HomeMy WebLinkAbout03-04-19 City Commission Packet Materials - A4. Res. 5025, Revising Community Development Review FeesCommission Memorandum
REPORT TO: Mayor and City Commission
FROM: Martin Matsen, Director of Community Development
SUBJECT: Commission Resolution 5025 – Adoption of a revised schedule of
Community Development fees
MEETING DATE: March 4, 2019
AGENDA ITEM TYPE: Action
RECOMMENDATION: Adopt Resolution 5025 amending the fee schedule for the review of
zoning, subdivision, annexation, growth policy proposals and other planning related review
processes. Commission to determine the effective date of Resolution 5025.
RECOMMENDED MOTION: I move to adopt Resolution 5025 amending the fee schedule for
the review of impact fee deferral, zoning, subdivision, annexation, growth policy proposals and
other planning related review processes with an effective date of______________, 2019.
BACKGROUND:
Fee Principles: The City Commission adopted the Bozeman Community Plan in 2009. The
City’s fee approach and schedule is consistent with implementation policies of the Bozeman
Community Plan including 2a which recommends a regular review of programs and
implementation policy 80 which encourages the cost of service be assigned to the user of a
service. The City Commission also had directed an annual inflationary adjustment based on the
United States Department of Labor information each year.
Status: A fee schedule is required by 38.200.140, BMC. Adoption of the schedule is by
resolution. The goal of the fee schedule is cost recovery as part of a continuing commitment to
the citizens of Bozeman to manage public funds responsibly, to simplify the planning process for
all customers, and to continue to offer a level of service that meets community expectations. In
2015, the City completed a time, effort, and expense analysis to determine the costs incurred by
the City to review applications. The current fee schedule is based on this analysis. The City
applies an annual inflation adjustment. (A copy of the current fee schedule, adopted by
Resolution 4996 on January 7, 2019, is attached to this memo for your reference.) The overall
fee schedule appears to have worked fairly well since then.
However, since 2015 the City has created new application types that have been inserted into the
fee schedule, with fees assigned based on estimated effort compared with existing application
types. In addition, some review processes have been substantially revised since 2015. The City
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created additional public outreach processes such as the Community Development web viewer
that require additional staff time to operate.
When the present fee structure was approved in 2015, Staff advised the Commission that a
periodic review of the fees is appropriate. Accordingly, the FY 2020 budget request for the
Department includes money for an overall analysis with identification of costs and assignment to
specific types of reviews. The data (direct and indirect costs and active staff review time) upon
which the fee schedule was based will be reanalyzed. Data analysis will allow the Department to
seek data-based answers to whether an increase or decrease in fees beyond the inflationary
adjustment is appropriate. This periodic update will help ensure that fees are reasonable for the
work performed.
In preparation for the update, Staff recently contacted the five other large cities in the state and
asked questions regarding their approach to review fees. No city identified a deliberate set of fee
setting principles that they consistently used. A summary of findings follows:
Question Answer Summary
Do they collect the long range planning
fee authorized by 76-1-410, MCA?
No cities besides Bozeman are collecting this fee. One
expressed a desire to do so. Several were unaware of this
option in the law.
How do they define
commercial/industrial unit referenced
in 76-1-410?
Not applicable since they are not using the long range fee
options.
Do they collect the LR fee on more than
one type of application?
Not applicable since they are not using the long range fee
options.
Do they use scaled fees in their fee
schedule, e.g. fees get larger for bigger
projects?
Most communities used a base fee plus a per lot fee for
subdivisions. Several had a fee that changed in groupings of
lots that decreased per lot as the total number of lots
increased. Only Kalispell used scaled fees for zoning
applications.
Do they have an upper limit cap on the
amount of a fee charged?
No communities have a maximum fee if they have a scale
fee. Most zoning applications have a fixed fee regardless of
size of the project.
How often do they reevaluate their
application fees?
Two have a scheduled review for either inflation
adjustment or overall update. Three have no fixed
schedule.
Do they attempt full cost recovery for
planning time on each application?
