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09. Resolution 5012 - Engineering Services - Impact FeesCity of Kalispell Charles A. Harball Office of City Attorney City Attorney 312 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 James H. Patrick, City Manager Tel 406.758.7708 Fax 406.758.7771 charbail@kalispell.com SUBJECT: Resolution 5012 — Engineering Services for Impact Fee Study and Implementation MEETING DATE: Monday, May 16, 2005 — Regular Council Meeting BACKGROUND: City Council discussed the status of the new Impact Fee legislation at its work session on May 9, 2005. Direction was given to staff to proceed with drafting a scope of work to provide to engineering consultants that may be retained to assist the City in planning, drafting and implementing the impact fee structure as required by the new legislation. Staff will negotiate a contract with the consultants and come to Council for any necessary budget approval. RECOMMENDATION: That City Council pass Resolution 5011 authorizing the study of City facilities needs and to determine the appropriate methodology for the determination of impact fees as well as a plan for paying for deferred capital investment. FISCAL EFFECTS: The professional engineering consultants that were retained to assist the City in developing its system development charges for wastewater, storm water, and water ultimately charged a fee of about $80,000. It is anticipated that the fee for updating storm water SDCs and developing impact fees for transportation and public safety facilities may also fall within this range. Respectfully submitted, Chap es farball, City Attorney Jh�mes H. Patrick, City Manager RESOLUTION NO.5012 A RESOLUTION TO AUTHORIZE THE ENGAGEMENT OF A PROFESSIONAL ENGINEERING FIRM TO PROVIDE CONSULTATION SERVICES FOR THE IMPLEMENTATION OF IMPACT FEES PURSUANT TO 2005 MONTANA SESSION LAWS 299. WHEREAS, on April 19, 2005 Montana Session Laws 299 became effective, authorizing the use of impact fees and requiring local governments to comply in all respects to the terms and requirements of the law; and WHEREAS, the City of Kalispell is experiencing unprecedented growth that is placing strains on such municipal facilities as transportation and public safety. It is the finding of City Council that it is appropriate that a charge be placed upon new development in the City to pay a reasonable fee for the additional capacity for municipal services that reasonably relates to the service demands and needs of the new development; and WHEREAS, the current system development costs implemented by the City for municipal wastewater and water facilities are impact fees authorized under MCA Title 7 for municipal sewer and water systems and were designed with the assistance of engineering consultants to identify and formulate the fees to assess new development to pay for its additional service capacity for wastewater and water services; and WHEREAS, the City must develop the necessary background information prior to developing and imposing impact fees by engaging a professional engineering firm to advance the study of the current municipal facilities, identifying the level of service standards, forecasting additional service needs and capital improvement needs, distinguishing the capital improvement needs of continuing maintenance and operations and the needs of new developments, determining service areas, and establishing the methodology the City should use to distinguish such fees and otherwise comply with the requirements of the law. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY Of KALISPELL AS FOLLOWS: SECTION I. The City Manager is authorized to take the necessary steps to immediately engage a professional engineering firm to assist the City of Kalispell in studying its facilities and advise the City Council about an appropriate and legal impact fee system that may be implemented by the City. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL, THIS 16" DAY OF MAY 2005. Pamela B. Kennedy Mayor ATTEST: Theresa White City Clerk