3. Resolution 5346 - Adopting Schedules and Classifications - Transportation Impact FeesCharles A. Harball Office of City Attorney
City Attorney 201 First Avenue Fast
P.O. Box 1997
Kalispell, MT 59903-1997
TO: Mayor Pamela B. Kennedy
and Kalispell City Council
FROM: Charles Harball, City Attorney
Myrt Webb, Interim City Manager
Tel 406.758.7977
Fax 406-758.7979
charball @kalispell.com
SUBJECT: Resolution No. 5346 — Adopting Schedules and
Classifications -- Transportation Impact Fees
MEETINGDATE: Monday, March 9, 2009 — Regular Council Meeting
BACKGROUND: : It may be helpful to look at Resolution No. 5346 in parts.
The Recitals: The recitals accomplish the tasks of detailing the history of this
legislation and making specific findings based upon the evidence that the Council
has received from its consultants, from staff and from the public. It is not unusual
to receive discordant evidence from various sources. It is the work of Council to sort
through this evidence and make its finding as to which evidence it is accepting as
fact. This is important in the event a judicial determination is sought, so that it
may be apparent to a court what evidence the Council considered and what
evidence it ultimately accepted.
The recitals expressly include the statutory considerations essential for the
Council to approve the impact fees as legally valid. 'there have been various
opinions expressed to Council as to whether the analysis and methodology utilized
in the HDR report meet the statutory criteria of our state. As the City's legal
counsel, it is my opinion that it does and this opinion is part of the record. The
record is sufficient for the Council to make the findings expressed in the resolution.
Section I. Prior to considering this resolution, Council will have acted upon
Resolution No. 5345 by retaining the existing growth related Transportation
Capital Improvement Plan (CIP), or by amending the previously approved CIP with
the adoption of one of the two alternative proposed exhibits. The Council action will
be to make a motion to approve and adopt the Report as its Exhibit " A" that
contains the CIP approved by Council in Resolution No. 5345.
Memorandum for Resolution 5346
March 4, 2009
Page - 2
Section II. The Council has three alternatives to choose from in regard to a policy of
"grandfathering" projects already approved by preliminary plat. Alternative "A"
adopts a policy that does not impose transportation impact fees upon new
construction within any preliminary plat approved by the City of Kalispell between
the dates of July 1, 2004 and July 1, 2009 for a period of six years following the
approval date of the preliminary plat. Alternative "B" adopts a policy that the
transportation impact fees will be imposed at the rate of 75% of the scheduled fee
for any new construction that applies for a building permit within 2 years of the
effective date of this resolution. Alternative "C" applies no grandfatherin.gg to
transportation impact fees. The Council action will be to make and act on a motion
to adopt one of the three alternatives.
RECoAEWE A'T`ION: That Council carefully consider Resolution No. 5346 and
each of the alternatives and pass upon the implementation of Traffic Impact Fees.
FISCAL EFFECTS: As stated in the memorandum discussing Resolution No.
5345, because of the unknown effects the national and regional economies will have
on the local market, it is difficult, if not impossible to predict, with any accuracy,
the immediate or intermediate fiscal effect of the imposition of transportation
impact fees. Most commentators at the public hearings seemed to agree that the
City's options for financing improvements to its transportation facilities are
extremely limited and that as growth continues without improvements to the
system the level of service of the transportation facilities will continue to decline.
Unfortunately, the failure of the City's transportation facilities also carries a
negative fiscal effect.
Respectfully submitted,
Charles Harball, City Attorney
Myrt Webb, Interim City Manager
Office of City Attorney
City of Kalispell
RESOLUTION NO. 546
A RESOLUTION ADOPTING SCHEDULES AND CLASSIFICATIONS To SET
TRANSPORTATION IMPACT FEES TO BE IMPOSED UPON CONSTRUCTION OF
NEW IMPROVEMENTS FOR USES THAT PLACE ADDITIONAL DEMANDS UPON
THE TRANSPORTATION FACILITIES OF THE CITY OF KALISPELL AND TO SET
AN EFFECTIVE DATE.
