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8. Proposed Amendments - Tri-City Planning Office Interlocal AgreementTri-City Planning Office 17 Second Street East - Suite 211 Kalispell, Montana 59901 Phone: (406) 751-1850 Fax: (406) 751-1858 tricity6Dce nturvtel. net www.tricityplanning-mt.com REPORT TO: Kalispell Mayor and City Council FROM: Tom Jentz, Director Chris A. Kukulski, City Manager SUBJECT Proposed Amendments to Tri-City Planning Office Inter -Local Agreement MEETING DATE: March 17, 2003 BACKGROUND: The Tri-City Planning Board, at their January 15, 2003 Board meeting, directed staff to prepare two amendments to the current Interlocal Agreement. The interlocal agreement requires all three city councils to authorize any amendments before they become effective. The proposed amendments address two issues. First, the current agreement requires that a member jurisdiction must give notice to withdraw from the Tri-City Planning Office by February 1 if they intend to leave by June 30 of a given year. This has proven unworkable as it requires that the Tri-city Office Budget be completed well in advance of February 1 date so that the City Councils can be provided with the budget information and have opportunity to consider and act prior to February 1 if they are so inclined. Instead a date of April 1 is proposed as the notice to withdraw date and March 1 as the date to have a budget prepared. This provides an additional 30 days to prepare coming years budget. The second issue addresses the funding formula. It is suggested that the formula be modified slightly to better address how the office functions. The formula currently uses three factors equally weighted - decennial population, taxable valuation of the community and a 5-year rolling average of applications processed per community. Because the decennial population is static, changing only once every 10 years, it is recommended that this factor be dropped and that the additional weighting be added to taxable valuation . Please find attached the paragraphs from the interlocal agreement in which the amendments occur. Strikeouts are for removal, underlines are new language. All changes, whether strike out or underline, has been bolded so they stand out for you. Also attached is a revised Agreement ready for Signature with the changes incorporated into the document as prepared by the Kalispell City Attorney. Amendment 1 (Page 3, Article II, Terms and Withdrawal of a Party) After appropriate filing, this agreement shall become effective and shall endure until terminated by law or by mutual agreement of the parties. A party may withdraw from this agreement only upon lawful resolution of the governing body of that party and service of written notice thereof on the remaining party or parties hereto on or before Februa April 1 st of the fiscal year in which they intend to withdraw. This agreement will remain in full force and effect as to a withdrawing party until the 30th day of June next following service of notice of the withdrawal of said party; the agreement shall remain in full force and effect as to all remaining parties until termination or withdrawal. Providing Community Planning Assistance To: • City of Columbia Falls 9 City of Kalispell • City of Whitefish • Amendment 2 - Article VII (Finance) paragraphs 1 and 3 Prior to the 1st day of February March of each year, the Board will, with input from each of the planning boards, ascertain the budget requirements thereof for the next ensuing fiscal year. The Board will then prepare an estimated overall budget for the -Planning office for said fiscal year; said budget shall include the income, costs and expenses of the staff provided for herein. The Board shall then allocate to each party an equitable proportionate share of the funding for said budget; such allocation shall take into consideration the proportionate benefit that each party will receive from the staff for the ensuing fiscal year, the other planning purpose needs of the cities and planning boards serving the parties, and an equitable distribution of planning purpose costs. Member jurisdiction fees may be paid on a monthly, quarterly or semi-annual basis. The formula to determine specific city allocations shall be based on wee equally weighted two components: urrent taxable valuation of each city weighted at 2/3 of the formula and a 5-year rolling average of actual applications processed by the Staff for each city weighted at 1/3 of the formula. A percentage contribution shall be derived for each of the three cities by weighing the individual components against each other and developing a composite total. RECOMMENDATION: A motion to approve the recommended amendments would be in order. All three cities are acting on this amendment at their respective councils tonight. FISCAL EFFECTS: ALTERNATIVES: Respectfully submitted, omas R. Jent Director No impacts anticipated. As suggested by the city council. Report compiled: February 28, 2003 c: Theresa White, Kalispell City Clerk Chris A. Kuku ski City Manager TRI-CITY PLANNING BOARD INTERLOCAL AGREEMENT THIS AGREEMENT in made and entered into by and between the following Montana public agencies within the meaning of the Interlocal Cooperation Act: The City of Columbia Falls, hereinafter called "Columbia Falls"; The City of Kalispell, hereinafter called "Kalispell"; and The City of Whitefish, hereinafter called "Whitefish." WITNESSETH: WHEREAS, Title 7, Chapter 11, Part 1, M.C.A., known as the "Interlocal Cooperation Act," permits local governmental units to make the most efficient use of their powers by enabling them to cooperate with other local governmental units on a basis of mutual advantage and thereby to provide services and facilities in a manner and pursuant to forms of governmental organization that will accord best with geographic, economic, population, and other factors influencing the needs and development of local communities; and WHEREAS, said Act provides that an interlocal agreement may be authorized and approved by the governing body of each party to