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HomeMy WebLinkAbout03-26-15 IFAC - MinutesMINUTES THE CITY OF BOZEMAN IMPACT FEE ADVISORY COMMITTEE CITY COMMISSION ROOM, CITY HALL, 121 N. ROUSE AVENUE THURSDAY, MARCH 26, 2015 6:00 P.M. ITEM 1. 06:01:19 PM CALL TO ORDER AND ATTENDANCE Board Anna Rosenberry George Thompson James Nickelson Randy Carpenter Rick Hixson Staff Chris Mehl Chris Saunders Bob Murray Public Chris Budeski ITEM 2. 06:02:32 PM MINUTES OF MARCH 27, 2014 and NOVEMBER 20, 2014. 06:02:47 PM George Thompson quoted page 3 of March 27th minutes, “no clear process for an applicant to apply for the list of credits and asked if the process could be put in place to fill out an application or a form.” 06:03:46 PM Chris Saunders indicated that a standardized form is used to initiate the process. The form is available from Community Development. 06:04:08 PM Anna Rosenberry moved “to approve the minutes as written.” Seconded by George Thompson. Board Member – Anna Rosenberry: Motion Board Member - George Thompson: 2nd Board Member - George Thompson: Approve Board Member - Randy Carpenter: Approve Board Chair - James Nickelson: Approve Board Member – Anna Rosenberry: Approve Board Member – Rick Hixson: Approve ITEM 3. 06:04:22 PM PUBLIC COMMENT {Limited to any public matter within the jurisdiction of the Impact Fee Advisory Committee and not scheduled on this agenda. (Three-minute time limit per speaker.} 06:04:20 PM James Nickelson opened floor to public comments. No comments. ITEM 4. 06:04:32 PM CITY COMMISSION LIAISON {A standing item to be used as needed} 06:04:31 PM Floor offered to Chris Mehl, declined. ITEM 5. 06:04:43 PM PROJECT REVIEW 1. Budget discussion for improvements at the Baxter Lane and Davis Lane intersection as well as the Cottonwood Road and Huffine Lane intersection. 06:04:56 PM Bob Murray, engineering, discussed impact fees contribution to proposed improvements. Service levels are Ds and Fs, Robert Peccia and Associates were contracted to design improvements pending review by Commission. Preliminary cost estimates for roundabout or signal options are 2.7 million or 1.85 million, higher than anticipated. Advised staff were looking for a recommendation from Board to forward to Commission to amend the street impact fee CIP, to 1.6 million for roundabout and just over 1.1 million for signal. 06:08:40 PM George Thompson wanted to know whether roundabout could be expanded to two lanes—Bob Murray indicated that the current proposal was for a two-lane roundabout, which accounts for the high cost. George Thompson expressed concern that pedestrian traffic could overwhelm roundabout—Bob Murray indicated that Staff would recommend a signal option to accommodate pedestrian traffic. 06:10:45 PM Rick Hixson clarified that roundabout/signal policy is state policy but Bob Murray indicated that they were trying to follow state policy. Rick Hixson raised issue of College Street roundabout where City Commission explicitly stated that given the choice they would not include a signal with a roundabout—Bob Murray indicated that the policy was a state policy and that did not apply to a non-urban road. Rick Hixson felt that the Staff should revisit their recommendation for a signal option in light of the Commission’s previous decision. Clarified what intended geometric improvements were being considered and obstacles. 06:14:20 PM Chris Mehl clarified that policy to pursue right-of-way had not been in place at time that areas north and west of intersection were annexed, limiting latitude to negotiate with landowners. Noted active irrigation facility on-site will complicate installation. 06:15:46 PM Chris Mehl wanted to know why roundabout was planned to four lanes while a signal was planned to two going north—Bob Murray reviewed schematics and indicated that situations were different but that land requested was the same. Rick Hixson indicated that report from right-of-way showed roundabout was double area needed for the signal request— Bob Murray did not reach same conclusion. Rick Hixson wanted to know how cost estimates from December could be off by a third by March—Bob Murray indicated that the extra lane improvements accounted for the difference. Rick Hixson expressed astonishment because the engineering demands had not changed since the estimate. 06:17:26 PM Anna Rosenberry clarified that intersection had not been included in adopted CIP because it had been included in a prior CIP and put in the current fiscal year budget. Also noted that construction bids had changed significantly in last 90-100 days—Rick Hixson cited example of Story Street which had been bid for less; not all bids are rising; raised concerns about where funds would be found to pay for increased cost. 06:18:47 PM Anna Rosenberry indicated CIP was available on website, that estimated revenues for this time period were 1.8 million dollars but that collections had been 2.6 million, suggested it would be safe to assume at least 900K in extra revenues for fiscal year. Indicated collection of impact fees in CIP would change average from 1.9 million a year to about 2.1 million. 06:19:49 PM Rick Hixson wanted to know whether we were trying to bid for this summer— Bob Murray indicated that this would depend on the right-of-way acquisition and whether we have to go through condemnation. 06:20:06 PM James Nickelson felt that Rick Hixson had said that in the latest CIP that the number that had been used for the intersection was 1.1 million—Rick Hixson responded in the negative. 