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HomeMy WebLinkAboutPublic Hearing and Adoption of Parts within the Capital Improvements Plan Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Anna Rosenberry, Finance Director Chris Kukulski, City Manager SUBJECT: Public Hearing & Adoption of Parts of the Capital Improvements Program (CIP) for Fiscal Years 2010-2014. • Street Impact Fees • Fire Impact Fees • Water Impact Fees • Wastewater Impact Fees • Building Inspection Fund • Fire Capital and Equipment Replacement Fund MEETING DATE: January 12, 2009 BACKGROUND: On December 15, 2008, the Commission received the City Manager’s proposed Capital Improvements Program (CIP) for Fiscal Years 2010-2014. At that time, the document was made available to staff and the public online at http://www.bozeman.net/finance/capital_improvements_plan.aspx. We are presenting the CIP for adoption in its individual parts, over a number of public hearings. The presentation of the CIP for the Water Fund, Wastewater Fund, Solid Waste Fund, Street Maintenance Fund and Forestry (Tree) Fund is scheduled for January 26th. The presentation of the CIP for the General Fund is scheduled for February 2nd. 81 Our Capital Improvements Program serves as an important guide for city staff, Commissioners, and citizens, and plans for over $125 Million to be invested in our City’s equipment and infrastructure in the next 5 years. It establishes a systematic, five-year view of resource allocation in hopes of preventing a reactive, unpredictable, or informal approach to funding capital needs. The CIP bases much of its project work on the City’s adopted facility plans for water, wastewater, transportation, parks & recreation, fire, and police services. Developing a Capital Improvements Plan is, first and foremost, a planning process - adopting a CIP does not provide budget appropriation authority. Items must be included in the final budget resolution before they are funded. The items listed in the FY2010 column of the adopted CIP will be included in the City Manager’s Recommended Budget to be presented in June. Through our regular budget process, the Commission will then have the opportunity to take additional public comments, further discussion, and make final appropriation for these capital items in the Final Budget adoption in late August. It is not until the final budget adoption that any CIP item is authorized for spending. Advisory Board: For all of the Impact Fee CIP Schedules (Water, Wastewater, Streets, & Fire), the Impact Fee Advisory Board has reviewed and voted on the schedules. At their meeting on December 4th they approved all of the schedules. The approval of the CIP for Street Impact Fees was the most vigorously discussed, with the recommendation that the City Commission receive additional information from staff on the timing and necessity for the Intersection Improvements at the corner of College and 8th street. They approved the Water Impact Fee CIP, with the recommendation that the City Commission receive additional information from staff as to the timing and amount scheduled for preliminary design work on the Sourdough Creek Dam. The minutes from their meetings are attached for your review. Unscheduled Items: Projects are listed as “unscheduled” for any number of reasons, the most common of which is lack of funding during the plan years. Projects that we know will be needed in the next few years after the plan (FY15-FY18) are sometimes included in the plan as “unscheduled” so that everyone can be aware they are on the horizon. Projects that are needed 82 but are not ready for design or bid (often street expansions that do not have much of the required right-of-way) are also sometimes listed as “unscheduled”. Project Cost Estimates: All project and equipment costs are estimates that will not be finalized until the City accepts a qualified bid for that specific project or equipment. We have used the best information available to estimate these amounts, including knowledge of similar, recent projects or purchases. When available, we have used the most recent engineer’s estimate of costs. RECOMMENDATION: Take public comment, make desired changes to the plan, and adopt the Capital Improvements Program for FY10-14. FISCAL EFFECTS: Approving this plan does not provide appropriation authority. The FY09 projects and equipment will be incorporated into the FY10 City Manager’s Recommended Budget, which requires final approval before these projects will be funded. The remaining CIP years (FY11-FY14) serve as a work plan to guide staff, and will be reviewed and revised in the coming fall for our annual update of the CIP at this time next year. ALTERNATIVES: As suggested by the City Commission. Respectfully submitted, Anna Rosenberry, Finance Director Chris A. Kukulski, City Manager Report compiled on: January 5, 2009 Attachments: Impact Fee Advisory Board Minutes, On File in the City Clerk’s Office: Capital Improvements Program for Fiscal Years 2010-2014 83 STREET IMPACT FEE FUNDSUMMARY OF CIP BALANCES, REVENUES AND EXPENDITURESCIP Plan FY10-14Current Year ----------------------------------------Projected----------------------------------------FY09 FY10 FY11 FY12 FY13 FY14Projected Beginning Restricted Cash Balance 7,270,000$ 2,845,000$ 3,504,500$ 3,199,190$ 1,439,774$ 2,556,969$ Add: Impact Fee Revenue 1,725,000 1,759,500 1,794,690 1,830,584 1,867,195 1,904,539 Other Funding Sources - 1,350,000 2,300,000 100,000 2,264,000 Less: Scheduled CIP Expenditures 6,150,000 1,100,000 3,450,000 5,890,000 850,000 6,260,000 __________ __________ __________ __________ __________ __________Projected Year-End Restricted Cash Balance 2,845,000$ 3,504,500$ 3,199,190$ 1,439,774$ 2,556,969$ 465,509$ 84 STREET IMPACT FEE FUNDREVENUE PROJECTIONSCurrent Year ----------------------------------------Projected----------------------------------------FY09 FY10 FY11 FY12 FY13 FY14Growth Rate2% 2% 2% 2% 2%Projected Impact Fee Revenues 1,600,000$ 1,632,000$ 1,664,640$ 1,697,933$ 1,731,891$ 1,766,529$ Interest Earnings (Charges) 125,000 71,125 87,613 79,980 35,994 63,924 __________ __________ __________ __________ __________ __________Impact Fees Dedicated to CIP 1,725,000$ 1,759,500$ 1,794,690$ 1,830,584$ 1,867,195$ 1,904,539$ Add Other Revenue Sources: 1. SID or Other: SIF02 - Baxter (19th to Cottonwood) 1,350,000 2. State Urban Funds: SIF06 - College (Main to 19th) 100,000 100,000 2,264,000 3. SID or Other: SIF 08 - Durston (Fowler to Cottonwood) 2,200,000 __________ __________ __________ __________ __________ __________Total Other Revenue Sources - - 1,350,000 2,300,000 100,000 2,264,000 __________ __________ __________ __________ __________ __________Total All Revenue Sources 1,725,000$ 1,759,500$ 3,144,690$ 4,130,584$ 1,967,195$ 4,168,539$ 85 CITY OF BOZEMANCAPITAL IMPROVEMENTS PROGRAM STREET IMPACT FEE PROJECTSItem ----------------------------Projected Costs by Fiscal Year------------------------------- Not # Project Title Department/Division CategoryFY10 FY11 FY12 FY13 FY14 Total ScheduledSIF01RIGHT OF WAY ACQUISITION STR IMPACT FEESProject 100,000 100,000 100,000 100,000 100,000 500,000 SIF02BAXTER (19TH TO COTTONWOOD) STR IMPACT FEESProject 500,000 2,850,000 3,350,000 SIF04CHURCH STR IMPACT FEESProject- 5,800,000 SIF05COLLEGE (8TH TO 19TH) STR IMPACT FEESProject- 2,000,000 SIF06COLLEGE (MAIN TO 19TH) STR IMPACT FEESProject 250,000 250,000 5,660,000 6,160,000 SIF08DURSTON (FOWLER TO COTTONWOOD) STR IMPACT FEESProject 500,000 5,000,000 5,500,000 SIF09KAGY (WILLSON TO 19TH) STR IMPACT FEESProject- 6,650,000 SIF10OAK (CEDAR TO MAIN STREET) STR IMPACT FEESProject- UNKNOWNSIF11OAK (ROUSE TO CEDAR) STR IMPACT FEESProject 500,000 500,000 1,000,000 7,900,000 SIF19INTERSECTION CONTROL: 27th & OAK STR IMPACT FEESProject - 500,000 SIF20INTERSECTION CONTROL: 7th & KAGY STR IMPACT