An Ordinance By The Pasco County Board Of County Commissioners Amending The Pasco County Land Development Code Section 1302.2 Mobility Fees, To Increase The Mobility Fees For Various Uses; To Decrease The Mobility Fees For Certain Locally Owned Small Businesses; To Amend The Mobility Fee Regulations To Be Consistent With Chapter 2021-63, Laws Of Florida; And Other Amendments As Necessary To Ensure Internal Consistency; Providing For Applicability, Repealer, Severability, Inclusion In The Pasco County Land Development Code, And An Effective Date.

24:42The next item on your agenda is PC 10 PDD 210499, and this is a presentation by Mr. Bill Oliver. And if you give me a minute, I will tee that up.

24:54Are you doing items pulled first? Are you doing the items pulled first or are you doing that first?

25:00Um What does first?

25:08All right, to save time, I'll go ahead and introduce myself. I'm Bill Oliver. I'm a registered professional engineer in Florida. probably most notoriously known in Pasco County for un undertaking your transportation impact fee and mobility fee studies in twenty eleven, fourteen, twenty-eight, and now twenty twenty one. And that's the purpose of the presentation today. Um we're taking a proposed change to the Mobility fee ordinance. This thing's kinda sagging here. There we go. Uh to uh planning

25:38to go to the County Commission uh in their August tenth meeting. And so this is a presentation to you all for questions and your recommendation. And if you'd like to go to the first slide. Typically when I undertake a study, the first thing I look at is what's changed since the last study that we did. Because the rate of growth, the transportation plan may change, revenue forecasts may change, population growth may uh population growth may change. So I'll spend a few s a couple of slides talking about that and then talk about the uh recommendation

26:09that the staff is bringing to you today for adjustments to that plan. Or to the to the fee program. Just one slide on a brief history. Um You've had uh transportation impact fee since 1985. Uh in Pasco County in 2011, we changed to a mobility fee strategy. Um the key changes there was were that we created three districts in the county, an urban district, suburban district, and a rural district. And

26:40tailored the fee to reflect differing goals and mobility solutions and intent in those three districts. The rural district had the highest fees, suburban district had the next in the middle fees, and then the urban district had the lowest fees. And that reflected a willingness to accept more congestion in that urban district and shorter trip lengths and so. The rural district having longer trip links, wanting better quality of service, resulted in the need to construct more infrastructure

27:10and higher fees. Um We also in that program created incentives. The comp plan is seeking to incentivize and attract employment land uses to the county. In that fee program, we basically said we will that the county would fund the mobility fee obligation of office land uses, industrial land uses, and lodging land uses as being the three key sectors of the economy where uh that

27:40the county was seeking to in uh incentivize. The fees have largely remained unchanged since 2011 in the face of higher growth, higher costs, and so forth. And the reason you're able to do that was because you've uh in that process adopted the uh second local option gas tax, five additional pennies of gasoline tax that go towards the expansion of the mobility system. uh also was the enactment of a uh tax increment uh property

28:10tax increment district countywide to help also fund transportation. W uh in the 2018 adoption process, I remember advising the Board of County Commissioners at that time. We're running out of options. Um and so we thought uh the the thought was at this go round there would be some adjustments that have to be made. So we'll talk about those here in a second. Um Yeah, and the mobility free fee program that's in place generates about $28 to $30 million

28:41per year. Um that was uh at current estimates uh that would be about twenty-two percent of the financing need for your transportation plan.

28:53Next slide, please.

28:57So in the process of doing this study, uh the Florida State Legislature passed uh legislation which restricted or limited the s the the method or the style in which you could amend and change your impact fees. It applies to all impact fees, not just mobility fees. But there are kind of two strategies. The lower one that can increase by more than 50% fee if you have a fresh study justifying the need for

29:27a dramatic increase in your mobility fees or impact fee. requiring also a two-thirds majority of the Board of County Commissioners vote to actually adopt and implement it and a finding on their part of extraordinary circumstances. We didn't think that was in the circumstance we're in. So we're taking the more uh the the the less dramatic approach of just uh uh allowing what what one increase in the fee every four years. Um And during that four-year window, the legislature limited

29:57uh increases to a maximum of 50% in four equal steps. Um if you were if your proposed increases were only up to 25%, then it was required that they that those changes be implemented in two equal steps over two years. And then um Well, and that and and that the y that your fee program could only be altered or changed once every four years. So the change we're making now. It's supposed to last us for four years unless we find extraordinary circumstances.

