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1. Resolution 5654 - Water System Impact FeesCity of Kalispell Post Office Box 1997 - Kalispell, Montana 59903 Telephone: (406) 758-7701 Fax: (406) 758-7758 MEMORANDUM To: Doug Russell, City Manager From: Susie Turner, Public Works Difecto Re: Water System Impact Fees Meeting Date: November 4, 2013 — Regular Council Meeting The Impact Fee Committee completed its review of the 2013 Water Impact Fees in September 2013 and recommended the report be forwarded to the City Council for final review and consideration. 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. 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 that the City Council approve the 2013 Water Impact Fee Report and adjustments to the Kalispell Water System Impact Fees. RESOLUTION NO.5654 A RESOLUTION TO AMEND THE CITY OF KALISPELL WATER UTILITY IMPACT FEES, AS WELL AS SCHEDULES AND CLASSIFICATIONS IMPOSED ON THE CUSTOMERS OF THE CITY OF KALISPELL WATER UTILITY AND TO SET THE EFFECTIVE DATE. WHEREAS, pursuant to authority granted to municipalities operating utility services by Section 69-7-101, MCA, and the authority granted to municipalities to charge impact fees to fund capital improvements by 7-6-1601 to 7-6-1604, MCA, the City of Kalispell did consider it proper to amend the fees, schedules, charges and classifications imposed for utility services to its inhabitants and other persons served by the City of Kalispell Water Utility; and WHEREAS, the Kalispell Impact Fee Committee met in noticed public meetings with the City's consultant, Morrison-Maierle, Inc. (MMI), reviewed its report and recommendations on the water utility facilities and examined the methodology utilized and issued its recommendations for the amendment of an impact fee schedule along with the data sources and methodology supporting the amendment to the water utility impact fees; and WHEREAS, the City Council did, on October 7, 2013 set a public hearing to be held on November 4, 2013 on said proposed amendments to the fees, schedules, charges and classifications of the Water Utility services of the City of Kalispell and the City Clerk published the necessary Notice thereof as required by Section 69-7- 111, MCA; and WHEREAS, said public hearing was duly held by the City Council at a public meeting thereof in the Kalispell City Hall beginning at 7:00 o'clock P.M. on November 4, 2013, and all persons appearing at said hearing and expressing a desire to be heard were heard, and all written comments thereon furnished to the City Clerk at said meeting prior thereto were given consideration by the Council; and WHEREAS, based upon the report and recommendations of the Kalispell City Impact Fee Committee, the evidence provided by the public, in writing and at the public hearing, the City Council finds said proposed amended fees, schedules, charges and classifications utilizing an assumed projected growth rate of 2% to be reasonable and just and further adopts as its findings the report and recommendations of the City's consultant, MMI, along with the data sources and methodology used supporting the amendment of the impact fee. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL AS FOLLOWS: SECTION 1. That the fees, schedules, charges and classifications applicable to the use of the City of Kalispell Water Utility and other services performed by said utility, as set forth in Exhibit "A", attached hereto and by this reference made a part hereof, are found to be just and are hereby established and adopted to be imposed for water utility services to the inhabitants of the City of Kalispell and those other persons served by its water utility service. SECTION 2. This resolution becomes effective ten (10) days after filing of this Resolution with the City Finance Director. The Finance Director shall file a copy hereof with the Public Service Commission of Montana at that time. SECTION 3. That the fees, schedules, charges and classifications applicable to the use of the City of Kalispell Water Utility and other services performed by said utility shall be reviewed no later than two years after the effective date of this resolution. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR THIS 4TH DAY OF NOVEMBER, 2013. Tammi Fisher Mayor Theresa White City Clerk EXHIBIT "A" SEPTEMBER 2012 WATER IMPACT FEE UPDATE SUMMARY (Update to the August 2010 Impact Fee Final Report) SUBMITTED TO: City of Kalispell 201 10 Avenue East P.O. Box 1997 Kalispell, MT 59901 September 2012 PREPARED BY: Morrison-Maierle, Inc. 125 Schoolhouse Loop P.O. Box 8057 Kalispell, MT 59901 (406) 752-2216 MMI PROJECT # 0387.054.010.000411 CITY OF KALISPELL 2012 WATER IMPACT FEE UPDATE SUMMARY HUM1,111111 2.0 SOURCE OF SUPPLY WELLS ........................................................... ........... 2-1 3.0 PUMPING FACILITIES .................................................................................... 3-1 4.0 STORAGE FACILITIES ................................................................................... 4-1 5.0 TRANSMISSION AND DISTRIBUTION FACILITIES ....................................... 5-1 6.0 TOTAL WATER IMPACT FEE CALCULATION .............................................. 6-1 LIST OF FIGURES FIGURE 1-6 2011 Annexation Boundary .....................................End of Section 6 LIST OF APPENDICES APPENDIX A City of Kalispell Water System Impact Fees ERU Projection APPENDIX B City of Kalispell Water System Impact Fees Source of Supply APPENDIX C City of Kalispell Water System Impact Fees Pumping Facilities APPENDIX D City of Kalispell Water System Impact Fees Storage APPENDIX E City of Kalispell Water System Impact Fees Transmission/Distribution Mains APPENDIX F 2012/2013 Water Capital Improvement Plan APPENDIX G 2011 Montana code Annotated 7-6-16 September 2012 Water Impact Fee Update Summary (Update to the August 2010 Impact Fee Final Report) 1.0 INTRODUCTION AND BASIS OF REPORT The current water impact fee is based on the 2006 Impact Fee Final Report and on an adjustment to the fees by City Council Resolution No. 5273 in April 2008. The City Council has directed staff to update the existing cost -based water impact fee based on current conditions and according to 2011 Montana Code Annotated 7-6-16. In 2010, the City of Kalispell received the August 2010 Impact Fee Final Report for review and consideration by the Impact Fee Advisory Committee. No adjustments were made to the impact fee at that time. This September 2012 Water Impact Fee Update Summary updates the information provided in the August 2010 impact fee report with the following information: 1 ) Change to the Kalispell Growth Policy: On March 7, 2011, The City Council adopted an annexation policy that significantly revised the previous annexation policy boundary. This September 2012 report accounts for the projected water improvements within the current annexation boundary. The current annexation boundary is attached to this report, and provides a comparison to the pre-2011 annexation boundary (original study area boundary). See Figure 1-6, 2011 Annexation Boundary, at the end of Section 6. 