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HomeMy WebLinkAbout22.04.18 CD Training memo MEMORANDUM TO: COMMUNITY DEVELOPMENT BOARD FROM: CHRIS SAUNDERS, COMMUNITY DEVELOPMENT MANAGER DATE: APRIL 18, 2022 SUBJECT: IMPACT FEE ADVISORY COMMITTEE TRAINING The primary role of the Community Development Board (CDB) in its capacity as the Impact Fee Advisory Committee (IFAC) is oversight on the calculation and use of impact fees. This responsibility is assigned in state law. This review process provides an opportunity for public input and awareness of the impact fee program and that use of fees meets established criteria for approval. The Staff will provide training and an overview of the impact fee program on April 18, 2022. This memo is in support of that presentation and training. There are numerous references to state and local law in this memo. If the reference has a pattern of ##-#-### or is followed by MCA that is a reference to state law. If the reference has a pattern of XX.XXX.XXX or is followed by BMC that is a reference to Bozeman law. Authority for Impact Fees The State authorizes but does not require local governments to have impact fees. Local regulations must be in alignment with enabling legislation – 7-6-16 et. seq. MCA, passed by the state. The impact fee enabling language has some elements that are quite specific and some that are quite general. There are specific purposes and certain procedures required.. (5) (a) "Impact fee" means any charge imposed upon development by a governmental entity as part of the development approval process to fund the additional service capacity required by the development from which it is collected. An impact fee may include a fee for the administration of the impact fee not to exceed 5% of the total impact fee collected. (b) The term does not include: (i) a charge or fee to pay for administration, plan review, or inspection costs associated with a permit required for development; (ii) a connection charge; (iii) any other fee authorized by law, including but not limited to user fees, special improvement district assessments, fees authorized under Title 7 for county, municipal, and consolidated government sewer and water districts and systems, and costs of ongoing maintenance; or Page 2 of 4 (iv) onsite or offsite improvements necessary for new development to meet the safety, level of service, and other minimum development standards that have been adopted by the governmental entity. Bozeman implements impact fees through 2.06.1600 et. seq. BMC. This part of the municipal code contains the locally adopted standards to implement state requirements and to establish local procedures. Bozeman chooses to use impact fees for Fire/Emergency Services, Water, Sewer, and Transportation services. Impact fees can only be used to fund construction to serve new development. The great majority of impact fee administration occurs at the staff level. The City Manager appoints an Impact Fee Coordinator (IFC) who takes care of most daily work. The IFC is Chris Saunders. The impact fee collection and expenditure follows standard governmental practices for accounting and reporting. Further details are provided below. Growth Policy Bozeman Community Plan 2020 is the seventh long range city-wide land use plan for the community. The BCP2020 and its predecessors provide guidance, along with relevant facility plans, for priorities in how the City installs infrastructure. For several decades, the facility plans and growth policies have encouraged redevelopment, infill, and careful incremental expansion of the City. All of these activities require infrastructure capacity. Data Infrastructure Viewer. The City has created a web based viewer for infrastructure information. This can show locations and details on public utilities like water and sewer pipes, facility plan information for where service expansions are expected, and floodplains. This is “live” information and as new work is completed it is added to the map. If you click on a + sign next to the name of a layer it will open more detailed information. The infrastructure viewer includes information on existing and future construction. Capital Improvement Program. The Capital Improvement Program (CIP) is available through the City’s website. It looks at capital spending from all funding sources over the next five years. It coordinates between funding sources, provides transparency in decision making, and establishes discipline in funding decisions. The CIP is a core element of the City’s budget process. Community Development Board Responsibilities A local government wishing to establish impact fees must have an impact fee advisory committee. The City Commission has assigned these duties to the Community Development Board. 7-6-1604. Impact fee advisory committee. (1) A governmental entity that intends to propose an impact fee ordinance or resolution shall establish an impact fee advisory committee. Page 3 of 4 (2) An impact fee advisory committee must include at least one representative of the development community. The committee shall review and monitor the process of calculating, assessing, and spending impact fees. (3) The impact fee advisory committee shall serve in an advisory capacity to the governing body of the governmental entity. There are two activities by which the CDB meets its responsibilities. 1) The City prepares an impact fee study for each type of fee every four years. This study examines existing conditions, identifies needed future improvements which impact fees may fund, identifies costs of construction, and establishes the cost per unit of service. These various elements are required by 7-6-1602. The IFAC provides a public forum for this work. The City chooses a contractor to do the analysis and prepare the needed documentation. These studies are the basis for assessing and collecting impact fees. 2) Each fall the City prepares a CIP which identifies upcoming construction projects and funding sources. This is the process the City uses to expend impact fees. The IFAC reviews the recommended CIP prepared by staff and provides a recommendation to the City Commission. This typically takes two meetings and happens in late October and early November. Members of the public can suggest projects for inclusion. A key element of the CIP is the scheduling of work. Ex Parte Communication Review of impact fee studies and recommendations for Capital Improvements to the City Commission are policy actions. The City has discretion within the state set boundaries for impact fees to find a balance between the many community priorities. The public and applicant have the right to be aware of what factors are being considered during evaluation of impact fees and to have decisions made by impartial parties. Policy making actions and the restrictions on contact outside of public meetings are less than for quasi-judicial actions like subdivision. However, there is still a need for transparency in decision making. For this reason, Board members should encourage commenters to submit comments through the formal channels of agenda@bozeman.net email or presentation at a meeting where the item is being discussed. If someone discusses a pending application with you please notify other board members on the record at the beginning of the action item on the agenda of the substance of the conversation. If you have questions on an application that you do not believe can properly wait until the public meeting please contact the staff member identified on the staff report. Making Adequate Findings Board decisions must adequately explain what the Board decided and upon what considerations it based its findings. Findings are the legal footprints of a review to explain how the reviewer progressed from facts through established policies to the final decision. Findings must be based on substantial evidence in light of the whole record of the review. Page 4 of 4 Findings: 1. Provide a framework for making principled decisions 2. Help make analysis orderly and reduce likelihood of missing steps in the analysis 3. Enable all interested parties to determine whether and on what basis judicial review of a decision should be sought 4. Show to a reviewing court the basis for the agency’s action 5. Show to the public that review is careful, reasoned, and equitable The staff recommendations that come during evaluation of CIP proposals or fee studies address all five purposes. The Board does not have to reinvent all the staff findings. In the cover memos included with each packet recommended language will be included to adopt the staff findings for that item. If the Board concludes the staff findings are correct, no further findings are needed. If the Board finds differently than staff on an element of review the Board member should articulate the criteria, relevant facts, and how they reached a different conclusion. Such Board statements then become part of the record for the City Commission to consider in making their own decision. Depending on the degree of difference, the final motion by the Board may need to be revised to identify the differences in findings from the staff recommendation. Public Comment The public is welcome to comment on any item that comes before the Community Development Board. Public comment can be submitted by any member of the public in support, opposition, or otherwise. Regardless of the content of the comment, for it to be actionable in the review process it must connect back to the review criteria. This becomes an important part of the Findings process if as a result of comment a decision is made. Comments not related to the criteria are still accepted as part of the review but are not actionable to justify a decision.