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Decision on Tri-City Planning Office MembershipFeb-14-02 02:03P P.01 P.O. BOX 158 • Whitcrlsh, MT 59937 • (406) 863.2400 a Pam (406) 863-2419 FAX COVER SHEET TO: (2hri s �"kL.4�lsk�I _. FA.xr: IS-9- I r15 9 FROM: CA- r �.M 6L r k S DATE: c — 14 J ,�--- SliBJECT: �^,-� a R PAGES: including this cover sheet NOTES: Feb-- 14-02 02: 03P COMMUNITY PLANNING AND DEVELOPMENT (Yellow). a) Decision an Tri-City Planning Office membership. On Monday, January 28, 2002, a joint meeting of the Columbia Falls, Kalispell and Whitefish City Councils was held at Kalispell City Hall. At the meeting, the three city councils received a report from Tri-City Planning Office Director Tom Jentz concerning an expected revenue shortfall for the Planning Office for the current fiscal year, which ends June 30, 2002. Mr. Jentz also reported on the need for higher membership fees for each of the three member cities for the next fiscal year, FY02-03, and beyond. It was understood at the meeting that each City Council would evaluate the information presented and render a decision prior to March 1, 2002 on their City's intent related to Planning Office membership for FY02-03, which begins on July 1, 2002. The current year budget for the Planning Office was predicated on the receipt of accumulated cash reserves from Flathead County subsequent to their (the county's) withdrawal from the Countywide Administrative Board Agreement on July 1, 2001. A belief that these funds would be relinquished during the current fiscal year allowed the Tri-City Planning Office Board to erroneously offer membership rates that were lower than what would otherwise be required. Due to the County's continued �= unwillingness to relinquish the cash balance and, therefore, the prospect of a judicial process necessary to resolve this matter, each member City will be required to offset, on a pro-rata basis, the lack of the cash reserves. Estimates presented by Mr. Jentz indicate that the City of Whitefish will need to contribute an additional $11,907 over and above the $59,020 membership fee previously paid for the current fiscal year. As a result, the total adjusted fee for the current fiscal year will be $70,927. For the next fiscal year, FY02-03, Mr. Jentz estimates the City's contribution will increase an additional $10,987, for a total annual fee of $81,914. Membership fees are expected to somewhat stabilize thereafter. In exchange for the $81,914 membership fee, the City receives development application processing services and long-range planning services through a five person professional staff. In a collective sense, the City's continued membership would also help preserve a framework for a future return to regional planning through an eventual renewal of County participation in joint regional planning. In assessing the City's future membership in the Tri-City Planning Office, it is important to understand the alternatives available to the City prior to any decision to withdraw its membership. Given the ongoing pace of development in the Whitefish area and the continuing need to accomplish Feb-14-02 02:03P P_03 several long-range planning projects, it would be imperative for the City to create a minimum three -person in-house planning office, should the City elect to withdraw from the Tri-City agreement. I would project that such an office would need a Departmental Director/Lead Planner, a Staff Planner and an Office Assistant. Cumulative salaries and benefits for such a staff would be an estimated $125,000 annually. In addition, a new department would also bring administrative operating and overhead costs in the neighborhood of $25,000. Given the limitation of space at City Hall, it is uncertain how office sppce would be provided for a new in-house planning department. As such, an additional capital outlay or an ongoing rent expense may also need to be considered with this option. At a minimum, the City should expect an overall cost (without consideration for office space needs) of about $150,000 annually. This expense would be offset, to some extent, by planning fees. Given the City's current rate of development (as available through the Tri-City Planning Office) City planning fees would be about $33,000 annually. Please keep in mind that the City is currently in a phase of high development activity. A curtailment of this activity would also curtail fee collections. However, assuming the continued high rate of fee collections as described above, the City could expect to fund the difference of $117,000 (i.e. $150,000 - $33,000). It has been suggested that an opportunity to provide planning services to Columbia Falls might exist should the Tri-City Planning Office be disbanded. If a relationship was pursued with Columbia Falls, the City may benefit from the approximate $28,400 planning fee Columbia Falls is projected to pay to the Tri-City Office next fiscal year. This could reduce the City's $117,000 tab (see above paragraph) to about $88,600. This would mean the City would still be paying more than the $81,914 membership fee proposed by the Tri-City Planning Office for next fiscal year. The unknown factor in this arrangement is whether the City would need to hire an additional full-time or part-time planner to deal with Columbia Falls applications and planning projects. If additional staff would be needed the expense to the City would become greater. If additional staff was not provided to service Columbia Falls, it is logical that provision of this service would necessitate a reduction in service to the City of Whitefish. RECOMMENDATION: Based on the above analysis, l respectfully recommend that the City Council continue the City's membership in the Tri-City Planning Office. This is a legislative matter. COMMUNICATIONS FROM CITY ATTORNEY (Ivory). a) Ordinance No. ; Adopting Building and Technical Codes.