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Home My WebLink About12-05-16 CC Mtg - C6. Fire Impact Fee Fund CIP Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Anna Rosenberry, Administrative Services Director SUBJECT: Adoption of the Fire Impact Fee Fund Capital Improvement Plan (CIP) for FY18-22. AGENDA ITEM TYPE: Consent MEETING DATE: December 5, 2016 RECOMMENDATION: Adopt the Fire Impact Fee Fund Capital Improvement Plan (CIP) for FY18-22. BACKGROUND: Each year, the City Manager is required to prepare a 5 Year Capital Improvements Plan and submit it to the Commission by December 15th. The City’s Impact Fee Advisory Committee (IFAC) met on November 17th to review and make recommendations for the planned expenditures of Fire Impact Fees. There was not a quorum at that meeting, but the members present made comment and recommended the attached plan. Items of Note: • FIF06 Fire Station #4 & FIF07 Fire Engine, Station #4 – Both of these items have been moved to unscheduled at this time. o Our Fire Master Plan, which just recently got underway, will inform on whether or not this project is needed within the next 5 years. o Based on the Impact Fee Study that was adopted in FY13, both of the items listed need an outside source of funds for 25% of their costs. This source could be General Funds, grant revenues, or could be an additional voter-approved tax levy. 39 Once these items are scheduled, we will likely need to identify this 25% source, totaling up to $1,150,000. • FIF08 Impact Fee Study - An update of our current Fire Impact Fee calculation should be completed. It will be most helpful to have this done after we make an update to our Fire Service Master Plan. • Revenue estimates for Fire Impact Fees have been updated with the 5-year average collection amount. Fund 113 - Fire Impact Fees Fiscal Year Revenue Change 2012 $ 247,000 27.3% 2013 $ 406,000 64.4% 2014 $ 298,000 -26.6% 2015 $ 430,000 44.3% 2016 $ 348,000 -19.1% 5-Year Average $ 345,800 18.1% UNRESOLVED ISSUES: None. $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 2012 2013 2014 2015 2016 5-Year Average Fire Impact Fee Revenues 40 ALTERNATIVES: As suggested by the City Commission. If the Commission is does not wish to adopt this schedule tonight, it can be scheduled for approval on a later agenda. FISCAL EFFECTS: This step in the process has no fiscal effect. Once adopted, the Capital Improvements Plan becomes the basis of the City Manager’s Recommended Budget for FY16. Report compiled on: November 25, 2015 Attached: Draft Fire Impact Fee Fund CIP 41 Fire Impact Fee Capital Improvement PlanFinancial Summary Current YearFY17 FY18 FY19 FY20 FY21 FY22UnscheduledProjected Beginning Reserve Balance Dedicated to CIP 1,259,601$ 1,546,501$ 1,858,751$ 2,239,114$ 2,638,494$ 3,057,844$ ‐$ Plus: Impact Fee Revenues Dedicated to CIP 311,900$ 362,250$ 380,363$ 399,381$ 419,350$ 440,317$ ‐$ Plus: FIF07 Engine #4 ‐ Voter Approved Bond Plus: FIF06 Station #4 ‐ Voter Approved Bond Less: Scheduled CIP Project Costs (25,000)$ (50,000)$ (4,600,000)$ Projected Year‐End Cash Dedicated to CIP 1,546,501$ 1,858,751$ 2,239,114$ 2,638,494$ 3,057,844$ 3,498,161$ Assumptions Made for Revenue Estimates: Current YearFY17 FY18 FY19 FY20 FY21 FY22Estimated Annual Fire Impact Fee Revenues 311,973$ 345,000$ 362,250$ 380,363$ 399,381$ 419,350$ Estimated Annual Increase 0.0% 5% 5% 5% 5% 5%Total Estimated Revenues 311,973$ 362,250$ 380,363$ 399,381$ 419,350$ 440,317$ Current Revenues Dedicated to CIP % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Plus: Increase Dedicated to Fire Capacity Expansion CIP 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Total % Dedicated to CIP 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%Total Estimated Revenues Dedicated to CIP 311,973$ 362,250$ 380,363$ 399,381$ 419,350$ 440,317$ ProjectedProjected5,000,0004,500,0004,000,0003,500,0003,000,0002,500,0002,000,0001,500,0001,000,000500,0000Fire Impact Fee Projects 42 CIP PROJECT FUPROJ.DEPARTMENTPROJECT NAMEUnscheduledFY21FY18FY19FY20FY22Impact Fees FireFIF06FIRE IFFIRE STATION #4$3,900,000FIF07FIRE IFFIRE ENGINE, STATION #4$700,000FIF08FIRE IFIMPACT FEE STUDY ‐ FIRE$50,000$50,000$4,600,000Summary for Impact Fees Fire (3 items)Totals by year:$50,000$4,600,000FY21FY22FY18UnscheduledFY20FY1943 CIP Project Fund Impact Fees Fire PROJECT NUMBER FIF06 DEPARTMENT FIRE IF PROJECT NAME FIRE STATION #4 FY18 FY19 Unscheduled $3,900,000 DESCRIPTION OF PROJECT This project was identified as a priority in the adopted 2006 Fire Protection Master Plan but should be better