06:20:23 PM Bob Murray clarified that newer ones were going at 990K with no design or consideration for idiosyncrasies of an intersection, that without investigation one does not know the real cost. Regarding Story Street, he indicated that this improvement was better suited to bidders who could not perform large jobs, that contractor bidding pool was smaller for larger jobs. Indicated that Cottonwood and Huffine intersection had received only one bid, that prices had gone up dramatically in last six months due to labor market. Expressed concern that as high as estimate is now, it may be inadequate. 06:23:07 PM Chris Mehl expressed that if estimates were so off in the CIP it should be blown up, that fewer projects may be necessary, asked to be personally present for this on the 13th. Felt public needed to know about heightened estimates before taking a vote. 06:24:37 PM George Thompson felt that some numbers in estimate seemed low, felt that condemnation before a summer startup would present a significant challenge—Bob Murray indicated that condemnation could prevent summer startup, felt signal option would have better chances. 06:26:25 PM Anna Rosenberry expressed that Story Street bid included a lot of added work that provided economies of scale. Felt CIP could not in fact be blown up and that it would not be necessary, that appropriate tactic would be to reassess project priorities to determine which to move forward with. 06:27:38 PM Rick Hixson reiterated that bids do not universally increase, expressed concern that they would be doing a lot less, will be less inclined to support higher bids. 06:28:49 PM Bob Murray clarified that they would be hiring WTI to develop an overall citywide transportation model, that WTI study will provide a unified model showing where the city had the greatest needs. Described that model would provide better look at city needs compared to developer-provided models, would coincide with Transportation Master Plan update. James Nickelson clarified that waiting for WTI would prevent current project from being completed this year—Bob Murray agreed. James Nickelson asked what an engineer would prefer for the intersection if costs were the same—Bob Murray felt that if the roundabout was going to require pedestrian signals they should instead go with the signal option. 06:32:31 PM Chris Budeski discussed PROWAG requirement for signalizing roundabouts, part of Americans With Disabilities Act which is universally applicable. Expressed concerns with signal options ability to provide for safety and traffic control at intersection. 06:36:00 PM Rick Hixson clarified that ongoing ONM would be the same for either project. 06:36:52 PM Randy Carpenter asked about availability of non-impact fee share—Anna Rosenberry clarified that this share has been more difficult; a tax levy had generated 500K. Anna Rosenberry felt that at the higher prices the projects would take more than one year, that the roundabout may require two years. Randy Carpenter felt that if project was still highest- priority that it should be recommended forward, that if a project or combination of projects could achieve a higher-priority goal for same cost they would reconsider. 06:38:43 PM George Thompson suggested waiting for WTI—Rick Hixson indicated that project had already been budgeted, that the money was available and project was a priority. 06:40:07 PM James Nickelson sought clarification as to whether CIP would be amended to reflect cheaper signal improvement—Bob Murray indicated that they were recommending that the improvements be made whatever the number is. 06:41:31 PM Anna Rosenberry expressed concerns that they had not anticipated making amendments to the CIP or budget, felt their role was to forward comments to the Commission—James Nickelson indicated that because of the higher-than-expected cost increases an amendment was necessary. James Nickelson clarified that the statutory responsibility of the Committee is to review and offer comment and oversight on impact fees. If changes to bidding environment are persistent, the Commission may consider a fee study update. 06:45:05 PM Anna Rosenberry commented that she had thought the Committee would consider weighing in on which improvement would be chosen, expressed concerns about roundabout costs. Felt that if signal could achieve same results and save one million dollars it would be very important to the program. 06:46:18 PM James Nickelson agreed but did not want to weigh in on large policy decisions because of safety and environmental concerns, felt Commission would make the decision. 06:47:33 PM Rick Hixson discussed Cottonwood-Huffine intersection project. Indicated that Town Pump had sparked improvement decision, that difficulty arose from having matching lanes on north and south side (south side could not be improved independently). Staff had worked with Chris Budeski, the engineer for Town Pump, establishing a public-private partnership to improve Cottonwood between Alpha and Fallon all at once. Had planned to fund from Street Reconstruction Fund, budgeted 1.9 million dollars of street impact fees. Bid from Knife River was 2.7 million dollars, have not made much progress in lowering bid. Advised existing budget is inadequate to secure the project, requested amendment to budget to allow project to go forward. Felt Saudi-Yemeni war was impacting gas prices and that they would continue to rise, that situation would not quickly improve. Indicated they would recommend going forward on project to the Commission, sought feedback from Advisory Committee. 