HomeMy WebLinkAboutOrdinance 08- 1730 Amending Chapter 3.24, Impact Fees
ORDINANCE NO. 1730
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA, AMENDING CHAPTER 3.24, IMPACT FEES, BMC TO CONFORM TO
REQUIREMENTS OF STATE LAW, ADOPT UPDATED TRANSPORTATION IMPACT
FEES, INCORPORATE AND ADOPT DOCUMENTATION REQUIRED BY STATE LAW.
Preamble
WHEREAS, the City of Bozeman is committed to addressing the community's expressed
needs and desires for services; and
WHEREAS, the City of Bozeman is committed to meeting those desires and demands for
services in a fiscally responsible manner; and
WHEREAS, the City of Bozeman is committed to meeting those desires and demands for
services in a manner which recognizes the fiscal and legal interest of all of the system users now and
in the future and not a limited subset of users; and
WHEREAS, the City of Bozeman has developed and adopted an impact fee capital
improvements program, which distinguishes current and future transportation needs and provides a
lawful, logical, balanced, operationally sound, and cost effective basis upon which to maintain and
develop the City's transportation system; and
WHEREAS, Sections 7-6-1601 through 7-6-1604, MCA provide specific authority and
guidance about the necessary documentation to establish an impact fee and procedures to adopt and
administer an impact fee; and
WHEREAS, The City of Bozeman adopted an impact fee program in 1996 through
ordinance 1414; and,
WHEREAS, Bozeman has commissioned updates to the impact fee studies which calculate
the cost of individual impact fees; and,
WHEREAS, the State of Montana adopted Sections 7-16-1601 through 7-16-1604 providing
guidance to local governments regarding impact fees and establishing certain standards for impact
fee adoption; and,
WHEREAS, Bozeman wishes to update its ordinance relating to impact fees to incorporate
newly adopted studies for transportation facilities; and,
WHEREAS, the City of Bozeman retained Tindale-Oliver & Associates, Inc. to analyze and
assess growth and development projections and capital improvement needs in order to determine the
additional demand per unit of land use created by new development for transportation facilities
anticipated to be placed on the City as a result of new development; and,
WHEREAS, Tindale-Oliver & Associates reviewed the existing demand and needs for
transportation facilities, the existing facilities available to meet that demand, and the method of
financing the existing systems and needed new facilities; and,
WHEREAS, Tindale-Oliver & Associates additionally reviewed the contribution made or to
p.1
be made in the future in cash or by taxes, fees, or assessments by property owners towards the capital
costs of transportation facilities; and,
WHEREAS, Tindale-Oliver & Associates reviewed and relied upon the City of Bozeman's
current level of service (LOS) standards and facility cost assumptions in recommending
transportation impact fees; and,
WHEREAS, Tindale-Oliver & Associates has prepared a transportation impact fee study
dated October 31, 2007 (the Fee Study), including the assumptions, population and residential and
non-residential development projections, capital infrastructure and impact fee calculations, which
study has been submitted to and reviewed by City staff and officials; and,
WHEREAS, the Fee Study and the City's capital improvement and facilities plans are based
on a level of service standard as established in Section 18.44.060.D ofthe Bozeman Municipal Code
and the roadway capacities indicated in the 2001 Greater Bozeman Transportation Plan Update
which are hereby incorporated by reference; and
WHEREAS, in addition to the Fee Study, Tindale-Oliver & Associates and the City have
prepared, updated, and relied upon other documentation, as required by section 7-6-1602 of the
Montana Code Annotated, in developing the transportation facilities impact fees adopted pursuant to
this Ordinance (collectively, the "Impact Fee Data and Analysis"), including but not limited to the
following:
(1) 2001 Greater Bozeman Transportation Plan Update;
(2) Title 18, Unified Development Ordinance; BMC;
(3) Design and Specifications Manual;
(4) Street Impact Fee Capital Improvement Program;
(5) Capital Improvements Program for General Fund, Street Maintenance Fund, and Street
Impact Fee Fund;
(6) the City of Bozeman Trip Characteristics Study, Final Report, dated August, 31 2007;
(7) the City Budget; and
(8) Specified bid tabulations.
WHEREAS, the Fee Study and Impact Fee Data and Analysis are hereby incorporated and
approved for purposes of developing and implementing transportation impact fees in accordance
with Montana law; and
WHEREAS, the Fee Study has been presented to and reviewed by the City's Impact Fee
Advisory Committee and the City Commission and the City Commission has, determined that:
(1) impact fees are necessary to offset the costs to the City associated with meeting the
transportation facility demands created by projected new residential and non-residential
development in order to maintain the existing levels of service (LOS) currently provided to
City residents and relied upon in the Fee Study and supported by other Impact Fee Data &
Analysis;
(2) the amount of the impact fees recommended in the Fee Study are reasonably related and
p.2
attributable to new development's share of the cost of infrastructure improvements made
necessary by such development;
(3) the expenditure of impact fees, pursuant to the terms of this Ordinance, will result in a
beneficial use to such new development reasonably related to the impact fees, per dwelling
unit, by type and per increment of non-residential development;
(4) the recommended impact fees do not include the cost to correct any existing deficiencies
in the transportation system or for operation or maintenance costs;
(5) the amount of the impact fees recommended in the Fee Study to not exceed a
proportionate share of the costs incurred or to be incurred by the City in accommodating the
development, based on the identified need for transportation system improvements required
to serve new development and the non-impact fee contributions new development is
reasonably anticipated to make in the future;
(6) the data and analysis relied upon in the Fee Study, including trip characteristics, trip
exchange district, travel, and other demographic data, are representative of existing travel
conditions in Bozeman, and,
WHEREAS, based on the findings and recommendations set forth in the Fee Study and the
Impact Fee Data and Analysis, the benefits resulting from impact fee expenditures for transportation
facility improvements to be constructed with impact fee revenues is citywide and therefore the City
has determined that onc transportation service area, as established by this Ordinance, is appropriate;
and
WHEREAS, based on the findings and recommendations set forth in the Fee Study and the
Impact Fee Data and Analysis, Central Business District land uses have reduced impacts on the
transportation system; and
WHEREAS, the City has prepared and will update on an annual basis impact fee capital
improvement plans and documentation that include transportation improvements to ensure that new
development paying impact fees under this Ordinance receive a beneficial use from facilities
constructed through the expenditure of impact fees, as required by law; and,
WHEREAS, the 2001 Greater Bozeman Area Transportation Plan Update currently is being
updated and upon completion of said plan, the City will evaluate the effects, if any, of the update on
impact fees imposed by this Ordinance and will take appropriate action, as necessary, to ensure no
fee payer subject to this Ordinance has or will pay more than its proportionate share of the costs to
mitigate its impacts on the transportation system as provided herein; and
WHEREAS, the City has and will continue to designate impact fee revenues solely for the
purpose of providing transportation system capital improvements required to accommodate new
development and has and will continue to implement its impact fee capital improvement program to
ensure impact fee revenues are not used to correct existing deficiencies in facilities or to fund
operations and maintenance costs; and
WHEREAS, this Ordinance is necessary to protect the public health, safety and general
welfare of the citizens of Bozeman; and
WHEREAS, the Impact Fee Advisory Committee has reviewed and made recommendation
p. 3
regarding the impact Fee Study and revisions to ordinance and that recommendation has been
received by the City Commission; and,
WHEREAS, the Consultant assisting the City of Bozeman in the preparation of the
transportation impact fee program did receive and respond to public comment and when appropriate
made revisions to the draft Fee Study; and
WHEREAS, the amendments were the subject ofa public hearing held on November 26,
2007.
NOW THEREFORE, BE IT ORDAINED BY the Bozeman City Commission:
Section 1
That Chapter 3.24 ofthe Bozeman Municipal Code be amended so that it reads:
Chapter 3.24
IMPACT FEES
Sections:
3.24.010 Legislative Findings
3.24.020 Authority and Applicability
3.24.030 Intent
3.24.040 Definitions
3.24.050 Transportation Impact Fees
3.24.060 Fire Protection Impact Fees
3.24.070 Water Impact Fees
3.24.080 Wastewater Impact Fees
3.24.090 Refunds of Development Impact Fees Paid
3.24.100 Credits Against Development Impact Fees
3.24.110 Miscellaneous Provisions
3.24.010 Legislative Findings
The City Commission of the City of Bozeman, Montana finds that:
A. The protection of the health, safety, and general welfare of the citizens of the city
requires that the street, fire protection, water, and wastewater systems of the city be
expanded and improved to accommodate continuing growth within the city and within
those areas directly served by its Fire Department and within those areas connected to
its water and wastewater systems.
B. New residential and nonresidential development imposes increased and excessive
demands upon existing city facilities.
p.4
C. New development often overburdens existing public facilities, and the tax revenues
generated from new development often do not generate sufficient funds to provide
public facilities to serve the new development.
D. New development is expected to continue and will place ever-increasing demands on
the city to provide public facilities to serve new development.
E. The creation of an equitable development impact fee system would enable the City to
impose a proportionate share of the costs of required improvements to the city's
transportation, fire protection, water, and wastewater systems on those developments
that create the need for them.
