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HomeMy WebLinkAbout16- Ordinance 1936 Amending Chapter 2, Article 6, Division 9 Impact Fees �x -I ORDINANCE NO. 1936 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA AMENDING CIIAPTER 2,ARTICLE 6, DIVISION 9 IMPACT FEES. NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA: Section 1 ' Legislative Findings: 1. The City of Bozeman continues to experience continued growth resulting in an increasing f in demand for infrastructure improvements. 2. Private development does not always occur in a predictable and most efficient location and timeliness. 3. Over-reliance on private development to determine where to expand infrastructure systems has resulted in water, wastewater, and transportation improvements with service gaps and inefficiencies. 4. The City's long range facility plans identify certain transportation, water, sewer, and fire/EMS improvements that are necessary to complete the infrastructure systems. Doing so when determined to be necessary by the City rather than relying on timing of private development will improve service to residents as well as expand the capacity of the infrastructure system. i 5. Completion of public infrastructure projects which close gaps in infrastructure networks will provide substantially improved service capacity benefits. 6. The City considers that in some circumstances it is more cost effective for all users of I public infrastructure, including payers of impact fees, if the City installs certain public infrastructure in advance of development. i i Page 1 of 15 i I Ordinance No. 1936, Amendment to Chapter 2, Article 6, Division 9 Impact Fees - DRAFT 7. The City has a leadership role in closing service gaps to maximize the cost and service efficiency of the water system, wastewater system, fire protection and emergency medical service system, and the transportation network. 8. In 2015, the City adopted an arterial and collector district to fund work on the transportation system for construction of transportation projects which are not impact fee eligible. 9. In December of 2016, the City Commission adopted a capital improvement program to coordinate impact fees and other transportation funds to maximize benefit and efficiency in providing services. 10. The City's water and sewer utilities, general fund, or other revenues may be coordinated with impact fees to maximize benefit and efficiency in providing services. 11. When the City, in advance of development, installs work that meets the definition of project related improvements it is appropriate that the adjacent development, if it occurs within a certain timeframe,reimburse the City for project related work Section 2 Section 2.06.1600 of the Bozeman Municipal Code be amended so that such section shall read as follows: Sec.2.06.1600. - Legislative findings. A. The city commission finds that: 1. 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. 2. New residential and nonresidential development imposes increased and excessive demands upon existing city facilities. 3. 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. 4. New development is expected to continue and will place ever-increasing demands on the city to provide public facilities to serve new development. Page 2 of 15 Ordinance No. 1936,Amendment to Chapter 2,Article 6,Division 9 Impact Fees --DRAFT 5. 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. 6. All types of development that are not explicitly exempted from the provisions of this division will generate demand for city's transportation, fire protection, water, and wastewater services or facilities that will require improvements to city facilities and equipment. 7. The city's adopted impact fee studies 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. i 8. 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. 9. The documentation required by MCA 7-6-1602, 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. 10. The development impact fees described in this division are reasonably related to the service demands and needs of new development and are based on the impact fee studies and documentation cited in subsection 7 of this section 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. 11. 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 division 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. 12. 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 served directly by the city fire department as a single service area for purposes of calculating, collecting, and spending the fire protection impact fees. 13. All of the 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 I Page 3 of 15 Ordinance No. 1936,Amendment to Chapter 2, Article 6,Division 9 finpact Fees - DRAFT as a single service area for purposes of calculating, collecting, and spending the water impact fees. 14. 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. 