1. 5th Edition Regional Road Impact Fee General Administrative Manual
Amendment No. 1 – Credit Extensions
City of Reno City Council
5/27/2015
By Julie Masterpool, RTC Senior Engineer
Here today to present Amendment No. 1 of the Regional Road Impact Fee General Administrative Manual
Amendment No. 1 will add language to extend the expiration date of impact fee credits that were earned prior to the 5th Edition update.

2. 5th Edition RRIF Adoption Timeline
Presentations & Approvals
Date
RRIF TAC Approval
08/28/14
RTC Board Meeting - Approval of RRIF ICA, GAM, & CIP
09/19/14
Reno Planning Commission
10/01/14
RTC Board Meeting - Approval of GAM Amendment No. 1
10/17/14
Reno City Council - 1st Reading; ICA; Ordinance
10/22/14
Sparks City Council
10/27/14
Washoe County Commission - RRIF ICA
10/28/14
Reno City Council - 2nd Reading of Ordinance
11/12/14
Sparks Planning Commission
12/18/14
Washoe County Planning Commission (as CIAC)
01/06/15
Sparks City Council - 1st Reading RRIF Ordinance (RRIF CIP/GAM)
01/12/15
Washoe County Commission - 1st Reading RRIF Ordinance (RRIF CIP GAM)
01/13/15
Sparks City Council - 2nd Reading RRIF Ordinance; ICA
01/26/15
Washoe County Commission - 2nd Reading Ordinance
01/27/15
5th Edition Fees went into Effect
03/02/15
The RTC Board approved the 5th Edition of the RRIF General Administrative Manual and Capital Improvement Plan this past September.
Approval of the new fees involved
Presentations to the various planning commissions;
Adoption of a new Interlocal Agreement and
2 readings for new impact fee ordinances by this Council, the Sparks City Council and Washoe County Board of County Commissioners.
New fees went into effect March of this year.

3. What is the Regional Road Impact Fee Program
Impact Fees are a funding tool for collecting the cost of building additional capacity on public facilities needed due to new development
Nevada Revised Statute (NRS 278B)
Local enacting ordinances
Reno, Sparks and Washoe County
Impact Fee Cooperative Agreement (ICA)
RTC, Reno, Sparks and Washoe County
Capital Improvements Program (CIP)
Describes methodology used to establish net cost per service unit of new roadway capacity
General Administrative Manual (GAM)
Guideline and procedures to administer the RRIF program
Just a bit of background:
Impact fees are a funding tool for building additional capacity due to new development
NRS 278B provides the ability of local governments to enact impact fees and outlines the general components required to implement an impact fee program:
Allows capital improvement for specific infrastructure including streets, Fire and Police Stations, Sanitary and Storm Sewers, Water Projects and Parks
Local ordinances - Allow the implementation of a specific impact fees at the local level.
For the Regional Road Impact Fee program, we also have:
Interlocal Cooperative agreement between Reno, Sparks, Washoe County and RTC to work collectively on a regional program.
The RRIF Program also has 2 Companion Manuals:
Capital Improvement Plan - Describes methodology used to establish net cost per service unit of new roadway capacity
General Administrative Manual – Outlines how the fees are administered

4. Impact Fee Program Elements
Reasonable sized Service Areas (Rational Nexus)
Fees based on cost of facilities necessary to meet growing population (Rough Proportionality)
Cost attributable to new development
Revenues to be used for capacity-enhancing capital facilities
Important Points about impact fees:
 Two Supreme Court decisions established that:
Reasonable connection between the “need” for additional facilities and new development and the fee payer will “benefit” in some way from the fee
Fees be based on the cost of the facilities and the development pay their fair share of those costs
Impact fees are not meant to pay for all new capacity needs, only the new development share (consider other funding sources, ie, Federal $, RTC Bonds)
Impact fees can only be used for new capacity improvements - Cannot be used for maintenance or operating expenses

5. Capital Improvement Plan Flowchart of Fee Development
Diagram showing how the impact fee program is developed:
Using the Consensus Forecast and our Traffic Model, we can develop a list of capacity projects needed for the future.
Estimate Total Cost of CIP, minus other funding sources, ie, Federal/State/Local $$ to determine developments’ share of $$ for CIP
Divide development’s share of $CIP by the number of new trips (VMT’s) anticipated on the regional network = new rate

6. Major Changes with 5th Edition
1 Service Area with 1 fee and
3 Benefit Districts
2 Service Areas with separate fees
10 Year Capital Improvement Plan with
30 Year for right of way
10 Year Capital Improvement Plan
Multiple land use categories
Simplified land use categories
RRIF Credit Program for developer build improvements
RRIF Waiver Program for developer built improvements
New road could be administratively added to the CIP and fully credited
1st two lanes of a new road responsibility of a developer
Major changes for the 5th Edition include:
Probably the most significant is that we divided the existing Service Area into 2 separate service areas (North/South of I-80)
This change was required to comply with a revision to the NRS Impact Fee statute restricting an entire city from falling within the same service area.
Each Service Area requires a separate CIP (List of projects) which the fees are based
Simplified the number of land uses which impact fees are charged (reduced from 30+ to ~15 LU)
Credit program where private development builds roadway improvements changed
New Waiver program – to correct some of the issues we had with the Credit program
Developer building a new roadway would be responsible for the 1st 2 lanes
Maximum waivers earned equal to or less than anticipated impact fees owed
Measured in dollars, not VMTs
Never expire
The current Credit system will continue until all credits are redeemed or expire.

