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Home My WebLink AboutBozeman Impact Fees Proposal FINALAdvanced Engineering and Environmental Services, Inc. 1050 E Main Street, Suite 2 • Bozeman, MT 59715 • 406-219-2633 www.ae2s.com January 13, 2017 Chris Saunders Policy and Planning Manager City of Bozeman PO Box 1230 Bozeman, MT 59771 Re: Delivering Fair and Equitable Water and Wastewater Impact Fees Dear Mr. Saunders: e City of Bozeman is clearly commi ed to charging fair and equitable impact fees for its utilities. You are now set to embark on your next round of impact fee updates. AE2S/AE2S Nexus has the right combination of nancial and engineering acumen, local presence and knowledge, and proven experience with an understanding of Montana statutes to help you best complete these updates for your water and wastewater utilities. By selecting AE2S/AE2S Nexus, you will receive: Comprehensive Solutions through a Unique Combination of Engineering and Financial Acumen: - AE2S Nexus’ marriage of nancial and engineering expertise enables us to truly “get” how everything works together to form the big picture. We have a proven track record of assisting similar utilities achieve revenue stability and rate equitability. rough our proven approach to analyses of this nature, our work will form the basis and justi cation for any impact fee adjustments needed to fairly and equitably charge development for historic, current (WIP), and future (CIP) investment. Local Presence and Knowledge: Your Client Manager, Sco Buecker, is located in our Bozeman o ce, not only providing you with fast, in-person responsiveness, but also providing our team with an in-depth understanding of Bozeman, its opportunities and challenges, and its water and wastewater infrastructure. Sco ’s work on the recent Bozeman Water System Master Plan Update will allow our team to be the most e cient with quickly and accurately identifying development driven investments that are subject to inclusion in the updated impact fee calculations. Proven Experience with and Understanding of Montana Impact Fee Statutes: We have worked with, and completely understand Montana nance statutes, as they pertain to a study of this nature. We recently completed a very similar project for Montana’s largest municipality, the City of Billings, and are just starting one for the City of Belgrade. We’ve also completed nancial studies for numerous municipalities around the region, including White sh. We look forward to further discussing our approach and ideas with you. Please contact me with any questions or clari cations; I can be reached at 701-746-8087, on my cell at 218-791-5847, or by email at Ryan.Graf@ae2s.com. Submi ed in Service, AE2S Ryan Graf Project Manager AE2S Ryan Graf Project Manager 1. PROJECT SUMMARY 5. OUTLINE OF SERVICES 2. COMPANY DESCRIPTION/ CAPABILITY 6. COST AND EXPENSES 3. PROJECT TEAM 7. AFFIRMATION OF NONDISCRIMINATION 4. REFERENCES AE2S BOZEMAN IMPACT FEE COST OF SERVICE STUDIES PROPOSAL 1.1 Growth Paying for Growth e City of Bozeman is requesting proposals for the required update to their impact fees for water, sewer, transportation, and EMS/Fire. Given our company’s speci c focus in the areas of water and wastewater consulting services, our team is proposing for the updates to the water and sewer impact fees only. As a rapidly growing community, Impact Fees are an important source of revenue for the City of Bozeman and provide a way for the City to provide critical services required to allow for continued development. At its core, an impact fee helps to fairly and equitably charge development for the costs associated with building and maintaining infrastructure to serve that development. e goals (and deliverable) of this study will be to provide that fair, equitable, and defensible fee that allows the City to recoup the costs associated with serving development and truly having growth pay for growth. Dependable System Knowledge At the core of developing an e ective impact fee is a true understanding of your system, its basis of design, operation, and plan for future growth. Our project team’s knowledge of your water and sewer systems makes us well quali ed to review and update the impact fees for each. With our rst-hand knowledge of how your system serves growth and is planning to continue that high-level of service, we are best positioned to conduct this review, ensuring that impact fees are fair, equitable, and defensible. On-Point and On-Time Our team has reviewed, developed, and integrated impact fees for other communities throughout Montana in both stand-alone fashion and through an overall rate update. is experience allows us to develop impact fees that are on point