Roadway arterial infrastructure has largely been funded by ad valorem taxes since 2006. The City has been unable to support demand of new roadway arterial infrastructure, based on recent projected development trends, and therefore sought alternate funding sources to partner with development. Water and sewer main line infrastructure has largely been funded by water and sewer utility fees, and has functioned sufficiently well to present day. The updated Comprehensive Plan, Plan Lubbock 2040, recognized the unsustainable approach that some of these methods provide, and recommended that alternate funding mechanisms be considered. On May 14, 2019, the City Council approved Contract 14456, with Kimley Horn and Associates, for a Future Infrastructure Funding Study. This project provided a study based upon recommendations in the Comprehensive Plan to take appropriate actions to implement some of the alternate funding mechanisms in the Comprehensive Plan. This contract also provided assistance to staff in following state law to setup a Capital Improvements Advisory Committee, determine service area boundaries, compile historical costs, prepare land use data, prepare a 10-year growth projection from Capital Projects, assist the City in the development of Roadway, Water and Wastewater Impact Fees, and assist in the adoption process of these fees. On October 27, 2020, the City Council adopted Ordinance No. 2020-O0136, which added Chapter 41, Impact Fees, to the Lubbock Code of Ordinances. The effective date of the imposition of impact fees was June 1, 2021. On March 23, 2021, the City Council approved Amendment No. 1 to Contract 14456, in the amount of $20,000, and an additional 2 years. This amendment assisted in the initial implementation and initial administration of the impact fees, along with updating the Impact Fee Study based on recent annexations. Staff recommends amending the contract with Kimley Horn and Associates, Inc., with regard to the initial implementation and initial administration of the impact fees, on an as needed basis. The services are on a labor fee plus expense basis, with the maximum labor fee of said services, to not exceed $20,000. This amendment will also extend the contract for an additional 2 years. |