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HomeMy WebLinkAboutResolution 4939 Establishing a Water and Wastewater Impact Fee Exemption Program for Montana State University (MSU) COMMISSION RESOLUTION NO. 4939 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA,ESTABLISHING A WATER IMPACT FEE AND WASTEWATER IMPACT FEE EXEMPTION PROGRAM FOR MONTANA STATE UNIVERSITY AND ALSO ESTABLISHING AN APPROPRIATE WATER AND WASTEWATER IMPACT FEE REFUND FOR YELLOWSTONE RESIDENCE HALL AND JAKE JABS HALL WHEREAS, Chapter 2,Article 6,Division 9, Bozeman Municipal Code (BMC) sets forth the impact fee regulations of the City of Bozeman,which are codified as Sec. 2.06.1600 BMC et. seq.; and, WHEREAS, Secs. 2.06.1660.G and 2.06.1670.G provide authority for exemptions under defined conditions from payment of water impact fees and wastewater impact fees respectively; and, WHEREAS,Montana State University(MSU)is a unique and major customer of the City's water and wastewater utilities that owns and operates its own water distribution and wastewater collection systems within the MSU campus, and said systems are provided water from the City water utility by means of a ring of meter pits that surround the MSU campus; and, WHEREAS,MSU has invested significant capital resources to implement water efficiency measures within campus buildings that have produced measurable reductions in demand and impact to the City's water and wastewater utilities; and, WHEREAS, MSU's measurable reductions in water use and associated wastewater discharges attributable to efficiency measures completed since 2014 can be utilized to offset new water and wastewater demands for post-2014 campus developments by an amount equivalent to the measurably reduced volumes; and, Page 1 of 7 Resolution 4939,Establishing a Water Impact Fee and Wasteivater Impact Fee Exemption Program for MSU WHEREAS,MSU has sub-metered existing buildings on campus to capture actual indoor water use and associated wastewater discharge data and affirms that it will sub-meter each future building to be constructed on campus; and, WHEREAS, a measurable reduction in water use and associated wastewater discharges is defined as the metered water use occurring in a pre-2014 campus building prior to the implementation of efficiency measures completed since 2014 less the metered water use occurring after the implementation of efficiency measures; and, WHEREAS,the total respective water and wastewater demand offsets available to MSU is defined as the summation, on an annual basis, of all measurable reductions, as metered per building, in water use and associated wastewater discharges directly attributable to water use efficiency measures that have already been already undertaken on campus since 2014, or that may occur in the future; and, WHEREAS, on May 22, 2014, February 9, 2016, December 12, 2016, and December 15, 2016,respectively,MSU requested an exemption to the payment of water and wastewater impact fees required for the construction of the Jake Jabs Hall, Yellowstone Residence Hall, Norm Asbjornson Hall, and Rendevous Dining,but paid 100%of water and wastewater impact fees due for each of these developments with the understanding that a refund of the water and wastewater impact fees paid for these developments, or use of offset credits,may be considered by the City at a later date; and, WHEREAS, this Resolution serves the multiple purposes of establishing an appropriate refund amount of respective water and wastewater impact fees paid for Yellowstone Residence Hall and Jake Jabs Hall; allows an appropriate refund amount of respective water and wastewater impact fees paid for the Norm Asbjornson Hall and Rendevous Dining, or allows the total respective water and wastewater offset credits available to MSU to be applied to the Norm Asbjornson Hall and Rendevous Dining, whichever is deemed applicable at a later date; and provides for the total water and wastewater demand offsets available to MSU to be applied to future MSU development; and, WHEREAS, the water and wastewater impact fee exemption program created by this Resolution is effective insofar as MSU has water and wastewater demand offsets available; and, Page 2 of 7 Resolution 4939,Establishing a Water Impact Fee and Nasteivater Impact Fee Exemption Program for MSU NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, that the water and wastewater impact fee exemption program for Montana State University and the appropriate water and wastewater impact fee refund for Yellowstone Residence Hall and Jabs Hall is set forth as follows: PART I-FINDINGS 1) The City Commission finds that the general intent of Secs.2.06.1660.G.1 and 2.06.1670.G.1 BMC is to exempt payments of water and wastewater impact fees in specific instances where development for which impact fees are applicable does not generally create an additional demand or impact to the City's water treatment and distribution system, and wastewater collection and treatment system. 