HomeMy WebLinkAbout08-20-07_Madill Impact Fee Credit Request IFCR-0701 _20
Report compiled on August 15, 2007
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Andrew Epple, Planning Director
Chris Kukulski, City Manager
SUBJECT: Loyal Garden impact fee credit request IFCR-0701
MEETING DATE: Monday, August 20, 2007
RECOMMENDATION: Not grant requested impact fee credit.
BACKGROUND:
The City has adopted an impact fee program to fund necessary infrastructure. The Capital
Improvements Program (CIP) allocates funds to individual projects. Per Chapter 3.24, Impact
Fees, BMC those elements of work required for minimum compliance with locally adopted
standards are not eligible for funding with impact fees. Impact fees can be combined with other
funding sources to complete a project.
A request has been received for Water, Wastewater, and Street impact fee credits (See
application materials). The request is related to over sizing of pipes to meet facility plan
standards and upgrades to an existing traffic signal. The specific section addressing credit for
capacity expanding work is Section 3.24.100, BMC. There are several specific criteria required
for compliance with the impact fee program and state statute. The following table summarizes
the procedural compliance status of the request. Relevant citations to the requirements listed in
the table follow the table.
Requested Item Name Project
Related
Capacity
Expanding
CIP
Listed
CIP
Funded
Timely
Request
Wastewater Main Oversizing Portion Yes No No No
Water Main Oversizing 10” Portion Yes No No No
Water Main Oversizing 12” Portion Yes No No No
Traffic Signal Upgrade Portion Yes No No No
Definitions – State and Local
3.24.040, BMC – Impact Fee Capital Improvement Program, Improvement, Initiation of
Construction, Project Related Improvement
7-6-1601, MCA – Impact Fee (excludes requirements needed to meet standards, on or off-
site[5iv])
Review Criteria – Must meet all criteria to be eligible for credit consideration.
7-6-1603 (4), MCA – Credits permitted if
(a) – Documented need
(b) – Property is appropriate
(c) – Procedures established to determine worth (Bozeman established in 3.24.100, BMC)
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Report compiled on August 15, 2007
Commission Memorandum
(d) – Procedures established to establish credits (Bozeman established in 3.24.100, BMC)
City carries out 7-6-1603(4) through Section 3.24.100.A, BMC – Credits allowed to be
considered if:
(1) Project is listed on the impact fee CIP
(2) Project is not a project related improvement as defined in 3.24.040.K, BMC
(3) Voluntary and accepted by City of Bozeman (Not Applicable in this case)
(4) Approved in writing by City in timely manner
3.24.040.H, BMC – Improvements must expand capacity
3.24.100.B, BMC
(a) Request on City form with adequate documentation
(b) Timely submittal before initiation of construction
The Engineering Division has reviewed the request and considers the dollar amount of the
request reasonable for the work performed. They also verified that the work is in conformance
with the facility plan standards. Plans and specifications were reviewed and approved prior to
work beginning.
There are two items of concern with this credit request. First, the individual work items are not
listed on their respective Capital Improvement Programs. Second, the request for the credits did
not occur prior to the commencement of the work. The standard for timeliness is whether the
request has been submitted prior to the pre-construction meeting with the Engineering Division,
Section 3.24.040.J and 3.24.100.B. Engineering Division indicates the preconstruction
conference took place on 7/19/06 for on site work and 11/29/06 for off site work. Both of these
items are required for a credit request to be accepted. Therefore, the request does not meet
procedural requirements. The work for which credit is requested does meet the requirement for
capacity expansion and excludes direct project requirements.
The time limit on credit applications is in place to protect the integrity of the impact fee program
and ensure that information is provided in a timely manner. The helps ensure good fiscal
stewardship of the program by the City. Although the credit request is barred from being claimed
directly, the Commission could chose to make an offer of credit. Staff does not believe this
would be prudent. Had the application been received timely and the work listed on the CIP staff
would have been supportive of the request.
As noted in the application materials discussion began last year regarding elements of the
proposal. The applicant did request listing on the CIPs for the water and sewer pipe components.
The items did not end up being listed on the recommended CIPs which the Commission
approved. As discussion occurred regarding the requests there was some uncertainty as to
whether or not the work would qualify as capacity expanding work.
UNRESOLVED ISSUES: Does the Commission wish to offer the requested credit?
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Report compiled on August 15, 2007
Commission Memorandum
FISCAL EFFECTS: Award of the credit will reduce funds available for other work. Giving
credit after the fact may affect other requests which may negatively impact the operation of the
impact fee program.
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 August 20th.
Respectfully submitted,
Andrew Epple, Planning Director
Chris Kukulski, City Manager
Attachments: Application materials
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