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Home My WebLink About12-19-16 CC Mtg - C6. Resolution 4752, Planning Fees Annual Inflation Commission Memorandum REPORT TO: Mayor and City Commission FROM: Martin Matsen, Director of Community Development SUBJECT: Commission Resolution 4752 – Adoption of the annual inflation adjustment for the schedule of planning fees MEETING DATE: December 19, 2019 AGENDA ITEM TYPE: Consent RECOMMENDATION: Adopt Resolution 4752 amending the fee schedule, for the annual adjustment based on cost of labor index, for the review of zoning, subdivision, annexation, growth policy proposals and other planning related review processes with an effective date of January 1, 2017. EXECUTIVE SUMMARY: The City Commission adopted a new Planning Fee Schedule on April 13, 2015. The goal of the revised schedule is to improve cost recovery as part of a continuing commitment to the citizens of Bozeman to uphold a fiduciary responsibility, to simplify the planning process for all customers, and to continue to offer a level of service that meets community expectations. The revised schedule was based upon a time, effort, and expense analysis to establish the costs to review applications. Resolution 4587 included the following provision for an annual cost adjustment: All base fees, scaled fees and technology fees specified within the fee schedule shall be adjusted for inflation based on the United States Department of Labor annually on January 1st of each year. Per the most currently released US Department of Labor annual cost of labor index for government workers, the cost index has risen 2.6 percent in 2016. This figure is through the third quarter of 2016. Full year numbers will not be available until February which exceeds the scheduled established for the fee update. This increase will enable the revenue received from application reviews to more closely match with the costs of performing the work. Per City Commission direction, the data (direct and indirect costs and active staff review time) upon which the fee schedule was based will be reanalyzed in three to five years. Data analysis will allow the Department to seek data based answers to whether an increase or decrease in estimated base cost is needed. The following guiding principles for the Departments fee schedule were established in 2006. 45 1. Recover general operational costs attributable to development review for Planning Dept. 2. Recognize that costs affect behavior and the City wishes to encourage some behaviors and discourage others. A. Desired behaviors are: Annexation, Property improvements and removal of non-conformities, compliance with generally applicable standards, and timely completion of work. B. Undesired behaviors are: Violations of standards, seeking of special exceptions without compelling reason, and appeals of administrative decisions. 3. Relieve general taxpayer from costs originated by specific requests. 4. Comply with legal requirements affecting fee amounts. 5. Allocate costs throughout the development process so that expenses are distributed to multiple points and reflect, to a degree, the ability of the applicant to recover the costs through value added. 6. Special projects such as neighborhood plans, city-wide long range planning, regulatory development, and code enforcement are to be considered independently and funded by the general tax base. ALTERNATIVES: 1) Direct staff to amend the draft fee schedule; or 2) As determined by the Commission. FISCAL EFFECTS: The recommended fee schedule is anticipated to result in cost recovery for planning applications submitted to Community Development. Greater cost recovery will result in savings to the General Fund by reducing the operating subsidy given each year. Revenue results will vary based on application volume. Attachments: Draft Fee Schedule as Proposed for Adoption Resolution 4752 Report compiled on: December 8, 2016 46 Page 1 of 3 RESOLUTION NO. 4752 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, AMENDING THE FEE SCHEDULE FOR THE REVIEW OF ZONING, SUBDIVISION, ANNEXATION, GROWTH POLICY PROPOSALS AND OTHER PLANNING RELATED REVIEW PROCESSES, AS ALLOWED BY SECTIONS 7-1-101, 76-3-201(4) AND 76-3-602, MONTANA CODE ANNOTATED (MCA) AND SECTION 38.34.140, BOZEMAN UNIFIED DEVELOPMENT CODE. WHEREAS, the City of Bozeman collects fees to cover the administrative costs of processing and reviewing zoning, subdivision, annexation, growth policy proposals and other planning related review processes; and WHEREAS, said fee schedule must be updated from time to time to reflect changes in City procedures, increases in costs to the City and legislative changes at the State level; and WHEREAS, Section 76-3-201(4), MCA authorizes local governments to collect fees, not to exceed $200, to examine subdivision exemptions and Section 76-3-602, MCA authorizes local governments to establish reasonable fees, to be paid by the subdivider, to defray the expense of reviewing subdivision exemptions; and WHEREAS, the City of Bozeman is authorized to collect fees for the review of annexation, zoning and growth policy proposals, based on the provisions of Section 7-1- 101, MCA, because state statute does not prohibit the collection of fees for annexation, zoning and growth policy proposal review; and 47 Resolution 4752, Adoption of the Annual Inflation Adjustment for the Schedule of Planning Fees Page 2 of 3 WHEREAS, the City of Bozeman has conducted a review of its fees for annexation, zoning and growth policy proposal review and concluded that revisions are necessary; and WHEREAS, the City of Bozeman is authorized to collect fees for the review of annexation, zoning, growth policy proposals and long range planning, based on the provisions of Section 7-1-101, MCA, because state statute does not prohibit the collection of fees for annexation, zoning and growth policy proposal review; and WHEREAS, the City of Bozeman is authorized to collect fees for the development and implementation