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Home My WebLink About04-03-17 City Commission Packet Materials - C2. Impact Fee Credit at Ferguson and Babcock Commission Memorandum REPORT TO: Mayor and City Commission FROM: Chris Saunders, Policy and Planning Manager Martin Matsen, Community Development Director SUBJECT: Approval of impact fee credit IFCR-1701 for the signalization of the intersection of Ferguson Avenue and Babcock Street and authorize the City Manager to sign to the funding contract. MEETING DATE: April 3, 2017 AGENDA ITEM TYPE: Consent. RECOMMENDATION: Approve impact fee credit IFCR-1701 and authorize the City Manager’s signature on the funding contract. BACKGROUND: The FY2018-2022 CIP includes project SIF122 for the signalization of the intersection of Babcock and Ferguson. The City has adopted a standard to pay for 80% of signalization improvements with impact fees, with private funds or other non-impact fee sources providing the other 20%. The City’s CIP has allocated up to $800,000 for the impact fee funds. A group of development projects requires the signal installation in order to proceed. The private developers are providing the additional funds. Final costs will be determined after construction is completed. The City’s share will not exceed the $800,000. The included funding contract spells out the terms of the respective funding contributions. There are five criteria required for approval of an impact fee credit. Staff finds that this application meets all five. Summary of Review Criteria Criteria # Criteria Title Criteria Met (Y/N) 1 Capacity Expanding beyond project related Y 2 Not Project Related Y 3 CIP Listed Y 4 CIP Funded Y 5 Timely Request Y UNRESOLVED ISSUES: None ALTERNATIVES: As identified by the City Commission. 8 FISCAL EFFECTS: The current street impact fee CIP includes funding of up to $800,000 for this project. As noted in the contract the present estimate for the City’s share of the construction costs is slightly less than the $800,000. The contract specifies that any costs in excess of the $800,000 is the responsibility of the private parties. Attachments: Impact fee request Funding contract CIP sheet Report compiled on: 3/27/2017 9 10 Page 1 of 6 CITY OF BOZEMAN IMPACT FEE PAYMENT AGREEMENT THIS AGREEMENT is made and entered into this _____ day of ____________, 2017, by and between the CITY OF BOZEMAN, MONTANA, a self-governing municipal corporation organized and existing under its Charter and the laws of the State of Montana, 121 North Rouse Street, Bozeman, Montana, with a mailing address of PO Box 1230, Bozeman, MT 59771, hereinafter referred to as “City,” and, NHB LLC hereinafter referred to as “Developer” with a mailing address of PO Box 11530, Bozeman, MT 59719. WHEREAS, the Developer desires to complete certain public transportation system improvements to benefit its development project and the City desires to make available transportation impact fees to the Developer to assist in paying a portion of the costs of the improvements; and WHEREAS, the improvements include design and construction of a traffic signal at the West Babcock Street and Ferguson Avenue intersection and other related street improvements; and WHEREAS, the City’s contribution of impact fees to the Developer must comply with Sections 2.06.1600 through 2.06.1700, Bozeman Municipal Code; and WHEREAS, the City has included the improvements in the City’s Capital Improvement Plan; and WHEREAS, the City and the Developer desire to set forth the terms of their agreement in writing. NOW THEREFORE, In consideration of the mutual covenants and agreements herein contained, the receipt and sufficiency whereof being hereby acknowledged, the parties hereto agree as follows: 1. Incorporation: The foregoing recitals of this Agreement are contractual and are hereby incorporated by reference. 