3. Ordinance 1656 - Amending Ordinance 1587 - Impact Fees - 2nd ReadingCharles A. Harball Office of City Attorney
City Attorney 201 First Avenue East
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: Ordinance No. 1656 — Amending Ordinance 1587 —
Establishing Procedures for Contributions in Lieu of
Impact Fees to Fund Capital Improvements
MEETING DATE: Monday, March 23, 2009 — Regular Council Meeting
BACKGROUND: Some of the community comments about the proposed
transportation impact fees centered on some uncertainty or misunderstanding
about how the City might administer offsets to contributions that developers may
make to the Capital Improvement Plan (CIP), such as the construction of a portion
of a roadway on the CIP. Ordinance No. 1656 amends a portion of the previously
adopted Ordinance No. 1587, and sets forth the process and requirements of offsets
with more specificity. Council passed Ordinance No. 1656 on first reading on March
9, 2009.
RECOMMENDATION: That Council pass Ordinance No. 1656 on second reading
establishing certain procedures for the consideration of offsets, otherwise known as
contributions in lieu of impact fees, to fund capital improvements.
FISCAL EFFECTS: The amplification of the existing ordinance should be helpful
to the City and the development community to better understand how offsets to
impact fee requirements will be administered. This may have a beneficial fiscal
impact by eliminating some perplexity about the issue and calming investor
concerns.
Respectfully submitted,
C, , 1��le
Charles H all, C ity Attorney
Myrt Webb, Interim City Manager
ORDINANCE NO. 1656
AN ORDINANCE AMENDING PORTIONS OF ORDINANCE 1587 ENACTED ON
OCTOBER 16, 2006 CODIFIED AS KALISPELL CITY CODE 8-32 AUTHORIZING
AND ESTABLISHING THE PROCEDURE FOR CONTRIBUTIONS IN LIEU OF
IMPACT FEE PAYMENTS TO FUND CAPITAL IMPROVEMENTS IN THE CITY OF
KALISPELL AND DECLARING AN EFFECTIVE DATE.
WHEREAS, Montana state law at MCA 7-6-1601 through 7-6-1604 authorizes the
establishment and imposition of impact fees by municipalities to fund capital
improvements made necessary by new demand on public facilities; and
WHEREAS, an impact fee represents a fee for service payable by all users creating additional
demand on a city facility; and
WHEREAS, the Kalispell City Council enacted Ordinance 1587 on October 16, 2006 that
authorized and established, among other things, the procedures for contributions in
lieu of impact fee payments to fund capital improvements in the City of Kalispell;
and
WHEREAS, it is the finding of the City Council that it is in the best interests of the City of
Kalispell that certain impact fees be imposed to fund capital improvements and
that current established procedures be amplified to ensure compliance with state
law.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF KALISPELL, MONTANA,
THAT THE KALISPELL CITY CODE BE AMENDED TO READ AS FOLLOWS:
SECTION I. 8-32 Contributions in Lieu of Impact Fee Payments - Offsets.
A. Offsets against the amount of a development impact fee due from a new
development shall be provided for contributions made or to be made in the future
by the affected property owner in cash, or by dedication of land, or by actual
construction of all or part of a public facility or public facilities identified in an
adopted CIP and meeting or exceeding the demand generated by the new
development.
B. The amount of any excess contribution shall be determined by the Director of
Public Works and the Director of Finance upon receipt of an application form
requesting an offset; provided, however, that (a) the City will make no
reimbursement for excess contributions unless and until the particular
development impact fee account has sufficient revenue to make the
reimbursement without overdrawing the account or jeopardizing the continuity of
the City's Capital Improvements Program; and (b) the excess contribution may not
be transferred or credited to any other types of development impact fees
calculated to be due from that development for other types of public facilities.
The determination of the eligibility for and the amount of the offset shall be made
by the Director of Public Works and the Director of Finance, based on the fair
market value of the proposed dedication, construction, or contribution, as
established by appraisals and construction receipts or construction bids, as
applicable. If the applicant contends that any aspect of the City's decision
constitutes an abuse of discretion, the applicant shall be entitled to appeal
pursuant to Kalispell City Code 8-33.
C. Offsets for dedication of land or provision of public facilities shall be
applicable only as to development impact fees imposed for the same types of
public facilities that are proposed to be dedicated or provided. Even if the value
of the dedication of land or provision of a public facility exceeds the development
impact fee due for the type of public facility, the excess value may not be
transferred to development impact fees calculated to be due from the applicant for
other types of public facilities for which development impact fees may be
imposed. Offsets for excess capacity may, however, be transferred to the same
applicant or to other applicants for new development that creates a demand for the
same type of public facility and which development impact fees are due pursuant
to this Chapter.
D. Any offset or reimbursement shall be pursuant to a duly executed
development agreement.
E. No offsets shall be given for the construction of local on -site facilities,
structures, improvements, or other project improvements required by zoning,
subdivision, or other city, state or federal regulations unless the improvement is
identified in the Capital Improvement Program or there is a finding that the
proposed improvements meet the same need as improvements identified in the
Capital Improvements Program.
SECTION II. This Ordinance shall be effective thirty (30) days from and after the date
of its final passage and approval.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR
THIS 23RD DAY OF MARCH, 2009.
Pamela B. Kennedy
Mayor
ATTEST:
Theresa White
City Clerk