2) Current Water Demands: The August 2010 report used 2006 water production volumes and projected these volumes to 2010 with a theoretical population growth rate. This current report uses measured historical water production volumes between 2006 and 2011 as a baseline volume, and projects future volumes based on a growth rate currently applied by the Kalispell Planning Department. 3) PrpAected Population Growth Rate: This report uses a population growth rate of 2.00% as projected by the 2011 Kalispell Growth Policy Update. This is lower than the projected population growth rates applied in the August 2010 report and in the 2008 Facility Plan Updates. The reduced 2011 annexation boundary also generates a lower projected population to be served by City utilities. For reference, historic population growth rates are listed below. The growth calculation is shown in Appendix A. 1990 to 2000 1.78% 2000 to 2010 3.43% 1990 to 2010 2.60%. 1960 to 2010 1.36% 4) Updated Capital Improvement Plan: The Kalispell Public Works Department has updated the Capital Improvement Plan to reflect the current projected capital needs. The 2012/2013 Capital Improvement Plan shows projects to be completed over the next five years and future projects to be completed in approximately ten years. The updated Capital Improvement Plan is included in Appendix F. 1-1 5) Key Financial Assumptions: In developing the impact fee for the City's water system, several key assumptions were used. These include the following: The City's asset records were used to determine the existing assets and the value of those assets. The interest rate used for calculating interest on existing assets is the 1 0-year treasury note rate as reported by the US Department of the Treasury at closing on November 30th of each year, Up to fifteen years of interest is included in the cost of the existing improvements. The fifteen -year average interest rate is currently 4.25%. The August 2010 Impact Fee Final Report used an interest rate of 6.00%. 6) Council Direction on Administrative Fees: For the August 2010 Impact Fee Final Report, the City Council directed staff to use the allowable administrative charge of 5% in the impact fee analysis. This 2012 report follows that same guidance from the City Council. By addressing the points listed in this introduction, this report provides an up-to-date analysis of the water impact fee. The water impact fee comprises four utility components: (Section 2.0) source of supply, (Section 3.0) pumping facilities, (Section 4.0) storage facilities and (Section 5.0) transmission and distribution facilities. 1-2 2.0 SOURCE OF SUPPLY (WELLS) The City's source of supply is provided entirely from wells. (The Noffsinger Spring, located at the north end of the Lawrence Park complex, will be considered a well for discussion purposes, as it does not have sufficient artesian pressure to contribute to the system without additional pumping, and it was recently classified as a well by the Montana Department of Environmental Quality.) The sources of supply consist of eight active well sites. Details of the calculations for source of supply are provided in Appendix B, with present costs. The current wells have a firm capacity of 10.195 million gallons per day (mgd). This firm capacity assumes all wells, except the single largest, are on 24 hours per day. The firm capacity provides a characterization of the system, but does not constrain the system to operate under such conditions* the system chn"Iri not operate with all pumps turned on 24 hours per day, as this would create obvious problems With operation and maintenance of equipment. The current pumping capacity of the system is sufficient to meet current 2012 peak day demands (9.560 mgd) and to meet peak day demands into 2015 (10.150 mgd). Between 2012 and 2015, the City should consider developing additional supply capacity in the system. This will likely be accomplished through development of the Grossweiler well An Equivalent Residential Unit, or ERU, is a standard way to measure capacity within a utility system. An ERU is the water flow demand arising from an average single-family home. Within the Kalispell water system, an ERU is 415 gallons per day, or 166 gallons per person with 2.5 persons per single-family residence. A facility that consumes 830 gallons per day would have the impact of two ERUs. This unit creates the equitable distribution of costs across residential, (2.880 mgd). The Grossweiler well is located adjacent to the DNRCIDEQ/911 Center complex on Stillwater Road. The costs associated with this well development are included in this impact fee analysis, and are shown in Appendix B. The addition of the Grossweller well will bring the peak day capacity to 13.075 mgd. This is the approximate peak day demand at the 2028 planning year, or 13.130 mgd. Note on Planning Period: The 2008 Water Facility Plan Update uses the design year 2035 for facility planning. This same design year is used as the planning year in this report. Extending the planning year further into the future will increase the number of ERUs over which to distribute the impact fees. This will decrease the impact fee, but will also create a greater risk to the City of not collecting sufficient impact fee when the improvements are needed. Conversely, bringing the planning year closer to the present year will decrease the number of ERUs and will increase the per-ERU impact fee. For these reasons, the 2035 planning year is used for this water impact fee update. By following the 2011 Montana Code Annotated 7-6-1602 (2 k iv), regarding the update of the impact fee analysis, the City will be able to respond to changes in the actual population growth rates and development patterns. This response will allow the City to modify future capital improvement plans to meet changing population growth rates. 