11 Page 2 of 6 2. The Project: The construction of improvements (the “Project”) consists of installation of traffic signal at the West Babcock Street and Ferguson Avenue intersection and associated street improvements as shown on the Approved Plans and Specifications attached as Exhibit 1. 3. Contracts for Design and Construction of Project: The Developer must retain a licensed professional engineer to provide construction inspection and oversight services for the Project and retain a licensed and qualified contractor to construct the Project. The Developer is solely responsible for selection and hiring of the engineer and contractor. 4. Estimated Project Cost and Allocation: The Developer’s estimate of the cost of the Project is $960,717.00 (“Estimated Project Costs”). An itemization of Estimated Project Costs provided by the Developer is attached as Exhibit 2. The payment by the City of impact fees will not be based on Estimated Project Costs; rather, payment by the City will be based on the actual costs of construction of the Project as determined by invoices for material and labor and other evidence (“Actual Project Costs”). For purposes of this Agreement, to establish an understanding between the parties’ of each party’s Estimated Project Costs prior to construction and prior to a determination of Actual Project Costs, the City and the Developer agree to allocate the Estimated Project Costs as follows: Estimated Developer Costs: $192,143.40 Estimated City Costs: $768,573.60 TOTAL: $960,717.00 5. Allocation of Actual Project Costs: The Actual Project Costs may be less than or more than Estimated Project Costs. As such, the Developer and the City agree: a. The Actual Project Costs will be allocated as follows: no more than 80% of Actual Project Costs are allocated to and must be paid by the City with the remainder of Actual Project Costs allocated to and must be be paid by the Developer. Notwithstanding the above, the City will pay no more than $800,000.00 in Actual Project Costs should the allocation of Actual Project Costs between the parties exceed the allocation of Estimated Project Costs between the parties as shown in Section 4. As such, if the Actual Project Costs, as determined by the City based on invoices and other evidence and accepted by the City, are less than originally estimated, (a) the City will pay 80% of the amount of Actual Project Costs up to but not to exceed $800,000.00 and (b) the Developer will pay the 20% of the amount of Actual Project Costs incurred 12 Page 3 of 6 including any amount in excess of the City’s maximum contribution of $800,000.00. 6. Project Reimbursement/Inspection/Payment: The City will reimburse the Developer for the City’s portion of the Actual Project Costs only after construction of the Project has been completed, the Project has been accepted by the City, and Actual Project Costs (including evidence of those costs) is provided to the City. As such: a. The City may inspect the Project at reasonable times and the Developer must not interfere with such inspections. b. The City will only accept the construction of the improvements upon receipt by the City of (a) certification by the Developer’s licensed professional engineer that the Project is complete in accordance with the Approved Plans, and (b) evidence of the Actual Project Costs have been delivered to and accepted by the City. c. The City will pay the Developer, by single check, the City’s portion of the Project’s costs no later than thirty (30) days following the City’s determination the requirements of this Agreement are satisfied. 7. Amendment and Waiver: This Agreement may only be amended or modified by a written agreement signed by the City and the Developer. No waiver by any party hereto of any provision or breach of, or default under, this Agreement shall be deemed to have been made unless the same is in writing and signed and delivered by the party charged with making the waiver, and no waiver of any provision or breach of, or default under, this Agreement shall be deemed a waiver of any other provision or breach of, or default under, this Agreement. 