property Tax Payments21.6% Total General Fund Capacity Funding, 2000-2005$13,106,492 Net Vacant/Ag. Land Share of Past Capital Cost$2,831,423 Total Existing Park Replacement Value$538,268,790 Percent Paid by Vacant Land in Last Five Years0.5% Park Cost per EDU$6,967 Past Property Tax Credit per EDU$35 Source: Percent of general fund from property taxes from HawaiÓi County 2005-06 Annual Operating Budget, June 2006; percent of property taxes from undeveloped/agricult Real Property Tax Administrator, June 1, 2006; park general fund table; total existing park replacement value and park cost per EDU from Table 31. Another factor that is often considered in determining park impact fees is the degree to which outside funding has been used to cover a portion of the recreational facility costs. While there is no guarantee that the past level of funding will be indicative of future outside funding support, to be conservative, the cost per service unit will be reduced to account for the likelihood that some growth-related park costs can be paid for with Federal and State grants. Over the last five years, the County has received an average of $216,900 annually in Federal grants for capital improvement to park facilities, as summarized in Table 40. Table 40 PARK GRANT FUNDING, 2000-2005 Project Fund Source Amount Reeds Bay Beach ParkFederal$250,000 Isaac Hale Beach Park Expansion and ImprovementFederal$520,824 Waimea Trails and GreenwaysFederal$313,700 Total Grant Funding 2000-2005$1,084,524 Average Annual Grant Funding $216,900 Source: HawaiÓi County Capital Improvement Project Status Report, June 2005; Parks Department. It may be reasonable to assume that the grant funding received per park service unit in the past will continue in the future. Dividing the average annual grant funding by existing service units yields annual funding per service unit. Multiplying that by the present value factor results in the current lump sum amount that is the equivalent of the future stream of outside funding that the County may receive over the next 20 years to help fund park improvements. Based on these assumptions, the appropriate credit for potential grant funding for parks is $37 for each new single-family home, or park service unit equivalent, as shown in Table 41. HÓC\INAÐIFSSeptember 19, 2006, Page 58 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Table 41 PARK GRANT FUNDING CREDIT Average Annual Grant Funding$216,900 Existing Park EDUs, 200577,264 Annual Funding per EDU$2.81 Present Value Factor (20 years @ 4.25%)13.29 Grant Funding Credit per EDU$37 Source: Average annual grant funding from Table 40; existing park EDUs from Table 31; discount rate for present value factor from Table As shown in Table 42, reducing the cost per service unit by the debt credit and anticipated grant funding per service unit leaves a net cost of $6,566 per EDU to maintain the existing level of service. Table 42 PARK NET COST PER SERVICE UNIT Total Park Replacement Cost per EDU$6,967 Debt Credit per EDU $329 Past Property Tax Credit per EDU$35 Grant Funding Credit per EDU$37 Net Park Cost per EDU $6,566 Source: Total park replacement cost per EDU from Table 35; debt credit per EDU from Table 36; past property tax credit per EDU f Table 39; grant funding credit per EDU from Table 41. HÓC\INAÐIFSSeptember 19, 2006, Page 59 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Maximum Fee Schedule Given the data, methodology and assumptions in this analysis, the maximum fees that can be adopted by HawaiÓi County are derived by multiplying the number of equivalent dwelling units (EDUs) represented by each dwelling unit type and hotel/motel room by t Table 43. The County has the option of charging single-family homes a flat rate per unit or a variab rate based on dwelling unit size. Table 43 PARK NET COST SCHEDULE EDUs/Cost/Net Cost/ Land UseUnitEDUUnit Less than 1,000 sq. ft.0.97$6,566$6,369 1,000 - 1,499 sq. ft. 1.03$6,566$6,763 1,499 - 1,999 sq. ft.1.07$6,566$7,026 2,000 - 2,999 sq. ft.1.13$6,566$7,420 3,000 - 3,999 sq. ft.1.20$6,566$7,879 4,000 sq. ft or more1.28$6,566$8,404 Single-Family (flat rate)1.00$6,566$6,566 Multi-Family0.79$6,566$5,187 Hotel/Motel0.47$6,566$3,086 Source: EDUs per unit from Table 30; net cost per EDU from Table 42. The CountyÔs Park Dedication Code (Chapter 8, HawaiÓi County Code) imposes a requirement for the dedication of five acres of park land for every 1,000 persons or payment of fees in-lieu of dedication. These requirements apply to the subdivision of land for residential purposes or the development of multi-family units. If this dedication requirement is maintained, credit against the park impact need to be provided for the value of land required to be dedicated since the impact fee calculation includes land costs. Capital Improvement Plan Funding of $140.4 million is proposed for park and recreation in CountyÔs 2005-06 to 2010-2011 capital improvements program (CIP). Impact fees may only be used for capacity-expanding improvements such as new parks and facili amenities or facilities to existing parks. A detailed breakdown of each project component cost was not available; consequently, the identification of eligible projects is preliminary and subject to verification. Eligible improvements account for $60.1 million of the total CIP costs. The current list of eligible improvements from the six-year CIP is shown in Table 44. Impact fee-eligible projects are currently planned for all of the proposed benefit districts. HÓC\INAÐIFSSeptember 19, 2006, Page 60 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Table 44 PARK CAPITAL IMPROVEMENT PROGRAM Proposed BenefitImpact Fee Judicial ProjectDistrictDistrictTotal CostEligible Spencer Beach Park ImprovementsS. Kohala1-Kohala$500,000$0 Kamehameha Park Grandstand RestorationN. Kohala1-Kohala$500,000$0 Waimea Regional Park DevelopmentS. Kohala1-Kohala$11,150,000$11,150,000 Waimea Trails and GreenwaysS. Kohala1-Kohala$2,300,000$2,300,000 Kohala Pool ImprovementsN. Kohala1-Kohala$250,000$0 Mahukona Beach Park ImprovementsN. Kohala1-Kohala$500,000$0 Hakalau Gym Structure Repairs and ImprovementsHamakua2-Hilo/Hamakua$250,000$0 Honokaa Park Track & Sports Fields ImprovementsHamakua2-Hilo/Hamakua$50,000$0 Reed's Bay Area Parks Restoration & ImprovementsS. Hilo2-Hilo/Hamakua$1,000,000$1,000,000 S. Hilo Baseyard Improvements & ModificationsS. Hilo2-Hilo/Hamakua$500,000$0 Lehia Beach Park DevelopmentS. HIlo2-Hilo/Hamakua$1,250,000$1,250,000 Honolii Beach Park Master PlanS. Hilo2-Hilo/Hamakua$1,150,000$1,150,000 Hilo Municipal Golf Course ImprovementsS. Hilo2-Hilo/Hamakua$1,750,000$0 New Waiakea Recreation Center FacilityS. Hilo2-Hilo/Hamakua$5,250,000$0 Hilo Bayfront Beach Park Master PlanS. Hilo2-Hilo/Hamakua$2,250,000$2,250,000 Alae Cemetary Expansion and ImprovementsS. Hilo2-Hilo/Hamakua$337,000$0 Pana'ewa Equestrian Center ImprovementsS. Hilo2-Hilo/Hamakua$350,000$0 Kahuku Park ImprovementsS. Hilo2-Hilo/Hamakua$500,000$0 Leleiwi Beach Park ImprovementsS. Hilo2-Hilo/Hamakua$500,000$0 Pana'ewa Rainforest Zoo ImprovementsS. Hilo2-Hilo/Hamakua$500,000$0 New Puna Gym & Park DevelopmentPuna3-Puna/KaÓu$8,250,000$8,250,000 Ahalanui/Pohoiki Bay Beach ParksPuna3-Puna/KaÓu$7,079,000$7,079,000 New HOVE Senior/Community Center FacilityKaÓu 3-Puna/KaÓu$1,500,000$1,500,000 Hookena Beach Park Road ImprovementsS. Kona4-N/S Kona$250,000$0 Konawaena Swimming Pool ImprovementsS. Kona4-N/S Kona$1,250,000$0 Alii Kai Subdivision New Park DevelopmentN. Kona4-N/S Kona$1,322,000$1,322,000 Kailua Park ImprovementsN. Kona4-N/S Kona$2,500,000$0 Kailua -Kona Senior CenterN. Kona4-N/S Kona$4,500,000$4,500,000 La'aloa Bay Beach Park/Magic Sands BeachN. Kona4-N/S Kona$2,078,000$2,078,000 West Hawai'I Regional Complex DevelopmentNA$15,000,000$15,000,000 Laupahoehoe Point Park ImprovementsNA$500,000$0 Laupahoehoe Pool ImprovementsNA$250,000$0 Punalu'u Beach Park ImprovementsNA$500,000$0 ADA ComplianceVarious$47,566,000$0 Repairs/Improvements to FacilitiesVarious$9,500,000$0 DWS Water Connection ComplianceVarious$450,000$0 Removal and/or Replacement of Hazardous FacilitiesVarious$1,000,000$0 Play Equipment Upgrade & ImprovementsVarious$4,000,000$0 Wastewater Disposal Systems UpgradeVarious$660,000$0 Lifeguard Towers/Stands UpgradesVarious$200,000$0 New Comfort Stations @ Various ParksVarious$1,250,000$1,250,000 Total$140,442,00$60,079,000 Source: County of HawaiÓi, Capital Budget and Six Year Capital Improvements Program, June 2005. HÓC\INAÐIFSSeptember 19, 2006, Page 61 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY this page intentionally left blank HÓC\INAÐIFSSeptember 19, 2006, Page 62 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY CHAPTER 9: FIRE/EMS The HawaiÓi County Fire Department provides fire and emergency m throughout the county. The CountyÔs existing fire station facilities are shown in Figure 7. The Fir Department headquarters are located in the County Building in Hilo and there are 14 regular fire stations, 18 volunteer fire stations and 2 Federal fire stations on the Big Island. The Kilauea Military Camp and Pohakuloa fire stations are Federal facilities. Kilauea Military Camp provides emergency medical services under an agreement with the County. The regular fire stations and three of the volunteer fire stations (Laupahoehoe, Pahala and NaÓalehu) provide 24-hour fire suppression and emergency medical services. The Waiakea and Kailua-Kona stations provide rescue services, the Kaumana and South Kohala stations provide hazardous waste response and the South Kohala station provides air medical services. The General Plan establishes a desired standard of fire stations within five miles of concentrated settlement areas and first response emerge minutes of concentrated settlement areas. Figure 7 FIRE STATION LOCATIONS HÓC\INAÐIFSSeptember 19, 2006, Page 63 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Assessment and Benefit Districts Similar to the road and park impact fee calculation, using a single county-wide service area is recommended for calculating the fire/EMS impact fees. This will schedule through the county. While fire-fighting apparatus and ambulances are generally dispatched from a station to calls within that stationÔs primary response area, these units may also respond to calls in neighboring response areas if needed. In addition, the headquarters and training facilities are centralized. Consequently, fire/EMS facilities constitute an interrelated system that provides servi reasons, most fire/EMS impact fees use a single jurisdiction-wide benefit district. However, based on discussions with County staff and the impact fee focus group consensus, the County fire/EMS impact fee benefit districts will follow the recommendation for benefit districts shown in Figure 2 (see page 18). As with the road and park benefit districts, the County could utilize up to 20 percent of all impact fee funds for county-wide projects such as improvements to central facilities or to improvements that provide benefit to more than one district. Service Unit Disparate types of development must be translated into a common the impact of new development on the demand for fire/rescue serv measurement is referred to as a Ñservice unit.Ò Service units create the link between the supply of fire capital facilities and the demand for such facilities generated by new development. The two most common methodologies used in calculating fire/EMS i serviceÒ approach and the Ñfunctional populationÒ approach. The calls-for-service approach uses historical data on emergency calls by land use type to make the connection between land use type and demand for fire facilities. However, since records based on the land use type where the call for service originates for fire calls are unavailable, an alternative approa An alternative approach for estimating the public safety service demands of various land use types is known as Ñfunctional population.Ò To a large extent, the demand for fire services is proportional to the presence of people. Functional population is analogous to the concept of Ñfull-time equivalentÒ employees. It represents the number of Ñfull-time equivalentÒ people present at the site of a land use, and it is used for the purpose of determining the impact of a pa fire facilities. The calculations of functional population for various land use types are presented in the Appendix D. Cost per Service Unit Fire/EMS impact fees are designed to charge new development the cost of providing the same level of service that is provided to existing development. The existing level of service for fire/EMS facilities is based on the replacement cost of existing facilities and equipment. The County owns facilities at 20 sites, including the Central Station. Some of the volunteer stations were built and are owned by the community in which they are located. For most stations, the County provides and owns the fire-fighting and EMS apparatus and equipment. HÓC\INAÐIFSSeptember 19, 2006, Page 64 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY The replacement cost of existing fire/EMS facilities can be determined based on recent construction cost data. The cost of construction for the two most recently-built stations, adjusted to current dollars, averages $331 per square foot, as shown in Table 45. Table 45 FIRE STATION CONSTRUCTION COST StationYearSq. Ft.Orig. CostAdj. Cost Cost /Sq. Ft. Keauhou19974,460$1,230,997$1,618,761$363 Waikoloa19984,768$1,102,187$1,426,230$299 Average Cost$331 Source: Recent construction project data from County of HawaiÓi Fire Department; cost adjusted to January 2006 using the change in the ENR Constructio The total value of existing fire/EMS facilities is based on the existing facility size and land valu value of the fire/EMS facility land was based on market value da combined replacement value of the existing fire department facilities, is estimated to be $30.93 million, as shown in Table 46. Table 46 EXISTING FIRE/EMS FACILITY COSTS StationBuildingLand BuildingTotal No.Station NameAcressq. ft. Cost Cost Costs 1 Central1.2110,752 $495,601$3,558,912$4,054,513 2 Waiakea0.925,475 $300,681$1,812,225$2,112,906 3 Kawailani0.583,700 $85,281$1,224,700$1,309,981 4 Kaumana0.377,372 $89,581$2,440,132$2,529,713 5 Keaau0.202,716 $142,715$898,996$1,041,711 6 Captain Cook0.333,350 $142,781$1,108,850$1,251,631 7 Kailua-Kona3.005,250 $221,082$1,737,750$1,958,832 8 Honokaa0.132,016 $326,881$667,296$994,177 9 Waimea0.688,250 $300,000$2,730,750$3,030,750 10 Pahoa0.412,700 $150,000$893,700$1,043,700 11 Pahala0.741,680 $135,881$556,080$691,961 11aa-Naalehu0.141,026 $136,517$339,606$476,123 12 Keauhou1.514,460 $227,464$1,476,260$1,703,724 14 S. Kohala2.154,578 $126,790$1,515,318$1,642,108 15 N. Kohala1.251,800 $209,481$595,800$805,281 16 Waikoloa3.004,768 $377,464$1,578,208$1,955,672 17 Laupahoehoe1.531,600 $46,681$529,600$576,281 18 Paradise Park1.002,137 $65,900$707,347$773,247 19 Volcano0.185,760 $100$1,906,560$1,906,660 20 Ocean View2.003,200 $12,900$1,059,200$1,072,100 Total Replacement Costs$3,593,781$27,337,290$30,931,071 Source: Building and land information from County of HawaiÓi Fire Department; building cost based on cost per square foot from Table 45. HÓC\INAÐIFSSeptember 19, 2006, Page 65 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY The estimated replacement cost of the Fire DepartmentÔs existing fire-fighting apparatus and other vehicles is summarized in Table 47. Table 47 EXISTING FIRE/EMS VEHICLE COST Type of VehicleNumberUnit CostTotal Cost Fire Engine/Pumper21$650,000$13,650,000 Tanker15$300,000$4,500,000 Aerial Platforms1$850,000$850,000 Ambulance24$150,000$3,600,000 Mini Pumper30$150,000$4,500,000 Light Rescue2$150,000$300,000 Brush Truck7$150,000$1,050,000 Utility Bus1$75,000$75,000 Utility Fuel Truck2$55,000$110,000 Trailer (Cargo)2$20,000$40,000 Trailer (Boat)2$7,000$14,000 Haz Mat Truck2$500,000$1,000,000 Boat w/motor2$70,000$140,000 Helicopter w/accessories2$1,750,000$3,500,000 Support Vehicle (Utility)53$35,000$1,855,000 Total$35,184,000 Source: Number of vehicles and replacement cost from HawaiÓi County Fir Department, March 24, 2006 e-mail. Replacement costs for the rest of the Fire DepartmentÔs equipment were determined from the CountyÔs fixed asset listings. This was done by adjusting the original cost for inflation using the Consumer Price Index. The CountyÔs inventory of Fire Department equipment on t equipment that can be classified as communications, emergency/fi on the original cost, the replacement cost for fire/EMS equipment is $5,530,000, as shown in Table 48. Table 48 EXISTING FIRE/EMS EQUIPMENT COST Replacement Type of EquipmentOriginal CostCost Communications Equipment$1,340,771$2,237,532 Emergency/Fire Equipment$2,045,423$2,530,800 Office Equipment$417,910$506,408 Other$137,364$255,542 Total$3,941,468$5,530,282 Source: Fixed asset listings from HawaiÓi County Fixed Asset Listing, O replacement cost based on U.S. Bureau of Labor Statistics, Consumer Price Index, U.S. City Average, All Items, All Urban Consumers (1982-84=100 and based o HÓC\INAÐIFSSeptember 19, 2006, Page 66 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY The cost per service unit based on the existing level of service can be determined by dividing the replacement cost of existing fire/EMS facilities by the existing number of public safety service units. As shown in Table 49, the replacement value of existing fire/EMS facilities and equipment is about $71.7 million. Dividing this by the existing equivalent dwelling units (EDUs) yields the cost per service unit of $767 per EDU. Table 49 FIRE/EMS COST PER SERVICE UNIT Fire Station Cost$30,931,071 Vehicle Cost$35,184,000 Equipment Cost$5,530,282 Total Replacement Cost$71,645,353 Existing EDUs93,463 Cost per EDU$767 Source: Fire/rescue facility cost from Table 46; vehicle cost from Table 47; equipment cost from Table 48; existing EDUs from Appencix E, Table ?. Net Cost per Service Unit A reduction of impact fees to provide a credit for future funding to be generated by new development is generally only required when there is outstanding debt on existing facilities that have been counted in the existing level of service. New development should not be required to pay for new fire/EMS facilities required to serve it through impact fees, while also having to pay for existing fire/EMS facilities through property tax or other payments used to retire outstanding debt. Fire Department-related debt issues generally provide funds for new facilities or major equipment purchases. An analysis of past bond issues shown in Appendix B indicates that currently the CountyÔs department is $8.1 million. As shown in Table 50, the CountyÔs current Fire Department debt results in a credit of $87 per service unit. Table 50 FIRE/EMS DEBT CREDIT PER SERVICE UNIT Total Outstanding Debt Principal$8,135,137 Fire Department EDUs93,463 Fire Debt Credit per EDU$87 Source: Total outstanding debt from Appendix B, Table 97; total fire de EDUs from Appendix D, Table 105. An additional credit is required in order to account for the portion of past property taxes from vacant land that have paid for capital facilities. This additional credit represents the value of the past five years of property taxes paid by vacant land for capital facilities funded through the general fund. Based on a review of the CountyÔs CIP status report, no capacity Department were funded directly from the general fund appropriations since 2001. All recent capacity- expanding fire/EMS projects were funded through the CountyÔs GO bonds. As shown in Table 51, the HÓC\INAÐIFSSeptember 19, 2006, Page 67 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY estimated annual principal and interest payments on the current over the past five years was $4.5 million. Table 51 FIRE/EMS GENERAL FUND CAPACITY EXPENDITURES, 2001-2005 Annual GO Bond Debt Service$24,921,138 Fire Department Share of Total Outstanding Debt3.6% Annual Fire Department Debt Service$897,161 Years5 Total Debt-Related Capacity Funding, 2000-2005$4,485,805 Source: Annual debt service based on 2004-05 debt service from HawaiÓi County, 2005-06 Annual Operating Budget, June 2006; fire department share of debt from Table 96. An analysis of budgetary and tax data indicates that vacant and agricultural properties within the County generate 32.5 percent of property tax revenues, and property taxes accounted for 66.5 percent of general fund revenues. Using these percentages, the credit for past property tax payments is $11 per EDU, as shown in Table 52. Table 52 FIRE/EMS PROPERTY TAX CREDIT Percent of General Fund from Property Taxes, FY 2005-0666.5% Percent of Property Taxes from Vacant/Ag. Land, 200632.5% Share of General Fund Revenue from Vacant/Ag. Land21.6% Total General Fund Fire/EMS Capacity Funding, 2000-2005$4,485,805 Vacant/Ag. Land Share of Fire/EMS Capital Cost, 2000-2005$969,078 Total Existing Fire/EMS Replacement Cost$71,645,353 Percent of Existing Cost Paid by Vacant/Ag. Land, 2000-20051.4% Fire/EMS Cost per EDU$767 Past Property Tax Credit per EDU$11 Source: Percent of general fund from property taxes from HawaiÓi County 2005-06 Annual Operating Budget, June 2006; percent of property taxes from undeveloped/agricult Real Property Tax Administrator, June 1, 2006; fire general fund Another factor that is often considered in determining fire/EMS impact fees is the degree to which outside funding has been used to cover a portion of the capital equipment and facility costs. While there is no guarantee that the past level of funding will be indicative of future outside funding support, to be conservative, the cost per service unit will be reduced to account for the likelihood that some gro related costs can be paid with Federal and State grants. Over t received an average of $830,732 annually in grants for Fire/EMS equipment, as summarized in Table 53. HÓC\INAÐIFSSeptember 19, 2006, Page 68 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Table 53 FIRE/EMS CAPITAL EQUIPMENT GRANTS, 2001 to 2005 GrantDescriptionYearValue U.S. Dept of Health & Human ServicesBio-terror trailers2001$60,000 U.S. Dept of Health & Human ServicesPediatric Manniquins2001$2,000 U.S. Dept of Homeland Security, FEMAPlymo-Vents2005$406,016 U.S. Dept of Homeland Security, FEMAMobile Live Burn Unit2005$301,000 U.S. Dept of Homeland Security, FEMATraining Eqpmt2002$152,948 U.S. Dept of Interior, National Park SvcVolcano Fire Engine Purchase2004$250,000 U.S. Dept of Interior, US Fish & WildlifePahala Volunteer Eqpt2005$10,000 U.S. Dept of Interior, US Fish & WildlifeTraining Eqpmt2002$5,000 U.S. Dept of TransportationLifting Bags2005$36,000 U.S. Dept of TransportationSpine Boards2004$10,163 U.S. Dept of TransportationJaws of Life Stn 3 & 42003$44,000 U.S. Dept of TransportationChild restraint seats2001$11,160 U.S. Dept of TransportationReciprocating saws2001$11,893 U.S. Dept of Homeland SecurityCommunications and Hazmat Eqpt2005$548,000 U.S. Dept of Homeland SecurityRescue Boat, Vehicles2004$722,160 U.S. Dept of Homeland SecurityHazmat Eqpt, Hazmat Truck2003$1,133,855 U.S. Dept of Homeland SecurityHazmat Eqpt 2002$449,467 Total$4,153,662 Average Annual Grant Funding$830,732 Source: HawaiÓi County Fire Department, February 11, 2006. As mentioned above, it may be reasonable to assume that the grant funding received in the past will continue in the future. Dividing the average annual grant funding by existing service units yield grant funding per service unit. Multiplying that by the present value factor results in the current lump sum amount that is the equivalent of the future stream of outside funding that the County may receive over the next 20 years to help fund Fire Department facilities and equipment. Based on these assumptions, the appropriate credit for potential grant funding is $120 for each service unit, as shown in Table 54. Table 54 FIRE/EMS GRANT FUNDING CREDIT Average Annual Grant Funding$830,732 Fire Department EDUs93,463 Annual Funding per EDU$9 Present Value Factor (20 years @ 4.25%)13.29 Grant Funding Credit per EDU$120 Source: Average annual grant funding from Table 53; total fire department EDUs from Appendix D, Table 105 ; discount rate for present value factor f HÓC\INAÐIFSSeptember 19, 2006, Page 69 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY As shown in Table 55, reducing the cost per service unit by the debt credit and anticipated grant funding per service unit leaves a net cost of $549 per EDU to maintain the existing level of service for the CountyÔs fire and emergency medical service. Table 55 FIRE/EMS NET COST PER SERVICE UNIT Total Replacement Cost per EDU$767 Debt Credit per EDU$87 Past Property Tax Credit per EDU$11 Grant Funding Credit per EDU$120 Net Cost per EDU$549 Source: Total replacement cost per EDU from Table 49; outstanding capit debt per EDU from Table 50; property tax credit from Table 52, g funding credit per EDU from Table 54. Maximum Fee Schedule The maximum potential fire/rescue impact fees, based on the information, analysis and assumptions described in this report, are calculated in Table 56. Table 56 FIRE/EMS NET COST SCHEDULE EDUs/Net Cost/Net Cost/ Land UseUnitUnitEDUUnit Less than 1,000 sq. ft.Dwelling0.97$549$533 1,000 - 1,499 sq. ft.Dwelling1.03$549$566 1,499 - 1,999 sq. ft.Dwelling1.06$549$582 2,000 - 2,999 sq. ft.Dwelling1.13$549$621 3,000 - 3,999 sq. ft.Dwelling1.20$549$659 4,000 sq. ft. or moreDwelling1.28$549$703 Single-Family (flat rate)Dwelling1.00$549$549 Multi-FamilyDwelling0.78$549$429 Hotel/MotelRoom0.47$549$258 Retail/Commercial1000 sq. ft.1.51$549$830 Office/Institutional1000 sq. ft.0.85$549$467 Industrial1000 sq. ft.0.53$549$291 Warehouse1000 sq. ft.0.34$549$187 Source; EDUs per unit from Appendix D, Table 105; net cost per EDU from HÓC\INAÐIFSSeptember 19, 2006, Page 70 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Capital Improvement Plan Funding of $49.5 million is proposed for fire/EMS infrastructure improvements in the CountyÔs 2005- 06 to 2010-2011 capital improvements program (CIP), plus projects anticipated to be added to next yearÔs CIP. Impact fees may only be used for capacity-expanding improvements for new fire stations or expansions and additional equipment. Some portion of station replacement costs may be eligible if the new station is larger or in some other way provides more capacity to serve growth. However, in most cases the planning for the replacement stations is not far enough advanced to identify the size of the new station. Based on available information, eligible improvements account for $23.7 million of the total planned project costs. The current list of planned eligible improvements is shown in Table 57. Additional eligible improvement will need to be identified for the proposed 1-N/S Kohala benefit district before impact fees are implemented for this area. Table 57 FIRE/EMS CAPITAL IMPROVEMENT PROGRAM Proposed BenefitImpact Judicial ProjectDistrictDistrictTotal Cost Fee Eligible Honokaa Fire Station (replacement)Hamakua2-Hilo/Hamakua$2,250,000$0 Keaau Fire Station (replacement)S Hilo2-Hilo/Hamakua$3,750,000$0 Central Fire Station (replacement)S Hilo2-Hilo/Hamakua$3,750,000$0 Paauilo Fire StationHamakua2-Hilo/Hamakua$1,800,000$1,800,000 Kawailani Fire Station (replacement)S Hilo2-Hilo/Hamakua$4,600,000$0 Pahoa Fire Staton (replacement)*Puna3-Puna/KaÓu$3,500,000$2,360,000 Naalehu Fire Station (replacement)KaÓu3-Puna/KaÓu$2,250,000$0 Volcano Fire Station (replacement)KaÓu3-Puna/KaÓu$2,250,000$0 Kalaoa Fire StationN Kona4-N/S Kona$2,350,000$2,350,000 Captain Cook Fire Station (replacement)S Kona4-N/S Kona$1,150,000$0 Kailua Fire Station AnnexN Kona4-N/S Kona$2,300,000$2,300,000 Koloko-Honokohau Area Fire StationN Kona4-N/S Kona$4,600,000$4,600,000 Kona Makai Fire Station (replacement)N Kona4-N/S Kona$4,600,000$0 Fire Fighter Training FacilityS HiloCounty-Wide$1,800,000$1,800,000 Fire Admin. and Support ComplexS HiloCounty-Wide$8,500,000$8,500,000 Total$49,450,000$23,710,000 * new station will be larger than existing station (8,289 versus 2,700 sq. ft.)