2-1 The total current cost for source of supply equipment is $2,879,260. This total cost is divided by the ERUs at the 2035 planning year, or 13,612 ERUs. This generates a per ERU supply cost shown below. Details of this calculation are shown in Appendix B. Total 2012 Source of Supply Costs: $ 2,879,260 Total Proiected ERUs at 2035 Planning Year. 13,612 Impact Fee (Source of Supply) per ERU: $ 212 2-2 3.0 PUMPING FACILITIES The City currently has pumping facilities at all well sites. No future capital improvements were identified as part of the 2012 capital improvement plan. The cost of future pumping facilities associated with the Grossweiler Well are included in the source of supply costs in the previous section. The total cost of existing pumping facilities are shown in Appendix C. Details of the pumping facilities calculation are also provided in Appendix C. The total 2012 cost for pumping facilities is $3,250,836. This total cost is divided by the ERUs at the 2035 planning year, or 13,612 ERUs. This generates a per-ERU cost shown below: Total 2012 Pumping Facilities Costs: $ 3,250,836 Total Proiected ERUs at 2035 Planning Year: 13,612 Impact Fee (Pumping Facilities) per ERU: $ 239 3-1 4.0 STORAGE FACILITIES The City currently has four storage reservoirs with a total storage volume of 6.5 million gallons. Each reservoir contains the following components of storage volume: Operational Storage: this is the water that is stored between the pump "on" and pump "off' settings. This is a relatively small component of the storage system, and allows the well pumps to cycle and alternate rather than run continuously during average demand conditions. This is currently approximately 0.880 million gallons. Equalization Storage: this is the water used when the supply System cannot provide Sufficient water at peak system flows, e.g., summer watering patterns and daily peak demands. The use of this equalization water does not indicate a deficiency in the system; rather, this component of storage allows the system to function more cost-effectively by not requiring additional wells and pumps to meet peak day demands; the storage tanks are in place to meet these peak day demands. The storage facilities contain 1.625 million gallons of equalization storage, or 25% of the total storage volume. Fire Storage: this water is used for fire suppression activities and is determined by the size of the community and the land uses within the community. The City of Kalispell applies a 4000 gpm fire flow over a period of four hours to develop the fire storage volume. This equates to 960,000 gallons of fire storage. Emergency Storage: this component is used to provide water to the community during extraordinary events such as prolonged supply failures. The City's water system contains redundancies in the system, which minimize the probability of an emergency scenario. These redundancies include multiple wells, multiple tanks, auxiliary power, upper/lower zone connections and comprehensive monitoring by means of the SCADA system (Supervisory Control and Data Acquisition). The current emergency storage volume is approximately 2.720 million gallons, Remaining storage is water that may be unavailable due to outlet levels or low pressures as the system empties. This component is not considered in Kalispell storage calculations, as it comprises an insignificant volume of water in the Kalispell system. The total available operational and equalizing water storage is 2.820 million gallons. The City currently utilizes approximately 0.880 million gallons of this available storage. Discussions with water department staff have indicated the City intends to study the viability of optimizing the water system to use approximately 1.195 of this storage. The full amount of this storage is not currently used due to low pressures that develop when the tanks are drawn to lower levels. When the tanks are drawn to lower levels in an attempt to use the full storage capacity, the water pressure (near the top of the lower pressure zone) drops below what citizens typically expect. It is recommended the water department consider utilizing more of the 2.820 million gallons of operational and equalizing storage prior to constructing additional storage facilities. If the City utilizes the full 2.820 million gallons of operational and equalizing storage, no additional storage capacity is necessary within the planning period. While the full use of the 2.820 million gallons may not be feasible, due to citizens' expectations for water pressure, the City should determine how much of the storage may be reasonably used for current demands. This will allow the City to determine what additional storage may be necessary during subsequent impact fee analyses. M The total cost of existing storage facilities was divided by the planning year 2035 ERUs to develop the cost for storage facilities per ERU. Details of the storage facilities calculation are provided in Appendix D. The total 2012 cost for storage facilities is $5,672,604. This total cost is divided by the ERUs at the 2035 planning year, or 13,612 ERUs. This generates a per-ERU cost shown below: Total 2012 Storage Facilities Costs: $ 5,672,604 Total Projected ERUs at 2035 Planning Year: 13,612 Impact Fee (Storage Facilities) per ERU: $ 417 IN 5.0 TRANSMISSION AND DISTRIBUTION FACILITIES 5.1 Recoupment Costs and Capital Projects within the Existing System A significant component of the water impact fee arises from recoupment costs associated with existing transmission and distribution facilities that have excess capacity. The total 2012 cost of these facilities is $20,196,005. The impact fee related costs were determined by considering the additional ERUs that are projected to connect to the system during the planning period (2012 to 2035), and then dividing this number of ERUs by the total ERUs projected at the 2035 planning year. The total impact fee related to existing transmission and distribution facilities is $6,416,138, or $1,288 per ERU. A summary of these costs and this calculation is shown in Appendix E. A second component of the transmission and distribution facility impact fee is the cost related to capital improvement projects (CIP) within the existing system that are necessary to accommodate future growth. The total impact fee related to capital improvements to the existing system is $1,438,603, or $289 per ERU. These costs are also summarized in Appendix E. The two components of the transmission and distribution facilities impact fee are shown below with the associated per-ERU impact fee. Transmission and Distribution Recoupment Impact Fee: $ 6,416,138 ($1,288 / ERU) Transmission and Distribution CIP Impact Fee: $ 1,438,603 ($ 289 / ERU) Total Proiected Additional ERUs at 2035 Planning Year. 4,980 Impact Fee (Trans. & Dist.) per ERU: $ 1,577 5.2 Extensions to the Existing System A third component of the transmission and distribution facility impact fee is the cost related to extensions to the existing system that are necessary to accommodate future growth. The costs of these extensions were originally calculated based on the pre-2011 Kalispell Growth Policy Update. This impact fee update provides a proportional cost of these improvements based on the improvements that are shown within the 2011 Growth Policy annexation boundary. A summary of these costs and this calculation is shown in Appendix E. The total impact fee related to extensions to the existing system to accommodate future growth is $17,583,247, or $3,531 per ERU. These extension costs are provided for further discussion by the Impact Fee Advisory Committee. These costs may be included in or excluded from the impact fee analysis based on recommendations from the Impact Fee Advisory Committee and as set by City policy. 