HomeMy WebLinkAboutOrdinance 98- 1471, Amends §§ 3.24.010, 3.24.030, 3.24.040, 3.24.050, 3.24.060, 3.24.070, 3.24.080, 3.24.100 and 3.24.110, impact fees
--- . ,.---.-". ~ ---:-- ..--
_.~.~
ORDINANCE NO. 1471
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONT ANA, PROVIDING THAT THE BOZEMAN MUNICIPAL
CODE BE
AMENDED BY REVISING SECTIONS 3.24.010,3.24.030,3.24.040,3.24.060,
3.24.070,3.24.080,3.24.100 AND 3.24.110, AS AMENDED BY ORDINANCE
NO. 1464, WHICH ORDINANCE IS NOT CURRENTLY CODIFIED; PROVIDING
FOR REVISIONS TO REFERENCE THE JAMES DUNCAN AND ASSOCIATES
. STUDY, AS UPDATED; AMEND THE DEFINITIONS TO INCLUDE A DEFINITION
OF "IMPACT FEE CAPITAL IMPROVEMENT PROGRAM"; PROVIDING FOR
REVISIONS TO THE CREDITS AGAINST DEVELOPMENT IMPACT FEES
PROGRAM; AND PROVIDING FOR REVISED FEES IN THE TABLES FOR EACH
OF THE IMPACT FEE PROGRAMS.
WHEREAS, the City Commission did, on the 22nd day of January 1996 adopt
Ordinance No. 1414, establishing impact fees for streets, fire, water and wastewater; and
WHEREAS, the City Commission did, on the 15th day of April 1996 adopt Ordinance
No. 1418, revising the impact fee program; and
WHEREAS, the City Commission did, on the 6th day of April 1998 adopt Ordinance
No. 1464, revising the percentages at which water and wastewater impact fees are
assessed, which ordinance is not currently codified; and
WHEREAS, the City Commission did, on the 27th day of April 1998, direct staff to
. bring back an ordinance revising and clarifying various provisions in the ordinance.
NOW, THEREFORE, BE IT ORDAINED by the City Commission of the City of Bozeman,
Montana, that:
Section 1
The Bozeman Municipal Code be amended by amending Section 3.24.010, so that
such section shall read as follows:
"3.24.010 Legislative Findinas.
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.
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.
.- ..-....-.-. -. --------------- -::=------~-~--- -- - - ~ ..-. -......".. ___.__n.__..
_~ -----.--....--. -
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
street, 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
. of this chapter will generate demand for streets, fire protection, water, and wastewater
services or facilities that will require improvements to city facilities and equipment.
G. The Street ImDact Fee Studv, dated January 1996, and as updated, and the Fire
Imoact Fee Studv, and Water and Wastewater Imoact Fee Studv, dated October 1995, and
as updated, prepared by James Duncan and Associates, 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 hereby establishes as city standards the assumptions and service
standards referenced in the three impact fee studies as part of its current plans for the major
street system and for the city's fire protection, water, and wastewater systems.
I. The development impact fees described in this chapter are based on those three
impact fee studies, 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.
J. All of the street improvements listed in the Street Imoact Fee Studv 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 street impact
fees.
K. All of the fire protection improvements listed in the Fire Imoact Fee Studv 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 served
directly by the City Fire Department as a single service area for purposes of calculating,
collecting, and spending the fire protection impact fees.
L. All of the water system improvements listed in the Water and Wastewater
Imoact Fee Studv 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.
M. All of the wastewater system improvements listed in the Water and Wastewater
ImDact 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.
. N. 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.
O. This chapter creates a system by which development impact fees paid by new
developments will be used to expand or improve the city street, fire protection, water, and
wastewater systems in ways that benefit the development that paid each fee within a
reasonable period of time after the fee is paid.
P. This chapter creates a system under which development impact fees shall not
be used to cure existing deficiencies in public facilities."
- 2 -
Section 2
The Bozeman Municipal Code be amended by amending Section 3.24.030, so that
such section shall read as follows:
"3.24.030 Intent
A. This chapter is adopted to help implement the ComDrehensive Plan of the City,
. the City's 1993 TransDortation Plan UDdate prepared by Robert Peccia & Associates, and
as updated, the May 1995 draft of the Water Facility Plan prepared for the City by HKM
Associates, and as updated, and the January 1995 draft of the Wastewater Facilitv Plan
prepared for the City by HKM Associates, 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 street, fire protection, water, and
wastewater systems; to ensure that such proportionate share does not exceed the cost of
the street, 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 street, fire protection, water, and
wastewater systems that benefit such new developments.