15. There is both a rational nexus and a rough proportionality between the development impacts created by each type of development covered by this division and the development impact fees that such development will be required to pay. 16. The city's facility planning, capital improvement program, development review, and bidding processes create 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 fixture needs related to growth, identification of applicable funding sources, and monitoring of construction and payments. 17. To meet the needs of new development the_City may construct capacity expanding capital improvements prior to development of adjacent properties. This may include the construction of capacity expanding infrastructure of a nature and in a location that may require such improvements to be deemed project related im rovements at the time of the development of such adjacent properties. The City Commission finds that under certain conditions it is fair and reasonable that the costs of a project related improvement that have been paid by the city prior to development of certain properties should be reimbursed at the time of development of those properties. 4-7-18. This division 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 development that paid each fee within a reasonable period of time after the fee is paid. 4-9 19. This division creates a system under which development impact fees shall not be used to cure existing deficiencies in public facilities or to pay maintenance or operations costs associated with providing public facilities. Section 3 Section 2,06.1610 of the Bozeman Municipal Code be amended so that such section shall read as follows: Sec.2.06.1610. - Authority and applicability. Page 4 of 15 Ordinance No. 1936,Amendment to Chapter 2,Article 6, Division 9 Impact Fees - DRAFT A. This division is enacted pursuant to the city's self-government powers,the authority granted to the city by the Montana State Constitution, MCA 7-6-1601 through 7-6-1604, and MCA 7-1-4123, 7-1-4124, 7-3-4313, 7-7-4404,7-7-4424, 7-13-4304,and 69-7-101. B. The provisions of this division shall apply to all of the territory within the limits of the city. C. The provisions of this division 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 division related to water impact fees shall also apply to all properties located outside the city that are connected to the city water system. E. The provisions of this division related to wastewater impact fees shall also apply to all properties located outside the city that are connected to the city wastewater system. F. The provisions of this division related to the establishment of transportation, fire/EMS, water, and sewer reimbursement districts applies to properties located outside the city that are deemed to benefit from capacity expansion. Section 4 Section 2.06.1620.F of the Bozeman Municipal Code be added to read: See. 2.06.1620. -Intent. F. Any funds paid pursuant to a reimbursement district established in this division do not s. replace or reduce any impact fees imposed upon development. Section 5 Section 2.06.1630 of the Bozeman Municipal Code be amended so that the following paragraph is inserted in alphabetical order with the remaining sections to be renumbered accordingly: 2. "Capacity expanding capital improvements" means improvements that increase the functional capacity of the City's water system, wastewater system, fire protection and emergency medical service system, or transportation system. This term may include capital improvements that if constructed in advance of development may meet the definition of I "project related improvements"when development of adjacent property occurs. l Page 5 of 15 I I Ordinance No. 1936, Amendment to Chapter 2,Article 6, Division 9 Impact Fees -DRAFT Section 6 Section 2.06.1630 of the Bozeman Municipal Code be amended so that such section shall read as follows with all other sections remaining unchanged: 16 4-5. "Transportation system" means existing or -plannedeapaeit-y adding inWelveme-r#s to collectors or arterial roads of three lanes or more and, which are either included {on the4 most current long range transportation plan or the city's impact fee capital improvement program., and whieh vAll beae& new development as required by law and tMs division. The transportation system includes eny those-bicycle and pedestrian facilities appurtenant to such roads. built in coiiiiine6on 4+h, and iReludedeapaeity ,,gain, +,..,,,n, eftatie facility improvemei# othevy�4se eligible for- impaet fee funding piffsiian4 te the teEms of this di-4sian. T4e "transportation system" does netinelude pfajeet related ts-. Section 7 Retitle Section 2.06.1640 and paragraphs D through G of the Bozeman Municipal Code be amended so that such section shall read as follows: Sec.2.06.1640. -,meet Transportation impact fees. D. Transportation impact fee funds. 1. A single transportation impact fee fund is created and such fund must be maintained in an interest bearing account. 2. Such fund&he&may contain enly those transportation impact fees collected pursuant to this division and any interest which may accrue from time to time on such amounts. 