RFP Missoula Annexation Policy 2026

CITY OF MISSOULA
Fiscal Impact Analysis and Policy Guidance
to Support Annexation Policy Update
REQUEST FOR PROPOSALS
Prepared by:
Community Planning, Development & Innovation
Address: 435 Ryman Street
Missoula, Montana 59802
Issued: May 9, 2026
Submittal Information:
Deadline: June 8, 2026 at 4:00 p.m., Mountain Daylight Time
Send questions and submittals to: Emily Gluckin
Email: glucking@ci.missoula.mt.us
Phone: 552-6621
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Contents
Introduction ................................................................................................................. 3
Community Background ............................................................................................ 3
Purpose and Need ..................................................................................................... 4
Scope of Services ......................................................................................................... 7
Project Description: ................................................................................................... 7
Final Project Deliverables ........................................................................................... 8
Proposal Framework .................................................................................................. 9
Project Work Plan Elements: ...................................................................................... 9
Budget and Timeline ................................................................................................ 10
Budget ................................................................................................................ 10
Timeline .............................................................................................................. 10
Consultant and Staff Roles ....................................................................................... 10
Consultant Role ................................................................................................... 11
City Staff Role ...................................................................................................... 11
Submission Requirements ........................................................................................... 11
Proposal Content: ................................................................................................... 11
Proposal Format: ..................................................................................................... 12
Proposal Submission: .............................................................................................. 12
Consultant Selection and RFP Schedule ....................................................................... 13
Proposal Selection .................................................................................................. 13
Review Criteria ........................................................................................................ 13
Selection Time Frame: ............................................................................................. 14
Terms and Conditions ................................................................................................. 14
Statement of Noncommitment ............................................................................. 14
RFP Authority ....................................................................................................... 14
Acceptance of Terms ............................................................................................ 14
Professional Services Agreement .......................................................................... 15
Notice to Consultant ............................................................................................ 15
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Attachments: .............................................................................................................. 16
Attachment A - Related Policies, Plans, Reports and Resolutions ............................ 16
Attachment B - Standard Missoula City Contract Template ..................................... 16
Introduction
The City of Missoula is seeking the services of a consulting team with experience in land
use, development, and planning, and expertise related to annexation and fiscal analysis, to
support the update of the City's existing annexation policy. Guidance for an updated
annexation policy should be based on recently adopted city policy and informed by fiscal
analysis that considers a more accurate estimate of public revenues and expenditures
associated with expansion of the City's jurisdiction.
To inform this work, the consultant team will familiarize themselves with and base their
work on City policy, including recent efforts to update the City's Land Use Plan (LUP), as
well as the Parks, Recreation, Open Space and Trails (PROST) plan, Long Range
Transportation Plan (LRTP), and Water and Wastewater Facilities Plans along with the Utility
Service Area Boundary, all of which have been recently developed in conjunction with an
entirely new Unified Development Code (UDC) and associated Standards and
Specifications manual (COMSSM). The City is currently engaged in a sub-area planning
effort called the Reserve to Scott Street Plan Update that has bearing on this project as
well. Data inputs for the fiscal analysis should include City funded services including, but
not limited to, safety and emergency services, surface and utility infrastructure
maintenance, and parks, recreation and open space capacities, as well as associated
regional impacts.
The consultant team will partner with City staff in order to produce a successful project
outcome involving the overall development of a new annexation policy. Consultants and
staff will co-manage the project, with consultants leading elements including the overall
project timeline, the fiscal impacts analysis, and an update of the annexation policy map.
Staff will lead external public engagement, policy language and criteria development, and
manage public processes around eventual adoption of the updated policy, all with support
from the consultants on supporting guidance and materials.
Community Background
Missoula, Montana is nestled in the heart of the northern Rocky Mountains, and lies at the
confluence of the Clark Fork, Blackfoot, and Bitterroot Rivers. Missoula's built environment
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is shaped, and constrained, by a mountain valley landscape. Additional constraints further
impact where development is desirable or appropriate, including steep slopes, open
space, wildlife habitat, wildland-urban interface concerns, floodplain, an airport hazard
area, and high groundwater in some areas. The space for growth into easily available
greenfield sites is diminishing quickly. Like many places, Missoula is challenged by
contemporary issues, including high housing costs and environmental risk due to climate
change. As one of its central themes towards addressing these challenges, the City uses a
'Focus Inward' approach to growth that prioritizes infill and efficient use of services within
its greater urban area.
From a growth standpoint, Missoula has been somewhat resilient to outside economic
forces over time. Since its founding, the City has seen several up and down economic
cycles but overall has maintained a steady growth rate of about one and a half percent per
year. As of the most recent Land Use Plan update, the current population within the Land
Use Plan area is approximately 93,000 people, and projecting a generally consistent growth
rate of 1.39%, is expected to reach a population of up to around128,000 for the larger Land
Use Plan area by 2045, with the City estimated to grow to 115,950 within that same time
period.