FEESProject 540,000 540,000 SIF21GRAF STREET CONNECTION STR IMPACT FEESProject- 1,000,000 SIF22INTERSECTION CONTROL: COLLEGE & 8TH STR IMPACT FEESProject 500,000 500,000 Total1,100,000$ 3,450,000$ 5,890,000$ 850,000$ 6,260,000$ 17,050,000$ 23,850,000$ Note: Projects with external funding sources (ie. Federal Appropriations, grants, urban funds, or developer contributions) indicate "total project costs", with correspondingrevenue sources indicated on the revenue schedule. Projects financed completely with City dollars but out of separate City funds are shown with the respective funding amount ineach schedule of the CIP.86 City of Bozeman Capital Improvements Plan FY10-14 Project Name: Right of Way Acquisition (on-going) Estimated Cost: $100,000 each year Project Number: Street Impact Fees – SIF 01 Date Scheduled: FY10 – FY14 Purpose: ■ New □ Replacement ■ Facility □ Equipment Project Description: Annual allocation available for right-of-way purchases as they become available. Purchasing additional right-of-way is critical to expanding the capacity of streets in the city. This is deemed to be 100% impact fee eligible – as additional right-of-way is not required if we are not expanding the capacity of the street. Alternatives Considered: 1. Condemn property for right-of-way; pay court costs as well as appraised value of property. Time consuming for city staff and a relatively expensive process. 2. Wait for land to develop and acquire additional right-of-way through annexation or subdivision. Advantages of Approving this Project: Provides dollars for the purchase of necessary right-of-way as it becomes available on the market. Avoids the expensive, antagonistic condemnation process where possible. Estimated New Future Recurring Costs: Annual Operating & Maintenance Costs: Street Impact Fees can not be spent on operating and maintaining facilities. There is expected to be a very minimal, incremental cost to the Street Maintenance District from this expenditure. Funding Sources: 100% Street Impact Fees 87 City of Bozeman Capital Improvements Plan FY10-14 Project Name: Baxter (19TH to Cottonwood) Estimated Cost: Total Project: $3,350,000; $2,000,000 from Street Impact Fees Project Number: Street Impact Fees – SIF 02 Date Scheduled: Design – FY10 Const. – FY11 Purpose: ■ New □ Replacement ■ Facility □ Equipment Project Description: Reconstruct Baxter Lane (from 19th Avenue to Cottonwood) to a Minor Arterial standard as shown in the Transportation Plan. Continued development in the northwest quadrant of the City insures that this improvement will be needed in the not too distant future. It is estimated that approximately 60% of this project will be eligible for impact fees. The remainder of project costs would need to come from Special Improvement District assessments on property in the area. Construction is expected to occur in FY11. Alternatives Considered: Full payment by SID, or developer constructed. Advantages of Approving this Project: Improved capacity and safety in this corridor; Estimated New Future Recurring Costs: Annual Operating & Maintenance Costs: Incremental increases in sweeping, plowing and general maintenance costs. Current cost estimate of $8,725 per street mile maintained annually. Funding Sources: 60% - Street Impact Fees = $2,000,000 40% - Special Improvement District (SID) or Other = $1,350,000 88 City of Bozeman Capital Improvements Plan FY10-14 Project Name: Church Estimated Cost: Total Project: $9,600,000; Street Impact Fees $5,800,000 Project Number: Street Impact Fees – SIF 04 Date Scheduled: Unscheduled Purpose: ■ New □ Replacement ■ Facility □ Equipment Project Description: Reconstruct Church Avenue to the collector standard identified in the Transportation plan from Main Street to Kagy Boulevard. The need for this project comes from increased traffic due to growth in the South Bozeman area as well as the county area south of Bozeman– making this project eligible for impact fee funds. While this improvement is identified in the transportation plan as recommended major improvement 26, Right-of-Way issues will likely make this one of the most difficult and expensive street projects in the City’s future. Church is designated an Urban Route, and would be eligible for the expenditure of Urban Funds. Alternatives Considered: Use of Urban Funds, or creation of an SID for full financing. Advantages of Approving this Project: Improved safety and capacity, both for motorized vehicles as well as bicycles and pedestrians. The use of street impact fee funds enables the community to leverage the available State Urban transportation funds to complete other projects and address more of the city’s pressing transportation needs. Estimated New Future Recurring Costs: Annual Operating & Maintenance Costs: Incremental increases in sweeping, plowing and general maintenance costs. Current cost estimate of $8,725 per street mile maintained annually. Funding Sources: 60% - Street Impact Fees = $5,800,000 40% - Urban Funds, SID, or other sources = $3,800,000 89 City of Bozeman Capital Improvements Plan FY10-14 Project Name: College (8th to 19th) Estimated Cost: Total Project: $3,350,000; Street Impact Fees $2,000,000 Project Number: Street Impact Fees – SIF 05 Date Scheduled: Unscheduled Purpose: ■ New □ Replacement ■ Facility □ Equipment Project Description: Reconstruct West College Street (from 8th Avenue to 19th Avenue) to a minor arterial standard as shown in the Transportation Plan. This section of West College has already exceeded the volume of traffic it was projected to carry in 2020 according to the Transportation Plan. Planned improvements to South 19th and increased development in the South 19th corridor will only further increase traffic demand on this facility. Additionally this facility lacks pedestrian and bicycle facilities. Alternatives Considered: Use of Urban funds for full financing, CTEP grants if available. Advantages of Approving this Project: Improved safety and capacity, both for motorized vehicles as well as bicycles and pedestrians. The use of street impact fee funds enables the community to leverage the available State Urban transportation funds to complete other projects and address more of the city’s pressing transportation needs. Estimated New Future Recurring Costs: Annual Operating & Maintenance Costs: Incremental increases in sweeping, plowing and general maintenance costs. Current cost estimate of $8,725 per street mile maintained annually. Funding Sources: 60% - Street Impact Fees = $2,000,000 40% - State Urban Funds = $1,350,000 Photo #1 90 City of Bozeman Capital Improvements Plan FY10-14 Project Name: College (Main to 19th) Estimated Cost: Total Project: $6,160,000; Street Impact Fees $3,696,000 Project Number: Street Impact Fees – SIF 06 Date Scheduled: FY12 - FY14 Purpose: ■ New □ Replacement ■ Facility □ Equipment Project Description: Reconstruct West College Street from Main Street (Huffine Lane) to 19th Avenue to a principal arterial standard as shown in the Transportation Plan. This section of West College has already exceeded the volume of traffic it was projected to carry in 2010 according to the Transportation Plan. In the peak AM hour traffic is backed up from 19th to Huffine and beyond. Planned improvements to South 19th and increased development in the Huffine Lane corridor will only further increase traffic demand on this facility. In addition this facility lacks pedestrian and bicycle facilities. Alternatives Considered: Use of Urban funds for full financing, CTEP grants if available. Advantages of Approving this Project: Improved safety and capacity, both for motorized vehicles as well as bicycles and pedestrians. The use of street impact fee funds enables the community to leverage the available State Urban transportation funds to complete other projects and address more of the