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Home My WebLink About12-04-17 City Commission Packet Materials - C8. Water Impact Fee CIP FY2019-2023 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Kristin Donald, Finance Director SUBJECT: Adoption of the Water Impact Fee Fund Capital Improvement Plan (CIP) for FY19-23. AGENDA ITEM TYPE: Consent MEETING DATE: December 4, 2017 RECOMMENDATION: Adopt the Water Impact Fee Fund Capital Improvement Plan (CIP) for FY19-23. 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 October 30th 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 include projects identified in the Integrated Water Resources Plan (IWRP). 2. WIF40 SOURDOUGH TRANSMISSION MAIN – PHASE 2 – This project provides significant additional water supply capacity. This construction, beginning in phase 1 already underway, will assist in overcoming vulnerabilities presented by the aging and unknown condition of the existing transmission main between the City’s Water 186 Treatment Plant and Sourdough Tank. The phase 1 was and phase 2 is also being proposed as 90% Impact Fees and 10% Water Utility. 3. WIF32 Groundwater Well Field and Transmission Construction - 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. Beginning in FY21 for an estimated total of $8 million. This is absolutely critical for meeting long-range water supply needs and enhancing overall water supply resiliency and redundancy. It enhances connectivity by providing a redundant water supply source in the event of Sourdough WTP outage. 4. A significant amount of borrowing has been incurred for Projects WIF32, and WIF 40. Over $12 million will need to be borrowed to complete these three projects. Because of the uncertainty of the revenue stream, the Water Utility will need to borrow via revenue bonds and be reimbursed by the Water Impact Fee Fund. There may be rate- requirements to support this borrowing. We will know more after the upcoming Water Rate Study. 5. There are a significant amount of unscheduled capacity-expanding projects proposed that cannot be supported by the existing levels of impact fee revenues. 6. Revenue estimates for Water Impact Fees have been updated with the 5-year average collection amount, detailed on the following page. We have not included 187 any potential financial effects of the fee study that will be underway in the coming months. Revenues have grown on average by 16% per year, over the past 5 years. For the CIP, we have used the 5-year Average collection, plus 5% growth each year from FY19 to FY23. UNRESOLVED ISSUES: None. ALTERNATIVES: As suggested by the City Commission. If the Commission is does not wish to adopt this schedule tonight, it can be scheduled for approval on a later agenda. FY Revenue Change 2011 811,000.00$ ‐ 2012 1,060,000.00$ 31% 2013 1,726,000.00$ 63% 2014 1,833,000.00$ 6% 2015 1,663,000.00$ ‐9% 2016 2,262,000.00$ 36% 2017 1,885,123.00$ ‐17% Average FY13‐17 1,873,824.60 16% Revenue History ‐ Water Impact Fees 188 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 FY19. Report compiled on: December 4, 2017 Attached: Draft Water Impact Fee Fund CIP 189 # ^ ^ ^ WWIF32 WWIF24 WIF25 WWIF20 WWIF11 WIF30 WIF40 WIF42 WIF42 WIF42 WIF42 WIF27 & WIF28WIF05 WIF05 WIF21 WIF47 WWIF37 WWIF35WWIF36 WWIF38 WIF32 & WIF33 WWIF34 WWIF39 WWIF22 WIF48 WIF46 HUFFINE 19THDURSTON STUCKYCOTTONWOOD FRONTAGE RD MAIN 3RD7THOAKDAVIS COLLEGE BABCOCK 11THSPRINGHILLPEACH GOLDENSTEIN GRAF 3RDI NTERSTAT E 90BAXTER FRONTAGEROUSE SOURDOUGHHIGHLANDKAGY BRIDGER HARPERPUCKETT VALLEY CENTER 19THGRIFFIN BOZEMAN TRAILBLACKWOODGOOCH HILLMAIN This map was created by the City of Bozeman GIS Department on 10/27/17 and is intended for planning purposes only. 0 10.5 Mile ¯ Water & WastewaterImpact Fees FY19-23 Water ^FY19 ^FY21 ^Unscheduled Water FY19 FY20 Unscheduled Wastewater #FY19 Wastewater FY19 FY20 FY21 FY22 FY23 Active Development City Limits 190 Water Impact Fee Capital Improvement Plan Financial Summary Current YearFY18 FY19 FY20 FY21 FY22 FY23UnscheduledProjected Beginning Reserve Balance Dedicated to CIP 2,104,525$ (1,118,623)$ (578,563)$ (227,069)$ 594,016$ 868,905$ ‐$ Plus: Impact Fee Revenues Dedicated to CIP 1,793,400$ 1,883,070$ 1,977,224$ 2,076,085$ 2,179,889$ 2,288,883$ ‐$ Plus: Loan for Well Field WIF32 8,000,000$ Plus: Loan for Sourdough Transmission Main, PH 2 WIF40 4,320,000$ Less: Carryover FY17 Capital Projects (1,826,548)$ Less: Scheduled CIP Project Costs (3,190,000)$ (1,343,010)$ (5,945,729)$ (9,255,000)$ (1,905,000)$ (1,305,000)$ (149,060,296)$ Projected Year‐End Cash Dedicated to CIP (1,118,623)$ (578,563)$ (227,069)$ 594,016$ 868,905$ 1,852,789$ Assumptions Made for Revenue Estimates Current YearFY18 FY19 FY20 FY21 FY22 FY23Estimated Annual Water Impact Fee Revenues1,793,400$ 1,793,400$ 1,883,070$ 1,977,224$ 2,076,085$ 2,179,889$ Estimated Annual Increase 0.0% 5% 5% 5% 5% 5%Total Estimated Revenues1,793,400$ 1,883,070$ 1,977,224$ 2,076,085$ 2,179,889$ 2,288,883$ Current