--share attributable to larger size station is eligible. Size data provided by Fire Department on August 10, 2006. Source: County of HawaiÓi, Capital Budget and Six Year Capital Improvements Program, June 2006; additional projects from Fire Department, August 7, 2006. HÓC\INAÐIFSSeptember 19, 2006, Page 71 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY this page intentionally left blank HÓC\INAÐIFSSeptember 19, 2006, Page 72 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY CHAPTER 10: POLICE Each of the eight districts is served by a main police station. There are also four s combined police headquarters for Hilo and the County is located in the Hilo Public Safety Building on Kaiolani Street. The location of the existing police stations and substations are shown in Figure 8. Figure 8 POLICE STATION LOCATIONS Assessment and Benefit Districts As with fire/EMS fees, most police impact fees are assessed at the jurisdiction level. Central facilities serve the entire island, and officers may patrol or respond to calls beyond their stationÔs primary response area. The four benefit districts proposed for fire/EMS police impact fees (see Figure 2 on page 18). However, up to 2 could be used for county-wide projects or projects in neighboring districts that provide benefit to the district in which the fees are collected. HÓC\INAÐIFSSeptember 19, 2006, Page 73 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Service Unit The recommended approach for police impact fees is to use the se unitsÒ or EDUsÐdescribed in Appendix D and also utilized for fire/EMS facilities. Cost per Service Unit The cost per service unit based on the existing level of service can be determined by dividing the replacement cost of existing police and law enforcement facilities, equipment, and vehicles by the existing number of public safety service units. The Police Department owns each of the eight district police stations, including the Public Safety Building in Hilo, and three of the sub-station facilities. The Ocean View Substation and the ten mini police stations are all located in leased or shared facilities with other County departments. In addition, the police departmentÔs 12 radio sites are all located on either leased land or co-located on land with other County facilities. Leased and co-located facilities and radio sites are not included in the analysis of facility costs. The total value of existing County-owned police facilities is based on the existing facility size and recent construction costs for the East HawaiÓi Detention Facility at the Public Safety Complex of $450 per square foot. The value of the police facility land is available based on the land purchased for the detention facility in Hilo in 2001. The combined replacement value of the existing police facilities, is estimated to be $71.74 million, as shown in Table 58. Table 58 EXISTING POLICE FACILITY REPLACEMENT COSTS BuildingLand BuildingTotal NameAcressq. ft. Cost Cost Costs Public Safety Complex7.94 88,364$2,380,799$39,763,800$42,144,599 Laupahoehoe1.56 5,248$59,508$2,361,600$2,421,108 Honokaa2.39 5,280$91,514$2,376,000$2,467,514 South Kohala14.80 6,048$566,109$2,721,600$3,287,709 Maunalani Sub-Station2.16 255$82,523$114,750$197,273 North Kohala2.50 3,150$95,645$1,417,500$1,513,145 Kona10.00 21,312$382,580$9,590,400$9,972,980 Captain Cook Sub-Station4.01 10,000$153,231$4,500,000$4,653,231 KaÓu5.00 3,864$191,290$1,738,800$1,930,090 Puna0.39 5,900$14,934$2,655,000$2,669,934 Pahoa Sub-Station0.29 1,056$10,940$475,200$486,140 $4,029,073$67,714,650$71,743,723 Source: Police facility land and building information from HawaiÓi Police Department Tax Map Key; Public Safety Complex land cost based on 2001 land purchase in Hilo, and police facility replacet cost based on East HawaiÓi Detention Facility (Hilo) cost of $450 per square foot in 2002, both provided by Hawaii Police Departmeage park land cost per acre. The Police DepartmentÔs current inventory of law enforcement vehicles and major capital equipment is listed in Table 59. The County police department does not maintain a fleet of patrol vehicles; instead, HÓC\INAÐIFSSeptember 19, 2006, Page 74 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY the county reimburses patrol officers for the use of their private vehicle and provides vehicle equipment. Based on current cost to purchase new equipment, the total replacement cost for all County-owned vehicles, subsidized vehicle equipment and other major capital e Table 59 POLICE VEHICLE AND MAJOR CAPITAL EQUIPMENT COST Vehicle UnitsCost/UnitTotal Cost Support Vehicles12$40,000$480,000 Prisoner Transport Van2$42,000$84,000 Special Response Vehicle1$330,000$330,000 Gas Chomatograph1$90,000$90,000 Infrared System1$79,600$79,600 Dictation System1$174,000$174,000 Digital Recording System1$90,000$90,000 Emergency Generator2$130,000$260,000 Patrol Vehicle Equipment373$2,785$1,038,805 Total Replacement Cost$2,626,405 Source: Number of vehicles provided by HawaiÓi County Police Chief, Sept from Police Chief, August 23, and September 15, 2005. Dividing the total law enforcement replacement costs by the existing equivalent dwelling units (EDUs) yields the cost per service unit. The cost per service unit is based on the existing level of service; as shown in Table 60, the cost per service unit is $796 per EDU. Table 60 POLICE COST PER SERVICE UNIT Police Department Vehicles and Capital Equipment$2,626,405 Police Station Facilities$71,743,723 Total, Existing Replacement Cost$74,370,128 Existing EDUs, 200593,463 Total Cost per EDU$796 Source: Cost of vehicles and equipment from Table 59; police facilities cost from Table 58; existing EDUs from Appendix D, Table 105. Net Cost per Service Unit Over the last five years, the County has received an average of $522,100 annually in Federal grants for major police department equipment and buildings, as summarized i HÓC\INAÐIFSSeptember 19, 2006, Page 75 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Table 61 POLICE GRANT FUNDING, 2000 to 2005 Item Year Amount East HawaiÓi Detention Facility (Block Grant Funds)2002$2,618,801 Special Response Team Command Vehicle2004$330,889 4 x 4 Ford Van2004$33,172 Ford Van2005$30,000 Chevrolet MSTR2002$93,707 4 x 4 Ford2005$25,800 Total Grant Funding 2000-2005$3,132,369 Average Annual Grant Funding $522,100 Source: HawaiÓi County Police Department Chief, August 23 and September It is reasonable to assume that the grant funding received per police department service unit in the past will continue in the future. Dividing the average annual grant funding by existing service units yields annual funding per service unit. Multiplying that by the present value factor results in the curren sum amount that is the equivalent of the future stream of outside funding that the County may receive over the next 20 years to help fund police equipment and improvements. Based on these assumptions, the appropriate credit for potential grant funding for the Police Department is $74 for each new single- family home, or police service unit equivalent, as shown in Tabl Table 62 POLICE GRANT FUNDING CREDIT Average Annual Grant Funding$522,100 Existing Police EDUs, 200593,463 Annual Funding per EDU$5.59 Present Value Factor (20 years @ 4.25%)13.29 Grant Funding Credit per EDU$74 Source: Average annual grant funding from Table 61; existing police department EDUs from Appendix D, Table 105; discount rate for present value factor from Table 23. As with other facility impact fees, a reduction of impact fees to provide a credit for future funding to be generated by new development is required for outstanding debt on existing facilities that have been counted in the existing level of service. An analysis of past bond issues indicates that currently the CountyÔs outstanding debt related to the police department is $5.5 million. As shown in Table 63, the Police DepartmentÔs current outstanding debt results in a debt credit of $59 per service unit. HÓC\INAÐIFSSeptember 19, 2006, Page 76 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Table 63 POLICE DEBT CREDIT Outstanding Police Department Related Debt$5,532,926 Existing EDUs93,463 Debt Credit per EDU$59 Source: Police department debt from Appendix B, Table 97; existing EDUs from Appendix D, Table 105. State law requires a credit for property taxes paid by vacant land during the five years before it is developed and used for capacity-expanding police facility improv CountyÔs CIP status report, no capacity-expanding projects for the Police Department were funded directly from the general fund appropriations since 2001. All recent capacity-expanding police projects were funded through the CountyÔs GO bonds. As shown in Table 64, the estimated annual principal and interest payments on the current outstanding debt for the police department over the past five years was $2.5 million. Table 64 POLICE GENERAL FUND CAPACITY EXPENDITURES, 2001-2005 Annual GO Bond Debt Service$24,921,138 Police Share of Total Outstanding Debt2.0% Annual Police Department Debt Service$498,423 Years5 Total Debt-Related Capacity Funding, 2000-2005$2,492,114 Source: Annual debt service based on 2004-05 debt service from HawaiÓi County, 2005-06 Annual Operating Budget, June 2006; police department share of debt from Table 95. An analysis of budgetary and tax data indicates that vacant and agricultural properties within the County generate 32.5 percent of property tax revenues, and property taxes accounted for 66.5 percent of general fund revenues. Using these percentages, the credit for past pro shown in Table 65. HÓC\INAÐIFSSeptember 19, 2006, Page 77 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Table 65 POLICE PAST PROPERTY TAX CREDIT Percent of General Fund from Property Taxes, FY 2005-0666.5% Percent of Property Taxes from Vacant/Ag. Land, 200632.5% Percent of Credit for Past Property Tax Payments21.6% Total General Fund Capacity Funding, 2000-2005$2,492,114 Net Vacant/Ag. Land Share of Past Capital Cost$538,377 Existing Police EDUs93,463 Past Property Tax Credit per EDU$5.76 Source: Percent of general fund from property taxes from HawaiÓi County 2005-06 Annual Operating Budget, June 2006; percent of property taxes from undeveloped/agricult Real Property Tax Administrator, June 1, 2006; police department Table 64; police EDUs from Appendix D, Table 105. As shown in Table 66, reducing the cost per service unit by the debt credit, property tax credit and anticipated grant funding per service unit leaves a net cost of level of service. Table 66 POLICE NET COST PER SERVICE UNIT Total Police Replacement Cost per EDU$796 Debt Credit per EDU$59 Past Property Tax Credit per EDU$6 Grant Funding Credit per EDU$74 Net Police Cost per EDU $657 Source: Total police replacement cost per EDU from Table 60; debt credit per EDU from Table 63; past property tax credit from Tabl grant funding credit per EDU from Table 62. HÓC\INAÐIFSSeptember 19, 2006, Page 78 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Maximum Fee Schedule The maximum potential police department impact fees, based on th assumptions described in this report, are calculated in Table 67 Table 67 POLICE NET COST SCHEDULE EDUs/Net Cost/Net Cost/ Land UseUnitUnitEDUUnit Less than 1,000 sq. ft.Dwelling0.97$657$637 1,000 - 1,499 sq. ft.Dwelling1.03$657$677 1,500 - 1,999 sq. ft.Dwelling1.06$657$696 2,000 - 2,999 sq. ft.Dwelling1.13$657$742 3,000 - 3,999 sq. ft.Dwelling1.20$657$788 4,000 sq. ft. or moreDwelling1.28$657$841 Single-Family (flat rate)Dwelling1.00$657$657 Multi-FamilyDwelling0.78$657$512 Hotel/MotelRoom0.47$657$309 Retail/Commercial1000 sq. ft.1.51$657$992 Office/Institutional1000 sq. ft.0.85$657$558 Industrial1000 sq. ft.0.53$657$348 Warehouse1000 sq. ft.0.34$657$223 Source; EDUs per unit from Appendix D, Table 105; net cost per EDU from Capital Improvement Plan Funding of $72.2 million is proposed for police infrastructure improvements in the CountyÔs 2005-06 to 2010-2011 capital improvements program (CIP). Impact fees may only be used for capacity- expanding improvements such as new police stations or enhancemen equipment that provide capabilities beyond the current level of service. A detailed breakdown of each project component cost was not available; consequently, the identification of eligible projects is preliminary and subject to verification. Eligible improvements account for $13.8 million of the total CIP costs. The current list of eligible improvements from the six-y HÓC\INAÐIFSSeptember 19, 2006, Page 79 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Table 68 POLICE CAPITAL IMPROVEMENT PROGRAM Proposed BenefitTotal Impact Fee Eligible Judicial ProjectDistrictDistrictCost S. Kohala Police Station Parking Lot ExpansionS Kohala1-N/S Kohala$25,000$25,000 S. Kohala Heating and Cooling ImprovementS Kohala1-N/S Kohala$68,000 Kalaoa SubstationHamakua2-Hilo/Hamakua$50,000$50,000 Pahoa Police SubstationS. Hilo2-Hilo/Hamakua$2,685,000$2,685,000 Public Safety ComplexHilo2-Hilo/Hamakua$1,300,000$1,300,000 Security Fencing for Public Safety ComplexHilo2-Hilo/Hamakua$125,000$125,000 District Holding Cell ImprovementsHilo2-Hilo/Hamakua$312,000 Public Safety Complex Indoor RangeHilo2-Hilo/Hamakua$150,000$150,000 Police Records RenovationHilo2-Hilo/Hamakua$35,000 Puna Police StationPuna3-Puna/KaÓu$3,685,000$3,685,000 Kealakehe Refueling Station UpgradeS. Kona4-N/S Kona$300,000 Captain Cook StationS Kona4-N/S Kona$3,685,000$3,685,000 Kona Evidence WarehouseN Kona4-N/S Kona$130,000$130,000 Renovation of District StationsVariousVarious$150,000 700 Megahertz SystemVariousVarious$21,000,000 700 Megahertz ConversionVariousVarious$23,040,000 Microwave relocation/renovationVariousVarious$13,610,000 Data/Information Transmission SystemVariousVarious$2,000,000$2,000,000 Total$72,207,000$13,760,000 Source: County of HawaiÓi, Capital Budget and Six Year HÓC\INAÐIFSSeptember 19, 2006, Page 80 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY CHAPTER 11: SOLID WASTE The County currently has two landfill sites: the sanitary landfill at PuÓuanahulu on the west side of the island and the unlined landfill in Hilo on the east side of the island. There are 21 solid waste transfer sites, like the one pictured at right, situated throughout the island. The locations of the landfills and solid waste transfer stations are shown in Figure 9. Residents can drop off their household solid waste for free at the transfer stations. However, some residents pay private haulers to pick up their garbage. Commercial businesses and private haulers are required to take their solid waste to the landfill, where they are charged a tipping fee. Commercially-hauled rubbish accounts for 61 percent of the waste entering the landfill, while the remaining 39 percent is household waste from transfer stations. Tipping fees account for 35 percent of revenue for the operation of the Solid Waste Division, while the remainder of the DivisionÔs budget comes from the general fund. Figure 9 LANDFILL/TRANSFER STATION LOCATIONS HÓC\INAÐIFSSeptember 19, 2006, Page 81 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Faced with the possible closure of the Hilo solid waste facility 11 waste disposal in its waste management plan. The waste management plan concluded that the County has enough capacity at the PuÓuanahulu landfill to accommodate t entire county for 35 to 50 years and that an additional landfill would not be needed in the near future. The report emphasized the recovery of recyclable materials and w education and improved facilities. Both the waste management pl construction of two new waste transfer stations; however, County staff indicated that additional tra facilities are unlikely. The use of impact fee revenue is restricted to projects that add capacity. It is unknown what additional capacity expansion activity is planned beyond the construction of additional residential waste transfer facilities already programmed in the CIP. Improvements to existing sites may not be eligible for impact fee funding if they do not increase the capacity of the transfer facility. Before implementing a solid waste impact fee the County should determine if there are sufficient capacity-enhancing needs for solid waste, or if the capacity of the existing facilities are adequate to serve planned growth. Assessment and Benefit Districts Given the likelihood that the county will eventually be served b stations and landfill will operate as one interconnected system for the entire island. Consequently, the fees should be calculated county-wide. However, the County may desire to divide the county into the four benefit districts recommended for the other facilities (see Figure 2 on page 18). It is recommended that the County should earmark only 60 percent of the funds collected in each district to be spent within that district, with the remaining 40 percent available to be used in any benefit district or for county-wide functions such as landfill improvements. This percentage approximates the relative replacement costs of transfer stations versus landfill and vehicles. Service Unit HawaiÓi County does not provide residential or commercial waste collection services. According to the CountyÔs Solid Waste Division, private companies haul approximately 61 percent of the waste and pay 12 a tipping fee to dump the waste at the CountyÔs landfill sites. The remaining 39 percent is self-hauled waste taken to the CountyÔs transfer stations, which are provide Approximately 87 percent of all single-family households self-haul rubbish to one of the islands 21 transfer stations. Since the County charges commercial customers for the solid waste service, the impact fee for solid waste should apply only to residential land uses t The total number of service units utilized for calculation of the solid waste impact fee only include single-family detached units. In addition, the service units are adjusted to reflect the proportion of households that currently utilize the transfer stations rather than contract with a private hauler. As shown in Table 69, for purposes of calculating the impact fee, the estimated total solid waste residential EDUs is 51,132. 11 Harding ESE, Update to the Integrated Solid Waste Management Plan for the Cou, December 2002 12 Department of Environmental Management, Solid Waste Division, March 10, 2006 memorandum HÓC\INAÐIFSSeptember 19, 2006, Page 82 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Table 69 EXISTING SOLID WASTE SERVICE UNITS Single-Family Detached Units58,772 Transfer Station Utilization Rate87% Total Solid Waste EDUs51,132 Source: Existing units from Table 98 in Appendix C; EDUs per unit from Table 30; transfer station utilization rate from Department of Environmental Management Solid Waste Division, March 10, 2006 memorandum. Cost Per Service Unit The CountyÔs existing solid waste capital equipment and faciliti used to determine the cost per service unit. The County provide residents to discard their solid waste. The total estimated replacement value of the CountyÔs 21 solid waste facilities is shown in Table 70. The Keauhou facility was the most recently constructed transfer station; the transfer station improvement were constructed in 1999 at a cost of approximately $550,000; adjusted for increased construction costs, the current replacement cost for each transfer station would be approximately $698,000. As shown in Table 70, based on the m value of the transfer facilities is $14.8 million. The replacement cost does not include the value since land value and property information for the transfer facility sites are unavailable. Table 70 SOLID WASTE TRANSFER STATION COST FacilityYearOriginal CostCCIAdj. Cost Transfer Station Unit Cost1999$554,2981.271$705,000 Total Sites21 Total$14,805,000 Source: HawaiÓi County Fixed asset by fund, October 2005; original const by Engineering News-Record Construction Cost Index from year of acquisition to June 2006. As previously mentioned, HawaiÓi County has two landfill sites; however, only the West HawaiÓi landfill has available capacity. The West HawaiÓi landfill (PuÓuanahulu) is located on land that was provided to the County by the State of HawaiÓi and is operated by County personnel with management assistance from Waste Management of HawaiÓi, Inc. (WMI). WMI is responsibl development of landfill cells, environmental monitoring of the facility, and closure and post-closure care of the facility. The facility has sufficient capacity for an es Most capacity-expanding investments at the West landfill, such as the construction of new cells, are undertaken by Waste Management as part of the operating contract fees. Nonetheless, the County has funded several major improvements over the past 10 years; the value of the identifiable capacity-related improvements to the site are shown in Table 71. HÓC\INAÐIFSSeptember 19, 2006, Page 83 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Table 71 SOLID WASTE LANDFILL COST FacilityYearOriginal CostCCIAdj. Cost West Hawaii Landfill1997$4,805,4981.320$6,343,257 West Hawaii Landfill1995$4,499,7911.400$6,299,707 Total$9,305,289$12,642,965 Percent Attributable to Residential39.0% Total$4,930,756 Source: HawaiÓi County Fixed asset by fund, October 2005; original const by ENR CCI from year of acquisition to January 2005. Table 72 shows the inventory of solid waste equipment owned by the County. Some of the CountyÔs solid waste vehicles are financed with capital leases; these vehicles were omitted from the inventory since there is no information regarding the outstanding payments on th landfill costs, the total value of the equipment has been adjusted to account for the residential share of solid waste generation. Table 72 SOLID WASTE EQUIPMENT COST Equipment TypeUnitsUnit CostTotal Cost R/TR38$93,000$3,534,000 Support Vehicles34$29,000$986,000 P/B TR11$117,000$1,287,000 Tractors5$100,000$500,000 Dump Truck4$54,000$216,000 Wilkens TLR4$99,000$396,000 Backhoe3$62,000$186,000 Cat Hauler2$365,000$730,000 B/Lowboy1$100,000$100,000 Cat Loader1$112,000$112,000 Subtotal$8,047,000 Percent Attributable to Residential39.0% Total$3,138,330 Source: Equipment type and quantity derived from HawaiÓi County Fixed a October 2005; average unit cost based on original purchase price adjusted by U.S. Bureau of Labor Statistics, Consumer Price Inde Items, All Urban Consumers (1982-84=100 and based on April 2006 equipment asset value adjustment based on amount attributable to residential customers. As shown in Table 73, the replacement value for the CountyÔs existing residential solid waste facilities, equipment and vehicle fleet is an estimated $22.87 million. The full value of the transfer stations are included; however, only the value of the landfill facility that is attributed to residential utilizing the transfer stations is included, since the tipping fees from commercial haulers provide funds for the landfill facility. Dividing the cost of existing capital by the solid waste service unit population of the County results in a cost per residential EDU of $447. HÓC\INAÐIFSSeptember 19, 2006, Page 84 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Table 73 SOLID WASTE COST PER SERVICE UNIT Transfer Station Cost$14,805,000 Landfill Cost$4,930,756 Solid Waste Equipment Cost$3,138,330 Total Replacement Cost$22,874,086 Solid Waste EDUs51,132 Cost per EDU$447 Source: Transfer station costs from Table 70; landfill cost from Table 71 adjusted by 39% based on share of facility attributable to nonresidential customers. solid waste equipment cost from Table 72; solid waste EDUs from Table 69. Net Cost per Service Unit A reduction of impact fees to provide a credit for future funding to be generated by new development is required for outstanding debt and capital leases for solid waste equipment and facilities. As shown in Table 74, the County has $12.3 million in outstanding debt related to solid waste facilities. However, approximately $5.7 million is related to residential services by allocating one-half of the debt for t landfill facilities to the residential customers. Table 74 SOLID WASTE OUTSTANDING DEBT ALLOCATION Original Issue TransferRes. ShareCurrent Residential Debt IssueLandfill Station of Debt SW DebtSW Debt 1993$18,200,000$35,00039.1% $9,497,250$3,715,047 1999a$70,000$1,000,00096.0% $952,560$914,547 2004b$370,000$694,74578.8% $605,895$477,460 Total$18,640,000$1,729,74544.2% $11,055,705$5,107,054 Unknown44.2% $1,232,949$544,716 Total Residential Solid Waste Debt$12,288,654$5,651,770 Source: Original debt issue data from HawaiÓi County Finance Department; residential share of debt based on 39% allocation of landfill-related debt and 100% of transfer station debt for each issue; current outstanding solid waste and unknown debt from Appendix B, Table 97; unknown debt allocated to residential customers based on average residential share of total outstanding debt. Deducting the outstanding debt from the total available replacement cost and then dividing the existing service units yields the net cost per service unit, as shown in HÓC\INAÐIFSSeptember 19, 2006, Page 85 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Table 75 SOLID WASTE DEBT CREDIT PER SERVICE UNIT Outstanding Debt$5,651,770 Residential EDUs51,132 Debt Credit per EDU$111 Source: Outstanding debt from Table 74; existing EDUs from Table 69. Based on a review of the CountyÔs CIP status report, no capacity-expanding projects for the solid waste facilities were funded directly from the general fund appropriations since 2001. All recent capacity- expanding solid waste projects were funded through the CountyÔs GO bonds. As shown in Table 76, the estimated annual principal and interest payments on the curr over the past five years was $4.3 million. Table 76 SOLID WASTE GENERAL FUND CAPACITY EXPENDITURES, 2001-2005 Annual GO Bond Debt Service$24,921,138 Residential Share of Solid Waste Debt Service44.2% Solid Waste Share of Total Outstanding Debt7.8% Annual Debt Service$859,181 Years5 Total Debt-Related Capacity Funding, 2000-2005$4,295,906 Source: Annual debt service based on 2004-05 debt service from HawaiÓi County, 2005-06 Annual Operating Budget, June 2006; residential share of solid waste debt service from share of debt from Table 96. An analysis of budgetary and tax data indicates that vacant and agricultural properties within the County generate 32.5 percent of property tax revenues, and property taxes accounted for 66.5 percent of general fund revenues. Using these percentages, the credit for past property tax payments is $18.14 per EDU, as shown in Table 77. Table 77 SOLID WASTE PAST PROPERTY TAX CREDIT Percent of General Fund from Property Taxes, FY 2005-0666.5% Percent of Property Taxes from Vacant/Ag. Land, 200632.5% Percent of Solid Waste Credit for Past Property Tax Payments21.6 Total General Fund Capacity Funding, 2000-2005$4,293,958 Net Vacant/Ag. Land Share of Past Capital Cost$927,633 Residential EDUs51,132 Past Property Tax Credit per EDU$18.14 Source: Percent of general fund from property taxes from HawaiÓi County 2005-06 Annual Operating Budget, June 2006; percent of property taxes from undeveloped/agricult Real Property Tax Administrator, June 1, 2006; solid waste gener 76;existing EDUs from Table 69. HÓC\INAÐIFSSeptember 19, 2006, Page 86 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Over the last five years, the County has received an average of $291,300 annually in Federal and State grants for capacity-related enhancement project for solid waste facilities, as summarized in Table 78. Table 78 SOLID WASTE GRANT FUNDING, 2000 to 2005 GranteeItemYear Amount EPARecycling center planning and development for Keaau2002$400,000 EPARecycling center for Waimea planning and design2004$397,600 CBDGRepair and enhancement of five transfer stations2004$250,000 StateDevelopment of 8 container deposit centers at transfer stations2004$150,000 StateDevelopment of 10 container deposit centers at transfer stations2005$550,000 Total Grant Funding 2000-2005$1,747,600 Average Annual Grant Funding $291,300 Source: HawaiÓi County Department of Environmental Management Director, March 10, 2006 memo. It may be reasonable to assume that the grant funding received per solid waste service unit in the past will continue in the future. Dividing the average annual grant funding by existing service units yields annual funding per service unit. Multiplying that by the present value factor results in the current lump sum amount that is the equivalent of the future stream of outside funding that the County may receive over the next 20 years to help fund solid waste collection facilities. Based on these assumptions, the appropriate credit for potential grant funding for the solid waste division is $76 for family home, or solid waste service unit equivalent, as shown in Table 79 SOLID WASTE GRANT FUNDING CREDIT Average Annual Grant Funding$291,300 Existing Solid Waste EDUs, 200551,132 Annual Funding per EDU$5.70 Present Value Factor (20 years @ 4.25%)13.29 Grant Funding Credit per EDU$76 Source: Average annual grant funding from Table 78; existing EDUs from Table 69; discount rate for present value factor from Table As shown in Table 80, reducing the cost per service unit by the debt credit and property tax credit a net cost of $242 per EDU to maintain the existing level of ser HÓC\INAÐIFSSeptember 19, 2006, Page 87 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Table 80 SOLID WASTE NET COST PER SERVICE UNIT Total Replacement Cost per EDU$447 Debt Credit per EDU$111 Past Property Tax Credit per EDU$18 Grant Funding Credit per EDU$76 Net Solid Waste Cost per EDU $242 Source: Replacement cost per EDU from Table 73; outstanding debt per EDU from Table 75; past property tax credit per EDU from Tab grant funding credit from Table 79. Maximum Fee Schedule The maximum potential solid waste impact fees, based on the information, analysis and assumptions described in this report, are calculated in Table 81. The solid waste fee only applies to single-family residential properties that utilize the self-haul transfer stati Table 81 SOLID WASTE NET COST SCHEDULE Net Cost/Net Cost/ Housing TypeEDUs/UnitEDUUnit Less than 1,000 sq. ft.0.97$242$235 1,000 - 1,499 sq. ft.1.03$242$250 1,500 - 1,999 sq. ft.1.06$242$257 2,000 - 2,999 sq. ft.1.13$242$274 3,000 - 3,999 sq. ft.1.20$242$291 4,000 sq. ft. or more1.28$242$310 Single-Family (flat rate)1.00$242$242 Source: EDUs per unit from Table 69; net cost per EDU from Table 