city’s pressing transportation needs. Estimated New Future Recurring Costs: Annual Operating & Maintenance Costs: Incremental increases in sweeping, plowing and general maintenance costs. Current cost estimate of $8,725 per street mile maintained annually. Funding Sources: 60% - Street Impact Fees = $3,696,000 40% - State Urban Funds = $2,464,000 Photo #1 91 Project Name: Durston (Fowler to Cottonwood) Estimated Cost: Total Project: $5,500,000; Street Impact Fees $3,300,000 Project Number: Street Impact Fees – SIF 08 Date Scheduled: FY11 & FY12 Purpose: ■ New □ Replacement ■ Facility □ Equipment Project Description: While this section of Durston Road was not anticipated in the 1993 Transportation Plan to carry significant traffic volumes, it is apparent from recent development activity that the areas served by this collector roadway may cause the predicted volumes to be exceeded. Incremental improvement of Durston Road with development projects may be possible, thus preventing a severe drop in service level similar to that experienced on West Babcock Street. Alternatives Considered: SID for full financing, or incremental construction by developers. Advantages of Approving this Project: Improved safety and capacity, both for motorized vehicles as well as bicycles and pedestrians. The use of street impact fee funds enables the community to leverage the available State Urban transportation funds to complete other projects and address more of the city’s pressing transportation needs. Estimated New Future Recurring Costs: Annual Operating & Maintenance Costs: Incremental increases in sweeping, plowing and general maintenance costs. Current cost estimate of $8,725 per street mile maintained annually. Funding Sources: 60% - Street Impact Fees = $3,300,000 40% - Special Improvement District = $2,200,000 City of Bozeman Capital Improvements Plan FY10-14 92 Project Name: Kagy (Willson to 19th) Estimated Cost: Total Project: $6,650,000; Street Impact Fees $4,000,000 Project Number: Street Impact Fees – SIF 09 Date Scheduled: Unscheduled Purpose: ■ New □ Replacement ■ Facility □ Equipment Project Description: Widen Kagy Boulevard and add turning lanes at key intersections. This portion of Kagy currently carries about 9,000 vehicles per day. The capacity this two lane street can reasonably carry is about 12,000 vehicles per day. Expansion of capacity will be needed in the foreseeable future to handle current and future traffic loads. Kagy serves as an important element of Bozeman's perimeter street system connecting Highland Blvd., Willson Ave. and S.19th. It also serves as the primary access to Montana State University and the University's major athletic facilities. Alternatives Considered: Pursue the use of Urban Funds. Advantages of Approving this Project: Kagy is a State Urban Route and is eligible for expenditure of State urban funds designated annually for the City of Bozeman; however, the availability of urban funds cannot match the pace of the City's transportation improvement needs. The need for this project comes from increased traffic due to growth in the Bozeman area and the project is eligible for Impact Fee Funds. Use of Street Impact Funds enables the community to leverage the available State Urban transportation funds to complete projects and address more of its pressing transportation needs. Estimated New Future Recurring Costs: Annual Operating & Maintenance Costs: Incremental increases in sweeping, plowing and general maintenance costs. Current cost estimate of $8,725 per street mile maintained annually. Funding Sources: 60% - Street Impact Fees = $4,000,000 40% - State Urban Funds = $2,650,000 City of Bozeman Capital Improvements Plan FY10-14 93 Project Name: Oak (Cedar to Main) Estimated Cost: Total Project: UNKNOWN Project Number: Street Impact Fees – SIF 10 Date Scheduled: Unscheduled Purpose: ■ New □ Replacement ■ Facility □ Equipment Project Description: Construct Oak Street from Rouse to Cedar to a collector standard as identified in the Transportation Plan. This would make development of an important and underutilized portion of the City possible, including reclamation of what was a superfund site (Idaho Pole). Because of the complicated right-of-way, superfund, and wetland issues, it is very difficult to estimate the costs of this project. It is included in this schedule with costs “Unknown” because it has been identified as a project that could significantly improve travel, if it could be built. Alternatives Considered: SID or Developer Contributions for full construction. Advantages of Approving this Project: The need for this project comes from increased traffic due to growth in the Bozeman area and the project is eligible for Impact Fee Funds. Use of Street Impact Funds enables the community to leverage the available State Urban transportation funds to complete projects and address more of its pressing transportation needs. Estimated New Future Recurring Costs: Annual Operating & Maintenance Costs: Incremental increases in sweeping, plowing and general maintenance costs. Current cost estimate of $8,725 per street mile maintained annually. Funding Sources: Given the fact that this portion of street does not currently exist, the project will likely be eligible for Street Impact Fees. However, given the scope of the project, costs are unknown. City of Bozeman Capital Improvements Plan FY10-14 94 Project Name: Oak (Rouse to Cedar) Estimated Cost: Total Project: $8,900,000; Street Impact Fees $5,340,000 Project Number: Street Impact Fees – SIF 11 Date Scheduled: Design FY13 – FY14 Construction - Unscheduled Purpose: ■ New □ Replacement ■ Facility □ Equipment Project Description: Construct Oak Street from Rouse to Cedar to a collector standard as identified in the Transportation Plan. This would make development of an important and underutilized portion of the City possible, including reclamation of what was a superfund site (Idaho Pole). Alternatives Considered: SID or Developer Contributions for full construction. Advantages of Approving this Project: Kagy is a State Urban Route and is eligible for expenditure of State urban funds designated annually for the City of Bozeman; however, the availability of urban funds cannot match the pace of the City's transportation improvement needs. The need for this project comes from increased traffic due to growth in the Bozeman area and the project is eligible for Impact Fee Funds. Use of Street Impact Funds enables the community to leverage the available State Urban transportation funds to complete projects and address more of its pressing transportation needs. Estimated New Future Recurring Costs: Annual Operating & Maintenance Costs: Incremental increases in sweeping, plowing and general maintenance costs. Current cost estimate of $8,725 per street mile maintained annually. Funding Sources: 60% - Street Impact Fees = $5,340,000 40% - Other Sources (Developer Contribution, SID, TIF) = $3,560,000 City of Bozeman Capital Improvements Plan FY10-14 96 Project Name: Intersection Control: 27th & Oak Estimated Cost: $500,000 Project Number: Street Impact Fees – SIF 19 Date Scheduled: Unscheduled Purpose: ■ New □ Replacement ■ Facility □ Equipment Project Description: Control of the intersection of 27th Avenue and Oak Street, a collector and an arterial. Recent development proposals indicate that the need for this improvement will soon be warranted. If a signal is chosen, there may be some emergency maintenance/repair events should the signal fail per an existing agreement with MDT, but in general this will be an MDT maintained signal. . Alternatives Considered: Do nothing or consider other alternatives as suggested by the Montana Department of Transportation. Create an SID or identify and apply for other potential sources of funding (CMAQ…) Advantages of Approving this