and defensible. Our availability and knowledge of your system will allow us to do this in a manner that is both e cient and comprehensive. While the RFP allows for a 12-month window, we propose developing water and sewer impact fees concurrently over a 7-month period. e proposed plan of implementation and schedule is below. Our approach will provide a logical walk through of the methodology followed by the model development with appropriate check-ins and update meetings along the way. 1 PROJECT SUMMARY Kickoff, Admin., & Methodology Review Detailed Methodology Update Model Development Draft Results Final Results & Documentation Project Complete Meeting with Advisory Committee Draft Results Meeting Final Deliverable Final Results Kickoff MeetingGeneral Workshop *Schedule is based upon the contract being awarded in March, but can be adjusted based on actual award date. AE2S BOZEMAN IMPACT FEE COST OF SERVICE STUDIES PROPOSAL 2.1 COMPANY DESCRIPTION/CAPABILITY 2 Advanced Engineering and Environmental Services, Inc. (AE2S) is a specialized environmental consulting engineering rm that provides a broad range of professional services and our unique brand of extreme client service to municipal, rural, and industrial clients. AE2S was established in 1991 by President Charles S. Vein, PE and CEO Steve L. Burian, PE. We have o ces located in Bozeman, Great Falls, and Kalispell, MT; Fargo, Grand Forks, Watford City, Williston, Dickinson, Minot, and Bismarck ND; Maple Grove and Moorhead, MN; Sioux Falls, Rapid City, and Spear sh, SD; Madison, WI; and Salt Lake City, UT. Among our o ces, AE2S has over 275 nancial analysts, engineers, technicians, surveyors, computer programmers, and administrative personnel. Our primary service is water - meaning water, wastewater, and water resources system consulting, which represents approximately 70 percent of our annual revenues. Since 1999, AE2S has established itself as a regional resource for nancial rate making assistance beyond our reputation as strong drinking water and wastewater specialists. e experience of our nancial group has become a critical component of our water and wastewater services, bolstering the nancial stability of our clients. We have not only conducted nancial analyses and presented the results, but we have been available for follow-up consultation and guidance as our clients worked through the rate ordinance and/ rate negotiation processes. We believe so strongly in supporting our clients in this important aspect of utility management that in 2002 we completed our rst annual North Central Regional Utility Rate Survey to provide backing for the work of our clients and serve as a resource for utility management in our region (for clients and non-clients). is July, the 15th Annual Utility Rate Survey will go out to nearly 400 utilities across Montana, North Dakota, South Dakota, Minnesota, Utah, and Wyoming. AE2S Nexus In 2010, AE2S launched AE2S Nexus, a dedicated division developed to assist public and private clients with issues beyond engineering services. From our traditional nancial roots in cost of service analysis, rate design, revenue adequacy analysis, and rate modeling dating back to 1999, AE2S Nexus has grown into a complete nancial resource for our clients. As a registered municipal advisor, AE2S Nexus provides project development and administration services, utility rate planning and long-term nancial planning, and support with project funding and nancing programs. Together, these services allow AE2S Nexus to serve as a valuable resource for our clients and partners to ensure their nancial success. EXPERTS IN UTILITY FINANCIAL MANAGEMENT AE2S Nexus was built to focus on utility financial management. This focus allows us to provide you with specialized service that fits the needs and challenges of your Utility. Our team of Registered Municipal Financial Advisors have helped several clients similar to you complete impact fee analyses. UNMATCHED WATER & WASTEWATER KNOWLEDGE AE2S was founded on water and we have maintained that intense focus. Our water and wastewater engineers understand all the details that go into both improving and maintaining sustainable utilities. They have been through the process of setting impact fees and proactively planning for the future and will be assisting our AE2S Nexus team throughout the entire project. LOCAL PRESENCE AND KNOWLEDGE Plain and simple, we are all about client service. We’ve built our company around the needs of our clients. We’ll serve you out of our Bozeman office, which is literally just minutes away from your office. Our presence and prior Bozeman work has provided us with a strong understanding of your water and wastewater utilities. AE2S