The City has just concluded a multi-year effort generally referred to as the Our Missoula
Project to update its Land Use Plan and comprehensively reform its development codes
which resulted in the creation of an entirely new Unified Development Code. During that
same time, the City also conducted several other plan updates, and the State of Montana
adopted the Montana Land Use Planning Act (MCA 76-25) to update the State's entire legal
framework for land use. With new City policy and implementing regulations in place, and
operating under a new set of land use laws, it is time for the City to update its annexation
policy, and in a way that is enabled by a more comprehensive understanding of the City's
fiscal health, to continue on a path towards modernizing its approach to growth
management in the urban area.
Purpose and Need
The City's current annexation policy, first adopted in 2019, provides comprehensive
guidance for annexing areas within and around the City of Missoula. This policy is
supported by Missoula's Utilities Service Area (USA), which is an area that delineates
where the City agrees to serve with City owned water and wastewater utilities. The USA
boundary is largely consistent with the Land Use Planning boundary. A key aspect of the
policy is its focus on promoting efficient resource use, which is critical for sustainable
growth and a central tenet of the City's 'Focus Inward' growth strategy. Priority for
annexation is currently given to areas that contribute to logical growth patterns, are served
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by adequate infrastructure and proximity to amenities and services, and possess favorable
conditions or reflect existing agreements. This concept is a key factor in how the City
evaluates petitions for annexation, although it is complicated by the fact that some City
utilities (sewer and water) extend well outside of the City limits. Typically, the City requires
development that occurs outside of city limits but would rely on municipal utilities to waive
their rights to protest annexation into the City, though this approach is one that will be re-
evaluated as part of this update.
The current policy already plays a crucial role in managing growth effectively, aiming to
prevent issues such as leapfrog development and inadequate municipal infrastructure,
minimize development on environmentally constrained lands, ensure public health and
safety, and foster walkable urban neighborhoods and community connectivity. It
emphasizes equitable service provision and cost-effective annexations, and these goals
will likely not change as a result of this effort. Although Montana land use law provides
several ways for cities to annex property, the City of Missoula typically uses Title 7 Part 46 of
Montana Code Annotated, which provides rules for annexation by petition. Missoula
officials anticipate this will remain the most common method of annexation, although we
may use other methods as the situation warrants or are suggested by consultants.
The policy explicitly advises against the annexation and development of environmentally
sensitive lands, though there is room for clarification and improvement in the update. The
policy incorporates an associated map of the urban area that specifies which areas tend to
meet annexation policy guidelines (Area A) versus which areas do not (Area B). The policy
allows Missoula City Council the authority to waive certain policy principles when
necessary, and the Council has the authority to and typically requires petitioners (i.e.,
developers) to extend or upgrade municipal facilities needed to serve the projected
development up to city standards. The City does this through conditions of annexation.
Typical conditions include extension or upsizing of sewer and water facilities, onsite
stormwater retention, and street and sidewalk upgrades along the property frontage.
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Figure 1: Annexation Policy Map
The recently adopted Land Use Plan includes policy directives to update the Annexation
Policy to align with the new Land Use Plan and Place Types Map, as well as to conduct
infrastructure evaluation and infrastructure planning for areas that tend to meet annexation
policy guidelines. Through the recent completion of the Our Missoula project and related
policy shifts and refinements, along with the provision of new State Law requirements, it is
timely and necessary to reflect those recent policy choices in an updated annexation
policy.
The updated policy should involve evaluation and consideration of fiscal elements related
to City services, infrastructure and operations. The City's definition of infrastructure is
broader than just utilities such as sewer and water but also includes surface infrastructure
such as motorized and non-motorized streets and trails, as well as walkable proximity to
housing and/or commercial uses or employment opportunities. Since adoption of the
annexation policy in 2019, the City has regularly annexed properties following guidance
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provided in the policy. However, an element lacking in the City's analysis of properties to
annex is a way to determine what is the fiscal impact of annexing specific properties or in
certain areas. Given the need for an update, this is also an opportunity to make our policy
more comprehensive, modern, and strategic. Towards that end, an objective of a fiscal
analysis should also include revisiting the associated mapping of annexation areas 'A' and
'B', which could be better informed by such an analysis.
Scope of Services
The intent of this scope of services is to serve as a framework, which consultants can use
to develop a more detailed proposed scope of work based on their professional expertise
and knowledge. The final scope of work for the project will be negotiated with the selected
consultants prior to contract approval. The consultant is expected to provide interpretation
and identification of deliverables or milestones it believes are integral to the project in the
submitted proposal, as outlined within the submittal requirements section of this RFP.
Project Description:
The intended outcome of this project is the development of an updated, comprehensive,
and navigable annexation policy that both supports and is supported by the City Land Use
Plan and other relevant City policies and is informed by fiscal analysis. The updated policy
should, at minimum, incorporate:
* Clear language for evaluating properties for annexation into the City that
complies with City goals and priorities.
* Fiscal considerations incorporated into the new policy and/or policy map.
* An updated annexation policy map that could be expanded to include
additional designations.