Project: Improved traffic flow and safety at this intersection. Estimated New Future Recurring Costs: Annual Operating Costs: Annual Maintenance Costs: Other Non-Capital Costs: Total: none Funding Sources: 100% Street Impact Fees City of Bozeman Capital Improvements Plan FY10-14 97 Project Name: Intersection Control: 7th & Kagy Estimated Cost: $540,000 Project Number: Street Impact Fees – SIF 20 Date Scheduled: FY12 Purpose: ■ New □ Replacement ■ Facility □ Equipment Project Description: Control of the intersection of 7th Avenue and Kagy, a collector and an arterial. Recent development proposals indicate that the need for this improvement will soon be warranted. If a signal is chosen, there may be some emergency maintenance/repair events should the signal fail per an existing agreement with MDT, but in general this will be an MDT maintained signal. Alternatives Considered: Do nothing or consider other alternatives as suggested by the Montana Department of Transportation. Create an SID or identify and apply for other potential sources of funding (CMAQ…) Advantages of Approving this Project: Improved traffic flow and safety at this intersection. Estimated New Future Recurring Costs: Annual Operating Costs: Annual Maintenance Costs: Other Non-Capital Costs: Total: none Funding Sources: 100% Street Impact Fees City of Bozeman Capital Improvements Plan FY10-14 98 Project Name: Graf Street Extension/Connection Estimated Cost: $1,000,000 Project Number: Street Impact Fees – SIF 21 Date Scheduled: Unscheduled Purpose: ■ New □ Replacement ■ Facility □ Equipment Project Description: This project is to extend Graf Street approximately ¼ mile in order to connect the street to allow through traffic to flow east from 19th Avenue. This is an important connection for public safety purposes – allowing fire service to meet their response time requirements in areas where they currently cannot. Alternatives Considered: Do nothing and wait for development to connect the street. Advantages of Approving this Project: Improved traffic flow and better emergency response to the local area. Estimated New Future Recurring Costs: Annual Operating & Maintenance Costs: Incremental increases in sweeping, plowing and general maintenance costs. Current cost estimate of $8,725 per street mile maintained annually. Funding Sources: 100% Street Impact Fee – to be recovered by developer payback. City of Bozeman Capital Improvements Plan FY10-14 99 Project Name: Intersection Control: West College Street /8th Avenue Intersection Improvements Estimated Cost: $500,000 Project Number: Street Impact Fees – SIF 22 Date Scheduled: FY10 Purpose: ■ New □ Replacement ■ Facility □ Equipment Project Description: Install improved control (roundabout or signal) at the intersection of West College Street and 8th Avenue, a minor arterial and a collector. This intersection has seen steadily increasing demand with the growth of MSU. The Draft 2007 Transportation Plan Update indicates that LOS issues are beginning to appear at this intersection. If a signal is chosen as the improvement, there may be some emergency maintenance/repair events should it fail per an existing agreement with MDT, but in general this would be an MDT maintained signal. This intersection improvement project will be identified as TSM 18 in the 2007 Greater Bozeman Area Transportation Plan Update. Alternatives Considered: Do nothing or consider other alternatives as suggested by the Montana Department of Transportation. Create an SID or identify and apply for other potential sources of funding (CMAQ…) Advantages of Approving this Project: Improved traffic flow and safety at this intersection. Estimated New Future Recurring Costs: Annual Operating Costs: Annual Maintenance Costs: Other Non-Capital Costs: Total: none Funding Sources: 100% Street Impact Fees City of Bozeman Capital Improvements Plan FY10-14 100 FIRE IMPACT FEE FUNDSUMMARY OF CIP BALANCES, REVENUES AND EXPENDITURESCIP FY2010-2014Current Year------------------------------------------Projected-----------------------------------------FY09 FY10 FY11 FY12 FY13 FY14Projected Beginning Restricted Cash Balance 2,260,000$ -$ -$ (0)$ (0)$ 0$ Add: Revenues Dedicated to CIP 222,000 185,640 189,353 193,140 197,003 200,943 Less: Scheduled CIP Expenditures 2,482,000 185,640 189,353 193,140 197,002 200,943 __________ __________ __________ __________ __________ __________Projected Year-End Restricted Cash Balance -$ -$ (0)$ (0)$ 0$ 0$ Page 1101 FIRE IMPACT FEE FUNDREVENUE PROJECTIONSCurrent Year ----------------------------------------Projected----------------------------------------FY09 FY10 FY11 FY12 FY13 FY14Projected Impact Fee Revenues 182,000$ 185,640$ 189,353$ 193,140$ 197,003$ 200,943$ Customer Growth Rate 2% 2% 2% 2% 2%__________ __________ __________ __________ __________ __________Impact Fees Dedicated to CIP 182,000$ 185,640$ 189,353$ 193,140$ 197,003$ 200,943$ Add Other Revenue Sources: Interest Earnings 40,000 - (0) (0) 0 0 Bond Issue or Other - __________ __________ __________ __________ __________ __________Total Other Revenue Sources 40,000 - - - - - __________ __________ __________ __________ __________ __________Total All Revenue Sources 222,000$ 185,640$ 189,353$ 193,140$ 197,003$ 200,943$ Notes:Page 2102 CITY OF BOZEMANCAPITAL IMPROVEMENTS PROGRAM FIRE IMPACT FEE PROJECTSItem -----------Projected Costs by Fiscal Year----------- Not # Project Title Department/Division CategoryFY10 FY11 FY12 FY13 FY14 Total ScheduledFIF03 TRAFFIC SIGNAL PREEMPTION FIRE IMPACT FEES Equipment - - 172,801 FIF06 FIRE STATION #4 FIRE IMPACT FEES Project- 2,771,366 FIF07 FIRE ENGINE STATION #4 FIRE IMPACT FEES Equipment- 598,363 FIF08 FIRE STATION #3 DEBT PAYMENT FIRE IMPACT FEES Project 185,640 189,353 193,140 197,002 200,943 966,078 26,223 ________ ________ ________ ________ ________ ________ ________Total185,640$ 189,353$ 193,140$ 197,002$ 200,943$ 966,078$ 3,568,753$ Page 3103 Project Name: Traffic Signal Preemption Program Estimated Cost: $172,801 Project Number: Fire Impact Fees – FIF03 Date Scheduled: Unscheduled Purpose: ■ New □ Replacement □ Facility ■ Equipment Project Description: This project is the installation of ten (10) fire apparatus emitters, intersection wiring, and signal receivers at approximately 17 city intersections to improve response times to emergencies throughout the community. This dual priority system uses precisely timed impulses of high intensity light in several wavelengths to activate a traffic control system which facilitates emergency vehicle response. Its dual priority capability allows the system to give top priority to emergency vehicles and secondary priority to other users, such as snow plows. For the last several years, most of the new traffic signals installed in Bozeman have included the signal-based modules and will not require upgrade as a part of this project. The installation of this system will allow traffic the green signal in the direction of the emergency responder, thus, facilitating travel to the emergency. Nationwide, this system's installation has reduced average emergency response times by as much as 17 to 20%, according to the vendor. Because Station location is based on response time, improving emergency response times generally decreases the need for additional physical fire stations to be built. This project will coincide with the MDOT’s installation of signal receivers on Main Street during their Summer 2007 project. They will be funding the costs for the Main Street portion, estimated at approx $9,000 per signal, including labor. Alternatives Considered: Continue to operate without a signal preemption system. Advantages of Approving this Project: This system's installation improves emergency response time and, more importantly, response safety in those communities where it is used. Its dual priority capability