Four other cities do not have a deliberate cost recovery
approach. One is in process of a fee evaluation and is
considering cost recovery. Most made an effort to estimate
time spent on reviewing projects as a basis for their fee.
Several estimated that fees covered 50% or less of actual
cost of project review.
The long range planning (LRP) fee authorized in 76-1-410, MCA is in addition to other
applicable fees. A copy of the statute is attached. The LRP fee is for the purposes of 76-1-102,
MCA.
“76-1-102. Purpose. (1) It is the object of this chapter to encourage local units of
government to improve the present health, safety, convenience, and welfare of their citizens
and to plan for the future development of their communities to the end that highway systems
be carefully planned; that new community centers grow only with adequate highway, utility,
health, educational, and recreational facilities; that the needs of agriculture, industry, and
business be recognized in future growth; that residential areas provide healthy surroundings
for family life; and that the growth of the community be commensurate with and promotive of
the efficient and economical use of public funds.”
The LRP fee has been included as a part of the application fee for subdivision and some zoning
reviews since 2008. A review of 12 projects spanning the range of sizes and types shows the
LRP fee has represented about 28% of total application fees. The LRP fee collected to date is
approximately $327,900. The City has committed approximately $253,000 of the collected LRP
fees to fund the on-going update to the growth policy, contribute to the update of the Downtown
neighborhood plan, contribute to joint planning projects through the Planning Coordinating
Committee with Gallatin County and Belgrade, and support data collection for planning
purposes. Future qualifying projects may include aerial photography for the proposed expansion
of the planning area, studies in cooperation with the Engineering Division to identify infill
restrictions in municipal utilities, improved land use tracking used for growth projections, and
other growth policy preparation and implementation work.
Fee Structure: Development follows many different review paths. Some projects require
subdivision but no further individual zoning applications. Some projects have no subdivision but
may include both a Planned Unit Development and site plans. Some projects only use site plans.
Some sites are subdivided but then sit vacant for many years. Each development type can span a
wide range of complexity and size. Due to the wide variation, fees charged are based on
averages of review for the entire class of a development type. The City has a base fee paired with
a unit cost fee so that larger and more complex projects pay a larger fee more representative of
the effort in review. The scaled fee includes both review time and the LRP fee.
Some fees, such as the subdivision preliminary plat, simply have a cost per lot in their scaled fee.
Others, like site plans, have a tiered fee so that as projects become larger the fee per unit
decreases. Site plans for example stop charging the LRP fee once the building area has exceeded
30,000 square feet.
Current Question: All systems which rely on averages are susceptible to unexpected outcomes
from extraordinary occurrences. Recently an application was submitted that proposed over six
times the non-residential area of any other application in the past several years. For context, the
proposed total building area is over twice the size of the Gallatin Valley Mall. The project
locates this building area on 20+ proposed lots over an unknown period.
Based on the current fee schedule, the extraordinary size of the project results in a very large
application fee. The project includes both a subdivision and a planned unit development (PUD).
Unlike site plans, the current PUD fee structure does not have a decreasing scaled fee.
Summary of proposed changes: Staff has looked at the present application fee schedule and the
unusually large fee being generated by the unusually large application, and suggests several
revisions to the fee table. A summary of the changes follows.
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A. Consolidate the LRP fees so they are not charged at multiple application stages of the same
project. This means that a lot that does not require a follow up site plan will pay the LRP fee
with preliminary plat. A lot that will require a follow up site plan will pay the LRP fee at the
time of the site plan. This approach will apply for both subdivision and PUD developments.
The consolidation makes it easier to track what project sites have already paid the LRP fee.
This means that the application fee would increase for preliminary applications and lessen for
final approval steps. However, the total fees for projects which include multiple development
applications should decrease.
B. Apply the same scaled fee approach used for site plans to PUDs. A fee including both LRP
and review time would be charged for projects of 30,000 square feet or less. The LRP fee
drops off after the 30,000 square feet threshold.
