The URL can be used to link to this page

Home My WebLink About12-12-16 CC Mtg - A5. Water Impact Fee Fund CIP Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Anna Rosenberry, Administrative Services Director SUBJECT: Adoption of the Water Impact Fee Fund Capital Improvement Plan (CIP) for FY18-22. AGENDA ITEM TYPE: Action MEETING DATE: December 12, 2016 RECOMMENDATION: Adopt the Water 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 December 1st to review and make recommendations for the planned expenditures of Water Impact Fees. There was a quorum of the Committee and they voted to recommend the attached CIP. Items of Note: 1. The scheduled projects now include more of the projects identified in the Integrated Water Resources Plan (IWRP). 2. WIF39 &WIF40 SOURDOUGH TRANSMISSION MAIN – PHASES 1 & 2 – These projects provides significant additional water supply capacity. Their construction would also assist in overcoming vulnerabilities presented by the aging and unknown condition of the existing transmission main between the City’s Water Treatment Plant and Sourdough Tank. The IFAC discussed whether or not the projects should be funded 590 100% with impact fees – or have some contribution from the Utility because of the “redundancy” the lines will also supply. The projects are proposed as 90% Impact Fees and 10% Water Utility. 3. WIF31, WIF32, and WIF33 GROUNDWATER WELL FIELD TEST, DESIGN AND CONSTRUCTION - We have added items for water supply project called “Groundwater Well Field.” These are items that will provide added water supply, as recommended by the City’s Integrated Water Resource Plan. 4. A significant amount of borrowing is anticipated for Projects WIF35, WIF39, and WIF 40. Over $17 million will need to be borrowed to complete these three projects. Because of the uncertainty of the revenue stream, the Water Utility will need to borrow via revenue bonds and be reimbursed by the Water Impact Fee Fund. There may be rate- requirements to support this borrowing. We will know more after the upcoming Water Rate Study. 5. There are a significant amount of unscheduled capacity-expanding projects proposed that cannot be supported by the existing levels of impact fee revenues. 6. Revenue estimates for Water Impact Fees have been updated with the 5-year average collection amount, detailed on the following page. We have not included 591 any potential financial effects of the fee study that will be underway in the coming months. Revenues have grown on average by 25% per year, over the past 5 years. Revenues have grown by an average of 11% per year, over the past 3 years. For the CIP, we have used the 5-year Average collection, plus 5% growth each year from FY18 to FY22. Revenue History - Water Impact Fees Fiscal Year Revenue Change 2012 $1,060,000 - 2013 $1,726,000 63% 2014 $1,833,000 6% 2015 $1,663,000 -9% 2016 $2,262,000 36% 5-Year Average $ 1,708,800 25% UNRESOLVED ISSUES: None. 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. $- $500,000.00 $1,000,000.00 $1,500,000.00 $2,000,000.00 $2,500,000.00 2012 2013 2014 2015 2016 Average FY12-16 Water Impact Fee Revenues 592 FISCAL EFFECTS: This step in the process has no fiscal effect. Once adopted, the Capital Improvements Plan becomes the basis of the City Manager’s Recommended Budget for FY18. Report compiled on: December 6, 2016 Attached: Draft Water Impact Fee Fund CIP 593 Water Impact Fee Capital Improvement Plan Financial Summary Current YearFY17 FY18 FY19 FY20 FY21 FY22UnscheduledProjected Beginning Reserve Balance Dedicated to CIP 1,577,000$ 1,856,250$ (140,350)$ (243,290)$ (91,796)$ 79,289$ ‐$ Plus: Impact Fee Revenues Dedicated to CIP 1,475,000$ 1,793,400$ 1,883,070$ 1,977,224$ 2,076,085$ 2,179,889$ ‐$ Plus: Loan for Well Field WIF32 8,000,000$ Plus: Loan for Lyman Tank WIF35 4,800,000$ Plus: Loan for Sourdough Transmission Main, PH 2 WIF40 4,320,000$ Less: Scheduled CIP Project Costs (1,195,750)$ (3,790,000)$ (1,986,010)$ (14,145,729)$ (6,705,000)$ (2,245,000)$ (164,590,604)$ Projected Year‐End Cash Dedicated to CIP 1,856,250$ (140,350)$ (243,290)$ (91,796)$ 79,289$ 14,178$ Assumptions Made for Revenue Estimates: Current YearFY17 FY18 FY19 FY20 FY21 FY22Estimated Annual Water Impact Fee Revenues 1,475,000$ 1,708,000$ 1,793,400$ 1,883,070$ 1,977,224$ 2,076,085$ Estimated Annual Increase 0.0% 5% 5% 5% 5% 5%Total Estimated Revenues 1,475,000$ 1,793,400$ 1,883,070$ 1,977,224$ 2,076,085$ 2,179,889$ Current Revenues Dedicated to CIP % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Plus: Increase Dedicated to Water 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 1,475,000$ 1,793,400$ 1,883,070$ 1,977,224$ 2,076,085$ 2,179,889$ ProjectedProjectedCURRENT165,000,000145,000,000125,000,000105,000,00085,000,00065,000,00045,000,00025,000,0005,000,00015,000,000Water Impact Fee Projects 594 CIP PROJECT FUPROJ.DEPARTMENTPROJECT NAMEUnscheduledFY21FY18FY19FY20FY22Impact Fees WaterWIF05WATER IMPACT FEESWEST TRANSMISSION MAIN ‐ PHASE 1 CONSTRUCTION$28,006,293WIF14WATER IMPACT FEESLOAN DEBT SERVICE ‐ WTP 5.3MG CONCRETE WATER STORAGE RESERVOIR$600,000$6,800,000$600,000$600,000$600,000$600,000WIF21WATER IMPACTS 11TH 12" WATER MAIN EXTENSION$136,010WIF25WATER IMPACT FEESDAVIS 12" WATER MAIN & VALLEY CENTER 16" WATER MAIN EXTENSION$725,729WIF26WATER IMPACT FEESLYMAN TANK AND TRANSMISSION MAIN DESIGN$750,000WIF27WATER IMPACT5126 WEST SOURDOUGH RESERVOIR 1$9,757,500WIF28WATER IMPACT FEES5126 WEST SOURDOUGH RESERVOIR 1 ‐ SITING$350,000WIF29WATER IMPACT FEES5560 SOUTHEAST RESERVOIR AND PUMP STATION$21,232,807WIF30WATER IMPACTEAST TRANSMISSION MAIN$7,167,372WIF31WATER IMPACTGROUNDWATER TEST WELL$400,000WIF32WATER IMPACT FEESGROUNDWATER WELL FIELD AND TRANSMISSION CONSTRUCTION$8,000,000WIF33WATER IMPACT FEESGROUNDWATER WELL FIELD AND TRANSMISSION MAIN DESIGN$500,000WIF35WATER IMPACT FEESLYMAN TANK AND TRANSMISSION MAIN CONSTRUCTION$4,800,000WIF36WATER IMPACT FEESWEST TRANSMISSION MAIN PLANNING STUDY$400,000WIF37WATER IMPACT FEESSOURDOUGH CANYON NATURAL STORAGE ‐ PLANNING AND DESIGN $500,000WIF38WATER IMPACT FEESSOURDOUGH CANYON NATURAL STORAGE