allows other users under a priority system to access signal preemption. It severely reduces the need for our emergency responders to occasionally travel into opposing lanes of traffic, a risky route to negotiate. And, it clearly allows traffic movement in the direction by the emergency responder. Estimated New Future Recurring Costs: Annual Operating & Maintenance Costs: Impact Fees can not be used for annual operating and maintenance costs. The General Fund will need to provide for repair and replacement of system components as they outlive their useful life. Funding Sources: 100% Fire Impact Fees City of Bozeman Capital Improvements Plan FY10-14 104 Project Name: Fire Station #4 – South West Bozeman Estimated Cost: $2,771,366 Project Number: Fire Impact Fees – FIF06 Date Scheduled: Unscheduled Purpose: ■ New □ Replacement ■ Facility □ Equipment Project Description: This project is identified as the top priority in the adopted Fire Facility Plan because most of the City's north and west areas are located such that our response time exceeds four to six minutes for fire and medical emergencies. Land acquisition costs are not included. The City currently owns the site on the southwest corner of 19th Avenue and Graf Street, which is ideally situated for this station. This station will be needed as our community grows in its South West Quadrant. We will need to watch annexations and subdivisions within the area and schedule this project accordingly. Alternatives Considered: Many are available: Scale down the project size and/or materials used in construction to accommodate a residential type facility similar to Station #2; require automatic sprinkler systems as built-in protection for all new construction located outside of existing stations' response time service districts; continue operating under current resources; relocated existing stations; accept longer-than-historical response times and high life and fire losses; acquire fire district's fixed facilities as annexation by the City continues. Advantages of Approving this Project: The completion of this project would enhance our ability to respond to growing parts of the community within a time frame that has been historically acceptable to the citizens of Bozeman. Station #1 and #2 are located in areas which ineffectively serve the existing community as well as the portions which are on Rouse street, a heavily traveled way with a stop light, which occasionally limits our drivers to unsafe access to Rouse or Mendenhall. Estimated New Future Recurring Costs: Annual Operating & Maintenance Costs: Impact Fees can not be spent on operations and maintenance costs. The City’s General Fund will bear the annual operating and maintenance expenses associated with this facility, estimated at $1,200,000, including all crew personnel. Funding Sources: 100% Fire Impact Fees City of Bozeman Capital Improvements Plan FY10-14 105 Project Name: Fire Engine for Station #4 Estimated Cost: $598,363 Project Number: Fire Impact Fees – FIF07 Date Scheduled: Unscheduled Purpose: ■ New □ Replacement □ Facility ■ Equipment Project Description: This project is the purchase of an engine and accompanying equipment for use out of new Fire Station 4. It will be necessary to have this engine at the Station when it opens. There is an estimated 12 month lead time in delivery of this type of equipment. This engine will be needed for Station #4, which will be required as our community grows in its South West Quadrant. We will need to watch annexations and subdivisions within the area and schedule this project accordingly. Alternatives Considered: Use of 1989 Pierce Reserve Pumper Darley; buy a used engine; lease/purchase an engine. Advantages of Approving this Project: Purchase of this unit will adequately equip Station #4 for fire and other emergency responses. Estimated New Future Recurring Costs: Annual Operating & Maintenance Costs: Impact Fees can not be used for annual operating and maintenance costs. The City’s General Fund will pay for the increased fuel, maintenance and insurance costs associated with this engine, estimated at less than $30,000 per year. Funding Sources: 100% Fire Impact Fees City of Bozeman Capital Improvements Plan FY10-14 106 Project Name: Construction of Fire Station #3 Debt Service Payment Estimated Cost: $992,302 Principal and Interest Project Number: FIF08 – Fire Impact Fees Date Scheduled: Each Year until Paid – FY10- 15 Purpose: ■ New Replacement ■ Facility □ Equipment Project Description: The construction costs for Fire Station #3 are 100% impact fee eligible. At the time of construction, there was not enough cash in the Fire Impact Fee fund to pay all the eligible costs. As a result, the City’s general borrowing authority will be used to borrow an estimated $890,000 to finish the project. Because current state statutes do not provide specific authority for cities to borrow against streams of impact fee revenues, we will need to borrow the funds under the city’s general borrowing authority (general obligation) MCA 7-7-4104. Under this authority, the City can borrow up to $1,953,341 without a vote of the public. This loan is ultimately secured by the City’s General Fund; we intend to use Fire Impact Fees collected during each year to make the debt service payments, but if those should fall short the General Fund would be required to make the payment. Under current Intercap rates, a loan of $890,000 would require annual debt payments of $81,000 (15 year term, 4.25%). There is no penalty for early payment, and it would be our intention to pay off this loan as quickly as possible, dedicating all annual revenues to debt payments. Alternatives Considered: The City could opt to not pay this loan off early; instead making the annual payments each year. However, because the debt is ultimately backed by the City’s General Fund, borrowing authority under MCA 7-7-4104 is limited to a fixed amount, and interest costs accumulate, it is best to pay this debt as soon as possible. Advantages of Approving this Project: The General Fund will not be required to pay for capacity expanding costs of the Fire Station. Estimated New Future Recurring Costs: Annual Operating and Maintenance Costs: None. Funding Sources: Loan made on borrowing authority of the City’s General Fund (MCA.7-7- 4104) All loan repayments will be made by Fire Impact Fee Fund. City of Bozeman Capital Improvements Plan FY10-14 107 WATER IMPACT FEE FUNDSUMMARY OF CIP BALANCES, REVENUES AND EXPENDITURESCIP FY10-14Current Year---------------------------------------Projected---------------------------------------FY09 FY10 FY11 FY12 FY13 FY14Projected Beginning Restricted Cash Balance 7,100,000$ 7,760,000$ 8,614,000$ 9,433,350$ 6,238,534$ 3,199,681$ Add: Revenues Dedicated to CIP 1,160,000 1,354,000 1,569,350 1,805,184 1,961,147 2,041,139 Less: Total Credits - - - - - - Scheduled CIP Expenditures 500,000 500,000 750,000 5,000,000 5,000,000 - __________ __________ __________ __________ __________ __________Projected Year-End Restricted Cash Balance 7,760,000$ 8,614,000$ 9,433,350$ 6,238,534$ 3,199,681$ 5,240,820$ 108 WATER IMPACT FEE FUNDREVENUE PROJECTIONSCurrent Year ----------------------------------------Projected----------------------------------------FY09 FY10 FY11 FY12 FY13 FY14Projected Impact Fee Revenues 1,160,000$ 1,160,000$ 1,354,000$ 1,569,350$ 1,805,184$ 1,961,147$ Growth Rate2% 2% 2% 2% 2%Interest Income (Charge) 125,000 194,000 215,350 235,834 155,963 79,992 Impact Fees Dedicated to CIP 1,285,000 1,354,000 1,569,350 1,805,184 1,961,147 2,041,139 Add Other Revenue Sources: Total Other Revenue SourcesTotal All Revenue Sources1,160,000$ 1,160,000$ 1,354,000$ 1,569,350$ 1,805,184$ 1,961,147$ Notes:109 CITY OF BOZEMANCAPITAL IMPROVEMENTS PROGRAM WATER IMPACT FEE PROJECTSItem Ref # -----------Projected Costs by Fiscal