BOZEMAN IMPACT FEE COST OF SERVICE STUDIES PROPOSAL 2.2 BILLINGS WATER AND WASTEWATER RATE STUDY In 2014, the City of Billings retained AE2S Nexus to update its existing water and wastewater rate models and recommend rates for the 2015 fiscal year (FY15). As part of the process, AE2S was asked to calculate a System Development Fee (SDF) for a large industrial user connecting to the wastewater system. In late 2014, the City of Billings again retained AE2S Nexus to complete a comprehensive update to its water and wastewater cost of service rate models, as well as the water and wastewater SDF models. The project involved a detailed review of the system and assumptions associated with how costs are incurred within the system and which users are driving the costs. SDF development through this project focused on bringing legacy information up to date with current Montana statutes and providing critical updates to methodology in both the case of the large industrial user and the system as a whole. This was well received by the City and led to our team being selected for rate updates through FY21. Agency: City of Billings, MT Contact: Jennifer Duray Public Works Finance Manager 406-657-8239 durayj@ci.billings.mt.us Population: 115,000 # of Employees: 850 Project Start: January 2014 Project Completion: June 2014 WATFORD CITY INFRASTRUCTURE AND FINANCIAL PLANNING With the recent boom in energy development in Western ND, Watford City has been experiencing growth in excess of 10 percent annually and dealing with the challenges of paying for new infrastructure without burdening existing residents. As the city planned for a new wastewater treatment plant, AE2S Nexus was instrumental in the overall funding plan for the project. An innovative mix of potential State grants and growth-related fees was identified to offset costs from construction of the new facility. For the growth-related fees, the AE2S Nexus team was asked to design and calculate an impact fee for the community to recoup the growth- driven costs of this new asset. Due to the rapidly changing conditions resulting from growth, utility revenues and revenue requirements were forecasted for a three year time period. AE2S used this information, as well as information from the previous master planning efforts to develop an impact fee that contained associated costs per unit of service and a variety of user profiles in the overall distribution of those costs. Agency: City of Watford City, ND Contact: Curt Moen City Planner 701-444-2533 cumoen@nd.gov Population: 5,000 # of Employees: 50 Project Start: September 2013 Project Completion: January 2014 BOZEMAN WATER SYSTEM MASTER PLAN UPDATE In 2015, the City of Bozeman selected the AE2S team to update its water facility plan. The project included updating the City’s existing hydraulic model. In addition, the team did a thorough and detailed assessment of the City’s critical water transmission infrastructure, in order to identify assets with the highest risk (for example, single points of failure, known deteriorated assets, etc.). For capital improvement planning, the team developed a unique prioritization matrix which incorporated specific language from the City’s planning documents and allows City staff to continually reevaluate and reprioritize improvements as needs dictate over the coming years. Other evaluations included in the plan are a detailed evaluation of alternatives capable of reducing system water pressure, and the potential to incorporate non-potable irrigation into future developments. Agency: City of Bozeman, MT Contact: Craig Woolard Public Works Director 406-582-2273 cwoolard@bozeman.net Population: 43,000 # of Employees: 406 Project Start: August 2015 Project Completion: In Progress AE2S BOZEMAN IMPACT FEE COST OF SERVICE STUDIES PROPOSAL 2.3 CAPABILITY TO MANAGE PROJECT OF THE SIZE AND SCOPE PROPOSED AE2S and AE2S Nexus have a proven history of successfully completing projects of similar size and scope to your project. Projects of similar size and scope that we’ve completed include: City of Billings Water and Wastewater Rate Update, City of Fargo Annual Water and Wastewater Rate Update, City of Grand Forks Multi- Year Infrastructure Master Planning, City of Eden Prairie Water and Wastewater Rate Analysis, City of Williston Growth Impacts Forecasting, City of Rapid City Water and Wastewater Rate Analysis, and City of Grand Forks Wastewater Interconnect Financial Planning. SIOUX FALLS WASTEWATER INDUSTRIAL DEVELOPMENT IMPACTS ANALYSIS In 2015, AE2S Nexus was retained by the City of Sioux Falls to complete an analysis of the financial impacts associated with extending new wastewater service to a planned industrial development