C. It is the further intent of this chapter that new development pay for its fair 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 street, fire protection, water, and wastewater systems that serve
or benefit such new development.
D. It is not the intent of this chapter to collect any money from any new
development in excess of the actual amount necessary to offset new demands for street,
. 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 commingled 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."
Section 3
The Bozeman Municipal Code be amended by amending Section 3.24.040, so that
such section shall read as follows:
"3.24.040 Definitions
A. "Development" means any construction or expansion or 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.
B. "Development Impact Fees" means the Street Impact Fee, Fire Protection
Impact Fee, Water Impact Fee, and Wastewater Impact Fee established by this chapter.
. C. "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 the City-County Planning Office, or their designees appointed to
serve in the member's place at a meeting.
D. "Encumber" means to legally obligate by contract or otherwise commit to use
by appropriation or other official act of the City.
E. '"Impact Fee Capital Improvement Program'" means the proposed capital
improvements program for the major street system, the City fire protection system, and the
City water and wastewater systems, which shall assign monies from each Impact Fee Fund
- 3 -
.-.. ~- .,.......----=.._--~. ..-------::--... ~_..._. .-- --.---. -- ---~ ..- - ...~_m
---..
to specific projects and related expenses for improvements to the type of facilities or
services for which the fees in that fund were paid.
E. F. "Impact Fee Funds" means the Street Impact Fee Fund, Fire Protection Impact
Fee Fund, Water Impact Fee Fund, and Wastewater Impact Fee Fund established by this
chapter.
F. G. "Impact Fee Studies" means the Street ImDact Fee Studv, dated January 1996,
and as updated, and the Fire ImDact Fee Studv and Water and Wastewater ImDact Fee
. Study, dated October 1995, and as updated, prepared by James Duncan and Associates.
G. H. "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 (10) years, but not including maintenance, operations, or improvements that
do not expand capacity.
H. I. "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 street, 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.
J. "Initiation of Construction" means the date of the preconstruct ion 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.
. t K. "Project-Related Improvements" means site-related improvements include,
without limitation, all access streets adjacent to the proposed development or leading only
to the proposed development; 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 the 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 others developments
presently or in the future."
Section 4
The Bozeman Municipal Code be amended by amending Table 3.24.050, so that such
table shall read as follows:
.
- 4 -
.. TABLE 3.24.050
STREET IMPACT FEE SCHEDULE
TYPE OF DEVELOPMENT STREET IMPACT FEE
RESIDENTIAL
Single-family Detached $ +v+69 1,873.63 per unit
Multi-family Dwelling $ ..:J...TI-9.9. 1,269.92 per unit
Mobile Home $ ~ 944.76 per unit
. Hotel/Motel $ +.&W 1,705.23 per room
OFFICE PER 1,000 SQUARE FEET
General Office Building $ ~ 3,256.88
Medical Office $ &;WQ 5,920.64
COMMERCIAL PER 1,000 SQUARE FEET
Retail under 50,000 sq. ft. $ 4,g47 5,239.61
Retail between 50,000 and 99,999 sq. ft. $ ~ 5,510.75
Retail between 100,000 and 199,999 sq. ft. $ ~ 5,191.95
Retail between 200,000 and 299,999 sq. ft. $ ~4,785.24
Retail 300,000 sq. ft. and over $ ~ 4,513.03
Building Material/Lumber $ ~ 3,099.07
Convenience Store $10,701 11,333.95
Discount Store $ &,G4& 5,343.41
Drive-In Bank $ ~ 8,146.97
Fast Food Restaurant $ ~ 9,708.16
. Furniture Store $ ~ 330.45
Movie Theater $ e...we 5,927.00
New Car Sales $ &446 3,649.83
Nursery/Garden Center $ ~ 2,748.49
Quality Restaurant $ ~ 7,351.55
Others not specified $ 4,S47 5,239.61
INDUSTRIAL PER 1,000 SaUARE FEET
General Light Industrial $ ~ 1,367.36
Manufacturing $ ++4 756.23
Mini.Warehouse $ 48& 513.69
Warehouse $ 9G6 956.41
INSTITUTIONAL PER 1,000 SQUARE FEET
Elementary School $ +W 158.87
High School $ ~ 335.75
University $ ~ 1,127.99
. Day Care Center $ -+.+w 1,168.24
Hospital $ ~ 2,061.10
Nursing Home $ ~ 658.79
Church/Synagogue $ ~ 1,144.94
RECREATION
Golf Course $ .e,...:I-W 6,513.77 per hole
Park $ +S6 193.82 per acre
..