F. All types of development that are not explicitly exempted from the provisions ofthis
chapter will generate demand for city's transportation, fire protection, water, and
wastewater services or facilities that will require improvements to city facilities and
equipment.
G. The city's transportation impact fee study, dated October 31, 2007, prepared by
Tindale-Oliver & Associates and as updated, and the fire impact fee study dated
October 1995 and as updated, prepared by James Duncan and Associates, and water
and wastewater impact fee studies dated July 2007, prepared by HDR Engineering, set
forth reasonable methodologies and analyses for determining the impacts of various
types of development on the city's street, fire protection, water and wastewater systems
and for determining the cost of acquiring land and the cost of acquiring or constructing
facilities and equipment necessary to meet the demands for such services created by
new development.
H. The City establishes as city standards the assumptions and service standards referenced
in the impact fee studies and other duly adopted documents as part of its current plans
for the transportation system and for the city's fire protection, water, and wastewater
systems.
1. The documentation required by 7-6-1602, MCA is collectively contained in the City's
facility plans, impact fee studies, development regulations, financial records, capital
improvements program, design and specification manual, and other city documents.
1. The development impact fees described in this chapter are reasonably related to the
service demands and needs of new development and are based on the above-cited
impact fee studies and documentation and do not exceed the costs of acquiring
additional land and the costs of acquiring or constructing additional facilities or
equipment required to serve the new developments that will pay the fees.
K. All transportation improvements upon which the transportation impact fees are based
and upon which transportation impact fee revenues will be spent, based on the
limitations set forth in this chapter will benefit all new development in the city; and it
is, therefore, appropriate to treat the entire city as a single service area for purposes of
calculating, collecting, and spending the transportation impact fees, while recognizing
differences in the demand for service based upon the identified factors set forth in the
transportation impact fee study.
L. All of the fire protection improvements listed in the fire impact fee study will benefit
all new development that receives fire protection service directly from the City Fire
Department; and it is, therefore, appropriate to treat the entire city and all properties
p. 5
served directly by the City Fire Department as a single service area for purposes of
calculating, collecting, and spending the fire protection impact fees.
M. All ofthe water system improvements listed in the water impact fee study will benefit
all new development that connects to the city water system; and it is, therefore,
appropriate to treat the entire city and all properties connected to the city water system
as a single service area for purposes of calculating, collecting, and spending the water
impact fees.
N. All of the wastewater system improvements listed in the wastewater impact fee study
will benefit all new development that connects to the city wastewater system; and it is,
therefore, appropriate to treat the entire city and all properties connected to the city
wastewater system as a single service area for purposes of calculating, collecting, and
spending the wastewater impact fees.
O. There is both a rational nexus and a rough proportionality between the development
impacts created by each type of development covered by this chapter and the
development impact fees that such development will be required to pay.
P. The City's facility planning, capital improvement program, development review, and
bidding processes crcate a public process by which, on a specific and detailed basis,
the capacity expanding components of construction can be identified and funded
distinctly from those components which are not capacity expanding by providing for
evaluation by the City and the Impact Fee Advisory Committee of future needs relatcd
to growth, identification of applicable funding sources, and monitoring of construction
and payments.
Q. This chapter creates a system by which development impact fees paid by new
developments will be used to expand or improve the city transportation, fire protection,
water, and wastewater systems in ways that benefit the dcvelopment that paid each fee
within a reasonable period of time after thc fee is paid.
R. This chapter creates a system under which development impact fees shall not be used
to cure existing dcficiencies in public facilities or to pay maintenance or operations
costs associated with providing public facilities.
3.24.020 Authority and Applicability
A. This chapter is enacted pursuant to the city's selfMgovemment powers, the authority
granted to the City by the Montana State Constitution, Sections 7-6-1601 through 7-6-
1604, and Sections 7-1- 4123, 7-1-4124, 7M3A313, 7-7-4404, 7M7-4424, 7-13M4304,
and 69-7-101 of the Montana Code Annotated.
B. The provisions of this chapter shall apply to all of the territory within the limits of the
city.
C. The provisions of this chapter related to the fire protection impact fees shall also apply
to all properties located outside the city that are served directly by the City Fire
Department.
D. The provisions of this chapter relatcd to water impact fees shall also apply to all
properties located outside the city that are connected to the city watcr system.
E. The provisions of this chapter relatcd to wastewater impact fecs shall also apply to all
properties located outside the city that are connected to the city wastcwater system.
3.24.030 Intent
p.6
A. This chapter is adopted to help implement the comprehensive plan of the city, the city's
2001 transportation plan update prepared by Robert Peccia & Associates, and as
updated, the September 2006 draft of the water facility plan prepared for the City by
Allied Engineering and Robert Peccia and Associates, and as updated, and the May
2006 draft of the wastewater facility plan prepared for the City by HDR Engineering
and Morrison-Maierlie, Inc., and as updated.
B. The intent of this chapter is to ensure that new development bears a proportionate
share of the cost of improvements to the city transportation, fire protection, water, and
wastewater systems; to ensure that such proportionate share does not exceed the cost of
the transportation, fire protection, water, and wastewater facilities and equipment
required to serve such new developments; and to ensure that funds collected from new
developments are actually used to construct improvements to the city transportation,
fire protection, water, and wastewater systems that reasonably relate to the benefits
accruing to such new developments.
C. It is the further intent of this chapter that new development pay for its proportionate
share of public facilities through the imposition of development impact fees that will
be used to finance, defray, or reimburse all or a portion of the costs incurred by the
City to construct improvements to the city transportation, fire protection, water, and
wastewater systems that serve or benefit such new development.
D. It is not the intent ofthis chapter to collect any money from any new development in
excess of the actual amount necessary to offset new demands for transportation, fire
protection, water, or wastewater improvements generated by that new development.
E. It is not the intent of this chapter that any monies collected from any development
impact fee and deposited in an impact fee fund ever be co-mingled with monies from a
different impact fee fund or ever be used for a type of facility or equipment different
from that for which the fee was paid.
3.24.040 Definitions
A. "Central Business District" (CBD) means land uses established within the B-3,
"Central Business District," zoning district.
B. "Development" means any construction or expansion of a building, structure, or use,
any change in use of a building or structure, or any change in the use of land, which
creates additional demand for public services.
C. "Development impact fees" means the transportation impact fee, fire protection impact
fee, water impact fee, and wastewater impact fee established by this chapter.
D. "Development Impact Fees Review Committee" means the committee composed of the
Impact Fee Coordinator, the Building Official, the Director of Public Service, the Fire
Chief, and the Director of Planning and Community Development, or their designees
appointed to serve in the member's place at a meeting.
E. "Encumber" means to legally obligate by contract, or otherwise commit to use by
appropriation or other official act ofthe City.
F. "Impact Fee Capital Improvement Program" means the capital improvements program
for the transportation system, the city fire protection system, and the city water and
wastewater systems, which shall assign monies from each impact fee fund to specific
projects and related expenses for improvements to the type of facilities or services for
which the fees in that fund were paid, and shall not include improvements needed to
correct existing deficiencies or operations or maintenance costs.
p. 7
G. "Impact Fee Coordinator" means the Director ofthe City's Department of Planning
and Community Development or the Director's designee.
H. "Impact fee funds" means the transportation impact fee fund, fire protection impact fee
fund, water impact fee fund, and wastewater impact fee fund established by this
chapter.
1. "Impact fee studies" means the transportation impact fee study, dated October 31,
2007, prepared by Tindale-Oliver & Associates and as updated, and the fire impact fee
study, dated October 1995 and as updated, prepared by James Duncan and Associates,
and the water and wastewater impact fee studies dated May 2007, prepared by I-lOR
Engineering.
J. "Improvement" means planning, land acquisition, engineering design, construction
inspection, on-site construction, off-site construction, equipment purchases, and
financing costs associated with new or expanded facilities, buildings, and equipment
that expand the capacity of a facility or service system and that have an average useful
life of at least ten years. "Improvement" does not include maintenance, operations, or
improvements that do not expand capacity.
K. "Independent fee calculation study" means a study prepared by an applicant for a
building permit or water or wastewater connection permit calculating the cost of
expansions or improvements to the city's transportation, fire protection, water, or
wastewater systems required to serve the applicant's proposed development; that is
performed on an average cost (not marginal cost) methodology; uses the service units
and unit construction costs stated in the impact fee studies; and is performed in
compliance with any criteria for such studies established by this chapter or by the City.
L. "Initiation of construction" means the date ofthe preconstruction meeting with the City
Engineer or his/her designee, or the date of the first visible change in the physical
condition of the improved site caused by the first person furnishing services or
materials to effect construction of the improvement, whichever occurs first.
M. "Project-related improvements" means site-related improvements including, without
limitation, all access streets adjacent to the proposed development or leading only to
the proposed development and not included on the transportation system; all streets
and driveways within the development; all acceleration, deceleration, right, or left turn
lanes leading to any streets and driveways within the development; all traffic control
devices for streets and driveways within the development; all water lines or facilities
adjacent to, leading to, or located within the development and serving only the
development; all wastewater lines or facilities adjacent to, leading to, or located within
and serving only the development; and all off-site improvements necessary for thc
safety and code compliance of a development. Credit for incidental improvements
shall not be allowed. The presumption shall be made that the minimum improvement
needed to serve a project shall be deemed to be a project improvement even if
additional capacity is thereby created that may be potentially used by other
developments presently or in the future.