said contract; and WHEREAS, Montana laws in Title 76, M.C.A., relating to land resources and use encourage local units of government to plan for future development of their communities and provide for interlocal cooperation agreements by and between units of local government for the most efficient and economical use of common land resources and financing the cost thereof; WHEREAS, within Flathead County there have been established separate City -County planning districts with appropriate planning boards for jurisdictional areas including each of the aforesaid Cities with adjoining County areas, and the County has established a planning district for the balance of Flathead County outside the jurisdictional areas of the said City -County planning districts, with an appropriate planning board therefore; all of said districts and boards having been established and continue to function under authority of Title 76, Chapter 1, M.C.A.; and Page 1 of 8 WHEREAS, the aforesaid local governmental units find it most desirable and efficient to employ one staff of professional, technical and clerical personnel to assist the said districts and the governmental units involved in their land use planning and zoning functions. It has been further found that the continuity of thought and effort of a single staff of such professional, technical and clerical personnel in assisting each said governmental unit in making its decisions is to the best interests of each such governmental unit as well as to the best interests of the orderly development of the jurisdictional area of the three cities as a whole; and WHEREAS, there does appear to be a necessity for a central administrative body composed of representatives of each of the public agencies party to this agreement for the purpose of administering and setting the policies of such a staff as well as to co-ordinate their work in light of the priority of need for the best orderly planning purposes and development of the jurisdictional area of the three cities as a whole. It is also apparent that such a central administrative body can best assess and allocate the costs and expenses of said staff among the parties as each benefits for a particular period of time; and WHEREAS, since approximately November 23, 1979, the three cities and Flathead County have been parties to an interlocal Agreement, which was amended in 1983, 1986, 1991, and 1994 and which created a four -member body known as the Countywide Administrative Board ("CAB") to conduct the business for which the 1979 Interlocal Agreement was entered into; and WHEREAS, pursuant to the 1979 Interlocal Agreement, as amended, Flathead County gave timely notice of its withdrawal from the 1979 Interlocal Agreement, and from the CAB; and WHEREAS, pursuant to the 1979 Interlocal Agreement, as amended, the three cities have elected to continue to be parties to the 1979 Interlocal Agreement, as amended, and to continue to participate in the CAB; and WHEREAS, the three cities desire to amend in its entirety the 1979 Interlocal Agreement, as amended, to take into account Flathead County's withdrawal from, and their continuation with, the CAB, and they wish to rename the CAB to better reflect its mission, Page 2 of 8 NOW THEREFORE, it is agreed by and between the parties as follows: I. NAME AND MEMBERSHIP The joint body previously known as the Countywide Administrative Board shall hereafter be known as the Tri-City Planning Board (Board). The Board is the same body as the CAB, minus Flathead County, which has withdrawn. The Board owns all assets of every kind previously owned by the CAB. Said Board is established as an administrative body for planning purposes but it is not intended to dissolve or affect any of the functions of the aforesaid City - County planning boards except as may be specifically provided herein. The Board shall consist of three (3) members. Each member shall be either an elected official or staff member of each of the above -mentioned cities. The City Council of each city shall appoint their 'respective representative to serve at the pleasure of their Council. A City Council may designate an alternate member to serve in its stead for one or more meetings or to perform some other official act required to carry out the functions of the Board. Any expenses incurred by a member will be paid for by the governing body, which said member represents. II. TERM AND WITHDRAWAL OF A PARTY After appropriate filing, this agreement shall become effective and shall endure until terminated by law or by mutual agreement of the parties. A party may withdraw from this agreement only upon lawful resolution of the governing body of that party and service of written notice thereof on the remaining party or parties hereto on or before April 1 st of the fiscal year in which they intend to withdraw. This agreement will remain in full force and effect as to a withdrawing party until the 30th day of June next following service of notice of the withdrawal of said party; the agreement shall remain in full force and effect as to all remaining parties until termination or withdrawal. Page 3 of 8 PURPOSE The purpose of this agreement is to permit the parties to better coordinate all land use planning, subdivision review and approval, zoning application and enforcement and to assist in efficient annexations in the jurisdictional area of the three Cities. The concerted action of the parties within the scope of this agreement should result in better professional, technical and clerical service accruing to the parties in the utilization of their land resources. It should result in a savings of public funds and more informed governmental decision in the best interests of the three cities. IV. BY-LAWS The Board shall adopt by-laws to govern its organization, internal affairs, meetings, and items of general administration in conformity with this agreement; such by-laws may be amended from time to time upon unanimous concurrence of the members. V. ADMINISTRATIVE AGENT There is hereby created the position of Administrative Agent. The