80. Capital Improvement Plan Funding of $44.4 million is proposed for solid waste infrastructure improvements in the CountyÔs 2005- 06 to 2010-2011 capital improvements program (CIP). Impact fees may only be used for capacity- expanding improvements for facilities or equipment that expand the current capacity of solid waste collection or potentially for recycling activities that reduce the volume of solid waste entering the CountyÔs landfill facility. A detailed breakdown of each project component cost was not available; consequently, the identification of eligible projects is preliminary and subject to verification. Eligible improvements account for $16.4 million of the total CIP costs. The current list of eligible improvements from the six-year CIP and County staff is shown in Table 93. Eligible projects should be identified for 4-N/S Kona benefit district prior to implement HÓC\INAÐIFSSeptember 19, 2006, Page 88 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Table 82 SOLID WASTE CAPITAL IMPROVEMENT PROGRAM Proposed BenefitImpact Fee Judicial ProjectDistrictDistrictTotal CostEligible Green Waste FacilityS Kohala1-N/S Kohala$1,500,000$1,500,000 Equipment Maintenance FacilityS Hilo2-Hilo/Hamakua$7,900,000 Hilo Scrap Metal Salvage FacilityS Hilo2-Hilo/Hamakua$1,550,000$1,550,000 Hilo Scrap Metal Yard RemediationS Hilo2-Hilo/Hamakua$1,650,000 Hilo Baseyard FacilityS Hilo2-Hilo/Hamakua$825,000$825,000 Waiea Transfer StationKaÓu3-Puna/KaÓu$50,000$50,000 Kona Scrap Metal Yard RemediationN Kona4-N/S Kona$1,100,000 Kailua Landfill RemediationN Kona4-N/S Kona$2,150,000 Waimea Landfill RemediationS KohalaCounty-Wide$2,200,000 Transfer Station Replace/EnhancementVariousCounty-Wide$3,900,000$3,900,000 S Hilo Landfill ClosureS HiloCounty-Wide$13,000,000 West HawaiÓi Regional Sort StationVariousCounty-Wide$8,550,000$8,550,000 Total$44,375,000$16,375,000 Source: County of HawaiÓi, Capital Budget and Six Year Capital Improvements Program, June 2006; green waste facility project cost from HawaiÓi, County Department of Environmental Management, Aug HÓC\INAÐIFSSeptember 19, 2006, Page 89 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY this page intentionally left blank HÓC\INAÐIFSSeptember 19, 2006, Page 90 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY CHAPTER 12: WASTEWATER As shown in Figure 10, HawaiÓi County presently operates municip PapaÓikou, Kapehu, Pepeekeo and Kealakehe. The rest of the island is served by private wastewater treatment facilities, or individual facilities such as cesspools or septic tanks. About 77 percent HawaiÓi County population is served by cesspools. The State Department of Health intends to promulgate rules that will prohibit cesspools in HawaiÓi County. Figure 10 WASTEWATER TREATMENT FACILITIES HÓC\INAÐIFSSeptember 19, 2006, Page 91 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY The County currently charges a water Ñfacilities chargeÒ to cove infrastructure, but does not have a comparable fee for wastewater. The water facilities fee is $1,190 for the first dwelling unit (or water demand equivalent), and $5,500 Residents and businesses that are connected to a County sewer system pay user fees which fund all operations and maintenance. The County could charge new wastewa cover a pro rata share of the capital costs of the treatment plants, interceptors, force mains and pumping facilities. Assessment and Benefit Districts The County provides wastewater Figure 11 service to customers located in the SEWER SERVICE AREAS vicinity of one of the five existing wastewater treatment facilities. It is recommended that the wastewater impact fee service area should be limited to areas currently served by a wastewater treatment plant. For this study, a county-wide level of service will be calculated based on existing facilities, with a benefit district established for each existing wastewater treatment plant, as shown in Figure 11. The wastewater impact fees will only be assessed on new customers when they connect to the County wastewater system. HÓC\INAÐIFSSeptember 19, 2006, Page 92 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Service Unit To calculate wastewater impact fees, the wastewater demand associated with different types of customers must be expressed in a common unit of measurement, cal Family EquivalentÒ unit or SFE is a common denominator that converts all classes of customers into a common unit of expression. An SFE is the wastewater demand associated with a typical single-family residence. Wastewater impact fees for new residential customers will be charged on a per unit basis, with the fee based on the anticipated wastewater demand compared to a typical single-family dwelling. For nonresidential uses, wastewater impact fees are almost universally charged based on the size of the water meter, irrespective of land use. Table 83 is the recommended equivalency table, showing the capacity of water meters of various sizes and the equivalency factors. Table 83 METER EQUIVALENCY FACTORS Capacity SFEs/ Meter Size(gpm) Meter 5/8" x 3/4" Meter10 1.0 1" Meter25 2.5 1-1/2" Meter50 5.0 2" Meter 80 8.0 3" Meter160 16.0 4" Meter250 25.0 6" Meter500 50.0 8" Meter800 80.0 10" Meter1,450 145.0 Source: Midrange of normal operating flow rates in gallons per minute for simple (less than 3"), compound (3-8") and turbine (10") meters from American Water Works Association, AWWA Standards C700-95, C702-01, C701-88. Customarily, the number of existing wastewater SFEs is based on the number of water customers by meter size with the demand per SFE calculated based on average daily wastewater flow. By definition, a typical single-family unit represents, on average, one SFE. In the absence of such customer data, the demand per wastewater service unit in this study was estimated by utilizing an assumed average daily consumption of 80 gallons per day (gpd) per capita for residential customers that was utilized in both 13 the 2004 wastewater capacity fee study and the 1990 HawaiÓi County impact fee study. Demand for wastewater facilities is proportional to the number of people in a dwelling unit or hotel room. Consequently, data on average household size for various types of units is a critical component in determining the wastewater impact fee in the absence of actual customer data. Other types of unit each represent an SFE, based on their relative average household sizes and wastewater demand per unit. The relative SFEs per unit are based on demographic data presen 13 R.W. Beck, Needs Assessment Study and Capacity Assessment Fee Study, prepared for the County of HawaiÓi, Department of Environmental Management, Wastewater Division, January 2004 Draft Report HÓC\INAÐIFSSeptember 19, 2006, Page 93 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY The wastewater demand and SFEs associated with each housing type and unit size category are shown in Table 84. Table 84 WASTEWATER SERVICE UNIT MULTIPLIERS Land UseAvg HH SizeGPDSFEs/Unit Less than 1,000 sq. ft.2.78222.40.97 1,000 - 1,499 sq. ft.2.95236.01.03 1,500 - 1,999 sq. ft.3.06244.81.07 2,000 - 2,999 sq. ft.3.23258.41.13 3,000 - 3,999 sq. ft.3.45276.01.20 4,000 sq. ft or more3.68294.41.28 Single-Family (flat rate)2.87229.61.00 Multi-Family2.26180.80.79 Hotel/Motel1.34107.20.47 Source: Average household size for single-family average and multi-fami in Appendix C; average household sizes by size categories from T average occupancy for hotel/motel rooms estimated to be one-half occupancy on vacation trips, as reported by U.S. Dept. of Transp Travel Survey, 2001; gallons per day is based on assumed demand of 80 gpd per capita; SFEs/unit is ratio of average household size to single-family de Wastewater System Capacity As mentioned in the introduction, HawaiÓi County presently operates municipal wastewater systems in Hilo, PapaÓikou, Kapehu, Pepeekeo and Kealakehe. The systemÔs c average wastewater flow that the five treatment plants are designed for, less an allowance for inflow infiltration during dry weather. As shown in Table 85, the estimated system capacity is 9.97 million gallons per day (mgd). Table 85 WASTEWATER SYSTEM CAPACITY DesignEst. Inflow/Estimated Avg. FacilityFlow (mgd)Infiltration (mgd) Capacity (mgd) Hilo5.000.804.20 Kealakehe5.310.315.01 Kapehu0.020.000.02 Kulaimano0.500.070.43 Papaikou0.350.030.32 Total11.181.219.97 Source: R.W. Beck, Needs Assessment Study and Capacity Assessment Fee Study, January 2004 Draft Report. The 2004 wastewater capacity fee study concluded that the existing collection system could not serve a greater capacity than the existing wastewater treatment facilities. For the purpose of determining the wastewater impact fee, the combined capacity of the wastewater treatment facilities and collections facilities is the same as the total estimated wastewater treatme HÓC\INAÐIFSSeptember 19, 2006, Page 94 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Cost Per Service Unit In HawaiÓi County, developers are generally required to install collection facilities such as laterals and collector sewers. These collection facilities typically consist of force mains and gravity sewers that are less than 12-inches in diameter. Based on a review of Wastewater Division construction records, the 2004 wastewater needs assessment study found that interceptor and force main costs are estimated to be 45 percent of the total collection system project cost; the remaining 55 percent of collection system project costs are for laterals and collector sewers. The cost of facilities included in the impact fee include 55 percent of collection facility costs and 100 percent of the costs for the public service center, pumping and treatment. However, if interceptor and force mains are funded through assessments or State revolving lo assessments, they would need to be excluded from the impact fee calculation or a credit for the interceptor and force main costs would need to be provided for p assessments. Since growth generally cannot be served with older, depreciated facilities, but instead will require new facilities, it is appropriate to base the fees on the replacement cost of existing facilities adjusted to reflect existing debt and current capacity level. An inventory of existing wastewater facilities is shown in Table 108 in Appendix F. Table 86 shows a summary of the replacement value of the facilities based on the original cost of the facility adjusted to account for increases in construction and material costs. As with the 2004 study, the CountyÔs Building and Improvement Inventory was used to estimate the cost in 2005 dollars of replacing wastewater facilities. The total estimated replacement cost is $244.4 million. However, since some of the collection facilities were installed by developers, the collection facility cost is adjusted to account for the share of those facilities that are related to interceptor and force mains that are less than 12-inches in diameter. As a result, the adjusted replacement cost of HawaiÓi CountyÔs wastewater facilities is an estimated $197.6 million. Table 86 WASTEWATER FACILITY REPLACEMENT COST Cost Facility TypeReplacement CostAdj.Adjusted Cost Public Service Center$421,438100%$421,438 Collection$85,045,79045%$38,270,606 Pumping$34,860,160100%$34,860,160 Treatment$124,031,840100%$124,031,840 Total, Wastewater Facilities$244,359,228$197,584,044 Source: Replacement cost from Table 108 of Appendix F; cost adjustment based on estimated cost of force mains and > 12-inch diameter gravity sewers from Needs Assessment Study and Capacity Assessment Fee Study, January 2004. The wastewater cost per SFE is determined based on the systemÔs capacity, and wastewater demand per SFE. As shown in Table 87, dividing the cost of existing wastewater facilities by the systemÔs capacity results in a wast HÓC\INAÐIFSSeptember 19, 2006, Page 95 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Table 87 WASTEWATER COST PER SERVICE UNIT Wastewater Facility Cost$197,584,044 Wastewater Capacity (gpd)9,970,000 Cost per Gallon per Day$20 Gallons per Day per SFE230 Cost per SFE$4,550 Source: Wastewater facility cost from Table 86; capacity from Table 85; gallons per day per SFE from Table 84. Net Cost per Service Unit As with other facility impact fees, a reduction of impact fees to provide a credit for future funding to be generated by new development is required for outstanding debt on existing wastewater facilities that have been counted in the existing level of service. The County Revolving Fund (SRF) loans from the State of HawaiÓi to finance wastewater capital projects. Currently, there is an estimated $2.4 million in outstanding SRF debt principal. Based on the analysis of GO bond issues and the current outstanding debt, the total GO bond outstanding balance for wastewater projects is $26.8 million. As shown in Table 88, the total GO and SRF outstanding debt on the existing wastewater treatment facilities is approximately $29.1 million, which results in a debt credit of $670 per SFE. Table 88 WASTEWATER FACILITY DEBT PER SERVICE UNIT State Revolving Fund Loan$2,372,328 General Obligation Debt$26,769,202 Total Outstanding Debt$29,141,530 Wastewater Capacity (gpd)9,970,000 Debt per gpd$2.92 GPD per SFE230 Debt Credit per SFE$670 Source: SRF outstanding debt based on principal balance for FY 2006 pro by HawaiÓi County Finance Department; GO debt from Appendix B, T capacity from Table 85; SFE demand from Table 83. Based on a review of the CountyÔs CIP status report, no capacity-expanding projects for the wastewater facilities were funded directly from the general fund appropriations since 2001. All recent capacity- expanding wastewater projects have been funded through the CountyÔs GO bonds. As shown in Table 89, the estimated annual principal and interest payments on the current outstanding debt for wastewater over the past five years was $19.2 million. HÓC\INAÐIFSSeptember 19, 2006, Page 96 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Table 89 WASTEWATER GENERAL FUND EXPENDITURES, 2001-2005 Annual GO Bond Debt Service$24,921,138 Wastewater Share of Total Outstanding Debt15.4% Annual Debt Service$3,837,855 Years5 Total Debt-Related Capacity Funding, 2000-2005$19,189,276 Source: Annual debt service based on 2004-05 debt service from HawaiÓi County, 2005-06 Annual Operating Budget, June 2006; wastewater share of debt from Table 96. An analysis of budgetary and tax data indicates that vacant and agricultural properties within the County generate 32.5 percent of property tax revenues, and property taxes accounted for 66.5 percent of general fund revenues. Using these percentages, the credit for past property tax payments is $95 per SFE, as shown in Table 90. Table 90 WASTEWATER PAST PROPERTY TAX CREDIT Percent of General Fund from Property Taxes, FY 2005-0666.5% Percent of Property Taxes from Vacant/Ag. Land, 200632.5% Percent of Wastewater Credit for Past Property Tax Payments21.6% Total General Fund Capacity Funding, 2000-2005$19,189,276 Net Vacant/Ag. Land Share of Past Capital Cost$4,145,499 Wastewater Capacity (GPD)9,970,000 Past Property Tax Credit per GPD$0.42 GPD per SFE230 Past Property Tax Credit per SFE$95 Source: Percent of general fund from property taxes from HawaiÓi County, 2005-06 Annual Operating Budget, June 2006; percent of property taxes from undeveloped/agricult Property Tax Administrator, June 1, 2006; general fund capacity per SFE from Table 83. A system-wide wastewater impact fee that reflects the adjusted value of the existing wastewater treatment facility results in a fee of $3,785 per SFE, as shown Table 91 WASTEWATER NET COST PER SERVICE UNIT Wastewater Facility Cost per SFE$4,550 Debt Credit per SFE$670 Property Tax Credit per SFE$95 Net Cost per SFE$3,785 Source: Wastewater facility cost from Table 87; debt credit from Table 88; and property tax credit from Table 90. HÓC\INAÐIFSSeptember 19, 2006, Page 97 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Maximum Fee Schedule The maximum wastewater impact fees that may be charged by the HawaiÓi County, based on the methodology, data and assumptions used in this report, are shown in Table 92. The County has the option of charging single-family homes a flat rate per unit or a variable rate based on dwelling unit size. Table 92 WASTEWATER NET COST SCHEDULE SFEs per Net Cost Unit or Net Costper Unit Housing Type/Meter SizeMeter per SFE or Meter Less than 1,000 sq. ft.0.97 $3,785$3,672 1,000 - 1,499 sq. ft.1.03 $3,785$3,899 1,500 - 1,999 sq. ft.1.07 $3,785$4,050 2,000 - 2,999 sq. ft.1.13 $3,785$4,277 3,000 - 3,999 sq. ft.1.20 $3,785$4,542 4,000 sq. ft. or more1.28 $3,785$4,845 Single-Family (flat rate)1.00 $3,785$3,785 Multi-Family0.79 $3,785$2,990 Hotel/Motel0.47 $3,785$1,779 Nonresidential, 5/8" x 3/4" Meter1.00 $3,785$3,785 Nonresidential, 1" Meter2.50 $3,785$9,463 Nonresidential, 1-1/2" Meter5.00 $3,785$18,926 Nonresidential, 2" Meter8.00 $3,785$30,281 Nonresidential, 3" Meter16.00 $3,785$60,563 Nonresidential, 4" Meter25.00 $3,785$94,630 Nonresidential, 6" Meter50.00 $3,785$189,259 Nonresidential, 8" Meter80.00 $3,785$302,814 Nonresidential, 10" Meter145.00 $3,785$548,851 Source: Residential SFEs per unit from Table 84; nonresidential SFEs per net cost per SFE from Table 91. HÓC\INAÐIFSSeptember 19, 2006, Page 98 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Capital Improvement Plan Funding of $92.1 million is proposed for wastewater infrastructure improvements in the CountyÔs 2005- 06 to 2010-2011 capital improvements program (CIP). Impact fees may only be used for capacity- expanding improvements for facilities or equipment that expand t processing or increase the volume of wastewater collection or disposal unless they are funded through assessments or by developers. A detailed breakdown of each project component cost was not available; consequently, the identification of eligible projects is preliminary and subject to verification. Eligible improvements appear to account for $24.0 million of the total CIP costs. The current list of eligible improvements from the six-year CIP is shown in Table 93. Improvements are currently planned only for two of the five existing systems. In addition, improvements are planned that would create three new wastewater systems. Fees should not be implemented in the three existing systems with no planned improvements until eligible improvements are identified. Table 93 WASTEWATER CAPITAL IMPROVEMENT PROGRAM WastewaterImpact Fee ProjectSystemTotal CostEligible Kalanianaole Interceptor Sewer RehabHilo WWTP$6,000,000 Wailoa SPS RenovationHilo WWTP$2,000,000 Modify HWWTP DigesterHilo WWTP$5,800,000$5,800,000 Ainako Aina-Nani Collector SewerHilo WWTP$3,700,000 Kilohana Sewer Improvement DistrictHilo WWTP$3,250,000 Puainako Sewer Improvement DistrictHilo WWTP$15,100,000 Pihonua Collector SewerHilo WWTP$2,200,000 Puueo Collector SewerHilo WWTP$2,800,000 ReedÔs Island Collector SewerHilo WWTP$1,100,000 Replace Wailuku and Puueo Bridge LinesHilo WWTP$2,300,000 Ainako Collector SewerHilo WWTP$2,200,000 Queen Liliuokalani Large Capacity Cesspool ReplacementKealakehe WWTP$8,800,000$8,800,000 Abandon Emma SPSKealakehe WWTP$3,450,000 N Kona Sewer Improvement DistrictKealakehe WWTP$11,100,000 Honokohau SPS and FMKealakehe WWTP$2,500,000 Lono Lona Collector SewerKealakehe WWTP$3,300,000 Replace Kealakehe WWTP Lagoon LinersKealakehe WWTP$3,300,000 Lunapule Collector SewerKealakehe WWTP$420,000 Hualalai Interceptor SewerKealakehe WWTP$2,200,000$2,200,000 Alii Kai Collector SewerKealakehe WWTP$3,300,000 Honokaa Large Capacity Cesspool ReplacementNew, WWTP$3,600,000$3,600,000 Naalehu and Pahala Large Capacity Cesspool Replacement2 New Stand alone$3,630,000$3,630,000 Total$92,050,000$24,030,000 Source: County of HawaiÓi, Capital Budget and Six Year Capital Improvements Program, June 2006. HÓC\INAÐIFSSeptember 19, 2006, Page 99 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY this page intentionally left blank HÓC\INAÐIFSSeptember 19, 2006, Page 100 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY APPENDIX A: ROAD INVENTORY PART III: APPENDICES APPENDIX A: ROAD INVENTORY Table 94 EXISTING MAJOR ROAD INVENTORY Lane-Miles Street NameFrom/ToLnMilesTotalCountAADTCapacityVMTVMC Kanoelehua AveKamehameaha Ave to Hualani St40.582.322.3223,63126 Kanoelehua AveHualani St to Lankikaula40.481.921.9231,96526,0001 Kanoelehua AveLankikaula to Puainako40.833.323.3230,77626,00025, Kanoelehua AvePuainako to Kilauea41.907.607.6031,75626,00060,336 Volcano RdKilauea to Keeau-Pahoa Rd42.8711.4811.4834,44626,00098 Hawaii Belt RdHualalai Rd to Nani Kailua Dr20.430.860.8623,50313 Hawaii Belt RdNani Kailua Dr to Q Kaahumanu Hwy21.072.142.1424,0 Hawaii Belt RdMud Ln to W Waimea UB 24.438.868.8614,19613,00062 Kawaihae RdKamamalu St to Mamalahoa Hwy20.561.121.1218,78113,000 Kawaihae RdMamalahoa Hwy to Laelae Rd20.901.801.8016,84713,00015 Kawaihae RdLaelae Rd to Kohala Mountain Rd21.172.342.3413,36113, Kawaihae RdKohala Mt Rd to Akulani St20.501.001.008,70013,0004,3 Kawaihae RdAkulani St to Kawaihae Rd27.4114.8214.827,67213,00056 Q. Kaahumanu HyKawaihae Rd to Waikoloa Rd27.9815.9615.9610,39313 Q. Kaahumanu HyWaikoloa Rd to Keahole Air. Rd218.0336.0636.0612, Q. Kaahumanu HyKeahole Air. Rd to Kealakehe Pwy Rd24.529.049.042 Q. Kaahumanu HyKealakehe Pwy Rd to Palani Rd 22.274.544.5425,080 Kawaihae RdQ. Kaahumanu to Kawaihae Wharf 21.503.0013,00019,500 State Road Subtotal, Primary Arterial 57.43128.18125.18872,7118 Volcano RdKeeau-Pahoa Rd to Huina St23.046.086.0814,22713,00043, Volcano RdHuina St to South Pszyk25.0110.0210.0210,78913,00054,0 Volcano RdSouth Pszyk to Wright Rd211.7123.4223.425,45113,00063, Volcano RdWright Rd to Volcano NP22.004.004.003,27313,0006,54626 Volcano RdVolcano NP Rd to Mauna Loa Rd22.314.624.622,57613,0005 Volcano RdMauna Loa Rd to Ninole Rd225.7651.5251.521,86113,00047 Volcano RdNinole Rd to Konohiki St29.4618.9218.922,08913,00019,7 Volcano RdKonohiki St to Hookena Bch Rd235.1570.3070.303,01213,0 Volcano RdHookena Bch Rd to Ke-Ala-O-Keawe 22.505.005.004,93913, Volcano RdKe-Ala-O-Keawe Rd to Koa Rd25.5511.1011.108,81113,0004 Volcano RdKoa Rd to Road to Napoopoo21.052.102.1012,85913,00013, Kalanianaole StKalanianaole to Kamehameha Ave20.711.421.4215,879 Kamehameha AveKamehameha Ave to Manono St40.421.681.6819,64726,0 Kamehameha AveManono St to Hawaii Belt Rd Junct40.120.480.4828,67626,0003,4413,120 Bayfront HWYHawaii Belt Rd Junction to Pauahi St20.450.900.9028, Bayfront HWYPauahi St to Waianuenue Ave20.621.241.2411,11413,000 Hawaii Belt RdWaianuenue Ave to Hau St20.821.641.6415,70013,0001 Hawaii Belt RdHau St to Road to Papaikou23.186.366.3614,12813,00 HÓC\INAÐIFSSeptember 14, 2006, Page 101 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Lane-Miles Street NameFrom/ToLnMilesTotalCountAADTCapacityVMTVMC Hawaii Belt RdRd to Papaikou to Kulaimano Rd23.486.966.9610,4721 Hawaii Belt RdKulaimano Rd to Akaka Falls Rd 23.376.746.748,3941 Hawaii Belt RdAkaka Falls Rd to Mamane St 228.5357.0657.066,6341 Hawaii Belt RdMamane St to Plumeria Rd21.533.063.066,79013,00010 Hawaii Belt RdPlumeria Rd to Mud Ln28.5117.0217.027,82913,00066, Keaau-Pahoa RdVolcano Rd to Old Keaau-Pahoa Rd 21.793.583.5816,2 Keaau-Pahoa RdOld Keaau-Pahoa Rd to Ainaloa Blvd22.955.905.9018, Keaau-Pahoa RdAinaloa Blvd to Old Keaau-Pahoa Rd 22.955.905.9011 Keaau-Pahoa RdOld K-P Rd to Pahoa-Kapoho Rd 21.482.962.967,04713 Mamalahoa HwyWaimea-Kohala Air. Rd to Saddle Rd24.549.089.087,15 Mamalahoa HwySaddle Rd to Waikoloa Rd24.689.369.365,79413,00027, Mamalahoa HwyWaikoloa Rd to Mahilani Dr221.5943.1843.183,60913,0 Mamalahoa HwyMahilani Dr to Mamalahoa Hwy22.725.445.4411,95913,0 Kaumana/SaddleHilo UB to Waenakonu25.0010.0010.002,39113,00011,9 Kaumana/SaddleWaenakonu to Saddle Rd26.5013.0013.002,26213,00014 Akoni Pule HwyKaahumanu Hwy to Kawaihae Wharf21.503.003.006,9161 Akoni Pule HwyKawaihae Wharf to Upolu Air. Rd216.6033.2033.204,9 Akoni Pule HwyUpolu Air. Rd to Hawi Rd21.222.442.445,04813,0006, Kealakehe PkwyQ. Kaahumanu Hwy to Keanalehu Dr21.182.362.364,059 Kealakehe PkwyKeanalehu Dr to Palani Rd21.923.8413,00024,960 State Road Subtotal, Secondary Arterial 231.90464.88461.041,280 Keaau-Pahoa RdPahoa-Kapoho Rd to Leilani Blvd22.064.124.122,909 Keaau-Pahoa RdLeilani Blvd to Kaimu-Chain of Crates 26.6013.2013 Keaau-Pahoa RdKaimu-Chain of Crates Rd to Closure21.032.062.061, Keaau-Pahoa RdClosed Rd Section (3.49 mi.)213,000 Ke Ala 0 KeaweMamalahoa Hwy to Rd to Painted Ch 21.082.162.161,3 Ke Ala 0 KeaweRd to Painted Ch to City of Refuge22.745.485.48883 Akaka Falls RdHawaii Belt Rd to End23.807.607.601,59613,0006,065 Mamane StHawaii Belt Rd to Pakalana St21.092.182.183,79113,0004, Mamane StPakalana St to Lehua20.410.820.825,31913,0002,1815,330 Mamane StLehua to Nienie Bridge20.460.920.923,73613,0001,7195,98 Mamane StNienie Bridge to Waipio Valley27.6615.3215.321,81613,00 Kohala Mt RdKawaihae Rd to Rd to Hawaii Prep20.220.440.441,95613 Kohala Mt RdRd to Hawaii Prep to Kynnersly Rd217.1634.3234.321,9 Kohala Mt RdKynnersly Rd to Mahukona-Niulii Rd21.903.8013,00024, Mahukona-NiuliiHawi Rd to Kohala Hospital22.274.544.545,41113,00 Mahukona-NiuliiKohala Hospital to Kohala Mill Rd20.981.961.963,9 Mahukona-NiuliiKohala Mill Rd to Road to Niulii22.885.765.762,17 Mahukona-NiuliiRoad to Niulii to Pololu Valley Ent21.573.143.143 Palani RdKaiwi St to Palani Rd 20.300.600.6015,69813,0004,7093, Palani RdPalani Rd to Hualalai Rd 20.480.9613,0006,240 Palani RdHualalai Rd to Wailua Rd 20.971.941.9410,12613,0009, Palani RdWalua Rd to Q. Kaahumanu Ext21.332.662.666,43913,0008,5 State Road Subtotal, Major Collector56.99113.98109.22128,996740 HÓC\INAÐIFSSeptember 14, 2006, Page 102 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Lane-Miles Street NameFrom/ToLnMilesTotalCountAADTCapacityVMTVMC Kapoho-Kaimu RdPahoa-Kal-apana to Pahoa-Kapoho Rd 214.5029.0013, Kukui Rd Camp Rd/Huina Rd to Volcano 21.703.4013,00022,100 North Kulani RdHuina Rd to Volcano Rd21.603.2013,00020,800 Wright RdElepaio Rd to Volcano Rd 21.102.2013,00014,300 Opihikao RdPahoa-Kalapana to Kala-pana-Kapoho25.3010.6013,00068, Pohoiki RdPahoa-Kapoho to Kala-pana-Kapoho24.809.6013,00062,400 Pohakea RdPaauilo Rd to Mamalahoa Hwy22.304.6013,00029,900 Kalopa RdKalopa Mauka Rd to Mamala-hoa Hw21.402.8013,00018,200 Kynnersley RdKohala Mntn Rd to Mahukona-Niulii22.304.6013,00029, Hawi RdMahukona-Niulii Rd to End20.901.801.803,51613,0003,16411, Kamehameha IllManukai St to Alii Dr20.300.6013,0003,900 Walua RdAinanani St to Kuakini Hwy20.501.0013,0006,500 Kaleiopapa RdEhukai St to Alii Dr State20.200.4013,0002,600 Sunset DrMarlin Rd to Kuakini Hwy20.300.6013,0003,900 Hinalani St Halolani St to Mamalahoa Hwy20.400.8013,0005,200 Holoholo St Kukuna St to Kaiminani Dr20.601.2013,0007,800 Halekii StMamao St to Mamalahoa Hihgway20.200.4013,0002,600 Kinue StHookipa Place to Mamalahoa Hwy20.200.4013,0002,600 S Point Access RdMamalahoa Hwy to South Point 210.7021.4013,000 Kamoa RdS Pt Access to Hawaii Belt Rd 22.705.4013,00035,100 Kamani StPikake St to Hawaii Belt Rd20.501.0013,0006,500 Maunakea AccessSaddle Rd to Observatory 215.0030.0013,000195,00 State Road Subtotal, Minor Collector67.50135.001.803,164877,500 Mamalahoa HwyRd to Napoopoo to Kona Hosp Rd21.823.643.6415,50513 Mamalahoa HwyKona Hospital Rd to Old Mamalahoa 21.673.343.3417,4 Mamalahoa HwyOld Mamalahoa Hwy to Haawina St 21.803.603.6017,954 Mamalahoa HwyHaawina St to Kamehameha III Rd21.833.663.6618,623 Mamalahoa HwyKamehameha III Rd to Kuakini Hwy22.004.004.0020,481 Kuhio StKuhio Wharf to Kanoelehua 20.801.601.601,91213,0001,530 Hawaii Belt RdKuakini Hwy to Hualalai Rd21.262.522.5223,51613,00 County Road Subtotal, Primary Arterial11.1822.3622.36195,868145 Mamalahoa HwyKawaihae Rd to Waimea-Kohala Air21.713.423.429,1661 Saddle RdHilo UB to Mamalahoa Hwy239.3078.6078.601,10013,00043,2 Waikoloa RdQ. Kaahumanu Hwy to Quarry Rd24.749.489.4810,07913,00 Waikoloa RdQuarry Rd to Mamalahoa Hwy26.3812.7612.764,64913,0002 County Road Subtotal, Secondary Arterial52.13104.26104.26136,33 Pahoa-Kapoho RdKeaau-Pahoa to Naniwale Blvd21.002.002.005,99513, Pahoa-Kapoho RdNaniwale Bvd to Kalapana-Kapoho26.8013.6013.602,0 Keaau-Pahoa RdThrough Pahoa Town 21.703.403.405,41813,0009,2112 Kahakai BoulevardKeaau-Pahoa Rd to End 26.1012.2012.206,14013,0 Napoopoo Rd Mamalahoa Hwy to Puu-honua Rd24.408.808.801,25513,00 HÓC\INAÐIFSSeptember 14, 2006, Page 103 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Lane-Miles Street NameFrom/ToLnMilesTotalCountAADTCapacityVMTVMC Mamalahoa Hwy Palani Rd to Waiaha Stream24.408.8013,00057,200 Mamalahoa HwyWaiaha Stream to Kua-kini Hwy 24.809.6013,00062,40 Kamehameha Ill Dr Kuakini Hwy to Kealahou village21.242.482.481 Kamehameha Ill Dr Kealahou Village to Alii Dr20.240.480.4810,98 Palani Rd Mamlahoa Hwy to Kealakaa St41.536.126.1215,45426,00023 Palani RdKealakaa St to Q Kaahumanu Hwy41.877.487.4817,08026,000 Plumeria RdMamane St to Mamalahoa Hwy20.701.401.403,11713,0002,1 Old MamalahoaW to E junction with Hawaii Belt Rd20.701.401.401,5 Pikake StOhia St to Mamalahoa Hwy20.400.800.8079513,0003185,200 Kuakini HwyPalani Rd to Kaiwi St20.400.8013,0005,200 Kaiwi StQ. Kaahumanu to Kuakini Hwy20.300.600.6010,73813,0003,22 Aloha Kona DrHienaloli Rd to Hawaii Belt Rd20.901.8013,00011,700 Kealakaa StUluaÓo St to Palani