N. "Transportation system" means capacity-adding improvements to collectors or arterial
roads of three lanes or more, which are included on the 2001 Greater Bozeman
Transportation Plan Update or the City's impact fee capital improvement program, and
which will benefit new development as required by law and this chapter. Themtransportation system includes only those bicycle and pedestrian facilities built in
conjunction with and included in a capacity-adding transportation facility improvement
p.8
otherwise eligible for impact fee funding pursuant to the terms of this chapter. The
"transportation system" does not include project-related improvements.
O. "Trip Exchange District" means a defined geographic area that meets the following
criteria, pursuant to the transportation fee study and an independent fee calculation
study as provided in section 3.24.050(B)(3), BMC:
1. The use of shared and consolidated parking;
2. A high degree of pedestrian and bicycle access to and throughout the
proposed development;
3. The availability of public transit;
4. Extensive trip capture within the proposed development where trips to the
proposed development result in visits to multiple businesses in the area via a
mode other than automobile;
The following additional physical development characteristics are associated with
trip exchange district land uses:
1. The majority of buildings associated with the proposed development are
multi-story buildings, often more than two stories;
2. Diverse business proprietorships within the development;
3. Primary use at the ground floor is commercial;
4. The majority of individual businesses within the development are less than
20,000 square feet;
5. Structures within the development are in near to each other and the public
street (with small or no setbacks);
6. Having a high percentage building coverage on the lot and typically in excess
of 0.5; and
7. The physical characteristics are shared among the entire business area, not
just one or a few of the businesses.
8. The area should be at least 50% developed as measured by lot area utilized.
9. The area is the subject of a city enforceable common plan of development,
such as an urban renewal plan.
3.24.050 Transportation Impact Fees
A. Imposition of Transportation Impact Fees
1. On or after March 23, 1996, any person who seeks to obtain any of the
following forms of development approval is required to pay a transportation
impact fee in the amount specified in Table 3.24.050:
a. A building permit;
b. Any other permit that will result in the construction of
improvements that will generate additional traffic; or
c. Any extension of any such permit that was issued before the
effective date of this chapter;; or
d. Any delayed payment of impact fees as specified and approved by
the City Commission in accordance with the BMC Title 17, Chapter
p. 9
2 for Workforce Housing Lots.
2. Notwithstanding the above subsection, no impact fee shall be imposed earlier
than the issuance of a building permit for developments requiring a building
permit.
3. No permits of the types described in Subsection A(l) of this section shall be
issued until the transportation impact fee described in this chapter has been
paid, unless the development for which the permit is sought is exempted by
Subsection F of this section.
B. Computation of Amount of Transportation Impact Fee
1. An applicant required by this chapter to pay a transportation impact fee may
choose to have the amount of such fee determined pursuant to either
Subsection (B)(2) or (B)(3) of this section. The amount ofthe fee calculated
pursuant to either Subsection (B)(2) or (B)(3) shall be subject to the
following adjustment:
a. F or the first expansion of an existing nonresidential building, the
amount calculated shall not include the amount calculated for the
expansion of up to thirty percent as compared with its size on
February 22, 1996, or two thousand square feet, whichever is less.
b. The transportation impact fees adopted are those shown in Table
3.24.050, BMC and as updated as provided for in this Chapter.
1. Beginning on February 16,2008 the amount of the fee collected
shall be sixty percent (60%) ofthe amount calculated.
2. Unless an applicant requests that the City determine the amount of such fee
pursuant to Subsection (B)(3) of this section, the City shall determine the
amount of the required transportation impact fee by reference to Table
3.24.050. The fee amounts set forth in such table include credits for expected
future receipts of state and federal highway funds and expected future
receipts of gas tax revenues, and all other non-impact fee sources of funding
anticipated to be made by or as a result of new development to be applied to
the transportation improvements required to serve new development.
a. If the applicant's development is of a type not listed in Table
3.24.050, then the City shall use the fee applicable to the most
nearly comparable type or land use in the table. In making a
decision about which use is most nearly comparable, the City shall
be guided by the most recent edition of "Trip Generation: An
Information Report" prepared by the Institute of Transportation
Engineers; or if such publication is no longer available, then by a
similar publication. If the City determines that there is no
p. 10
comparable type of land use listed in the table, then a new fee shall
be determined by:
1. Finding the most nearly comparable trip generation rate
from the above publication; and
2. Applying the formula set forth in Subsection (B)(3)(d) of
this section.
b. Ifthe applicant's development includes a mix ofthose uses listed in
Table 3.24.050, then the fee shall be determined by adding up the
fees that would be payable for each use if it were a freestanding use
pursuant to Table 3.24.050.
c. If the applicant is applying for an extension of a permit issued
previously, then the fee shall be the net increase between the fee
applicable at the time of the current permit application and any
transportation impact fee previously paid pursuant to this chapter for
the same structure. In the event that the fee applicable at the time of
the current permit application is lower than the transportation
impact fee previously paid pursuant to this chapter for the same
structure, there shall be no refund of transportation impact fees
previously paid.
d. If the applicant is applying for a permit to allow a change of use or
the expansion, redevelopment, or modification of an existing
development, the fee shall be based on the net positive increase in
the fee for the new use as compared to the previous use. However,
no new fee shall be imposed unless an additional unit of service
demand is created, in accordance with Table 3.24.50. Ifnecessary
to determine such net increase, the City shall be guided by the most
recent edition of "Trip Generation: An Information Report"
prepared by the Institute of Transportation Engineers; or if such
publication is no longer available, then by a similar publication. In
the event that the proposed change of use, expansion,
redevelopment, or modification results in a net decrease in the fee
for the new use or development as compared to the previous use or
development, there shall be no refund oftransportation impact fees
previously paid.
3. An applicant may request that the City determine the amount of the required
transportation impact fee by reference to an independent fee calculation study
for the applicant's development prepared by qualified professional traffic
engineers and/or economists at the applicant's cost and submitted to the City
Engineer. Any such study must show the traffic engineering and economic
methodologies and assumptions used, including, but not limited to, those
forms of documentation listed in Subsections (B)(3)(a) and (B)(3)(b) of this
section and must be acceptable to the City pursuant to Subsection (B)(3)( c) of
this section.
p. 11
a. Traffic engineering studies must include documentation of trip
generation rates, trip lengths, any percentage of trips from the site
that represent net additions to current trips from the site, the
percentage of trips that are new trips as opposed to pass-by or
divert-link trips, and any other trip data for the proposed land use.
b. Economic studies must include documentation of any special factors
that the applicant believes will reduce the traffic volumes otherwise
attributable to the proposed land use.
c. The City shall consider all such documentation and any independent
fee calculation study submitted by the applicant, but shall not be
required to accept any such study or documentation that the City
deems to be inaccurate or unreliable and may request that the
applicant submit additional or different documentation for
consideration. Any independent fee calculation study submitted by
an applicant may be accepted, rejected, or accepted with
modifications by the City as the basis for calculating transportation
impact fees.
d. Upon acceptance, or acceptance with modifications, of an
independent fee calculation study and documentation, the City shall
use the following formulas to determine the transportation impact
fee:
Net Impact Fee = Total Impact Cost - Gas Tax Credit - Ad Valorem Credit
Where:
Total Impact Cost = ((Trip Rate x Assessable Trip Length x % New Trips) /
2) x (1 -Interstate Adj. Factor) x (Cost per Lane Mile / A vg. Capacity Added
per Lane Mile)
Total Gas Tax Credit = Present Value (Annual Gas Tax Credit), given 4.6%
interest rate & 25-year facility life
Annual Gas Tax Credit = (((Trip Rate x Total Trip Length x % New Trips) /
2) x Effective Days per Year x $lGallon to Capital) / Fuel Efficiency
And where:
Trip Rate = the average daily trip generation rate, in vehicle-trips/day
Assessable Trip Length = the actual average trip length for the category,
in vehicle miles
Total Trip Length = the assessable trip length plus an adjustment factor of
half a mile is added to the trip length to account for the fact that gas taxes
are collected for travel on all roads including local roads
% New Trips = adjustment factor to account for trips that are already on
the roadway
Divide by 2 = The total daily miles of travel generated by a particular
category (i.e., rate X length X % new trips) is divided by two to prevent
the double-counting of travel generated among land use codes since every
trip has an origin and a destination.
p.12
Interstate Adjustment Factor = adjustment factor to account for the travel
demand occurring on interstate highways (15.0%)
Cost per Lane Mile = unit cost to construct one lane mile of roadway, in
$/lane mile($3,678,522 per study and will be subject to inflationary
adjustments)
A verage Capacity Added per Lane Mile = represents the average daily
traffic on one travel lane at capacity for one lane mile of roadway, in
vehicles/lane-mile/day (8,658 per study)
Cost per Vehicle Mile of Capacity = unit cost to construct to provide a
vehicle mile of capacity ($472.92 per study)
Present Value = calculation of the present value of a uniform series of
cash flows, gas tax payments in this case, given an interest rate, "i," and a
number of periods, "n;" for 4.6% interest and a 25-year facility life, the
uniform series present worth factor is 14.6768
Effective Days per Year = 365 days
$/Gallon to Capital = the amount of gas tax revenue per gallon of fuel that
is used for capital improvements, in $/gallon ($0.102)
Fuel Efficiency = average fuel efficiency of vehicles, in vehicle-
miles/gallon (17.70)
C. Payment of Transportation Impact Fee
1. An applicant for any ofthe permits or extensions listed in Subsection (A)(1)
of this section shall pay the transportation impact fee required by this chapter
to the City prior to the issuance of any such permit.