area. Analysis consisted of outlaying of capital costs associated with industrial development area, calculation of appropriate cost recoveries for new infrastructure, quantification of projected cost recovery revenue, and resulting utility rate and wastewater fund impacts. Scenarios including impacts with and without high strength wastewater industries were also evaluated to better gauge the impact on development. Agency: City of Sioux Falls, SD Contact: Trent Lubbers Utility Operations Administrator 605-367-8698 tlubbers@siouxfalls.org Population: 175,000 # of Employees: 52 (Water Reclamation) Project Start: January 2015 Project Completion: May 2015 WESTERN DAKOTA ENERGY ASSOCIATION IMPACTS FORECASTING With the volatile growth of the energy industry creating uncertain demands on local government and the need for significant planning updates, operational increases, and capital improvements, AE2S Nexus was retained to evaluate and quantify the overall fiscal impacts from the increased service demands being realized for six core communities throughout Western ND. The evaluation is providing a broad outlook for capital infrastructure needs and increased levels of service to meet a rapidly changing population base. The overall capital plan provides insights into upfront capital costs resulting from an influx of population and changing economic base. However, new capital also results in changes to the operational plan for the communities. Ultimately, AE2S Nexus will develop a 6-year capital, operational, and staffing impact analysis for each of the communities as well as a generalized look across the entire area to help inform the resource allocation process during the 65th Legislative Session. Agency: Western Dakota Energy Assoc. Contact: Geoff Simon Executive Director 701-527-1832 geoff@ndenergy.com Population: 60,000 (Combined) # of Employees: 400+ (Combined) Project Start: March 2016 Project Completion: Anticipated February 2017 BELGRADE INTEGRATED WATER AND SEWER PLANNING In 2016, the AE2S/TD&H team contracted with the City of Belgrade to provide the City with an Integrated Water and Sewer Planning Study, which includes a rate study linking engineering, financing, and policy. The services will include preparation of a Preliminary Engineering Report addressing water and wastewater system needs, as well as general grant writing and related grant administration and management. The project also includes an analysis of water and wastewater impact fees. Project work is currently underway and is expected to wrap-up in the 3rd quarter of 2017. Agency: City of Belgrade, MT Contact: Steve Klotz Public Works Director 406-388-3764 sklotz@cityofbelgrade.net Population: 7,389 # of Employees: 40 Project Start: August 2016 Project Completion: In Progress AE2S BOZEMAN IMPACT FEE COST OF SERVICE STUDIES PROPOSAL 3.1 e team assembled for your project provides you with: • Understanding of and experience working with Montana nancial statutes. • Extensive experience with Cost of Service Analysis, Impact Fees, and Municipal Financial Services - Including helping Montana’s largest municipality (Billings) with Impact Fees as part of their water and wastewater rate studies. • Local Presence and Knowledge - Sco Buecker is located in Bozeman (literally minutes away from your o ce), and recently worked with the City on the Water System Master Plan Update, providing him with in-depth knowledge of the water utility. • A balance of both nancial and engineering expertise, combined with perspective from having worked both with municipalities and developers. is provides us with a big picture view that enables us to develop solutions that are fair and equitable to all parties involved. An organization chart is provided below to illustrate how the team will interact with the City and one and other. Resumes detailing team members’ quali cations and experience follow. 3 PROJECT TEAM CITY OF BOZEMAN Project Manager Availability: 45% , Technical Advisor / QA/QC Availability: 20% , Client Manager Availability: 20% , Support Financial Analyst Availability: 60% PUBLIC INFORMATION SPECIALIST Our team will also leverage the service of AE2S’s dedicated public information specialists to aid in an open and transparent study process; helping to e ectively communicate results to all interested parties. AE2S BOZEMAN IMPACT FEE COST OF SERVICE STUDIES PROPOSAL 3.2 Ryan GrafProject Manager EDUCATION Master of Public Affairs, Public Finance and Policy Analysis, Indiana University; Bachelor of Arts, Political Science and French, University of North Dakota REGISTRATIONS Series 50 Municipal Advisor TRAINING Financial Management: Cost of Service Rate Making; AWWA CONTACT Ryan.Graf@ae2s.com T: 