Rd20.501.001.004,74313,0002,3726, Loloa DrHolo St to Mamalahoa Hwy20.501.001.001,25613,0006286,500 Palani Rd/Alii DrKuakini Hwy to Rd to Wharf20.140.280.2818,61013 Palani Rd/Alii DrRd to Wharf to Kailua-Kona22.264.524.5215,35813 Alii DrKailua-Kona UB to Hualalai Rd20.761.521.5211,17513,0008,4 Alii DrHualalai Rd to Walua Rd20.450.900.9015,35813,0006,9115,85 Alii DrWalua Rd to Kaiolu Rd20.981.961.9614,52413,00014,23412,74 Alii DrKaiolu Rd to Royal Poincana Dr20.731.461.4614,49413,00010 Alii DrNew Con. to Kamehameha III Rd20.300.600.608,81213,0002,6443,900 Alii DrKamehameha III Rd to end22.675.345.344,50913,00012,03934,710 Hualalai RdAlii Dr to Kuakini20.200.400.407,57713,0001,5152,600 Hualalai RdKuakini to Hawaii Belt21.202.402.406,47813,0007,77415 Lako RdKuakini Hwy to End20.501.001.002,49713,0001,2496,500 Kaiminani DrMamalahoa to Queen Kaahumanu23.607.207.206,16013,000 Henry StKuakini Hwy to Hawaii Belt Rd40.200.800.8014,82426,0002, Paniolo AvePaniolo Ave - Waikoloa Rd to End41.706.806.809,91026, Lindsey RdHokuula Rd to Mamalahoa Hwy 20.400.800.801,45713,0005 Old MamalahoaUikeoni St to Hawaii Belt Rd 20.450.900.901,92313, Kamamalu StMamalahoa Hwy to Hiiaka St 20.701.401.403,13613,0002 Kamehameha AvWaianuenue Ave to Hilo Bay Hwy41.104.4026,00028,600 KeaweWaianuenue to Kilauea20.300.600.608,76413,0002,6293,900 Kilauea AveKeawe St. to Ponahawai St.20.070.140.149,64013,000675 Kilauea AvePonahawai St to Kukuau40.130.520.5212,02326,0001,5633 Kilauea AveKukuau St. to Aala Lane40.100.400.4014,32726,0001,433 Kilauea AveAala Lane to Mohouli St40.331.321.3217,92026,0005,914 Kilauea AveMohouli St. to Lanikaula40.532.122.1226,80526,00014,2 Kilauea AveLanikaula to Kawili St40.421.6826,00010,920 Kilauea AveKawili St. to Puainako St40.702.802.8014,85726,00010, Kilauea AvePuainako St. to E. Kahaopea St.40.351.401.4010,19626, Kilauea AveKahaopea to Kawailani St.40.351.4026,0009,100 Kilauea AveKawailani St. to E. Palai St.40.351.401.406,40326,000 Kilauea AvePalai St. to Haihai St.40.351.401.406,40326,0002,2419 Kilauea AveHaihai St. to Kanoelehua20.501.001.008,56613,0004,283 HÓC\INAÐIFSSeptember 14, 2006, Page 104 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Lane-Miles Street NameFrom/ToLnMilesTotalCountAADTCapacityVMTVMC Kalanianaole StKuhio St. to Kauhane Ave.20.100.200.2011,00413,00 Kalanianaole StKauhane Ave. to Baker Ave20.380.760.766,94013,000 Kalanianaole StBaker Ave. and Onekahakaha St.20.501.001.006,7301 Kalanianaole StOnekahakaha St. to Kamokuna St.20.270.540.544,897 Kalanianaole StKamokuna St to Koloa St20.561.121.123,40613,0001, Kalanianaole StKoloa St. to Oeoe St.20.120.240.242,55013,0003061 Kalanianaole StOeoe St. to Lehia Park Gate21.002.002.001,31113,0 Puainako StRailroad Ave to Kanoelehua Ave20.561.121.128,22313,00 Puainako StKanoelehua Ave to Kilauea Ave20.170.340.3418,11913,00 Puainako StKilauea Ave to Kinoole St20.100.200.2011,84013,0001,1 Puainako StKinoole St to Kawili St/Iwalani St20.751.501.509,4971 Puainako StKawili St/Iwalani St to Komohana St20.601.201.207,523 Kinoole StWaianuenue Ave to Ponahawai St20.370.740.744,68813,000 Kinoole StPonanawai St to Mohouli St 20.711.421.4212,68713,000 Kinoole StMohouli St to Kawili St 20.741.481.4814,24213,00010,53 Kinoole StKawili St to Puainako St20.631.2613,0008,190 Kinoole StPuainako St to Kawailani St 20.701.401.409,77613,0006 Kinoole StKawailani St to Haihai St 20.691.381.384,31413,0002,9 Waianuenue AveKamehameha Ave to Komohana St21.002.002.0013,21113 Waianuenue AveKomohana St to Kaumana Dr 40.180.7226,0004,680 Waianuenue AveKaumana Dr to Puuhina St 20.170.340.348,50413,0001 Waianuenue AveHilo Hospital to Lahi St 20.961.921.922,71213,0002 Waianuenue AveLahi St to Akolea St 20.430.860.861,24813,00053 Kaumana DrWaianuenue Ave to Ainako Ave40.783.123.127,86526,0006, Kaumana DrAinako Ave. to Akolea St20.961.921.929,17813,0008,8111 Kaumana DrAkolea St to Wilder Ave20.320.640.642,32013,0007424,16 Kaumana DrWilder to Country Club Dr21.102.202.201,06913,0001,176 Kekuanaoa StKanoelehua Ave to Manono St20.370.740.7412,52213,000 Kekuanaoa StManono St to Kilauea Ave20.440.880.8815,07313,0006,6 Komohana StWainuenue to Punahele 20.100.200.2011,77413,0001,1771 Komohana StPunahele to Puainako 21.803.603.6013,31113,00023,960 Komohana StPuainako St to Ainaloa Dr 21.002.002.005,83613,0005,8 Komohana StAinoloa Dr. to Haihai St.20.400.8013,0005,200 Haihai StKilauea Ave to Ainaola Dr 21.693.383.386,91313,00011 Haihai StAinaola Dr to Kupulau St 20.861.721.722,67213,0002,2 Ainaola DrKawailani St to Haihai St 21.052.102.107,25513,0007, Ainaola DrHaihai St to Kupulau Rd 21.102.202.203,38713,0003,726 Kawailani StKanoelehua Ave to Kilauea Ave20.130.260.269,16313,00 Kawailani StKilauea Ave to Kinoole St 20.100.200.2012,69613,0 Kawailani StKinoole St to Iwalani St20.751.501.5011,84313,0008,8 Kawailani StIwalani St to Komohana St20.601.201.208,88513,0005,3 Kawailani StKomohana St to Kupulau Rd21.122.242.247,58713,0008,4 Iwalani StHaihai St to Kawili St21.402.802.801,29113,0001,80718, KawiliIwalani St to Manono St21.002.002.0011,65513,00011,65513,0 ManonoManono St to Kamehameha20.731.461.468,86213,0006,4699,490 HÓC\INAÐIFSSeptember 14, 2006, Page 105 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Lane-Miles Street NameFrom/ToLnMilesTotalCountAADTCapacityVMTVMC Ainako AveKaumana Dr to Waianuenue 21.503.003.003,71013,0005,56 Mohouli StKilauea Ave to Komohana21.102.202.209,74913,00010,7241 Akolea RdWaianuenue Ave to Kaumana 21.803.603.6069713,0001,2552 Lanikaula StKanoelehua Ave to Mohouli St 21.803.603.605,18513,0 Railroad AveLeilani St to Kahaopea 21.202.402.407,28413,0008,74 Stainback HwyS Hilo to Kanoelehua Ave 21.503.0013,00019,500 Wainaku AveWaipahoehoe St to Wailuku Dr 20.300.600.605,69613,00 County Road Subtotal, Major Collector99.99221.92187.66599,1381, Total, Major County Roads348.54314.28931,3442,265,510 Total, Major Road System1,190.581,011.523,217,0317,738,770 Source: Major roads and classifications from HawaiÓi County General Plan Plan Infrastructure Assessment with additional segments scaled by Duncan Associates; annual average daily traffic counts (AADT from State of HawaiÓi, Department of Transportation, Highways Division, 2002 and 2004; capacity from Table 18. HÓC\INAÐIFSSeptember 14, 2006, Page 106 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY APPENDIX B: GENERAL OBLIGATION DEBT APPENDIX B: GENERAL OBLIGATION DEBT HawaiÓi County has utilized General Obligation (GO) debt to fina street, solid waste disposal, wastewater, culture and recreation, other miscellaneous capital projects. The County does not issue separate GO bonds for each type of cap to precisely identify the amount of outstanding GO debt attribut of projects. In 2005-06, total debt service for the CountyÔs ge approximately $17.8 million. The CountyÔs current outstanding GO bonds and their original iss 95. The original debt issues were allocated among departments b projects funded by debt, the ordinance authorizing debt issues, the capital project status report, and information provided by County staff. A portion of outstanding which details are not available. Table 95 ORIGINAL GENERAL OBLIGATION DEBT BY DEPARTMENT BondRoadsParksFire/EMSPoliceSolid WasteWastewaterOtherUnknown 1993$2,083,100$5,877,875$3,099,283$0$18,235,000$31,411,000$11,966,090$14,072,652 1998$775,600 1999A$10,281,000$6,424,445$3,382,000$1,356,000$1,070,000$950,000$6,536,500 1999B$18,835,000 2001$16,000,000$7,000,000 2003$16,998,000$9,040,000$2,500,000$1,800,000$1,020,000$4,750,000$202,000 2004A$30,000,000 2004B$4,856,507$5,102,530$195,575$288,034$613,367$802,262$7,686,724 2004C$1,677,700$202,000$3,417,000 2004D$259,200 2004ID$3,887,493 Total$64,218,607$26,444,850$9,176,858$5,121,734$19,918,367$39,307,555$50,356,315$40,109,652 Notes: 1993: $20,000,000 for projects from FY91 to FY93 capital budget;sue for which details are not available; $10,325,000 to refund 1986 issu9 issue which included $10,200,000 for Hilo sewer plant, $3,500,000 for treatment plant; and $29,315,000 to refund 1990 issue for wastewater and landfill projects. 1998: $775,600 for wastewater systems in Paauilo, Ookala, and Pa 1999A: $30,000,000 for 1999 HawaiÓi County Bill 129. 1999B: $18,835,000 to refund 1978 issue which contained unknown projects funded in prior issues from 1949 to 1977. 2001: $8,000,000 for a radio communication system, $8,000,000 fowater supply projects; and $7,000,000 for unidentified capital projects from FY99 to FY01 capital budget. 2003: $36,310,000 for projects identified in 2003 HawaiÓi County Bill 128. 2004A: $30,000,000 for projects identified in 2004 HawaiÓi County Bill 254 (Ordinance 04 59). 2004B: Refund $30,000,000 for projects from FY1994 to FY1996 cap 2004C: $202,000 to refund 1977 issue for Kulaimano sewage system$411,000 to refund 1981 issue for water storage and transmission, $3,006,000 to refund 1997 issue for acquisition and reconstruction of J.C. PenneyÔs facility, and $1,677,700 to refund 2001 issue for East HawaiÓi police detention facility. 2004D: Waterline replacement project. 2004ID: Water system for Kona Coastview. Source: HawaiÓi County Finance Department. HÓC\INAÐIFSSeptember 14, 2006, Page 107 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Table 1 shows the share of the original debt issue attributed to projects based on the analysis of the original debt issue. Table 96 ALLOCATION OF GENERAL OBLIGATION DEBT BY DEPARTMENT Fire/SolidWaste- BondRoadsParksEMSPoliceWastewaterOtherUnknownTotal 19932.4%6.8%3.6%0.0%21.0%36.2%13.8%16.2%100% 19980.0%0.0%0.0%0.0%0.0%100.0%0.0%0.0%100% 1999A34.2%21.4%11.3%4.5%3.6%3.2%21.8%0.0%100% 1999B0.0%0.0%0.0%0.0%0.0%0.0%0.0%100.0%100% 20010.0%0.0%0.0%0.0%0.0%0.0%69.6%30.4%100% 200346.7%24.9%6.9%5.0%0.0%2.8%13.1%0.6%100% 2004A100.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%100% 2004B24.8%26.1%1.0%1.5%3.1%4.1%39.4%0.0%100% 2004C0.0%0.0%0.0%31.7%0.0%3.8%64.5%0.0%100% 2004D0.0%0.0%0.0%0.0%0.0%100.0%0.0%0.0%100% 2004ID0.0%0.0%0.0%0.0%0.0%100.0%0.0%0.0%100% Total25.2%10.4%3.6%2.0%7.8%15.4%19.8%15.8%100% Source: Allocation based on department share of each original bond issu The County currently has $390.3 million in outstanding GO debt. current GO debt by department based on the current outstanding principal balance for each GO Bond issue. In addition, the $19.6 million of outstanding debt the original debt issues were allocated among the departments ba outstanding bond issues. Table 97 OUTSTANDING GENERAL OBLIGATION DEBT BY DEPARTMENT Solid BondRoadsParksFire/EMSPoliceWasteWastewaterOtherUnknown 1993$1,085,400$3,075,300$1,628,100$0$9,497,250$16,371,450$6,241,050$7,326,450 1998$0$0$0$0$0$699,300$0$0 1999A$9,049,320$5,662,440$2,989,980$1,190,700$952,560$846,720$5,768,280$0 1999B$0$0$0$0$0$0$0$5,300,000 2001$0$0$0$0$0$0$15,416,400$6,733,600 2003$16,956,770$9,041,190$2,505,390$1,815,500$0$1,016,680$4,756,610$217,860 2004A$30,000,000$0$0$0$0$0$0$0 2004B$4,847,160$5,101,245$195,450$293,175$605,895$801,345$7,700,730$0 2004C$0$0$0$1,678,420$0$201,199$3,415,082$0 2004D$0$0$0$0$0$259,200$0$0 2004ID$0$0$0$0$0$3,887,493$0$0 Subtotal$61,938,650$22,880,175$7,318,920$4,977,795$11,055,705$24,083,387$43,298,152$19,577,910 Unknown$6,907,491$2,551,631$816,217$555,131$1,232,949$2,685,815$4,828,675 Total$68,846,141$25,431,806$8,135,137$5,532,926$12,288,654$26,769,202$48,126,827$195,130,694 Source: Current outstanding principal from HawaiÓi County Finance Depart original bond issue from Table 96. HÓC\INAÐIFSSeptember 14, 2006, Page 108 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY APPENDIX C: DEMOGRAPHIC DATA APPENDIX C: DEMOGRAPHIC DATA For the impact fee analysis, it is important to know both the ex development and the number of residents associated with each dwe compile an estimate of existing dwelling units by type in HawaiÓ Census counts of housing units with building permit data on the constructed since the census enumeration. As shown in Table 98, it is estimated that HawaiÓi County currently has about 58,772 single-family units and 17,153 multi-family units, for a total of about 75,925 existing dwelling units. Table 98 EXISTING DWELLING UNITS BY HOUSING TYPE 20002000-20052006 Housing TypeUnitsPermits Estimate Single-Family Detached48,618 10,154 58,772 Multi-Family14,056 3,097 17,153 Total 62,67413,251 75,925 Source: 2000 units from the U.S. Census; 2000 to 2005 building permits by housing type from Hawaii County. An important input into the impact fee calculations is the number of persons associated with dwelling units of various housing types. The best available dat HawaiÓi County is the 2000 U.S. Census. As shown in Table 99 below, average household size varies by housing type, ranging from 2.26 persons per multi-family unit to 2.87 persons per single-family detached unit. Table 99 AVERAGE HOUSEHOLD SIZE BY HOUSING TYPE, 2000 HouseholdOccupiedAvg. Housing TypePopulationUnits HH Size Single-Family Detached124,02243,2812.87 Multi-Family21,9049,7042.26 All Housing Types145,92652,9852.75 Source: 2000 U.S. Census for the County of HawaiÓi, Summary File 3 (wei sample data). In addition, data on the average household size of single-family detached units by number of bedrooms is available from 2000 Census five-percent sample data for geographic areas containing at least 100,000 residents. As can be seen in Table 100, single-family average household size in HawaiÓi County is strongly related to the number of bedrooms in the dwel residents in an occupied single-family detached dwelling unit in home to 4.22 for a home with five or more bedrooms. The overall average single-family household size derived from the 5-percent sample (2.92) is slightly higher than the figure derived from the 1-in- 6 sample data for HawaiÓi County (2.87). HÓC\INAÐIFSSeptember 14, 2006, Page 109 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Table 100 AVERAGE HOUSEHOLD SIZE BY BEDROOMS Avg. HH Sample Occupied Size BedroomsHouseholdsPersonsUnits Up to Two1,025 40,522 15,918 2.55 Three1,327 60,338 20,293 2.97 Four322 17,788 5,095 3.49 Five or more94 6,329 1,501 4.22 All Single-Family2,768 124,977 42,807 2.92 Source: 2000 U.S. Census Public Use Microdata Sample (PUMS) 5% sample da of HawaiÓi PUMA 00200. While the only measure of dwelling unit size recorded by the Cen recommended that the fees be based on square footage rather than number of bedrooms. Although some jurisdictions charge impact fees on the basis of bedrooms, it can be an administrative challenge to determine the number of bedrooms when there is a financial incentive to disguise bedrooms as something else (a den or storage room, for example). An alternative is to translate bedrooms into size categories. Figure 12 To determine a relationship between the unit square RESIDENTS BY UNIT SIZE footage, bedrooms and household population in HawaiÓi County, the consultant compiled data on all 630 single-family homes listed for sale in the County from the National Association of Realtors website (www.realtor.com) on October 19, 2005. These on-line listings give square footage and the number of bedrooms for each home offered for sale. A variable for average household size was added, consisting of the average household size multipliers by housing type and number of bedrooms derived from 2000 U.S. Census sample data. Regression analysis was then performed to determine the relationship between unit size in square feet and persons residing in the unit. Both linear and logarithmic regressions were performed. The linear regression was statistically significant, with the linear 1 equation accounting for 35 percent of the variation. The resulting linear equation (shown in Figure 12) shows the rel and dwelling unit size for single-family unit. The graphed relationship shows that there is a strong correlation between household size and unit size, and that the l likely to contain. As can be seen in Table 101, a single-family square feet has an average of 2.78 persons, while a unit with 4,000 square feet averages 3.68 residents. 1 The linear equation for single-family units is y = 0.000223 * x + 2.6732 (r-square = 0.354597), where x is square feet of living area and y is household size. HÓC\INAÐIFSSeptember 14, 2006, Page 110 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Table 101 SINGLE-FAMILY HOUSEHOLD SIZE BY SQUARE FEET ApproximateAverage midpoint Household (sq. ft.) Size Dwelling Size Category Less than 1,000 sq. ft.500 2.78 1,000 - 1,499 sq. ft.1,250 2.95 1,500 - 1,999 sq. ft.1,750 3.06 2,000 - 2,999 sq. ft.2,500 3.23 3,000 - 3,999 sq. ft.3,500 3.45 4,000 sq. ft. or more4,500 3.68 Source: Average household size is derived by substituting the midpoint solving for y in the equation described in the preceding text. Existing nonresidential floor area and corresponding land use codes for existing parcels of land in HawaiÓi County was provided by the County Tax Assessor. The bui nonresidential development in HawaiÓi County was estimated by summing the total square footage for all applicable parcels. Table 102 summarizes the nonresiden by land use. Table 102 NONRESIDENTIAL LAND USE, 2005 Existing Land UseSq. Ft. Hotel/Motel3,742,488 Commercial/Retail 5,306,676 General Office3,766,361 Medical Office268,618 Other Institutional784,522 Hospital245,374 Nursing Home215,819 Religious Institution401,833 School608,152 Industrial417,246 Warehouse7,956,165 Mini-Warehouse248,253 Total Nonresidential Square Footage23,961,507 Source: HawaiÓi County, October 5, 2005; data derived from tax r January 1, 2005 assessment date for 2005 tax year. HÓC\INAÐIFSSeptember 14, 2006, Page 111 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY this page intentionally left blank HÓC\INAÐIFSSeptember 14, 2006, Page 112 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY APPENDIX D: FUNCTIONAL POPULATION APPENDIX D: FUNCTIONAL POPULATION One approach for estimating the service demands of various land is known in impact fee literature as Ñfunctional population.Ò F converted into Ñequivalent dwelling units.Ò The equivalent dwelling unit, or EDU, represents the impact of a typical single-family dwelling on the demand for pub To a large extent, the demand for public safety services is proportional to the presence of people. The functional population concept is analogous to the concept of It represents the number of Ñfull-time equivalentÒ people present at the site of a land use. To a certain extent, however, the demand for public safety services is related to real property itself, regardless of whether it is occupied, as well as to the presence public safety services during the nighttime hours, when most peo attributed solely to residential development. The residential functional population is considerably simpler th is assumed that people spend one-half of their time at home. Th from home accounts for working, shopping and other away-from-hom residential development essentially distributes the cost of public safety facilities evenly between residential and nonresidential development. For residential uses, then, equivalent dwelling units are calculated by first dividing average household size in half to determine equivalent persons per unit, then dividing by the equivalent persons per single-family unit to determine equivalent dwelling units. The equivalent dwelling units for single-family and multi-family units and hotel/motel rooms are shown in Table 103. Table 103 RESIDENTIAL EQUIVALENT DWELLING UNITS AverageEquivalent HouseholdOccupancyPersons/EDUs/ SizeFactorUnitUnit Housing Type Less than 1,000 sq. ft.2.780.501.390.97 1,000 - 1,499 sq. ft.2.950.501.481.03 1,499 - 1,999 sq. ft.3.060.501.531.06 2,000 - 2,999 sq. ft.3.230.501.621.13 3,000 - 3,999 sq. ft.3.450.501.731.20 4,000 sq. ft. or more3.680.501.841.28 Single-Family Detached2.870.501.441.00 Multi-Family2.260.501.130.78 Hotel/Motel (Room)1.340.500.670.47 Source: Average household size for single-family detached from Tables size for multi-family from Table 99; hotel/motel rooms based on one-half of average vehicle occupancy on vacation trips from U.S. Department of Transportation, National Household Travel Survey, 2001; occupancy factor assumed; EDUs per unit is ratio of functional population to functional population of single-family detached unit. HÓC\INAÐIFSSeptember 14, 2006, Page 113 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY The functional population methodology for nonresidential uses is data compiled by the Institute of Transportation Engineers (ITE) square feet is derived by dividing the total number of hours spent by employees and visitors during a day by 24 hours. Employees are assumed to spend eight hours per Visitors to nonresidential facilities are assumed to spend one h derive the nonresidential functional population estimates is sum Figure 13 FUNCTIONAL POPULATION 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 hours/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 en Using this formula and information on trip generation rates from functional population estimates per 1,000 square feet of gross floor area were calculated. These functional population estimates were then converted into equival by the functional population per single-family unit calculated i presents the results of these calculations for four general land Table 104 NONRESIDENTIAL EQUIVALENT DWELLING UNITS Func. TripPersons/Employees/Visitors/Pop/EDUs/ Land UseUnitRateTripUnitUnitUnitUnit Shopping Center/General Retail1000 sq. ft.21.471.801.9636.69 2.181.51 Office/Other Institutional1000 sq. ft.5.511.143.312.97 1.230.85 Industrial1000 sq. ft.3.481.142.081.89 0.770.53 Warehouse1000 sq. ft.2.481.141.281.55 0.490.34 Source: Trip rates are one-half average daily trip ends from Institute Trip Generation, 7th Edition, 2003, National Household Travel Survey, 2001 for following trip purposes: ÑshoppingÒ for retail, Ñto w warehouse, Ñschool/churchÒ for church and school, and Ñother family/personal businessÒ for nursing home; employees per 1,000 sq. ft. derived from trip rates per employee from ITE manual (reffice and Industrial Parks, America's Future Office Space Needs, 1990 p. 22); visitors/unit and functional population calculate on formula in Figure 13; EDUs per unit is ratio of functional population to functional population of single-family detached unit from Table 102. Total equivalent dwelling units for the HawaiÓi County can be determined based on existing land use data and EDU ratios for various land use categories. As shown i HÓC\INAÐIFSSeptember 14, 2006, Page 114 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY functional population EDUs is nearly double the total number of surprising given the size of the Big IslandÔs tourism economy. Table 105 TOTAL EQUIVALENT DWELLING UNITS ExistingEDUs/Total Land UseUnitUnits UnitEDUs Single-Family DetachedDwelling58,7721.0058,772 Multi-FamilyDwelling17,1530.7813,379 Hotel/MotelRoom10,5130.474,941 Shopping Center/General Retail1,000 sq. ft.5,3071.518,013 Office/Other Institutional1,000 sq. ft.6,2910.855,347 Industrial1,000 sq. ft.4170.53221 Warehouse1,000 sq. ft.8,2040.342,790 Total Equivalent Dwelling Units93,463 Source: Existing dwelling units from Table 98; existing hotel/motel rooms from Table 7; retail, office/institutional and industrial/utility square feet from Tab HÓC\INAÐIFSSeptember 14, 2006, Page 115 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY this page intentionally left blank HÓC\INAÐIFSSeptember 14, 2006, Page 116 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY APPENDIX E: EXISTING PARK FACILITY INVENTORY APPENDIX E: EXISTING PARK FACILITY INVENTORY Table 106 EXISTING PARK FACILITY INVENTORY Total Dev. Park NameAcresAcres HonokaÓa Park27.727.712111212 HoÓolulu56.253.411114135 Pa hoa Nbrhd Facility70.99.211211 Gilbert Carvalho Park15.88.011111 Herbert Shipman Park*10.910.9 11212 Herbert Shipman Park*6.06.0 3 Kailua Park*34.934.9 121115134 Kamehameha Park18.518.511113112 Waimea Park10.610.61111121 Subtotal, District Park251.5179.263075045207603119100 ÓAhalanui/Maunakea Pond5.95.921 Carlsmith Beach Park6.92.5111 Honaunau Boat Ramp*1.21.2 1 Honl's Beach Park0.70.71 KahaluÓu Beach Park4.24.2221 Kalapana Beach (Area B)15.00.0 Keokea Beach Park7.13.0122 Kohanaiki109.00.011 LaÓaloa Bay Beach Park1.51.5 Leleiwi Beach Park1.10.0 Magic Sands Beach Park0.90.911 Reeds Bay Beach Park2.32.31 Richardson Ocean Park4.64.611 Bakers Beach*3.10.0 Harry K Brown Park22.90.0 Hawaiian Paradise Park6.00.0 Hilo Bayfront Beach5.25.218 HoÓokena Beach Park3.23.21111 HonoliÓi Beach Park*2.82.8 11 Isaac Hale Memorial Park26.52.11111 J. Kealoha Beach Park3.53.511 Kahakai Park3.60.0 Kanakea Pond2.42.4 KapaÓa Beach Park26.32.0111 Kawaihae Canoe Area4.70.011 HÓC\INAÐIFSSeptember 14, 2006, Page 117 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Total Dev. Park NameAcresAcres Kolekole Gulch Park5.54.0241 Kuhio KalanianaÓole Park2.82.81 Lehia Beach Park54.70.0 Leleiwi Beach Park30.912.018 Mahukona Beach Park*2.72.0 1111 Mahukona Wharf*0.40.4 1 Manini Point5.60.0 MiloliÓi Beach Park1.41.41111 Mokuola Island3.13.1111 Onekahakaha Beach Park34.721.0251 Pahoehoe Beach Park1.31.31 PunaluÓu Beach*6.96.9 1121 Reeds Bay Beach Park4.14.11 Spencer Park13.49.53111 Whittington Beach Park0.80.8131 Lauphoehoe Pt Beach24.117.92413111 •• Subtotal, Beach Park463.0135.2300049123010020000094 Arthur C. Greenwell Park2.72.711111 Clem Akina Park4.84.81 Frank M. Santos Park11.011.0111111 Haina Park3.63.611 Hakalau Veterans Park6.16.11112 H. Higashihara Park5.35.31111111 Hawaiian Beaches Park11.08.0111221 HI Ocean View Est.4.04.01111111 Hilo Bayfront Park45.645.61112 Kalakaua Park1.21.2 Kukuihaele Park4.04.01 Kurtistown Park6.83.5111111 Mt. View Park3.83.81111 PpaÓaloa Park5.05.0112 •• ÓÓkala Park23.35.011 •••• Glenwood Park1.11.1111 Honom Park10.010.01111 •• Hualani Park4.84.811141 Kaiwiki Park5.05.0111 KulaÓimano Park28.96.0111 Malama Park10.67.0111121 MoÓoheau Park3.83.812121 HÓC\INAÐIFSSeptember 14, 2006, Page 118 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Total Dev. Park NameAcresAcres NaÓalehu Park*6.46.4 111112 PaÓauilo Park3.63.61111 Phala Park8.08.01112112 •• PanaÓewa Park6.66.61112122 Volcano Park10.04.011121 Waiakea Waena Park3.83.8112 Waiakea-Uka Park7.77.7112 Waikaumalo Park3.41.011 Waikoloa Comm. Park*22.54.0 1121 Wainaku Playground*5.05.0 11 Waiohinu Park4.44.41111111 Waimea Church Row Park2.82.8 Subtotal, Comm. Park286.6208.621801321131335141351314101 ÓAinako Park3.03.0111 Ahualani Park3.53.51111 KaÓumana Lani Park4.70.0 KaÓumana Playground1.50.0 Kona Hillcrest Park1.61.6111 Kona Scenic Park5.05.011211 PepeÓekeo Playground*4.94.9 11 Waikoloa Park4.34.3111211 ÓAinaola Park5.95.91111111 AliÓi Kai Park1.60.0 Kailua Playground0.70.7111 Lincoln Park2.62.614214 Lokahi Park7.77.71112 Machado Acres Park7.90.0 Mohouli Park4.04.01111112 University Heights Park4.34.3111 HI Ocean View Estates72.00.0 Keikiland Playground1.91.9111 Laupahoehoe Playground0.50.511 Subtotal, Neighborhood137.649.912009058011382073000 Waimea Church Row2.802.80 Happiness Gardens1.371.371 Kaumana Caves4.870.5011 Waikui Pond0.650.65 Liholiho Garden0.180.18 HÓC\INAÐIFSSeptember 14, 2006, Page 119 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Total Dev. Park NameAcresAcres Liliuokalani Gardens19.5419.5411 Waipio Look Out0.950.9511 Kalakaua Park1.181.18 Subtotal, General Park31.5427.17300103000000000000 A.J. Watt Gym2.192.191 E. HawaiÓi Cultural Ctr0.570.571 Hilo Drag Strip70.6670.661 Hilo Motorbike Track90.000.001 Kona Imin Ctr2.552.001 Konawaena Swim Pool1.001.001 Laupahoehoe Gym0.500.50 Piihonua1.650.00 Pi'ilani Elderly Complex1.871.871 Veterans Center5.620.00 Wainaku Gym2.911.001 Hakalau Gym1.821.821 Halawai3.203.201 Hilo Armory1.021.021 Hilo Muni. Golf Course164.98164.98 Hilo Skeet Range113.385.0011 Honaunau Rodeo Arena6.136.131 Panaewa Equestrian Ctr121.3150.001 Panaewa Rainforest Zoo51.0010.001 Waiaea Rec. Center1.761.761 Honokaa Rodeo Arena8.008.001 Hoolulu Complex56.2053.35 Hilo Senior Ctr/Kamana3.803.801 N. Kohala Senior Ctr1.001.001 Pomaikai Senior Ctr0.960.961 Lily Yoshimatsu SC0.720.721 Puna Rec Complex13.380.00 Subtotal, Other728.18391.53619111030000000000 Total1,898.4991.678129809332522662429742126295 * Park property acquired through lease, right-of-entry or joint- Source: HawaiÓi County Department of Parks and Recreation. HÓC\INAÐIFSSeptember 14, 2006, Page 120 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Table 107 NON-STANDARDIZED PARK FACILITY INVENTORY OriginalCost Current FacilityYearCost IndexCost Hilo Drag Strip1978$1,138,5702.774$3,158,393 Hoolulu Park Grandstand1971$1,186,2114.870$5,776,848 Onekahakaha Beach Outdoor Stage #41948$7,15416.703$119,493 Panaewa Equestrian Center Stable1979$41,5042.564$106,416 Panaewa Rainforest Zoo2002$367,6271.178$433,065 Panaewa Zoo Complex1977$1,031,7062.989$3,083,769 Panaewa Zoo Complex1977$350,0002.989$1,046,150 Shoro-an Tea House1997$107,0001.322$141,454 Shoro-an Tea House1997$503,6331.322$665,803 Waimea Park Grand Stand Complex1994$44,1501.424$62,870 Subtotal, Special Facilities$4,777,555$14,594,261 Hilo Muni Golf Course Maint Shop1971$69,5244.870$338,582 Hilo Muni Golf Course Work Shed1950$2,68115.098$40,478 Hilo Muni Golf Cr SE Cart Stor Bldg1975$28,7723.481$100,155 Hilo Muni Golf Crse Club House/Patio1965$32,9887.930$261,595 Hilo Muni Golf Crse Range Complex1996$500,0001.370$685,000 Hilo Muni Golf Crse Range Develop1977$106,9042.989$319,536 Hilo