of the growth policy which fees are in addition to any other authorized review fees, based on the provisions of Section 76-1-410, MCA and the City has committed through Resolution 4112 to the growth policy contents as required; and WHEREAS, Section 38.34.140 of the Bozeman Unified Development Code states that: “The city commission shall establish a schedule of fees, charges and expenses and a collection procedure for reviews, permits, appeals and other matters pertaining to this chapter. The schedule of fees for the procedures listed below shall be set from time to time by the city commission by resolution. The fees shall be available in the office of the planning director and may be altered or amended only by the city commission”; and WHEREAS, The Commission has directed that all base fees, scaled fees and technology fees specified within the fee schedule shall annually be adjusted for inflation based on the United States Department of Labor Employment Cost Index for State and Local Government Workers. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana: 48 Resolution 4752, Adoption of the Annual Inflation Adjustment for the Schedule of Planning Fees Page 3 of 3 Section 1 The fee schedule for the fees, charges and expenses review of zoning, subdivision, annexation and growth policy proposals, building permit review for zoning compliance, and all other reviews associated with the review of applications, agreements and other reviews as specified in the Unified Development Code shall be as follows: See Exhibit A Section 2 This fee schedule shall be in full force and effect on January 1, 2017. PASSED AND APPROVED by the City Commission of the City of Bozeman, Montana at a regular session thereof held on the 19th day of December, 2016. CARSON TAYLOR Mayor ATTEST: ____________________________________ ROBIN CROUGH City Clerk APPROVED AS TO FORM: ___________________________ GREG SULLIVAN City Attorney 49 Resolution 4752 Exhibit A Fee Schedule for Planning Review Applications 1 Fee Schedule for Planning Review Applications Effective January 1, 2017 Project application fee must include all relevant fees from the fee schedule. Please contact the Planning Division staff if you need assistance with fee estimation. The Department of Community Development will make the final, binding calculation of applicable fees for each application. Applicants will be responsible for any additional noticing costs required under Bozeman municipal code. Application Type Base Fee Scaled fee by project size Pre‐Application Consultation ‐ If these charges are incurred, the fees must be paid prior to final project approval. 1 Pre‐application Consultation with City Planners $42 per hour after initial 2 hours Site Development 2 Master Site Plan $1,831 3 Site Plan $2,155 $118 per DU; Non Residential Space 0‐30,000 SF ‐ $542 per 1,000 ft2 Additional ft2‐ $255 per 1,000 ft2 Buildings with four or more stories‐ $102 per 1,000 ft2 after initial 30,000 ft2 ‐ Subdivision Development 4 Subdivision Pre‐Application (Step 1) $ 395 minor/ $862 major $42 per lot 5 Subdivision Preliminary Plat (Step 2) $1,831 minor/ $2,914 major; PLUS noticing fee of $6.50 per physically contiguous property owner $74 per lot 6 Subdivision Final Plat (Step 3) $1,621 minor/ $2,704 major $74 per lot 7 Subdivision Exemption $200 8 Condominium Review (Independent of site development process) $169 Planned Unit Development 9 PUD Concept Plan (Step 1) $1,406 10 PUD Preliminary Plan (Step 2) $1,616 $94 per DU; $292 per 1,000 ft2 of non‐residential space 11 PUD Final Plan (Step 3) $1,406 $92 per DU; $292 per 1,000 ft2 of non‐residential space Annexation 50 Resolution 4752 Exhibit A Fee Schedule for Planning Review Applications 2 Application Type Base Fee Scaled fee by project size 12 Annexation (Including Initial Zone Map Amendment) $1,580 Appeals 13 Appeal of Administrative Interpretation $734 14 Appeal of Administrative Project Decision Original application fee plus $200 for public noticing via newspaper Zoning Reviews & Design Reviews 15 Commercial Reuse $128 16 Commercial/Non‐Residential COA (Independent of a Site Plan or Reuse application) $344 17 Historic Neighborhood (NCOD) Design Review / Residential COA $84 18 Informal Review $277 per Board 19 Zoning Deviation $221 each 20 Zoning Variance or Subdivision Variance $1,816 21 Conditional Use Permit (CUP) $1,508 22 Special Temporary Use Permit $169 per week 23 Comprehensive Sign Plan Review $226 24 Zoning Verification $97 25 Regulated Activities in Wetlands no fee Regulatory Changes 26 Zoning Map Amendment (non‐Annexation) $1,831 $58 per acre 27 UDC Text Amendment $1,662 28 Growth Policy Amendment $2,914 $32 per acre If Growth Policy Map is amended Penalty / Special Consideration Fees ‐ If these charges are incurred, the fees must be paid prior to final project approval. 29 After the Fact Permit $308 in addition to all other applicable fees 30 3rd and Subsequent Submission of Revised Materials 1/4 of total original application fee 31 Modification / Amendment to Approved Plan $277 32 3rd or Subsequent Occupancy Site Inspection $123 33 Extension to Approved Plan $339 if City Commission approval is needed; $103 all others 34 Initial Improvements Agreement (IA) $482 OR 1 percent of face value, whichever is greater 35 Reduction in Security (other than final) $241 36 Impact Fee Deferral $63 Abbreviations: UDC = Unified Development Code; DU = Dwelling Unit; COA = Certificate of Appropriateness; NCOD = Neighborhood Conservation Overlay District; ECOD = Entryway Corridor Overlay District 51 Resolution 4752 Exhibit A Fee Schedule for Planning Review Applications 3 Planning Review Fees for Building & Sign Permits These fees will be assessed and collected by the Building Dept. as part of the permitting process. No planning application is needed. Permit Type Planning Review Fee Sign Permit Review $133 if in Overlay District; $26 all others Residential Building Permit Review $52 Commercial/Industrial Building Permit Review $110 52