2. All funds paid by an applicant pursuant to this chapter shall be identified as
transportation impact fees and shall be promptly deposited in the
transportation impact fee fund described in Subsection D of this section.
D. Transportation Impact Fee Funds
1. A single transportation impact fee fund is created and such fund shall be
maintained in an interest bearing account.
2. Such fund shall contain only those transportation impact fees collected
pursuant to this chapter and any interest which may accrue from time to time
on such amounts.
E. Use of Transportation Impact Fee Funds. The monies in the transportation impact fee
fund shall be used only as follows:
1 To acquire land for and/or acquire or construct capacity-adding capital
improvements to the transportation system reasonably related to the benefits
accruing to new development subject to the terms of this chapter, in
accordance with the requirements of Montana law; or
2 To pay debt service on such capital improvements to the transportation
system; or
3 For purposes of refunds or credits, as described in Sections 3.24.090 or
3.24.100(G)); and
4. May not be used for
a. operations or maintenance purposes;
b to correct existing deficiencies; or
p.13
c. for bicycle or pedestrian facilities not built in conjunction with and
included in a capacity-adding transportation system facility, otherwise
eligible for impact fee funding.
F. Exemptions from Transportation Impact Fee
1. The following types of development shall be exempted from payment of the
transportation impact fee:
a. Alterations, remodeling, rehabilitations, expansions of existing
buildings, or other improvements to an existing structure where no
additional vehicle trips will be produced over and above those
produced by the existing use;
b. Construction of accessory buildings or structures that will not
produce additional vehicle trips over and above those produced by
the primary building or land use;
c. The replacement of a destroyed or partially destroyed building or
structure with a new building or structure of the same size and use
where no additional vehicle trips will be produced over and above
those produced by the original building or structure;
d. The installation or replacement of a mobile home on a lot or a
mobile home site when a transportation impact fee for such lot or
site has previously been paid pursuant to this chapter or where a
mobile home legally existed on such site on or prior to the effective
date of this chapter;
e. Any other type of development for which the applicant can
demonstrate that the proposed land use and development will
produce no more vehicle trips from such site over and above the
trips from such site prior to the proposed development, or for which
the applicant can show that a transportation impact fee for such site
has previously been paid in an amount that equals or exceeds the
transportation impact fee that would be required by this chapter for
such development.
2. Any such claim for exemption must be made no later than the time when the
applicant applies for the first permit or a type listed in Subsection (A)(1) of
this section for the proposed development, and any claim for exemption not
made at or before that time shall have been waived.
3. The City Manager or his designee shall determine the validity of any claim
for exemption pursuant to the criteria set forth in Subsection (F)(l) of this
section.
TABLE 3.24.050
The following transportation impact fees apply to developments not located in the Central Business
District or a designated Trip Exchange District.
ITE LUC Land Use Unit Fee*
RESIDENTIAL:
p.14
ITE LUC Land Use Unit Fee*
210 Single Family (Detached)
Less than 1,500 sf and very low income(2) du $2,171
Less than 1,500 sf and low income (3) du $3,147
Less than 1,500 sf du $3,968
1,500 to 2,499 sf du $5,396
2,500 sf or larger du $6,082
220 Apartments du $3,339
230 Residential Condominium! Townhouse du $2,946
240 Mobile Home Park du $1,593
LODGING:
310 Hotel room $3,063
320 Motel room $1,678
RECREATION:
430 Golf Course hole $12,295
411 City Park acre $546
444 Movie Theaters 1,000 sf $6,463
INSTITUTIONS:
610 Hospital 1,000 sf $6,023
620 Nursing Home bed $381
520 Elementary School student $315
530 High School student $477
540 University (7,500 or fewer students) (4) student $609
550 University (more than 7,500 students) (4) student $529
560 Church! Synagogue 1,000 sf $2,428
565 Day Care 1,000 sf $7,433
OFFICE:
710 50,000 sf or less 1,000 sf $3,977
710 50,001-100,000 sf 1,000 sf $3,623
710 100,001-200,000 sf 1,000 sf $3,084
710 greater than 200,000 1,000 sf $2,460
720 Medical Office 1,000 sf $9,584
RETAIL:
820 under 50,000 sf 1,000 sf $9,378
820 50,000-99,000 sf 1,000 sf $9,587
820 100,000-199,000 sf 1,000 sf $9,331
820 200,000-299,000 sf 1,000 sf $8,567
820 greater than 300,000 sf 1,000 sf $8,144
812 Building Material! Lumber 1,000 sf $21,209
813 Discount Super-Store 1,000 sf $26,996
817 Nursery/Garden Center 1,000 sf $18,903
851 Convenience Store 1,000 sf $44,607
931 Quality Restaurant 1,000 sf $22,036
934 Fast Food Rest wI Drive- Thru 1,000 sf $61,225
841 New/Used Auto Sales 1,000 sf $12,033
890 Furniture Store 1,000 sf $1,684
p.15
ITE LUC Land Use Unit Fee*
912 Bank! Savings Drive-in 1,000 sf $31,706
INDUSTRY:
110 General Light Industrial 1,000 sf $2,290
140 Manufacturing 1,000 sf $1,250
150 Warehouse 1,000 sf $1,627
151 Mini - Warehouse 1,000 sf $810
(1) Source: Transportation Impact Fee Study, Appendix F, Table F.1
(2) Defined as 50% of city median income based on 2007 Gallatin County Average Median
Income (AMI)
(3) Defined as 80% of city median income based on 2007 Gallatin County Average Median
Income (AMI)
(4) Impact fee to be assessed on structures with classroom facilities. All auxiliary structures such
as administrative buildings and research centers are to be charged at the office land use rate.
The following transportation impact fees apply to developments located in the Central Business
District or within a designated Trip Exchange District.
ITE LUC Land Use Unit Fee*
RESIDENTIAL:
210 Single Family (Detached)
Less than 1,500 sf and very low income(2) du $2,171
Less than 1,500 sf and low income(3) du $3,147
Less than 1,500 sf du $3,968
1,500 to 2,499 sf du $5,396
2,500 sf or larger du $6,082
220 Apartments du $3,339
230 Residential Condominium! Townhouse du $2,946
240 Mobile Home Park du $1,593
LODGING:
310 Hotel room $2,835
320 Motel room $1,333
RECREATION:
430 Golf Course hole $4,333
411 City Park acre $182
444 Movie Theaters 1,000 sf $2,333
INSTITUTIONS:
610 Hospital 1,000 sf $6,023
620 Nursing Home bed $381
520 Elementary School student $315
530 High School student $477
540 University (7,500 or fewer students) (4) student $609
550 University (more than 7,500 students) (4) student $529
560 Church/Synagogue 1,000 sf $2,428
565 Day Care 1,000 sf $7,433
OFFICE:
p.16
ITE LUC Land Use Unit Fee*
710 50,000 sf or less 1,000 sf $3,187
710 50,001-100,000 sf 1,000 sf $2,911
710 100,001-200,000 sf 1,000 sf $2,475
710 greater than 200,000 sf 1,000 sf $1,974
720 Medical Office 1,000 sf $9,584
RETAIL:
820 under 50,000 sf 1,000 sf $5,284
820 50,000-99,000 sf 1,000 sf $5,452
820 100,000-199,000 sf 1,000 sf $5,182
820 200,000-299,000 sf 1,000 sf $5,115
820 greater than 300,000 sf 1,000 sf $4,999
812 Building Material/Lumber 1,000 sf $21 ,209
813 Discount Super-Store 1,000 sf $26,996
817 Nursery/Garden Center 1,000 sf $18,903
851 Convenience Store 1,000 sf $44,607
931 Quality Restaurant 1,000 sf $6,009
934 Fast Food Rest w/ Drive- Thru 1,000 sf $22,164
841 New/ Used Auto Sales 1,000 sf $12,033
890 Furniture Store 1,000 sf $1,684
912 Bank! Savings Drive-in 1,000 sf $24,133
INDUSTRY:
110 General Light Industrial 1,000 sf $2,290
140 Manufacturing 1,000 sf $1,250
150 Warehouse 1,000 sf $1,627
151 Mini - Warehouse 1,000 sf $810
(1) Source: Transportation Impact Fee Study, Appendix F, Table F-2
(2) Defined as 50% of city median income based on 2007 Gallatin County Average Median
Income (AMI)
(3) Defined as 80% of city median income based on 2007 Gallatin County Average Median
Income (AMI)
(4) Impact fee to be assessed on structures with classroom facilities. All auxiliary structures such
as administrative buildings and research centers are to be charged at the office land use rate.