* Accompanying review and approval processes that are functional and
include innovations to current practices where opportunities are identified.
The consultant shall provide the following guidance to support staff in the development of
the updated policy:
* Best practices for a strategic approach to guide the City in this policy update.
* Guidance and direction that is mindful of policy decisions and
considerations about growth and City expansion established in the recently
adopted Land Use Plan.
The consultant shall evaluate the implications of annexation and development of newly
annexed lands on the city's infrastructure and facilities maintenance, levels of service, and
revenues. This fiscal analysis should ultimately inform the annexation policy update itself,
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including the annexation policy map. The analysis should apply to the full area within the
Utility Services area boundary. The following list contains examples of the preferred
elements that should be included in the fiscal analysis and will be determined through the
approach confirmation phase of the project:
Data inputs:
* City revenues and fees
* City staffing needs
* Public safety and emergency services; capacity and response times
* Water infrastructure and service long term maintenance costs
* Sewer, stormwater, and solid waste infrastructure and service capacity
* Planned Capital Improvement projects
* Parks, Recreation and Open Space facilities, service and capacity
* Transportation and surface infrastructure maintenance costs including
streets, sidewalks, trails, transit facilities, boulevards, and street trees
Consideration of impacts to regional services such as:
* Education/Schools
* Transit service and facilities
* Select Civic, Industrial and Historic Sites and Uses
* Adjacent/regional communities
Final Project Deliverables
This section captures the final project deliverables. See the Consultant and Staff Roles
section for more information on the intended responsibilities for both consultants and
staff.
Updated Annexation Policy:
o Final Updated Annexation Policy Document
o Final Updated Annexation Policy Map
o Final Associated Materials (Final presentations, engagement materials,
methodology, user guidance, etc.) as determined by consultant
Fiscal Impact Analysis
o Fiscal Analysis, including Reporting and Summarization
o White paper describing data sources, methodology (including assumptions
and limitations), and maintenance and update instructions for upkeep over
time.
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o Associated materials (presentation, data/GIS files, engagement materials or
visualizations, etc.) as determined by consultant.
Proposal Framework
The following elements are provided as a general framework for what should be described
in the consultant's response:
* Approach to Project Management
* Familiarization with Existing Conditions and Development Trends
* Understanding of City Revenues and Expenditures Considerations
* Familiarization with Missoula City Policies and Priorities Around Annexation
* Fiscal Analysis Expertise
* Approach to Coordination with Relevant Agencies and Organizations
* Support for Staff-led Community and Stakeholder Engagement
* Presentation and Communication Styles
* Use of Meetings and Work Sessions
Project Work Plan Elements:
Submissions to this RFP should incorporate these work plan elements, as determined by
the consultant and based on their expertise and approach to this project, and indicating
preferred roles for both consultant and staff responsibilities:
Project Start Up and Analysis
Project start up and kickoff. Project management organization and coordination.
Team/stakeholder identification and set up. Review of existing policy. Determine
fiscal analysis framework and data needs. Establish data sharing and access.
Confirm Approach
Review data/troubleshoot gaps, develop methodology. Interview stakeholders and
internal teams. Receive community input.
Develop Deliverables
Develop updated annexation policy, map, and fiscal impact analysis. Include time
and space for internal and external reviews that could point to consultant revisions.
NOTE: Key project deliverables must be delivered before December 31, 2026.
Proposals that cannot meet this deadline will not be considered. (See
Timeline and Budget).
Adoption and Implementation
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Policy adoption (including supporting staff creation of reports and presentations).
Budget and Timeline
Budget
The City is estimating a budget of up to $150,000 for final completion of the project. The
entire budget for this project is provided by the City of Missoula, delivered from the State of
Montana through the awarded Federal Pro Housing grant. It is important to stress that, as
described above, in order for grant funds to be accessed for this work, the City must receive
key deliverables before December, 2026. Demonstrating the ability to do so will be a key
consideration of review of proposals.
Developing the project budget should be guided by awareness of what consultant work is
essential or optional, as listed below. Budget needs should be prioritized to absolutely
include essential tasks, and include or add in optional and desired tasks depending on
available remaining funds, or with proposals for how to incorporate those elements with
use of staff time.
Essential Consultant Tasks:
* Project Management (see Roles section)
* Fiscal Impact Analysis
* Annexation Policy Update Support (Best Practices, Develop Approach)
* Annexation Policy Map Update
Optional/Desired Consultant Tasks:
* Adoption support (materials, presentations)
* Document finalization/formatting/design
* Public Participation Support (Messaging, Materials, Communications, etc)
Timeline
The City anticipates this project taking between six to eight months. An essential factor for
the project timeline is that key deliverables are received prior to December, 2026. The
deliverables do not necessarily need to be finalized products; they can include earlier
drafts or earlier project deliverables.
Consultant and Staff Roles
We envision a shared project management model between consultants and staff for this
work. A City project manager will be assigned to work with consultants together as a
project management team. Consultants will guide overall project timeline and schedule,
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