Staff Memo and IFAC Recommendation201 P Avenue East
PO Box 1997
Kalispell, MT 59903
Phone: 406-758-7720
Fax: 406-758-7831
www.kalispell.com 1public_works
MEMORANDUM
To: Doug Russell, City Manager� �/
From: Susie Turner, P.E. Public Works Director/City Engineer �(Ur
Date: 4/17/2013
Re: 2013 Water Impact Fee Report Workshop Presentation
The Impact Fee Advisory Committee has completed its review of the 2013 Impact Fees for
Water System Report and has recommended it be forwarded to City Council for final review and
consideration. Morrison Maierle, Inc. and Public Works will be presenting the 2013 Impact Fees
for Water System Report to Council at the April 22" d workshop. Enclosed for handouts to
Council are the Power Point Presentation, the recommendation letter from the Committee
Chairperson, and the 2013 Impact Fees for Water System Final Report.
April 11, 2013
City Council
City of Kalispell
201 1" Avenue East
Kalispell, MT 59901
Subject: Water Impact Fee Recommendation
Dear Council Members:
The Kalispell Impact Fee Advisory Committee (IFAC) has met several times with City staff and
Morrison & Maierle, Inc. (MMI), the impact fee consultant retained by the City of Kalispell, and
reviewed an updated Water Impact fee Summary Report, as required under Montana law.
The committee reviewed the methodology, updated planning documents, growth projections and
the 2011 revised annexation boundary. The committee raised detailed questions to receive further
clarification on specific items of interest and concern; discussion also included the impact to new
development due to the decline in the economy in recent years. Several members of the public
were also heard during public comment and received answers to questions from staff and MMI.
On November 27, 2012 the committee voted on recommending the proposed methodology and
impact fee as outlined in MMI's September 2012 'Water Impact Fee Update Summary. The
motion to recommend passed with the following results, three (3) yes, one (1) no, and one (1)
absent from voting.
It is my opinion that this vote should not be considered a reflection of the majority opinion on the
overall ideology of impact fees in our community. The passage of this vote reflected the consent
that the calculations in the report are accurate. However, i would like to express my concern that
the growth rate is an estimate obtained by the latest growth documents, and that, in my opinion and
some others on the committee, this is speculative and the calculations put forward in the report are
only achievable if the proposed growth rate is realized. For informative purposes we were directed
by staff and MMI to decide on whether the formula, as pertaining to the engineering, works
mathematically. As previously stated, the formula only works if the growth rate is realized.
A Final Draft Water Impact Fee Report dated March 21, 2013 which incorporated the September
2012 Water Impact Fee Update Summary, was prepared and reviewed by the IFAC on March 26,
2013. The IFAC agreed it was ready to be forwarded to City Council for final consideration and
action.
The IFAC is available to answer questions and looks forward to continuing work with the City
Of ..*i l
Chairman
Impact Fee Advisory Committee