Year----------- Not # Project Title Department/DivisionCategoryFY10 FY11 FY12 FY13 FY14 Total ScheduledW07 22MG MEMBRANE WATER TREATMENT PLANT Water Impact Fees Project 500,000 500,000 5,000,000 5,000,000 - 11,000,000 WIF01 SOURDOUGH CREEK DAM Water Impact Fees Project 250,000 250,000 19,750,000 WIF03 5.3MG CONCRETE WATER STORAGE RESERVOIR Water Impact Fees Project- 5,300,000 WIF05 REDUNDANT TRANSMISSION MAIN FROM WTP Water Impact Fees Project- - 21,680,000 WIF07 GRAF STREET EXTENSION Water Impact Fees Project- 150,000 ________ ________ ________ ________ ________ ________ ________Total500,000$ 750,000$ 5,000,000$ 5,000,000$ -$ 11,250,000$ 46,880,000$ 110 City of Bozeman Capital Improvements Plan FY10-14 Project Name: 22MG Membrane Water Treatment Plant Estimated Cost: $33.2 Million Total Project Number: Water Plant – W07 Date Scheduled: FY08-FY12 Purpose: □ New ■ Replacement ■ Facility □ Equipment Project Description: This new Membrane Filter Treatment Plant is the preferred water treatment alternative identified in the adopted Water Facility Plan. It is recommended to be built with an initial configuration providing 22MGD of water treatment capacity, with future expansion capability to 36MGD. This addresses both the 10- and 20- year capacity requirement forecast for the City’s water treatment system. The current 15MGD WTP equipment is nearing the end of its useful life; the plant’s direct filtration treatment process, while effective most of the year, becomes only marginally effective during spring runoff or flash thunderstorms in the watershed, dropping plant efficiency as low as 70%; and, rapid population growth and expansion of city water services is increasing demand for water. The current plant capacity may be exceeded in as few as five years. The New Plant will be sited at the existing WTP site in an 18,800 sf building located directly north of the existing plant. It will include gravity thickeners, a drying bed building with dual vacuum-assisted beds, triplex micro strainers and sludge pumps. All these new facilities will easily fit on the approximately 33-acre parcel of City-owned property on the site. A 12-month pilot testing phase will need to be completed prior to design finalization. We are required to have the new plant online by October 2013. Extensions of that deadline are possible, but we are not relying on the assumption that they would be granted. Alternatives Considered: The Water Facility Plan considered numerous alternatives for water treatment. This was identified as the preferred alternative in the adopted plan. Advantages of Approving this Project: Planning for increased water supply to meet growing demands and to replace existing equipment that is at the end of its useful life. Estimated New Recurring Costs: This plant is estimated to require two new operators, in addition to existing plant staff. Annual O&M costs = est. $1,735,901 (including existing staff plus new plant expenses). Funding Sources: FY08 Pilot Testing = $200,000 Total 67% Water Utility Fund = $133,000 33% Water Impact Fees = $67,000 FY09 & FY10 Design = $3,000,000 Total 67% Water Utility Fund = $2,000,000 33% Water Impact Fees = $1,000,000 FY11 & 12 Construction = $30,000,000 Total 67% Water Utility Fund = $20,000,000 33% Water Impact Fees = $10,000,000 111 City of Bozeman Capital Improvements Plan FY10-14 Project Name: Sourdough Creek (Mystic Lake) Dam Estimated Cost: $20 Million Total; $250,000 FY11 Begin Design Project Number: Water Impact Fees – WIF01 Date Scheduled: FY08 – Prelim Design Consult FY11 – Begin Design Unscheduled - Construction Purpose: ■ New □ Replacement ■ Facility □ Equipment Project Description: The City currently has storage rights to approximately 1,955 Million Gallons per Year, with a reservation for an additional 931 MGY, worth of storage rights on Sourdough Creek. These rights were historically allocated based on available storage in Mystic Lake. The Mystic Lake Dam, however, has been breached, rendering these storage rights essentially useless until a new dam is constructed on Sourdough Creek to replace the Mystic Lake Dam. Because this volume of storage right is very significant, the City intends to utilize these rights to meet future water needs. This option is suggested in addition to continued water conservation efforts throughout the City. Alternatives Considered: The Facility Plan explores many options for additional future water in Section 3.C. Advantages of Approving this Project: Additional water is secured to meet future resident needs. Estimated New Recurring Costs: Unknown at this time. Funding Sources: 100% Water Impact Fees 112 City of Bozeman Capital Improvements Plan FY10-14 Project Name: 5.3MG Concrete Water Storage Reservoir Estimated Cost: $5,300,000 Project Number: Water Impact Fees – WIF03 Date Scheduled: Unscheduled (Online by 2017) Purpose: ■ New □ Replacement ■ Facility □ Equipment Project Description: A new 5.3MB partially buried concrete water storage reservoir is to be constructed by 2017. The proposed location of the reservoir is on City property adjacent (to the North) of the proposed new Hyalite/Sourdough water treatment plant. By the year 2017, current available storage will be inadequate to meet the City’s needs according to MDEQ minimum system storage requirements. This reservoir is sized to meet the City’s storage needs up to 2025, assuming a 5% annual growth rate. Locating the storage reservoir at the recommended site will raise the hydraulic grade line in the City’s water system, which will increase pressure for the southern part of the City and will allow future development to occur in the south on a gravity system. Alternatives Considered: The water facility plan reviewed numerous options. This is the preferred alternative of the adopted plan. Advantages of Approving this Project: 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. Estimated New Future Recurring Costs: 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 113 City of Bozeman Capital Improvements Plan FY10-14 Project Name: New Transmission Main from Water Treatment Plant (System Redundancy/Capacity Expansion) Estimated Cost: $21,682,548 Total Project Number: Water Impact Fees– WIF05 Date Scheduled: Unscheduled Purpose: ■ New □ Replacement ■ Facility □ Equipment Project Description: The Water Facility Plan identifies this project as the most critical redundancy issue in the City’s water distribution system. The City receives the majority of its water from the Water Treatment Plant through an existing 30 inch concrete transmission main. If this main is off-line for any reason, the City will need to rely on storage from its three reservoirs. At 2005 water demand levels, storage reserves would be depleted in three days during the average day demand, and in 24 hours during the maximum day demand. Not only will a second transmission main provide the security of redundancy if the existing 30- inch main is removed from service, but the existing 30-inch main is expected to reach capacity by the year 2020. Redundancy Area: Water Treatment Plant New Size Description of Estimated Footage (ft) Old Size Construction Cost 4,525 N/A 12" Install New 12" $ 911,335 2,636 N/A 24" Install New 24" $ 1,101,716 5,154 N/A 36" Install New 36" $ 3,481,785 17,093 N/A 48" Install New 48" $16,187,712 Total Project Cost $21,682,548 The precise location of the required mains is somewhat flexible, but in general will be from Wagonwheel road (extended) in S. 19th to Goldenstein to South 3rd to Nash Road (see exhibit 5.B.3 of the facility plan). Given the priority of the Water Treatment Plant project, the City is not currently planning to complete these projects. Alternatives Considered: Do not build redundant transmission main. Advantages of Approving this Project: The city will be assured that water can be supplied even if one transmission main sustains damage and is offline for a number of days. Estimated New Future Recurring Costs: 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. Current cost estimate of $12,500 per water-main mile maintained annually. Funding Sources: Impact Fee eligible portions are related to improvement costs beyond an 8” line capacity. At this point in time, it is estimated that the 12” and 24” lines are most likely to be built within the next 5 years; the cost of over-sizing those lines would be eligible for impact fees and is estimated to total $1,874,886. Given the priority of the Water Treatment Plant project, it’s relative size and scope, these improvements have been moved to “unscheduled.” 