WHEREAS, pursuant to §§7-6-1601 to 7-6-1604, MCA granting to municipalities the authority
to impose impact fees to provide additional funding for capital improvements to
transportation facilities, the Kalispell City Council has considered it prudent to
impose transportation impact fees upon construction of new improvements within
the City based upon the additional demands that the use of the new improvements
place upon the transportation facilities of the City; and
WHEREAS, the Kalispell Impact Fee Committee met numerous times over the past two years
in noticed public meetings with the City's consultant, HDRIEES, reviewed the
various permutations of its report and recommendations on the transportation
facilities and examined the methodology utilized and issued its advisory letter to
the Kalispell City Council on January 7, 2009 with two votes for and two votes
against the adoption of an impact fee schedule along with the data sources and
methodology supporting adoption and calculation of the impact fees; and
WHEREAS, the City Council considered the advisory letter of the Kalispell Impact Fee
Committee and directed the City Staff and its consultant, HDRIEES, to
recalculate the impact fees based upon a capital improvement plan (CIP) with
certain projects removed from the previously approved CIP based upon concerns
raised that those certain projects may not be appropriately regarded as fully
growth related; and
WHEREAS, the City Council did, on February 17 2009 set a public hearing to be held on
March 2, 2009 on said proposed transportation impact fees, schedules, charges
and classifications of the transportation facilities of the City of Kalispell; and
WHEREAS, due and proper Notice of said public hearing was given by the City Clerk by
publication and mailing as required by law; and
WHEREAS, said public hearing was duly held by the City Council at a public meeting thereof
in the Kalispell City Hall beginning at 7:00 o'clock P.M. on March 2, 2009, and
all persons appearing at said hearing and expressing a desire to be heard were
heard, and all written comments thereon furnished to the City Clerk at said
meeting prior thereto were given consideration by the Council.
WHEREAS, based upon the report and recommendations of the Kalispell City Impact Fee
Committee, the considerable evidence provided by the City's consultants, City
staff and public comment, written and oral, the City Council finds as follows:
1) The Kalispell Area Transportation Plan (2006 Update) adopted by the
Kalispell City Council on April 21, 2008 and the HDRIEES study and
report dated January 2009 meet the statutory requirements in that they
a. describe existing conditions of the facility;
b. establish the current level of service and the future level of service
after improvements, assuring that growth related facility
improvements and non -growth related improvements meet the
same level of service standard;
C. forecast future additional needs for service for a defined period of
time;
d. identify capital improvements necessary to meet future needs for
service;
e. identify those capital improvements needed for continued
operation and maintenance of the facility;
f. make the determination as to whether one service area or more
than one service area for transportation facilities is needed to
establish a correlation between impact fees and benefits;
g. establish the methodology and time period over which the
governmental entity will assign the proportionate share of capital
costs for expansion of the facility to provide service to new
development;
h. establish the methodology that the governmental entity will use to
exclude operations and maintenance costs and correction of
existing deficiencies from the impact fee;
i. establish the amount of the impact fee that will be imposed for
each unit of increased service demand; and
2) The impact fee schedule, along with the data sources and methodology
used in support of the adoption and calculation of the impact fees meet the
statutory requirements in that:
a. the amount of the impact fee is reasonably related to and
reasonably attributable to the development's share of the cost of
infrastructure improvements made necessary by the new
development;
b. considering the following factors, the impact fees imposed do not
exceed a proportionate share of the costs incurred or to be incurred
by the governmental entity in accommodating the development
1. the need for public facilities capital improvements required
to serve new development;
ii. consideration of payments for system improvements
reasonably anticipated to be made by or as a result of the
development in the form of user fees, debt service
payments, taxes, and other available sources of funding the
system improvements;
C. costs for correction of existing deficiencies in a public facility are
not included in the impact fee;
d. new development will not be held to a higher level of service than
existing users unless there is a mechanism in place for the existing
users to make improvements to the existing system to match the
higher level of service;
e. impact fees do not include expenses for operations and
maintenance of the facility.
3) The proposed transportation impact fees, schedules, charges and
classifications having been found to meet the statutory requirements are
reasonable and just and in the best interest of the City of Kalispell and its
citizens.
WHEREAS, the Kalispell City Council further adopts as its findings the report and
recommendations of the City's consultant, HDRIEES, dated 200%
along with the data sources and methodology used supporting adoption and
calculation of the transportation impact fee.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL AS FOLLOWS:
SECTION I That the transportation impact fees, schedules, and classifications
applicable to the use of the City of Kalispell Transportation Facilities as
set forth in Exhibit "A", attached hereto and by this reference made a
part hereof, are hereby established and adopted to be imposed upon
construction of new improvements for uses that place additional
demands upon the transportation facilities of the City of Kalispell.
Alternative "A " Section II
SECTION II. That the transportation impact fees established by this resolution shall not
be imposed upon new construction within any preliminary plat approved
by the City of Kalispell between the dates of July 1, 2004 and July 1,
2009 for a period of six years following the approval date of the
preliminary plat.
Alternative " B"Section II
SECTION II. That the transportation impact fees established by this resolution shall be
imposed at the rate of 75 % of the scheduled fee for any new construction
that applies for a building permit within 2 years of the effective date of
this resolution.
AI ternative 111 C "
If the City Council elects not to enact any "grandfathering" consideration, neither
Alternative "A " or "B " will be approved and Section III below will become Section II
and Section X below will become Section III.
SECTION III, That the transportation impact fees, schedules, and classifications that are
hereby established for the City of Kalispell Transportation Facilities
shall be reviewed no later than two years after the effective date of this
resolution.
SECTION IV. That this resolution shall become effective on the V day of April, 2009.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR
THIS 9TH DAY OF MARCH 2009.
Pamela B. Kennedy
Mayor
ATTEST:
Theresa white
City Clerk