CONSTRUCTION$8,000,000WIF39WATER IMPACT FEESSOURDOUGH TRANSMISSION MAIN – PHASE 1$2,790,000WIF40WATER IMPACT FEESSOURDOUGH TRANSMISSION MAIN – PHASE 2$4,320,000WIF41WATER IMPACT FEESWEST TRANSMISSION MAIN ‐ PHASE 1 DESIGN$2,907,235595 CIP PROJECT FUPROJ.DEPARTMENTPROJECT NAMEUnscheduledFY21FY18FY19FY20FY22WIF42WATER IMPACT FEESWEST TRANSMISSION MAIN ‐ PHASES 2‐5 DESIGN & CONSTRUCTION$61,669,396WIF43WATER IMPACT FEESDEBT SERVICE FOR BORROWING ‐ WELL FIELD$1,000,000$10,800,000$1,000,000WIF44WATER IMPACT FEESDEBT SERVICE FOR BORROWING ‐ LYMAN TANK PROJECT$446,000$340,000WIF45WATER IMPACT FEESDEBT SERVICE FOR BORROWING ‐ TRANSMISSION MAIN$305,000$3,750,000$305,000Summary for Impact Fees Water (23 items)Totals by year:$6,705,000 $2,245,000$3,790,000$161,286,604FY21FY22FY18UnscheduledFY20$14,145,729$1,986,010FY19596 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF05 DEPARTMENT WATER IMPACT FEES PROJECT NAME West Transmission Main - Phase 1 Construction FY18 FY19 Unscheduled $28,006,293 DESCRIPTION OF PROJECT The project consists of a constructing a new transmission main from the Sourdough water treatment plant to the southwestern edge of the existing distribution network (S. 19th and Graf St.) to serve future anticipated growth and provide water delivery redundancy. Describe the criticality (i.e., importance) of this project to the operation: This second transmission line from the WTP to the City's distribution system is critical to provide a second path to get potable water from the WTP into the City, as well as to adequately serve the rapidly growing western portions of the City with potable water and fire flows. How is capacity affected by this project: Potable water delivery and fire flows will be improved in the southwest, west and northwest portions of the City. How is connectivity affected by this project: This transmission line connects to the existing distribution system at a location that enables the existing Sourdough and Hilltop tanks to be filled even if the Sourdough pipeline is out of service. What safety or risk measures are mitigated with this project: This project mitigates the risk of not having enough potable water to serve the City's residents or provide fire suppression. What regulations or standards are attained with this project: Redundant water delivery infrastructure and sufficient fire flow for the western portion of the City. How is this project leveraged with other stakeholders/projects/funds: This project will provide the ability for the City to connect additional storage reservoirs on the City's southwest to satisfy maximum day demand and fire flows on the western side of the City. Are there other affected projects: Subsequent phases of the West Transmission Main. ALTERNATIVES CONSIDERED Construct a parallel transmission line between the Sourdough Water Treatment Plant to Kagy Boulevard. ADVANTAGES OF APPROVAL Provides transmission capacity to current and growing peak day and fire flow demands on Bozeman's western flanks, generally west of 19th Ave. All existing transmission capacity is on the eastern edge of the city's distribution system which presents hydraulic issues as the water demand centroid moves westward. The transmission also provides redundant transmission in the event of failure of sourdough transmission mains. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual Operating & Maintenance Costs: Impact Fees can not be spent on annual operations and maintenance costs. The Water Utility will see incremental increases in general maintenance costs. FUNDING SOURCES Developer contributions New Replacement Equipment Project FY20 FY21 FY22 597 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF14 DEPARTMENT WATER IMPACT FEES PROJECT NAME Loan Debt Service - WTP 5.3MG Concrete Water Storage Reservoir FY18 $600,000 FY19 $600,000 Unscheduled $6,800,000 DESCRIPTION OF PROJECT Repayment of debt used to finance construction of WIF03, a 5.3 million gallon concrete water storage reservoir. ALTERNATIVES CONSIDERED Payoff loan principal ADVANTAGES OF APPROVAL Increased water storage to meet the needs of our growth community, and the requirement of MDEQ. Increased system water pressure in the southern part of the City. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Requires minimal operation and maintenance. Checking of valves, level sensors and vents on an annual basis and diver inspection and vacuuming every five years. Estimated at $4,000 annually. FUNDING SOURCES 100% Water Impact Fees New Replacement Equipment Project FY20 $600,000 FY21 $600,000 FY22 $600,000 598 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF21 DEPARTMENT WATER IMPACT FEES PROJECT NAME S 11th 12" water main extension FY18 FY19 $136,010 Unscheduled DESCRIPTION OF PROJECT Extension of 12" diameter main per AE2S WFPU in S 11th avenue from current terminus to Graf Street. Describe the criticality (i.e., importance) of this project to the operation: Provides for future looped water system per AE2S WFPU. How is capacity affected by this project: Increases hydraulic capacity of system beyond minimum 8" main. How is connectivity affected by this project: Provides for a future looped water system What safety or risk measures are mitigated with this project: Reduces severity and consequences of water system outages due to future looping and provides for minimum fire flows. What regulations or standards are attained with this project: ISO fire flow requirements and local water main looping standards. How is this project leveraged with other stakeholders/projects/funds: Impact Fees fund capacity above 8" main which is minimum local share. Local share could be reimbursed to City through a "payback district" established by City Commission. Are there other affected projects: S 11th Ave road improvements. ALTERNATIVES CONSIDERED Forego project and don't loop water system in this area ADVANTAGES OF APPROVAL Provides for water main construction at time of road construction and implements WFPU update for G&D water infrastructure ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED n/a FUNDING SOURCES Developer