701-746-8087 C: 218-791-5847 Mr. Graf specializes in utility ﬁ nancial services, funding, project ﬁ nancing, public utility management, and asset management. His experience includes providing ﬁ nancial analysis and guidance for utility management, funding development, and rate setting. Ryan has worked with municipal water, wastewater, storm water, and solid waste utilities, as well as rural water systems, in the evaluation of energy e ciency options, rate studies, and best practice consultations. • Water and Wastewater Rate Study, Billings, MT - Financial Analyst. Cost of service and rate design study for the City’s water and wastewater utilities. e project included updates to water and wastewater cost of service-based rate models, and recommendations for FY15 rates for retail and resale water customers and retail and wholesale wastewater customers. In addition, worked with the City to develop a wastewater System Development Fee for a new industrial wastewater customer based on the existing SDF approach utilized by the City. • Wastewater Capital Funding, Watford City, ND - Financial Analyst. Design and calculation of an impact fee for the community to recoup the costs of the new wastewater treatment facility. e fee, a rst for the city, resulted in an impact fee per unit of development that took into account contributed capital on the upfront costs and a variety of user pro les in the overall distribution of those costs. • Western Core Cities Energy Impact Analysis Western Dakota, Western Dakota Energy Association - Financial Analyst. Evaluated the overall scal impact of aggressive growth on the capital and operational service levels of six cities in Western North Dakota. EDUCATION Bachelor of Science, Chemical Engineering, University of North Dakota REGISTRATIONS Professional Engineer: North Dakota CONTACT Miranda.Kleven@ae2s.com T: 701-746-8087 C: 701-740-3388 Ms. Kleven routinely works closely with clients on ﬁ nancial issues as an extension of their sta . She has worked with municipal water, wastewater, stormwater, and solid waste utilities, as well as rural water systems, in the evaluation and implementation of fair and equitable cost of service-based rate structures and in the evaluation of revenue adequacy. • FY16/FY17 Water and Wastewater Rate Study Update, Billings, MT - Project Manager. Comprehensive update to the water and wastewater rate models, including veri cation of all previous assumptions, and developing rate recommendations for FY16 and FY17. e project also included updating both the water and wastewater SDF models. • FY15 Water and Wastewater Rate Study, Billings, MT - Financial Analyst. Cost of service and rate design study for the City’s water and wastewater utilities. e project included updates to water and wastewater cost of service-based rate models, and recommendations for FY15 rates for retail and resale water customers and retail and wholesale wastewater customers. In addition, worked with the City to develop a wastewater System Development Fee for a new industrial wastewater customer based on the existing SDF approach utilized by the City. • Water/Wastewater Financial Plan and Rate Structure Study, White sh, MT - Financial Analyst. Study that involved completion of cost of service rate analyses for the Water and Wastewater Utilities, review and development of potential modi cations to the existing rate structures, and forecasted revenue adequacy for both utilities. Speci cally, the study evaluated the nancial impacts to the City’s user base coinciding with the study of multiple wastewater treatment facility alternatives that were under consideration to address new numeric criteria for nitrogen and phosphorus removal. Miranda Kleven, PESupport Financial Analyst AE2S BOZEMAN IMPACT FEE COST OF SERVICE STUDIES PROPOSAL 3.3 Scott Buecker, PEClient Manager EDUCATION Master of Science, Civil and Environmental Engineering, University of Wisconsin REGISTRATIONS Professional Engineer: Montana, California CONTACT Scott.Buecker@ae2s.com T: 406-219-2633 C: 406-570-5184 Mr. Buecker is a design and consulting engineer with over 14 years of experience. He has worked as a project manager, design manager, and senior project engineer. His experience spans permitting and funding procurement, facilities planning, conceptual and preliminary design, preparation of ﬁ nal plans and speciﬁ cations, and construction management. • Water System Master Plan Update, Bozeman, MT - Project Manager. Facility Plan Update, including a water distribution system model update, re ow analysis, pressure zone and pressure reduction study, water audit, CIP development, and a non-potable irrigation system study. • Lyman Creek Water System Expansion, Bozeman, MT - Project Manager. Preparation of a Preliminary Engineering Report to evaluate various alternatives to increase the capacity of the Lyman Creek water supply system and optimize overall infrastructure operations. • Drought Management Plan, Bozeman, MT - Project Manager. Development of a drought management plan including drought monitoring, vulnerability assessment, mitigation actions, response actions, and operational and administrative framework. • Water and Wastewater Facility Plan, Belgrade, MT - Project Manager. Providing the City with an Integrated Water and Sewer Planning Study, which includes a rate study linking engineering, nancing, and policy. e services will include preparation of a Preliminary Engineering Report addressing water and wastewater system needs, as well as general grant writing and related grant administration and management. e project also includes an analysis of water and wastewater impact fees. EDUCATION Bachelor of Science, Civil Engineering, North Dakota State University REGISTRATIONS Professional Engineer: North Dakota TRAINING Financial Management: Cost of Service Rate Making; AWWA CONTACT Shawn.Gaddie@ae2s.com T: 701-746-8087 C: 701-866-3639 In addition to providing traditional water, wastewater, and storm water professional engineering services, Mr. Gaddie has spent a good portion of his career focusing on municipal and utility enterprise ﬁ nancial planning and infrastructure asset management. Shawn has helped a number of clients procure funding, conducted multiple cost of service, rate design, and revenue adequacy analyses for a number of utility enterprises throughout the region. This work has included water, wastewater, and storm water utilities. • Water and Wastewater Rate Study, Billings, MT - Technical Advisor / QA/QC. Cost of service and rate design study for the City’s water and wastewater utilities. e project included updates to water and wastewater cost of service-based rate models, and recommendations for FY15 rates for retail and resale water customers and retail and wholesale wastewater customers. In addition, worked with the City to develop a wastewater System Development Fee for a new industrial wastewater customer based on the existing SDF approach utilized by the City. • Wastewater Capital Funding, Watford City, ND - Project Manager. Design and calculation of an impact fee for the community to recoup the costs of the new wastewater treatment facility. e fee, a rst for the city, resulted in an impact fee per unit of development that took into account contributed capital on the upfront costs and a variety of user pro les in the overall distribution of those costs. Shawn Gaddie, PETechnical Advisor / QA/QC AE2S BOZEMAN IMPACT FEE COST OF SERVICE STUDIES PROPOSAL 4.1 4 REFERENCES A good client/consultant relationship is often described by words such as trust, responsiveness, quality, and loyalty. We strive to develop exceptional client/consultant relationships which go beyond the norm by adding the value of knowing that your consultants are an extension of your staff, devoted to the success of your utilities as a whole. We believe that exceptional relationships are the true measure of client satisfaction. We have highlighted specific references and invite you to contact them to learn more about the value of working with AE2S/AE2S Nexus. The City of Bozeman selected AE2S to update its water facility plan, which included updating the City’s existing hydraulic model. In addition, the team did a thorough and detailed assessment of the City’s critical water transmission infrastructure, in order to identify assets with the highest risk (for example, single points of failure, known deteriorated assets, etc.). For capital improvement planning, the team developed a unique prioritization matrix which incorporated specific language from the City’s planning documents and allows City staff to continually reevaluate and reprioritize improvements as needs dictate over the coming years. Other evaluations included in the plan are a detailed evaluation of alternatives capable of reducing system water pressure, and the potential to incorporate non-potable irrigation into future developments. In 2014, the City of Billings retained AE2S Nexus to update its existing water and wastewater rate models and recommend rates for the 2015 fiscal year. As part of the process, AE2S was asked to calculate a System Development Fee (SDF) for a large industrial user connecting to the wastewater system. In late 2014, the City of Billings again retained AE2S Nexus to complete a comprehensive update to its water and wastewater cost of service rate models, as well as the water and wastewater SDF models. The project involved a detailed