3. Such fiend may also contain reimbursements collected pursuant to 2.06.1640.F. E. Use of transportation impact fee funds. The moneys in the transportation impact fee fund shall be used only as follows: 1. To acquire land for and/or acquire or construct capacity expanding addg capital improvements to the transportation system reasonably related to the benefits accruing to new development subject to the terms of this division, in accordance with the requirements of state 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 section 2.06.1680 or 2.06.1690.G; and Page 6 of 15 Ordinance No. 1936, Amendment to Chapter 2,Article 6, Division 9 Impact Fees -DRAFT 4. May not be used for: a. Operations or maintenance purposes; b. To correct existing deficiencies; or c. For bicycle or pedestrian facilities unless built in conjunction with and included in a capacity-adding transportation system facility, otherwise eligible for impact fee funding. F. When the commission determines to fund capacity expanding capital improvements to the transportation system and the commission determines prior to„expenditure of funds for such improvements that upon future development, such improvements may be considered project related improvements the commission may by resolution create a transportation impact fee reimbursement district. The resolution creatiniz the district must: 1. identify the specific transportation system improvements that will be subject to reimbursement if determined at a later date to be a project related improvement, 2, identify the real property to be included in such district wherein future development may be required to provide reimbursement; 3. identify the rationale for the commission's determination that such improvements may be considered in the future to be project related improvements; { 4. identify the estimated amount of repayment that will be due from each propgAy.the methodology for adjusting the estimated amount to the actual costs of construction, and the methodology for determining such amount, 5. identify whether the amount of re a ment will account for the time value of the initial expenditure, and if so, describe the calculation methodology-, 6, identify the period of time the reimbursement district will exist; and 7. identi the re aired timin of a ent of the reimbursement which ma be u on annexation or prior to final subdivision or site plan approval, and in no case later than issuance of a building permit, Prior to adoption of a resolution creating the reimbursement district, the city must provide written notice to owners of real property within the proposed district. FG. 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; I 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; Page 7 of 15 Ordinance No. 1936, Amendment to Chapter 2, Article 6, Division 9 Impact Fees -DRAFT 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 division or where a mobile home legally existed on such site on or prior to the effective date of the ordinance from which this division is derived; 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 division 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 shall determine the validity of any claim for exemption pursuant to the criteria set forth in subsection F4 G.1 and G.2 of this section. Section 8 Section 2.06.1650.D through G of the Bozeman Municipal Code be amended so that such section shall read as follows: Sec. 2.06.1650.-Fire protection and emergency medical service impact fees. D. Fire protection/EMS impact fee funds. 1. A single fire protection/EMS impact fee fund is created and such fund shall must be maintained in an interest bearing account. 2. Such fund s �ay contain only those fire protectiomEMS impact fees collected pursuant to this division and any interest which may accrue from time to time on such amounts. 3. Such fund may also contain reimbursements collected pursuant to 2.06.1650.F. E. Use of fire protection/EMS impact fee funds. The moneys in the fire protection/EMS impact fee fund shall be used only: Page 8 of 15 Ordinance No. 1936,Amendment to Chapter 2,Article 6, Division 9 Impact Fees -DRAFT 1. To acquire or construct capacity expanding fire protection/EMS 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/EMS improvements within the city; or 3. As described in section 2.06.1680 or 2.06.1690.G. F. When the commission determines to fund capacity expanding capital improvements to the fire protection/EMS system and the commission determines_prior to expenditure of funds for such improvements that Won future development, such im rovements ma be considered project related im rovements the commission ingy by resolution create a fire protection/EMS impact fee reimbursement district. The resolution creating the district must: 1. identi the specific fire rotection/EMS improvements that will be subject to reimbursement if determined at a later date to be a pLoject related im rovement 2. identify the real property to be included in such district wherein future development may be required to provide reimbursement, 3. identify the rationale for the commission's determination that such improvements may be considered in the future to