5-1 6.0 TOTAL WATER IMPACT FEE CALCULATION The total water impact fee is shown below. This calculation includes impact fee components for the source of supply (wells), pumping facilities, storage facilities, and transmission and distribution facilities. Impact Fee (Source of Supply) per ERU: $ 212 Impact Fee (Pumping Facilities) per ERU: $ 239 Impact Fee (Storage Facilities) per ERU: $ 417 Impact Fee (Trans. & Dist.) per ERU: $ 1,577 Administrative Charge (5%) $ 122 TOTAL WATER IMPACT FEE $ 2,567 As shown in Section 5.2, the costs related to extensions are provided for further discussion by the Impact Fee Advisory Committee, These costs may be included in or excluded from the impact fee analysis based on recommendations from the Impact Fee Advisory Committee and as set by City policy. Note on Water Debt Service Credits: Based on current growth projections, the water impact fee will collect sufficient funds to cover the debt service related to growth. For example, the average annual debt service payments for the drinking water loans is $235,259, and the projected annual water impact fee revenue is $516,000. No water debt service credits are necessary in this current impact fee analysis. This impact fee report update meets the requirements of the 2011 Montana Code Annotated 7- 6-16, regarding the calculation of impact fees. This document is provided as a guide for the City of Kalispell to use in determining the appropriate charges for water impact fees. ME LEGEND ANALYSISZONES Original Study Area Boundary East Kalispell Annexation Boundary East Whitefish Rive, North Kalispell Kalispell City Lirrits L South Kalispell West Kalispell FUTURE WATER MAINS West Stillwater Rive, MORRISON J,JjJ MAIERLE, INC. -MA' KAUS WATERAND.%VVER IMPAGI $+E UPDATE MONTANA MARCH 20f 1 ANNEXATION SOUNDARY FIG. 1-6 APPENDIX A City of Kalispell Water System Impact Fees ERU Projection Appendix A City of Kalispell Water System Impact Fees ERU Projection Water Production Peak Average' Day Flow Day Flow Total Additional Year (MGD) (MGD) ERUs ERUs 2005 9.02 3.38 2006 9.93 3.72 2007 10.79 4.04 2008 10.01 3.75 2009 10.51 3.94 2010 9.09 3.40 8,204 2011 9.38 3.51 8,463 2012 9.56 3.58 8,632 169 2013 9.76 3.65 8,804 173 2014 9.95 3.73 8,981 176 2015 10.15 3.80 9,160 180 2016 10.35 3.88 9,343 183 2017 10.56 3.96 9,530 187 2018 10.77 4.03 9,721 191 2019 10.99 4.11 9,915 194 2020 11.21 4.20 10,114 198 2021 11.43 4.28 10,316 202 2022 11.66 4.37 10,522 206 2023 11.89 4.45 10,733 210 2024 12.13 4.54 10,947 215 2025 12.37 4.63 11,166 219 2026 12.62 4.73 11,389 223 2027 12.87 4.82 11,617 228 2028 13.13 4.92 11,850 232 2029 13.39 5.02 12,087 237 2030 13.66 5.12 12,328 242 2031 13.93 5.22 12,575 247 2032 14.21 5.32 12,826 251 2033 14.50 5.43 13,083 257 2034 14.79 5.54 13,345 262 2035 15.08 5.65 13,612 267 Planning Year 2036 15.38 5.76 13,894 272 2037 15.69 5.88 14,161 278 2038 16.01 5.99 14,445 283 2039 16,33 6.11 14,734 289 2040 16.65 6.24 15,028 295 2041 16.99 .6.36 15,329 301 2042 17.32 6.49 15,635 307 2043 17.67 6.62 15,948 313 2044 18.02 6.75 16,267 319 2045 18.39 6.89 16,592 325 2046 18.75 7.02 16,924 332 2047 19.13 7.16 17,263 338 2048 19.51 7.31 17,608 345 2049 19.90 7.45 17,960 352 2050 20.30 7.60 18,319 359 1 2005 through 2011 Actual Water Production, 2012 through 2050 are projected flows based on growth rate by Kai. Planning Department 2 Average Day Water Production with Peaking factor Applied 2.00% Growth Rate from Kalispell Planning Department (Growth Policy Update 05/2612011) 1108 gallons per day per ERU (from 2.5 persons per dwelling unit X 166 gallons pp/day X 2.67 peaking factor) 415 gallons per day per ERU actual without peaking factor (from 2.5 persons per dwelling unit X 166 gallons pp/day) 166 gallons per day per capita without peaking factor 2.67 peaking factor City of Kalispell Water System Impact Fees Source of Supply Appendix B City of Kalispell Water System Impact Fees Source of Supply Original Cost Year Equipment List Cost 2012 2002 Source Water Delineation Study 2002 Noffsinger Springs Chlorine Room Total Existing Source Existing Wells 1913 1956 1966 1979 1982 1956 1997 2007 2009 2011 2011 Total Existing Wells Future Wells $ 94,868 $ 169,894 10,398 18,621 $ 105,266 $ 188,515 Lawrence Park Well (Noffsinger Spring) $ 9,835 $ 18,362 Depot Park Well 38,306 $ 71,517 Armory Well 34,251 $ 63,946 Buffalo Hill Well 94,577 $ 176,574 Buffalo Hill Well to Res 11,042 $ 20,615 Northridge Well Site 10 $ 19 Northside Water Wells (Grandview 1 and 2) 306,028 $ 571,350 Uld School Water Well (Wells 1 and 2) 90,106 $ 110,952 West View Water Project 853,355 $ 966,847 Grosswieller Well Development 92,626 $ 96,563 Silverbrook Well (by Developer) - - $ 1,530,136 $ 2,096,744 2012-2023 Grosswieller Water Supply Total Future Wells Total Wells 2035 ERUs Source of Supply Impact Fee per ERU $ 575,000 $ 594,000 $ 575,000 $ 594,000 $ 2,879,260 13,612 $ 211.53 APPENDIX C City Of Kalispell Water System Impact Fees Pumping Facilities Appendix C City of Kalispell Water System Impact Fees Pumping Plant Original Cost Year Equipment List Cost 2012 Existing Pumping Plant 1913 Lawrence Park Pump & Springhouse $ 112,024 $ 209,147 1966 Lawrence Park Pump # 1 & Motor 4,025 9,646 1964 Lawrence Park Pump # 2 & Motor 3,302 7,913 1959 Lawrence Park Pump # 3 & Motor 7,785 18,657 1971 Lawrence Park Chlorine Injector 1,073 2,572 1965 Lawrence Park Furnace 2,129 5,102 1987 L. Park-2 Cylinder Chlorine Scale 3,820 9,155 1951 Depot Park Pump house 3,000 7,190 1951 Depot Park Pump house Elec. & meter 6,780 16,249 2000 Chlorine Room Addition 7,550 15,192 1951 Depot Pump # 1 4,644 11,130 1959 Buffalo Hill Booster Station 2,150 5,153 1956 Buffalo Hill Booster Motor 4,870 11,671 1965 Armory Well Pump house 2,744 6,576 2000 Chlorine Room Addition 7,839 15,774 1965 Armory Pump/ Motor 7,293 17,478 1965 Armory Well Flow Meter 1,972 4,726 1975 Armory Well Muesco Valve 4,995 11,971 1967 Telemetry System 30,140 72,232 1974 Buffalo Hill Booster Station 22,678 54,349 1999 Buffalo Hill Fuel Tank 8,117 17,313 1986 B.H. Pressure Transducer System 5,330 12,774 1979 B.H. Well Turbine Pump 107,930 258,661 1985 Buffalo Hill Flow meter 