HomeMy WebLinkAbout08-27-07_Madill Impact Fee Credit Request IFCR-0701, opened_11
Report compiled on August 27, 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 27, 2007
RECOMMENDATION: Not grant requested impact fee credit due to procedural irregularities.
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 27, 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. A request for inclusion of the work on
the CIP was provided by applicant to the City on August 18, 2006. Initially there was some
question as to whether the proposed work could qualify for impact fee funding or whether it was
solely a project related improvement. The recommended CIP provided to the City Commission
for consideration did not include the requested work as the priority was ensuring adequate
funding for the expansion of the water and sewer treatment plants. This is noted on page 206 of
the 2008-2012 CIP. The City Commission acted to approve the CIP for Streets on 1/29/2007 and
for Water and Wastewater on 2/20/2007. Given estimated expenditures and revenues the
projected fund balances for 2012 show adequate funds to cover the work. The Impact Fee
Advisory Committee has not given a recommendation on these projects.
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 conferences 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. After further discussion with engineering
staff and correspondence with applicant the formal credit request was submitted on June 5, 2007.
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
from after the fact claims and ensure that information is provided in a timely manner. Thi helps
ensure good fiscal stewardship of the program by the City. Although the credit request is barred
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Report compiled on August 27, 2007
Commission Memorandum
from being claimed directly, the Commission could chose to make an offer of credit. Staff
believes that this may not be prudent. Had the application been received timely and the work
listed on the CIP staff would have been supportive of the request.
UNRESOLVED ISSUES: Does the Commission wish to offer the requested credit?
FISCAL EFFECTS: Award of the credit will reduce funds available for other work but will not
place the fund balances in jeopardy. 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 27th.
Respectfully submitted,
Andrew Epple, Planning Director
Chris Kukulski, City Manager
Attachments: Application materials
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