8. Representations and Warranties: Each party represents and warrants to the other that: a. Execution of this Agreement does not violate any agreement, bylaw, statute or ordinance binding on or applicable to such party; and b. The individual executing this Agreement on behalf of the party is duly authorized and empowered to execute this Agreement for the party, and following execution and delivery by both parties this Agreement will be a legally binding obligation of the party, enforceable against the party in accordance with its terms. 9. Choice of Law and Venue: This Agreement shall be governed by, and interpreted under, Montana Law, without regard to conflict of law principles. Mandatory and exclusive 13 Page 4 of 6 jurisdiction for any dispute shall be in the Eighteenth Judicial District Court, Gallatin County, Montana. 10. Severability: Each provision of this Agreement shall be considered severable and if for any reason any provision which is not essential to the effectuation of the basic intent of this Agreement is determined to be invalid, such invalidity shall not impair the operation of or effect those provisions of this Agreement which are valid. Dated this ____ day of _______________, 2017 NHB LLC _________________________________________ By: Benjamin E. Nistler, Manager Dated this ____ day of _______________, 2017 CITY OF BOZEMAN _________________________________________ By: Chuck Winn, Acting City Manager 14 Page 5 of 6 Exhibit 1 Construction Proposal (attached) 15 Page 6 of 6 Exhibit 2 Anticipated Project Costs (attached) 16 N FERGUSON AVE W BABCOCK ST W BABCOCK ST N FERGUSON AVEONLYONLYONLYONLY17 03/23/17 ITEM NO. DESCRIPTION QTY UNIT UNIT PRICE AMOUNT STORM SEWER 1-1 RELOCATE/RETROFIT STORM INLET (BABCOCK)2 EA $4,400.00 $8,8001-2 EXTEND 15" RCP STORM WATER PIPE TO RELOCATED INLETS 10 LF $165.00 $1,6501-3 22.5"X36" RCP ARCH PIPE 10 LF $220.00 $2,2001-4 72" DIA STORM MANHOLE (REPLACE EXISTING)1 EA $12,000.00 $12,000 1-5 EXTEND STORM MANHOLE TO FINAL GRADE 4 EA $330.00 $1,320 1-6 36" RCP FETS 1 EA $220.00 $220 1-7 ARMOR DITCH BANK W/ RIP RAP SURROUNDING INLET 1 LS $3,300.00 $3,300 SUBTOTAL $29,490 STREET IMPROVEMENTS 2-1 DEMO EXISTING CURB 1,294 LF $7.70 $9,9642-2 DEMO EXISTING CURB FILLETS 4 EA $550.00 $2,200 2-3 DEMO EXISTING ADA RAMPS 6 EA $302.50 $1,815 2-4 DEMO EXISTING SIDEWALK 600 SF $2.75 $1,650 2-5 DEMO EXISTING ASPHALT 9,415 SF $3.30 $31,070 2-6 DEMO DOUBLE GUTTER (WEST SIDE OF FERGUSON)1 LS $1,100.00 $1,100 2-7 DEMO EXISTING STREET LIGHT 1 EA $814.00 $814 2-8 STRIP TOPSOIL (ASSUMES 3 FT DEPTH)1,959 CY $12.10 $23,701 2-9 1 ½" MINUS CRUSHED BASE COURSE (6" THICK COMPACTED)326 CY $35.20 $11,491 2-10 6" MINUS PIT RUN MATERIAL (18" THICK COMPACTED)979 CY $29.70 $29,088 2-11 HOT PLANT MIX ASPHALT CONCRETE (4" THICK COMPACTED)264 TONS $93.50 $24,650 2-12 GEOTEXTILE ROAD FABRIC 17,629 SF $0.55 $9,696 2-13 CURB & GUTTER 1,294 LF $18.15 $23,4862-14 REGRADE/REPAVE INTERSECTION 1 LS $9,900.00 $9,9002-15 PATCH FAILING PAVEMENT IN INTERSECTION 1 LS $2,750.00 $2,7502-16 CONCRETE FILLETS/INTERSECTION DOUBLE GUTTER 1 LS $4,950.00 $4,9502-17 CONCRETE FILLET 4 EA $3,850.00 $15,4002-18 PEDESTRIAN RAMPS W/ CAST IRON DETECTABLE PAD (SINGLE)8 EA $1,100.00 $8,8002-19 SIDEWALK - 5' WIDE 6" THICK 850 SF $8.25 $7,0132-20 NEW MAILBOX PAD (6' X 3' X 4" THICK)18 SF $22.00 $3962-21 RELOCATE EX. MAILBOX 1 LS $550.00 $5502-22 EXTEND VALVE, UTILITY, MONUMENT BOXES TO FINAL GRADE 5 EA $330.00 $1,6502-23 INSTALL 4" SLEEVE UNDER SIDEWALK (LENGTHS VARY)80 LF $22.00 $1,760SUBTOTAL $223,893 STRIPING AND SIGNAGE 3-1 DEMO EXISTING CENTERLINE STRIPE (LF COMBINES BOTH LINES)1,090 LF $2.42 $2,6383-2 DEMO EXISTING SHOULDER STRIPES 2,074 LF $1.16 $2,3953-3 DEMO EXISTING STOP BAR/SHARK TEETH 3 EA $495.00 $1,4853-4 DEMO EXISTING TYBE B (LADDER) CROSSWALK 1 EA $1,595.00 $1,5953-5 