defined in the 2017 update as the city has changed a lot since 2006. While we won’t have the updates to the master plan for another 6-8 months we anticipate that it will recommend a fourth fire station in the next 5 years thus we are scheduling this in FY-22 for planning purposes. Once we have the Master Plan update back this section will need to be re-addressed before making additional plans. Portions of the City are located such that our response time exceeds four to six minutes for fire and medical emergencies. Land acquisition costs are not included in the proposed budget number. While the City currently owns the site on the southwest corner of 19th Avenue and Graf Street, which was identified as an ideal site for a station in 2006, that is subject to change with the 2016 Master Plan update. ALTERNATIVES CONSIDERED The budget number associated with this project is the same as the cost of Fire Station 3. A smaller station may be an option for this project and looking at building in areas where the city currently owns property could also reduce the cost of construction. Delaying the building of the station is an option but would require an understanding that some areas are going to be subject to longer than normal response times. Other options to be evaluated from 2017 Fire Protection Master Plan. ADVANTAGES OF APPROVAL The completion of this project would enhance our ability to respond to growing parts of the community within a time frame that has been historically acceptable to the citizens of Bozeman. The additional station also has the potential to have a positive impact on our ISO rating and encourage additional growth in areas of the city. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual Operating & Maintenance Costs: Impact Fees can not be spent on operations and maintenance costs. The City’s General Fund will bear the annual operating and maintenance expenses associated with this facility, estimated at $1,600,000, including all crew personnel. FUNDING SOURCES 75% Fire Impact Fees ($2,925,000), 25% Voter Approved Bond ($975,000.) New Replacement Equipment Project FY20 FY21 FY22 44 CIP Project Fund Impact Fees Fire PROJECT NUMBER FIF07 DEPARTMENT FIRE IF PROJECT NAME FIRE ENGINE, STATION #4 FY18 FY19 Unscheduled $700,000 DESCRIPTION OF PROJECT This project is the purchase of an engine and accompanying equipment for use out of new Fire Station 4. It will be necessary to have this engine at the Station when it opens. There is an estimated 12 month lead time in delivery of this type of equipment, thus this would need to be ordered a year before the opening of Fire Station 4. This estimated cost is for the apparatus and the majority of the equipment needed for service delivery. ALTERNATIVES CONSIDERED It may be valuable for ISO purposes to evaluate the purchase of a quint apparatus which is a Fire Engine with a ladder mounted on it that is smaller than Ladder 1. We also could use the 2006 Pierce reserve engine at Station 4. This would leave city with only one reserve fire engine to cover for 4 front line apparatus, a 1989 Pierce. The 2006 Pierce could require updates to make the apparatus serviceable as front line apparatus, but it is already 11 years into its current service life. There is also the option to purchase a used piece of apparatus. ADVANTAGES OF APPROVAL Purchase of this unit will adequately equip Station #4 for fire and other emergency responses. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual Operating & Maintenance Costs: Impact Fees can not be used for annual operating and maintenance costs. The City’s General Fund will pay for the increased fuel, maintenance and insurance costs associated with this engine, estimated at $30,000 per year. FUNDING SOURCES 75% Fire Impact Fees ($525,000), 25% Voter Approved Bond ($175,000). New Replacement Equipment Project FY20 FY21 FY22 45 CIP Project Fund Impact Fees Fire PROJECT NUMBER FIF08 DEPARTMENT FIRE IF PROJECT NAME IMPACT FEE STUDY - FIRE FY18 $50,000 FY19 Unscheduled DESCRIPTION OF PROJECT An update of our current Fire Impact Fee calculation should be completed. It will be most helpful to have this done after we make an update to our Fire Service Master Plan, which is expected to take place in FY17. ALTERNATIVES CONSIDERED None. Statute requires an update to this calculation. ADVANTAGES OF APPROVAL Compliance with state law; accuracy in the amount of fee being charged. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED None. FUNDING SOURCES 100% Fire Impact Fees New Replacement Equipment Project FY20 FY21 FY22 46