06:55:22 PM Chris Budeski reviewed situation, identified some costs that had increased outside of budgetary control because of changes made by MDT. 06:56:55 PM George Thompson inquired about whether potential savings from using lower quality materials were worth the loss—Chris Mehl clarified that potential savings were found by reducing labor costs and using more materials already in place. Highlighted that project had a 100K contingency fund. George Thompson clarified that potential savings from existing materials were anticipated to be available but would not know until the attempt was made. 07:00:00 PM Randy Carpenter clarified for the record that project was 26% over what had been expected, sought clarification about final street level by city’s rating—James Nickelson indicated that Cottonwood was a primary arterial, that this will finish all five lanes reaching from Alpha to Fallon. Randy Carpenter discovered that the project would cost almost 3 million dollars for less than a mile— Chris Saunders cited example of 19th intersection, about a mile and a half for 10 million dollars. 07:01:35 PM Randy Carpenter cited memo indicating negotiation did take place with Knife River, sought clarification—Rick Hixson clarified that logistical changes discussed by Chris Mehl had been negotiable but that bid item for mobilization was 280K, traffic control plan for 300K, could only be characterized as “Thank you very much.” Described that Schedule 0 costs approximate three-quarters of a million dollars. 07:04:27 PM Bob Murray reviewed different options that had been considered, indicated that Town Pump had already paid their agreed-upon portion, reiterated that bidding had taken place statewide at the ideal time but only one bid had come in. Thought bidding could be broken up into smaller jobs to allow more bidders to participate. 07:06:26 PM Rick Hixson reiterated that bidding conditions might not improve in a year— Chris Budeski indicated they had gone to MDT to request relief, had not heard back. 07:07:39 PM James Nickelson asked Chris Saunders what the impact would be on Town Pump if project did not go forward—responded that conditional use permit was dependent upon widening the street, they could request to make a cash payment instead of widening the street or request a grant of variance to standards. Without these requests, the City could shut down the location but that was not desired. 07:09:28 PM Rick Hixson had felt that they had agreed to partner with Town Pump, that Town Pump could not fulfill its end of the bargain without a partner and could not be expected to fulfill requirements of conditional use permit if project did not go forward—Chris Saunders clarified that there may be some options to allow them to fulfill their obligations but that these might have new costs. 07:10:42 PM Chris Budeski expressed that section of road being considered is dangerous and should be discussed— George Thompson responded that this would make it harder to break project into separate pieces. 07:11:36 PM Chris Budeski described how project could be divided in three, that smaller projects could attract more bids. 07:12:07 PM Chris Saunders described that five subdivisions were either approved or pending approval on the north side of Cottonwood, will increase traffic demands on area. 07:12:50 PM George Thompson wanted to know if bid contained contingencies that could raise price in response to changing market circumstances—clarified that such a provision existed but that the trigger required a pretty substantial change, perhaps 10%. 07:14:25 PM Rick Hixson noted that MDT was also improving the area independently, wanted to know if all avenues for cooperation had been explored—Bob Murray clarified that MDT had not responded to inquiries. 07:15:30 PM Chris Saunders indicated that they do receive urban funds but that these face some restrictions, tied up on College Street and Kagy. 07:16:10 PM Anna Rosenberry described that adopted CIP was scheduled to end on ten million dollars, never went negative in any year of plan, based on 1.9 million dollars of annual revenue. Outstanding balance of 1.5 million in fund, current collections are higher than scheduled. 07:17:47 PM Chris Saunders discussed deferral program for transportation impact fees, some MSU and large apartment projects there may be another 800K to 1 million in deferrals that are due but unpaid, including Jeb’s Hall, stadium project. 07:18:57 PM Anna Rosenberry reiterated that she would like to communicate to the Committee that we are seeing substantial changes in project costs for many reasons, situation like 2005. Felt there is still considerable flexibility and cash for maneuvering. 07:20:39 PM Rick Hixson indicated that first project was a greater challenge. 07:21:05 PM Rick Hixson expressed concerns at lack of competition, felt Knife River was prepared to resist competition. 07:21:50 PM Anna Rosenberry agreed with Chris Budeski’s concerns for traffic safety, sympathized with Town Pump’s position and supported moving forward with the project. 07:22:55 PM Chris Budeski sought increase of contingency from 2.5% to 5% 07:23:29 PM James Nickelson indicated Committee was not concerned with dollar values, that 2.5% and 5% were not substantially different from their perspective. 07:24:00 PM Expressed that project had been considered a good idea and had not changed, impact fee funds were available, continuing with project makes sense. 07:24:21 PM Chris Saunders felt that in consideration of general alignments, Cottonwood is the next 19th intersection equivalent with effects well outside its immediate service area. ITEM 6. 07:25:05 PM OLD BUSINESS 07:25:43 PM Chris Saunders explained that Staff had been working to make impact fee information easier to comprehend, created estimating tools. Described Impact Fee Estimator Excel documents for residential and commercial projects, demonstrated. 07:28:09 PM Chris Saunders discussed Western Transportation Institute, advised fee study in MSU area had been adopted by the Director of Public Works, shared copy. ITEM 7. 07:29:24 PM COMMITTEE COMMENTS ITEM 8. 07:29:28 PM ADJOURNMENT This meeting is open to all members of the public. If you have a disability that requires assistance, please contact ADA Coordinator, James Goehrung, at 582-3200 (voice) or 582-3203 (TDD).