2) The City Commission has established as part of the Integrated Water Resources Plan a policy to encourage the conservation of water and has established various programs to reduce water consumption both internal and external to existing buildings and to encourage more efficient new construction. 3) The City Commission finds that due to the unique manner in which MSU's water system is provided water through a ring of water meter pits surrounding campus that are connected to the City's water utility, and that because these meters are currently sized to meter MSU's water usage and do not require enlargement to satisfy metering capacity for new development to be connected to the campus water system, that the exemption criteria contained in Secs. 2.06.1660.G.La and 2.06.1670.G.La is met. 4) The City Commission finds that increasing the size of the existing meters from 6 inch diameter to 8 inch diameter to match revised City standards for water mains would result in a significant water and wastewater impact fee due despite an absence of commensurate increase in demand for service and that such a fee in advance is not appropriate. 5) The City Commission finds that scope of this water and wastewater impact fee exemption program is appropriately limited to the treatment capacity charge component of respective water and wastewater impact fees because of the measurable reductions in impact to the City's water and wastewater treatment systems directly attributable to efficiency measures implemented by MSU since 2014. The City Commission further finds that MSU is not Page 3 of 7 Resohrtion 4939,Establishing a Water Impact Fee and Wasteivater Impact Fee Exemption Program for MSU exempt from the transmission capacity charge component of respective water and wastewater impact fees. 6) The City Commission finds that MSU's request for water and wastewater impact fee exemptions for Yellowstone Residence Hall, Jake Jabs Hall, Rendevous Dining and Norm Asbjornson Hall are valid claims and that said claims for these exemptions are hereby resolved by Part II and Part III below. 7) The City Commission finds that future water and wastewater impact fee exemptions requested by MSU are valid claims and that said future exemption requests for future MSU development will be resolved under the process described in Part IV below. PART II—WATER AND WASTEWATER FEE REFUNDS FOR YELLOWSTONE RESIDENCE HALL AND JAKE JABS HALL The City will refund the capacity component portion the of water and wastewater impact fees already paid for Yellowstone Residence Hall and Jake Jabs Hall that keeps with the City respective fee amounts equivalent to the actual sub-metered water use for these respective developments, calculated on an annual basis occurring over a 2-year period of record of full occupancy of the respective developments. Refund amounts are set forth in Table 1 and Table 2 below. Table 1 -MSU Water Impact Fee Refund A B C D E Capacity Water IF Charge of Capacity Actual Col Refund City Fee Water Impact Charge Fee Metered C/Col Amount(Col Keep (Col Building Fee Paid ($) 1 Basis (gpd) I Use(gpd) I B (%) I A* 1-Col D) A-Col E) Yellowstone Residence Hall $386,430.54 45,828 5,888 12.8% $336,967.43 $49,463.11 Jake Jabs Hall $39,542.00 4,804 619 12.9% $34,441.08 $5,100.92 Page 4 of 7 Resolution 4939,Establishing a YVater Impact Fee and Wastewater Impact Fee Exemption Program for•MSU Table 2-MSU Wastewater Impact Fee Refund A B C D E Capacity Charge of Wastewater IF Wastewater Fee Capacity Actual Col Refund City Fee Impact Fee Charge Basis Metered C/Col Amount(Col Keep (Col A- Building Paid ($) 1 (gpd) Use (gpd) I B(%) I A * 1-Col D) Col E) Yellowstone Residence Hall $152,341.92 21,708 5,888 27.1% 1 $111,057.26 $41,286.66 Jake Jabs Hall $26,525.00 3,880 619 16% 22,281.00 $4,244.00 PART III—FEE REFUND OR USE OF FEE DEMAND OFFSET FOR RENDEVOUS DINING AND NORM ASBJORNSON HALL Respective fee refunds will be paid in cash to MSU, calculated using the method provided in Part II, if actual metered water usage, calculated on an annual basis occurring over a 2-year period of record of full occupancy of the building, is less than the respective fee basis in gallons. Refund amount will complete Table 3 and Table 4 below. If the calculated average annual water usage is greater than the respective fee basis in gallons then MSU may utilize, at their option, available water and wastewater demand offsets for payment. If this option is not exercised, MSU shall pay the cash difference of the respective water and wastewater fee amounts based on actual metered usage. The determination and use of available water and wastewater demand offsets is described in detail in Part IV below. Table 3 A