Muni Golf Crse Restroom, Shelter1974$28,4403.812$108,413 Muni Golf Course Greenhouse1968$2,1246.667$14,161 Muni Golf Course Greenhouse1968$2,1246.667$14,161 Papakou Club House Impr2004$185,6591.082$200,883 Papakou Club House Impr2004$185,6591.082$200,883 Subtotal, Golf Course Facilities$1,144,875$2,283,847 Hilo Civic Auditorium1958$455,18710.145$4,617,872 Hilo Civic Auditorium Butler Bldg1987$40,4641.748$70,731 Hilo Civic Auditorium Butler Bldg1987$40,4641.748$70,731 Hilo Civic Auditorium Butler Bldg1987$69,9731.748$122,313 Hilo Civic Auditorium Butler Bldg1987$69,9731.748$122,313 North Kohala Civic Center1974$308,0003.812$1,174,096 Waimea Civic Center1974$507,0003.812$1,932,684 Subtotal, Civic Centers and Auditoriums$1,491,061$8,110,740 Total$7,413,491$24,988,848 Source: County of HawaiÓi Building and Improvement Inventory, July 2005; cost index based on the Construction Cost Index for June 2006 from Engineering News-Record. HÓC\INAÐIFSSeptember 14, 2006, Page 121 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY this page intentionally left blank HÓC\INAÐIFSSeptember 14, 2006, Page 122 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY APPENDIX F: WASTEWATER FACILITY INVENTORY APPENDIX F: WASTEWATER FACILITY INVENTORY Table 108 WASTEWATER FACILITIES INVENTORY Original Cost Current FacilityYearCost IndexCost Public Service Center-sewer1979$164,3682.564$421,438 Keawe-Kilauea Interceptor Line1935$61,44731.818$1,955,123 Kailua-Kona Sewerage Sys Phase i1964$283,2238.226$2,329,793 Wailoa Force Main & Kal Interceptor1965$897,4587.93$7,116,841 Keawe-Kilauea Interceptor1966$789,0217.556$5,961,841 Kailua-Kona Sewerage Sys Phase ii1973$963,4324.063$3,914,425 Hilo Sewer System Phase Iii1977$1,078,3322.989$3,223,135 Kawili St Sewer Ext1978$142,0202.774$393,962 Papaikou-Paukaa Sewerage System i1986$236,9071.793$424,774 Papaikou-Paukaa Sewerage System i1986$144,2611.793$258,660 Papaikou-Paukaa Sewerage System i1986$835,9961.793$1,498,941 Papaikou-Paukaa Sewerage System ii1988$232,4391.704$396,076 Papaikou-Paukaa Sewerage System ii1988$1,056,2131.704$1,799,787 Papaikou-Paukaa Sewerage System ii1988$136,2731.704$232,209 Kapehu Sewerage System1988$44,8731.704$76,464 Kapehu Sewerage System1988$345,4051.704$588,570 Kapehu Sewerage System1988$28,4381.704$48,458 Kuakini Interceptor A1988$286,3761.704$487,985 Kuakini Interceptor A1988$747,1731.704$1,273,182 Kuakini Interceptor A1988$122,2931.704$208,387 Kuakini Interceptor B1988$193,2151.704$329,238 Kuakini Interceptor B1988$1,181,8141.704$2,013,811 Kuakini Interceptor B1988$200,7331.704$342,049 W-hselot Interceptor Sewer1992$973,4641.545$1,504,002 Onekahakaha Beach Park Sewer1996$464,8871.37$636,895 Kalanianaole Collector Sewer1997$129,6161.322$171,353 Kalanianaole Collector Sewer1997$1,415,6611.322$1,871,504 Kalanianaole Collector Sewer1997$1,200,0001.322$1,586,400 Alii Dr Interceptor Sewer/Force II1997$3,836,8591.322$5,072,327 Papaikou Sewer System1998$338,6441.301$440,575 Papaikou Sewer System1998$2,008,1631.301$2,612,620 Papaikou Sewer System1998$341,0001.301$443,641 Keakehe Force Main1998$1,768,1881.301$2,300,413 Keakehe Force Main1998$1,708,0001.301$2,222,108 Keakehe Force Main1998$227,7331.301$296,281 Waiakea Houselot Interceptor Sewer1998$743,8041.301$967,689 Waiakea Houselot Interceptor Sewer1998$229,6601.301$298,788 Waiakea Mill Pond Sewer1998$1,581,3101.301$2,057,284 Waiakea Mill Pond Sewer1998$650,0001.301$845,650 HÓC\INAÐIFSSeptember 14, 2006, Page 123 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Original Cost Current FacilityYearCost IndexCost Ainako Interceptor Sewer2000$2,019,1741.238$2,499,737 Ainako Interceptor Sewer2000$3,000,0001.238$3,714,000 Waiakea Ctr/makaala-leilani Sewer2000$1,000,0001.238$1,238,000 Waiakea Ctr/makaala-leilani Sewer2000$405,4921.238$501,999 Alii Dr Intrceptr Sewr&force Ph III2000$2,029,2811.238$2,512,250 Alii Dr Intrceptr Sewr&force Ph 12001$3,255,2721.214$3,951,900 Hilo Sewer System Rehab2001$2,659,8341.214$3,229,038 Paukaa Comm Collective System Ph II2002$2,301,9271.178$2,711,670 Waiakea Hselot Collector Systm Ph II2002$5,505,9041.178$6,485,955 Subtotal, Collection$49,801,214$85,045,790 Wailuku Sewer Pump Stn1936$34,45331.818$1,096,215 Kailua-kona Pump Stn1964$100,0008.226$822,600 Pua Ave Sewage Pumping Stn1966$337,3567.556$2,549,062 Wailoa Sewage Pumping Stn1966$757,8867.556$5,726,585 Hale Halawai Sewer Pump Stn1995$107,6551.407$151,471 Pua Sewage Pump Stn1998$947,6301.301$1,232,867 Pua Sewage Pump Stn1998$3,159,6841.301$4,110,749 Pua Sewage Pump Stn1998$1,983,7441.301$2,580,851 Kealakehe Sewage Pump Stn1998$1,134,1091.301$1,475,476 Kealakehe Sewage Pump Stn1998$3,674,3761.301$4,780,363 Kealakehe Sewage Pump Stn1998$572,0001.301$744,172 Holualoa Sewage Pump Stn1999$20,4981.271$26,052 Holualoa Sewage Pump Stn1999$3,095,0761.271$3,933,842 Waiaha Sewage Pump Stn2001$3,697,8931.214$4,489,242 Wailuku Sewage Pump Stn2002$521,9921.178$614,907 Banyan Dr Sewage Pump Stn2003$463,1771.135$525,706 Subtotal, Pumping$20,607,528$34,860,160 Hilo Ocean Outfall Line1964$840,8108.226$6,916,499 Kailua-kona Treatment Plant1964$235,0008.226$1,933,110 Hilo Ocean Outfall Line Ext1965$556,1457.93$4,410,233 Hilo Sewer Treatment Plant1965$1,166,6527.93$9,251,551 Keauhou Treatment Plant1971$1,221,3984.87$5,948,208 Kulaimano Sewer System & Plant1979$2,724,9192.564$6,986,691 Kulaimano Sewer System & Plant1979$310,0002.564$794,840 Kulaimano Sewer System & Plant1979$635,4622.564$1,629,325 Papaikou Sewer Plant1982$2,525,2672.013$5,083,362 Papaikou Sewer Plant1982$399,9202.013$805,039 Papaikou Sewer Plant1982$441,8422.013$889,428 Papaikou Sewer Plant Fuel Tank1994$30,9631.424$44,091 Kulaimano Sewer Stn Fuel Tank1994$30,9631.424$44,091 Hilo Wastewater Influent/Eff Line1998$8,690,9851.301$11,306,971 HÓC\INAÐIFSSeptember 14, 2006, Page 124 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Original Cost Current FacilityYearCost IndexCost Hilo Wastewater Influent/Eff Line1998$1,460,0571.301$1,899,534 Hilo Wastewater Primary Facility/Ad1998$12,050,0521.301$15,677,117 Hilo Wastewater Primary Facility/Ad1998$9,400,1561.301$12,229,602 Hilo Wastewater Primary Facility/Ad1998$7,157,4891.301$9,311,893 Kealakehe Wastewater Treatment Plnt1998$11,366,9241.301$14,788,367 Kealakehe Wastewater Treatment Plnt1998$4,112,8801.301$5,350,857 Kealakehe Wastewater Treatment Plnt1998$6,711,0161.301$8,731,031 Subtotal, Treatment$72,068,897$124,031,840 Total, Wastewater Facilities$142,642,006$244,359,228 Source: County of HawaiÓi Building and Improvement Inventory, July 2005; cost index based on Construction Cost Index for June 2006 from Engineering News-Record. HÓC\INAÐIFSSeptember 14, 2006, Page 125 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY this page intentionally left blank HÓC\INAÐIFSSeptember 14, 2006, Page 126 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY APPENDIX G: STATE IMPACT FEE LAW APPENDIX G: STATE IMPACT FEE LAW Title 6. County Organization and Administration Subtitle 1. Provisions Common to All Counties Chapter 46. General Provisions [PART VIII.] IMPACT FEES §46-141 Definitions. As used in this part, unless the context requires otherwise: "Board" means the board of water supply or water board of any co "Capital improvements" means the acquisition of real property, improvements to expand capacity and serviceability of existing public facilities, and the development of new public facilities. "Comprehensive plan" means a coordinated land use plan for the d within the jurisdiction of a county based on existing and anticipated needs, showing existing and proposed developments, stating principles to which future develo the county's general plans, development plans, or community plan development should be controlled. In the case of the city and co maps shall be equivalent to the comprehensive plan required in t "County" or "counties" means the city and county of Honolulu, th Kauai, and the county of Maui. "Credits" means the present value of past or future payments or limited to, the dedication of land or construction of a public f cost of existing or future public facility capital improvements, except for contributions or payments made under a development agreement pursuant to section 46-123. "Developer" means a person, corporation, organization, partnership, association, or other legal entity constructing, erecting, enlarging, altering, or engaging in any development activity. "Development" means any artificial change to real property that permit as appropriate, including, but not limited to, construction, expansion, enlargement, alteration, or erection of buildings or structures. "Discount rate" means the interest rate, expressed in terms of a adjust past or future financial or monetary payments to present "Impact fees" means the charges imposed upon a developer by a co portion of the public facility capital improvement costs require is collected, or to recoup the cost of existing public facility capital improvements made in anticipation of the needs of a development. HÓC\INAÐIFSSeptember 14, 2006, Page 127 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY "Needs assessment study" means a study required under an impact need for a public facility, the cost of development, and the lev projects future public facility capital improvement needs; provi consideration and incorporate any relevant county general plan, plan. "Non-site related improvements" means land dedications or the provision of public facility capital improvements that are not for the exclusive use or benefit of a development and are not site-related improvements. "Offset" means a reduction in impact fees designed to fairly ref public facility capital improvements provided by a developer pur "Present value" means the value of past or future payments adjus rate. "Proportionate share" means the portion of total public facility capital improvement costs that is reasonably attributable to a development, less: (1) Any credits for past or future payments, adjusted to present improvement costs made or reasonably anticipated to be contribut user fees, debt service payments, taxes, or other payments; or (2) Offsets for non-site related public facility capital improve pursuant to county land use provisions. "Public facility capital improvement costs" means costs of land acquisition, construction, planning and engineering, administration, and legal and financial consulting fees associated with construction, expansion, or improvement of a public facility. Public facility include expenditures for required affordable housing, routine and periodic maintenance, personnel, training, or other operating costs. "Reasonable benefit" means a benefit received by a development f improvement that is greater than the benefit afforded the genera the impact fees. Incidental benefit to other developments shall development. "Recoupment" means the proportionate share of the public facility capital improvement costs of excess capacity in existing capital facilities where excess capacity has been provided in anticipation of the needs of a development. "Site-related improvements" means land dedications or the provision of public facility capital improvements for the exclusive use or benefit of a development or for the provision of safe and adequate public facilities related to a particular development. [L 1992, c 282, pt of §2; am L 2001, c 235, §1] §46-142 Authority to impose impact fees; enactment of ordinances required. HÓC\INAÐIFSSeptember 14, 2006, Page 128 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY (a) Impact fees may be assessed, imposed, levied, and collected (1) Any county for any development, or portion thereof, not involving water supply or service; or (2) Any board for any development, or portion thereof, involving provided that the county enacts appropriate impact fee ordinances or the board adopts rules to effectuate the imposition and collection of the fees within their respective jurisdictions. (b) Except for any ordinance governing impact fees enacted befor imposed only for those types of public facility capital improvem county comprehensive plan or a facility needs assessment study. service standards for each type of facility subject to an impact apply equally to existing and new public facilities. [L 1992, c 282, pt of §2; am L 1996, c 175, §1; am L 2001, c 235, §2] §46-143 Impact fee calculation. (a) A county council or board considering the enactment or adopt approve a needs assessment study that shall identify the kinds o shall be imposed. The study shall be prepared by an engineer, ar professional and shall identify service standard levels, project public facility capital improvement needs, and differentiate between existing and future needs. (b) The data sources and methodology upon which needs assessment shall be set forth in the needs assessment study. (c) [2004 amendment retroactive to October 1, 2002. L 2004, c 15 each impact fee shall be based upon the development and actual c expansion, or a reasonable estimate thereof, to be incurred. (d) [2004 amendment retroactive to October 1, 2002. L 2004, c 15 substantially related to the needs arising from the development share of the costs incurred or to be incurred in accommodating t seven factors shall be considered in determining a proportionate share of public facility capital improvement costs: (1) The level of public facility capital improvements required t development, based on a needs assessment study that identifies: (A) Deficiencies in existing public facilities; (B) The means, other than impact fees, by which existing deficie eliminated within a reasonable period of time; and (C) Additional demands anticipated to be placed on specified pub development; HÓC\INAÐIFSSeptember 14, 2006, Page 129 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY (2) The availability of other funding for public facility capita not limited to user charges, taxes, bonds, intergovernmental tra assessments; (3) The cost of existing public facility capital improvements; (4) The methods by which existing public facility capital improv (5) The extent to which a developer required to pay impact fees previous five years to the cost of existing public facility capital improvements and received no reasonable benefit therefrom, and any credits that may be due of such contributions; (6) The extent to which a developer required to pay impact fees may reasonably be anticipated to contribute to the cost of existing public facility capital improvements through user fees, debt service payments, or other that may accrue to a development because of future payments; and (7) The extent to which a developer is required to pay impact fe to the development of non-site related public facility capital i payable to a developer because of this provision. (e) The impact fee ordinance shall contain a provision setting forth the process by which a developer may contest the amount of the impact fee assessed. [L 1992, c 282, pt of §2; am L 2001, c 235, §3; am L 2001, c 235, §3; am L 2004, c 155, §3] §46-144 Collection and expenditure of impact fees. Collection and expenditure of impact fees assessed, imposed, lev shall be reasonably related to the benefits accruing to the development. To determine whether the fees are reasonably related, the impact fee ordinance or board r (1) Upon collection, the fees shall be deposited in a special trust fund or interest-bearing account. The portion that constitutes recoupment may be transferred to an (2) Collection and expenditure shall be localized to provide a r A county or board shall establish geographically limited benefit zones shall not be required if a reasonable benefit can be otherwise derived. Benefit zones shall be appropriate to the particular public facility and the county or in writing and disclose at a public hearing reasons for establishing or not establishing benefit zones; (3) Except for recoupment, impact fees shall not be collected fr needs assessment study that sets out planned expenditures bearin needs or anticipated needs created by the development; (4) Impact fees shall be expended for public facilities of the t reasonable benefit to the development; and HÓC\INAÐIFSSeptember 14, 2006, Page 130 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY (5) Within six years of the date of collection, the impact fees shall be expended or encumbered for the construction of public facility capital improvements that are consistent with the needs assessment study and of reasonable benefit to the development. [ c 235, §4] §46-145 Refund of impact fees. (a) If impact fees are not expended or encumbered within the period established in section 46-144, the county or the board shall refund to the developer or the dev amount of fees paid and any accrued interest. Application for a county or the board within one year of the date on which the rig refund shall be retained in the special trust fund or interest b provided in section 46-144. (b) If a county or board seeks to terminate impact fee requireme unencumbered funds shall be refunded as provided in subsection ( give public notice of termination and availability of refunds at refund shall be retained for a period of one year at the end of transferred to: (1) The county's general fund and expended for any public purpos supply or service as determined by the county council; or (2) The board's general fund and expended for any public purpose service as determined by the board. (c) Recoupment shall be exempt from subsections (a) and (b). [L 2, §14; am L 2001, c 235, §5] §46-146 Time of assessment and collection of impact fees. Assessment of impact fees shall be a condition precedent to the permit and shall be collected in full before or upon issuance of §46-147 Effect on existing ordinances. This part shall not invalidate any impact fee ordinance existing of §2] HÓC\INAÐIFSSeptember 14, 2006, Page 131 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY this page intentionally left blank HÓC\INAÐIFSSeptember 14, 2006, Page 132 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY APPENDIX H: STATE ACT 197 APPENDIX H: STATE ACT 197 CHAPTER 264 HIGHWAYS [PART VIII.] IMPACT FEES [§264-121] Definitions. As used in this part, unless the context requires otherwise: "Capital costs" means part or all of the cost for capital improv costs to acquire right-of-way, plan, design, engineer, finance, costs of management and consultant fees. Capital costs shall not other operating costs. "County" means a county having a population in excess of five hu [amended by SB 2901, sent to governor 5/8/06; effective 7/1/06] "Department" means the department of transportation. "Development" means any artificial change to real property that building permit including but not limited to construction, expansion, enlargement, alteration, or erection of buildings or structures. "Director" means the director of transportation. "Impact fee" means an assessment on a development used to increm capital costs of public highway improvements reasonably needed t "State highway improvements" means capital improvements to the physical infrastructure of state highways. [L 2004, c 155, pt of §2] [§264-122] Highway development special fund. (a) There is established in the state treasury the highway devel administered by the department, into which shall be deposited: (1) Transfers of county impact fees assessed under part VIII of state highway improvements; (2) Interest from investment of deposits; and (3) Legislative and county appropriations. (b) Moneys in the highway development special fund shall be used HÓC\INAÐIFSSeptember 14, 2006, Page 133 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY (1) Capital costs of qualifying proposed state highway improveme (2) Reevaluation of the need, geographic limitations, amount, an (3) Transfers to reimburse other special funds for expenditures funded with moneys in the highway development special fund; (4) Transfers under sections 36-27 and 36-30; (5) Refunds under section 264-125; and (6) The department's costs to implement this part, including but the highway development special fund. (c) The department may establish accounts in the highway develop implement this part and rules adopted by the department. [L 2004 [§264-123] Authority to assess impact fees; needs assessment study. (a) A county may assess, impose, levy, collect, and transfer to development pursuant to ordinances adopted under section 46-142 department is authorized to receive those funds for state highwa (b) Prior to the assessment, imposition, levy, collection, or transfer to the department of impact fees pursuant to this section, the director shall approve a needs ass kinds of state highway improvements for which the fees shall be part VIII of chapter 46. [L 2004, c 155, pt of §2] [§264-124 Impact fees; director's consent.] Notwithstanding section 264-123, no county shall assess impact f improvements without the director's consent. [L 2004, c 155, pt of §2] [§264-125] Refund of impact fees to county. Upon the request of a county, the department shall refund impact development special fund which have not been expended or encumbe under this part within six years after collection under part VII §2] [§264-126] Adoption of rules. The department may adopt rules pursuant to chapter 91 to impleme [§264-127] Limitations on actions. A civil lawsuit contesting an action by the department or a coun of chapter 46 shall be filed within sixty calendar days after the date of the action. HÓC\INAÐIFSSeptember 14, 2006, Page 134 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY APPENDIX I: NOVEMBER FOCUS GROUPS APPENDIX I: NOVEMBER FOCUS GROUPS Stakeholder Focus Groups Meetings November 18 (Kona) and 21 (Hilo), 2005 A. List of Participants (Total Participants: 18) Frederic Berg, Brookfield Homes Will Espero, DR Horton Sid Fuke, Planning Consultant Jacqui Hoover, Hawaii Leeward Planning Conference (HLPC) Keith Kato, Hawaii Island Community Development Corp. (HICDC) Kimo Lee, W.H. Shipman, Ltd. Ken Melrose, Hawaii Leeward Planning Conference (HLPC) Glenn Miyao, Wilson Okamoto Corp Bill Moore, Kohala Ranch Development Corp. Harold Murata, Self John Ray, Parker Ranch Skylark Rossetti, Hawaii Island Economic Development Board (HIED Marianna Scheffer, League of Women Voters Amy Self, Corporation Counsel Bob Stuit, Hokulia Dean Uchida, Land Use Research Foundation (LURF) Bill Walter, W.H. Shipman, Ltd. Marian Wilkins, League of Women Voters B. Written Comments Submitted by Stakeholders: 1. Impact Fees level the playing field for new projects but do little to address the increased stresses on infrastructure based on infill on existing lots. Need parallel source of funds to fulfill government portion of costs. 2. I learned a lot Ï very interesting. I hope we can follow the suggestions of Duncan Associates. We must get our act together. I hope there will be more presentations open to the general public. 3. Positive: Good Questions and Answers. Handout/powerpoint info Started Late 4. Why is impact fee good for the County of Hawaii? What problem 5. Good Presentation. Endeavor to educate the County on a variet mechanisms. Make sure ordinance recognizes previous contributions exacted Ï credits. Examine county-wide fee calculation. HÓC\INAÐIFSSeptember 14, 2006, Page 135 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY 6. There is a need for a broader look at infrastructure needs and financing to show what is the best or fairest portion of cost should be paid by impact 7. After listening to the presentation yesterday my principle concerns are the impacts on our housing programs for both low and moderate income households County had exempted units from impact fees if the units were part of our program, this appeared in rezoning approvals and in the pre-emption resolutions. If an impact fee ordinance is to be adopted I would hope that it would similarly housing otherwise it will make the homes more expensive to develop and that in turn will cause less units to be constructed. While funding infrastructure is necessary for the continued development of affordable housing I hope that it doesnÔt become a burden on such housing while other less regressive alternatives are under-utilized. 8. Hawaii Leeward Planning Conference (HLPC) had a study done that shows t growth/contribution in property taxes by the Kohala Coast resort these funds be used? At very least, need to integrate those reve fees/needs assessment. The impact fees are being considered to give the County another funding source but it does not appear that the Administration ha other funding sources. Will County acknowledge that their position on concurrency is contradictory to implementing impact fees? Substandard lots are rates just by virtue of being substandard, therefore the exempti appropriate. 9. Thank you for inviting me to this presentation. 10. Need for an overall perspective. Impact fees are one of the many ÑtoolsÒ that government has available. Impact fees need to be fair and predictable. Leveling the playin housing. C. Summary of Key Points Made by Stakeholders (written/verbal) 1. Create of a fair and predictable system 2. Exemption of existing substandard lots does not seem fair nor 3. Take a comprehensive approach and expand scope to discuss other infrastructure financing options to supplement impact fees. 4. Government should identify their role and infrastructure fina 5. Create an inclusive impact fee program - include state highwa 6. Look at the strategic issues/questions - including, how much 7. Address how impact fees will affect affordable housing. 8. Larger assessment/benefit districts are advantageous to count 9. CountyÔs position on concurrency and implementation of impact fees are contradictory. 10. Recognize previous fair share assessments and contributions HÓC\INAÐIFSSeptember 14, 2006, Page 136 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY APPENDIX J: JANUARY VIDEO CONFERENCE APPENDIX J: JANUARY VIDEO CONFERENCE Video Conference Workshop Tuesday, January 17, 2006 (Hilo, Kona, Honolulu and Austin, TX) Total Participants: 58 Questions Answered at Video Conference: 1. Q: How often does one governmental jurisdiction collect fees pitfalls or better ways you might suggest for doing this. Backg County were to collect fees for State of Hawaii facilities. A: At present, the State enabling legislation does not provide f projects. Typically, throughout the United States, school fees are collected by cities and counties for individual school districts. In Hawaii, the State functions as t State is working toward a uniform school impact fee that would affect new projects. It is probable that an amendment will be necessary to the State statute to perm road projects (at the beginning of the meeting, Planning Director Chris Yuen announced that the County has submitted a bill to accomplish such an amendment). 2. Q: I hear the problem of impacts on existing services clearly addressed. However, how is the impact of increased tax revenue resulting from new development t A: The collection of property tax revenue by the County does not ensure the construction of infrastructure to keep pace with development, or even to provide adequate infrastructure in the long term. This can be seen on the Big Island. Other taxes and fees c specific types of projects (such as the gas tax.). The need to s infrastructure is a major determinant in the need for an impact Case law requires taxes and fees paid for some capital facilities be deducted as credit against impact fees. For example, monies collected for new road construction vi against impact fees collected for construction of new roads. 3. Q: How can allowing one dwelling per lot be legal? Financing speculators? How can citizens support the adoption of impact fees? For example, how can we hel How can we get a copy of your PowerPoint for posting on waimeanp A: The issue related to the exemption of a certain class of property owners from the requirement of paying an impact fee is not resolved, and is being reviewed by t issue relates to established legal precedents that require that equitable. There are other options available to exempting certain classes of property owners, such as offering a grace period (such as a year or other time period) fo the adoption of the impact fee ordinance to come in and get a bu Citizens will be able to testify in support of a bill that adopt held at the Planning Commission and County Council. The PowerPoi HÓC\INAÐIFSSeptember 14, 2006, Page 137 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY on the Planning DepartmentÔs website through a link on the homep www.co.hawaii.hi.us/planning/ipfna.htm. 4. Q: To what extent are the various facilities to be proportion planned with the funding by the county in place? (Are we lookin am notes) A: We recognize that the full cost of funding future infrastruc fees. Impact fees can only be assessed to achieve existing levels of service within the County. Other funding will have to come from other sources. Impact fees will offer the County another tool for funding.. This project will identify the maximum impact fee that actual impact fee could be less. 5. Q: Ocean View has over 8,000 lots. If no impact fee is charg county provide infrastructure if these lots are built? A: We have to draw a distinction between on-site and off-site infrastructure. On-site infrastructure includes such things as internal subdivision roads. On-site impr collected impact fees. 6. Q: (As written) What are the specific drawbacks of having two assessment districts corresponding to the two benefit districts- seems to be discrepancy in existin which would be better reflected into assessment districts. A: The consideration of existing lots does not necessarily skew data within a single benefit district at the expense of that district, or in its favor. Assessment is bas regional facilities. The benefit of having an island-wide assessment district is that it evens out the assessment value, and there are no gross inequities in its appli 7. Q: Any better basis from other jurisdiction for basing fees data collection from one date- Oct. 19, 2005 (peak of boom in market) other jurisdictions justified seems shaky. How have square footage basis for fee? A: Impact fees based on unit size is an accepted methodology of by other jurisdictions. Data collection is based on historic data prior to October 19, 2005 going back several years. 