contribution (Graf's) for their "local share" of main would need to be reimbursed through a "payback district" established by the City Commission New Replacement Equipment Project FY20 FY21 FY22 599 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF25 DEPARTMENT WATER IMPACT FEES PROJECT NAME Davis 12" Water Main & Valley Center 16" Water Main Extension FY18 FY19 Unscheduled DESCRIPTION OF PROJECT Extension of 12" water main in Davis Ln from Catamount to Valley Center & Extension of 16" diameter water main in Valley Center from Davis to 27th. 16" main is per AE2S WFPU. 12" main extends existing 12" main in Davis. These mains needed to support development south of East Valley Center between Davis and 27th. Describe the criticality (i.e., importance) of this project to the operation: Provides for future looped water system per AE2S WFPU. How is capacity affected by this project: Increases hydraulic capacity of system beyond minimum 8" main. How is connectivity affected by this project: Provides for a future looped water system What safety or risk measures are mitigated with this project: Reduces severity and consequences of water system outages due to future looping and provides for minimum fire flows. What regulations or standards are attained with this project: ISO fire flow requirements and local water main looping standards. How is this project leveraged with other stakeholders/projects/funds: Mains completed in connection with development of Billings Clinic. Are there other affected projects: 12" main in Davis along the proposed alignment of Phase 5 of West Transmission Main in the AE2S WFPU. WTM diameter contemplated at 36" in Davis from Catamount to Valley Center. ALTERNATIVES CONSIDERED Billings Clinic may occupy this land. Fire flow demands may require large diameter mains above the minimum 8" diameter typical local share in order to meet the Clinic's fire flow requirement, thus reducing the overall impact fee contribution ADVANTAGES OF APPROVAL Implements WFPU update for G&D infrastructure ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED n/a FUNDING SOURCES Developer contribution (Billings Clinic) for their "local share" of main New Replacement Equipment Project FY20 $725,729 FY21 FY22 600 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF26 DEPARTMENT WATER IMPACT FEES PROJECT NAME Lyman Tank and Transmission Main Design FY18 FY19 $750,000 Unscheduled DESCRIPTION OF PROJECT Design of new Lyman Storage (5MG), new transmission design, chlorination/fluoridation design and CA based repairs design to existing transmission main. Describe the criticality (i.e., importance) of this project to the operation: Necessary for construction of Lyman tank and transmission project. What regulations or standards are attained with this project: DEQ construction approval. How is this project leveraged with other stakeholders/projects/funds: CA-based repairs determined from Lyman Transmission main CA. Are there other affected projects: Lyman Tank and Transmission Main Construction. ALTERNATIVES CONSIDERED Status quo operation of existing Lyman system ADVANTAGES OF APPROVAL Provides bid plans and cost estimates for construction and obtains DEQ approvals needed for construction ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED N/A FUNDING SOURCES 100% Water Impact Fees New Replacement Equipment Project FY20 FY21 FY22 601 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF27 DEPARTMENT WATER IMPACT FEES PROJECT NAME 5126 West Sourdough Reservoir 1 FY18 FY19 Unscheduled $9,757,500 DESCRIPTION OF PROJECT The project consists of a constructing a new gravity fed ground storage reservoir to the south/southwest of the City, which would tie into the West Water Transmission Main – Phase 1 and serve the existing City water distribution system. Describe the criticality (i.e., importance) of this project to the operation: This reservoir provides storage for the areas served by the West Water Transmission Main, for maximum day demand and potable water supply and fire flows in the City's southwest area. How is capacity affected by this project: This reservoir supplies water to the City’s existing distribution network, to provide necessary storage capacity for the entire system, as well as contributes to adequate water supply capacity for future development along the City's western half. How is connectivity affected by this project: In the near term the storage provided by this reservoir will augment storage provided by the City's existing Sourdough and Hilltop Tanks. In the long-term it provides storage for the west and northwest areas of the City. What safety or risk measures are mitigated with this project: This project mitigates the risk of not having enough potable water and fire flow in the southwest area of the City. What regulations or standards are attained with this project: Adequate storage for maximum day demand and fire flows, as well as redundant water storage capacity for existing storage tanks. How is this project leveraged with other stakeholders/projects/funds: This project is directly tied to construction of the West Water Transmission Main - Phase 1. ALTERNATIVES CONSIDERED None ADVANTAGES OF APPROVAL Two of the City's three existing reservoirs are located along the Sourdough Transmission main (Sourdough and Hilltop Tanks). If the Sourdough transmission main or either of these tanks are off-line for any reason (i.e. maintenance, natural disaster, break, etc.), the City would have inadequate storage and supply. An additional reservoir located on the West Transmission Main – Phase 1 provides storage redundancy, allowing for routine inspection and maintenance of both water storage facilities/transmission mains, mitigates the risk of and reduces the consequence of a failure on the existing Sourdough transmission main or Sourdough or Hilltop tanks. It also contributes to satisfying required storage capacity for the system, as well as ensuring adequate potable water and fire flows to the City's southwest areas. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual Operating & Maintenance Costs: Impact Fees can not be spent on annual operations and maintenance costs. The Water Utility will see an incremental increase in general maintenance cost. Current cost estimate of $XX.XX annually. FUNDING SOURCES 100% Water Impact Fees New Replacement Equipment Project FY20 FY21 FY22 602 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF28 DEPARTMENT WATER IMPACT FEES PROJECT NAME 5126 West Sourdough Reservoir 1 - Siting FY18 FY19 Unscheduled $350,000 DESCRIPTION OF PROJECT Siting study and land acquisition for 5MG ground storage reservoir to serve 5126 Pressure Zone from West Transmission Main. Describe the criticality (i.e., importance) of this project to the operation: The West Sourdough Reservoir will be the next necessary reservoir for the City to continue to provide adequate potable water and fire flow. Proper siting of this reservoir will provide redundant supply to Sourdough and Hilltop Reservoirs. How is capacity affected by this project: Increases water storage capacity by 5MG. How is efficiency improved with this equipment: Greater efficiency in providing potable water and fire flows to the City's western areas. Better ability to take Sourdough or Hilltop reservoirs offline and still provide sufficient storage. What is the impact (i.e., scope-of-use) for this equipment: System wide improvement in water storage capacity. Are there other affected projects: Groundwater planning, engineering and construction West Transmission Main study, design, construction; reservoir design, construction projects. ALTERNATIVES CONSIDERED Wait until the need for the reservoir is more imminent ADVANTAGES OF APPROVAL What are the implications of deferring the purchase of this equipment: Potential acquisition of the land by others, less optimal siting of the reservoir. Procurement of land while it is available, and less expensive ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED FUNDING SOURCES 100% Water Impact Fees New Replacement Equipment Project FY20 FY21 FY22 603 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF29 DEPARTMENT WATER IMPACT FEES PROJECT NAME 5560 Southeast Reservoir and Pump Station FY18 FY19 Unscheduled $21,232,807 DESCRIPTION OF PROJECT The project consists of a constructing a new ground storage tank, pump station, and transmission main that would serve two new future pressure zones located southeast of the existing City limits. Describe the criticality (i.e., importance) of this project to the operation: This reservoir will become critical for potable water and fire flows in the southeast pressure zone. How is capacity affected by this project: This project provides necessary storage to ensure potable water supply and fire flow to the City's southeast area. How is connectivity affected by this project: The southeast reservoir and pipe feeds down into the future east transmission line and provides additional supply if needed. This reservoir will provide this area with water storage inside the zone. What safety or risk measures are mitigated with this project: Inadequate potable water and fire flow for future development in the City's southeast What regulations or standards are attained with this project: Water Storage for Maximum Day Demand and Fire Flows. How is this project leveraged with other stakeholders/projects/funds: Correlates with the transmission main from the tank into the Southeast developments. ALTERNATIVES CONSIDERED None ADVANTAGES OF APPROVAL The hydraulic grade line associated in these pressure zones are greater than what can be provided by the City’s existing infrastructure. A new ground storage reservoir and pump station will ensure that these pressure zones satisfy the City’s hydraulic operating criteria (i.e. operating pressures, fire flows, and storage requirements). Furthermore, additional storage within the system promotes redundancy, provides flexibility for maintenance activities, and allows for future growth. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual Operating & Maintenance Costs: Impact Fees can not be spent on annual operations and maintenance costs. The Water Utility will see incremental increases in costs associated with both general maintenance and energy. Current cost estimate of $XX.XX annually. FUNDING SOURCES 100% Water Impact Fees New Replacement Equipment Project FY20 FY21 FY22 604 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF30 DEPARTMENT WATER IMPACT FEES PROJECT NAME East Transmission Main FY18 FY19 Unscheduled $7,167,372 DESCRIPTION OF PROJECT The project consists of a constructing a new transmission main that would ensure adequate water supply capacity for future developments located both east and northeast of the existing distribution system (extending approximately from East Kagy Blvd to Kelly Canyon Rd and Story Hill Rd). Describe the criticality (i.e., importance) of this project to the operation: Without this transmission main, potable water and fire flows will eventually become insufficient in the east and northeast portions of the City. This main also supplies the future East Mountain Zone, which has a substantial demand. How is capacity affected by this project: Potable water and fire flows will be provided in the east and northeast portions of the City as this area develops. How is connectivity affected by this project: This project better connects the east and northeast portions of the City with the supply from the City's WTP. In conjunction with the west transmission mains, it will provide a more looped supply for the majority of the City. What safety or risk measures are mitigated with this project: This project mitigates the risk of having inadequate potable water and fire flows to the City's east and northeast areas. What regulations or standards are attained with this project: Potable water and fire flow standards. How is this project leveraged with other stakeholders/projects/funds: This project leverages improvements in delivery of water due to the Sourdough Main replacement or paralleling. It will also enable siting of storage in the City's east and northeast areas. ALTERNATIVES CONSIDERED None ADVANTAGES OF APPROVAL The creation of an East Water Transmission Main is necessary to supply adequate water and fire flows to future developments in the eastern portion of the City’s distribution system. This transmission line will also provides additional looping and redundancy to the City. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual Operating & Maintenance Costs: Impact Fees can not be spent on annual operations and maintenance costs. The Water Utility will see incremental increases in general maintenance costs. FUNDING SOURCES Developer contributions New Replacement Equipment Project FY20 FY21 FY22 605 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF31 DEPARTMENT WATER IMPACT FEES PROJECT NAME Groundwater Test Well FY18 $400,000 FY19 Unscheduled DESCRIPTION OF PROJECT Test well drilling, pumping and monitoring and water quality testing at one or more strategic well field sites identified in the 2016 Groundwater Investigation. Input data into transient hydrogeologic model developed with Groundwater Investigation project. Describe the criticality (i.e., importance) of this project to the operation: Necessary for water right permitting and groundwater well field design. What regulations or standards are attained with this project: Provides data to move forward with GW development. How is this project leveraged with other stakeholders/projects/funds: Utilizes hydrogeologic model developed for the Groundwater Investigation and constructs design. Are there other affected projects: Groundwater well field and transmission design; Groundwater construction. ALTERNATIVES CONSIDERED Don't develop a GW supply ADVANTAGES OF APPROVAL Test well pumping and monitoring provides aquifer property data to determine sustainable aquifer yield and drawdown characteristics at particular pumping sites. Data informs transient groundwater modeling which is necessary to identify potential adverse effects to existing water rights and to assemble mitigation strategies for water rights permitting. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED N/A FUNDING SOURCES 100% Water Impact Fees New Replacement Equipment Project FY20 FY21 FY22 606 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF32 DEPARTMENT WATER IMPACT FEES PROJECT NAME Groundwater Well Field and Transmission Construction FY18 FY19 Unscheduled DESCRIPTION OF PROJECT Water right permitting and mitigation plan; purchase of mitigation water rights; construction of aquifer recharge or other mitigation infrastructure; acquisition of land for well field site; construction of wells, power, power backup, instrumentation and controls, SCADA, control building and site improvements; and transmission main construction to tie GW supply into the existing system. Describe the criticality (i.e., importance) of this project to the operation: Absolutely critical for meeting long-range water supply needs and enhancing overall water supply resiliency and redundancy. How is capacity affected by this project: Increases water supply capacity to meet projected water demands in the future. How is connectivity affected by this project: Enhances connectivity by providing a redundant water supply source in the event of Sourdough WTP outage. What safety or risk measures are mitigated with this project: Enhances overall water supply resiliency. What regulations or standards are attained with this project: Implements IWRP. How is this project leveraged with other stakeholders/projects/funds: Implements IWRP. Engages agricultural stakeholders. ALTERNATIVES CONSIDERED Status quo operation ADVANTAGES OF APPROVAL Improve water distribution operations through increased understanding of system operating characteristics. Improve responsiveness to dynamic operating conditions. Facilitate improved access to existing sites now requiring confined space entry procedures. Standardize and improve surge control features throughout system. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Debt service (if any) to construct, power costs, SCADA maintenance, vault maintenance, instrument maintenance, programming libraries FUNDING SOURCES Capital funding for water right permitting and water could be augmented with cash in lieu of water rights fund, water fund New Replacement Equipment Project FY20 $8,000,000 FY21 FY22 607 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF33 DEPARTMENT WATER IMPACT FEES PROJECT NAME Groundwater Well Field and Transmission Main Design FY18 FY19 $500,000 Unscheduled DESCRIPTION OF PROJECT Design of groundwater well field and transmission main including necessary appurtenances, instrumentation and controls, and DEQ approvals. Describe the criticality (i.e., importance) of this project to the operation: Necessary for construction of groundwater supply source. What regulations or standards are attained with this project: DEQ construction approval for groundwater supply source; amendments if needed to other DEQ documents such as Source Water Delineation and Assessment Report and Source Water Protection Plan. How is this project leveraged with other stakeholders/projects/funds: Utilizes hydrogeologic model developed for the Groundwater Investigation and test well data. Are there other affected projects: Groundwater Well Field and Transmission Main Construction. ALTERNATIVES CONSIDERED Don't develop a GW supply ADVANTAGES OF APPROVAL Provides bid plans and cost estimates for construction and obtains DEQ approvals needed for construction. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED N/A FUNDING SOURCES 100% Water Impact Fees New Replacement Equipment Project FY20 FY21 FY22 608 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF35 DEPARTMENT WATER IMPACT FEES PROJECT NAME Lyman Tank and Transmission Main Construction FY18 FY19 Unscheduled DESCRIPTION OF PROJECT Construct a new 5MG storage tank at Lyman, decommission existing Lyman storage tank, Condition Assessment-based repairs of the existing Lyman transmission main, new supply main tie in to new storage tank, new transmission main tie in from new storage tank to existing transmission main, new chlorination/fluoridation feed facility. Decommission Pear Street Booster Station if Hydraulic Grade Line of tank raised to meet Sourdough Tank. Describe the criticality (i.e., importance) of this project to the operation: The Lyman water supply is a critical element of the city's overall water supply portfolio accounting for roughly 20% of annual supply volume to the city currently. The source provides supply redundancy and resiliency as it is geographically removed from the Sourdough/Hyalite source and provides an independent connection to the distribution system. How is capacity affected by this project: The effective available water supply is increased since the new storage system will not leak and will expand the number of customers able to be supplied by Lyman water. How is connectivity affected by this project: Maintains existing connectivity. What safety or risk measures are mitigated with this project: Likelihood of failure of Lyman supply system dramatically reduced by replaced storage, new transmission and Condition Assessment -based rehab to existing transmission. How is this project leveraged with other stakeholders/projects/funds: Constructs project design. ALTERNATIVES CONSIDERED Status quo operation of existing Lyman system ADVANTAGES OF APPROVAL Replaces Lyman storage tank which is at the end of its useful life. Increases effective available supply as existing tank leaks at a rate exceeding 100 gpm. If new storage sited at an elevation to match HGL of Sourdough Tank then Pear Street Booster Station can be decommissioned which reduces annual operating costs for power. CA-based rehab reduces likelihood of failure of critical transmission infrastructure. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Anticipated operating cost reduction related to pear street booster decommissioning. Operating costs for new tank and transmission comparable to FUNDING SOURCES 60% Water Impact Fees ($4,800,000); 40% Water Utility ($3,200,000) New Replacement Equipment Project FY20 FY21 $4,800,000 FY22 609 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF36 DEPARTMENT WATER IMPACT FEES PROJECT NAME West Transmission Main Planning Study FY18 FY19 Unscheduled $400,000 DESCRIPTION OF PROJECT Planning study to identify key design parameters for WTM, right of way, route alignment, and timing for bringing WTM online. Describe the criticality (i.e., importance) of this project to the operation: Eventual construction of the West Transmission Main is necessary to provide redundancy for the Sourdough Transmission Main as well as adequate potable water and fire flow for the City's west, northwest and north areas. How is capacity affected by this project: Provides capacity sufficient for UBO and delivery of 34 MGD from future WTP expansion. How is efficiency improved with this equipment: Conveyance of water to the City's western, northwestern and northern areas will be more efficient that moving water through downtown and existing PRVs. Are there other affected projects: All subsequent phases of West Transmission Main design and construction. ALTERNATIVES CONSIDERED Defer the study further out, deferring eventual construction of the West Transmission Main. ADVANTAGES OF APPROVAL What are the implications of deferring the purchase of this equipment: Delay of eventual design and construction of the West Transmission Main, continued reliance on the single-point-of-failure Sourdough Transmission Main to convey water to the City from the WTP. Identify key design parameters, right-of-way, route and permitting for the West Transmission Main, so that design and construction can proceed once funds are available. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED FUNDING SOURCES 100% Water Impact Fees New Replacement Equipment Project FY20 FY21 FY22 610 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF37 DEPARTMENT WATER IMPACT FEES PROJECT NAME Sourdough Canyon Natural Storage - Planning and Design FY18 FY19 Unscheduled DESCRIPTION OF PROJECT Alternatives planning and design for sourdough natural storage enhancement project. Describe the criticality (i.e., importance) of this project to the operation: Increases resiliency of Sourdough watershed to drought impacts and provides augmented water supply, protects existing municipal water rights. How is capacity affected by this project: Augments water supply capacity of sourdough watershed. What is the impact (i.e., scope-of-use) for this equipment: Impacts the City's long-term water rights and helps close the approaching water supply gap. How is this project leveraged with other stakeholders/projects/funds: Potential FEMA involvement for flood control. Are there other affected projects: Final sizing of West Transmission Main, also informs long-term groundwater needs. ALTERNATIVES CONSIDERED Postpone ADVANTAGES OF APPROVAL Implements IWRP, augments Sourdough water supply capacity, and increases resiliency of Sourdough water supply by providing 'storage' to reduce the susceptibility of drought impacts ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Unknown FUNDING SOURCES Potential opportunity for federal drought and flood hazard mitigation grants, state RRGL funds. Cash in lieu of water rights fund. New Replacement Equipment Project FY20 $500,000 FY21 FY22 611 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF38 DEPARTMENT WATER IMPACT FEES PROJECT NAME Sourdough Canyon Natural Storage Construction FY18 FY19 Unscheduled $8,000,000 DESCRIPTION OF PROJECT Construction of natural water storage infrastructure alternatives planned and designed in project WFP_53 that augment water supply availability, reduce susceptibility to drought impacts, and maximize existing water rights. Describe the criticality (i.e., importance) of this project to the operation: Provides enhanced water supply availability to support future growth and development. How is capacity affected by this project: Increases water supply availabilityWhat safety or risk measures are mitigated with this project: Reduces drought susceptibility and peak runoff impacts. What regulations or standards are attained