B C D E Capacity Water IF Refund Charge of Capacity Actual Col Amount Water Impact Charge Fee Metered C/Col (Col A * 1- City Fee Keep Building Fee Paid ($) 1 Basis (gpd) Use (gpd) B (%) Col D) (Col A-Col E) Rendevous Dining $39,542.00 4,804 Norm Asbjornson Hall $42,540.22 3,880 Page 5 of 7 Resohition 4939,Establishing a Water Impact Fee and Wasteivater Impact Fee Exemption Program for MSU Table 4 A B C D E Capacity Charge of Wastewater IF Refund Wastewater Fee Capacity Actual Col Amount Impact Fee Charge Basis Metered C/Col (Col A* 1- City Fee Keep Building Paid ($) (gpd) Use(gpd) B(%) Col D) (Col A-Col E) Rendevoous Dining $26,525.00 4,804 Norm Asbjornson Hall $28,536.22 3,880 PART IV—MSU WATER AND WASTEWATER IMPACT FEE EXEMPTION BASED ON OFFSET CREDITS FOR FUTURE MSU DEVELOPMENT Future MSU development may utilize available respective water and wastewater demand offsets to exempt MSU from the payment of respective water and wastewater impact fees for future development. Demand offsets are established by measurable reductions in water use and associated wastewater discharges directly attributable to the implementation of water efficiency measures conducted at MSU since 2014. MSU will provide to the City sub-metering data for MSU buildings for which efficiency measures have been completed. These data shall include metered water use both pre- and post- efficiency measure completion for each building that has seen efficiency measures completed. Respective demand offsets will be deternuned per building on an annual basis by subtracting the post-efficiency metered usage from pre-efficiency metered usage. The total respective water and wastewater demand offsets available is the summation of demand offsets calculated for each building that has seen completed efficiency measures. The City will evaluate the provided sub-metered data and will track and maintain a spreadsheet accounting for the total respective demand offsets available. The tracking spreadsheet will be shared with MSU upon request. The spreadsheet will be maintained periodically, but no less frequently than with each MSU development for which the demand offset are requested under this water and wastewater fee exemption program. The tracking spreadsheets will take the general form of Table 5 and Table 6 attached and made part of this Resolution. The City reserves the right to modify the tables as necessary over time. Page 6 of 7 Resolution 4939,Establishing a Water Impact Fee and Wastewater Impact Fee Exemption Program for MSU PART V—TERMINATION Either party may terminate this agreement by providing written notice to the City Manager \chief executive not less than six months prior to the date upon which the agreement will terminate. Any buildings for which a building permit has been issued prior to the date of notice of termination will complete development subject to the procedures of this agreement. Effective Date. This Resolution shall be in full force and effect immediately upon passage, adoption and approval of a separate Budget Resolution to amend the projected year-end fund balances of the FYI —FY23 CIP for the Water Impact Fee Fund and Wastewater Impact Fee Fund by the amounts shown in Column E of Table 1 and Table 2 herein. PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman,Montana at a regular session thereof held on the 23`d day of July, 2018. C THIA D US Mayor ATTEST: • .—A . - ROBIN CROUGH City Clerk 9c'•, 1883 ,•'��,' . CO Ito •'• APP VED AST FORM: LIVAN City Attorney Page 7 of 7 Table 5-MSU Water Impact Fee Credit Offset Tracking A B C D E F H Remaining Water Offset Credit Remaining Water Available based Offset Credit Total Water Offset Actual Metered on Deducting Available based Credit Available Water IF Fee Date Credit Offset Date of Full Use(gal/yr,at Col Remaining Water Impact Fee on Deducting Building (gallons) Basis(Gallons) Applied Occupancy 13+2yrs Credit Available Impactgallons Actual Usage Name-Development 1 7,780,OD0 Prior Row Value Col G Value or Column H, Name-Development 2 whichever applies Prior Row Value Col G Value or Column H, Name-Development 3 whichever applies Table 6-MSU Wastewater Impact Fee Credit Offset Tracking A B D E F -] Remaining Water Offset Credit Remaining Water Available based Offset Credit Total Water Offset Actual Metered on Deducting Available based Credit Available Water IF Fee Date Credit Offset Date of Full Use(gal/yr,at Col Remaining Water Impact Fee on Deducting Building (gallons) Basis(Gallons) Applied Occupancy B+2 yrs Credit Available Impact gallons Actual Usage Name-Development 1 7,780,000 Prior Row Value Col G Value or Column H, Name-Development 2 whichever applies Prior Row Value Col G Value or Column H, Name-Development 3 whichever applies Prior Row Value Col G Value or Column H, Name-Development 3 whichever applies Commission Resolution No.4939