review of the system and assumptions associated with how costs are incurred within the system and which users are driving the costs. AE2S Nexus is providing a critical analysis of the multi-family residential and outside user classes’ rate structure to determine if the existing structure adequately addresses the demands these user classes place on the system. SDF development through this project focused on bringing legacy information up to date with current Montana statutes and providing critical updates to methodology in both the case of the large industrial user and the system as a whole. This was well received by the City and led to our team being selected for rate udpates through FY21. CRAIG WOOLARD, Public Works Director City of Bozeman, MT 406-582-2273 cwoolard@bozeman.net Population: 43,000 # of Employees: 406 Project Start: August 2015 Project Completion: In Progress JENNIFER DURAY, Public Works Finance Manager City of Billings, MT 406-657-8239 durayj@ci.billings.mt.us Population: 115,000 # of Employees: 850 Project Start: January 2014 Project Completion: June 2014 AE2S BOZEMAN IMPACT FEE COST OF SERVICE STUDIES PROPOSAL 4.2 In 2015, AE2S Nexus was retained by the City of Sioux Falls to complete an analysis of the financial impacts associated with extending new wastewater service to a planned industrial development area. Analysis consisted of outlaying of capital costs associated with industrial development area, calculation of appropriate cost recoveries for new infrastructure, quantification of projected cost recovery revenue, and resulting utility rate and wastewater fund impacts. Scenarios including impacts with and without high strength wastewater industries were also evaluated to better gauge the impact on development. With the volatile growth of the energy industry creating uncertain demands on local government and the need for significant planning updates, operational increases, and capital improvements, AE2S Nexus was retained to evaluate and quantify the overall fiscal impacts from the increased service demands being realized for six core communities throughout Western ND. David Tuan was our contact for the Williston portion of this evalution. The evaluation is providing a broad outlook for capital infrastructure needs and increased levels of service to meet a rapidly changing population base. The overall capital plan provides insights into upfront capital costs resulting from an influx of population and changing economic base. However, new capital also results in changes to the operational plan for the communities. Ultimately, AE2S Nexus will develop a 6-year capital, operational, and staffing impact analysis for each of the communities as well as a generalized look across the entire area to help inform the resource allocation process during the Legislative Session. TRENT LUBBERS, Utility Operations Administrator City of Sioux Falls, SD 605-367-8698 tlubbers@siouxfalls.org Population: 175,000 # of Employees: 52 (Water Reclamation) Project Start: January 2015 Project Completion: May 2015 DAVID TUAN, City Administrator City of Williston, ND 701-577-6368 davidt@ci.williston.nd.us Population: 27,000 # of Employees: 200 Project Start: March 2016 Project Completion: Anticipated February 2017 “The City of Sioux Falls has been partnering with AE2S since 2005 on rate and forecasting models. The team at AE2S has been an exceptional partner and provided the City with a great return on our investment, ensuring that utility rates accurately reflect the cost of current operations and future growth and are properly allocated across all consumer groups.” - Tom Huber, Assistant Director of Finance City of Sioux Falls 605-367-8860 AE2S BOZEMAN IMPACT FEE COST OF SERVICE STUDIES PROPOSAL 5.1 5 OUTLINE OF SERVICES PROJECT APPROACH TASKS Task 1: Kickoff, Project Administration, and Methodology Review Task 2: Detailed Methodology Update Task 3: Model Development Task 4: Draft Results Task 5: Final Results and Documentation PROVEN PROCESS DELIVERS RELIABLE RESULTS AE2S/AE2S Nexus has refined their approach to projects like yours through our work with other communities throughout the state and the region. Our approach focuses on: • Developing fair, equitable, and defensible water and sewer impact fees to the benefit of the City, its residents, and new development. • Providing a high level of service to keep you informed and providing you with opportunities to give input throughout course of the project. • Engaging both City policymakers and the public in the broader discussion. AE2S BOZEMAN IMPACT FEE COST OF SERVICE STUDIES PROPOSAL 5.2 Regional and City of Bozeman- Specific Experience how you benefit Familiarity with Local Relationships, Current