Title
Approving a work authorization with Kimley-Horn in the amount of $111,000 for professional engineering services for the Roadway Impact Fee Study update, and authorizing the City Manager to execute the same.
Summary
The proposed work authorization is for the five-year update to the Roadway Impact Fee study, as required by 395 of Texas Local Government Code. The purpose of the study update is to identify the maximum fee per service unit of new development necessary to fund a percentage of proposed roadway capital improvements within city limits. While the City is allowed to assess impact fees for water/wastewater in the extraterritorial jurisdiction (ETJ), we are not authorized to with roadway impact fees.
Kimley-Horn is the consultant who is contracted to execute the Mobility Master Plan update that is currently underway and is the consultant who advises city staff related to the implementation of the Roadway Impact Fee program.
Generally speaking, impact fees are a mechanism for funding public infrastructure necessitated by new development. Impact fees are meant to recover the incremental cost of the impact of each new unit of development creating new infrastructure needs, or expansions of roadway facilities to maintain a Level of Service (LOS) for increased capacity on the overall transportation system. The November 2019 Transportation Master Plan recommended the evaluation of an Impact Fee to help fund infrastructure needed due to growth. As a result, the original study was completed and adopted in 2020 creating the City's first Roadway Impact Fees. While that study has been modified several times over the last five years, the basis for the maximum impact fee that could be assessed has not been studied since the original adoption. In addition to the five-year study update being a requirement by Chapter 395 of Texas Local Government Code, it is important to note that the cost assumptions for the capital improvement projects, which formed the basis for calculating the maximum fee, have significantly increased since 2020 due to rising construction costs. In 2022, the City also adopted the Aspire Pflugerville 2040 Comprehensive Plan, which will have an impact on the land use assumptions utilized in the report. Furthermore, with the Mobility Master Plan anticipated to be approved this spring, the study update will also incorporate the modifications to the roadway plan, cross sections and other policy decisions that come out of that document once it's adopted by City Council.
While the study will inform what the maximum collection rate for the individual service areas, the actual collection rate is set by City Council, which can be less than the maximum similar to the adopted fees today.
Under the current adopted study (attached separately), there are three service areas (Service Areas A, B, and C) within the City of Pflugerville City Limits.
The Maximum Fee Per Service Unit (per vehicle-mile) by Service Area are as follows:
Service Area A: $1,590
Service Area B: $2,916
Service Area C: $3,156
While the above mentioned is the maximum allowed, the actual rates that are charged per service unit by Service Area are as follows:
Service Area A (North of Pflugerville Parkway, west of SH 130)
Residential: $1,590
Non-Residential: $795
Service Area B (South of Pflugerville Parkway, west of SH 130
Residential: $1,590
Non-Residential: $1,458
Service Area C (All City Limits east of SH 130)
Residential: $1,590
Non-Residential: $1,578
Staff anticipates the study update to take approximately six-months to complete, and there will be at least one work session to discuss the findings with the Capital Improvements Advisory Board and City Council before bringing it forward for adoption. The study update is funded by Roadway Impact Fees.
This item is supported by the Infrastructure pillar of the Strategic Plan.
Prior City Council Action
City Council adopted the roadway impact fee ordinance on November 24, 2020. The study has been amended a few times since its original adoption, but it has not been fully evaluated since the original adoption.
Deadline for City Council Action
Staff is requesting approval of the Work Authorization at the January 28, 2025 meeting.
Funding Expected: Revenue __ Expenditure __ N/A __
Budgeted Item: Yes: X_ No __ N/A __
Amount: $111,000
1295 Form Required? Yes X No __
Legal Review Required: N/A __ Required __ Date Completed: January 9, 2025
Supporting documents attached:
Executed Master Services Agreement
Roadway Impact Fee Work Authorization
Adopted Roadway Impact Fee Study
Recommended Action
Staff is recommending approval of the Work Authorization with Kimley-Horn for professional engineering services to perform the Roadway Impact Fee study update for an amount not to exceed $111,000.