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HomeMy WebLinkAbout12-17-18 City Commission Packet Materials - C6. Approve the Use of Water and Wastewater Impact Fee Credits for MSU Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Brian Heaston, Senior Engineer Chris Saunders, Community Development Manager SUBJECT: Approve the Use of Water and Wastewater Impact Fee Credit Offsets for the Montana State University New Residence Hall Project Pursuant to Commission Resolution No. 4939. MEETING DATE: December 17, 2018 AGENDA ITEM TYPE: Consent RECOMMENDATION: Approve the Use of Water and Wastewater Impact Fee Credit Offsets for the Montana State University New Residence Hall Project Pursuant to Commission Resolution No. 4939. BACKGROUND: The City Commission adopted Resolution 4939 on July 23, 2018, establishing, in part, a water and wastewater impact fee credit offset program (hereafter Program) for Montana State University. The resolution is attached for convenience. The general structure of the Program establishes water and wastewater impact fee offset credits in an amount equivalent to the total annual measurable reduction in water and wastewater demand achieved by ongoing indoor water conservation efforts conducted on the MSU campus since 2014. Campus meter data indicates that a total annual demand reduction of 7,780,000 gallons has been presently achieved over this time. This volume is thus the currently available water and wastewater impact fee offset credit balance for new MSU development projects to draw from. In its motion to adopt Resolution 4939, the City Commission vested with itself the authority to approve the use of water and wastewater impact fee offset credits for any new building development on the MSU campus for which payment of water and wastewater impact fees would otherwise be required. MSU has come forward with a request to draw from the currently available offset credit balance for its New Residence Hall project currently under construction. MSU has provided an annual water demand estimate for the project utilizing the actual annual average per capita demand for Yellowstone Residence Hall as the estimate basis. This per capita demand is multiplied by the occupancy load of the New Residence Hall to calculate the total average annual water demand anticipated for the building: 2,494,118 gallons. This value is tabulated on the offset tracking tables attached. Sufficient water and wastewater offset credit 92 balances exist to cover these new demands for water and wastewater service. Staff recommends the City Commission approve the use offset credits for the New Residence Hall project. FISCAL EFFECTS: The City will defer collection of water and wastewater impact fees for the New Residence Hall project as sufficient credit offset balance exists. ALTERNATIVES: As suggested by the Commission ATTACHMENTS: Credit Offset Tracking Tables Resolution 4939 93 Table 5 ‐ MSU Water Impact Fee Credit Offset TrackingABCDEFGHBuildingTotal Water Offset Credit Available (gallons)Water IF Fee Basis (Gallons)Date Credit Offset AppliedDate of Full OccupancyActual Metered Use (gal/yr, at Col D +2 yrsRemaining Water Offset Credit AvailableRemaining Water Offset Credit Available based on Deducting Impact Fee Impact gallons Remaining Water Offset Credit Available based on Deducting Actual UsageNew Residence Hall (2018) 7,780,000                     2,494,118             December, 17 2018 TBD TBD 5,285,882             5,285,882             TBDName ‐ Development 2Prior Row Value Col G or Column H, whichever appliesName ‐ Development 3Prior Row Value Col G or Column H, whichever appliesTable 6 ‐ MSU Wastewater Impact Fee Credit Offset TrackingABCDEFGHBuildingTotal Wastewater Offset Credit Available (gallons)Wastewater IF Fee Basis (Gallons)Date Credit Offset AppliedDate of Full OccupancyActual Metered Use (gal/yr, at Col D +2 yrsRemaining Wastewater Offset Credit AvailableRemaining Wastewater Offset Credit Available based on Deducting Impact Fee Impact gallons Remaining Wastewater Offset Credit Available based on Deducting Actual UsageNew Residence Hall (2018) 7,780,000                     2,494,118             December, 17 2018 TBD TBD 5,285,882             5,285,882             TBDName ‐ Development 2Prior Row Value Col G or Column H, whichever appliesName ‐ Development 3Prior Row Value Col G or Column H, whichever appliesCommission Resolution No. 493994 95 96 97 98 99 100 101 102