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Home My WebLink About09-11-17 City Commission Packet Materials - A1. Resolution 4833, Short Term Rental Fees Commission Memorandum REPORT TO: Mayor and City Commission FROM: Chris Saunders, Policy and Planning Manager Martin Matsen, Director of Community Development SUBJECT: Commission Resolution 4833 – Adoption of fees for the registration and inspection of short term rentals. MEETING DATE: September 11, 2017 AGENDA ITEM TYPE: Action RECOMMENDATION: Adopt Resolution 4833 amending the fee schedule, for the review of zoning, subdivision, annexation, growth policy proposals and other planning related review processes to include fees for short term rentals, with an effective date of December 1, 2017. RECOMMENDED MOTION: I move to adopt Resolution 4833 amending the fee schedule, for the review of zoning, subdivision, annexation, growth policy proposals and other planning related review processes to include fees for short term rentals, with an effective date of December 1, 2017. EXECUTIVE SUMMARY: The City Commission is scheduled to act for final adoption of Ordinance 1974 on September 11, 2017. Ordinance 1974 adopts new standards and procedures for review of short term rentals. On August 14, 2017, the Commission directed staff to take all necessary actions to implement Ordinance 1974. One of those actions is to establish fees for review and registration of short term rentals. The City will incur costs for software, staff time, and overhead to operate the short term rental registration program. The proposed costs appear to be reasonably related to the cost of administering the program. Ordinance 1974 includes a special process for STRs operating without permits to become lawful. In some cases, a conditional use permit (CUP) will be required for such a process. This CUP requirement would apply only to STRs who would have been required to obtain a CUP under the rules in effect prior to the Interim Zoning Ordinance removing extended stay lodging as an authorized use in R-1, R-2, R-S and NEHMU. There is an existing CUP review fee already included in the planning fees. If the Commission wishes to adopt an alternate fee it can make an addition specifically under the STR section of the resolution exhibit. The City revises application and review fees annually. Therefore, there will be an opportunity to evaluate the costs of program administration and adjust the fees as may be appropriate in the future. ALTERNATIVES: 1) Adopt the proposed fee schedule 402 2) Alter the proposed fees for short term rentals 3) 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: Resolution 4833 Exhibit A- Fee Schedule Report compiled on: August 22, 2017 403 Page 1 of 3 RESOLUTION NO. 4833 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 TO ADD A FEE FOR REGISTRATION OF SHORT TERM RENTALS. 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, 404 Resolution 4833, Adoption of Fees for the Registration and Inspection of Short Term Rentals Page 2 of 3 zoning and growth policy proposal review; and WHEREAS, the City of Bozeman has adopted new standards for short term rentals that require expenditures for review processing for which revenues must be collected to offset; 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.”; NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana: 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 405 Resolution 4833, Adoption of Fees for the Registration and Inspection of Short Term Rentals Page 3 of 3 compliance, registration of short term rentals, 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 PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 11th day of September, 2017. This fee schedule shall be in full force and effect on December 1, 2017. CARSON TAYLOR Mayor ATTEST: ____________________________________ ROBIN CROUGH City Clerk APPROVED AS TO FORM: ___________________________ GREG SULLIVAN City Attorney 406 Resolution 4833 Exhibit A Fee Schedule for Planning Review Applications 1 Fee Schedule for Planning Review Applications August 29, 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 407 Resolution 4833 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 408 Resolution 4833 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 Registration and Inspection Fees for Short Term Rentals These fees will be assessed and collected by the Department of Community Development as part of the registration process. Registration is required annually. A zoning review may be required in addition. Action Fee Short Term Rental Registration $250 Fire Inspection $225 409