The Regional Transportation Commission of Washoe County (RTC) is responsible for initiating periodic reviews of the Regional Road Impact Fee (RRIF) program, which allows for assessing the entire program in determining if modification to the General Administration Manual (GAM), Capital Improvements Plan (CIP), and Impact Fees are warranted.  Any proposed modifications to the program will be approved by the participating governments – the cities of Sparks and Reno and Washoe County.  The review process is undertaken by the RTC in conjunction with the RRIF Technical Advisory Committee (RRIF TAC).  The purpose of the RRIF TAC is to review and recommend any modifications, additions, or updates to be made to the RRIF GAM, CIP, and Impact Fees. 

The GAM outlines methods and procedures to provide guidance and consistency in the administration of the RRIF program throughout the Truckee Meadows.  The GAM elaborates upon the administrative directions contained in Chapter 12.44 of the Sparks Municipal Code and is intended to be used in concert with local law.  The terminology used in the GAM corresponds to the definitions of words or phrases used in Chapter 12.44.  The proposed 6^th Edition GAM is attached to the staff report.

The RRIF TAC recommended approval of the 6th Edition GAM and CIP on March 28, 2019.  On May 1, 2019, the RTC Technical Advisory Committee (RTC TAC) and the RTC Citizens Multimodal Advisory Committee (RTC CMAC) also recommended approval to the RTC Board.  On May 20, 2019, the RTC Board accepted the modifications and directed RTC staff to present the 6th Edition of the RRIF CIP and GAM to the Capital Improvement Advisory Committee and governing body of each participating local government for approval of the revisions.

Pursuant to NRS 278B.150, the governing body of a local government wishing to impose impact fees establish a Capital Improvements Advisory Committee (CIAC) and the governing body may designate the Planning Commission as the CIAC.  The Sparks City Council designated the Sparks Planning Commission as the CIAC in May of 2001.  NRS 278B.153 requires the CIAC to review the land use assumptions, CIP, and impact fees related to the RRIF program and advise the City Council of the need to update or revise any of the RRIF program documents.  On July 18, 2019 the CIAC unanimously recommended that the City Council approve the revised land use assumptions, proposed Capital Improvements Plan, associated fees, and updates to the Regional Road Impact Fee 6th Edition General Administrative Manual.  Because prior versions of the documents were approved by ordinance, the revisions must also be approved by ordinance.

General Administrative Manual Updates

There are two notable changes to the 6th Edition GAM, the first being an exemption to state buildings. The 6^th Edition GAM states the following:

In accordance with an opinion issued by the State Attorney General (Opinion No. 97-29), the State of Nevada is exempt from the payment of impact fees and transportation taxes to local governments. 

The second modification relates to the timing of the approval of an offset agreement.  An offset agreement allows impact fees to be reduced or waived in exchange for construction of public improvements.  The 6th Edition GAM states the following:

With respect to improvements commenced on or before November 1, 2018, Offset Agreements must be approved prior to the start of work on any Offset-Eligible Improvement and prior to the issuance of any building permit for which RRIF Waivers are requested.  With respect to improvements commenced after November 1, 2018, Offset Agreements must be approved prior to the earliest to occur of: (i) twelve (12) months from commencement of construction of the improvement, (ii) completion of work on any Offset-Eligible Improvement, and (iii) utilization of RRIF Waivers earned as a result of construction of any Offset-Eligible Improvement.

Capital Improvements Plan

The RRIF CIP has been separated into the North and South service areas and represents improvements to the regional road network made necessary by new development over the next 10 years.  The RRIF CIP was created by the RTC using the 2040 Regional Transportation Plan list of projects and, in conjunction with the local RRIF administrators, has been reviewed and approved by the RRIF TAC.  The RRIF CIP for both the North and South service areas is attached for the City Council’s review and consideration.

Regional Road 6th Edition Impact Fees

 The recommended Regional Road 6^th Edition Impact Fees for the RRIF CIP, discussed above, are attached for the City Council’s review and consideration.  A table comparing the proposed fees to current fees is attached to the staff report,  in which the capital cost per Vehicle Miles Traveled (VMT) are increasing by $53.13 and $10.07 in the North and South services areas, respectively.  It is noteworthy to mention that no entire local government can be in just one service area.  The North and South service area dividing line is Interstate 80.   

The updated RRIF fee schedule is anticipated to go into effect in the fourth quarter of 2019 upon adoption by the City of Sparks, City of Reno, and Washoe County.

1. City Council could instruct the City Clerk to read the First Reading of the Bill amending Chapter 12.44 of the Sparks Municipal Code and thereafter publish a second notice of the Second Reading and public hearing of this bill in the Reno Gazette Journal for its possible approval and adoption on August 26, 2019, as outlined by Staff.
2. The City Council could deny the request of the First Reading and provide direction to the City Manager.

Staff recommends that the City Council instruct the City Clerk to read the First Reading of the Bill Amending Chapter 12.44.