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Home My WebLink About12-11-17 City Commission Packet Materials - A4. Resolution 4854, Annual Inflation Adjustment for Community Development Fees Commission Memorandum REPORT TO: Mayor and City Commission FROM: Chris Saunders, Community Development Manager Martin Matsen, Director of Community Development SUBJECT: Commission Resolution 4854 – Adoption of the annual inflation adjustment for the schedule of Community Development fees MEETING DATE: December 11, 2017 AGENDA ITEM TYPE: Action RECOMMENDATION: Adopt Resolution 4854 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. RECOMMENDED MOTION: I move to adopt Resolution 4854 amending the fee schedule, for the annual inflation adjustment and other identified changes, for the review of impact fee deferral, zoning, subdivision, annexation, growth policy proposals and other planning related review processes with an effective date of January 1, 2018. 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 3.1 percent in 2017. This figure is through the third quarter of 2017. 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. The inflation costs were applied only the base fees. Many projects have some type of per unit cost associated with them. Those per unit costs have not been changed. 220 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 fiscal year 2019. 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. 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. There are several changes besides the adjustment for inflation. The cost for appeals has been revised to be based on the direct cost of processing appeals rather than related to the original application fee. Staff identified an average spent on review of an individual appeal of 21.225 hours. This substantially increases the cost to appeal some applications and substantially reduces it for others. New categories have been created for special use permits (SUP) which don’t currently exist but are expected to be authorized soon, and departures which were first created in 2017. The SUP cost is less than for Conditional Use Permits to reflect not needing the cost of advertising in the newspaper and less review time preparing for City Commission review. Departures are set at a cost equal to deviations as they are a more regular part of development review and are for alternative compliance and have broad criteria that requires time for evaluation. A charge has been returned to the cost for residential Certificate of Appropriateness applications to help pay for the needed historic inventory update. The additional charge is $41. The average cost to complete an updated historic inventory is $250. 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. 221 Attachments: Resolution 4854 Draft Fee Schedule as Proposed for Adoption Report compiled on: November 16, 2017 222 Page 1 of 3 COMMISSION RESOLUTION NO. 4854 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 223 Resolution 4854, Amending the Community Development Fee Schedule for the Annual Inflation Adjustment Page 2 of 3 WHEREAS, the City of Bozeman has adopted 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 impact fee deferrals, zoning, subdivision, annexation and growth policy proposals, building permit review for zoning 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 and replaces all previously adopted fees: 224 Resolution 4854, Amending the Community Development Fee Schedule for the Annual Inflation Adjustment Page 3 of 3 See Exhibit A Section 2 This fee schedule shall be in full force and effect on January 1, 2018. 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 December, 2017. ___________ CARSON TAYLOR Mayor ATTEST: ____________________________________ ROBIN CROUGH City Clerk APPROVED AS TO FORM: ____________________________________ GREG SULLIVAN City Attorney 225 Resolution 4854 Exhibit A Fee Schedule for Planning Review Applications 1 Fee Schedule for Planning Review Applications January 1, 2018 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 $43 per hour after initial 2 hours Site Development 2 Master Site Plan $1,888 3 Site Plan $2,222 $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) $ 407 minor/ $889 major $42 per lot 5 Subdivision Preliminary Plat (Step 2) $1,888 minor/ $3,004 major; PLUS noticing fee of $6.50 per physically contiguous property owner $74 per lot 6 Subdivision Final Plat (Step 3) $1,671 minor/ $2,787 major $74 per lot 7 Subdivision Exemption $200 8 Condominium Review (Independent of site development process) $174 Planned Unit Development 9 PUD Concept Plan (Step 1) $1,450 10 PUD Preliminary Plan (Step 2) $1,666 $94 per DU; $292 per 1,000 ft2 of non-residential space 11 PUD Final Plan (Step 3) $1,450 $92 per DU; $292 per 1,000 ft2 of non-residential space Annexation 226 Resolution 4854 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) $1,629 Appeals 13 Appeal of Administrative Interpretation $757 14 Appeal of Administrative Project Decision $1,550 Zoning Reviews & Design Reviews 15 Commercial Reuse $1232 16 Commercial/Non-Residential COA (Independent of a Site Plan or Reuse application) $355 17 Historic Neighborhood (NCOD) Design Review / Residential COA $125 18 Informal Review $286 per Board 19 Zoning Deviation $228 each 20 Zoning Variance or Subdivision Variance $1,872 37 Zoning Departure $228 each 38 Special Use Permit $1,200 21 Conditional Use Permit (CUP) $1,555 22 Special Temporary Use Permit $174 per week 23 Comprehensive Sign Plan Review $233 24 Zoning Verification $100 25 Regulated Activities in Wetlands no fee Regulatory Changes 26 Zoning Map Amendment (non-Annexation) $1,888 $58 per acre 27 UDC Text Amendment $1,714 28 Growth Policy Amendment $3,004 $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 $318 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 $286 32 3rd or Subsequent Occupancy Site Inspection $127 33 Extension to Approved Plan $350 if City Commission approval is needed; $106 all others 34 Initial Improvements Agreement (IA) $497 OR 1 percent of face value, whichever is greater 35 Reduction in Security (other than final) $248 36 Impact Fee Deferral $65 Abbreviations: UDC = Unified Development Code; DU = Dwelling Unit; COA = Certificate of Appropriateness; NCOD = Neighborhood Conservation Overlay District; 227 Resolution 4854 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 $137 if in Overlay District; $27 all others Residential Building Permit Review $54 Commercial/Industrial Building Permit Review $113 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 $225 228