Revenues Dedicated to CIP %100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Plus: Increase Dedicated to Water Capacity Expansion CIP0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Total % Dedicated to CIP100.0% 100.0% 100.0% 100.0% 100.0% 100.0%Total Estimated Revenues Dedicated to CIP1,793,400$ 1,883,070$ 1,977,224$ 2,076,085$ 2,179,889$ 2,288,883$ ProjectedProjectedCURRENT$(1,343,010)$(5,945,729)$(9,255,000)$(1,905,000)$(1,305,000)$(149,060,296)FY18 FY19 FY20 FY21 FY22 FY23 UNSCHEDULEDWATER IMPACT FEE PROJECTS 191 CIP PROJECT FUPROJ.DEPARTMENTPROJECT NAMEFY19UnscheduledFY23FY20FY21FY22Impact 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$600,000WIF21Water Impact FS 11TH 12" WATER MAIN EXTENSION$136,010WIF25Water Impact FeesDAVIS 12" WATER MAIN & VALLEY CENTER 16" WATER MAIN EXTENSION$725,729WIF27Water Impact F5126 WEST SOURDOUGH RESERVOIR 1$9,757,500WIF28Water Impact Fees5126 WEST SOURDOUGH RESERVOIR 1 - SITING$350,000WIF30Water Impact FEAST TRANSMISSION MAIN$7,167,372WIF32Water Impact FeesGROUNDWATER WELL FIELD AND TRANSMISSION CONSTRUCTION$8,000,000WIF33Water Impact FeesGROUNDWATER WELL FIELD AND TRANSMISSION MAIN DESIGN$500,000WIF36Water Impact FeesWEST TRANSMISSION MAIN PLANNING STUDY$400,000WIF37Water Impact FeesSOURDOUGH CANYON NATURAL STORAGE - PLANNING AND DESIGN $350,000$150,000WIF38Water Impact FeesSOURDOUGH CANYON NATURAL STORAGE CONSTRUCTION$8,000,000WIF40Water Impact FeesSOURDOUGH TRANSMISSION MAIN – PHASE 2$4,320,000WIF41Water Impact FeesWEST TRANSMISSION MAIN - PHASE 1 DESIGN$2,907,235WIF42Water 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$1,000,000WIF45Water Impact FeesDEBT SERVICE FOR BORROWING - TRANSMISSION MAIN$305,000$3,445,000$305,000$305,000WIF46Water Impact FeesWATER MAIN OVERSIZING, OAK ST AND RYUN SUN WAY$107,000192 CIP PROJECT FUPROJ.DEPARTMENTPROJECT NAMEFY19UnscheduledFY23FY20FY21FY22WIF47Water Impact FeesGRAF AND S. 27TH WATER TRANSMISSION MAIN OVERSIZING$150,000WIF48Water Impact F4975 SOUTHWEST RESERVOIR 1$9,757,500$1,305,000$1,343,010$5,945,729$9,255,000$1,905,000$149,060,296Totals by DEPARTMENTSummary for Impact Fees Water (20 items)Totals by year:$1,305,000$1,343,010$5,945,729$149,060,296FY23FY19FY20UnscheduledFY22$1,905,000$9,255,000FY21193 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF05 DEPARTMENT Water Impact Fees PROJECT NAME West Transmission Main - Phase 1 Construction FY19 FY20 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. 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. Potable water delivery and fire flows will be improved in the southwest, west and northwest portions of the City. This transmission line connects to the existing distribution system at a location that enables the existing Sourdough and Hill top tanks to be filled even if the Sourdough pipeline is out of service. This project mitigates the risk of not having enough potable water to serve the City's residents or provide fire suppression. 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 FY21 FY22 FY23 194 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 FY19 $600,000 FY20 $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 FY21 $600,000 FY22 $600,000 FY23 195 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF21 DEPARTMENT Water Impact Fees PROJECT NAME S 11th 12" water main extension FY19 $136,010 FY20 Unscheduled DESCRIPTION OF PROJECT Extension of 12" diameter main per AE2S WFPU in S 11th avenue from current terminus to Graf Street. It provides for future looped water system per AE2S WFPU, and increases hydraulic capacity of system beyond minimum 8" main. This reduces severity and consequences of water system outages due to future looping and provides for minimum fire flows. 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. This will be completed in conjunction with the 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 FY21 FY22 FY23 196 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 FY19 FY20 $725,729 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. This provides for future looped water system per AE2S WFP, and reduces severity and consequences of water system outages due to future looping and provides for minimum fire flows. This will be completed in connection with development of Billings Clinic. Other affected projects include the 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 FY21 FY22 FY23 197 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF27 DEPARTMENT Water Impact Fees PROJECT NAME 5126 West Sourdough Reservoir 1 FY19 FY20 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. 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. 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. This project mitigates the risk of not having enough potable water and fire flow in the southwest area of the City. 