7. Regional Road Impact Fee Service Areas
Separate CIP’s and fees for each Service Area RRIF Fees collected stay within Service Area
NORTH
Here is a map of the two new North and South Service Areas and how they relate to the previous Benefit Districts
Fees collected within the Service Area are spend in the same Service Area
SOUTH

8. RRIF Capital Improvement Plans North vs South Service Areas
Developed separate CIP’s for each Service Area to develop independent fees for the North and South Service Areas
CIP costs adjusted for other funding sources
RRIF Share based on funding sources or new developments impact to the project (ie, multi-modal projects are 14% RRIF Share)
Ramps/Intersections assumed 50% RRIF funding

9. 5th Edition Fee Schedule
Fee Schedule showing separate fees for the North/South Service Areas
Comparison with 4th Edition:
Overall the fees went down from the 4th Edition on average 10%

10. What are Impact Fee Credits?
Developer conditioned to build road improvements
NRS 278B – Improvements must be credited against fees owed
RRIF Capital Improvement Plan (CIP)
RRIF General Administrative Manual (GAM)
Capital Contribution Front Ending Agreement (CCFEA) between developer, RTC and local government
When a developer is required to build road improvements listed on the CIP as a condition of approval,
NRS 278B.240 requires that the cost for those improvements must be credited against the impact fees owed.
The RRIF Program was initially developed to use Credits as a form of compensation to the developer who built the improvements, which could then be used to pay the impact fees owed.
RRIF GAM outlined the procedures for issuing RRIF Credits and required an agreement (CCFEA) between the developer, RTC and the local government

11. How are RRIF Credits Used?
Developers redeem RRIF Credits in lieu of payment of Regional Road Impact Fee.
Benefit District
Development of Record
Credits may be bought or sold between credit holders
20 year Expiration
Credits must be used:
Within Benefit District (maintain proximity to road improvements built – rational nexus)
Used to pay 100% of impact fees owed if within the Development of Record
But also allowed:
Credits can be bought and sold on the private market
Used to pay up to 50% of impact fees owed if outside the Development of Record
Expire within 20 years of CCFEA agreement

12. Impact Fee Credit Issues
Economic downturn = slowed development
Credits may expire before they can be used
Credits are being sold at a reduced rate on the open market
With the downturn in the economy, development slowed and therefore, credits not being used for the payment of impact fees
Since credits expire 20 years from their issuance, we see the potential of those 1st credits issued in expiring before they can be used.
Due to the abundance of credits in the open market, private market transfers are being traded at a reduced rate (less than current value)
Advantageous for 3rd party purchasers to use those credits for payment of their impact fees, reducing the amount of cash coming into the program

13. All other provisions, ie, credit usage remain the same
RRIF Credit Extension
RRIF GAM Amendment No. 1 - Extend the expiration dates for an additional 10 years
Requires approval by all 3 jurisdictions
Requires CCFEA amendments for each credit holder requesting an extension
All other provisions, ie, credit usage remain the same
During the update for the 5th Edition, there was a lot of discussion with the RRIF TAC and RTC Board related to the credit program.
As I mentioned earlier, one of the changes include in the 5th Edition was modifying the way developers were compensated for the improvements they were conditioned to build, however that did not address the existing credits still remaining.
The RTC Board reviewed a variety of options and voted to extend the existing expiration dates of the remaining credits by 10 years to compensate the lost time due to the downturn.
Since the 20 year expiration dates are hard coded in the RRIF GAM and CCFEA agreements, we are amending the RRIF GAM to include language, method and procedure to extend the expiration date for an additional 10 years.

14. RRIF Credit Extension Process
Approval Process
Date
RRIF TAC Approval
08/28/14
RTC Board Meeting - Approval of RRIF ICA, GAM, & CIP
09/19/14
RTC Board Meeting - Approval of GAM Amendment No. 1
10/17/14
Washoe County Commission - 2nd Reading Ordinance; Resolution GAM Amendment No 1
01/27/15
Sparks City Council - Resolution RRIF GAM Amendment No. 1
05/26/15
Reno City Council - Resolution RRIF GAM Amendment No. 1
05/27/15
Notification/Advertising for Credit Extensions (6 month open window)
June - December
Preparation of CCFEA Amendments
January 2016
RTC Board Approval of CCFEA Amendments
February 2016
Local Jurisdiction Approvals of CCFEA Amendments
No later than August 2016
For approval, this amendment to the RRIF GAM requires approval by all three local jurisdiction.
Washoe County approved Amendment No. 1 in January and the Sparks approved it at yesterday’s City Council meeting
If approved by all 3 governing bodies, we will:
Notify all existing credit holders
6 month window to elect to extend their credits
Bring CCFEA amendments back to the RTC and local jurisdiction’s for approval

15. Questions? Julie Masterpool, P.E. Bill Gall, P.E.
RTC RRIF Program Manager
1105 Terminal Way, Suite 108
Reno, NV
Bill Gall, P.E.
Reno RRIF Administrator
City of Reno - Community Development
PO Box 1900
Reno NV  
Glad to answer any questions