8. Q: How can HI County support position of fees being allocate necessary schools to support new development? A: The County is not authorized to assess fees for State projects (including schools). If the DOE adopts its own impact fee system for schools, it is unclear at t administered. 9. Q: Are projected impact fees going to be comparable to existing fair share assessment of roughly $10,000/unit? This would seem to be a key factor in deciding how to deal with existing lots-any way to exempt only those lots currently owned by Hawaii Island resid HÓC\INAÐIFSSeptember 14, 2006, Page 138 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY A: At this time, it would be premature to make any comparisons b possible impact fee assessments. This information will be develo 10. Q: What are you projecting for per unit fee? A: We have not yet calculated proposed impact fees. That will ha project, after we analyze data we are collecting from a number of County agencies. 11. Q: Any major drawbacks to two separate assessment districts A: It is more complicated to calculate multiple assessment distr this. At this time, we are trying to keep the methodology simple 12. Q: Said impact fee may only be used for CIP. Is it legal to maintenance especially designed to reduce long-term capital cost A: No, this would be legally dangerous even if used for preventa clear. Architecture and design costs are allowed, but not mainte 13. Q: If I live in Puna (subdivisions) and pay an impact fee- h water and sewers get spent? Am I likely to see this as fair? A: Impact fees will only apply if the property is connected to service. If not connected, you do not pay. The Department of water charges a separate connection fee a water is not being considered as part of this project. In regard County is actually on a County system. Only those communities that are already hooked up to or are adjacent to existing service would be considered for a sewer imp 14. Q: From slides: What does ÑCredit for past property taxesÒ m A: There is a provision in the Enabling Act that requires that p toward the payment of impact fees. The Act says we must look ba would only involve the property tax. In this case, this would pr overall percentage of property taxes that were spent on qualifying infrastructure would be small. 15. Q: Will impact fees cover only roads or include fire, police A: Yes, fire, police, and parks will be included in this project cannot be covered by the County. The Department of Education is currently looking into an impact fee-type assessment. 16. Q: Resort development buyers tend to have lower impact than recommended progressive fee would burden resorts more by virtue of having a higher cost on average. A: A progressive rate is based on the size of a unit, not cost. occupancy (numbers) of a unit. Resorts during peak periods have and fire. HÓC\INAÐIFSSeptember 14, 2006, Page 139 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY 17. Q: (As written): If Impact Fees are not collected from folks building on their older subdivision lots, does this mean that the impact fees will not be funneled b In some of the older subdivisions residents are concerned about made in their communities. They are concerned about lifestyle, community environment impacts. From your experience have communities had a say on how fees are Q: (As asked): If impact fees are not collected from older subd subdivisions wonÔt benefit? A: Funds received from a district are used within that district. If an area has lots of vacant lots, little revenue is generated for parks. You pay, you benefit. You donÔt 18. Q: Are there any tales of remorse due to impact fees? A: Few and far between. Only one of our (Duncan Associates) clie to an economic downturn. When the economy picked back up and gr reinstated. 19. Q: Could the County collect impact fees for state highways w enabling legislation, extending the provisions of the state enabling act to the neighboring islands? A: As discussed previously, this is a legal question, and we bel fees for State road projects without a change in state law. A bi legislature by the County to change the state law for this purpo 20. Q: 1. How would existing fair share assessment credits be ha 2. Is there any consideration for collapsing State and County im A: If fair share assessments have already been paid, credits wou is conceivable that Ñfair shareÒ payments could completely cover development. 21. Q: Do fees go into a specific account- not a general fund, a how funds are used? A: To question #1, absolutely. To the other questions, the Coun 22. Q: If you have one county wide-assessment district are you coming up with an average county-wide cost of all the improvements necessary to maintain L growth? Then money collected may only be used in one of the 2 or are collected. So each benefit district pays and receives the co A: County wide assessment districts will be based on average cos West benefits districts must be spent in the respective benefit 23. Q: (As written): Is there any intention to use impact fees in districts where they are raised? Otherwise there will be a tendency to spend money from under pri more favored districts. HÓC\INAÐIFSSeptember 14, 2006, Page 140 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY (As asked): What about North and South? Will IF money coming ou A: Impact fees are intended to be spent in the benefit districts conceivable that monies collected in Ka`u could be spent elsewhere in the benefit district. But there would have to be some rational basis for spending in that manner the larger region. This will be discussed further into the proje benefit districts might be identified. 24. Q: (As written): Many, perhaps the majority of undeveloped existing lots are in non-conforming subdivisions where little or no county services are provided within the subdivision. If lots in non-conforming subdivisions are required to pay the same impact fees as lots in subdivisions with full-developed public infrastructure, wouldnÔt that violate the (As asked/recorded by am): I have questions on non-conforming lo they be assessed? A: Impact Fees will not address services within the subdivision boundaries of non-conforming lots. These are considered ÑinternalÒ or Ñon-siteÒ infrastructure. Only infrastructure that is of more general benefit will be funded by impact fees. The question of w non-conforming lots will be an important topic of future discuss Unanswered Questions: 25. Q: Does the Ñgrace periodÒ apply only to existing owners? Or also new owners? One-time? Spec houses? Residences? A: At the present time, consideration is being given to lots tha the bill adopting the impact fee. 26. Q: If HPP lot owners donÔt pay a sewer fee, how will they ev A: This is a good question, and relates to the long-term capital improvement plans of the County. It would be difficult, if not impossible, for the County to assess contemplate implementing within the lifetime of a capital improvements plan. There has to be a commitment on the part of the County to provide the service befo 27. Q: Currently, only limited areas within the county are servi fees be discounted for areas not serviced or planned for future extension of sewer service? If not, how would fees be distributed? A: Impact fees will be calculated for a number of different services, and assessed specifically for those services. If development occurs in an area outside the service area for a certain service, then that particular impact fee will not be assessed. 28. Q: How would the impact fees affect builders in Non-residential pre-existing subdivisions? OR: would it apply? What would residential builders be charged to bu A: At this time, we believe all new non-residential development would be assessed for impact fees, most likely at the time of building permit. A single-family dwelling would be assessed the same basic impact fee, regardless of zoning. HÓC\INAÐIFSSeptember 14, 2006, Page 141 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY 29. Q: How are impact fees administered, i.e. are there provisions/mechanisms to Ówaive feesÔ? Like the problem with fair share fees. How can we keep good old boy p A: Procedures for administration should be clarified by ordinance, as part of the bill. It should be very straight-forward to assess and keep track of assessments an 30. Q: Concern that mainland consultants were hired who are not communities. A: The consultants hired by the County include a planning firm f Associates) who have a long and impressive history working with local governments all over the United States to establish fair and reasonable impact fee system firm from Honolulu that is long-established in Hawaii, who have issues. Guidance from County agency officials (including the Planning Department) provide additional assurance that local issues and sensitivities are inc product. 31. Q: Your calculation of size to impact only works in a normal range (i.e. 1000 to 3000 sq. ft) The range in house sizes is much larger (i.e. 500-24,000+) Across th hold. How do you handle this? Are you concerned that collecting by increasing costs & risks? A: It is true that the correlation between unit size and number upper end of the typical range (about 4,000 square feet), and we do not continue to increase for very large homes. We assume that your suggestion implies that developers would not want to process subdivision requests because of the added cost related to impact fees, and therefore, the number of new developable lots would not continue. We have found this not to b Because the process establishes higher predictability and certainty to the development process, there is actually more interest in development than less, because the will be. 32. Q: Re: Needs assessment / WaÔa WaÔa Subdivision a.due to the growth in our Pahoa community, the govt. beach road maintenanceÒ to keep it in better condition to allow EMT/fire ac b.closer proximity of fire station (current volunteer truck is W c.ATVÔs being driven (noise, safety, and speeding) through neigh POLICE PATROL. d.County to take over maintaining Ódedicated to countyÔ Park- Kahaki Park- Add lavatories or portables. A: With respect to these specific needs, impact fess cannot pay salaries. They can be used for new facilities (restrooms, police 33. Q: The Ñdrill deepÒ population of KaÔu district is estimated census. Will any attempt be made to assess needs on realistic po East/West divisions of Hawaii Island compounds the neglect of So HÓC\INAÐIFSSeptember 14, 2006, Page 142 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY A: The calculations made for this project must be based on metho decision-makers. In terms of population, Census data is the data consideration the need for additional benefit districts as the s 34. Q: Impact fees should be one of many tools we explore for in A: This is a requirement of the State Enabling Act, and will be used for this project. 35. Q: Clarification on credit for past property tax payments. H A: These numbers will be calculated based on past property tax c county expenditures spent for impact fee-eligible capital improv 36. Q: Progressive rates for residential units. Concerned over legality (more of a fee/tax) and fairness issues. A: Other jurisdictions have used a similar approach with single-family dwellings. Assessment is based on degree of impact, and larger homes tend to have greater impacts based on average number of occupants. 37. Q: Legality issues on calculating impact fees county wide an A: The jurisdiction must be able to demonstrate the reasonablene value. It has been used in many other jurisdictions. 38. Q: Concern over the ability and commitment to implement and A: The administration of an impact fee system is not complex. There is an existing system of Ñfair shareÒ assessments that the County has administered for several change in operating procedures. 39. Q: Issue of county impact fees being able to fund state road A: An amendment to state law will be required to implement such 40. Q: Would impact fees be divided between West Hawaii and East fees be divided into ÑpotsÒ of money for roads, parks, schools, other infrastructure and NOT be placed into the General fund? A: Yes, impact fees collected in specific benefit districts must projects for which they have been collected (i.e., roads, parks, Collected fees will be placed in funds specific to their use. 41. Q: I am the water commissioner from North Kona. Cooperation Department is almost non-existent. Can adoption of impact fees improve this situation? Our greatest problem is use by the country of state road rights-of-w HÓC\INAÐIFSSeptember 14, 2006, Page 143 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY A: Unfortunately, an impact fee program cannot influence the use rights-of-way). 42. Q: Ocean View might have the highest number of undeveloped l already developed its own fire department, road maintenance inde community organization, grants and road maintenance fees. How wi subdivisions that have taken infrastructure step independent of A: In terms of the internal roadways that service the subdivision, these facilities cannot receive fees collected from the impact fee program because they only service the subdivision. Impact fees are collected for facilities that have regional impact or beyond. In terms of the fire station, if the County decides it needs to possible that new development could be assessed impact fees to h possible that credit could be given for funds spent by residents 43. Q: Is it the intention that the fees collected be ear marked comprise the fee? For example, if $1 of the fee was for road ÑAÒ for road ÑAÒ only? A: No, the fees will not be earmarked for specific projects, but parks, etc.) 44. Q: Can fee be used for facilities such as one stop community children? A: If the community center can be considered under any of the categories proposed for impact fee collection (e.g., parks), construction of a new center could be paid for with impact fees. Operation of the center cannot be paid for with impact fees. 45. Q: New infrastructure; what is the percentage in cost to be the percentage in cost to be covered by the county funding (i.e. A: This is a policy issue for the County. The impact fees will maintain the existing level of service that has been fully paid for by existing development. This level of service is likely to be much lower than the CountyÔs desired level of service. To achieve the desired level of service, other funding sources will be needed. 46. Q: If the impact fee is applied to a lot in Puna is it Ñfair police, fire, solid waste in another community within the benefi A: The use of collected impact fees would be intended to serve most directly the area in which it was collected. It is logical to assume that fees collected for a reg located outside of some of the individual communities within the 47. Q: The consultant recommends two possible benefit districts- recommend that impact fees be calculated countywide, based on co service. Is there a difference in current costs and levels of se Is it material? HÓC\INAÐIFSSeptember 14, 2006, Page 144 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY A: The project methodology calls for calculating an over-all County-wide level of service, and it is not intended that other separate calculations be made for East and West Hawaii. It is possible that there are some cost and level of service differences between Eas could be said of any geographic breakdown. HÓC\INAÐIFSSeptember 14, 2006, Page 145 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY this page intentionally left blank HÓC\INAÐIFSSeptember 14, 2006, Page 146 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY APPENDIX K: MARCH WORKSHOPS SUMMARY APPENDIX K: MARCH WORKSHOPS SUMMARY Compilation of Data from Ordinance Issues Stakeholder Workshops March 8, 2006 - Kona March 10, 2006 - Hilo Prepared by Alice Moon March 31, 2006 Table of Contents: The Dot Tally Evaluation Forms Compiled FacilitatorÔs Report Forms Transcribed HÓC\INAÐIFSSeptember 14, 2006, Page 147 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY THE DOT TALLY KONA: 1. Are you in favor of establishing an impact fee system to ben YES: 27 NO: 0 NOT SURE: 1- Benefits residents NOT County. A. Impact Fees Are for County roads, parks, Fire, Police, Solid AGREE: 24 DISAGREE: 1 SUGGESTIONS: 1 -Why not schools? -Water flood channels, low-income housing, SK Police station, un - Plus cost of community planning process. - Public Parking & public transportation C. Impact Fees should be assessed at the time the building permi AGREE: 30 DISAGREE: 1 SUGGESTIONS: 1 -The question is slanted, -Developer should pay impact fees. D. Developers who have paid fair share contributions or made in-kind contributions should have impact fees reduced or eliminated. AGREE: 17 DISAGREE: 10 SUGGESTIONS: -Not sure, too many ÑdealsÒ have been made in the past E. If developers dedicate land or make eligible improvements for impact fees facilities after the effective date of the ordinance they should be reimbursed from i AGREE: 12 DISAGREE: 8 SUGGESTIONS: 1 -Up to Impact Fee amount only. F. All fees should be calculated Countywide & be assessed with AGREE: 14 DISAGREE: 5 SUGGESTIONS: 10 -Use sliding fee schedule based on value/ size -Fees should be assessed by benefit district HÓC\INAÐIFSSeptember 14, 2006, Page 148 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY G. Fees should be spent on the side of the island (west or east) in which they were collected (two benefit districts) Park fees should have five benefit districts AGREE: 22 DISAGREE: 11 SUGGESTIONS: 1 -Until infrastructure ÓequilibriumÔ is reached between east and uniform application -What about north and south- 50% in one district, 50% in other d H. Rather than waive fees for affordable housing projects, the funding to pay the impact fees for such projects. AGREE: 17 DISAGREE: 1 SUGGESTIONS: 1 -ÑAffordableÒ doesnÔt work, use Ñlow incomeÒ I. Single family fees should vary by the size of the dwelling u AGREE: 23 DISAGREE: 15 SUGGESTIONS: -Also based on home value. To be based on number of occupants K. Effective date of impact fee ordinance will be one year after the adoption date, during which fair share contributions would continue. Once ordinance is in effect, fees could be gradually increased. AGREE: 11 DISAGREE: 13 SUGGESTIONS: 2 - Need longer time frame to incorporate new system _______________________________________________________ HILO: 1. Are you in favor of establishing an impact fee system to ben YES: 12 NO: 2 2. Are you in favor of establishing an impact fee system to ben YES: 25 NO: 1 NOT SURE: 11 A. Impact fees are for County roads, parks, fire, police, solid AGREE: 27 DISAGREE: 0 SUGGESTIONS: -Public Transportation -State roads -Schools HÓC\INAÐIFSSeptember 14, 2006, Page 149 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY -Public housing C. Impact fees should be assessed at the time the building permi AGREE: 21 DISAGREE: 5 SUGGESTIONS: 1 -Grace period D. Developers who have paid fair share contributions or made in-kind contributions should have impact fees reduced or eliminated. AGREE: 20 DISAGREE: 2 SUGGESTIONS: 1 -Need to be paid the difference or be credited as such E. If developers dedicate land or make eligible improvements for impact fee facilities after the effective date of the ordinance they should be reimbursed from i AGREE: 16 DISAGREE: 8 F. All fees should be calculated Countywide & be assessed with AGREE: 20 DISAGREE: 7 G. Fees should be spent on the side of the island (west or east) in which they were collected (two benefit districts) Park fees should have five benefit districts AGREE: 10 DISAGREE: 17 SUGGESTIONS: 5 -Districts should be based on the system needs/ operations -Have different districts for different infra/ services -Ditto H. Rather than waive fees for affordable housing projects, the funding to pay the impact fees for such projects. AGREE: 15 DISAGREE: 7 I. Single family fees should vary by the size of the dwelling u AGREE: 16 DISAGREE: 10 SUGGESTIONS: -Based on zoning or number of bedrooms K. Effective date of impact fee ordinance will be one year after the adoption date, during which fair share contributions would continue. Once ordinance is in effect, fees could be gradually increased. AGREE: 14 HÓC\INAÐIFSSeptember 14, 2006, Page 150 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY DISAGREE: 3 SUGGESTIONS: 3 -This is 2 questions: I agree with part one, but not with part t -Option to have fees paid over a specific period of time (Use improvement districts) -Depending on type of applicant; graduated HÓC\INAÐIFSSeptember 14, 2006, Page 151 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY EVALUATION FORMS COMPILED KONA: 1. Based on todayÔs discussion, are you in favor of establishing County of Hawaii? Yes: 21No: 2Not sure: 1Did not answer: 1Other: 0 Comments: With some revisions to the report as it stands now ! 2. Did this Stakeholder Workshop provide you with helpful inform IPFNA Project? Yes: 21No: 1 Not sure: 0 Did not answer: 2Other: 1 Comments: Not enough ! 3. Was the venue convenient and appropriate? Yes: 13No: 11 If not, why? Did not answer: 0Other: 1 Comments: KaÔu resident. ! Bad traffic to/from site. ! Very noisy. ! A venue in Kailua-Kona would have been more convenient. Yano Hal ! (highway traffic). Hot and noisy room. ! Far too much noise and crowding. ! Not good for hearing! Noisy. ! 40 miles one way? ! It was help during normal working hours making it difficult to a ! for many others. Also, geographically, having one in the north a been more convenient and more people could have attended from th Too noisy, too little time. Wrong place, wrong time, not big eno ! Too noisy outside, otherwise okay. ! Marginal for driving distance. ! Too far from Kailua and noisy! ! 4. Is there any Impact Fee-related terminology that you do not u clarification on? Priority 1 and 2 improvements - these could be spelled out (or b ! in conjunction with adoption of the ordinance. Most of it was clear. ! HÓC\INAÐIFSSeptember 14, 2006, Page 152 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY HÈÒAppropriate other funding to pay the impact fee for such proj ! oAffordable housing mean income of $52,000 is not affordable mos workers make less than $20,000. Yes, (H) affordable Housing Project ! oMulti units oDefine more, etc. oSingle-family low income housing oAHP Elderly individuals with limited government fund or income Per law, impact fees will be based on existing facility levels but West Hawaii area levels are so ! poorÈhow can we ever expect equity of facilities and still pay t All impact fees should be embarked to a special fund infrastruct ! be borrowed or used for any other purposes. Use of Ñaffordable housingÒ terminology doesnÔt work and the fed ! work. We need Ñlow income housing (rentals and for sale).Ò 5. How could we have improved this Stakeholder Workshop? Larger room so tables not so close. We had to shout to hear over ! oLarger screen or closer so back of the room could read smaller oHave runners to take questions to be answered instead of having came to out table. General Q&A time so group could benefit from discussions at othe ! Hold in a room that provides more quiet for each group. ! Facilitators should have had training and notification earlier a ! want more respect and prep time! Quiet environment and more time. ! Different location. ! Impact fees should not into the general fund. Should be assigned ! oFacility too noisy. Less participation by consultants at our table, have a runner to ! comes back with a concise answer. This gives us more time. Also, the issue is [re?] whatÔs wrong with todayÔs fair assessment fee system? So we know in what light to look at the proposed answers! More time, less confusing. Better notice/advance newspaper info, larger meeting room/quiet ! environment, held in evening so more residents could attend. Uncertain. It was well organized. ! It was a good workshop but subject is very complicated for even ! Thanks for doing it! Thoughtful process. Given the Ñrules of engagementÒ beforehand. Ex: 1.) express ? 2. ! of group. Two more workshops ! The ÑDotÒ process good except it was missing input from group di ! Page 7 of policy analogies; HRS46-146 ÑIf shallÈprecededÒÈbut as ! interprets ÑshallÒ as ÑmayÒ (discretionary). Continue to dialog. Everyone needs more education on issue. ! ________________________________________________________________ HILO: HÓC\INAÐIFSSeptember 14, 2006, Page 153 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY 1. Based on todayÔs discussion, are you in favor of establishing County of Hawaii? Yes: 17No: 1Not sure: 5Did not answer: 2Other: 3 Comments: Still depends how commercial/industrial developments are treated ! Need much more work re: rational nexus. ! Will support impact fee if it: ! oComplies with statute oMeets requirement of needs assessment study oMust be predictable oMust be reasonable, fair share and proportionate oMust show nexus oMust stay in the ÑregionÒ/ÒcommunityÒ that contributions are made contribution district = benefit district oImpact fees should be supplemented by other government-funding making fee reasonable oMust have an implementation plan Much more research necessary and time to incorporate PCDP into t ! Yes, generally. Not sure about the details. ! Yes, but not sure nexus and fair share still uncertain benefit d ! 2. Did this Stakeholder Workshop provide you with helpful inform IPFNA Project? Yes: 27No: 0Not sure: 0Did not answer: 1Other: 0 3. Was the venue convenient and appropriate? Yes: 26No: 1If not, why? Did not answer: 1Other: 0 35 min. one way ! Comments: Too noisy ! Not enough parking! ! 4. Is there any Impact Fee-related terminology that you do not u clarification on? No: 3 I learned many new terms today - Thank you! ! Effect of impact fees on commercial areas! IÔm particularly conc ! which is under onerous development regulations, has plans (sanct Downtown Hilo 2025) to develop Ñ2nd floor livingÒ and is serious Has been explained ! Not exactly sure how impact fees differ from fair share. ! 