with this project: Implements IWRP. How is this project leveraged with other stakeholders/projects/funds: To be determined. Leveraging potential exists with federal/state grants, federal/state cooperative agreements (consistent with fed initiatives to increase drought resiliency in western states and consistent with recommendations in state water plan to increase storage in closed basins). Project implements recommendations of the IWRP to develop storage in Sourdough. ALTERNATIVES CONSIDERED Project specific alternatives evaluated with project WFP_53. Water supply alternatives evaluated in IWRP. ADVANTAGES OF APPROVAL Augments Sourdough Creek water supply, reduces susceptibility to drought impacts and maximizes existing water rights ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Unknown FUNDING SOURCES Federal hazard mitigation grants (drought hazard and flood hazard). State renewable resource grant and loan program. New Replacement Equipment Project FY20 FY21 FY22 612 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF39 DEPARTMENT WATER IMPACT FEES PROJECT NAME Sourdough Transmission Main – Phase 1 FY18 $2,790,000 FY19 Unscheduled DESCRIPTION OF PROJECT The project consists of constructing approximately 3,000 feet of 48-inch DIP transmission main, starting at the WTP, cutting the corner at Nash and Sourdough, to tie into the existing transmission main. Describe the criticality (i.e., importance) of this project to the operation: This project is critical to overcome vulnerabilities presented by the aging and unknown condition of the existing transmission main between the City's WTP and Sourdough Tank. How is capacity affected by this project: This transmission main will provide additional capacity from the WTP to the Sourdough reservoir. How is connectivity affected by this project: This project improves connectivity between the WTP and the City. What safety or risk measures are mitigated with this project: The risk of not having adequate potable water and fire flow supplies to the City in the event of a failure to the existing bar-wrapped 30" main. Provides redundant transmission from WTP to tie in point with existing 30" bar-wrapped concrete transmission main. What regulations or standards are attained with this project: Water supply security. How is this project leveraged with other stakeholders/projects/funds: This project's provides full hydraulic capacity of new Sourdough WTP storage tank. Are there other affected projects: Sourdough WTP Storage Tank and Phase 2 of Sourdough Transmission Main. ALTERNATIVES CONSIDERED Conduct a condition assessment of the existing 30-inch concrete pipe and repair/rehabilitate as necessary. Lose hydraulic capacity of new sourdough WTP storage tank due to HGL of existing sourdough transmission main. ADVANTAGES OF APPROVAL The condition of the existing transmission main from the WTP to the Sourdough reservoir is currently unknown. Approval of this project will provide redundancy for this main, and mitigate the risk and consequence of its failure. 48" DIP provides hydraulics necessary to overcome friction losses and realize full capacity of new Sourdough WTP storage tank. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual Operating & Maintenance Costs: Impact Fees can not be spent on annual operations and maintenance costs. The Water Utility will see incremental increases in general maintenance costs. FUNDING SOURCES 90% Impact Fees ($2,790,000); 10% ($310,000) Water Utility New Replacement Equipment Project FY20 FY21 FY22 613 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF40 DEPARTMENT WATER IMPACT FEES PROJECT NAME Sourdough Transmission Main – Phase 2 FY18 FY19 Unscheduled DESCRIPTION OF PROJECT The project consists of constructing approximately 8,000 feet of 30-inch DIP transmission main, which will start at the end of the Phase 1 connection point and go to the Sourdough Plant. Describe the criticality (i.e., importance) of this project to the operation: This project is critical to overcome vulnerabilities presented by the aging and unknown condition of the existing transmission main between the City's WTP and Sourdough Tank. How is capacity affected by this project: This transmission main will provide additional capacity from the WTP to the Sourdough reservoir. How is connectivity affected by this project: This project improves connectivity between the WTP and the City. What safety or risk measures are mitigated with this project: The risk of not having adequate potable water and fire flow supplies to the City in the event of a failure to the existing bar-wrapped 30" main. What regulations or standards are attained with this project: Water supply security. How is this project leveraged with other stakeholders/projects/funds: This project's cost and administration could be improved if combined with the new 3,000 feet of 48" bypass pipe. ALTERNATIVES CONSIDERED Conduct a condition assessment of the existing 30-inch concrete pipe and repair/rehabilitate as necessary. ADVANTAGES OF APPROVAL The condition of the existing transmission main from the WTP to the Sourdough reservoir is currently unknown. Approval of this project will provide redundancy for this main, and mitigate the risk and consequence of its failure. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual Operating & Maintenance Costs: Impact Fees can not be spent on annual operations and maintenance costs. The Water Utility will see incremental increases in general maintenance costs. FUNDING SOURCES 90% Impact Fees ($4,320,000); 10% ($480,000) New Replacement Equipment Project FY20 $4,320,000 FY21 FY22 614 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF41 DEPARTMENT WATER IMPACT FEES PROJECT NAME West Transmission Main - Phase 1 Design FY18 FY19 Unscheduled $2,907,235 DESCRIPTION OF PROJECT Design of the first phase of the West Transmission Main, the criteria for which would be developed in the West Transmission Main Planning Study (WFP_01b). Describe the criticality (i.e., importance) of this project to the operation: Reduces the consequence of a failure on the Sourdough Transmission Main, by providing a second pipeline to convey water to the City from the WTP. How is efficiency improved with this equipment: Water delivery to the City's western side will become more efficient. What are the implications of deferring the purchase of this equipment: Continued reliance on Sourdough Transmission Main, a single point of failure for conveyance of water from the Sourdough WTP. Are there other affected projects: Subsequent phases of West Transmission Main design and construction, construction of storage reservoirs on the City's west side. ALTERNATIVES CONSIDERED Defer design and construction of West Transmission Main ADVANTAGES OF APPROVAL Potential to install the transmission main before significant growth and development occur along the route, reduced consequence of failure to Sourdough Transmission Main ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED FUNDING SOURCES 100% Water Impact Fees New Replacement Equipment Project FY20 FY21 FY22 615 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF42 DEPARTMENT WATER IMPACT FEES PROJECT NAME West Transmission Main - Phases 2-5 Design & Construction FY18 FY19 Unscheduled $61,669,396 DESCRIPTION OF PROJECT The project consists of remaining phases (2 thru 5) of the west Transmission Main, completing the transmission loop around the city's western flank. Describe the criticality (i.e., importance) of this project to the operation: Extending the West Transmission Line further north into the City's future western and northwestern developments to ensure adequate potable water and fire flow for west and northwest Bozeman residents. How is capacity affected by this project: This project will substantially improve water delivery and fire flow capacity in the west and northwest portions of the City. How is connectivity affected by this project: The northwest portion of the City remains the least well connected area to the distribution system. Flow to the northwest must come through the existing PRVs from the Sourdough and Hilltop Tanks, or from the northeast Lyman source. This main will bring water from the WTP well into the northwest portion of the City. What safety or risk measures are mitigated with this project: This project mitigates the risk of not having enough potable water or fire flow to serve the City's west residents. What regulations or standards are attained with this project: Redundant water delivery infrastructure and sufficient fire flow for the central-western and northwestern portions of the City. How is this project leveraged with other stakeholders/projects/funds: This project will provide the ability for the City to connect additional storage reservoirs on the City's southwest and west to satisfy maximum day demand and fire flows. Are there other affected projects: Subsequent phases of the West Transmission Main. ALTERNATIVES CONSIDERED Do not complete west transmission main loop. ADVANTAGES OF APPROVAL Further extending the West Water Transmission Main would provide the following: distribution redundancy, and adequate water supply and fire flows for future development on the City's west and northwest sides. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual Operating & Maintenance Costs: Impact Fees can not be spent on annual operations and maintenance costs. The Water Utility will see incremental increases in general maintenance costs. FUNDING SOURCES Developer contributions New Replacement Equipment Project FY20 FY21 FY22 616 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF43 DEPARTMENT WATER IMPACT FEES PROJECT NAME DEBT SERVICE FOR BORROWING - WELL FIELD FY18 FY19 Unscheduled $10,800,000 DESCRIPTION OF PROJECT These are the estimated annual amounts owned for borrowing for WIF32 - Well Field and WIF40 - Sourdough Transmission Main project. Payments will begin in the fiscal year following borrowing. ALTERNATIVES CONSIDERED None ADVANTAGES OF APPROVAL The project can be constructed before cash is on hand. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual Operating & Maintenance Costs: Impact Fees can not be spent on annual operations and maintenance costs. The Water Utility will see incremental increases in general maintenance costs. FUNDING SOURCES Water Utility Revenue Bonds will be issued, with repayments made by the Impact Fee Fund. New Replacement Equipment Project FY20 FY21 $1,000,000 FY22 $1,000,000 617 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF44 DEPARTMENT WATER IMPACT FEES PROJECT NAME DEBT SERVICE FOR BORROWING - LYMAN TANK PROJECT FY18 FY19 Unscheduled $446,000 DESCRIPTION OF PROJECT These are the estimated annual amounts owned for borrowing for WIF35 - Lyman Tank project. ALTERNATIVES CONSIDERED None ADVANTAGES OF APPROVAL The project can be constructed before cash is on hand. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual Operating & Maintenance Costs: Impact Fees can not be spent on annual operations and maintenance costs. The Water Utility will see incremental increases in general maintenance costs. FUNDING SOURCES Water Utility Revenue Bonds will be issued, with repayments made by the Impact Fee Fund. New Replacement Equipment Project FY20 FY21 FY22 $340,000 618 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF45 DEPARTMENT WATER IMPACT FEES PROJECT NAME DEBT SERVICE FOR BORROWING - TRANSMISSION MAIN FY18 FY19 Unscheduled $3,750,000 DESCRIPTION OF PROJECT These are the estimated annual amounts owned for borrowing for WIF40 - Sourdough Transmission Main project. Payments will begin in the fiscal year following borrowing. ALTERNATIVES CONSIDERED None ADVANTAGES OF APPROVAL The project can be constructed before cash is on hand. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual Operating & Maintenance Costs: Impact Fees can not be spent on annual operations and maintenance costs. The Water Utility will see incremental increases in general maintenance costs. FUNDING SOURCES Water Utility Revenue Bonds will be issued, with repayments made by the Utilty (10%) and Impact Fee Fund (90%). New Replacement Equipment Project FY20 FY21 $305,000 FY22 $305,000 619