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Home My WebLink About12-22-20 City Commission Packet Materials - H1. Res 5207 Adopting CIP for FY22-26Memorandum REPORT TO:City Commission FROM:Kristin Donald, Finance Director SUBJECT:Resolution 5207, Adoption of the Capital Improvement Plan (CIP) for Fiscal Years 2022-2026 MEETING DATE:December 22, 2020 AGENDA ITEM TYPE:Resolution RECOMMENDATION:Move to adopt Resolution No. 5207, adopting the capital improvement plan for fiscal years 2022 to 2026 STRATEGIC PLAN:7.5. Funding and Delivery of City Services: Use equitable and sustainable sources of funding for appropriate City services, and deliver them in a lean and efficient manner. BACKGROUND:Planning for capital improvements is a matter of prudent financial management, as well, as sound development practice. At times of rapid growth, as we are experiencing, the need for expanded public facilities and services is at its peak. A carefully developed Capital Improvement Plan (CIP) for these expansions aids in communicating our intent to citizens and the development community. Each year, the City Manager is required to prepare a multi-year CIP and submit it to the Commission by December 15th. During the months of September, October, and November numerous staff meetings have taken place to develop this recommended plan. The program is designed and planned by fund. Within these funds, the method for paying for the project is determined. In the case of more expensive projects, or where resources are scarce, borrowing may be required and bonds and other financing mechanisms may be used. The CIP is adopted each year, but nothing is actually approved for spending until it is included in an approved budget. In addition, certain funding is not final until approved by voters on an election ballot. The CIP was posted on the website November 11, 2020 and was presented to the Commission over a series of meetings: 11/24/20- Overall Summary 11/24/20- Public Works Funds 12/1/20- General Fund 12/8/20- Other Funds 1 The final CIP document will include any correction of typos or calculation errors identified, and the removal of FE12 due to CARES Act funding. See the attached Resolution 5207 with the CIP financial summary. The Commission instructed the City Manager to explore possible funding options to fund additional bike and pedestrian projects. The staff have explored multiple options, in addition, staff have summarized recent improvements and ones funded throughout the plan (since multiple funds have projects). See Bike and Pedestrian Memo for the analysis and recommendation. UNRESOLVED ISSUES:Possibility of additional funding for bike and pedestrian projects. ALTERNATIVES:As suggested by the City Commission, if the Commission does not adopt the resolution tonight, it can be scheduled for approval on a later agenda but must be done before March 15th. FISCAL EFFECTS:This step in the process has no fiscal effect. Once adopted, the Capital Improvement Plan becomes the basis of the City Manager's Recommended Budget for FY22. Projects and equipment purchases can only be made after being included in an Approved Budget. Attachments: Resolution - 5207 CIP FY22 - FY26.docx Bike and Ped Memo.pdf Report compiled on: December 13, 2020 2 Page 1 of 3 COMMISSION RESOLUTION NO. 5207 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, ADOPTING THE CAPITAL IMPROVEMENT PLAN FOR FISCAL YEARS 2022 TO 2026. WHEREAS,the City of Bozeman Charter Article 5.06 requires the City Manager too submit a multi-year capital program. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, that the Capital Improvement Plan for Fiscal Years 2022 to 2026, as attached hereto and by this reference made a part here to of, is hereby adopted. PASSED AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 22nd day of December, 2020. ___________________________________ CYNDY ANDRUS Mayor ATTEST: ___________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 3 Page 2 of 3 4 Page 3 of 3 FY22 FY23 FY24 FY25 FY26 TOTAL SCHEDULED PROJECTS Unscheduled Arterial and Collector District 2,735,000 4,250,000 1,000,000 500,000 3,050,000 11,535,000 16,500,000 Building Inspection Fund - - - - - - 357,500 Community Development - - - - - - 180,000 Fire Equipment & Capital Replacement 502,885 261,161 214,033 703,963 1,260,389 2,942,431 3,178,600 Fire Impact Fee - - - - - - 7,265,000 Forestry 160,000 65,000 75,000 - 42,000 342,000 - General Fund 1,257,717 9,638,900 1,184,320 51,447,060 667,000 64,194,997 2,163,000 Library Depreciation 4,072,000 72,000 - - - 4,144,000 - Parks & Trails 1,185,000 868,000 944,000 1,549,600 1,500,000 6,046,600 5,325,000 Parking 285,000 300,000 410,000 - - 995,000 - Solid Waste Collection & Recycling 770,000 625,000 645,000 330,000 330,000 2,700,000 - Storm Water Utility 960,000 732,250 754,612 1,077,093 1,348,812 4,872,767 85,000 