- 5 -
---.......--
Section 5
The Bozeman Municipal Code be amended by amending Section 3.24.060, so that
such section shall read as follows:
"3.24.060 Fire Protection Imcact 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.
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
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 adjustments:
a. For the first expansion of an existing non-residential
building, the amount calculated shall not include the amount
. calculated for the expansion of up to thirty (30) percent as
compared with its size on February 22, 1996, or 2,000 square
feet, whichever is less.
b. Beginning March 23, 1996, the fee shall be ninety
percent (90%) of the 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 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 was 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.
- 6 -
-- .---
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
Studv 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
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 hereby 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 Section 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.
- 7 -
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 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
I FIRE PROTECTION IMPACT FEE SCHEDULE I
TYPE OF DEVELOPMENT FIRE PROTECTION IMPACT FEE
RESIDENTIAL
Single-family Detached $ -+8+ 191.71 per unit
Single-family Attached $ ~ 160.99 per unit
Duplex $ -t-:I-4 120.74
per unit
Multi-Family $ sa
87.91 per unit
. Mobile Home $ ga.
87.91 per unit
OFFICE/INSTITUTIONAL PER 1.000 SQUARE FEET
Under 10,000 sq. ft. $
~ 97.44
Between 10,000 and 49.999 sq. ft. $ +++ 187.47
50.000 sq. ft. and over $ 6&& 376.00
COMMERCIAL/HOTEL PER 1,000 SQUARE FEET
Under 10,000 sq. ft. $
+++ 187.47
Between 10,000 and 49.999 sq. ft. $ ~ 285.97
Between 50.000 and 99.999 sq. ft. $ 447 473.44
100,000 sq. ft. and over $ &62- 563.47
INDUSTRIAL PER 1.000 SQUARE FEET
Under 10.000 sq. ft. $
+++ 187.47
Between 10.000 and 49,999 sq. ft. $ 6&& 376.00
50.000 sq. ft. and over $ ~ 563.47
"
.
Section 6
The Bozeman Municipal Code be amended by amending Section 3.24.070, so that
such section shall read as follows:
- 8 -
"3.24.070 Water Imcact 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 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.
2. 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 Water Impact Fee
1. An applicant required by this chapter to pay a Water 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 adjustments:
a. Beginning May 10, 1998, the fee shall be fifty
percent (50%) of the 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 Water Impact Fee by reference to Table
3.24.070. 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 of the 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. 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 economists 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 and Wastewater Imcact 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
Water Impact Fees. If such study is accepted or accepted with modifications
as a more accurate measure of the 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.
. 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 0 of this section.
.9-
_______..m._ ___ -.~
.--::r ---
D. Water Impact Fee funds
1. A single Water Impact Fee Fund is hereby 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
Section 3.24.090 or 3.24.1 OO.G.
F. Exemptions from Water Impact Fees
1. The following types of development shall be exempted from
payment of the Water Impact Fee:
a. Alteration or expansion of an existing building that
does not require an additional or larger water tap.
b. Replacement of a building or structure of the same
size that does not require an additional or larger water tap.
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 tap.
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)( 1 )
and (F)(2) of this section.
TABLE 3.24.070
I WATER IMPACT FEE SCHEDULE I
SIZE OF WATER METER COST PER METER
5/8 or 3/4 inch $ 2,132 2,258.11
1 inch $ 6,330 5,645.26
1 1/4 inch $ 7,162
7,903.37
. 1 1/2 inch $ 10.660 11,290.53
2 inch $ 17.066 18,064.85
3 inch $ 34.112 36,129.69
4 inch $ 63,300 56,452.64
6 inch $106.600 112,905.28
8 inch $170.660 180,648.45
"
- 10 -
Section 7
The Bozeman Municipal Code be amended by amending Section 3.24.080, so that such
section shall read as follows:
"3.24.080 Wastewater ImDact 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 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.
2. No permits for connection to the City wastewater system shall be
issued until the Wastewater 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. An applicant required by this chapter to pay a Wastewater 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
adjustments:
0 Beginning May 10, 1998, the fee shall be fifty percent
(50%) of the amount calculated.
2. Unless an applicant requests that the City determine the amount of
such fee pursuant to subsection (8)(3) of this section, the City shall determine the
. amount of the required Wastewater Impact Fee by reference to Table 4. 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.
3. 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 applicant's cost by a professional
engineer and/or economists 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 and Wastewater Imoact 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 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.
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.
- 11 -
...._',~~', .-
~~,.. .~ ' ~::'-- --.:;.
D. Wastewater Impact Fee Funds
1. A single Wastewater Impact Fee Fund is hereby 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 3.24.1 OO.G.
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 tap.
b. Replacement of a building or structure of the same size
that does not require an additional or larger water tap.