30:28Next slide, please.

30:31Not surprisingly, as usual, the costs of implementing your mobility system have increased over recent years, and according to the Florida DOT, we expect those costs to continue to increase by about 3% per year over the coming four or five years. So that's a ch uh the cha a change in uh the fee program since last year. We have to recover greater costs. Next slide, please. We also look at the growth rates of

31:01travel and also the revenues that you have coming in, not just from mobility fees, but from gas taxes, sales tax, and your tax increment district. in this transportation plan update that was adopted uh I think uh last year. Compared to the 2018 study, the rate of growth that you're expecting in travel has decreased. Less population growth, less travel growth. So that's good. That means you have to build less infrastructure to accommodate it. Um

31:32but um Even with the higher costs, that reduction in growth reduced the amount of revenue needed by about 10.6%, which is good. On the in the green box, uh looking at thinking about revenues, uh by and large, those non-mobility fee revenues, the sales tax, the the tax increment district, and motor fuel taxes across the board stayed about the same. Slight reduction because of the growth rates slowing down a little

32:03bit. Um But uh so the total revenue needed from mobility fees is also less than we anticipated in 2018. But With a slower growth rate, there's less growth from which those reven those mobility fees would be are generated. So uh in in after all of that mathematics, by um bottom line is the mobility fee rates do need to increase, not as dramatically

32:33as I had thought back in 2018.

32:37At the outset of our study, we had individual interviews with each of the county commissioners exploring different strategies for how to approach the mobility fee adjustments that are coming up. and these are the um indications. or the issues and the feedback. The numbers at at the end of each line in in parentheses kind of indicated how many of the five commissioners were in favor of that particular strategy. So there was strong support, four and

33:07a half out of five. Uh one commissioner was kind of, yeah, yeah, maybe, but maybe not. We could uh she they were willing to reconsider uh that option. But to keep you you've incentivized uh forms of development, your mixed-use travel reducing measures form of development, which is slightly higher density than your standard form of development. uh the traditional neighborhood development, transit oriented development are discounted. Uh the mudderum by twenty five percent. The TND by 50%, the

33:38transit-oriented development is discounted by 75%. So there's strong uh and strong support of keeping those discounts and those relationships in place. Um four out of the five were also willing to consider reducing the retail incentives, uh allowing the retail development to uh fees to increase by a more substantial margin than perhaps others. The next three about reducing lodging incentives, the office and industrial

34:08incentives, and even single family, only one out of the five were willing to consider that. So there was very little support for those types of changes. Two other ideas emerged. One was to create an incentive for locally owned small businesses, which I'll talk about s subsequently. And uh secondly, the interest in identifying or providing a separate fee rate for accessory dwelling units, which I'll also talk about in a few minutes. And I should probably add that I noted David Goldstein

34:38is in the video, so I should pause every now and again because David is always in eager to add a few notes that I may have forgotten to address. address. So I'll take a deep breath and let him great

34:50Bill.

34:51You're doing fine. Okay, good. All right. So that so that so that guidance is what kind of gave us direction on what uh on what sector, if you will, of the development economy uh we would look at to generate the uh additional needed revenues or the fee increases. So this slide kind of reflects the previous slide, and here's where we have settled after doing the math. We're going to continue the existing full incentives

35:22or zero fee for office industrial lodging and the geographic area on the western edge of your county known as the West Market area. uh the retail fees were kind of what took the increase. Um that's where we uh allow we're allowing the retail fees to increase basically by about fifty percent over the four ye four years in equal steps. So annually about a thirteen percent increase on their fees. Multifamily apartments, the

35:52Board of County Commissioners has taken action to eliminate incentives for multifamily, asking them to pay the full standard fee rate, non-incentivized. Um and that uh strategy, they just did that last year, last May or June. Um, and so that uh strategy is continuing. Uh the locally owned small business fees uh proposed that those fees would be the same fees as the traditional neighborhood development rate or giving them a 50%

36:23discount. um on their sh the otherwise uh rate that they would pay. We're gonna continue the zero subsidies for also for many warehousing and mining land uses. And then all other fees, the the residential, single-family residential, uh institutional fees, recreational fees, other land use categories that I've not mentioned above, would basically basically be indexed over the next four years at about a 3.13%

36:53per year increasing rate to kind of align with the uh DOT's expected uh Cost increase rate.