5. How could we have improved this Stakeholder Workshop? HÓC\INAÐIFSSeptember 14, 2006, Page 154 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY This issue needs to be related to the larger issues of service l ! support cost/funding, and system needs and operations. More time is needed- issues are too critical ! oBetter explanation/clarification re: COH/Public Sector contribu oClarify nexus between CDP/General Plan and Impact Fee oProcess- consultants told us that the Impact Fee process (analy based process. A connection with CDP planning process would help some of us par ! would help in Ñwrapping mindsÒ around the topics/issues that need addressing so impact fees could be implemented. A little more clarity in Q/A section (materials) ! oEx: Using bullets, rather than imbedded info oEx: Proofing carefully (alph) and being consistent with present Clarify what types of development will pay such fees before the issue of waivers is discussed. ! More time ! Better explain the methodology (maintain existing level of service) as opposed o ! methodology used on Oahu for the Ewa example. Why is it better? Seminar was positive. However, questionnaire seems so focused, w ! other points if that isnÔt going to be really discussed? It was well donÔt/informative. I felt like the idea of impact fe ! or redevelopment was purposely moved under the rug. Clarify commercial and residential I.T. ! I thought it worked really well. Thanks! ! More publicity about it. I wouldnÔt have known I could participa ! More discussion on cost recovery. How COH island wide impact fee ! highway impact fee on Oahu. Should have responded to participant [questions] before doing small group discussions. ! oShould have allowed ÑcommentsÒ to be incorporated as part of fe to adding solutions and voting on solutions. HÓC\INAÐIFSSeptember 14, 2006, Page 155 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY FACILITATORS REPORT FORMS COMPILED KONA: ISSUE A: TYPES OF FEES Kona Group 2 Summary of discussion: Is there a better method to supply water except catchment? Can impact fees remedy this if charter were changed, or what could be done? Agree that we need the fees. Would like to include water but we donÔt know how. FINAL POLL: Group checked ÑYesÒ but no number of how many polled water (see above) Kona Group 4 Summary of discussion: Can Impact fees cover public buildings? C the impact fees? Impact fees to cover new flood channels and flo Underground utilities? But lots of options discussed we had a different idea about covering flooding. (Did not do Poll) ISSUE B: EXISTING LOTS OF RECORD Kona Group 1 Summary of discussion: Why exclude Puna and Ka`u- they are lacki be included. We agree they SHOULD BE INCLUDED. We agree possibly have a share cost with County for low-income owner. Option 5: Treat everyone equally, with some subsidy to low-incom lots. One year to implement - grace period during which time fa apply. FINAL POLL: Zero for Options 1 - 4. No written number on poll o discussion above. Kona Group 2 Summary of discussion: Discussion of existing lots and how to as that we decide to add #5 that all existing lots should be assess time of pulling building permit. Option 5: We have a consensus that we want to add alternative #5 assessed an impact fee to be collected at time of pulling buildi (Did not do Poll) Kona Group 3 Summary of discussion: Puna & Ka`u donÔt have service? If not going assess fees in Puna & Kau where is money coming from? If more lots zoned than houses #1 without paying fee (if #1) double. Why shouldnÔt everyone pay? What affect on affordable housing d How can we assess three options without knowing what is wrong wi Are these options mutually exclusive? No rationale for exemptin HÓC\INAÐIFSSeptember 14, 2006, Page 156 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Option 5: Fees same across the line. All new buildings pay impa income. Progressive schedule. Option 6: Existing lots of record with existing owners of record with a grace period of 2-5 years to build without impact fee. FINAL POLL: 3 for Option 5; 1 for Option 6 Kona Group 4 Summary of discussion: Exclude Ka`u and Puna means no services. Why is there no option #5 that says we charge full fees for deve Ka`u be excluded? The poor should not have to pay impact fees fo time of permits. Option 5: We charge full fees to everyone (residence, commercial, industrial, multi-family) at building permit level. FINAL POLL: Zero for Options 1, 2 and 4. 1 for Option 3; 4 for Kona Group 5 Summary of discussion: Most of the group felt that the unintende exemption or exemption period would create negative impacts. Mo NO exemption. Most of the group would like to have the no exemp sliding scale based upon the size (square footage) of the residence. Questions arose as to what was included in the counted lots (were ag. lots included?). A quest engineering was behind the impact fee policy. Option 5: a.No exemption for existing lots, but provide a sliding scale ba b.No exemption and no sliding scale FINAL POLL: Zero for Options 1, 2 and 4; 2 for Option 3; 6 for O Kona Group 6 Summary of discussion: What is the magic of a 5-year period? Wh Does 2-5 year period provide an advantage to developers vs. loca Option 5: Bonafide farm dwelling (2nd house for workers) should advantage to big any developer over local residents. FINAL POLL: As written: Option 1 _No_ Option 2 __No_ Option 3 unconstitutional best if can include option 5 ISSUE C: TIME OF COLLECTION Kona Group 1 Summary of discussion: When fees collected a)Agree with recommendations collect at time of building permit. b)Will impact fees lead to more non-permitted (illegal) construc c)More site inspections for illegal buildings to collect impact (No ÑFINAL POLLÒ printed on worksheet) Group checked ÑYesÒ and n recommendationsÒ ISSUE D: PRE-ORDINANCE CREDITS Kona Group 4 HÓC\INAÐIFSSeptember 14, 2006, Page 157 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY No reimbursement of fees? If the fair share is less than the imp charged more? FINAL POLL: Confusing question. ISSUE E: ORDINANCE REIMBURSEMENTS Kona Group 5 Summary of discussion: Question/Comment was made that while the may be easier for administration, but it may not be fair to the the benefits of the CFD process, including fairness to the devel of fees on residents. Adjustments should be made under the Ralei money. FINAL POLL: No Vote. Kona Group 6 Summary of discussion: After ordinance date, why should develope improvements be reimbursed from impact fees? Developers should b (No ÑFINAL POLLÒ printed on that particular section of worksheet clarification ISSUE F: ASSESSMENT DISTRICTS Kona Group 5 Summary of discussion: May be unfair if same schedule used aroun arrow with this noted to point to underneath ÑFinal PollÒ) FINAL POLL: 4 Yes; 3 No ISSUE G: BENEFIT DISTRICTS Kona Group 1 Summary of discussion: We agree that there should be 9 districts The majority of fees kept in their respective districts, with ju split East/ West. FINAL POLL: Group checked ÑNoÒ but no number of how many polled. how many?Ò with: 9 as noted above Kona Group 2 Summary of discussion: Divide into East-West first, then after a period of 2 years perform a mandatory review to determine if this is a fair and workable pla (Did not do poll) Kona Group 3 Summary of discussion: Benefits should be based on needs. How d Puna & Ka`u will be isolated. FINAL POLL: [ALICE NOTES: this is confusingÈthey have written 11 for Yes, agree with 2 benefit districts then they wrote under that and circled Ñabstai with hash marks - three hash marks with Ñ4 or 5" after them and HÓC\INAÐIFSSeptember 14, 2006, Page 158 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Kona Group 4 Summary of discussion: Can we expand and benefit districts from 2-4? Can we create sub-districts within Benefit Districts? Can we list different infrastructure District? Can 50% of fees in Judicial District be spent there and 50% within district? FINAL POLL: ÑDISAGREE UNANIMOUSÒ Other Option: 50% of fees in Judicial District be spent there and 50% within district Kona Group 5 Summary of discussion: Most participants would like to have the kept as close to the impact as possible. Most of the group wante only 2, that they should be segregated East/West. Most of the group, however, would like to see more than 2 districts. Five members of the group voted to have t districts (e.g. a district for Kau, a separate district for S. K Three member of the group voted to see the benefit districts conformed with the Five proposed park districts. FINAL POLL: see below Other Options: 1 for North/South; 5 for East/West; 3 for 9 Distr park districts) Kona Group 6 Summary of discussion: Proposed park districts seem to be a fair infrastructure needs --- based on population density but might i maps for the different services -police, fire, etc.) but propose better in subsidizing to what actually exists. All services are FINAL POLL: Do you agree with the recommendation of EAST/WEST be 1? YES with equity and level of service. ISSUE H: AFFORDABLE HOUSING Kona Group 3 Summary of discussion: Rational nexus. Need, benefit, fair share-everybody pays. Capacity enhancing Inequity created-everybody pays. 1.Legal Implications 2.What is wrong with existing system- not broke why fix? Current system- before I.F. act- legal defensibility issue. Fairness issue-commercial. All not zoned not paying? Renewal issue- not getting money. County exempted co FINAL POLL: 6 agree with recommendation; 0 do not agree ISSUE I: PROGRESSIVE RESIDENTIAL FEE Kona Group 3 Summary of discussion: Should fees be based on distance from urban core? Higher level of fees- some do increase with distance- trip rates and trip length- Fees complicated- second generation fee. Boundaries can be changed-lineal cash increases with distance. Benefit district/assessment fee- Impact fee capacity enhancing new development HÓC\INAÐIFSSeptember 14, 2006, Page 159 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Charge same for every home- progressive fees. Socially regressive fee- rational nexus = supply and demand. Create a need = need to pay. Made a gesture toward affordability FINAL POLL: 5 agree with recommendation; 1 did not agree Other Option: Add value. Kona Group 6 Summary of discussion: How does this relate to multi-family? (Ohana) Should be different issue from single family. FINAL POLL: Group checked ÑNoÒ but no number of how many polled. Why? Flat fee would reflect reality of island living verses squa Other Option: Suggestion: No fees for units up to 4,500 sq. ft. ISSUE J: COST RECOVERY Kona Group 1 Summary of discussion: Impact fees can be used for studies for w PARKS, community plans purchasing easements for public access. 1 Exception where county subsidizes lower income single family lot FINAL POLL: Group checked ÑYes (with option)Ò but no number of h Other Option: 100% with exception of lower income/county subsidi Kona Group 2 Summary of discussion: Suggested to charge maximum 100% at least the system operates. We have a large shortfall on infrastructure FINAL POLL: Group checked ÑYesÒ but no number of how many polled Kona Group 6 Summary of discussion: What will the actual cost impact fees? WonÔt there be a disparity/inequity of services. East Hawaii vs. West Hawaii? Hello! FINAL POLL: Group checked ÑYesÒ but no number of how many polled ________________________________________________________________ HILO: ISSUE B: EXISTING LOTS OF RECORD Hilo Group 1 Summary of discussion: Generally, group concerns were the exclusion of fees for existing lots and national nexus for exclusion? Concurrency Resource assessments Consistency with CDPÔs general plan Option 5: Everybody pays FINAL POLL: Zero for Options 1, 2 and 3; 1 for Option 4 with con beginning point is concurrency HÓC\INAÐIFSSeptember 14, 2006, Page 160 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Hilo Group 2 Summary of discussion: Want rational nexus! What is the definition of ÑimpactÒ? What kind of facilities would be built? Is this discussion premature? Impact a constitutional issue is asking fees for existing lots? How did we get to the 64,000? How many of those are owned by ÑState of HIÒ residents? Option 5a: Everyone pays with a credit to ÑsubstandardÒ subdivis Option 6: Long term residence (sic) donÔt pay fee unless they are sell (sic) (speculator) (like state 10 year plan) Option 7: Needs more work FINAL POLL: Zero for Options 1, 2 and 4; 3 for Option 3; 5 for O Option 7 Hilo Group 3 Summary of discussion: Very complex issue; see option #5. Option 5: All previous lots pay, with an offset for low income o scale in accordance with affordable housing policy. FINAL POLL: We all agree that Option #5 should be considered. Hilo Group 4 Summary of discussion: Option 4 not viable vs. creating improvem Assessment districts Already built lots BI owners v. off-island/out of state owners- why not have everyo Option 5: Impose impact fees to all lots in existence from date because it potentially benefits the wrong people/penalizes the wrong people). No waiver period or exemption for 1 SF unit. FINAL POLL: Zero for Options 1, 2 and 4; 2 for Option 3; 4 for O Hilo Group 5 Summary of discussion: Lots of confusion about if commercial dev discussion. How are mixed used property handled? Eg. a store with residential above. Can we factor in residency/non-residency in the charge of I.F.? Are we getting all the property owners (in and out of states) voices heard? Option 5: Existing lot owners will not get assessed impact fee, if lot gets transferred, new owners get assessed impact fee. FINAL POLL: Zero for Options 1, 2 and 4; 2 for Option 3 with con 5 and 1 abstained Hilo Group 6 [ALICE NOTES: very difficult to decipher this report - some note FINAL POLL: Option 1 - 3 Option 2 - 0 Option 3 - 2 Option 4 - 1 Option 5 - 3 Collect upon 1st sale of developed property Option 6 - 1 Each district will determine its own treatment of e HÓC\INAÐIFSSeptember 14, 2006, Page 161 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY ISSUE C: TIME OF COLLECTION Hilo Group 2 Summary of discussion: Time of assessment/collection at the time Option 1: Incremental payment over time for current owners of ex arrow was drawn from this option in the summary area to option a Hilo Group 5 Can it be assured after completion, so mortgage can include it? (Group did not poll) ISSUE D: PRE-ORDINANCE CREDITS Hilo Group 4 Summary of discussion: 1. Will real property taxes be calculated into impact fee credits? *yes, studies being conducted now to ID hard numbers. 2. Is there any method t owner has already paid impact fees for a particular lot. *fees p not owners. FINAL POLL: Group checked ÑYesÒ but no number of how many polled ISSUE F: ASSESSMENT DISTRICTS Hilo Group 1 Summary of discussion: Assessment districts and benefit district related to needs? FINAL POLL: [In response to ÑDoes your group agree or disagree w group polled zero for Yes and 7 for No.] with comment: ÑSimilar Hilo Group 5 Summary of discussion: West side costs more for infrastructure so East side cost less, so different fee structure should be placed. (Group did not poll) Hilo Group 6 FINAL POLL: 4 for single district for assessment 1 for nine districts 1 not sure Idea: Zip codes per benefit district ISSUE G: BENEFIT DISTRICTS Hilo Group 1 Summary of discussion: Group questions rational nexus for impact example) and road improvements in Puna? Group questions why 5 di everything else? Consensus s is that group felt inequity due to only. Answer: Make more districts? FINAL POLL: Two benefit districts? Zero for Yes, 7 for No HÓC\INAÐIFSSeptember 14, 2006, Page 162 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY If no how many? Make more districts. 9 judicial districts. More level of service differences. Hilo Group 2 Summary of discussion: N. Kona and S. Kona should be grouped tog district. How are Ñlock boxÒ managed? Should multiple types of d Benefits, representations, cenus, judicial, parks, etc.). Distr FINAL POLL: Zero for yes; 9 for No; Comment: Needs more work Hilo Group 3 Summary of discussion: Perhaps we should look at benefit districts with a systems approach defining each district with respect to infrastructure categories. (Roads, park, fire, police, wastewater) FINAL POLL: Group checked ÑNoÒ but no number of how many polled. If no how many? 7 Hilo Group 4 Summary of discussion: 1.Will east/west benefit districts foster more divisiveness betw may help W. HI to know they are paying their own share. 2.Too broad - just East v West doesnÔt have adequate nexus. 3.Do judicial districts have to be basis of benefit district area? Benefit district boundaries need to adequately reflect situation/community relationships (volcano 4.How flexible are benefit district boundaries as system evolves 5.What factors determine district boundaries initially? 6.Why should people in an already established neighborhood pay f 7.Can benefit district be decided by up code? 8.Is there a way to differentiate fees for different types of se (parks, fire, med) and those that are regional (roads)? 9.Ex: Kapolei charges flat rate fee per permit pulled to support 10.Have improvement projects already been identified for propose FINAL POLL: 5 for Yes; 1 for No; 1 DoesnÔt want to foster furthe W. HI. Hilo Group 5 Summary of discussion: Why are the benefit districts so large? If itÔs too small, there wonÔt be enough $$$. Concerned about money collected in a benefit distric 2 districts - Some districts can share benefit i.e. regional par benefit districts. FINAL POLL: Unanimously No; Suggestion: Follow park districts Hilo Group 6 FINAL POLL: Group checked ÑNoÒ but no number of how many polled. 2 districts - 1 5 districts - 0 3 districts - 4 9 districts - 1 Comment: eliminate language ÑV.S.Ò from all presentations. HÓC\INAÐIFSSeptember 14, 2006, Page 163 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY ISSUE H: AFFORDABLE HOUSING Hilo Group 4 Summary of discussion: 1. What is the source of affordable housi 2. Will developers be assisted a fee to pay into affordable hous FINAL POLL: Group checked ÑYesÒ but no number of how many polled where money would come from. ISSUE I: PROGRESSIVE RESIDENTIAL FEE Hilo Group 2 Summary of discussion: Progressive residential fees: Yes-0, No-7 Needs more study: Yes-0, No Wrong measurement (family unit): Yes-8, No-0 Flat Fee: Yes-6, No-0 FINAL POLL: Do we agree with the recommendation? Zero for Yes; 7 more study Other Option: Flat Fee: Yes-6, No-0 ISSUE J: COST RECOVERY Hilo Group 1 Summary of discussion: 1) Where is public sector/county share? improvement and how much does county pay? 3) Impact fees that p 1)Define public/county share: existing level of service 2)Ewa model. Calculate what you want, how funded. (i.e. impact f 3)Current LOS (?) by tax revenues. Future improvements by impact 4)Are all fees expected to pay for all improvements in the futur FINAL POLL: Do we agree with the recommendation? Zero for Yes; 6 ISSUE K: PHASE-IN PERIOD Hilo Group 3 Summary of discussion: We feel there should be a phase-in period FINAL POLL: Group checked ÑNoÒ but no number of how many polled. Other Option: Payments over time, with various financing periods Hilo Group 4 Summary of discussion: If there is a phase-in period, how does that guarantee timely construction of improvements? *phase in to address county preparation for implem still continue to be collected until I.F. becomes effective. (Group did not poll) HÓC\INAÐIFSSeptember 14, 2006, Page 164 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY APPENDIX L: AUGUST WORKSHOPS SUMMARY APPENDIX L: AUGUST WORKSHOPS SUMMARY Questions Posed During Infrastructure and Public Facilities Needs Assessment Workshops Hilo (August 15, 2006) and Captain Cook (August 16, 2006) HILO 1.Question: Regarding Section 36-14(c) of the Draft Impact Fee Ordinance; on what basis shall the impact fee administrator assign priorities for allocat some reference to adopted Community Development Plans or General the allocation of funds toward clearly identified priorities adopted by the Council. It might be a good idea to suggest a process here whereby competing projects are ranked and presented as a package to the Council for final approval. Response: It is probable that determining priority for expending a collective effort of the County Council, the administration -i and the public. It would seem that the annual budgetary process improvement projects, and that adherence to CDP and General Plan to that process. 2.Question: In your discussion related to the phase-in period of mentioned in the presentation that you would like to avoid a disruptive effect on the real estate market. What kind of effect is possible? Response: The desire is to proceed with the adoption of an impac and provides builders and other residents with as much lead time system. This will avoid confusion and surprise when building per expiration of a grace period. The phase-in period would also provide administration with sufficient time to plan and implement the program by acquiring and developing the necessary tools and staff needed to ensure program operates efficiently. 3.Question: Why is there no impact fee proposed for solid waste infrastructure associated with commercial (and industrial development)? Response: Commercial entities wind up paying a tipping fee when they dispose of solid waste. This is collected when the business (or entity) either du third party to collect and dispose of solid waste. The tipping fee is a "pay as you go" system. 4.Question: Can a wastewater impact fee be effective for homes t system? Response: A wastewater impact fee will only be assessed for new the service area of existing municipal wastewater treatment plants. 5.Question: How were the maximum allowable impact fee values det HÓC\INAÐIFSSeptember 14, 2006, Page 165 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Response: They were calculated as the net cost to maintain the existing level of service, after taking into consideration other taxes and fees that would be gen available to fund capacity-expanding improvements. 6.Question: How will the expenditure of impact fees be prioritiz Response: The prioritization of spending impact fees could be a collective decision made by the Council and the Administration, with input by the public. As during the budgetary approval process, decisions could be made about which projects should receive how much money from impact fee sources. With community developm initiated island-wide, it is hoped that some prioritization of p meetings. 7.Question: I own a buildable lot right now; if I apply for a bu have to spend $12,000 extra to cover impact fees? Response: If an application is made for a building permit prior impact fee ordinance, then no impact fee will be required. Appli effective date of the ordinance will be required to pay the impa $12,000 represents the maximum amount that the administration can apply; and a decision can be made to apply a percentage of the maximum amount. 8.Question: I disagree that a one year phase-in period would lim to the real estate market of projects that are "in the pipeline." This is primarily because projects in Hawaii can be "in the pipeline" for three years before ground is financing and/or tax credits are involved (which is usually the Taking that timeline into consideration, as well as the need for affordable housing be created for impact fees? Isn't the application of "fair-share"/disproportionate share a policy call? Response: An overarching requirement for any impact fee system i proportionate share. No one can be exempted. It may be possible impact fees that qualified affordable housing units would incur, to projects that "are in the pipeline," they will not be penaliz application is made prior to the effective date of the impact fee ordinance, no impact fee will be required. 9.Question: If the County pays the impact fee for affordable hou come from, and what would the net effect of that policy be? Response: The source of the money to pay affordable housing impa by the Administration and approved by the County Council. It cou (real property taxes), grants, or other sources. It cannot be paid from the collection of impact fees, however. 10.Question: Can road fees for homes built on private roads be c Response: No, impact fees cannot be used on private infrastructu HÓC\INAÐIFSSeptember 14, 2006, Page 166 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY 11.Question: Has any consideration been given to people that als Subdivision Project Provision), which can range from $800 to $11 Response: No, not at this time. Mainly because electricity is a responsible for the installation of electrical poles. 12.Question: Hawaii County has Community Development Plans (CDPs the CDPs intersect with the "ideal" comprehensive infrastructure County to determine? This seems to be a central need for Hawaii Response: CDPs can be a valuable complement to infrastructure pl community to assist with prioritizing infrastructure projects in their region. The CIP could take cues from the General Plan and the CDPs, during the budgetary review regarding impact fees at the CDP level can be very valuable. 13.Question: Are "impact fees" and "land tax" the same thing? Response: No. Impact fees are not considered a tax. They are a o partially off-set the initial costs of infrastructure construction and financing. A land tax is on-going exaction that is paid by landowners to government, and not only financing costs, but also is used for operational funding and ma CAPTAIN COOK 1.Question: Under the current system, affordable housing is not contributions. If an impact fee ordinance is adopted, and afford be retroactive? Response: In the first place, affordable housing will not be exe system. Although the affordable housing owner or builder may not be personally responsible for impact fee payment, the fee must be paid into the impact fee sys the impact fee nor the program for payment of affordable housing retroactively. 2.Question: Has the impact fee study anticipated the tax base th Response: The Infrastructure and Public Facilities Needs Assessm maximum impact fee value that can be assessed for each of the va will be up to the County Council to determine how much of that m the County move forward with an impact fee ordinance. Certainly one of the considerations for the Council would be how much might be available from the collection receives, and how that relates to the overall budgetary requirements of the County, and the projects perceived to be necessary for funding during that budgetary cycl 3.Question: Regarding the benefit principle: wouldn't there be better representation (pay-benefit) if there were more than 4 districts? How about the same number of districts as we currently have represented by the County Council? HÓC\INAÐIFSSeptember 14, 2006, Page 167 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Response: The number of benefit districts needs to be carefully considered. If there are too many benefit districts, it may take longer to build the fund and money collected within that district within the 6-year statutory areas into larger areas, it is significantly easier to identify projects to spend collected impact fees. Ultimately, the number of benefit districts can be tailored to meet the needs of each government body and community population that adopts an impact f 4.Question: In other areas, who does the actual work for infrast government or the developer? Which do you recommend? Response: Circumstances often dictate who will actually construc improvements. Frequently, developers will construct improvements when they have been required to do so as part of the entitlement process, and then dedicate the improvements to the County. If the project is being constructed as part of a County initiative County must follow legal bidding requirements, and although a pr constructing the improvements, it is the government that actually funds the project and determines scheduling. Perhaps, we can also look forward to more collaborative efforts where government, private and community partnerships are developed to construct ne improvements. 5.Question: Kaloko paid for its own roads, water, and power line extent would Kaloko be fee-exempt today? Response: Individuals who build new homes at Kaloko after an imp adopted will be required to pay impact fees. 6.Question: How many houses have been built by anyone in Hawaii that are "affordable?" Response: Presently, data is not available to answer this quest most developers paid in lieu fees to meet affordable housing req Hawaii County Code, Chapter 11, Affordable Housing, was amended requirements which increased the per unit contributions required by developers. These new regulations should lead to the actual construction of affordable 7.Question: Can impact fees be applied to the following: Potable distributions systems); youth centers/facilities; open space lan Response: Impact fees can be used for youth centers/facilities a space to be used for parks. Impact fees cannot be applied to pot impact fee is adopted by the County Board of Water Supply (as st Board of Water Supply has already adopted connection fees that function like impact fees. 8.Question: I was under the impression that impact fees can only service at the time of adoption and spent based on a capital imp ordinance address these? HÓC\INAÐIFSSeptember 14, 2006, Page 168 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Response: The Infrastructure and Public Facilities Needs Assessm island-wide level of service for all infrastructural elements co CIP projects are included in the study analysis. Actual funding of specific projects will ultimately be the responsibility of the County Council as part of the budgetar 9.Question: How would these fees be balanced for areas with private water and/or wastewater systems (e.g., Waikoloa Village)? Response: Impact fees cannot be collected for potable water faci imposed on areas that are not part of a municipal wastewater ser 10.Question: Why is a solid waste fee not applied for uses other than single-family residential? Response: Commercial entities wind up paying a tipping fee when they dispose of solid waste. This is collected when the business (or entity) either du third party to collect and dispose of solid waste. The tipping fee is a "pay as you go" system. 11.Question: There seems to be both State and County roads in th collecting fees to improve State roads? Response: The IPFNA study calculated maximum chargeable impact f State roadways, individually. This was in response to an initiat Legislature this year, and signed by the Governor, amending HRS Counties the ability to fund State roadway projects with monies impact fees. The value of the maximum fee that could be charged higher than the fee for County roadways, and raises the overall number. It will be up to the County Council to decide if such a the maximum fee to charge. 12.Question: Would the consequences of non-payment of impact fee non-payment of taxes? Response: If impact fees are not paid, then the building permit specific development project. If taxes are not paid (assuming th "worst-case" scenario the land in question can ultimately be sei delinquent taxes. 