01. Ordinance 1587 - Establishing Impact Fees - 1st ReadingCity of Kalispell
Charles A. Harball office of City Attorney
City Attorney 312 First Avenue East
P.O. Box 1997
Kalispell, M59903-1997
MEMORANDUM
To: Mayor Pamela B. Kennedy
and Kalispell City Council
Tel 406.758,7708
Fax 406.758.7771
aral l lalisel l .o
FROM: Charles Ha all, City Attorney
James H. Patrick, City Manager
SUBJECT: Ordinance No. 1587, Resolutions No. 5149, 5150 and 5151
— Establishment of Impact Fees for Water, Wastewater
and. Stormwater Facilities
MEETING ATE: Monday, October 2, 200 — Regular Council Meeting
BACKGROUND.- Montana State lep lation. regulating impact fees to fund capital
improvements., MCA 7-6-1601 through - 6- 6 , became effective April 19, 200
and set forth the procedures and requirements forhe imposition of impact fees by
local governments. City Council has, pursuant to statute, established and
appointed an Impact Fee Advisory Committee, which has been meeting in noticed
public meetings with the City's consultant, H S. The committee reviewed the
consultant's report and recommendations on the water*, wastewater and stormwate
utility facilities and examined the methodology utilized. The committee has issued
its recommendations for the adoption of an impact fee schedule for these facilities
along with the data sources and methodology supporting adoption and calculation o
the impact fees to City Council. on September 5, 2006 City Council set a public
hearing to be held on October 2, 2006 on said proposed amendments to the fees,
schedules, charges and classifications of these utility services of the City of Kalispell
and the City Clerk gave the necessary Notice thereof as required by Section 9- -
111, MCA.
RECOMMENDATION: Following the public hearing, Council will consider
Ordinance 1587 that establishes and authorizes the procedure for the
implementation of impact fees pursuant to the requirements of state law. Following
the testimony and evidence received at the public hearing, Council may also
consider Resolutions 5149, 5150, and. 5151, which set the impact fees for water,
wastewater and sto mwater facilities.
1m.pact Fee Memorandum to Council
September 27, 200
Page # 2
FISCAL EFFECTS: The fiscal effects of adopting impact fees to fund capital
improvements s significant to the Ci y's ability to plan for meeting the demands o
growth on the Cityyis infrastructure.
Respectfully submitted,
Char os Hai 1 , uiy .Attorney
mes H. Patrick, City Manager
Office of City Attorney
City of Kalispell
ORDINANCE NO, 1587
AN ORDINANCE AUTHORIZING AND ESTABLISHING THE PROCEDURE AND
IMPOSITION of IMPACT'` FEES TO FUND CAPITAL IMPROVEMENTS IN THE CITY of
KALISPELL, AUTHORIZING THE CITY ATTORNEY TO CODIFY SAME AND DECLARING
AN EFFECTIVE DATA.
WHEREAS, Montana State legislation regulating impact fees to fund capital improvements, MCA. 7-6-
.1601 through 7-6-1604, became effective April 19, 2005 and sets forth the procedures
and requirements for the imposition of impact fees by local errrret; and
WHEREAS, are impact fee represents a fee for service payable by all users creating additional demand
on a city facility; 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 considered and i. . osed to fund capital improvements and that
a procedure be established for this purpose that is compliant with state lave.
E IT RDA.IN D BY THE CITY COUNCIL of THE CITY of KALISPELL, MONTA A, AS
FOLLOWS:
SECTION I Establishment of a Sta dia fmact Fee Committee. The City shall maintain a
standing impact fee advisory cone-nittee. This impact fee advisory committee shall include at least
one representative of the development community and one certified public accountant. The
committee shall review and monitor the process of calculating, assessing, and spending impact Fees.
The committee shall be provided with adequate financial reports on a semiannual basis, shall meet
at least annually, and shall provide the City Council with a report of their findings s and
recorr -lendation.s. The City shall provide the conmittee with the appropriate advice and counsel of
professional City Staff and/or an appropriate professional consultant selected by the City. The City
Council shall not consider or adopt any impact fees that have not been first considered by the
committee. The .Impact Fee Co r ittee shall serve in are advisory capacity to the City Council.
SECTION II Ca.lc latio.n and 1 osition of Impact Fees. Any impact fees to fund capital
improvements of the City of Kalispell shall not be approved and adopted by City Council unless
those fees have been calculated in accordance with - ;1 o2 MCA or as such statute may later be
amended. Impact fees may not be imposed for remodeling, rehabilitation, or other improvements to
an existing structure, or rebuilding a damaged structure, unless there is are increase in omits that
increase service den -land as set forth by state law. If impact fees are imposed for remodeling,
rehabilitation., or other improvements to an existing structure or use, only the net increase between
the old and new demand may be imposed. The data sources and methodology supporting adoption
and calculation of an impact fee shall be available to the public poi request.
SECTION III Collection of Impact Fees. a) 'Upon collection, all impact fees shall be deposited
in a special proprietary fund, which s .gall be invested with all interest accruing to the fund.
(b) The City may impose impact fees on behalf of local districts.
(c) If the impact fees are not hereafter collected or spent in accordance with this ordinance or are
not in compliance with - -1602 MCA., any impact fees that were collected must be refunded to the
person who owned the property at the time that the refund was due.
(d) The Kalispell Building Department shall collect all impact fees imposed and shall collect them
no earlier than the date of issuance of a building permit if a building perm is required for the
development or no earlier than the time of wastewater or water service connection or well or septic
permitting.
SECTION Iv. Contributions s in Lies The City may accept the dedication
of land or the construction of public facilities in lieu of payment of impact fees if -
(a) the reed for the dedication or construction is clearly documented pursuant to7-6-1602
MCA.; and
b the land proposed for dedication for the public facilities to be constructed is determined
to be appropriate for the proposed use by the City of Kalispell; and
(c) the value of the proposed dedication or construction has been established by an
independent appraiser or construction engineer, which appraisal or estimate has been subject to peer
review; and
(d) in the evert the value of the proposed dedication or construction exceeds the impact fee
due from an individual development no credits against future impact fee obligation shall be
established. In that evert, the City shall pay the excess worth to the contributor.
S CTI'ON V. Appeal Process. Any .party upon whom an impact fee has been imposed has the
right to appeal the imposition or amount of the impact fee. The .Appellant must perfect the appeal
by giving written notice of the appeal to the Building Department along with the full amount of the
required impact fee, in cash or cash equivalent as an appeal bond. d. 'he form of the written notice
shall be sufficient if it identifies the name and address of the appellant and a short statement giving
the reason why the impact fee is wrongly imposed or in the wrong amount. Upon receiving the
Notice of Appeal and cash bond, the building department official shall, within 24 hours, notify the
City Manager who will place the matter before the City Council on its next regularly scheduled City
Council Meeting that is more than. 5 days .following the filing of the appeal. The City Council shall
hear evidence from the Appellant and City staff and shall make the determination whether the
impact fee imposed upon the Appellant is compliant with. state law and city ordinance. In the event
that the City Council determines that the imposition of the impact fee is not compliant with either
state law or the city ordinance', the City shall return the cash bond paid by the appellant.
SECTION VI. This Ordinance shall be effective thirty 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
DAY OF OCTOBER, 2006.
Pamela B. Kennedy
Mayor
Attest:
Theresa white
City Clerk