SPECIAL CITY COUNCIL MEETING MINUTES
COUNCIL CHAMBERS – CITY HALL
1000 CITY CENTER CIRCLE
AUGUST 23, 2011
THE SPECIAL CITY COUNCIL MEETING (Impact Fee Workshop) of the City of Port Orange was called to order by Mayor Allen Green at 5:32 p.m.
Pledge of Allegiance
Roll Call: Present: Councilman Bob Ford
Councilman Donald Burnette
Councilman Bob Pohlmann
Vice Mayor Dennis Kennedy
Mayor Allen Green
Also Present: Kenneth W. Parker, City Manager
Margaret T. Roberts, City Attorney
Robin Fenwick, Deputy City Clerk
B. IMPACT FEE WORKSHOP
Mr. Parker opened with background relating to impact fees.
John Shelley, Finance Director, explained to Council what will be discussed. Impact fee was defined and the reason behind the need was discussed by Mr. Shelley. Further discussion was held relating to the characteristics and uses of impact fees.
John Shelley, Finance Director, discussed all four impact fees beginning with the fire impact fee. Mr. Parker explained that a clear capital program was provided to Council at the time the impact fee was adopted. Council accepted the program and adopted the impact fee in 2005. Councilman Kennedy asked about the impact on debt services if the fire impact fee was reduced. Mr. Parker advised that a legal analysis would be needed to answer that question. Impact fees cannot be used for existing maintenance. Councilman Ford agrees with the concept of impact fees but asked about in fill when infrastructure is already there. Mr. Parker advised that the businesses are paying for capacity. Councilman Burnette asked if the impact fees being charged currently are appropriate and competitive with other cities. He believes the City needs to be competitive. Mayor Green advised Council to look at Riverwalk and what is needed to develop that property. He believes the fees are not balanced between residential and business. Councilman Pohlmann asked how Council can change the impact fees now after thousands of residents and businesses have already paid. Mayor Green advised that the fee will be transferred for someone else to pay it. It still needs to be collected for infrastructure to be provided. Mr. Parker agrees it's a transfer.
Councilman Ford likes fee for service. Mayor Green warned Council to consider all that is involved with the impact fees, gave examples of streets put in for Creekside Middle School, Curaci Park, etc. Mr. Shelley advised that the numbers used for the transportation impact fee are dated back to 1997. Councilman Ford believes the transportation impact fee needs to be updated since the roads are in place for the City. However, repair and replacement fees may be needed instead. Vice Mayor Kennedy agrees. Mr. Parker explained some of the roads that will be impacted by future growth, as well as traffic signal projects. Councilman Ford believes it is time to look at the fees and readjust them as needed. Mayor Green advised that a consultant would be needed unless Finance can do it. Mr. Parker advised that the consultant would be needed because they would be able to testify as to their findings.
Mr. Shelley explained the 2005 recreation impact fee and advised that there was a study done in 2008 and he would recommend that the City accept the 2008 study, which will reduce the recreation impact fee. Councilman Pohlmann asked if the fees are required by state concurrency laws. Mr. Parker said 3 out of the 4 are (fire is not). Vice Mayor Kennedy asked how we can have more gallons going out of a home than goes into the home. Mr. Parker advised that the water department will need to explain the calculations but it includes the fact that the City handles some wastewater from other areas (including Daytona Beach Shores) that would raise that number.
Mr. Parker advised that other cities and the county are considering a change in their impact fees. Mr. Parker reminded Council to look at the economic development questions. Councilman Pohlmann asked if the City would have to pay the impact fees (rather than residents/businesses paying it) if Council cancelled the fees. Mr. Parker said yes, they will move to another budget line item. Councilman Pohlmann asked if the impact fees can be used for repair and replacement projects. Mr. Parker said no they must be used on new projects. Councilman Burnette is not in favor of doing away with impact fees altogether. He believes the fees need to be competitive and appropriate. He is in favor of discussing in-fill incentives. Councilman Ford is not opposed to a moratorium to jump start some growth. He agrees with Councilman Burnette about being competitive and appropriate and also fair. Mayor Green believes that the impact fees pay for themselves. He doesn't believe the City needs to be competitive. He wants the City to continue preparing for the future. He believes the impact fees need to be more balanced for businesses. Vice Mayor Kennedy agrees with Councilman Ford relating to the fact that the impact fees will not be there forever, the City will be full soon. He agrees Council needs to look at the fees to insure the fees are fair and appropriate. Mayor Green requested that Staff advise how much the studies would cost to generate.
ADJOURNMENT: 6:54 P.M.
Attest: Mayor Allen Green
Kenneth W. Parker, City Manager