*Compiler's Note: The Transportation Impact Fees listed in this formula shall be
adjusted annually as per 3.24.IIO.K.
3.24.060 Fire Protection Impact Fees
A. Imposition of Fire Protection Impact Fees
1. On or after March 23, 1996, any person who seeks to obtain:
a. A building permit; or
b. Any other permit that will result in construction that will generate
demand for fire protection services; or
p.17
c. Any extension of any such permit that was issued before the
effective date of this chapter, is required to pay a fire protection
impact fee in the amount specified in this chapter; or
d. Any delayed payment of impact fees as specified and approved by
the City Commission in accordance with the BMC Title 17, Chapter
2 for Workforce Housing Lots.
2. No permits of the types described in Subsection (A)(l) of this section shall be
issued until the fire protection impact fee described in this chapter has been
paid, unless the development for which the permit is sought is exempted by
Subsection F of this section.
B. Computation of Amount of Fire Protection Impact Fee
1. An applicant required by this chapter to pay a fire protection impact fee may
choose to have the amount of such fee determined pursuant to either
Subsection (B)(2) or (B)(3) of this section. The amount ofthe fee calculated
pursuant to either Subsection (B)(2) or (B)(3) ofthis section shall be subject
to the following adjustment:
p.18
a. F or the first expansion of an existing nonresidential building, the
amount calculated shall not include the amount calculated for the
expansion of up to thirty percent as compared with its size on
February 22, 1996, or two thousand square feet, whichever is less.
2. Unless an applicant requests that the City determine the amount of such fee
pursuant to Subsection (B)(3) of this section, the City shall determine the
amount of the required fire protection impact fee by reference to Table
3.24.060.
a. If the type of development that a permit is applied for is not listed in
Table 3.24.060, then the City shall use the fee applicable to the most
nearly comparable type or land use in the table.
b. If the type of development that a permit is applied for includes a
mix of those uses listed in Table 3.24.060, then the fee shall be
determined by adding up the fees that would be payable for each use
ifit were a freestanding use pursuant to Table 3.24.060.
c. If the applicant is applying for an extension of a permit issued
previously, then the fee shall be the net increase between the fee
applicable at the time of the current permit application and any fire
protection impact fee previously paid pursuant to this chapter for the
same structure. In the event that the fee applicable at the time of the
current permit application is lower than the fire protection impact
fee previously paid pursuant to this chapter for the same structure,
there shall be no refund of fire protection impact fees previously
paid.
d. If the applicant is applying for a permit to allow a change of use or
for the expansion, redevelopment, or modification of an existing
development, the fee shall be based on the net increase in the fee for
the new use as compared to the previous use. In the event that the
proposed change of use, expansion, redevelopment, or modification
results in a net decrease in the fee for the new use or development as
compared to the previous use or development, there shall be no
refund of fire protection impact fees previously paid.
3. An applicant may request that the City determine the amount of the required
fire protection impact fee by reference to an independent fee calculation study
for the applicant's development prepared at the applicant's cost by qualified
professional fire protection experts and/or economists and submitted to the
City Fire Chief. Any such study shall be based on the same service standards
and unit costs for fire protection used in the fire impact fee study prepared by
James Duncan and Associates dated October 1995 and as updated, and must
document the economic methodologies and assumptions used. Any
independent fee calculation study submitted by an applicant may be accepted,
rejected, or accepted with modifications by the City as the basis for
calculating fire protection impact fees. If such study is accepted or accepted
with modifications as a more accurate measure of the demand for new fire
protection facilities and equipment created by the applicant's proposed
development than the applicable fee shown in Table 3.24.060, then the fire
p.19
protection impact fee due under this chapter may be calculated according to
such study.
C. Payment of Fire Protection Impact Fees
1. An applicant required by this chapter to pay a fire protection impact fee shall
pay such fee to the City prior to the issuance of any of the permits listed in
Subsection (A)(I) of this section.
2. All funds paid by an applicant pursuant to this chapter shall be identified as
fire protection impact fees and shall be promptly deposited in the fire
protection impact fee fund described in Subsection D ofthis section.
D. Fire Protection Impact Fee Funds
1. A single fire protection impact fee fund is created and such fund shall be
maintained in an interest bearing account.
2. Such fund shall contain only those fire protection impact fees collected
pursuant to this chapter and any interest which may accrue from time to time
on such amounts.
E. Use of Fire Protection Impact Fee Funds. The monies in the fire protection impact fee
fund shall be used only:
1 To acquire or construct fire protection improvements within the city; or
2 To pay debt service on any portion of any future general obligation bond
issue or revenue bond issue used to finance the acquisition or construction of
fire protection improvements within the city; or
3 As described in Sections 3.24.090 or 3.24.100(0).
F. Exemptions from Fire Protection Impact Fee
1. The following types of development shall be exempted from payment of the
fire protection impact fee:
a. Reconstruction, expansion, or replacement of a previously existing
residential unit that does not create any additional residential units.
b. Construction of unoccupied accessory units related to a residential
unit.
c. Projects that the applicant can demonstrate will produce no greater
demand for fire protection from such land than existed prior to
issuance of such permit.
d. Projects for which a fire protection impact fee has previously been
paid in an amount that equals or exceeds the fire protection impact
fee that would be required by this chapter.
2. Any such claim for exemption must be made no later than the time when the
applicant applies for the first permit of a type listed in Subsection (A)(I) of
this section for the proposed development, and any claim for exemption not
made at or before that time shall have been waived.
3. The City Manager or his designee shall determine the validity of any claim
for exemption pursuant to the criteria set forth in Subsection (F)( 1) of this
section.
p.20
Table 3.24.060
FIRE PROTECTION IMP ACT FEE SCHEDULE
TYPE OF DEVELOPMENT FIRE PROTECTION IMP ACT FEE
RESIDENTIAL
Single-Family Detached $178.61 per unit
Single-Family Attached $149.99 per unit
Duplex $112.49 per unit
Multi-Family $ 81.90 per unit
Mobile Home $ 81.90 per unit
OFFICE/INSTITUTIONAL PER 1.000 SQUARE FEET
Under 10,000 square feet $ 90.79
Between 10,000 and 49,999 square feet $174.66
50,000 square feet and over $350.31
COMMERCIAL/HOTEL PER 1.000 SQUARE FEET
Under 10,000 square feet $174.66
Between 10,000 and 49,999 square feet $266.43
Between 50,000 and 99,999 square feet $441.10
100,000 square feet and over $524.97
INDUSTRIAL PER 1.000 SQUARE FEET
Under 10,000 square feet $174.66
Between 10,000 and 49.999 square feet $350.31
50,000 square feet and over $524.97
*Compiler's Note: The Fire Protection Impact Fees listed in this formula shall be
adjusted annually as per 3.24.110.K
3.24.070Water Impact Fees
A. Imposition of Water Impact Fees
1. On or after March 23, 1996, any person who seeks to obtain a permit for
connection to the city water system, or who is subject to subsection (B)(2)(b)
and applies for a city permit to expand or add to the structure served by a
previously approved water connection, or any extension of such a permit
issued before the effective date of this chapter, is required to pay a water
impact fee in the amount specified in this chapter; or
2. Any delayed payment of impact fees as specified and approved by
the City Commission in accordance with the BMC Title 17, Chapter
2 for Workforce Housing Lots.
3. No permits for connection to the city water system shall be issued until the
water impact fee described in this chapter has been paid, unless the
development for which the permit is sought is exempted by Subsection F of
this section.
p.21
B. Computation of Amount of Water Impact Fee
1. The City shall determine the amount of the required water impact fee by
reference to Table 3.24.070 unless the applicant chooses to submit an
individualized calculation pursuant to subsection (B)(2)(a) or the City
determines the application to be subject to subsection (B)(2)(b). If the
applicant is applying for a replacement for a water connection permit issued
previously, then the fee shall be the net positive difference between the fee
applicable at the time of the current permit application and any water impact
fee previously paid pursuant to this chapter for the same structure. In the
event that the fee applicable at the time ofthe replacement permit application
is lower than the water impact fee previously paid pursuant to this chapter for
the same structure, there shall be no refund of water impact fees previously
paid.
3. Individualized Calculations.
a. An applicant may request that the City determine the amount of the
required water impact fee by reference to an independent fee calculation
study for the applicant's development prepared at the applicant's cost by
a professional engineer and/or economist and submitted to the City
Public Service Director. Any such study shall be based on the same
service standards and unit costs used in the water impact fee study
prepared by HDR Engineering dated May 2007, and as updated, and
must document the economic methodologies and assumptions used. Any
independent fee calculation study submitted by an applicant may be
accepted, rejected, or accepted with modifications by the City as the
basis for calculating water impact fees. If such study is accepted, or
accepted with modifications, as a more accurate measure ofthe demand
for new water facilities created by the applicant's proposed development
than the applicable fee shown in Table 3.24.070, then the water impact
fee due under this chapter may be calculated according to such study.
b. The City may identifY a user as having extraordinary demands for water
service which are not accurately represented by the average usage which
was relied upon by the methodology which generated Table 3.24.070. In
this circumstance the City shall prepare a customized calculation based
upon the Large Meter calculation methodology in Exhibit 6 of the Water
Impact Fee study. The impact fee paid for water meters larger than 3
inches as of the effective date of this ordinance may be adjusted based on
actual usage. Ifusage is greater than 110% of anticipated volume during
the 12 month period of time beginning 6 months after building
occupancy is granted by the City, an additional impact fee may be
charged, using the same techniques for calculating peak day and storage
EDUs and multiplying by the peak day impact fee cost per EDU and the
storage impact fee cost per EDU then in effect. The additional impact fee
is the positive net between a previously calculated impact fee and the
impact fee based upon the metered demand.
p.22
C. Payment of Water Impact Fee
1. An applicant required by this chapter to pay a water impact fee shall pay such
fee to the City prior to the issuance of a water connection permit.