C. Adjust fees depending on whether a PUD will require a follow up site plan. PUDs can take
many forms. Sometimes they are setting a general framework with a requirement that a
separate site plan be approved subsequently before any construction of buildings. Sometimes
they include all the review and entitlements normally seen with a site plan. The scaled fees
have been revised to address either alternative.
UNRESOLVED ISSUES:
A. The proposed revisions will substantially lower the fee due from the extraordinarily large
project recently submitted. However, it will still have a large fee. The Commission may
consider the option to create an upper limit for a fee.
Considering the range of typical project sizes, if the Commission wishes to establish a fee
cap Staff suggests capping fees based on project size rather than a fixed cost. Staff also
suggests caps only apply to site plans and PUDs. These two application types have the
greatest possible range in intensity. This approach could be reconsidered after the fee study
proposed for FY 2020.
If caps are adopted, Staff suggests capping residential at 150 dwelling units and non-
residential at 150,000 sq. ft. This would restrain excessive fees for uniquely large projects but
still apply standard fees for the majority of projects.
B. If the Commission chooses to adopt the resolution the Commission needs to determine an
effective date. It takes some time for staff to update forms and otherwise implement changes.
Staff suggests an effective date not sooner than one week after Commission action.
ALTERNATIVES:
1) Direct staff to amend the draft fee schedule further;
2) Accept the fee schedule as proposed; or
3) As determined by the Commission.
FISCAL EFFECTS: Revenue results will vary based on application volume. A lesser amount
will be collected to support long range plan development and implementation.
Attachments:
Commission Resolution 5025 - draft
Draft Fee Schedule as Proposed for Adoption (Commission Resolution 5025 Exhibit A)
76-1-410, MCA
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Commission Resolution 4996 – current fee schedule adopted Jan. 7, 2019
Report compiled on February 25, 2019
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Page 1 of 3
RESOLUTION NO. 5025
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
COMMUNITY DEVELOPMENT RELATED REVIEW PROCESSES, AS ALLOWED
BY SECTIONS 7-1-101, 76-1-410, 76-3-201(4) AND 76-3-602, MONTANA CODE
ANNOTATED (MCA) AND SECTION 38.200.140, 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(5), 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 review
and growth policy proposal review; and
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Resolution 5025, Adopting a Revised Schedule of Community Development Review Fees
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 has adopted standards for building permits that
require expenditures for review processing for zoning compliance 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 purposes of 76-1-
102, MCA which is accomplished by 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 38.200.140 of the Bozeman Unified Development Code states that:
“The city commission must establish a schedule of fees, charges and expenses and a collection
procedure for reviews, permits, appeals and other matters pertaining to his chapter. The schedule
of fees for the procedures listed below will be set from time to time by the city commission by
resolution. The fees must be available in the office of the community development 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,
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Resolution 5025, Adopting a Revised Schedule of Community Development Review Fees
Page 3 of 3
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:
See Exhibit A
Section 2
This fee schedule shall be in full force and effect on ____________________, 2019.
PASSED, ADOPTED, AND APPROVED by the City Commission of the City of
Bozeman, Montana, at a regular session thereof held on the 4th day of March, 2019.
CYNTHIA L. ANDRUS
Mayor
ATTEST:
ROBIN CROUGH
City Clerk
APPROVED AS TO FORM:
GREG SULLIVAN
City Attorney
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Resolution 5025 Exhibit A
Res. 5025 Exhibit A Fee Schedule for Planning Review Applications 1
Fee Schedule for Planning Review Applications
___________, 2019
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 $44 per hour after initial 2
hours
Site Development
2 Master Site Plan $1,935
3 Site Plan $2,278
$118 per DU;
Non Residential Space
0-30,000 SF - $530 per 1,000
ft2
Additional ft2
- $250 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) $ 477 minor/ $911 major $42 per lot
5 Subdivision Preliminary Plat (Step 2)
$1,935 minor/ $3,079 major;
PLUS noticing fee of $6.50 per
physically contiguous property
owner
$85 per lot subject to sketch
plan/$35 per lot subject to
site plan
6 Subdivision Final Plat (Step 3) $1,713 minor/ $2,858 major $35 per lot
7 Subdivision Exemption $200
8 Condominium Review
(Independent of site development process) $178
Planned Unit Development
9 PUD Concept Plan (Step 1) $1,486
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Resolution 5025 Exhibit A
Res. 5025 Exhibit A Fee Schedule for Planning Review Applications 2
Application Type Base Fee Scaled fee
by project size
10 PUD Preliminary Plan (Step 2) $1,708
If follow up site plan
required: $45 per DU; $140
per 1,000 ft2
of non-
residential space.