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 tap.
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
I WASTEWATER IMPACT FEE SCHEDULE I
SIZE OF WATER METER COST PER METER
5/8 or 3/4 inch $ 2,702 2,862.88
1 inch $ 6,
768 7,157.73
1 1/4 inch $
9,161 10,020.61
1 1/2 inch $
12,616 14,314.40
2 inch $ 21,624 22,903.04
3 inch $ 12,218 45,806.08
. 4 inch $ 67,676 71,571.99
6 inch $125,160 143,143.99
8 inch $216,2<10 229,030.38
"
- 12 -
Section 8
The Bozeman Municipal Code be amended by amending Section 3.24.100, so that
such section shall read as follows:
"3.24.100 Credits against DeveloDment ImDact Fees
A. After the effective date of this chapter, all mandatory or voluntary land or
. easement dedications for street, fire protection, water, or wastewater improvements, and
all mandatory or voluntary acquisition or construction of improvements to the major street
system or the City fire protection, water, or wastewater systems by an applicant in
connection with a proposed development shall 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 (4-2) land dedications for or
acquisition or construction of project-related improvements
as defined in Section
3.24.040.G, or (2-3) any voluntary land or easement dedications not accepted by the City,
or (34) any voluntary acquisition or construction of improvements not approved in writing
by the City prior to commencement of the acquisition or construction.
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 major street
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 filed not later than the timc when an applioant bcgins construotion of the
improvement or applies for the first permit of a typc listed in Sections 3.24.050(1\)(1 ),
. 3.24.060(A)(1 )/ 3.24.070(A)(1) or 3.24.080(A)(1) that creates an obligation to pay the typo
of development impact fee against which the credit is rcquested, initiation of construction
of improvements or the acceptance by the City of land dedications, or the applicant's claim
for the credit shall be waived. The granting of credit shall be approved by the City
Commission.
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 (a) one hundred (100) 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
street, 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 credit5 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
number of credit balance ttA+t5 available to him (or her).
- 13 -
---------.-----
_____u..___ -----.-
2. Approved credits for the acquisition or construction of street, 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 of the
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 number of
credit t:tfttts 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 credits from a mandatory or voluntary
dedication, acquisition or construction is presented to the City, the City shall reduce the
amount of the 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 credits in excess of the amount of the
development impact fee otherwise due under this chapter shall be deemed excess credits
that are is remaining and available for use by the applicant. In the case of a voluntary
dedication, acquisition or construction, any credits in excess of the 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 credits that are is
. remaining and available for use by the applicant. Upon request of the creditholder, the City
shall also send the creditholder a letter stating the amount of credit remaining to him (or her).
F. Approved credits 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 credits 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 of this section.
G. If the amount of approved credits 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 credits to the applicant in cash. Such written request must
be filed not later than the time when on opplicont opplics for the first permit of 0 type listed
in Sections 2.24.050(A)(1 ), 2.24.060(A)(1 ), a.24.070(A)(1) or 3.24.080(A)(1) thot crcotcs
on obligotion to poy the type of development impoct fee ogoinst whieh the credit was
approved, 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,
those credits described in Section 3.24.1 OOC sholl not be issued, ond the City may, at its
discretion, (1) arrange for the reimbursement of such excess credits from the impact fee fund
for the same type of service or facility from development impact fees paid by others, 9f (2)
. arrange for the reimbursement of such excess credits through the issuance of a promissory
note payable in not more than ten (10) 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 credits.
Such excess credits shall be valued at 100 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. Credits may be transferred from one holder to another by any written instrument
clearly identifying the credits issued under subsection C of this section that are 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.
- 14 -
---- ------ --- ----------
-. ...-...-...--...-.--- ....
I. In the event that land is annexed into the City from Gallatin County after the
effective date of this chapter, and that Road or Fire Impact Fees have been previously paid
to the County at the time of a subdivision or minor subdivision of such land, an applicant
proposing a development on the land may request in writing a credit against the Street
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 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."
Section 9
The Bozeman Municipal Code be amended by amending Section 3.24.110, so that
such section shall read as follows:
"3.24.110 Miscellaneous 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 of this 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 improvement are of a type for which credits are 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 fes, 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 capital improvements program for
the major street system, the City fire protection system, and the City water and wastewater
systems, and 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 Section 3.24.090 or 3.24.1 OOG 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 anticipate project expenditures and 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 of this chapter.