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 FY21 FY22 FY23 198 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF28 DEPARTMENT Water Impact Fees PROJECT NAME 5126 West Sourdough Reservoir 1 - Siting FY19 FY20 Unscheduled DESCRIPTION OF PROJECT Siting study and land acquisition for 5MG ground storage reservoir to serve 5126 Pressure Zone from West Transmission Main. 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. It will increase water storage capacity by 5MG, and will provide 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. Other affected projects include 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 Procurement of land while it is available, and less expensive ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Unknown FUNDING SOURCES 100% Water Impact Fees New Replacement Equipment Project FY21 $350,000 FY22 FY23 199 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF30 DEPARTMENT Water Impact Fees PROJECT NAME East Transmission Main FY19 FY20 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). 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. 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. 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 FY21 FY22 FY23 200 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF32 DEPARTMENT Water Impact Fees PROJECT NAME Groundwater Well Field and Transmission Construction FY19 FY20 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. This is absolutely critical for meeting long-range water supply needs and enhancing overall water supply resiliency and redundancy. It enhances connectivity by providing a redundant water supply source in the event of Sourdough WTP outage. 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 FY21 $8,000,000 FY22 FY23 201 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF33 DEPARTMENT Water Impact Fees PROJECT NAME Groundwater Well Field and Transmission Main Design FY19 $500,000 FY20 Unscheduled DESCRIPTION OF PROJECT Design of groundwater well field and transmission main including necessary appurtenances, instrumentation and controls, and DEQ approvals. This is necessary for construction of groundwater supply source, but it will require DEQ construction approval; amendments if needed to other DEQ documents such as Source Water Delineation and Assessment Report and Source Water Protection Plan. This project utilizes the hydrogeologic model developed for the Groundwater Investigation and test well data. 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 FY21 FY22 FY23 202 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF36 DEPARTMENT Water Impact Fees PROJECT NAME West Transmission Main Planning Study FY19 FY20 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. 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, and it provides capacity sufficient for UBO and delivery of 34 MGD from future WTP expansion. Conveyance of water to the City's western, northwestern and northern areas will be more efficient that moving water through downtown and existing PRVs. ALTERNATIVES CONSIDERED Defer the study further out, deferring eventual construction of the West Transmission Main. ADVANTAGES OF APPROVAL 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 FY21 FY22 FY23 203 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF37 DEPARTMENT Water Impact Fees PROJECT NAME Sourdough Canyon Natural Storage - Planning and Design FY19 FY20 $150,000 Unscheduled $350,000 DESCRIPTION OF PROJECT Alternatives planning and design for sour dough natural storage enhancement project. This project will increase resiliency of Sourdough watershed to drought impacts and provides augmented water supply, protects existing municipal water rights, and it augments water supply capacity of sourdough watershed. This impacts the City's long-term water rights and helps close the approaching water supply gap. This project could have potential FEMA involvement for flood control. Other affected projects include final sizing of West Transmission Main. It will also inform 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 FY21 FY22 FY23 204 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF38 DEPARTMENT Water Impact Fees PROJECT NAME Sourdough Canyon Natural Storage Construction FY19 FY20 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. This project provides enhanced water supply availability to support future growth and development, and reduces drought susceptibility and peak runoff impacts. 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 FY21 FY22 FY23 205 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF40 DEPARTMENT Water Impact Fees PROJECT NAME Sourdough Transmission Main – Phase 2 FY19 FY20 $4,320,000 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. 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, and will provide additional capacity from the WTP to the Sourdough reservoir. This project will mitigate 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. 