2. All funds paid by an applicant pursuant to this chapter shall be identified as
water impact fees and shall be promptly deposited in the water impact fee
fund described in Subsection D of this section.
D. Water Impact Fee Funds
1. A single water impact fee fund is created and such fund shall be maintained
in an interest bearing account.
2. Such fund shall contain only those water impact fees collected pursuant to
this chapter and any interest which may accrue from time to time on such
amounts.
E. Use of Water Impact Fee Funds. The monies in the water impact fee fund shall be
used only:
1. To acquire or construct improvements to the city water system; or
2. To pay debt service on any portion of any future general obligation bond
issue or revenue bond issue used to finance improvements to the city water
system; or
3. As described in Sections 3.24.090 or 3.24.100(G).
F. Exemptions from Water Impact Fees
1. The following types of development shall be exempted from payment ofthe
water impact fee:
a. Alteration or expansion of an existing building that does not require
an additional or larger water meter;
b. Replacement ofa building or structure of the same size that does not
require an additional or larger water meter;
c. The location of mobile home on a site for which a water impact fee
was previously paid, and that does not require an additional or larger
water meter.
2. The installation of fire lines for fire protection shall be exempted from
payment of the water impact fee.
3. Any such claim for exemption must be made no later than the time when the
applicant applies for the first permit of a type listed in Subsection (A)(1) of
this section for the proposed development, and any claim for exemption not
made at or before that time shall have been waived.
4. The City Manager or his designee shall determine the validity of any claims
for exemption pursuant to the criteria set forth in Subsections (F)(l) and
(F)(2) of this section.
p.23
Table 3.24.070
WATER IMPACT FEE SCHEDULE*
SIZE OF WATER METER COST PER METER
3/4 inch $ 3.310
1 inch $ 8.275
1 Y2 inch $ 16.550
2 inch $ 26.480
3 inch $ 52.960
Larger than 3 inch calculated
*Compiler's Note: The Cost Per Meter Fees listed in this formula shall be adjusted
annually as per 3.24.110. K.
3.24.080Wastewater Impact Fees
A. Imposition of Wastewater Impact Fees
1. On or after March 23, 1996, any person who seeks to obtain a permit for
connection to the city wastewater system, or who is subject to subsection
(B)(2)(b) and applies for a city permit to expand or add to the structure served
by a previously approved water connection, or any extension of such a
permit issued before the effective date of this chapter is required to pay a
wastewater impact fee in the amount specified in this chapter; or
2. Any delayed payment of impact fees as specified and approved by
the City Commission in accordance with the BMC Title 17, Chapter
2 for Workforce Housing Lots.
3. No permits for connection to the city water system shall be issued until the
water impact fee described in this chapter has been paid, unless the
development for which the permit is sought is exempted by Subsection F of
this section.
B. Computation of Amount of Wastewater Impact Fee
1. The City shall determine the amount of the required wastewater impact fee by
reference to Table 3.24.080 070 unless the applicant chooses to submit an
individualized calculation pursuant to subsection (B)(2)(a) or the City
determines the application to be subject to subsection (B)(2)(b). If the
applicant is applying for a replacement for a wastewater connection permit
issued previously, then the fee shall be the net positive difference between the
fee applicable at the time of the current permit application and any
wastewater impact fee previously paid pursuant to this chapter for the same
structure. In the event that the fee applicable at the time of the replacement
permit application is lower than the wastewater impact fee previously paid
pursuant to this chapter for the same structure, there shall be no refund of
wastewater impact fees previously paid.
2. Individualized Calculations.
a. An applicant may request that the City determine the amount of the
required wastewater impact fee by reference to an independent fee
calculation study for the applicant's development prepared at the
p.24
applicant's cost by a professional engineer and/or economist and
submitted to the City Public Service Director. Any such study shall be
based on the same service standards and unit costs used in the
wastewater impact fee study prepared by HDR Engineering dated May
2007, and as updated, and must document the economic methodologies
and assumptions used. Any independent fee calculation study submitted
by an applicant may be accepted, rejected, or modified by the City as the
basis for calculating wastewater impact fees. If such study is accepted or
accepted with modifications as a more accurate measure of the demand
for new wastewater facilities created by the applicant's proposed
development than the applicable fee shown in Table 3.24.080, then the
wastewater impact fees due under this chapter shall be calculated
according to such study.
b. The City may identify a user as having extraordinary demands for
wastewater service which are not accurately represented by the average
usage which was relied upon by the methodology which generated Table
3.24.080. In this circumstance the City shall prepare a customized
calculation based upon the methodology in the Water Impact Fee study.
When applicable an adjustment for high strength discharge will be
applied. The impact fee paid for water meters larger than 3 inches as of
the effective date of this ordinance may be adjusted based on actual
usage. If usage is greater than 110% of anticipated volume during the 12
month period of time beginning 6 months after building occupancy is
granted by the City, an additional impact fee may be charged, using the
same techniques for calculating treatment and collection in EDUs and
multiplying by the impact fee cost per EDU. The additional impact fee is
the positive net between a previously calculated impact fee and the
impact fee based upon the metered demand.
C. Payment of Wastewater Impact Fee
1. An applicant required by this chapter to pay a wastewater impact fee shall pay
such fee to the City prior to the issuance of a wastewater connection permit.
2. All funds paid by an applicant paid pursuant to this chapter shall be identified
as wastewater impact fees and shall be promptly deposited in the wastewater
impact fee fund described in Subsection D of this section.
D. Wastewater Impact Fee Funds
1. A single wastewater impact fee fund is created and such fund shall be
maintained in an interest bearing account.
2. Such fund shall contain only those wastewater impact fees collected pursuant
to this chapter and any interest which may accrue from time to time on such
amounts.
E. Use of Wastewater Impact Fee Funds. The monies in the wastewater impact fee fund
shall be used only:
1. To acquire or construct improvements to the city wastewater system; or
2. To pay debt service on any portion of any future general obligation bond
issue or revenue bond issue used to finance improvements to the city
wastewater system; or
3. As described in Section 3.24.090 or Section 3.24.1 OO(G).
p.25
F. Exemptions from Wastewater Impact Fees
1. The following types of development shall be exempted from payment of the
wastewater impact fee:
a. Alteration or expansion of an existing building that does not require
an additional or larger water meter;
b. Replacement of a building or structure of the same size that does not
require an additional or larger water meter;
c. The location of mobile home on a site for which a wastewater
impact fee was previously paid and that does not require an
additional or larger water meter;
2. Any such claim for exemption must be made no later than the time when the
applicant applies for the first permit of a type listed in Subsection (A)(1) of
this section for the proposed development, and any claim for exemption not
made at or before that time shall have been waived.
3. The City Manager or his designee shall determine the validity of any claim
for exemption pursuant to the criteria set forth in Subsection (F)(1) of this
section.
Table 3.24.080
W ASTEW ATER IMP ACT FEE SCHEDULE
SIZE OF WATER METER COST PER METER*
3/4 inch $ 2.955
1 inch $ 7.388
I VI inch $ 14775
2 inch $ 23 640
3 inch $ 47 280
Larger than 3 inch calculated
*Compiler's Note: The Cost Per Meter Fees listed in thisformula shall be adjusted
annually as per 3.24. 110.K.
3.24.090 Refunds of Development Impact Fees Paid
Refunds of development impact fees shall be made only in the following instances and in the
following manner:
A. Upon application to the Impact Fee Coordinator by the applicant, the City shall refund
the development impact fee paid if capacity is available and service is denied.
B.
]. Upon application to the Impact Fee Coordinator, the City shall refund the
development impact fee paid and not expended or encumbered within ten
years from the date the development impact fee was paid or spent in a
manner not in accordance with this chapter or section 17-6-1602 of the
Montana Code Annotated. Refunds shall be paid to the owner of the property
p.26
at the time the refund is due. In determining whether development impact
fees have been expended or encumbered, fees shall be considered
encumbered on a first-in, first-out (FIFO) basis.
2. When the right to a refund exists due to a failure to expend or encumber
development impact fees, the City shall publish written notice within thirty
days after the expiration of the ten year period from the date development
impact fee was paid. The published notice shall contain the heading "Notice
of Entitlement to Development Impact Fee Refund."
C. If an applicant has paid a development impact fee required by this chapter and has
obtained any ofthe types of permits or extensions listed in Sections 3.24.050 (A)(1),
3.24.060 (A)(1), 3.24.070 (A)(I), or 3.24.080(A)(1), and the permit or extension for
which the fee was paid later expires without the possibility of further extension, then
the applicant who paid such fee shall be entitled to a refund of the fee paid, without
interest. In order to be eligible to receive such refund, the applicant who paid such fee
shall be required to submit an application for such refund within thirty days after the
expiration of the permit or extension for which the fee was paid.
