HomeMy WebLinkAbout08 04 2008_Final Adoption of Ordinance No_ 1746
Report compiled on July 29, 2008
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Andrew Epple, Planning Director
Chris Kukulski, City Manager
SUBJECT: Amendments to Chapter 3.24, Ordinance 1746
MEETING DATE: Monday, August 4, 2008
RECOMMENDATION: Approve second reading of ordinance to incorporate required changes
to implement the new fire impact fee study and reflect changes to the fee study due to the
recently awarded contract for construction of station three.
BACKGROUND: The City adopted an impact fee program in 1996 through ordinance. The
ordinance was codified as Chapter 3.24 of the Bozeman Municipal Code. The Legislature passed
a law in 2005 specifically authorizing impact fees and establishing criteria and guidelines for
their development and utilization. The City satisfies part of the required criteria and guidelines
through Chapter 3.24.
Revisions to Chapter 3.24 are proposed as part of the update process for the fire/EMS impact fee.
The changes only affect the fire/EMS component of the ordinance. The changes implement the
new fire/EMS cost of service study. The recommended effective date for the ordinance is August
16, 2008.
The Impact Fee Advisory Committee reviewed the draft ordinance at their June 12th meeting and
recommend favorably.
The fee study was continued for the purpose of incorporating the actual contract costs for
construction of fire station three. The contract was awarded on July 28th. The additional cost
information necessitated some changes to the fee study. The revised fee study figures have been
incorporated into the second reading of the ordinance implementing the study.
The April 2008 draft made the following recommendation:
Type of Development Impact Fee*
Detached residential per dwelling unit $754.60
Attached residential, per dwelling unit $643.39
Commercial/Industrial/Institutional per 1,000
gross sq. ft. of building space
$172.98
The July 2008 draft incorporating the recently awarded bid for Fire Station 3 made the following
recommendation:
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Report compiled on July 29, 2008
Commission Memorandum
Type of Development Impact Fee*
Detached residential per dwelling unit $780.20
Attached residential, per dwelling unit $655.92
Commercial/Industrial/Institutional per 1,000
gross sq. ft. of building space
$178.84
UNRESOLVED ISSUES: Does the Commission wish to adopt the ordinance as presented.
FISCAL EFFECTS: Impact fees affect the City’s ability to finance infrastructure and continue
to support growth and public safety.
ALTERNATIVES: As suggested by the City Commission.
CONTACT: Please feel free to email Chris Saunders at csaunders@bozeman.net if you have
questions prior to the public hearing on August 4th.
Respectfully submitted,
Andrew Epple, Planning Director
Chris Kukulski, City Manager
Attachments: Revised draft of Ordinance 1746 amending Chapter 3.24 Impact Fees
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ORDINANCE NO. 1746
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA, AMENDING CHAPTER 3.24, IMPACT FEES, BMC TO ADOPT AN
UPDATED FIRE IMPACT FEE.
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 fire protection and emergency medical services; and,
WHEREAS, the City of Bozeman retained HDR Engineering 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 fire/EMS facilities anticipated to be
placed on the City as a result of new development; and,
WHEREAS, HDR Engineering reviewed the existing demand and needs for facilities, the
existing facilities available to meet that demand, and the method of financing the existing systems
and needed new facilities; and,
WHEREAS, HDR Engineering additionally reviewed the contribution made or to be made
in the future in cash or by taxes, fees, or assessments by property owners towards the capital costs of
fire/EMS facilities; and,
WHEREAS, HDR Engineering reviewed and relied upon the City of Bozeman’s current
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level of service (LOS) standards and facility cost assumptions in recommending revised impact fees;
and,
WHEREAS, HDR Engineering has prepared a fire/EMS impact fee study dated July 2008
(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 the City’s fire master plan and adopted by resolution;
and
WHEREAS, in addition to the Fee Study, HDR Engineering 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 fire/EMS facilities impact fees adopted pursuant to this Ordinance
(collectively, the “Impact Fee Data and Analysis”), including but not limited to the following:
(1) City of Bozeman Fire Master Plan
(2) Bozeman 2020 Community Plan
(3) Fire Impact Fee Capital Improvement Program;
(4) Capital Improvements Program for General Fund; and
(5) the City Budget.