F. The City shall be entitled to retain not more than two (2) percent of the
development impact fees collected as payment for the expenses of collecting the fee and
administering this chapter. In the case of refunds of development impact fees under Section
3.24.090B, the City shall be entitled to retain not more than an additional two (2) percent
of the development impact fee payment made by the applicant as payment for the expenses
of processing the reimbursement request.
~ 15 -
--- ------
--- ..-.- - ~--- .. ---
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 be
refunded by the City to the applicant within thirty (30) days after the City's acceptance of
the recalculated amount, with interest at the rate of five (5) percent per annum since the
date of such overpayment. Any amounts underpaid by the applicant shall be paid to the City
within thirty (30) days after the City's acceptance of the recalculated amount, with interest
at the rate of five (5) 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 (30) 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 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 one hundred eighty dollars ($180.00) with the Impact Fee Coordinator
within ten (10) 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
(30) business 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 Clerk of the Commission with ten (10) business 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 Gity Clerk of the
Commission shall mail notice of the 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 of the
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.
J. The development impact fees described in this chapter and the administrative
procedures and manual of this chapter shall be rcvicwcd updated at least once every three
fiscal years to ensure that (1) the demand and cost assumptions underlying such fees are
still valid, (2) 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, (3) 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 (4) that such improvements will benefit those developments for which the fees were
paid.
. K. The development impact fees shown in Tables 3.24.050, =Fabffl3.24.060, =Fabffl
3.24.070 and =Fabffl3.24.080 shall be adjusted annually to reflect the effects of inflation on
those costs for improvements set forth in the impact fee studies. Beginning on January 1,
-t-99-7 1999, and on January 1 of each following year unless and until the fees in Tables
3.24.050, =Fabffl 3.24.060, =Fable 3.24.070 and/or =Fable 3.24.080 are revised or replaced,
each fee amount set forth in each such table shall be adjusted by multiplying such amount
by a fraction, the numerator of which is the U.S. Consumer Price Index for all Urban
Consumers for All Items - Source: U.S. Department of labor, Bureau of labor Statistics for
the area for the most recent period for which figures are available, and the denominator of
which is Consumer Price Index for All Items for the same area for the period one year prior
to the period reflected in the numerator. Such adjustments in such fees shall become
- 16 -
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 1.16.01. 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, including without limitation 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 of the types described in Sections
3.24.050(A)(1), 3.24.060(A)(1), 3.24.070(A)(1) or 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
affect the interpretation of any portion of the text of this 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 (90) days following the date of imposition of the fee or the
final determination of the City Commission, whichever is the later."
Section 1 0
Repealer.
All resolutions, ordinances and sections of the Bozeman Municipal Code and parts
thereof in conflict herewith are hereby repealed.
. Section 11
Severability.
If any provisions of this ordinance or the application thereof to any person or
circumstances is held invalid, such invalidity shall not affect the other provisions of this
ordinance which may be given effect without the invalid provision or application and, to this
end, the provisions of this ordinance are declared to be severable.
Section 12
Savings Provision.
This ordinance does not affect the rights or duties that matured, penalties and
assessments that were incurred or proceedings that begun before the effective date of this
. ordinance.
Section 13
Effective Date.
This ordinance shall be in full force and effect on July 5, 1998.
~ 17 -
---- - -----------------.--- - _n u.___ ...____.__
PASSED by the City Commission of the City of Bozeman, Montana, on first reading at
a regular session thereof held on the 18th day of May 1998.
ATTEST: ~~/~or/~
. (gJ~
ROBIN L. SULLIVAN
Clerk of the Commission
PASSED, ADOPTED AND APPROVED by the City Commission of the City of
Bozeman, Montana, on second reading at a regular session thereof held on the 1st day
of June 1998.
~p7~~
ALFR . STIFF,
May r
ATTEST:
. ~~
. ~-'"- ~
ROBIN L. SULlJVA -. ___-~
Clerk of the Commrss10n..
APPROVED AS TO FORM:
~~~IP
rlAUL J~ I E
City A.:ttorney
//
.
. 18 -
----. -----..--.--.- ----
State of Montana )
County of Gallatin )
City of Bozeman )
I, Robin L. Sullivan, Clerk of the Commission of the City of Bozeman, Montana, do
hereby certify that the foregoing Ordinance No. 1471 was published by title and number in
the Bozeman Daily Chronicle, a newspaper of general circulation printed and published in said
'. City, in the issue dated the 7th day of June 1998, and due proof of such publication is on
file in my office.
IN WITNESS WHEREOF I hereunto set my hand and affix the corporate seal of my
office.
r2d.: ' ,
;j~
ROBIN L. SULLIVAN
Clerk of the Commission
.
.
- 19 -