D. A refund application shall be made to the Impact Fee Coordinator within one year from
the date such refund becomes payable under Subsections A and B ofthis section, or
within one year from the date of publication of the notice of entitlement of a refund
under Subsection B of this section, whichever is later. Any refund not applied for
within said time period shall be deemed waived.
E. A refund application shall include information and documentation sufficient to permit
the Impact Fee Coordinator to determine whether the refund claimed is proper and, if
so, the amount of such refund.
F. A refund shall include a pro rata share of interest actually earned on the unused or
excess development impact fee paid.
G. All refunds shall be paid within sixty days after the Impact Fee Coordinator determines
that such refund is due. (Ord. 1418 ~ 7,1996; Ord. 1414 ~ 1 (part), 1996)
H. Any refund payable pursuant to Subsections A and B of this section, shall be made to
the record owner of property as of the date the refund was due.
3.24.100 Credits Against Development Impact Fees
A. After the effective date of this chapter, mandatory or voluntary land or easement
dedications for transportation, fire protection, water, or wastewater improvements, and
mandatory or voluntary acquisition or construction of capital improvements to the
transportation system or the city fire protection, water, or wastewater systems by an
applicant in connection with a proposed development may result in a pro rata credit
against the development impact fee for the same type of service or facility otherwise
due for such development, except that no such credit shall be awarded for:
1. Projects or land dedications not listed on the impact fee capital improvements
program; or
2. Land dedications for, or acquisition or construction of, project-related
improvements as defined in Section 3.24.040(G) or Section 3.24.040; or
3. Any voluntary land or easement dedications not accepted by the City; or
4. Any voluntary acquisition or construction of improvements not approved in
writing by the City prior to commencement ofthe acquisition or construction.
p.27
B. In order to obtain a credit against development impact fees otherwise due, an applicant
must submit a written offer to dedicate to the City specific parcels of qualifying land or
easements, or to acquire or construct specific improvements to the transportation
system or the City fire protection, water, or wastewater systems in accordance with all
applicable State or City design and construction standards, and must specifically
request a credit against such development impact fees. Such written request must be
made on a form provided by the City, must contain a statement under oath of the facts
that qualify the applicant to receive a credit, must be accompanied by documents
evidencing those facts, and must be approved not later than the initiation of
construction of improvements or the acceptance by the City ofland dedications, or the
applicant's claim for the credit shall be waived. The granting of credit shall be
approved by the City Commission. The City shall approve a credit only after showing
that the need for the dedication or construction is clearly documented pursuant to
section 7-6-1602 of the Montana Code Annotated, and that any land dedication
proposed for credit is determined to be appropriate for the proposed use.
1. Upon receipt of a complete application for impact fee credit the Impact Fee
Coordinator shall coordinate review of the application for compliance with the
requirements ofthis chapter and other relevant requirements. Upon completion of
the review the Impact Fee Coordinator shall either: forward the application to the
City Manager, or when required to the City Commission, for approval or; if the
application is insufficient or otherwise does not conform to the City's
requirements shall communicate in writing to the applicant the reason the credit
request failed. If the application satisfies the requirements and is approved the
credit may be provided in any of the allowed forms as described in Subsection G.
a. Factors for Consideration
(1) When credit is sought for an improvement listed in the second through
fifth years of the CIP after the current fiscal year there shall be a
rebuttable presumption that any credit shall be awarded as a credit
balance and not as cash.
(2) The final decision to approve a credit request in excess of $1,000,000
from a single impact fee fund shall be made by the City Commission.
(3) In the event that the City Manager believes that a credit request may
result in a significant effect on policy decisions the credit request may be
referred to the City Commission for final action regardless ofthe dollar
amount.
(4) In the event that the City considers that award of a credit may negatively
impact its ability to construct improvements listed sooner in time on the
CIP they may decline to award a credit at that time without removing the
item from the CIP.
2. Appeals relating to staff decisions on credit requests may be appealed to the City
Commission per Subsection 3.24.110.1
C. The credit due to an applicant shall be calculated and documented as follows:
1. Credit for qualifying land or easement dedications shall, at the applicant's
option, be valued at:
p.28
a. One hundred percent of the most recent assessed value for such land
as shown in the records of the City Assessor; or
b. That fair market value established by a private appraiser acceptable
to the City in an appraisal paid for by the applicant.
2. In order to receive credit for qualifying acquisition or construction of
transportation, fire protection, water, or wastewater improvements, the
applicant shall submit complete engineering drawings, specifications, and
construction cost estimates to the City. The City shall determine the amount
of credit due based on the information submitted, or, if it determines that such
information is inaccurate or unreliable, then on alternative engineering or
construction costs acceptable to the City.
D. Approved credits shall become effective at the following times:
1. Approved credit for land or easement dedications shall become effective
when the land has been conveyed to the City in a form acceptable to the City,
and at no cost to the City, and has been accepted by the City Commission.
When such conditions have been met, the City shall note that fact in the
credit record maintained by the City Finance Department. Upon request of
the credit holder, the City shall send the credit holder a letter stating the credit
balance available to him (or her).
2. Approved credits for the acquisition or construction of transportation, fire
protection, water, or wastewater improvements shall generally become
effective when:
a. All required construction has been completed and has been accepted
by the City; and
b. A suitable maintenance and warranty bond has been received and
approved by the City; and
c. All design, construction, inspection, testing, bonding, and
acceptance procedures have been completed in compliance with all
applicable City and State procedures.
However, approved credits for the construction of improvements may become
effective at an earlier date if the applicant posts security in the form of a
performance bond, irrevocable letter of credit, or escrow agreement, and the
amount and terms of such security are accepted by the City. At a minimum, such
security must be in the amount ofthe approved credit or an amount determined to
be adequate to allow the City to construct the improvements for which the credit
was given, whichever is higher. When such conditions have been met, the City
shall note that fact in the credit record maintained by the City Finance
Department. Upon request of the credit holder, the City shall also send the credit
holder a letter stating the credit balance available to him (or her).
E. Approved credits may be used to reduce the amount of development impact fees due
from any proposed development for the same type of service or facility for which the
applicant dedicated land or acquired or constructed improvements until the amount of
the credit is exhausted. Each time a request to use credit from a mandatory or
p.29
voluntary dedication, acquisition, or construction is presented to the City, the City shall
reduce the amount ofthe development impact fee of the same type otherwise due from
the applicant and shall note in the city records the amount of credit remaining, if any.
In the case of a mandatory dedication, acquisition, or construction, any credit in excess
of the amount of the development impact fee otherwise due under this chapter shall be
deemed excess credit that is remaining and available for use by the applicant. In the
case of a voluntary dedication, acquisition, or construction, any credit in excess ofthe
amount of the development impact fee of the same type and applicable to the project,
as shown in Tables 3.24.050, 3.24.060, 3.24.070, or 3.24.080, shall be deemed excess
credit that is remaining and available for use by the applicant. Upon request of the
credit holder, the City shall also send the credit holder a letter stating the amount of
credit remaining to him (or her).
F. Approved credit shall only be used to reduce the amount of development impact fees
of the same type otherwise due under this chapter and shall not be paid to the applicant
in cash or in credit against any development impact fees for a different type of facility
or service or against any other monies due from the applicant to the City, except as
described in Subsection G ofthis section.
G. If the amount of approved credit for a mandatory dedication, acquisition, or
construction exceeds the amount of the development impact fees of the same type
otherwise due under this chapter, the applicant may request in writing that the City
provide for reimbursement of any excess credit to the applicant in cash. Such written
request must be approved not later than the initiation of construction of improvements,
or the acceptance by the City of land dedications, or the applicant's claim shall be
waived. Upon receipt of such a written request, the City may, at its discretion:
1. Arrange for the reimbursement of such excess credit from the impact fee fund
for the same type of service or facility from development impact fees paid by
others;
2. Arrange for the reimbursement of such excess credit through the issuance of a
promissory note payable in not more than ten years and bearing interest equal
to the interest rate paid by the City for its long-term debt; or
3. Reject the request for cash and provide credit. Such excess credit shall be
valued at one hundred percent of actual developer costs for the excess
improvements, or at the actual appraised value of such excess improvements,
at the City's option.
H. Credit may be transferred from one holder to another by any written instrument clearly
identifying the credit issued under Subsection C ofthis section that is to be transferred,
provided that such instrument is signed by both the transferror and transferee, and that
the document is delivered to the City for registration of the change in ownership.
I. In the event that land is annexed into the city from Gallatin County after the effective
date ofthis chapter, and that road or fire impact fees have been previously paid to the
County, an applicant proposing a development on the land may request in writing a
credit against the transportation impact fee equal to the amount of any road impact fee
paid to the County for the same land and may also request a credit against the fire
protection impact fee equal to the amount of any fire protection impact fee paid to the
County for the same land. Such written request must be filed not later than the time
p. 30
when an applicant applies for the first permit of a type listed in Sections
3.24.050(A)(1) or 3.24.060(A)(1) that creates an obligation to pay the type of
development impact fee against which the credit is requested, or the applicant's claim
shall be waived.