THERMOPLASTIC LEFT ONLY STRIPE 333 LF $11.77 $3,9193-6 EPOXY SHOULDER STRIPING 2,092 LF $1.21 $2,5313-7 EPOXY CENTERLINE STRIPES (LF COMBINES BOTH LINES)1,800 LF $2.42 $4,3563-8 THERMOPLASTIC YELLOW TAPER STRIPE (WIDTH VARIES, SEE PLANS)350 LF $32.78 $11,4733-9 THERMOPLASTIC TURN SYMBOL (LEFT W/ ONLY)3 EA $1,078.00 $3,2343-10 THERMOPLASTIC TURN SYMBOL (STRAIGHT/RIGHT COMBO)3 EA $759.00 $2,277 3-11 THERMOPLASTIC CROSSWALKS (TYPE A; COB STD DWG 02581-1)2 EA $2,101.00 $4,202 3-12 THERMOPLASTIC CROSSWALKS (TYPE B; COB STD DWG 02581-2)1 EA $4,620.00 $4,620 3-13 THERMOPLASTIC BIKE LANE SYMBOL AND ARROW 10 EA $396.00 $3,960 3-14 REMOVE AND RESET TRAFFIC CONTROL AND BIKE LANE SIGNS 18 EA $764.50 $13,761 3-15 TRAFFIC SIGNALS (INCLUDE ALL POSTS, UTILITIES, CONDUIT, ETC.)1 LS $238,492.14 $238,492 3-16 CURB PAINT 1 LS $6,262.96 $6,263 3-17 SIGNS 1 LS $2,200.00 $2,200 SUBTOTAL $309,402 LABOR & MATERIALS SUBTOTAL: $562,786 MISCELLANEOUS 4-1 MOBILIZATION 5.0% $28,1394-2 EROSION CONTROL MEASURES 2% $11,2564-3 CONSTRUCTION TRAFFIC CONTROL 2% $11,2564-4 PRIVATE UTILITIES RELOCATION CONTINGENCY 1% $5,6284-5 LANDSCAPING 3% $14,070SUBTOTAL $70,348 CONSTRUCTION SUBTOTAL: $633,134 PROFESSIONAL SERVICES 5-1 GC PROJECT OVERSIGHT 15.0% $94,9705-2 PROJECT FINANCING FEES & OWNER BONDING OBLIGATIONS 6.0% $37,9885-3 BONDING (Perfomance & Maintenance)6.0% $37,9885-4 ENGINEERING, SURVEYING, PERMITTING, CA 13.5% $85,473 SUBTOTAL $256,419 PUBLIC IMPROVEMENTS TOTAL: $889,5538% CONTINGENCY: $71,164 PUBLIC IMPROVEMENTS GRAND TOTAL: $960,717 CITY SHARE (80%): $768,574PRIVATE SHARE (20%): $192,143 FINANCIAL GUARANTEE (150%): $288,215 NOTES:1)ASPHALT AND EARTHWORK VOLUMES ARE COMPACTED IN PLACE.2)QUANTITY TAKEOFF IS FOR CONTRACTOR CONVENIENCE - BID PER APPROVED PLANS BABCOCK/FERGUSON INTERSECTION IMPROVEMENTSPUBLIC IMPROVEMENTS QUANTITY TAKEOFF 18 CIP Project Fund Impact Fees Streets PROJECT NUMBER SIF122 DEPARTMENT STREET IF PROJECT NAME Babcock & Ferguson (Intersection) - Construction FY18 $800,000 FY19 Unscheduled DESCRIPTION OF PROJECT Install intersection improvements at Babcock & Ferguson Describe the criticality (i.e., importance) of this project to the operation: Future developments which impact this intersection area may not be allowed to proceed until improvements are in place. Functionality of the network at large is dependent on this element functioning as intended. The incomplete transportation network in this vicinity is putting unnecessary demand on those elements of the street network that are in place. How is capacity affected by this project: This is currently a four-legged intersection with stop control on the Babcock Street approaches (east and west legs). Installation of a signal at this intersection will directly increase capacity. How is connectivity affected by this project: Connectivity already exists at this location, it is capacity which is being expanded. What regulations or standards are attained with this project: The Level of Service (LOS) Standard (BMC) and conformance with the Transportation Master Plan are attained. Are there other affected projects: Corridor improvements to Babcock and Ferguson. ALTERNATIVES CONSIDERED Accept the current level of service (do nothing). Alternative financing could be provided by creating an SID or Payback District. ADVANTAGES OF APPROVAL This project will expand the capacity of our street network, improve safety for drivers and pedestrians and increase capacity at this intersection. Facilitates development currently occurring in this part of the city and network performance overall. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual Operating and Maintenance Costs: Incremental increases in sweeping, plowing and general maintenance costs. FUNDING SOURCES The total cost of this project is $1,000,000. This project is funded by Street Impact Fees ($800,000) and a developer contribution ($200,000). New Replacement Equipment Project FY20 FY21 FY22 286 19