1,979 4,743 1990 Remodel Lawrence Park Pump house 37,130 88,984 1991 Buffalo Hill Flow meter 2,467 5,912 1992 Buffalo Hill Telemetry System 60,276 144,455 1999 Telemetry System Upgrade 3,945 8,414 1998 Northside Pump house and Telemetry 501,757 1,134,424 2001 Noffsinger/Chlorine Room 6,249 11,862 2001 2002 Noffsinger Upgrade 4,148 7,874 2002 Standby Power Upgrade 249,924 447,576 2005 Wtr Supply Electrical Safety Syst Upgrade 346,497 521,003 2008 Grandview System Improvements 33,105 41,794 2011 Telemetry System wide upgrades 31,286 33,163 Total Existing Pumping Plant $ 1,640,953 $ 3,250,836 Total ERUs 2035 13,612 Pumping Plant Impact Fee per ERU $ 238.83 UNJOHIRM City of Kalispell Water System Impact Fees Storage Appendix D City of Kalispell Water System Impact Fees Storage Original Cost Year Equipment List Cost 2012 Existing Storage Plant 1958 Buffalo Hill Standpipe $ 48,117 $ 89,834 1914 Reservoir # 1 24,031 $ 44,866 1952 Reservoir # 2 73,691 $ 137,580 1957 Reservoir Covers 97,577 $ 182,175 1965 Buffalo Hill Elevated Storage Tank 111,970 $ 209,046 1982 Buffalo Hill to Reservoir pipe 11,042 $ 20,615 2001 Water Reservoir Roof 420,128 $ 664,077 1914 Reservoir # 1 Land 715 $ 1,335 1935 Noffsinger Land 1,500 $ 2,800 1939 Monteath Land 650 $ 1,214 1952 Reservoir # 2 Land 1 $ 2 2009 Sheepherder's Hill 3,812,072 $ 4,319,060 Total Existing Storage Plant $ 4,601,494 $ 5,672,604 Future Storage Plant beyond 2035 North Kalispell Reservioir$-3 374;189 $--3 907,3 beyond 2035 West Kalispell Reservior 2—3,27-7.� gg — ,795,483 beyond 2035 South Kalispell Reservior 3 3,277,5W �05 qgg Total Future Storage Plant $-9188 $-1-1,498;-31X Total Storage Plant $ 5,672,604 Total ERUs 2035 13,612 Distribution Storage Plant Impact Fee per ERU $ 416.75 1 - See Table 5-16 City of Kalispell Water Facility Plan Update - 2008 2 - See Table 5-18 City of Kalispell Water FacilityPlan Update - 2008 3 - See Table 5-20 City of Kalispell Water FacilityPlan Update - 2008 APPENDIX E City of Kalispell Water System impact Fees Transmission/Distribution Mains Appendix E City of Kalispell Water System Impact Fees Transmission/Distribution Mains Year Equipment List Original Cost Cost 2012 Percent Impact Fee Related Impact Fee Eligible' Existing TransmissionlDist6bution Plant 1967 2200 8 inch $ 13,455 S 25,120 0.0% $ 1911 3180 20 inch 10,838 $ 20,234 36.6% $ 7,403 1911 101 12 inch 251 $ 469 36.6% $ 171 1924 4204 18 inch 30,224 $ 56,428 36.61/. $ 20,644 1924 177616 inch 11,349 $ 21,188 36.6% $ 7,752 1924 195998 inch 50,136 $ 93,603 36.6% $ 34,244 1925 204612 inch 11,016 S 20,567 36.6°% $ 7,524 1925 116936inch 21,874 $ 40,838 0.0% $ - 1928 294 12 inch 1,278 S 2,386 36.6% $ 873 1930 13169 6 inch 21,428 S 40,006 0.0% $ - 1932 1311 12 inch 5,158 S 9,630 36.6% $ 3,523 1935 10853 6 inch 18,462 $ 34,468 0.0% $ - 1938 1988 8 inch 12,786 $ 23.871 36.6% $ 8,733 1938 15678 6 inch 31,309 $ 58,453 0.0% $ - 1948 11019 6 inch 3,667 $ 6,846 0.0% $ 1948 3145 6 inch 11,624 $ 21,702 0.0% $ - 1949 3290 8 inch 15,573 S 29,075 36.6% $ 10,637 1950 1452 6 inch 5,447 S 10,169 0.0% $ - 1952 630 20 inch 10,109 $ 18,873 36.6% $ 6,905 1952 969 18 inch 14,578 $ 27,217 36.6% $ 9,957 1953 125 12 inch 1,476 $ 2,756 36.6% $ 1,008 1955 6274 6 inch 29,235 $ 54,581 0.0% $ - 1956 1266 8 inch 7,983 $ 14,904 36.6% $ 5,453 1958 18846inch 10,102 S 18,860 0.0% $ - 1959 5245 8 inch 36,994 $ 69,067 36.6% $ 25,268 1960 2122 6 inch 12,006 S 22,415 0.0% $ - 1961 109812 inch 17,964 $ 33,539 36.6% $ 12,270 1961 1575 12 inch 26,910 $ 50,241 36.6% $ 18,380 1962 4720 8 inch 35,749 $ 66,743 36.6% $ 24,417 1962 58716 inch 34,739 S 64,857 0.0% $ - 1965 322512 inch 55,101 $ 102,873 36.6°% $ 37,635 1965 2451 6 inch 14,956 $ 27,923 0.0% $ - 1966 544 8 inch 249,924 $ 466,604 36.6% $ 170,704 1967 1060 12 inch 133,249 $ 248,774 0.0% $ - 1967 590 8 inch 158,707 $ 296,304 36.6% $ 108,401 1968 115712 inch 1,192,190 $ 2,225,801 36.6°% $ 814,296 1968 2795 8 inch 80,000 $ 149,359 36.6% $ 54,642 1968 10596inch 133,249 $ 248,774 0.0% $ - 1969 1830 6 inch 18,588 $ 34,704 0.0% $ - 1969 3724 8 inch 24,327 $ 45,418 36.6% $ 16,616 1969 7021 6 inch 45,023 $ 84,057 0.0% $ - 1970 1070 8 inch 18,245 $ 34,063 0.0% $ - 1970 1635 8 inch 13,517 $ 25,236 36.6°% $ 9,232 1970 3728 6 inch 24,079 $ 44,955 0.0% $ - 1971 1866 6 inch 13,266 $ 24,767 0.0% $ - 1972 Airport 8 inch 40,418 $ 75,460 36.6°% $ 27,607 1972 85810 inch 10,385 $ 19,389 36.6°% S 7,093 1972 1070 8 inch 9,419 $ 17,585 36.6% $ 6,433 1972 2122 6 inch 15,212 $ 28,401 0.0% $ - 1973 567416 inch 129,932 $ 242,581 36.6% $ 88,747 1973 2318 14 inch 49,763 $ 92,907 36.6% $ 33,989 1973 176912 inch 36,636 $ 68,399 36.6% $ 25,023 1973 159212 inch 31,899 $ 59,555 36.6% $ 21,788 1973 31610 inch 3,979 $ 7,429 36.6% $ 2,718 1973 217 8 inch 2,064 $ 3,853 36.6% S 1,410 1973 5930 8 inch 54,317 $ 101,409 36.6% $ 37,100 1973 50 8 inch 457 $ 853 36.6% $ 312 1973 2589 6 inch 18,527 $ 34,590 0.0% $ - 1973 743 6 inch 5,523 $ 10,311 0.0% $ 1973 178 6inch 1,273 $ 2,377 0.0°% $ 1974 3097 12 inch 78,563 $ 146,676 0.0% $ 1975 4334 6 inch 48,188 $ 89,966 0.0°% $ - 1976 3097 12 inch 103,559 $ 193,343 36.6% $ 70,733 1976 41412 inch 410 $ 765 36.6% $ 280 1976 2196 12 inch 10,882 $ 20,317 36.6% S 7,433 1976 36828inch 55,845 $ 104,262 36.6% $ 38,144 1976 845 6 inch 10,012 $ 18,692 0.0% $ - 1977 922 6 inch 12,400 $ 23,151 0.0% $ - 1981 Idaho Street Main 79,872 $ 149,120 36.6% $ 54,555 1982 SID 328 24,646 $ 46,014 0.0% $ - 1983 Main Street 150,540 $ 281,056 36.6% $ 102,823 1983 6th Avenue Water Main 4,216 $ 7,871 36.6'/0 $ 2,880 1983 SID 326 4,511 $ 8,422 0.0% $ - 1983 370 8 inch 11,101 $ 20,725 36.61/. $ 7,582 1983 230 8 inch 6,873 $ 12,832 36.6% $ 4,694 1983 12512 inch 1,475 $ 2,754 36.61/6 $ 1,007 1984 SID 326 Kenway Addition 3,781 $ 7,059 0.0% $ - 1984 859 6 inch 19,566 $ 36,529 0.0% $ 1984 722 8 inch 32,507 $ 60,690 0.0% $ 1984 13756inch 14,722 $ 27,486 0.0% $ - 1984 220 12 inch 1,980 $ 3,697 36.6% $ 1,352 1984 2350 12 inch 43,968 $ 82,088 16.2% $ 13,304 1984 650 12 inch 6,455 $ 12,051 0.0% $ - 1984 240 12 inch 8,094 $ 15,111 36.6% $ 5,528 1984 360 6 inch 5,520 $ 10,306 0.0% $ - 1984 2520 6 inch 17,317 $ 32,331 0.0% $ - 1984 JD 510B Backhoe 43,350 $ 80,934 36.6% $ 29,609 1985 3050 6 inch 37.708 $ 70,400 0.0% $ - 1985 10808inch 32,400 $ 60,490 36.6% $ 22,130 1985 385 8 inch 11,550 $ 21,564 36.6% $ 7,889 1985 400 8 inch 12,000 $ 22,404 36.6% $ 8,196 1985 1250 8 inch 37,500 $ 70,012 36.6% $ 25,613 1985 320 8 inch 9,600 $ 17,923 36.6% $ 6,557 1985 360 8 inch 10,800 $ 20,163 36.6% $ 7,377 1986 2270 8 inch 99,300 $ 185,392 8.8% $ 16,278 1986 610 8 inch 15,300 $ 28,565 36.6% $ 10,450 1987 5197 12 inch 302,513 $ 564,787 23.5% $ 132,653 1987 157 8 inch 9,486 $ 17,710 36.6% $ 6,479 1987 211 6inch 15,121 $ 28.231 0.0% $ - 1987 400 8 inch 