3.24.110Miscellaneous Provisions
A. Interest earned on monies in any impact fee fund shall be considered part of such fund
and shall be subject to the same restrictions on use applicable to the impact fees
deposited in such fund.
B. No monies from any impact fee fund shall be spent for periodic or routine maintenance
of any facility of any type or to cure deficiencies in public facilities existing on the
effective date ofthis chapter.
C. Nothing in this chapter shall restrict the City from requiring an applicant to construct
reasonable project improvements required to serve the applicant's project, whether or
not such improvements are of a type for which credit is available under Section
3.24.100.
D. The City shall maintain accurate records of the development impact fees paid,
including the name of the person paying such fees, the project for which the fees were
paid, the date of payment of each fee, the amounts received in payment for each fee,
and any other matters that the City deems appropriate or necessary to the accurate
accounting of such fees, and such records shall be available for review by the public
during city business hours,
E. At least once during each fiscal year of the City, the City Administrative Services
Director shall present to the City Commission a proposed impact fee capital
improvements program for the transportation system, fire protection system, water
system, and wastewater system, which identifies the capacity~adding capital
improvements that will benefit new development subject to the terms of this chapter,
exclusive of any improvements needed to correct existing deficiencies or for operation
or maintenance purposes. Such capital improvements program shall assign monies
from each impact fee fund to specific projects and related expenses for improvements
to the type of facilities or services for which the fees in that fund were paid. Any
monies, including any accrued interest, not assigned to specific projects within such
capital improvements program and not expended pursuant to Sections 3.24.090 or
3.24.100(G) shall be retained in the same impact fee fund until the next fiscal year.
The Impact Fee Capital Improvements Program shall be adopted by the City
Commission as a supplemental document to the city budget. The Impact Fee Capital
Improvements Program shall schedule the construction of capital improvements to
serve projected growth and project capital improvement costs, expenditures and impact
fee fund revenues for a five year period. The individual fee funds shall maintain a
positive fiscal balance. The program may be amended by a majority vote of the City
Commission. The City Manager shall adopt and revise, as needed, an administrative
impact fee manual to carry out the purposes ofthis chapter.
F. The City shall be entitled to retain not more than five percent of the development
impact fees collected as payment for the expenses of collecting the fee and
administering this chapter.
G, If a development impact fee has been calculated and paid based on a mistake or
misrepresentation, it shall be recalculated. Any amounts overpaid by an applicant shall
p. 31
be refunded by the City to the applicant within thirty days after the City's acceptance of
the recalculated amount, with interest at the rate of five percent per annum since the
date of such overpayment. Any amounts underpaid by the applicant shall be paid to
the City within thirty days after the City's acceptance of the recalculated amount, with
interest at the rate of five percent per annum since the date of such underpayment. In
the event the underpayment is caused by an error attributed solely to the City, the
applicant shall pay the recalculated amount without interest. In the case of an
underpayment to the City, the City shall not issue any additional permits or approvals
for the project for which the development impact fee was previously paid until such
underpayment is corrected; and if amounts owed to the City are not paid within such
thirty day period, the City may also repeal any permits issued in reliance on the
previous payment of such development impact fee and refund such fee to the then
current owner of the land.
H. In order to promote affordable workforce housing of the City, the City Commission
may waive impact fees for Workforce Housing Lots approved by the City Commission
pursuant to the BMC Title 17, Chapter 2 by paying some or all ofthe impact fee from
other funds of the city that are not restricted to other uses. In order to promote the
economic development of the city and the provision of affordable housing in the city,
the City Commission may agree to pay some or all of the development impact fees
imposed on a proposed development by this chapter from other funds of the city that
are not restricted to other uses. Any such decision to pay development impact fees on
behalf of an applicant shall be at the discretion of the City Commission and shall be
made pursuant to goals and objectives previously adopted by the City Commission to
promote economic development and/or affordable housing.
I. Any determination made by any official of the city charged with the administration of
any part of this chapter may be appealed to the Development Impact Fees Review
Committee by filing:
1. A written notice of appeal on a form provided by the City;
2. A written explanation of why the appellant feels that a determination was in
error; and
3. An appeal fee of five hundred dollars with the Impact Fee Coordinator
within ten working days after the determination for which the appeal is being
filed.
The Development Impact Fees Review Committee shall meet to review the
appeal within thirty working days of the date the written appeal was presented to
the Impact Fee Coordinator. If the appellant is dissatisfied with the decision of
the Development Impact Fees Review Committee, the appellant may appeal the
decision to the City Commission by filing a written request with the City Clerk
within ten working days of the Committee's decision. At the regular meeting
following the filing of the appeal, the City Commission shall fix a time and place
for hearing the appeal; and the City Clerk shall mail notice ofthe hearing to the
appellant at the address given in the notice of appeal. The hearing shall be
conducted at the time and place stated in such notice given by the City
Commission. The determination of the City Commission shall be final. If the
City Commission concludes that all or part of a determination made by an official
p. 32
ofthe city charged with the administration of any part of this chapter was in error,
then the appeal fee described above shall be returned to the appellant.
1. Updating of impact fee information.
1. The facility plans described in this chapter shall be reviewed by the City at least
once every five years and if a revision of a facility plan to address changed
conditions is deemed necessary, by the City, the plan shall be updated.
2. The development impact fees described in this chapter, fee studies, data and
analysis relied upon and required by section 7-6-1602, MCA, and the
administrative procedures and manual of this chapter shall be updated at least
once every three fiscal years.
3. The impact fee capital improvement program shall be reviewed and updated as
provided in section 3.24.11O(E) above.
4. The purpose of the review and updating of impact fee related documentation is to
ensure that:
a The demand and cost assumptions underlying such fees are still valid;
b. The resulting fees do not exceed the actual cost of constructing improvements
that are of the type for which the fee was paid and that are required to serve
new development;
c. The monies collected or to be collected in each impact fee fund have been,
and are expected to be, spent for improvements of the type for which such
fees were paid; and
d. That such improvements will benefit those developments for which the fees
were paid.
K. The development impact fees shown in Tables 3.24.050, 3.24.060, 3.24.070, and
3.24.080 shall be adjusted annually to reflect the effects of inflation on those costs for
improvements set forth in the impact fee studies. On January 1 st of each year unless
and until the fees in Tables 3.24.050, 3.24.070, and/or 3.24.080 are revised or
replaced, and then beginning in the subsequent calendar year, each fee amount set forth
in each such table shall be adjusted by multiplying such amount by one(1) plus the
value of the Construction Cost Index published in the first December edition of the
current year. - Source: Engineering News Record. The right-of-way component of the
transportation impact fee shall be adjusted by multiplying the value ofthe right-of-way
component of the fee by one(1) plus the percentage value of the increase in taxable
value from the preceding year. - Source: Montana Department of Revenue. Such
adjustments in such fees shall become effective immediately upon calculation by the
City and shall not require additional action by the City Commission to be effective.
L. Violation of this chapter shall be a misdemeanor and shall be subject to those remedies
provided in Bozeman Municipal Code Section 1.16.010. Knowingly furnishing false
information to any official of the city charged with the administration of this chapter
on any matter relating to the administration of this chapter, induding without
I imitation the furnishing of false information regarding the expected size, use, or traffic
impacts from a proposed development, shall be a violation of this chapter. In addition
to, or in lieu of, any criminal prosecution, the City or any applicant for a permit ofthe
types described in Sections 3.24.050(A)(I), 3.24.060(A)(1), 3.24.070(A)(1), or
p. 33
3.24.080(A)(1) shall have the right to sue in civil court to enforce the provisions of this
chapter.
M. The section titles used in this chapter are for convenience only and shall not effect the
interpretation of any portion ofthe text ofthis chapter.
N. Any judicial action or proceeding to attack, review, set aside, or annul the
reasonableness, legality, or validity of any development impact fee must be filed and
service of process effected within ninety days following the date of imposition of the
fee or the final determination of the City Commission, whichever is the later.
Section 2
Repealer. All resolutions, ordinances and sections of the Bozeman Municipal Code and parts
thereof in conflict herewith are hereby repealed.
Section 3
Savine:s Provision. This ordinance does not affect the rights and duties that matured, penalties
that were incurred or proceedings that were begun befo~e the effective date of this ordinance.
Section 4
Severabilitv. If any portion of this ordinance or the application thereof to any person or
circumstance is held invalid, such invalidity shall not affect other provisions of this ordinance which may be
given effect without the invalid provisions or application and, to this end, the provisions ofthis ordinance are
declared to be severable.
Section 5
Effective Date. This ordinance shall be in full force and effect on the 16th day of February 2008.
PASSED AND ADOPTED by the City Commission of the City of Bozeman, Montana, at a
regular session thereof held on the 10th day of December 2007.
<:~d~jslC(~
ay
p.34
ATTEST:
'"
PASSED, ADOPTED, AND FINALLY APPROVED by the City Commission of the City of Bozeman,
Montana, at a regular session thereof held on the 14th day of January 2008.
t~
KAARENJACOBSON
Mayor
-
--.
ATTEST:
- 35 ~