Basis for Rate-Setting, and Typical Approaches for Comparable Montana Systems how you benefit We Place Great Emphasis on Successfully Meeting the City’s Schedule Detailed and Comprehensive Scope of Work with Identified Milestones AE2S Nexus Brings... Task 1: Kickoff, Project Administration, and Methodology Review At the core of a fair, equitable, and defensible impact fee is a sound methodology. While the State of Montana outlines the basics of this methodology in state statute, the individual communities have some discretion in how it is implemented. The core of these requirements are outlined in the scope of services within the RFP. Upon selection, we will dive into the existing methodology and provide a review of how it currently meets: • Service Area; • Time Period; • Exclusion of O&M and other non-growth related costs; and • Capacity and unit of service nexus. This review provides a critical backdrop for our kickoff meeting (General Workshop) to be held with the Impact Fee Advisory Committee and the public. To facilitate public discussion during this meeting, our team includes a public information specialist that has experience working directly with the public and conveying complex financial / engineering information in a relatable way. This task includes one on-site meeting. Task 2: Detailed Methodology Update Where task 1 lays the groundwork to understanding how an impact fee is developed, task 2 gets down to the nuts and bolts of how best to apply an impact fee to Bozeman. Through this task, we will identify if any changes to the system’s infrastructure or operational approach warrant changes to the initial methodological baseline. Our first-hand knowledge of your system and how it works will prove invaluable through this task and help to ensure that we provide key decision makers with the right information to make the tough policy choices without overwhelming them with data. This task includes one meeting with the advisory committee. Task 3: Model Development With a solid methodological approach developed in task 2, our team will dive into developing the model that will actually calculate the various impact fees for both water and sewer. This task will incorporate the existing capital inventory, planned capital investments, user profile, and demand unit calculations to identify a fair and equitable impact fee for the various user classes and service areas. Task 4: Draft Results With the model fully developed, our team will present the draft results to both the impact fee advisory committee and the City Commission. Draft results will be staggered to allow for maximum feedback and participation among both groups as well as time to make adjustments prior to final results presentation. This task includes one on-site meeting and one electronic meeting. Task 5: Final Results and Documentation Upon review of the draft results and incorporating all appropriate changes, our team will produce the final results and full documentation necessary to maintain compliance with Montana statutes and ensure that the end result is fair, equitable, and transparent. Additional time will be devoted to developing key summary materials that can be used to effectively and succinctly convey the basis and costs of this impact fee to various audiences. This task will include one on- site meeting to present final results to the Impact Fee Advisory Committee and the City Commission. how you benefit Smooth Project Flow and Ability to Quickly Address New Items as they Arise Collaborative Approach Between AE2S Nexus Team and City Team AE2S BOZEMAN IMPACT FEE COST OF SERVICE STUDIES PROPOSAL 6.1 COST AND EXPENSES Please refer to sealed envelope. 6 AE2S BOZEMAN IMPACT FEE COST OF SERVICE STUDIES PROPOSAL 7.1AE2S BOZEMAN IMPACT FEE COST OF SERVICE STUDIES PROPOSAL 7.1 Advanced Engineering and Environmental Services, Inc. (AE2S) Statement of Non-discrimination – Attachment 1 ____________________________________(name of entity submitting) hereby affirms it will not discriminate on the basis of race, color, religion, creed, sex, age, marital status, national origin, or because of actual or perceived sexual orientation, gender identity or disability and acknowledges and understands the eventual contract will contain a provision prohibiting discrimination as described above and this prohibition on discrimination shall apply to the hiring and treatments or proposer’s employees and to all subcontracts. ______________________________________ Name and title of person authorized to sign on behalf of submitter Ryan Graf, Financial Analyst and treatments or proposer’s e ______________________________________ Name and title of person author 7 STATEMENT OF NON-DISCRIMINATION