114 City of Bozeman Capital Improvements Plan FY10-14 Exhibit #1 – New Transmission Main Map 115 City of Bozeman Capital Improvements Plan FY10-14 Project Name: Graf Street Extension/Connection Estimated Cost: $150,000 Project Number: Water Impact Fees – WIF 07 Date Scheduled: Unscheduled Purpose: ■ New □ Replacement ■ Facility □ Equipment Project Description: This project is to extend Water Mains below Graf Street approximately ¼ mile in order to connect infrastructure east from 19th Avenue. This is an important connection for public safety purposes – allowing fire service to meet their response time requirements in areas where they currently cannot. The Water infrastructure should be installed at the same time the street connection is made. Alternatives Considered: Do nothing and wait for development to connect the infrastructure. Advantages of Approving this Project: Improved traffic flow and better emergency response to the local area. Estimated New Future Recurring Costs: Annual Operating & Maintenance Costs: Funding Sources: 100% Water Impact Fee – to be recovered by developer payback. 116 WASTEWATER IMPACT FEE FUNDSUMMARY OF CIP BALANCES, REVENUES AND EXPENDITURESCIP Plan FY10-FY14Current Year ----------------------------------------Projected----------------------------------------FY09 FY10 FY11 FY12 FY13 FY14Projected Beginning Restricted Cash Balance 11,022,000$ 8,371,375$ 4,455,659$ 448,051$ 21,372$ 20,269$ Add: Impact Fee Revenue 650,000 509,284 417,391 323,321 318,897 325,236 Other Funding Sources - - - - - - Less: Scheduled CIP Expenditures 3,300,625 4,425,000 4,425,000 750,000 320,000 330,000 __________ __________ __________ __________ __________ __________Projected Year-End Restricted Cash Balance 8,371,375$ 4,455,659$ 448,051$ 21,372$ 20,269$ 15,505$ 1117 WASTEWATER IMPACT FEE FUNDREVENUE PROJECTIONSCurrent Year ----------------------------------------Projected----------------------------------------FY09 FY10 FY11 FY12 FY13 FY14Growth Rate2% 2% 2% 2% 2%Projected Impact Fee Revenues 400,000$ 300,000$ 306,000$ 312,120$ 318,362$ 324,730$ Interest Income (Charge) 250,000 209,284 111,391 11,201 534 507 __________ __________ __________ __________ __________ __________Impact Fees Dedicated to CIP 650,000$ 509,284$ 417,391$ 323,321$ 318,897$ 325,236$ Add Other Revenue Sources:__________ __________ __________ __________ __________ __________Total Other Revenue Sources - - - - - - __________ __________ __________ __________ __________ __________Total All Revenue Sources 650,000$ 509,284$ 417,391$ 323,321$ 318,897$ 325,236$ 2118 CITY OF BOZEMANCAPITAL IMPROVEMENTS PROGRAMWASTEWATER IMPACT FEE PROJECTSRevised 9/3/2008Item -----------Projected Costs by Fiscal Year----------Not # Project TitleDepartmentCategoryFY10 FY11 FY12 FY13 FY14 Total ScheduledWW04 WRF CONSTRUCTION - Phase I WW Impact Fees Project 4,425,000 4,425,000 400,000 - 9,250,000 WWIF05 HOSPITAL TRUNK: HAGGERTY TO KAGY WW Impact Fees Project- 1,062,000 WWIF11 REPLACE FRONT STREET: TAMARACK/ROUSE WW Impact Fees Project - - 1,800,000 WWIF12 GRAF STREET EXTENSION WW Impact Fees Project- 50,000 WWIF13 DESIGN PHASE II - WRF PLANT WW Impact Fees Project - - - 5,228,368 WWIF 14 WRF PHASE I DEBT SERVICE WW Impact Fees Project 350,000 320,000 330,000 1,000,000 - Total4,425,000$ 4,425,000$ 750,000$ 320,000$ 330,000$ 10,250,000$ 8,140,368$ 3119 City of Bozeman Capital Improvements Plan FY10-14 Project Name: Water Reclamation Facility (WRF) Construction – Phase I Estimated Cost: $53.8 Million – Total, Phase I Project Number: Wastewater Plant – WW04 Date Scheduled: FY07 – FY12 Purpose: □ New ■ Replacement ■ Facility □ Equipment Project Description: The existing plant has reached its original design capacity of 5.8 MGD. Current organic loadings (lbs of BOD) now exceed the plant’s original design capacity for BOD by more than 20%. These critical loading parameters clearly point to the need for a major facility expansion. The City’s current MPDES (Montana Pollution Discharge Elimination System) permit includes a compliance schedule that requires us to begin removing total nitrogen and total phosphorous by September 2011 to meet interim Nutrient Standards set by the State Department of Environmental Quality. In order to meet the requirements of this schedule, the city needs to move forward with the construction of a WRF facility, as our existing facility is not designed to remove nitrogen & phosphorous. Bids received for the WRF facility on October 1, 2008 put the total project costs at a low of $65.7 Million (low bid) to a high of over $80.5 Million (high bid.) Because the low bid was so much higher than our estimate, the project has been scaled back but will still meet our permit requirements established for September 2011. Total adjusted project price is now estimated at $53.8 Million. Alternatives Considered: A variety of treatment technologies and alternatives are presented in the January 2006 Wastewater Facilities Plan. Advantages of Approving this Project: Major capital expansion of the Bozeman WRF will enable the City to meet its ever growing demand for wastewater services and still produce a high quality effluent that is in full compliance with the City’s MPDES discharge permit. Expansion of the Bozeman WRF is consistent with the City’s long-term need to accommodate rapid growth and economic development in the Gallatin Valley. Estimated Future Recurring Costs: Annual Operating & Maintenance Costs: Similar to existing plant operations costs. The Facilities Plan estimates a total of $1,439,360 annually including all labor, power, chemicals, equipment maintenance, and equipment replacement. Funding Sources: FY07 Design: Total $3.9 Million 67% Wastewater Utility Cash = $2.33 Million 33% Wastewater Impact Fee Cash = $1.57 Million FY09 & FY10 & FY11 Construction: Total $49.9 Million 67% Wastewater Utility = $33.5 Million 33% Wastewater Impact Fee Eligible = $16.4 Million Eligible* *We anticipate having a minimum of $13.1 Million available from Impact Fees through the end of the construction period. Impact fee collections during the construction period will be dedicated to the project. The remainder of eligible construction costs would be dedicated to debt service on the Utility Revenue Bonds, as it is collected in the Impact Fee Fund. 120 Project Name: Hospital Trunk: Haggerty to Kagy Estimated Cost: Total: $1,062,000; $743,400 Wastewater Impact Fees Project Number: WWater Impact Fees - WWIF05 Date Scheduled: Unscheduled Purpose: □ New ■ Replacement ■ Facility □ Equipment Project Description: Construct ~7,900 LF of 12" and 15" sewer collector from manhole C0507 to 1E22. Existing portions of this collector are not sized for anticipated future development and the new portions of this collector, which will need to be constructed with development, will need to be oversized to meet future needs. It is estimated that 70% of this project costs will be due to capacity expansion and will be eligible for Wastewater Impact Fees. The remaining 30% of the project costs will need to be provided by a developer contribution or other source. At this time, the City’s Wastewater Utility does