be project related improvements,• 4. identify the estimated amount of re a ment that will be due from each propga, the methodology for adjusting the estimated amount to the actual costs of construction and the methodology for determining such amount; 5. identify whether the amount of re a ent will account for the time value of the initial expenditure,and if so describe the calculation methodology; 6. identify the period of time the reimbursement district will,exist; and 7. identify the required timing of payment of the reimbursement which mgy be u on annexation or pdor to final subdivision or site plan gpproval, and in no case later than issuance of a building permit. Prior to adoption of a resolution creating the reimbursement district, the city must provide written notice to owners of real property_within the proposed district. FG. Exemptions from fire protection/EMS impact fee. 1. The following types of development shall be exempted from payment of the fire protection/EMS impact fee: i a. Reconstruction or replacement of a previously existing residential unit that does not create any additional or larger 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/EMS from such land than existed prior to issuance of such permit. Page 9 of 15 Ordinance No. 1936, Amendment to Chapter 2,Article 6, Division 9 Impact Fees -DRAFT d. Projects for which a fire protection/EMS impact fee has previously been paid in an amount that equals or exceeds the fire protection/EMS impact fee that would be required by this division. 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 shall determine the validity of any claim for exemption pursuant to the criteria set forth in subsection F-4-G.1 and G.2 of this section. Section 9 Section 2.06.1660.D through G of the Bozeman Municipal Code be amended so that such section shall read as follows: See. 2.06.1660.-Water impact fees. D. Water impact fee funds. 1. A single water impact fee fund is created and such fund 4mP must be maintained in an interest bearing account. 2. Such fund 4tall-may contain e4y those water impact fees collected pursuant to this division and any interest which may accrue from time to time on such amounts. 3 Such fund may also contain reimbursements collected pursuant to 2.06.1660.F. E. Use of water impact fee funds. The moneys in the water impact fee fund shall be used only: 1. To acquire or construct capacity expandin 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 2.06.1680 or 2.06.1690.G. F. When the commission determines to fund cgpacity expanding capital improvements to the water system and the commission determines prior to expenditure of funds for such improvements that upon future develoRment, such improvements may be considered project related improvements the commission may by resolution create a water impact fee reimbursement district. The resolution creating the district must: 1. identify the specific water improvements that will be subject to reimbursement if determined at a later date to be a project related improvement; 2. identify the real property to be included in such district wherein future development may be required to provide reimbursement; Page 10 of 15 Ordinance No. 1936,Amendment to Chapter 2,Article 6,Division 9 Impact Fees -DRAFT 3. identify the rationale for the commission's determination that such improvements may be considered in the future to be project related improvements; 4. identify the estimated amount of repavment that will be due from each property, the methodology for adjusting the estimated amount to the actual costs of construction and the methodology for determining such amount,• 5. identify whether the amount of repavment will account for the time value of the p e calculation initial expenditure, and if so,describe the methodology-, 6. identify the period of time the reimbursement district will exist; and 7. ident' _ the required timing of payment of the reimbursement which may be upon annexation or prior to final subdivision or site plan approval, and in no case later than issuance of a building permit. Prior to adoption of a resolution creating the reimbursement district,the city must provide written notice to owners of real prosy within the posed district. EG. Exemptions from water impact fees. 1. The following types of development shall be exempted from payment of the water impact fee: I a. Alteration or expansion of an existing nonresidential building that does not require an additional or larger water meter; b. Replacement of a nonresidential building or structure of the same size that does not require an additional or larger water meter; C. The reconstruction or replacement of a previously existing residential unit that does not create any additional or larger residential units. 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 shall determine the validity of any claims for exemption pursuant to the criteria set forth in subsections F-G.1 and G.2 of this section. Section 10 it Section 2.06.1670,D through G of the Bozeman Municipal Code be amended so that such section shall read as follows: S Sec.2.06.1670. -Wastewater impact fees. 1 D. Wastewater impact fee funds. E Page 11 of 15 Ordinance No. 1936,Amendment to Chapter 2,Article 6,Division 9 Impact Fees- DRAFT 1. A single wastewater impact fee fund is created and such fund shall must be maintained in an interest bearing account. 