Street & Curb Reconstructions 1,496,474 2,388,908 2,112,724 1,861,763 2,041,940 9,901,809 9,402,000 Street Impact Fee 3,600,000 8,900,000 3,700,000 2,650,000 5,900,000 24,750,000 27,600,000 Street Maintenance District 2,974,039 2,232,000 2,206,000 2,365,000 2,736,000 12,513,039 325,000 Wastewater Fund 1,950,000 2,217,818 2,905,903 2,040,365 1,720,900 10,834,986 50,155,000 Wastewater Impact Fee 300,000 1,500,000 3,200,000 - 5,000,000 10,000,000 20,000,000 Water Fund 5,005,500 7,932,757 9,937,816 2,827,206 4,675,500 30,378,779 7,155,000 Water Impact Fee 1,505,000 8,300,000 350,000 - - 10,155,000 42,500,000 Internal Service Fund - Vehicle Maint - 45,000 - - - 45,000 - Internal Service Fund - Public Works 35,000 - 65,000 - - 100,000 - Total 28,793,615$ 50,328,794$ 29,704,408$ 67,352,050$ 30,272,541$ 206,451,408$ 192,191,100$ Scheduled Projects 5 Bike and Pedestrian Project Funding Background Bike and Pedestrian projects have been included in the Capital Improvement Plan (CIP) for many years and are now funded through multiple street funding sources. In addition, through the TOPS bond, Cash‐in‐lieu of Parkland, and Urban Renewal District funds we have added or recently approved new trails and improvements to our system. The Strategic Plan adoption has further guided us to increase funding the last two years, specifically 4.5 a Enhance Non‐ motorized Transportation. Recently there has been some public comments around increasing the funding for bike and pedestrian projects, and the Commission requested we look at the possible additional funding. Recent Projects The City has made great strides in adding bike and pedestrian improvements throughout the City with multiple funding sources and partners. Bike and Pedestrian Street Improvements City staff calculated the proportion of recent (past two years) street corridor projects that was used to improve the bike and pedestrian facilities on those projects ranged from 20%‐30% of total project costs indicating a significant investment in non‐ motorized facilities. The estimated total in the plan for these improvements in the past two years is about $2.4 million. A half mile of separated bike path on Manley Road connecting Griffin Street to Glen Lake Rotary Park recently completed, was funded through a Special Improvement District, in which the property owners that benefit pay for funding the improvements. See Map in Exhibit A, attached, that shows recent City Streets Projects with Bike and Pedestrian Improvements. This map shows projects completed in the last two years. Trails and Multi‐Use Paths: Recently, we have had many trail and multi‐use paths additions through the TOPS bond program. TOPS bonds are repaid via a tax levy FY21 was 8.31 mills, an estimated $41 for the median home taxpayer. Recent projects include the Path to the M and Drinking Horse. This is 2.5 miles of multi‐use path, including bike/ped highway underpass (TOP Match of $675K leveraged $4.3 million). With the addition of Story Mill Community Park about 2 miles trail system was added (TOP Match for trails ~$225K leveraged $324.5K). Trails and Multi‐Use Paths Recently Approved for Funding through TOP bonds  Oak Street Separated Path extension – construct a separated pathway and bike/ped bridge extending the Oak Street Pathway from Rouse to Wallace and connecting to Story Mill Spur Trail. TOP Bond Fund $288,787.76  Design and Engineering of Frontage Road Pathway (from MDT @ Nelson Rd to Cherry River Fishing Access). TOP Bond Fund $90,000  East/West Pathways and Trails Connections, and Bike /Ped Safety Improvement Project. TOP Bond Funding $99,612.51 Over $2.4 million in non‐motorized facilities over the last two years 4.5 miles of trail/multi‐ use paths added to trail system in the last 2 years 6 Included in Proposed CIP We have many projects in the proposed CIP that will address bike pedestrian needs, which focus on connecting long sections of missing segments of sidewalk, shared use paths, or bike lanes. A map of such projects can be found in Exhibit B, attached, that shows FY 22‐26 City Streets Projects with Bike and Pedestrian Improvements. This map shows projects to be completed in the next 5 years. The funding and plan for these improvements are summarized below. Bike and Pedestrian Street Improvements Street Impact Fee & A&C District street capacity projects: All the road projects funded by the Street Impact Fee fund will include bike lanes. As stated before, street corridor projects will improve the bike and pedestrian facilities on those projects ranging from 20%‐30% of total project costs indicating a significant investment in non‐motorized facilities. A&C Bike & Pedestrian Specific Projects: A standalone bike/pedestrian project, A&C007 for $300,000 in Fiscal Year 26 arterial and collector district funds per requests from the BABAB and PTSC based on a prioritization scoring