37:04Next slide. Okay, a bunch of numbers here, and I love this slide, but I don't think a lot of other people do terribly much. But in my mind, this slide summarizes what your transport currently adopted transportation plan says in the blue box. There is a certain amount of certain amount of travel that is occurring today. Th there are growth rates, differing growth rates in the urban, suburban and rural district. Um in the yellow line there's an indication of

37:34what quality of service you intend to provide or at what rate you intend to construct uh mobility system capacity. Um in the urban district, uh building at a rate of 0.95 times the rate of growth. The suburban district 1.25, the rural district 1.33. These are the same, it's the same commitment to quality of service that existed in the 2018 mobility fee program. So no change there. Costs have changed. So when

38:04you multiply the quantity of growth times the cost. The bottom line in the blue box on the far left says that over the 25-year horizon, you're needing about $3.1 billion of revenue to fund the program. In the green box, we're looking at the revenues, the different sources, the second local option gas tax, penny for Pasco sales tax, and so forth, and how much revenue we expect to come from those sources, and then how much revenue we're looking for the mobility fee also to

38:34generate. And then in the orange box, uh the fee rates that would be implemented after the four-step adjustments, the fee rates that would result in 2025.

38:49Next slide.

38:52So again, more numbers here, but I'll take a minute to kind of walk through this slide. This basically in all of our analysis we view six example land uses, and those are listed on the left-hand side: the single-family, the multifamily, the apartments, uh, the hotel units, the office, uh, retail, and industrial land uses. And then under each of those lines, uh the fee rates that would be in place for the in the urban district, the suburban district, and the rural district. Uh the four

39:23major uh columns, if you will, as you go horizontally, um indicate the form of development. The first column dealing with standard development uh forms, uh the second column being your mixed-use trip reduction measures development, the third the traditional neighborhood development. And also, what's uh the acronym there is LOSB, the Locally Owned Small Business Fee Rates. And then the last column being the transit-oriented development. And then within each of those major columns, the first column

39:53is the fee that that land use would be paying today in twenty twenty one. And then uh f in the twenty twenty-two, three, four, and five would be the fee rates they will pay in those calendar years.

40:09Um, and you can kind of see the strategy. The standard fee rates are where the where the most significant changes occur. Um, the residential uh increasing by about three percent per year, the apartments growing by about 12 or uh No, about six percent it was actually six percent per year with that zero percent incentive. Um office and uh Hotel remaining at zero dollars. The retail rates is where you

40:40see the most dramatic increases in the standard fee rate uh increasing by about thirteen percent per year up to fifty percent after four years. and then the zero fees for the industrial. If the development though, if if the retail development, for example, is in the Mudram district, uh its fee would only be indexed at the three point one three percent per rate year, maintaining that incentivized uh uh uh are the incentives for that form of development. So

41:11the standard retail will be increasing at 13% per year, but if your retail is in Mudderum, TND, or the TOD, you'll only see about you'll you'll see uh only about three percent per year indexing.

41:27All right, next slide.

41:32Uh the locally owned small business discount. Uh this is the proposed definition that's in the proposed ordinance. It's basically uh a business that's fifty-one percent owned, not a chain. Um uh fifty one percent owned uh by people who live in Pasco, Hernando, Sumter, Polk, uh and Hillsboro. Oh Pas Pasco plus your adjacent counties. Um and having twenty-five or fewer employees.

42:03Uh David, I don't know if there's something anything else you wanna talk about there.

42:10Since we're going to do that,

42:11you covered it, Bill. There it's a reduced rate, so it's paying about half what a standard fee would pay.

42:20And then the accessory dwelling unit, the proposed rates are here. And then an accessory dwelling unit is basically what I refer to as a mother-in-law quarters. You may build a very, very small, like one-bedroom house or on top of your garage or stand alone in the yard. It's got to be a primary uh single-family dwelling unit on the primary lot. Um With a limitation of 900 square feet, my gut tells me you'll be running into these units on the 400 to 650

42:50square foot range, but went we went to 900 square feet because three-car garages are becoming popular and that's what would fit on top of a three-car garage, more or less. And you can see in the fee schedule here, the first column is the 2021 fee rate. Uh today, if such a unit is built, they would pay, uh the county is charging the apartment uh trip generation rate, which is uh as you can see there in that first column. We went through an assessment

43:20of the estimated traffic generation for this site, for this type of a land use, concluded it was probably lower than the apartment and a reduction in this fee rate is appropriate. the fee rates that you see there are what would be paid in the urban, suburban and rural districts.

