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3. Resolution 5652 - Resolution of Intent & Call for PH - Water System Impact FeesCity of Kalispell Post Office Box 1997 - Kalispell, Montana 59903 Telephone: (406) 758-7701 Fax: (406) 758-7758 To: Mayor Fisher and City Council From: Doug Russell, City Manager DItZ Re: Resolution No. 5652 — Resolution of Intent and Call for a Public Hearing on Adjustments to the Water System Impact Fees Meeting Date: October 7, 2013 — Regular Council Meeting BACKGROUND: The Impact Fee Committee has completed its review of the 2013 Water Impact Fees and is recommending the report be forwarded to the City Council for final review and consideration. Attached is a letter from the Impact Fee Committee's Chairperson with the recommendation of approval for a 2% growth rate and overall 2013 Water Impact Fee Report. On September 30, the proposed changes were reviewed during a work session and staff was directed to bring forward the report for official council action. - Section 7-6-1602(2)(k)(4), MCA requires that any changes in impact fees require proper notification and a public hearing. FINANCIAL IMPACT: The 2013 Water Impact Fee Report recommends increasing the water impact fee from $2,213/ERU to $2,567/ERU. RECOMMENDATION: It is recommended the City Council approve Resolution 5652 scheduling a public hearing for November 4 on the proposed adjustments to the Kalispell Water System Impact Fees. RESOLUTION NO.5652 A RESOLUTION OF INTENT TO AMEND THE IMPACT FEES FOR CITY OF KALISPELL WATER UTILITY SERVICES PURSUANT TO MCA 7-6-1601 THROUGH 7-6-1604, SETTING A PUBLIC HEARING AND DIRECTING THE CITY CLERK TO PROVIDE NOTICE THEREFORE. WHEREAS, pursuant to authority granted by Section 69-7-101, MCA to municipalities operating utility services, and the authority granted by 7-6-1601 to 7-6-1604, MCA to municipalities to charge impact fees to fund capital improvements, the City of Kalispell considers it proper and necessary to amend the fees, schedules, charges and classifications imposed for water utility services to its inhabitants and other persons served by the City of Kalispell Water Utility; and WHEREAS, pursuant to Section 7-6-1602(2)(k)(4), MCA that impact fees be reviewed every two years, the Kalispell Impact Fee Committee met in noticed public meetings, reviewed its report and recommendations on the water utility facilities and issued its recommendations for a change to the impact fee schedule based upon adjustments to the water utility capital improvement plan and updated cost analysis; and WHEREAS, it is the intent of the City Council to consider the recommendations of the Kalispell Impact Fee Committee and to possibly adjust the water utility impact fees imposed on users creating an additional demand on the water facilities in order to capture the water system development costs attributable to such new users; and WI EREAS, prior to adjusting the impact fees on the water utility system, the City is required, pursuant to MCA 69-7-111, to hold a public hearing on the matter after giving due and proper notice of said hearing. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL, AS FOLLOWS: SECTION 1. That there is hereby set a Public Hearing on the 4th day of November, 2013, at 7:00 o'clock p.m. in the Council Chambers, City Hall, Kalispell, Montana, to discuss a proposal to adjust the impact fees for the water system as recommended by the Kalispell Impact Fee Committee. SECTION 2. The City Clerk is hereby authorized and directed to make, publish and distribute notices of said Public Hearing in conformity with Section 69-7-I11, MCA. The City Clerk shall further make the report containing the recommended impact fee schedule, data sources and methodology supporting adoption and calculation of the impact fees to the public upon request. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL, ON THE 7TH DAY OF OCTOBER, 2013. ATTEST: Theresa White City Clerk Tammi Fisher Mayor NOTICE OF PUBLIC HEARING PROPOSED AMENDMENT TO WATER UTILITY IMPACT FEES NOTICE IS HEREBY GIVEN that the City Council of the City of Kalispell shall hold a Public Hearing on a proposal to amend impact fees for services of the water utilities of the City of Kalispell on Monday, November 4, 2013, at 7:00 P.M. in the Council Chambers of City Hall, 201 1st Avenue East, Kalispell, Montana. It is the intent of the City Council to consider the recommendations of the Kalispell Impact Fee Committee to amend the water utility impact fees for users creating an additional demand on the water facilities. Any person wishing to address the proposed amendment to the water impact fees may appear at this hearing and make oral statements or present same in writing. Written comments may also be submitted for Council consideration by delivering the same to the City Clerk prior to the hearing by mail at P.O. Box 1997, Kalispell, MT 59903, by email to cityclerkO)kalispell.com or in person at City Hall, 201 First Avenue East. If there are questions that might be answered by telephone you may call (406) 758-7722. The fee schedule, data sources and methodology supporting the adoption and calculation of the impact fees are available on-line at www.kalispell.com or in the office of the City Clerk during regular business hours. Dated this 7th day of October, 2013. Theresa White City Clerk Publish: October 16, 2013 October 23, 2013 October 30, 2013 City of Kalispell Post Office Box 1997 - Kalispell, Montana 59903 Telephone: (406) 758-7701 Fax: (406) 758-7758 August 27, 2013 City Council City of Kalispell 201 1 "Avenue East Kalispell, MT 59901 Subject: Water Impact Fee Recommendation Dear Council Members: Morrison & Maierle, Inc. (MMI) was retained by the City of Kalispell (City) to update the current impact fee for the water system for new development. A 2013 Impact Fee for Water System Report was prepared and reviewed with the Impact Fee Advisory Committee (IFAC). Based on the recommendation of the IFAC, the final draft report was presented to the City Council during a work session on April 22, 2013. During that meeting, the City Council referred the 2013 Impact Fee for Water System Report back to the IFAC for further review of the report's 2% projected population growth rate. The IFAC received additional input and analysis from the Public Works Department and Tom Jentz, Planning Director_ Tom met with the IFAC and discussed Kalispell's Growth Policy adopted by City Council which outlines population projections. Tom also presented a review of Kalispell's past and current growth trends. After extensive discussions and detailed questions among the committee members the IFAC is recommending a 2% growth rate be utilized in the calculation of the water impact fee as outlined in the 2013 Impact Fee for Water System Final Report. The IFAC voted in favor of the 2% growth rate at the July 2013 IFAC meeting with the following results, three (3) yes, and two (2) no. The IFAC is available to answer questions and looks forward to finalizing the updated water impact fees. Sincerely, Chad &'ha am, Chairperson Impact Fee Advisory Committee