Administrative Agent shall be one of the three cities as determined by the Board. The role of the Administrative Agent is to provide for and administer the following services for the Board and its staff: 1. Employee payroll processing 2. Employee retirement, sick leave and insurance administration 3. Depository of all Board funds and receipts 4. Payment of all claims 5. Vehicle insurance 6. Other administrative duties as agreed upon by the Board Page 4 of 8 A fee may be charged by the Administrative Agent to address any reasonable administrative expenses incurred. Any fees or expenses charged by the administrative agent shall be approved by unanimous consent of the Board. VI. STAFF The Board will establish a staff of professional, technical and clerical personnel to be known as the Tri-Cities Planning Office. Said staff will be organized and positions established therein as the land use needs of the parties and the various planning boards require. The Board shall have full control over said staff, and shall establish the priority of functions to be performed by its personnel. The Board shall also adopt an administrative policy statement to govern the staff rights, duties, salary schedules, fringe benefits, and such other matters as may be proper and necessary to the efficient and harmonious operation thereof. Although staff personnel are not to be considered as employees of any of the cities, the administrative policy adopted shall recognize and provide for all rights and duties as are provided by law for all public employees. As set forth hereinabove, the staffs function is to provide technical, professional and clerical services to the various cities and planning boards of the governmental units that are parties to this agreement in carrying out their respective land use rights and obligations. No charge shall be made to any party for such service; however, the Board has full authority to direct the staff in establishing its workload priority in furnishing its services to the aforesaid parties and boards. VII. FINANCE Prior to the 1st day of March of each year, the Board will, with input from each of the planning boards, ascertain the budget requirements thereof for the next ensuing fiscal year. The Board will then prepare an estimated overall budget for the planning office for said fiscal year; said budget shall include the income, costs and expenses of the staff provided for herein. Page 5 of 8 The Board shall then allocate to each party an equitable proportionate share of the funding for said budget; such allocation shall take into consideration the proportionate benefit that each party will receive from the staff for the ensuing fiscal year, the other planning purpose needs of the cities and planning boards serving the parties, and an equitable distribution of planning purpose costs. Member jurisdiction fees may be paid on a monthly, quarterly or semi-annual basis. The formula to determine specific city allocations shall be based on two components: current taxable valuation of each city weighted at 2/3 of the formula and a 5-year rolling average of actual applications processed by the Staff for each city weighted at 1/3 of the formula. A percentage contribution shall be derived for each of the three cities by weighing the individual components against each other and developing a composite total. Any disagreement by a party with the allocation of proportionate funding provided hereby, shall be resolved by the good faith negotiations between the governing body of the disagreeing party and the Board. Each party will then levy within its own jurisdiction a tax for planning board purposes using the procedures set forth in Title 7, Chapter 6, Part 42, M.C.A., as the case may be, provided such levy shall not exceed the limits as provided by Montana Law. VIII. All furniture, office equipment, automobiles, and major items of personal property needed for the staff to operate will be provided by the Board. All property purchased or otherwise acquired by the Board shall remain the property of the Board as long as this agreement remains in effect. The withdrawal of a party from this agreement, pursuant to Paragraph II, shall not result in any change of ownership of any property purchased by the Board; any party, by withdrawing, shall waive any claim it might have to property purchased or otherwise acquired by the Board including any cash reserves or balances however denominated. In the event that this agreement is terminated by mutual consent of the parties, any property including cash then owned by the Board shall either (1) be divided among the parties pursuant to an agreement Page 6 of 8 reached by the parties at the time of termination or, in lieu of such agreement, (ii) be sold pursuant to the statutory provisions then in effect with regard to the sale of City property. In the event of a sale, the proceeds shall be divided among the parties pursuant to an agreement reached by the parties at the time of termination or, in lieu of such agreement, by using the percentages used to determine the contribution of each party to the Board in its budget for its last full fiscal year of operation. The Board shall provide adequate office space for the operation of the staff through the appointment of an administrative agent. Reasonable rental charges for office space and personal property may be a proper budget item chargeable by the Administrative Agent upon approval of the Board. Such rent charges must be approved by unanimous consent. IX. COUNSEL Legal Counsel shall be retained by the Board as needed. Page 7 of 8 IN WITNESS WHEREOF, the parties do execute this agreement this day of .2003. Attest: Columbia Falls City Clerk Attest: Kalispell City Clerk Attest: Whitefish City Clerk FILED: Flathead County Clerk and Recorder the SEAL CITY OF COLUMBIA FALLS By: City Council Representative CITY OF KALISPELL By: City Manager CITY OF WHITEFISH By: City Manager day of , 2003. Flathead County Clerk and Recorder Secretary of State, State of Montana, the day of , 2003. Secretary of State Page 8 of 8