43:41And next slide, this is the comparison of the proposed 2025 Pasco County fee rates with those of the adjacent Hillsborough County, City of Tampa, Polk County, and Manatee County. Um

44:03Not much to say there. Hillsboro County, um, we know their fee rates are in effect through December 31st of this year. Uh I know they have great interest in increasing those fee rates as they can. Uh City of Tampa has been adopted their fee program quite a few years ago and these rates uh are what they are willing to charge. uh not as fast growing a community. Um But by and large, Pasco County's fee rates are comparable to Hillsborough County's,

44:33slightly less in some cases, slightly more in other cases.

44:39Accept great benefits in hotel, office and industrial, of course.

44:46Um and to conclude, yeah, the anticipated adoption dates for this fee program at the Board of County Commissioners will be August 10th for the first reading, August 24th for the second reading. This fee program is anticipated to go into effect beginning January 1st of 2022. So if y'all have any questions, I'll be glad to entertain them.

45:10Bill, I I just had one question and I again I haven't I only started looking at this stuff yesterday, admittedly. I haven't gone through all the categories, but I guess can you give some explanation as I look through the different mobility feed districts There are different increases for mini warehouses and boat and RV storage. In some cases mini warehouse gets put in that seven percent increase. Another and Bowden R V gets putting a thirteen percent for the retail. In other cases they're three

45:41percent. Like immobility fee district B? In C it's seven percent and thirteen percent. So I don't know what is their Justification or reasoning for those differences or is that just something that hasn't been looked at and needs to be looked at closer?

45:53Um The I uh I uh yeah, I would need to go back and look at it more closely to respond specifically to that question. To some extent, um the House Bill three thirty-seven limitations requiring us to do equal steps. Has kind of twisted some of those growth rates and so forth. Okay. However, I do know that the uh the Board of County Commissioners was not interested in subsidizing

46:24many warehouses at all. Um whereas boat and RV storage, I don't think has.

46:32I mean I understand that. It's just that it's not a uniform increase across all the mobility fee districts. I mean some places it goes up six percent, some pla seven percent, some places it goes up three. And then Bolton R V storage it goes up in thirteen, seven and three, I think. Or thirteen, seven and thirteen. So it's it there's no it's just not uniforms. I didn't know if there was a reason why. I know this is a real use. I mean Units are getting smaller, there's more apartments. I know apartments are a hot topic in the county. Um but I mean people need places to store this stuff. I mean we're

47:02a coastal community, you need places for boat and R V storage. Yeah. So

47:06that one's keep that one's catching me a little flat footed. Sorry. No problem. If But realistically because Yeah, I think it has to do with the the goal of preserving fee rates from 2011 through 2020 or through 2018 anyway has caused some of those subsidy discounts to be different. That resulted in the steps increasing steps probably

47:37Okay.

47:37Very Very good. That was the only question I had. I mean good job. I mean it's a great presentation, understandably. I mean I know that You know, costs are getting I mean things are getting more expensive. I mean there needs to be increases, so I understand.

47:51Are there any other questions?

47:54That's right. Well are you recommending that we continue it doing

48:00it I'm fine. I'll make a motion to approve.

48:04Public hearing.

48:05Oh

48:08It's a public hearing item. This is an ordinance.

48:10Okay.

48:11So you have to open it for public comment.

48:12Yeah, you gotta have yeah. I can't make a motion yet, but yes. No, I'm fine with it. I just I I think that that part needs to be looked at, s is my main point. I mean, just before it goes to the board, because it's gonna go to the board for approval anyways. Yeah.

48:27So for the record today you're acting uh you're sitting as the LPA and what's being requested is for you to find the um the proposed um amendments consistent with a comprehensive plan and recommend approval to the Board of County Commissioners.

48:41All right. So is there anybody else here from the public that's uh interested in speaking?

48:50I see no one. Did anybody have their hand up that I can't see?

48:56Okay. So if not, then do I hear a motion?

49:00Make a motion to approve. That's a second.

49:04We have a motion and a second. Any further discussion of the motion? All in favor? Signify by saying aye. Aye. Uh like sign for negative. Motion carries. Okay, thank you very much. Good job.

49:23Um Denise, I'm gonna go back to the uh items that were

49:28Okay, thank you so much.