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3. Resolution 5273 - Impact Fees Annual Adjustmentig Cl*ty of Kalispell Works .... ....... Post Office Box 1997 Kalispell, Montana 9 0 � p S 9 3- 997 Telephone (406)758-7720, Fax (406)758-78.� � I REPORT TO: Mayor and City Council FROM* Terri Loudermilk, Budget Resource Manager James H. Patrick, City Manager SUBJECT: Impact Fee Annual Adjustment Resolution MEETING DATE: April 7, 2008 BACKGROUND: The adopted Kalispell Impact Fee technical reports for water, Wastewater, Stormwater, Police and Fire impact fees included a recommendation for annual adjustment of the fees to compensate for the affects of cost inflation. The attached resolution and fee incorporates a 2.7% increase as recommended by the Impact Fee Advisory Committee. RECOMMENDATION: Staff is recommending the Council adopt Resolution 5273 adjusting the impact fees for water, wastewater, Stormwater, Police, and Fire. AILTERNTIVES: A. Respectfully submitted, Terri Louderm' k Budget Resource Director As suggested by Council. ames H. Patrick City Manager RESOLUTION NO., 5273 A RESOLUTION ADJUSTING THE WASTEWATER, STORMWATER., WATER SYSTEM, POLICE AND FIRE IMPACT FEE SCHEDULES FOR CONSTRUCTION COSTS INFLATION. WHEREAS, the City Council passed ordinance 1587 on October 16, 2006, which authorized the imposition of impact fees for Wastewater, Stormwater, Water System, Police and Fire services; and WHEREAS, subsequent to the passage of Ordinance 1587, resolutions were passed establishing impact fees for Wastewater, Stormwater, Water System, Police and Fire services and more than one year has passed since such establishment; and WHEREAS, pursuant to MCA 7-6-160.E the Impact Fee Advisory Committee is recommending that the currently established impact fees be adjusted to reflect the actual inflation to construction costs experienced over the past year; and WHEREAS, Exhibit "A" attached hereto reasonably accurately reflects the actual inflation to local construction costs experienced over the past year. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF I ALISPELL, MONTANA: SECTION I. That the Wastewater, Stormwater, water System, Police and. Fire Impact Fees be adjusted pursuant to the Schedule attached hereto as Exhibit "A" and incorporated fully herein by this reference. SECTION II. That this resolution adjusting the impact fee schedule shall become effective immediately. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL THIS 7TH DAY OF APRIL, 2008. Pamela B. Kennedy Mayor ATTEST: Theresa White City Clerk March 18, 2007 City Council City of Kalispell 312 First Avenue East Kalispell, MT 59903 Subject: Recommendation for Annual Adjustment in Impact Fees On March 5, 2008, the Impact Fee Advisory Committee discussed and recommended an annual adjustment be made to the current adopted impact fees. The impact fee reports, prepared by HDRIEES and adopted by the City Council recommend the impact fees be adjusted each year to reflect the cost of interest and inflation. The source used to adjust impact fees is the Engineering News Record (ENR) cost indexes, which tracks changes in construction costs. The impact Fee Reports recommended that this method of adjusting the City's impact fees should be used for no more than a two-year period. After the two-year period, as required by Montana law, the City" s impact fees will be reviewed and updated. The IFAC recommended increase will be the first annual adjustment to the impact fee schedule since it was updated and reviewed by HDR/EES . Attached is a chart that outlines the increases based on ENR's Construction Cost Index increase of 2.7% for January 2008. Thank you for your consideration, of the above recommendation. If you have any questions, please contact me or any other member of the impact fee advisory committee. Sincerely yours, Merna Terry Chairperson Impact Fee Advisory Committee C.0 Impact Advisory Committee James Hansz, P.E. Terri Loudermilk Randall Goff --- HDR Engineering Attachments Impact Fee Schedule Wastewater Impact Fees Impact Fee Per ERU $ 21433 $ 21499 $ 66 2.70°fin A single family home is (1) ERU all other types of construction to be calculated. An apartment, duplex, or multi -family home is 0.75 ERU per unit. Stormwater Impact Fees I m pact Fee Per ERU $ 19092 $ 11121 $ 29 2.70% A single family home is (1) ERU all other types of construction to be calculated. An ERU is defined as 2,400 square feet of impervious area. An apartment, duplex, or multi -family home is 0. 75 ERU per unit. Water System Impact Fees Residential $ 29155 $ 21213 $ 58 2.70% ill $ 51388 $ 51,533 $ 145 2.70% 1 1 /2" $ 109775 $ 119066 $ 291 2.70% 2" $ 17,240 $ 179705 $ 465 2.70% 3" $ 34,480 $ 35,411 $ 931 2.70% 411 Calculated Calculated Calculated 2.70% A residential meter is a 3141E meter. Commercial customers with residential type usage pay the residential flee. Police Impact Fees Single Family (residential) per unit $ 43 $ 44 $ 1 2.70% Apartment per unit (multi -family) $ 34 $ 35 $ 1 2.70% Commercial per 1,000 sq ft of build space (or fraction thereof) $ 13 $ 13 $ 0 2.70% Fire Impact Fees Single Family (residential) per unit $ 533 $ 547 $ 14 2.70% Apartment per unit (multi -family) $ 422 $ 433 $ 11 2.70% Commercial per 1,000 sq it of build space (or fraction thereof) $ 240 $ 246 $ 6 2.70%