system with the intent to schedule new standalone bike/pedestrian projects in future capital plans. With all the priority long standing projects in the plan this is the soonest it could be scheduled without raising the assessment significantly. Street Maintenance District funding: The fund has scheduled annual bike improvements and starting in FY23 and continuing the next three plan year additional bike and sidewalk improvements totaling $450,000. This is an increase of $250,000 over last year’s plan. Trails and Multi‐Use Paths: Park and Trails District funding Projects: The plan includes deferred maintenance specifically for trail and park bridge replacements PTD08 $300,000. The following grants are being pursued in coordination with partner organizations/ agencies to further trail efforts:  $12,500 Safe Routes to Parks for park and trails plan engagement (HRDC, WTI, COB)  $50K Montana Tourism for wayfinding (GVLT, COB)  $300K FLAP Phase II (COB, USFWS, USFS, MDT, GVLT, WTI) for Creekwood underpass  $45K MT Trail Stewardship Grant for West Side Pathways (GVLT, COB) See Exhibit C, attached, that shows the recent larger trails projects and the trail improvements that are needed and being planned as part of addressing deferred maintenance. Options for Funding Additional Projects There are limited funding options to increase the funding for these types of projects on top of what we are already funding. We have looked into funding options and have described them, provided pro and cons, and if possible any tax payer impact. See Exhibit D for the possible funding options. The options presented can also be combined as well with specific direction. Project # Project Name FY2022 FY2023 FY2024 FY2025 FY2026 STR20 Annual Bike Path Improvement 50,000 50,000 50,000 50,000 50,000 STR116 Annual Bike Path Improvement ‐ 25,000 25,000 25,000 25,000 STR117 Annual Sidewalk Fund ‐ 25,000 25,000 25,000 25,000 Fiscal Year totals 50,000 100,000 100,000 100,000 100,000 Current CIP Requests Over 20% of street corridor projects are funding bike/ped facilities 7 Recommendation Adopt the CIP as presented with request that staff include $500,000 from the SID resurfacing Fund (Funding Option‐ A only) into the FY22 budget and include increased additional bike and pedestrian improvements in the next CIP based on Commission priorities and initiatives. Recommend motion for amendment to the Resolution: I move to amend Resolution 5207 to include $500,000 from the SID Resurfacing fund for bike and pedestrian improvement projects in FY22. 8 This map was created by the City of Bozeman Engineering Department on 12/9/2020 and is intended for planning purposes only. 0 0.85 1.70.42 Miles Recent City Streets Projects With Bike and Pedestrian Improvements 19th19thBaxter Main PeachDurston Oak Huffine College Kagy Bridger CottonwoodFergusonFowlerS11th7thRouseChurchHighlandI90 Babcock Oak GriffinDavisI90 Story MillVal ley Center Many Improvements in the past two years focused around the new High School to prepare for opening. This map does not include developer installed bike/pedestrian improvements. Each year, $50,000 has been set aside for bike/ pedestrian improvements. To date, that has gone primarily to striping. Project Total Project Cost Bike/Ped Portion of Cost% Dedicated to Bike/Ped Durston Rd from Flanders Mill to Fowler Ave $3,561,215.00 $896,698.98 25% Cottonwood Road From Babcock to Durston $4,875,559.00 $444,747.05 9% Cottonwood Road From Durston to Oak St $1,013,793.00 $229,479.30 23% Oak St from Cottonwood to Flanders Mill $705,215.00 $202,427.12 29% Manley Road from Griffin to City Limits $3,251,176.60 487, 936.00 15% Graf & S 3rd Round-a-bout $869,986.95 400, 379.10 46% 27th & Oak St $841,215.88 $110,646.50 13% Oak and Cottonwood Round-a-bout $1,695,603.31 $423,900.83 25% Bike Pedestrian Striping $100,000.00 $100,000.00 100% Total Bike/Ped Improvements $2,407,899.78 Graf 9 0 1 20.5 Miles FY22-26 City Streets Projects With Bike and Pedestrian Improvements This map was created by the City of Bozeman Engineering Department on 12/9/2020 and is intended for planning purposes only.19th19thBaxter Main PeachDurston Oak Huffine College Kagy Bridger CottonwoodFergusonFowlerS11th7thRouseChurchHighlandI90 Babcock Oak GriffinDavisI90 Story MillVal ley Center 19th Ave Path Babcock St - Bike Lanes & Sidewalks Cottonwood/Baxter Intersection - Round- About, Shared Use Paths, HAWK Signal Fowler - Shared Use Paths, Pedestrian Crossings Griffin Dr (7th to Rouse) - Shared Use Paths Kagy - 19th to S 3rd - Sidewalks & Separated Bike Lanes Story Mill Intersection - Shared Use Paths & Sidewalks Bike and Pedestrian Projects PROJECT_NAME Baxter & Cottonwood Intersection - Round-about, Shared Use Paths, HAWK signal Kagy & Sourdough Intersection - Sidewalks, Bike Lanes Bike and Pedestrian Projects PROJECT_NAME Babcock (11th to 15th) - Bike Lane & Sidewalk Babcock (15th to 19th) - Bike Lane & Sidewalk Cottonwood Road (Oak to Baxter) - Shared Use Paths, Bike Lanes Fowler Connection (Huffine to Oak) - Shared Use Paths, Pedestrian Crossings Griffin (7th to Rouse) -Shared Use Paths Kagy (Willson to 19th) - Sidewalks, Separated Bike Lanes Story Mill (Griffin to Bridger) - Shared Use Paths, Sidewalks Valley Center Pathway - Shared Use Pathway Project Total Project Cost Bike/Ped Portion of Cost Story Mill & Intersection Improv 2,000,000.00$460,000.00$ Griffin Dr (7th to Rouse)3,746,393.75$861,670.56$ Fowler (Oak to Huffine)10,833,000.00$2,491,590.00$ Babcock (19th to 15th)1,300,000.00$299,000.00$ Babcock (15th to 11th)2,000,000.00$460,000.00$ Cottonwood (Oak to Baxter)3,670,000.00$844,100.00$ Kagy (19th to S 3rd)2,000,000.00$460,000.00$ Sourdough & Kagy Intersection 85,000.00$19,550.00$ Valley Center Pathway 160,000.00$160,000.00$ Baxter & Cottonwood Intersection 2,500,000.00$575,000.00$ Total Bike/Ped Improvements 3,196,214.88$ 10 0 0.5 1 1.5 20.3 Miles Created by the City of Bozeman GIS Department. Intended for planning purposes only. Planned Improvements Bridges to Replace Sidewalk Replacement Complete Prospective Trail Condition Good Fair Poor GF340- Additional Bridge at Story Mill Community Park GF108 PTD08 Front St. Connector Trail Parks Department Bike & Pedestrian Improvements 11 Exhibit DFunding Option A ‐ SID Resurfacing fund (Formerly Sinking Fund) Funding Option B ‐ A&C District Assessment Funding Option C ‐ Stand Alone Bond QuestionFunding Option D ‐ Parks and Trails District AssessmentFunding Option E ‐ Levy General Fund Mills or Plan CutsYear and FundingFY22‐ $500,000FY22 ‐ FY25 $200,000 and FY26 has a planned project FY? ‐ $1,000,000 or more FY27‐ can have trail expansion with further ramp up of the assessments to cover an annual amountFY22‐ $50,000‐ $500,000 AboutPropose using some of the funds that have been paid back from SID's. This will be one time funding and the remaining $3 million needs to go towards funding future SID's for reconstructing roads.For FY22 extra $200,000 would require a 15% increase in assessment. The assessment again would need to be increased 20% in FY23 to continue the $200,000 a year. These funds can only be used on Arterial and Collector streets and not local streets.Voter Approval needed ‐ We could propose a stand alone bond question for bike/pedestrian projects, allowing the voters to choose to increase taxes for this purpose. The current plan already has a ramp up of property assessments as we increase level of service and addressing the $6.8 million in deferred maintenance. We could further increase the assessment to expand trails or cut current items, such as splash pads and deferred maintenance on our existing trails to make room for expansion We could make reductions in the current General Fund capital plan, although that would be difficult to do. An increase in mills is needed to fund the General fund CIP as presented. We could also increase tax levy amounts because we are currenlty under the tax cap. However, doing so would limit other strategic items and areas that need funding and were going to proceed based on tax levy increases. (Our current tax cap calculations account for 9 mills set aside for 911 operations and 4 mills needed to operate the Bozeman Public Safety Center.) Tax Payer impactNone Estimated Averaged Sized lot impact‐ FY22 $9.07 increase and FY23 $10.61 Based on Mills levied ‐ Estimated annual payment for $1M bond issuance would 0.4 mills for annual re‐payment of the bonds (about $1.51 for the median home) Increased assessment timing depending on timing (FY27 or if decide to do sooner would make the ramp up already planned to be greater)Depends if additional mills levied (FY21 the estimated amount per mill for the median home was $4.89)Pros of the optionEasily budgeted in FY22. Gives staff a number of months to examine project possibilities and options. Can build in funds annually and increase the assessment as needed.Dedicated funding for the specific bike and pedestrian projectsThe assessment can be adjusted to increase fundingCan be levied each year Cons of the optionOne time money. We do not anticipate having excess funds available in future years.No local Streets, arterial and collector streets only. One time money ‐ bond amount received for project construction. Timing with the two other large bond projects in this capital plan could make this difficult with other ballot questions and community/voter education efforts. Trails only no street projects. The District is already doing a ramp up the national average level of service, maintaining the new parks added by TOPS and tackling the $6.8M of deferred maintenance. Expanding trails would be difficult.Other areas would need to be re‐prioritized and/or some critical maintenance or IT needs would need to be delayed.12