17,158 $ 32,034 36.6% $ 11,719 1987 300 8 inch 9,008 $ 16,818 36.6% $ 6,153 1987 457 8 inch 15,084 $ 28,162 3.3% $ 927 1987 272 8 inch 9,881 $ 18,448 18.3% $ 3,374 1987 600 8 inch 18,079 $ 33,753 36.6% $ 12,348 1987 1540 12 inch 70,434 $ 131,499 36.6% $ 48,108 1987 145412 inch 51,759 $ 96,633 36.6% $ 35,353 1987 396 12 inch 17,679 $ 33,006 36.6% $ 12,075 1988 599 8 inch 18,145 $ 33,876 36.6% $ 12,393 1988 165712 inch 68,322 $ 127,556 36.6% $ 46,666 1989 SW Kai Project 257,827 $ 481,359 25.6% $ 123,272 1989 66012 inch 24,318 $ 45,401 36.6% $ 16,610 1989 300 8 inch 8,516 $ 15,899 36.6`yo $ 5,817 1990 2701 12 inch 162,689 $ 303,738 36.6% $ 111,121 1991 2619 12 inch 197,416 $ 368,573 36.6% $ 134,840 1991 400 6 inch 16,000 $ 29,872 0.0% $ - 1991 430 8 inch 18,700 $ 34,913 36.6% $ 12,773 1991 700 8 inch 30,120 $ 56,234 36.6% $ 20,573 1991 366 8 inch 35,605 $ 66,474 27.8% $ 18,483 1992 Trav-L-Vac 80 13,652 $ 25,488 36.6% $ 9,325 1992 713 8 inch 21,648 $ 40,417 36.6% $ 14,786 1992 6th St W 66,480 $ 124,117 36.6% $ 45,408 1992 14th St and 5th Ave 65,709 $ 122,678 36.6% $ 44,881 1993 Cat 426B Backhoe 46,932 $ 87,621 36.6% $ 32,056 1993 Windward Upsize 15,000 $ 28,005 36.6% $ 10,245 1994 LN-8000 Tandem 58,108 $ 108,487 36.6% $ 39,689 1994 Greenbrier Upsize 15,903 $ 29,691 36.6% $ 10,862 1994 Kelly Road Upsize 14,023 $ 26,181 36.6% $ 9,578 1994 81h Ave and Cal St 34,605 $ 64,607 36.6% $ 23,636 1995 Hydraulic shoring system 6,700 $ 12,509 36.6% $ 4,576 1995 Lawrence Park 36,525 $ 68,192 36.6% $ 24,948 1995 Utah Street 19,521 $ 36,445 36.6% $ 13,333 1995 Ave of Arts/2nd Ave 24,923 $ 46,531 36.6% $ 17,023 1996 E Arizona 15,750 $ 29,405 36.6% $ 10,758 1997 Tapping Machine 12,320 $ 23,001 36.6% $ 8,415 1997 Woodland 169,225 $ 315,941 36.6% $ 115,585 1997 Liberty/Two Mile 314,628 S 587,406 36.6% $ 214,899 1997 14th St 28,798 $ 53,765 36.6% $ 19,670 1997 West Wyoming 88,130 $ 164,537 36.61/o $ 60,195 1997 Backhoe Jackhammer 12,000 $ 22,404 36.6% $ 8,196 1998 Buffalo Com 145,201 $ 260,037 36.6% $ 95,133 1998 Telemetry Upgrade 8,438 $ 15,111 36.6% $ 5,528 1999 SthAve NW Water 91,657 $ 157,454 36.6% S 57,604 2000 John Deere Loader 34,490 $ 56,834 36.6% S 20,792 2001 Cat 430D Backhoe 58,361 $ 92,249 36.61/6 $ 33,749 2001 MN SUCntr-Sunst 612,454 $ 9W078 36.6% S 354,165 2001 Willow Glen and Woodland 17,525 $ 27,701 36.6% $ 10,134 2002 Meter Test Bench 12,737 $ 19,312 36.6% S 7,065 2002 Meridian Rd to 3 Mile Drive 158,707 $ 240,634 7.3% S 17,607 2002 Facility Plan 93,000 $ 141,008 36.6% $ 51,587 2004 Northern Lights Blvd -Water Main installatior 281,859 $ 393,225 36.6% S 143,859 2004 Washington St. btwn 7th & 8th 26,585 $ 37,089 36.6% S 13,569 2005 Ingersoll Rand Roller 13,572 $ 18,163 36.6°/n $ 6,645 2005 Meters - New Services 205,703 $ 275,279 0.0% S - 2005 US Highway 93 South Utilities 1,904,905 $ 2,649,211 33.3% $ 847,798 2006 West View Upsize 12,407 $ 15,927 36.6% S 5,827 2007 Sterling Tandem 94,387 $ 116,223 36.61% S 42,520 2007 Meridian Road Water Main 203,561 $ 250,654 36.6% S 91,700 2007 Westwood Upsize 28,923 $ 35,614 36.6% $ 13,029 2007 Lone Pine Meadows Upsize 58,275 $ 71,757 36.6% S 26,252 2008 Spring Prairie Upsize 18,187 $ 21,482 36.6% $ 7,859 2008 Holiday Inn Upsize 6,072 $ 7,172 36.6% S 2,624 2008 Gardner Extension Upsize 32,631 $ 38,542 36.6% $ 14,100 2008 Reserve Loop Extension 15,592 $ 18,416 36.6% $ 6,738 2008 Hutton Ranch Phase 1 Upsize 12,500 $ 14,764 36.6% S 5,401 2008 Buffalo Hills Water Main Replacement Proje 100,275 $ 118,440 36.6% S 43,330 2009 Bobcat 52,881 $ 59,914 7.3% $ 4,384 2009 Trail King Tilt Deck Trailer 20,895 $ 23,674 36.6% $ 8,661 2009 Upper Zone Production 853,355 $ 966,847 36.6% $ 353,716 2010 93 Bypass 100,724 $ 109,467 36.6% $ 40,048 2010 1 st Ave E & Idaho St - 140' 12 inch 32,385 $ 35,196 36.61% $ 12,876 2010 Parkway Dr - 360' 8 inch 69,818 $ 75.879 36.6% $ 27.760 2011 11 St Et7th Ave E to Woodland -1,016 8 inc 167,942 $ 175,080 36.6% $ 64,052 2011 Cat Backhoe 106.232 $ 110,747 36.6% $ 40,516 2011 Airport Rd & Merganser - 220' 8 inch 7,651 $ 7,976 36.6% $ 2,918 2011 Owl Corporation Settlement 313,467 $ 313,467 100.0% $ 313,467 Total Existing Transmission and Distribution Plant $ 12,592,251 $ 20,196,005 $ 6,416,138 New ERUs 2012 to 2035 4,980 Existing Transmission/Distribution Plant Impact Fee per ERU $ 1,288.46 Future Transmission/Distribution Plant - CiP Projects 2 W-EX-8 Conway Drive and Highway 93 Loop $ 191,558 $ 207,417 100.0% $ 207,417 W-EX-119 Misc Contract Main Upsize 875,000 875,000 100.0% $ 875,000 W-EX-123 Meters - New Services 356,186 356,186 100.0% $ 356,186 Total Future TransmissionlDistribution Plant- CIP Projects $ 1,422,744 $ 1,438,603 $ 1,438,603 New ERUs 2012 to 2035 3 4,980 Future Transmission/Distribution Plant CIP Projects Impact Fee per ERU $ 288.89 Future TransmissionlDistribution Plant- Extension Projects 4 2011 Annexaton Boundary 2012-2035 East Whitefish River Extensions 13,544,300 15,684,871 0% - 2012-2035 North Kalispell Extensions 23,367,000 27,059,973 32% 8,639,131 2012-2035 West Stillwater River Extensions 11,519,800 13,340,415 15% 1,988,483 2012-2035 West Kalispell Extensions 40,114,200 46,453,938 7% 3,435,837 2012-2035 East Kalispell Extensions 1,392,000 1,611,995 60% 970,335 2012-2035 South Kalispell Extensions 6,455,100 7,475,278 34% 2,549,461 Total Future TransmissionlDistribution Plant Extension Projects $ 96,392,400 $ 111,626,470 $ 17,583,247 New ERUs 2012 to 2035 4,980 Future TransmissioniDistribution Plant impact Fee per ERU $ 3,530.99 Total Transmission/Distribution Plant Impact Fee per ERU $ 5,108.35 1- Allocation for existing projects based on new ERUs, from 2012 to 2035 divided by total ERUs in 2035. Some plant is excluded or reduced based on the amount from developer contributions and or the amount which was for replacement. 2 - See City of Kalispell Water Capital Improvement Plan (Appendix F) for project details 3- Assumes that CIP projects provide service capacity through planning horizon. 