2. Such fiend may contain enly those wastewater impact fees collected pursuant to this division and any interest which may accrue from time to time on such amounts. 3. Such fund may also contain reimbursements collected pursuant_to 2.06.1670.F. E. Use of wastewater impact fee funds. The moneys in the wastewater impact fee fiend shall be used only: 1. To acquire or construct cLLpacily Manding 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 2.06.1680 or section 2.06.1690.G. F. When the commission determines to fund capacily Manding ca ital improvements to the wastewater system and the commission determines prior to expenditure of funds for such improvements that Won future development, such improvements May be considered project related improvements the commission may resolution create a wastewater impact fee reimbursement district. The resolution creating the district must: 1. identify the specific wastewater improvements that will be subject to reimbursement if determined at a later date to be a project related improvement; 2. identify the real property to be included in such district wherein fixture development may be required to provide reimbursement-, 3. identify the rationale for the commission's determination that such improvements May be considered in the future to be project related improvements; 4. identify the estimated amount of repa ent that will be due from each property, the methodology for adjusting the estimated amount to the actual costs of construction, and the methodology for determining such amount,• 5. identify whether the amount of re a ment will account for the time value of the initial expenditure, and if so,describe the calculation methodology, 6. identify the period of time the reimbursement district will exist; and 7. identify the required timing of payment of the reimbursement which may own annexation or prior to final subdivision or site plan approval, and in no case later than issuance of a building permit. Prior to adoption of a resolution creating the reimbursement district the cfty must pLovide written notice to owners of real property within the proposed district. FG. Exemptions from wastewater impact fees. Page 12 of 15 Ordinance No. 1936,Amendment to Chapter 2, Article 6, Division 9 Impact Fees -DRAFT 1. The following types of development shall be exempted from payment of the wastewater impact fee: a. Alteration or expansion of an existing nonresidential building that does not require an additional or larger water meter; b. Replacement of a nonresidential building or structure of the same size that does not require an additional or larger water meter; C. The replacement of a previously existing residential unit that does not create any additional or larger residential units. 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 shall determine the validity of any claim for exemption pursuant to the criteria set forth in subsection F4 G.1 and G.2 of this section. , Section 11 Repealer. All provisions of the ordinances of the City of Bozeman in conflict with the provisions of this ordinance are, and the same are hereby,repealed and all other provisions of the ordinances of the City of Bozeman not in conflict with the provisions of this ordinance shall remain in full force and effect. F Section 12 f F 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. All other provisions of the Bozeman Municipal Code not amended by this Ordinance shall remain in full force and effect. Page 13 of 15 a Ordinance No, 1936,Amendment to Chapter 2, Article 6, Division 9 Impact Fees -DRAFT Section 13 Severability. That should any sentence, paragraph, subdivision, clause, phrase or section of this ordinance be adjudged or held to be unconstitutional, illegal, or invalid,the same shall not affect the validity of this ordinance as a whole, or any part or provision thereof, other than the part so decided to be invalid,illegal or unconstitutional, and shall not affect the validity of the Bozeman Municipal Code as a whole. Section 14 Codification. This Ordinance shall be codified as set forth in Section 2-10. Effective Date. This ordinance shall be in full force and effect thirty(30) days after final adoption. PROVISIONALLY ADOPTED by the City Commission of the City of Bozeman, Montana, on first reading at a regular session held on the 7th day of March 2016. F" CARSON TAYLOR R Mayor ATTEST: j:. '•4 t -,; .f _ 14 City Clerk .,1ry, _ ,�a � v � a•.a Page 14 of 15 Ordinance No. 1936, Amendment to Chapter 2, Article 6, Division 9 Impact Fees -DRAFT FINALLY 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 C. day of jQf1 2016. The effective date of this ordinance is rkr t4 z.1 ,2016. r CARSON TAYLOR Mayor ATTEST: City Clerk , _ IV C APP VED A/.,,TO FORM: i �J( ✓'� l j GRE ULLIVAN City Attorney i i i �I Page 15 of 15 i 'I