13.Question: Who would be the impact fee administrator---the Pla Department of Finance or someone else? Response: At this time, no decision has been made regarding admi for the impact fee program. It is anticipated that the various agencies that would be involved with impact fees would cooperatively determine how to administer the program. This would include the Planning Department, the Department of Public Works, and the Finance Department. 14.Question: What is the current 140% level for median income wi HÓC\INAÐIFSSeptember 14, 2006, Page 169 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY Response: According to the most recent data found on Department Development's website (http://www.huduser.org/Datasets/IL/IL06/hi_fy2006.pdf), the current (March 8, 2006) median income for Hawaii County is $55,300. This 140% of median. 15.Question: What is the payment schedule for fees? Response: All impact fees calculated pertaining to any single development will be 100% due either at the time of issuance of building permit, approval of plan review, or final subdivision approval, depending upon when impact fees are required to be pai ordinance. 16.Question: Where do collected impact fees get deposited, and w Separate funds must be created for each category of infrastructu assessed, and must be further subdivided by the benefit district The funds would be managed by the County with the designation of from one of the county departments. 17.Question: Can the money earn interest? Response: Yes, the money can earn interest. 18.Question: If roads automatically become property of the Count "roads in limbo"/gated communities? The impact fees should be ma (bonds), if needed. Response: Roads do not automatically become property of the Coun will accept private roadways, they must meet County roadway stan 19.Question: Could impact fees provide funds for a new police or Response: Yes, impact fees can be used to build new police or fi to purchase needed equipment (fire trucks, police cars, etc.), b maintenance of buildings or equipment. 20.Question: Why not assess fees on sale of homes (and put it in Response: Impact fees cannot be assessed against existing develo whether it changes ownership. 21.Question: The biggest bottleneck to the construction of new infrastructure projects is the lack of interest by the private sector-they are too busy making big money to do County projects. Response: Throughout the course of this project, the consultant team has heard that there is a real problem within the County getting programmed infrastructure projects constructed. We have also heard a variety of reasons that contribute to this problem. responsibility, expediting infrastructure projects must be addressed by the entire community. HÓC\INAÐIFSSeptember 14, 2006, Page 170 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY APPENDIX M: PARTICIPANTS APPENDIX M: PARTICIPANTS NameAffiliation NOV. 18, 2005 FOCUS GROUP MEETING - KONA Harold MurataCommunity Member Will EsperoDR Horton Marian WilkinsLeague of Women Voters Ken MelroseHawaii Leeward Planning Conference Bob StuitHokulia Dean UchidaLand Use Research Foundation of Hawaii NOV. 21, 2005 FOCUS GROUP MEETING - HILO Frederic BergBrookfield Homes Sid FukePlanning Consultant Jacqui HooverHawaii Leeward Planning Conference Keith KatoHawaii Island Community Development Corporation Kimo LeeW.H. Shipman, Ltd. Glenn MiyaoWilson Okamoto Corp. Bill MooreKohala Ranch Development Corporation John RayParker Ranch Foundation Trustee/HLPC Skylark RossettiHawaii Island Economic Development Board Marianna SchefferLeague of Women Voters Amy SelfCorporation Counsel Bill WalterW.H. Shipman, Ltd. JAN. 17, 2006 VIDEO CONFERENCE - HILO Charles Aina, Jr.C. Aina Jr., Inc. Jason ArmstrongHawaii Tribune-Herald Stephanie Bath Hawaiian Acres Community Association Marilyn BeggWaa Waa Subdivision Peter BoucherWastewater Division Jerry Bragdon Hawaii Island Board of Realtors Joan CastbergLegislative Research Marge ElwellNaalehu Main Street/Discovery Harbor Association Byron FujimotoJas G. Glover, Ltd. Marissa FurfaroAmerican Planning Association Jon HenricksCounty Council Nelson HoEnvironmental Management Ben IshiiDepartment of Public Works Duane KanuhaHawaii Leeward Planning Conference Keith KatoHawaii Island Community Development Corporation Assistant Chief Quince MentoFire Department Mike OkumotoCounty of Hawaii Finance Treasury Division Assistant Chief Elroy OsorioPolice Department Leslie PedersenYamada Diversified HÓC\INAÐIFSSeptember 14, 2006, Page 171 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY NameAffiliation John RomanowskiJas G. Glover, Ltd. Charles StantonSierra Club - Moku Loa Group Wesley TakaiAdministrator, Real Property Tax Division Kim TavaresFern Forest Community Association Bill WalterW.H. Shipman, Ltd. Hugh WillocksHawaii Island Contractors Association J. YoshimotoCounty Legislative Research Branch JAN. 17, 2006 VIDEO CONFERENCE - KONA Laura AquinoCurrent Events Bennett MarkPlanning Department Jai ChengCounty Department of Public Works Winston ChowFirst Hawaiian Bank Linda CopmanCounty Council Malia DavidCounty Council Evelyn GonzalezOcean View Community Association Debbie HechtHawaii Island Land Trust Pete HoffmannCounty Council Bob HunterWaimea Comm. Dev. Assoc./League of Women Voters Paul KayStanford Carr Dev. Barbara KossowCounty Mayor's Office John MedlinStanford Carr Dev. Megan MitchellCounty Council Harold MurataCommunity Member Angel PilagoCounty Council Patricia ProvalenkoPATDI, Inc. John RayParker Ranch Foundation Trustee/HLPC Stan SitkoCounty Department of Finance/Real Property Tax Divisio Jeff TurnerCommunity Member George WilkinsLeague of Women Voters/Water Board Marian WilkinsLeague of Women Voters JAN. 17, 2006 VIDEO CONFERENCE - HONOLULU LeeAnn CrabbeQueen Liliuokalani Trust Scott DerricksonState Office of Planning Mary Alice EvansDBET/Office of Planning Frederic BergBerg Enterprises Hamid JahanmirState Office of Planning Dennis KimDBET/OP Robert McGrawAmerican Planning Association - Hawaii Dean NakagawaState DOT Richard PoirierState Office of Planning Laura ThielenState Office of Planning Dean UchidaLand Use Research Foundation of Hawaii MAR. 8, 2006 STAKEHOLDER WORKSHOP - KONA HÓC\INAÐIFSSeptember 14, 2006, Page 172 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY NameAffiliation Bobby CommandWest Hawaii Today Linda CopmanCounty Council LeeAnn CrabbeQueen Liliuokalani Trust Roger DilesCommunity Member Fred DuerrWESPAC & HIBT Marge ElwellNaalehu Main Street/Discovery Harbor Association Duane ErwayPlan to Protect Patty FontanillaCoconuts to You Brenda FordCitizens for Equitable and Responsible Government Diane GaylordCommunity Member Evelyn GonzalezOcean View Community Association Meg GreenwellKealekekua Ranch, Ltd. Loren HeckHOVE Road Corp. Greg HendricksonHokukano Ranch Marni HerkesKona CDP Steering Committee Pete HoffmannCounty Council Gerald HollemanOcean View Community Association Virginia IsbellCounty Council David KaawaGreen Sands Subdivision Madeline KaawaGreen Sands Subdivision Ola KochisGreen Sands Subdivision Barbara KossowCounty Mayor's Office Mary LeleiwiHawaii Community College/OCET/CDP Facilitator Lydia MaliKona CPD Steering Committee Ruby McDonaldOffice of Hawaiian Affairs Mark McGuffieHawaii Island Economic Development Board Harold MurataCommunity Member Nancy PisicchioCounty of Hawaii/HCRC Tanya PowerHawaii Island Board of Realtors Mike PriceSouth Kohala Traffic Safety Commission Bob RosehillKamehameha Schools Amy SelfCorporation Counsel Rowena TiquiKona Adult Day Center Curtis TylerKona CDP Steering Committee Shannon UnderwoodCommunity Member Lynn VanleewenOcean View Chamber of Commerce George WilkinsLeague of Women Voters/Water Board Marian Wilkins League of Women Voters Ross Wilson, Jr.Current Events Louise WinnCounty of Hawaii/ HCRC MAR. 10, 2006 STAKEHOLDER WORKSHOP - HILO Perry ArmorHilo Downtown Improvement Association Gil BardenPacific Island Investments, LLC HÓC\INAÐIFSSeptember 14, 2006, Page 173 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY NameAffiliation Stephanie Bath Hawaiian Acres Community Association Mary BegierHI Island Chamber of Commerce/HI Board of Realtors Jerry BragdonHawaii Island Board of Realtors/Eden Roc Malika BrownTsukazaki Yeh Moore Carlton ChingCastle & Cooke Mary FinleyHawaii County Economic Opportunity Council Marissa FurfaroAmerican Planning Association Fred HolschuhCounty Council Jacqui HooverHawaii Leeward Planning Conference Bob HunterWaimea Comm. Dev. Assoc./League of Women Voters Austin ImamuraPacific Rim Bank Melvin JadulangFFA Brian KajiwaraCounty Department of Public Works Keith KatoHawaii Island Community Development Corporation James KomataCounty Department of Parks & Recreation Kimo LeeW.H. Shipman, Ltd. Calvin MannCastle & Cooke Suzanne MayhewHawaiian Paradise Park Owner's Association Bruce McClureCounty Department of Public Works Robert McGrawAmerican Planning Association. Jeffrey MelroseKamehameha Schools, Land Assets Division Glenn MiyaoWilson Okamoto Corp. Bill MooreKohala Ranch Development Corp. Dean NakagawaState DOT Eileen O'Hora-WeirPakaka Road Association (Waa Waa) Mitchell OkumaCounty Real Property/Data Systems Jon OlsonPuna Traffic Safety Susan O'NeillRural South Hilo Community Association Richard OnishiCounty of Hawaii Data Systems Richard PoirierState Office of Planning Anita Politano SteckelPuueo Community Association John RayParker Ranch Foundation Trustee/HLPC Liz SalfernNanawale Community Association/Puna CDP Marianna SchefferLeague of Women Voters Stanley TamuraState Highways Division Kim TavaresFern Forest Community Association. Ronald TsuzukiState DOT Dean UchidaLand Use Research Foundation of Hawaii Mary Ann WanushHilo Downtown Improvement Association J. YoshimotoCounty Legislative Research Branch Jeff ZimpferWatershed Advisory Group/PACRC AUG. 15, 2006 STAKEHOLDER PRESENTATION - HILO Joan CastbergCounty Legislative Research Branch HÓC\INAÐIFSSeptember 14, 2006, Page 174 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY NameAffiliation Deborah ChangCounty Planning Department Gregory L. ChunKamehameha Investment Corporation Linda CopmanCounty Council Melissa Fleming Melissa FurfaroAmerican Planning Association Pete HoffmannCounty Council Esther ImamuraCounty Council Brian KajikawaCounty Department of Public Works Alice KawahaCounty Planning Department Brad KurokawaCounty Planning Department Susan Lee LoyRealtor Kimo LeeW.H. Shipman, Ltd. James LeonardPlanner Barbara LivelyCounty Council Jeff MelroseKamehameha Schools, Land Assets Division Glenn MiyaoWilson Okamoto Corp. Bill MooreKohala Ranch Development Corp. Jon OlsonPuna Traffic Safety Control Susan O'NeillRural South Hilo Community Association Shirley Pedro Marianna SchefferLeague of Women Voters Amy SelfCorporation Counsel Kim TavaresFern Forest Community Association Dean UchidaLand Use Research Foundation of Hawaii Bill WalterW.H. Shipman, Ltd. Elizabeth WeatherfordCommunity Member James WeatherfordCommunity Member Chris YuenCounty Planning Department Mike (Unknown)No last name or affiliation given AUG. 16, 2006 STAKEHOLDER PRESENTATION - KONA Jai ChengCounty Department of Public Works Peter Cooper Maile DavidCounty Council Duane ErwayPlan to Protect Kona Brenda FordCitizens for Equitable and Responsible Government Larry FordCitizens for Equitable and Responsible Government Evelyn GonzelesOcean View Community Association Debbie HechtHawaii Island Land Trust Loren HeckHOVE Road Corp. Marni HerkesKona CDP Steering Committee Virginia IsbellCounty Council Mike Kordas Ambika KosadaKona Soil & Water Con. District HÓC\INAÐIFSSeptember 14, 2006, Page 175 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY NameAffiliation Barbara KossowCounty Mayor's Office Trish Malone Jim Medlin Ken MelroseHawaii Leeward Planning Conference Megan MitchellCounty Council Harold MurataCommunity Member Diane Neuteld-Heck Bill ParisPalika Ranch Ed RapozaIsland Land Company Noelie Rodriguez Stanley Schauhuber Rowena TiquiKona Adult Day Center Sally Tukunaga Rick Vidgen Sherman Warner George WilkinsLeague of Women Voters/Water Board Marian WilkinsLeague of Women Voters Ross WilsonCurrent Events Louise WinnCounty of Hawaii/HCRC LOCAL RESOURCE TEAM Lee Ann Crabb Queen Liliuokalani Trust Mary Finley Hawaii County Economic Opportunity Council Robert HunterWaimea Comm. Dev. Assoc./League of Women Voters Keith KatoHawaii Island Community Development Corporation Robert McGrawAmerican Planning Association. Bill MooreKohala Ranch Development Corp. Harold Murata Community Member Ben TsukazakiAttorney Dean UchidaLand Use Research Foundation of Hawaii Ann UsugawaCommunity Member MAR. 8, 2006 - KONA FACILITATORS Patti Dunn-O'Connell Karen Eoff Judy Kautz Bennett Mark Megan Mitchell Louise Winn MAR. 10, 2006 - HILO FACILITATORS Barbara Lively Paul Squassoni Alex Frost Larry Brown Bob Hunter HÓC\INAÐIFSSeptember 14, 2006, Page 176 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY NameAffiliation Jane Testa AGENCY LIAISONS Assistant Chief Quince MentoFire Department Assistant Chief Elroy OsorioPolice Department Judy Ah ChinDPW - Building Division Nicholas Ah YoFire Department Dora BeckDEM - Technical Services Barbara BellDEM - Director Peter BoucherDEM - Wastewater Christopher Chin-ChanceDEM - Recycling Nancy CrawfordFinance - Deputy Director Michael DworskyDEM - Solid Waste Pat EngelhardParks and Recreation - Director Nelson HoDEM - Deputy Director Brian KajikawaDPW - Building Division James KomataParks and Recreation - Planner Barbara KossowMayor's Office Deputy Managing Director Galen KubaDPW - Engineering Bobby Jean Leithead-ToddCorporation Counsel Curtis MatsuiFire Department Bruce McClureDPW - Chief Engineer Jeremy McComberCounty Office of Housing and Community Development Dean NakagawaState - DOT Eileen O'Hora-WeirDEM - Recycling Mitchell OkumaReal Property Tax Division Michael OkumotoFinance - Treasurer Richard OnishiData Systems - Property Management Systems Brand Deana SakoFinance - Accounts, Controller Amy Self Corporation Counsel Stan SitkoFinance - Director, Real Property Tax Division Bill TakabaFinance - Director Wesley TakaiReal Property Tax Division - Administrator Stan TamuraState - DOT, Hawaii Highways Division Clayton YugawaData Systems - Director ADMINISTRATION Harry Kim Mayor, County of Hawaii Dixie KaetsuManaging Director Andy LevinExecutive Director Roy TakemotoExecutive Assistant Christopher YuenPlanning Director Brad KurokawaDeputy Planning Director Lincoln AshidaCorporation Counsel, Office of the Corporation Cou Barbara BellDirector, Department of Environmental Management HÓC\INAÐIFSSeptember 14, 2006, Page 177 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY NameAffiliation Pat EngelhardDirector, Department of Parks and Recreation Lawrence MahunaChief of Police, Police Department Bruce McClureChief Engineer, Department of Public Works Darryl OliveiraFire Chief, Fire Department William TakabaFinance Director, Department of Finance HAWAII COUNTY COUNCIL Stacy K. Higa Virginia Isbell Fred C. Hoschuh M.D. Council District 1 Donald Ikeda Council District 2 James Y. ArakakiCouncil District 3 Gary SafarikCouncil District 5 Bob JacobsonCountcil District 6 Angel PilagoCouncil District 8 Pete HoffmannCouncil District 9 PROJECT TEAM Rose AcevedoAlice Moon & Co. - Assistant James B. DuncanPresident, Duncan Associates - Impact Fee Consultant Scott EzerPrincipal, Helber Hastert & Fee - Planning Consultant Susan GagorikCo. of Hawaii, Planning Department - Project Manager Alice MoonAlice Moon & Co. - Community Liaison for Public Part. Clancy J. MullenDuncan Associates - Infrastructure Finance Director Amy Self, Esq. Co. of Hawaii, Corporation Counsel - Legal Counse John StottDuncan Associates - Infrastructure Finance Specialist And thank you to all others who contributed refreshments and off to the process. Mahalo! HÓC\INAÐIFSSeptember 20, 2006, Page 178 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY APPENDIX N: IMPACT FEE GLOSSARY APPENDIX N: IMPACT FEE GLOSSARY Assessment Districts refer to geographic areas subject to a uniform impact fee sched Benefit Districts refer to geographic areas in which impact fees collected are ea spent. Deficiencies, Existing refers to the cost to provide development existing at the time of an impact fee ordinance with the higher-than-existing level of service on which the impact fees are based. Development, Residential refers to subdivision of land for or construction of single-fam detached or multi-family dwelling units. Development, New refers to development that is not in existence at the time of a impact fee ordinance. Development, Nonresidential refers to subdivision of land for or construction of buildings uses other than residential development. Fair Share Assessments refers to the CountyÔs informal policy of requiring applicants residential and hotel rezoning to agree to pay fees at time of platting, site plan or building permit to cover primarily off-site infrastructure costs relating to roads, parks, fire, police and solid waste facilities. The amount of the fees are based on a 1990 study, w on the Consumer Price Index. Impact Fees are one-time charges assessed on new development to cover primar infrastructure costs as authorized by Chapter 46, Part VIII of Hawai'i Revised Statutes. Level of Service is a measure of the service provided by a certain type of capital facility. In impact fee analysis, level of service is typically expressed as a ratio of some characteristic of the facility type to the amount of development being served. For example, a commo parks is acres of parkland per 1,000 residents. Level of Service, Existing refers to the actual level of service provided by the County at of adoption of an impact fee ordinance. Level of Service, Higher-than-Existing refers to the calculation of impact fees based on the cost of providing a better level of service than is being provided to existing development at the time of the adoption of an impact fee ordinance. Lot of Record, Existing refers to a parcel of property in existence on the date of ado impact fee ordinance on which a building or structure could lega through the CountyÔs subdivision process. Lots in Older Subdivisions refers to lots that were created in the early 1950s and 1960s a conform to present-day subdivision code requirements. Many of these lots were created without County facilities and services: they have private roads, which HÓC\INAÐIFSSeptember 14, 2006, Page 179 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY system, no parks, police or fire substations in the vicinity, and are on cesspool. A large number of these lots are in the Puna and Ka' Districts. State Enabling Act refers to Chapter 46, § 141 to148 of Hawai'i Revised Statutes, passed by the Legislature in 1992 and authorizes counties to ass fees upon conducting a facility needs assessment study and the adoption of an impact fee ordinance. HÓC\INAÐIFSSeptember 14, 2006, Page 180 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY APPENDIX O: FREQUENTLY ASKED QUESTIONS APPENDIX O: FREQUENTLY ASKED QUESTIONS A.Types of Fees 1. Question: What types of infrastructure costs are intended to be captured by the implementation of an impact fee ordinance? Answer: The proposed impact fees would be used to construct County-owned fire, police, solid waste, and wastewater facilities. 2. Question: Why is water not included, isnÔt it a County infrastructure? Answer: The County Department of Water already imposes a connection fee building permit, which functions as an impact fee. 3. Question: Can the County use impact fees to build a public facility and turn it over to a private entity to maintain? Answer: Yes, however, the County would need to retain ownership, and th to be available for public use. 4. Question: Can County impact fees be spent on facilities owned and operated by the State of Hawai`i? Answer: Yes. The Governor signed into law Act 197, which now gives all c the ability to impose impact fees for State Highways only. 5. Question: Can impact fees be used to purchase private land to build a park? Answer: Yes, as long as appropriate powers of eminent domain (condemnat 6. Question: Can impact fees be used to improve a private road? Answer: No, impact fees can only be used on publicly-owned facilities. 7. Question: Can the County use impact fees to acquire a private road and make improvements to it? Answer: Yes, if the road is classified as an arterial or collector road classification map. 8. Question: Can impact fees be used to retire a bond that was floated to build a park? Answer: No, not if the park already exists and is serving existing devel 9. Question: Can impact fees be used for maintenance and operation costs? Answer: No. HÓC\INAÐIFSSeptember 14, 2006, Page 181 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY B.Treatment of Existing Lots 1. Question: What will happen to development of new homes on lots that already exist? Answer: The fate of existing lots of record has not been determined. A variety of different options are being considered, including: (1) waiver of impact fe developed on an existing lot of record; (2) creating a grace period, that would allow building one dwelling on an existing lot up to five years after the adopt ordinance; (3) having the County pay the impact fee for the deve an existing lot; (4) incrementally phasing the amount of the impact fee assessed over a period of years (for all development); and (5) creating a separate assessment district and benefit district for the Ka`u judicial district, and not assessing any i development, which means that no funds from collected impact fee infrastructure improvements. C.Time of Collection 1. Question: When would the impact fee be collected by the County? Answer: The impact fee can be collected at any time during the developm subdivision approval, building permit, certificate of occupancy) collect impact fees is at the time of building permit issuance. D.Pre-Ordinance Credits 1. Question: What is the CountyÔs fair share contribution progra Answer: Fair Share Contributions are a part of the County of HawaiiÔs in requiring developers applying for a change of zone to pay fees to mitigate the potential regional impacts of the property with respect to parks, fire, po Developers are assessed these contributions at the Change of Zon land to Agricultural-five acre (A-5a) and below in size, excludi rezonings. The fair share contribution is payable prior to secu Approval or Final Plan Approval. The fees are based on a 1990 Impact Fee Study and are adjusted annually beginning three years after the effective date of the ordinance, and based on the percentage change in the Honolulu Consumer Price Index (H 2. Question: What will happen to those projects that have been processed under the Ñfair-shareÒ contribution program? Answer: If developers have paid fair share contributions or made in-kin projects that have not been completed, impact fees should be red remaining development in those projects, based on the value of c (adjusted for inflation) against the value of required impact fe HÓC\INAÐIFSSeptember 14, 2006, Page 182 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY 3. Question: Are there any other ways to have accrued credits against impact fees? Answer: Yes, a portion of property taxes over the last five years has be fees in the impact fee calculations. E.Post-Ordinance reimbursements 1. Question: What would happen if developers are required to or land or make eligible improvements for impact fee facilities after the effective date of the ordinance? Answer: They should be reimbursed from collected impact fees for the va improvements. F.Assessment Districts 1. Question: What is an assessment district, and how will they be divided up within the County? Answer: An assessment district is a geographic area that is used to det impact fees to be assessed within that district. The impact fees are determined based on the existing level of service for those facilities within the district, and the value of new facilities necessary to meet the existing level of service for new developm For ease of administration, it is being recommended that the ent single assessment district, which would mean that impact fees wo throughout the county. G.Benefit Districts 1. Question: What are benefit districts and why are they important? Answer: Benefit districts are established to help determine how collect supposed to be spent. Impact fees collected in a specific benefi that benefit district, so that the people who contribute the fee construction of eligible facilities. Benefit districts are not easy to establish, because they should not be too small so that not enough monies are collected, large so that the community is unable to see benefit. H.Present Financing of New County Infrastructure and Public Faci 1. Question: What are the present sources for funding new County infrastructure and public facilities? Answer: Infrastructure and public facilities are funded through a varie road construction and improvements are primarily financed throug highway grants. They may also be funded with general obligation are a low interest method of borrowing available to government entities wherein the full HÓC\INAÐIFSSeptember 14, 2006, Page 183 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY faith and credit of the entity is pledged to guaranty the repayment of the bonds. Sewer lines and facilities are commonly financed through the StateÔs Revolvi money dedicated to wastewater treatment projects, from which loa with interest. Other public facilities are normally funded by i instance, the recently completed Kawananakoa Hall in Keaukaha wa bonds. Borrowing through revolving funds or bonds is the most c construction of non-road infrastructure and facilities that will years. The debt and interest are repaid from general fund reven usually twenty years. The largest contributor to general fund r Fair share contributions (fees paid by developers) and private contributions may also be used to fund public facilities. The CountyÔs capital improvement program (CIP) is budgeted for in the Capital Projects Fund. Most projects for infrastructure and public facilities ar The funding sources mentioned above provide the cash to complete the budgeted projects. 2. What are Real Property Taxes used for? Answer: Real property taxes help to pay for an array of services, inclu protection, civil defense, parks and recreation, elderly activities, solid waste program, mass transit, economic development, flood control, animal control, an retirement and health programs. Note: Roads, highways, and traffic signals/lights are funded pr state/federal grants-in aid, and private developers. In additio services are funded primarily by rate payers and private develop I.Affordable Housing Projects 1. Question: With regard to the payment of impact fees, how will projects be treated that include dwelling units that meet affordable housing requirements? Answer: If a dwelling unit is constructed as part of an affordable hous must still be paid. This is because if the fees are not paid, it impact fee ordinance into question. At present, the recommendation is that the County will pay the required impact fees out of the general fund, not out of assessment of other individualsÔ impact fees. J.Progressive Residential Fees 1. Question: Will all single-family development pay the same fee? Answer: Not necessarily, fees can be based on the size of the dwelling established by a progressive rate. Smaller dwellings could pay less impact fees, based on a pre-determined schedule that will become part of the impact fee ordinance or a standard fee could be applied across the board. HÓC\INAÐIFSSeptember 14, 2006, Page 184 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY K.Cost Recovery 1. Question: What does cost recovery mean, and how will it be applied to the collection of impact fees? Answer: The study that is underway for the County Planning Department w maximum fee that can be charged for the various categories of in included in the impact fee program. The County could then adopt of the determined maximum fees, or any percentage lower than 100%. Preliminary analysis indicates that the total maximum impact fees will exceed the cur existing fair share contribution program. L.Phase-In Period 1. Question: When will the impact fee program begin to operate? Answer: Because it will take some time for the County to prepare to admi program, there should be at a minimum, a one-year phase-in period between the date the ordinance is adopted and the date the ordinance takes effect. During this one-year phase-in period, the fair share assessments would continue to be in effec M.Application of Impact Fees 1. Question: Will facilities in my subdivision be upgraded with the expenditure of collected impact fees? Answer: No. Impact fees can only be spent on facilities that have regio collector roads, solid waste transfer stations, fire stations, e improve private infrastructure and facilities that are internal N.Administration of Impact Fees 1. Question: Will impact fees be put into the General Fund? Answer: No. Impact fees will be collected and put into funds set up for fee collected (road, police, fire, parks, solid waste, wastewater), and can only be spent on those facilities. HÓC\INAÐIFSSeptember 14, 2006, Page 185 AWAII OUNTY NFRASTRUCTURE EEDS SSESSMENTMPACT EE TUDY