4 - See Chapter 5 of the Water Facility Plan Update - 2008 and Appendix F of this report Projects are adjused to 2012 dollars from the 2007 plan values based on changes in the ENR Construction Cost index. APPENDIX f 2012/2013 Water Capital Improvement Plan �' ��r m CISppl � � �4+ i AOV apQQ pppp 88 � � O �� m �i �� f u A w � M m � t�]] 1cV O c� v r O�l• e� CI d eC 1aC Sri o Vy1j a � o mm ELL a M In •nNNN N H �• MNNpW Np N NNN NN N M f? O S5��QQQ pN O e ar` N N N » M CG IA 888 � O �S 000 499 ID a W N y y p W N N N N � N fJ N 9 Y 888888 O �, K (�lpp yGy�l p�p p�p�I y�y E� W N•n . Np N N O N 88». �a•�l S pO G E� w W N 8 8 588 8 88$88 8$$8 V' � O 10 abl'1 m �j �Ol V NY N1'1 Off � N E y M LL W {f � b 8 E H to o •� c v R W C 3 $ < F < 8 AS U3 ¢¢ J Is a LL { fi m _ wmm x 8 �<3 al n b o J j Z16, 83;� Am V 3gg zyL ;3� �3y y�<N �N3b.bb 3N3y= c 0 - ��ca�-oozazxo��x� v c a xaaxoazee--aaaoc��xrc,xo nrz,r-���sr�rcarca: LL E.p f NIgOn"� X xx w W xx W Yi W LL[ W wA• NNIV x W W NN W N'C4i W t:l W W t'1 T W W Y W Oils LL W 01' W ! ^ p�p[rA W a J Ji J 'Y A W W W W Nln W W O NA,I�N'�O W T W 11 W W W W If11C W O W W n`#i333333333333i33333;333��i3.33333�� �333��333� 33 APPENDIX G 2011 Montana Code Annotated 7-6-16 7-6-J601, Definitions. Pteijous Section MCA CoftrAs Pad Contents Seard, Help Next Section 7-6-1601. Definitions. As used in this part, the following definitions apply: (1) (a) "Capital improvements" means improvements, land, and equipment with a useful life of 10 years or more that increase or improve the service capacity of a public facility. (b) The term does not include consumable supplies. (2) "Connection charge" means the actual cost of connecting a property to a public utility system and is limited to the labor,, materials, and overhead involved in making connections and installing meters. (3) "Development" means construction, renovation, or installation of a building or structure, a change in use of a building or structure, or a change in the use of land when the construction, installation, or other action creates additional demand for public facilities- (4) "Governmental entity" means a county, city, town,, or consolidated government. (5) (a) "Impact fee" means any charge imposed upon development by a governmental entity as part of the development approval process to fund the additional service capacity required by the development from which it is collected. An impact fee may include a fee for the administration of the impact fee not to exceed 5% of the total impact fee collected. (b) The term does not include: (i) a charge or fee to pay for administration, plan review, or inspection costs associated with a permit required for development; (ii) a connection charge-, (iii) any other fee authorized by law, including but not limited to user fees, special improvement district assessments, fees authorized under Title 7 for county, municipal, a nd consolidated government sewer and water districts and systems, and costs of ongoing maintenance; or (iv) onsite or offsite improvements necessary for new development to meet the safety, level of service, and other minimuin development standards that have been adopted by the governmental, entity. (6) "Proportionate share," means that portion of the cost of capital system improvements that reasonably relates to the service demands and needs of the project. A proportionate share must take into account the limitations provided i.n.7-6-1602. (7) "Public -facilities" ineans: (a) a water supply production, treatment, storage, or distribution -facility; (b) a wastewater collection, treatment, or disposal facility, (c) a transportation -facility, including roads, streets, bridges, rights -of -way, traffic signals, and landscaping; d) a storm water collection, retention, detention, treatment, or disposal facility or a flood control facility. (e) a police, emergency medical rescue, or fire protection facility,; and (f) other facilities for which documentation is prepared as provided in 7-6-1602 that have btti)://data.opi.nit.govfbills/iiica/77-6-1601.htm -3/210-013 7-6-1601. Definitions. Page 2 of 2 been approved as part of an impact fee ordinance or resolution by: (i) a two-thirds majority of the governing body of an incorporated city, town, or consolidated local government; or (ii) a unanimous vote of the board of county commissioners of a county government. History. En. Sec. 1, Ch. 299, L. 2005. Provided by Montana Legisiatave Services http:Hdata.opi.mt.gov/bills/mcan/6/7-6-1601.htm 3/21/2013 7-6-1602. Calculation of impact fees -- documentation required -- ordinance or re.. Page I of 2 ��re�ous Se.--fion MCACooftj$ Pivt Contents Search Help Next Section 7-6-1602. Calculation of i-t.npact fees — documentation required -- ordinance or resolution -- requirements for impact fees. (1) For each public facility for which an impact fee is imposed, the governmental entity shall prepare and approve a service area report. (2) The service area report is a written analysis that must: (a) describe existing conditions of the facility; (b) establish level -of -service standards; (c) forecast -future additional needs for service for a defined period of time; (d) identify capital improvements necessary to meet future needs for service; (e) identify those capital improvements needed for continued operation and maintenance of the facility; (f) make a determination as to whether one service area or more than one service area is ,necessary to establish a correlation between impact -fees and benefits; (g) make a determination as to whether one sery ice area or more than one service area for transportation facilities is needed to establish a correlation between impact fees and benefits; (h) establish the methodology and time period over which the governmental entity will assign the proportionate share of capital costs for expansion of the facility to provide service to new development within each service -area; (i) establish the methodology that the governmental entity will use to exclude operations and maintenance costs and correction of existing deficiencies from the irn pact fee,-, (j) establish the amount of the impact fee that will be imposed for each unit of increased service demand; and (k) have a component of the budget of the governmental entity that: (i) schedules construction of public facility capital improvements to serve projected growth; (ii) projects costs of the capital improvements; (iii) allocates collected impact fees for construction of the capital improvements; and (iv) covers at least a 5-year period and is reviewed and updated at least every 2 years. (3) The service area report is a written analysis that must contain documentation of sources and methodology used for purposes of subsection (12) and must document how each impact. fee meets the requirements of subsection (7). (4) The service area report that supports adoption and calculation of an impact fee must be available to the public upon request, (5) The amount of each impact fiee imposed must be based upon the actual cost of public facility expansion or improvements or reasonable estimates of the cost to be incurred by the governmental entity as atesult of new development. The calculation of each impact fee must be in accordance with generally accepted accounting principles. (6) The ordinance or resolution adopting the impact fee must include a time schedule for periodically updating the documentation required under subsection (2). (7) An impact fee must meet the following requirements: bti-p://data.opi,m,t.00v/bilis/mca/7/6/-/-6-160?.lit,m 3/21/2013 7-6-1602. Calculation of impact fees -- documentation required -- ordinance or re... Page 2 of 2 (a) The amount of the impact fee must be reasonably related to and reasonably attributable to the development's share of the cost of infrastructure improvements made necessary by the new development. (b) The impact fees imposed may not exceed a proportionate share of the costs incurred or to be incurred by the governmental entity in accommodating the development. The following factors must be considered in determining a proportionate share of public facilities capital improvements costs: (i) the need for public facilities capital improvements required to serve new development; and (h) consideration of payments for system improvements reasonably anticipated to be made by or as a result of the development in the form of user fees, debt service payments, taxes, and other available sources of funding the system improvements. (c) Costs for correction of existing deficiencies in a public facility may not be included in the impact fee. (d) New development may not be held to a higher level of service than existing users unless there is a mechanism in place for the existing users to make improvements to the existing system to match the higher level of service. (e) Impact fees may not include expenses for operations and maintenance of the facility. History: En. Sec. 2, Ch. 299, L. 2005; amd. Sec. 1, Ch. 358, L. 2009. Provided by Manhm? Legislative Services http://data.opi.mt.gov/bills/mca/7/6/7-6-1602.htm 3/21/2013 7-6-1603. Collection, and expenditure. of impact fees -- refunds or credits -- mech... Page I of 2. Pre4ous Section MCA Contep,,$ Part C40ents SeaO Help Next Section 7-6-1603. Collection and expenditure of impact fees — refunds or credits — mechanism for appeal required. (1) The collection and expenditure of impact fees must comply with this part. The collection and expenditure of impact fees must be reasonably related to the benefits accruing to the development paying the impact -R�es. The ordinance or resolution adopted by the governmental entity must include the following requirements: (a) Upon collection, impact fees must be deposited in a special proprietary fbnd', which must be invested with all interest accruing to the ffind. (b) A governmental entity may impose impact fees on behalf of local districts. (c) If the impact fees are not collected or spent in accordance with the impact fee ordinance or resolution or in accordance with 7-6-1602, any impact fees that were collected must be refunded to the person who owned the property at the time that the refund was due. (2) All impact fees imposed pursuant to the authority granted in this part must be paid no earlier than the date of issuance of a building permit if a building permit is required for the development or no earlier than the time of wastewater or water service connection or well or septic permitting. (3) A governmental entity may recoup costs of excess capacity in existing capital facilities, when the excess capacity has been provided in anticipation of the needs of new development, by requiring impact fees for that portion of the facilities constructed for -future users. The need to recoup costs -for excess capacity must have been documented Pursuant to 7-6-1602 in a manner that demonstrates the need for the excess capacity. This part does not prevent a governmental entity from continuing to assess an impact fee that. recoups costs for excess capacity in an existing facility. The impact fees imposed to recoup the costs to provide the excess capacity must be based onthe governmental entity's actual cost of acquiring, constructing, or upgrading the facility and must be no more than a proportionate share of the costs to provide the excess capacity. (4) Governmental entities may accept the dedication of land or the construction of public facilities in lieu of payment of impact fees if: (a) the need for the dedication or construction is clearly documented pursuant to 7-6-1602; (b) the land proposed for dedication for the public facilities to be constructed is determined to be appropriate for the proposed use by the govemmentalentity; (c) formulas or procedures for determining the worth of proposed dedications or constructions are established as part of the impact fee ordinance or resolution; and (d) a means to establish credits against future impact -fee revenue has been created as part of the adopting ordinance or resolution if the dedication of land or construction of public facilities is of worth it) excess of the impact fee due from an individual development. (5) Impact fees may not be imposed for remodeling, rehabilitation, or other improvements to an existing structure or for rebuilding a damaged structure unless there is an increase in units that increase service demand as described in 7-6-16-02(2)0), If impact fees are imposed for litti)://data.opi.nit.gov,lbills/mea/7/6/7-6-1603.htm 3/2112013 7-6-1603. Collection and expenditure of impact fees -- refunds or credits -- inech... Doge 2of2 remodeling, rehabilitation, or other improvements to an existing structure or use, only the net increase between the old and new demand may be imposed. (6) This part does not prevent a governmental entity from granting refbnds or credits: (a) that it considers appropriate and that are consistent with the provisions of 7-6-1602 and this chapter; or (b) in accordance with a voluntary agreement, consistent with the provisions of 7-6-1602 and this chapter, between the govertirnental entity and the individual or entity being assessed the impact -fees. (7) Ali impact fee represents a fee for service payable by all users creating additional demand on the facility. (8) An impact fee ordinance or resolution must include a mechanism where -by a person charged an impact fee may appeal the charge if the person believes an error has been made. History: En. Sec. 3, Ch. 299L. 2005; amd. Sec. 2, Ch. 358, L. 2009. PWided,by NwAma LogiSINW& SeNket fittp-.//(Iata.opi.nit.govibills/inca/7/6i'7-6-16OL' Uitin 3/2 1 /2013) 7-6-1604, Impact fee advisory committee. Pt--4ous SW, its MCA ConterAs Park Contents Swrh Holp Next Section 7-6-1604. Impact fee advisory committee. (1) A governi-nental entity that intends to propose an impact fee ordinance or resolution shall establish an impact fee advisory committee. (2) An impact fee advisory committee must 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, (3) The impact fee advisory committee shall serve in an advisory capacity to the governing body of the governmental entity. History: En, Sec. 4, Ch. 299, L. 2005. Pwfi*d ty ftgapa LegishOke Serkes littp:Aldata.opi,mt.gov/bills/iiica/`//6/7-6-1604.litm. 3/21/20 13 )