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
fire/EMS 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
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 fire/EMS 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;
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(6) the data and analysis relied upon in the Fee Study are representative of existing
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 fire/EMS
facility improvements to be constructed with impact fee revenues is citywide and therefore the City
has determined that one service area, as established by this Ordinance, is appropriate; and
WHEREAS, the City has prepared and will update on an annual basis impact fee capital
improvement plans and documentation 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 City has and will continue to designate fire/EMS impact fee revenues
solely for the purpose of providing fire/EMS 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
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
fire/EMS 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 of a public hearing held on June 23,
2008; and
WHEREAS, the City Commission directed that the study include the cost information to
become available with the pending bids for construction of fire station three; and
WHEREAS, the study has been updated which changed the costs per unit of demand;
and
WHEREAS, the second reading of the ordinance was revised to include and reference
the title and figures of the revised ordinance;
NOW THEREFORE, BE IT ORDAINED BY the Bozeman City Commission:
Section 1
That Paragraph 3.24.010.G of the Bozeman Municipal Code be amended so that it reads:
3.24.010 Legislative Findings
The City Commission of the City of Bozeman, Montana finds that:
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G. The city's transportation impact fee study, dated October 31, 2007, prepared by
Tindale-Oliver & Associates and as updated, and the fire/EMS impact fee study dated
October 1995July 2008 and as updated, prepared by James Duncan and
AssociatesHDR Engineering, 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.
Section 2
That Paragraph 3.24.030.A of the Bozeman Municipal Code be amended so that it reads:
3.24.030 Intent
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, the August 2006 draft of the Fire
Protection Master Plan prepared for the City by Emergency Services Consulting, Inc,
and as updated.
Section 3
That Section 3.24.060 of the Bozeman Municipal Code be amended so that it reads:
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
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)(1) 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
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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 of the fee calculated
pursuant to either Subsection (B)(2) or (B)(3) of this section shall be subject
to the following adjustment:
a. For 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 if it 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 HDR
Engineering dated July 2008 and as updated, and must document the
economic methodologies and assumptions used. Any independent fee
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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
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)(1) 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 of this 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(G).
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)(1) of
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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 3.24.060
Fire/EMS Impact Fee Schedule
Type of Development Impact Fee*
Detached residential per dwelling unit $780.20
Attached residential, per dwelling unit $655.92
Commercial/Industrial/Institutional per 1,000
gross sq. ft. of building space
$178.84
FIRE PROTECTION IMPACT FEE SCHEDULE
TYPE OF DEVELOPMENT FIRE PROTECTION IMPACT 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.
Section 4
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That Paragraph 3.24.110.K of the Bozeman Municipal Code be amended so that it reads:
3.24.110 Miscellaneous Provisions
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 1st of each year unless
and until the fees in Tables 3.24.050, 3.24.060, 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 of the 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.
Section 5
Repealer. All resolutions, ordinances and sections of the Bozeman Municipal Code and parts
thereof in conflict herewith are hereby repealed.
Section 6
Savings Provision. This ordinance does not affect the rights and duties that matured, penalties
that were incurred or proceedings that were begun before the effective date of this ordinance.
Section 7
Severability. 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 of this ordinance
are declared to be severable.
Section 8
Effective Date. This ordinance shall be in full force and effect on the 6th day of September 2008.
PASSED AND ADOPTED by the City Commission of the City of Bozeman, Montana, at a
regular session thereof held on the 23rd day of June, 2008.
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_________________________________________
KAAREN JACOBSON, Mayor
ATTEST:
_____________________________________
STACEY ULMEN
City Clerk
PASSED, ADOPTED AND FINALLY APPROVED by the City Commission of the City of Bozeman,
Montana, at a regular session thereof held on the 4th day of August, 2008.
_________________________________________
KAAREN JACOBSON, Mayor
ATTEST:
_____________________________________
STACEY ULMEN
City Clerk
APPROVED AS TO FORM:
___________________________________
Tim Cooper
Acting City Attorney
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