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 assesment 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 $4,320,000 Water Impact Fees. $480,000 Water Fund New Replacement Equipment Project FY21 FY22 FY23 206 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF41 DEPARTMENT Water Impact Fees PROJECT NAME West Transmission Main - Phase 1 Design FY19 FY20 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 (WIF36). This project will reduce the consequence of a failure on the Sourdough Transmission Main, by providing a second pipeline to convey water to the City from the WTP, and water delivery to the City's western side will become more efficient. The Sourdough Transmission Main is currently a single point of failure for conveyance of water from the Sourdough WTP. Other affected projects include subsequent phases of West Transmission Main design and construction, and 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 FY21 FY22 FY23 207 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF42 DEPARTMENT Water Impact Fees PROJECT NAME West Transmission Main - Phases 2-5 Design & Construction FY19 FY20 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. 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. 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. Therefore, this project mitigates the risk of not having enough potable water or fire flow to serve the City's west residents. This project will also 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. ALTERNATIVES CONSIDERED Do not complete west tranmission 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 FY21 FY22 FY23 208 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF43 DEPARTMENT Water Impact Fees PROJECT NAME Debt Service for Borrowing - Well Field FY19 FY20 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 FY21 FY22 $1,000,000 FY23 $1,000,000 209 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF45 DEPARTMENT Water Impact Fees PROJECT NAME Debt Service for Borrowing - Transmission Main FY19 FY20 Unscheduled $3,445,000 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 Utility (10%) and Impact Fee Fund (90%) New Replacement Equipment Project FY21 $305,000 FY22 $305,000 FY23 $305,000 210 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF46 DEPARTMENT Water Impact Fees PROJECT NAME Water Main Oversizing, Oak St and Ryun Sun Way FY19 $107,000 FY20 Unscheduled DESCRIPTION OF PROJECT This project consists of upsizing water mains from 8-inches to 12-inches per the Water Master Plan if the proposed Canvasback Subdivision proceeds to approval. The Canvasback Subdivision will be required to install the mains, and the City would pay the difference in cost between an 8-inch and a 12-inch pipe required by the 2017 Water Master Plan. ALTERNATIVES CONSIDERED Do nothing and require the developer to bear the full cost of the 12-inch transmission main. ADVANTAGES OF APPROVAL Supports implementation of the water transmission pipe network described in the 2017 Water Master Plan. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Incremental cost of water main operations. FUNDING SOURCES NA New Replacement Equipment Project FY21 FY22 FY23 211 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF47 DEPARTMENT Water Impact Fees PROJECT NAME Graf and S. 27th Water Transmission Main Oversizing FY19 FY20 $150,000 Unscheduled DESCRIPTION OF PROJECT This project consists of upsizing water mains from 8-inches to 12-inches per the Water Master Plan if the proposed Canvasback Subdivision proceeds to approval. The Canvasback Subdivision will be required to install the mains, and the City would pay the difference in cost between an 8-inch and a 12-inch pipe required by the 2017 Water Master Plan. ALTERNATIVES CONSIDERED Do nothing and require the developer to bear the full cost of the 12-inch transmission main. ADVANTAGES OF APPROVAL Supports implementation of the water transmission pipe network described in the 2017 Water Master Plan. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Incremental cost of water main operations. FUNDING SOURCES N/A New Replacement Equipment Project FY21 FY22 FY23 212 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF48 DEPARTMENT Water Impact Fees PROJECT NAME 4975 Southwest Reservoir 1 FY19 FY20 Unscheduled $9,757,500 DESCRIPTION OF PROJECT The project consists of a constructing a new ground storage reservoirsouthwest of town, which would tie into the West Transmission Main – Phase 2 and serve the City’s future western and northern water distribution system. ALTERNATIVES CONSIDERED None ADVANTAGES OF APPROVAL An additional reservoir located on the West Transmission Main – Phase 2 would help provide the following: promote storage redundancy within the system, allow for routine inspection and maintenance of both water storage facilities/transmission mains, reduce the consequence of failure of future transmission mains (i.e. mitigates risk), aids in supplying water to the City’s distribution network, and ensures adequate water supply capacity for future development. 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 FY21 FY22 FY23 213