If no follow up site plan
required: $95 per DU; 0-
30,000 SF - $530 per 1,000
ft2
non-residential space.
Additional ft2
- $250 per
1,000 ft2
>30,000 sq. ft.
Buildings with four or more
stories- $102 per 1,000 ft2
after initial 30,000 ft2
11
PUD Final Plan (Step 3)
$1,486 $45 per DU; $140 per 1,000
ft2
of non-residential space
Annexation
12 Annexation
(Including Initial Zone Map Amendment) $1,670
Appeals
13 Appeal of Administrative Interpretation $776
14 Appeal of Administrative Project Decision $1,589
Zoning Reviews & Design Reviews
15 Commercial Reuse $135
16 Commercial/Non-Residential COA
(Independent of a Site Plan or Reuse application) $364
17 Historic Neighborhood (NCOD) Design Review / Residential
COA $128
18 Informal Review $293 per Board
19 Zoning Deviation $234 each
20 Zoning Variance or Subdivision Variance – independent $1,919
37 Zoning Departure, Variance, or PUD Relaxation in
association with another application $234 each
38 Special Use Permit (SUP) $1,230
21 Conditional Use Permit (CUP) $1,594
22 Special Temporary Use Permit $178 per week
23 Comprehensive Sign Plan Review $239
24 Zoning Verification $103
25 Regulated Activities in Wetlands no fee
Regulatory Changes
26 Zoning Map Amendment
(non-Annexation) $1,935 $58 per acre
27 UDC Text Amendment $1,757
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Resolution 5025 Exhibit A
Res. 5025 Exhibit A Fee Schedule for Planning Review Applications 3
Application Type Base Fee Scaled fee
by project size
28 Growth Policy Amendment $3,079 $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
$359 if City Commission
approval is needed; $109 all
others
34 Initial Improvements Agreement (IA)
$509 OR
1 percent of face value,
whichever is greater
35 Reduction in Security
(other than final) $254
36 Impact Fee Deferral $65
Abbreviations: UDC = Unified Development Code; DU = Dwelling Unit; COA = Certificate of Appropriateness; NCOD = Neighborhood
Conservation Overlay District;
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 $140 if in Overlay District;
$28 all others
Residential Building Permit
Review $55
Commercial/Industrial
Building Permit Review $116
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
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MCA Contents / TITLE 76 / CHAPTER 1 / Part 4 / 76-1-410 Planning fees…
Montana Code Annotated 2017
TITLE 76. LAND RESOURCES AND USE
CHAPTER 1. PLANNING BOARDS
Part 4. Financial Administration
Planning Fees -- Limit
76-1-410. Planning fees -- limit. (1) Governing bodies that have committed in a resolution to
adopting or that have adopted a growth policy that includes the provisions of 76-1-601(4)(c) may
assess planning fees to pay for services that fulfill the purposes of Title 76, chapter 1. The planning
fees are in addition to any other fees authorized by law and may be collected as part of either
subdivision applications or zoning permits.
(2) Planning fees may not exceed $50 for each residential lot or unit or $250 for each
commercial, industrial, or other type of lot or unit.
History: En. Sec. 3, Ch. 455, L. 2007.
Created by
76-1-410. Planning fees -- limit, MCA Page 1 of 1
https://leg.mt.gov/bills/mca/title_0760/chapter_0010/part_0040/section_0100/0760-0010-00... 2/9/2019
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