not have a need to replace the existing facility; as such, no utility dollars are scheduled to be spent. Alternatives Considered: Limit future development in the area. Advantages of Approving this Project: If constructed to the line sizes master planned in the City’s Wastewater Facilities plan, capacity will be provided for anticipating the long-term future growth in this area. Estimated New Future Recurring Costs: Annual Operating and Maintenance Costs: Impact fees can not fund operating and maintenance costs. The city’s wastewater utility will pay for these costs, which are estimated to be a small increment of the city’s system as a whole. Funding Sources: 70% Wastewater Impact Fees = $743,400 30% Developer Contribution = $318,600 City of Bozeman Capital Improvements Plan FY10-14 121 Project Name: Replace Front Street: Tamarack/Rouse Estimated Cost: $1,800,000 Project Number: WWater Impact Fees – WWIF11 Date Scheduled: Unscheduled Purpose: □ New ■ Replacement ■ Facility □ Equipment Project Description: This project consists of construction of ~11,000 LF 18", 21" & 24" sewer pipe from manhole F0330 to C0507. The lower portion of the existing sewer is at capacity. Additional capacity is needed to serve the future Bozeman Deaconess Hospital development and lands to the south. It is estimated that 70% of this project costs will be due to capacity expansion and will be eligible for Wastewater Impact Fees. The remaining 30% of the project costs will need to be provided by a developer contribution or other source. At this time, the City’s Wastewater Utility does not have a need to replace the existing facility; as such, no utility dollars are scheduled to be spent. Alternatives Considered: Limit development to only that capacity of the existing sewer. Advantages of Approving this Project: This project will significantly increase the service area and capacity of the trunk sewer. Estimated New Future Recurring Costs: Annual Operating and Maintenance Costs: Impact fees can not fund operating and maintenance costs. The city’s wastewater utility will pay for these costs, which are estimated to be a small increment of the city’s system as a whole. Funding Sources: 70% Wastewater Impact Fees = $1,260,000 30% Developer Contribution = $540,000 City of Bozeman Capital Improvements Plan FY10-14 122 Project Name: Graf Street Extension/Connection Estimated Cost: $50,000 Project Number: Wastewater Impact Fees – WWIF 12 Date Scheduled: Unscheduled Purpose: ■ New □ Replacement ■ Facility □ Equipment Project Description: This project is to extend Wastewater Mains below Graf Street approximately ¼ mile in order to connect infrastructure east from 19th Avenue. This is an important connection for public safety purposes – allowing fire service to meet their response time requirements in areas where they currently cannot. The Wastewater infrastructure should be installed at the same time the street connection is made. Alternatives Considered: Do nothing and wait for development to connect the infrastructure. Advantages of Approving this Project: Improved traffic flow and better emergency response to the local area. Estimated New Future Recurring Costs: Annual Operating & Maintenance Costs: Funding Sources: 100% Wastewater Impact Fee – to be recovered by developer payback. City of Bozeman Capital Improvements Plan FY10-14 123 City of Bozeman Capital Improvements Plan FY10-14 Project Name: Design Phase II - WRF Plant Improvements Estimated Cost: $5.2 Million Total Project Number: Wastewater Plant – WWIF13 Date Scheduled: Unscheduled Purpose: ■ New □ Replacement ■ Facility □ Equipment Project Description: In January 2006 Morrison & Maierle Consulting Engineers completed a comprehensive Wastewater Facilities Plan. The plan recommends the City proceed with a 3-phased project schedule that includes the construction of a new Water Reclamation Facility (WRF) that is capable of handling our increased flows while also reducing the amount of Total Nitrogen discharged to the East Gallatin River. Phase I of the Plant improvements are scheduled for FY07-FY11. This project is for the Engineering Pre-Design work and the Final Engineering Design work for Phase II of the project. This phase will include one new primary clarifier, more BNR reactor basins & clarifiers, tertiary deep bed filtration, liquid sludge storage tanks, anaerobic digestion, dewatering cake storage building and effluent re-use pumping station. The vast majority of the Phase II improvements are capacity expanding, and the project is estimated to be 100% impact fee eligible. However, once design work begins, we will be continually evaluating the impact fee eligibility of the features of the phase. Alternatives Considered: A variety of treatment technologies and alternatives are presented in the January 2006 Wastewater Facilities Plan. Advantages of Approving this Project: Major capital expansion of the Bozeman WRF will enable the City to meet its estimated demand for wastewater services and still produce a high quality effluent that is in full compliance with the City’s MPDES discharge permit. Expansion of the Bozeman WRF is consistent with the City’s long-term need to accommodate rapid growth and economic development in the Gallatin Valley. Estimated Future Recurring Costs: Annual Operating & Maintenance Costs: no estimates at this time. Funding Sources: 100% Wastewater Impact Fees Pre-Design: $899,891 Final Design: $4,328,477 . 124 City of Bozeman Capital Improvements Plan FY10-14 Project Name: Water Reclamation Facility – Phase I Debt Service Estimated Cost: $4,870,000 Principal, plus accrued interest Project Number: Wastewater Impact Fees – WWIF14 Date Scheduled: FY12- unknown Purpose: □ New ■ Replacement ■ Facility □ Equipment Project Description: Total adjusted project price for the Water Reclamation Facility (WRF) construction of phase one is estimated at $53.8 Million. Of that amount, $17.9 Million is for capacity expanding costs of construction. The impact fee account will not have enough cash on hand to pay the costs of construction when the facility is built. As such, impact fee revenues will be dedicated to pay the outstanding debt in future years, as fee revenues are collected. At this point, approximately $4.87 Million of impact fee eligible costs will be paid with a long-term loan (20 years, 3.75%) through the State’s Revolving Loan Fund. A debt schedule will be updated semi-annually with the amount of impact fee dollars that have been dedicated to debt payments until the full amount owed is paid. Alternatives Considered: Advantages of Approving this Project: Major capital expansion of the Bozeman WRF will enable the City to meet its ever growing demand for wastewater services and still produce a high quality effluent that is in full compliance with the City’s MPDES discharge permit. Expansion of the Bozeman WRF is consistent with the City’s long-term need to accommodate rapid growth and economic development in the Gallatin Valley. Estimated Future Recurring Costs: Annual Operating & Maintenance Costs: Funding Sources: FY07 Design: Total $3.9 Million 67% Wastewater Utility Cash = $2.33 Million 33% Wastewater Impact Fee Cash = $1.57 Million FY09 & FY10 & FY11 Construction: Total $49.9 Million 67% Wastewater Utility = $33.5 Million 33% Wastewater Impact Fee Eligible = $16.4 Million Eligible* *We anticipate having a minimum of $13.1 Million available from Impact Fees through the end of the construction period. Impact fee collections during the construction period will be dedicated to the project. The remainder of eligible construction costs would be dedicated to debt service on the Utility Revenue Bonds, as it is collected in the Impact Fee Fund. 125 Loan Amortization ScheduleLoan amount4,870,000.00$ Scheduled payment174,146.95$ Annual interest rate3.75 %Scheduled number of payments40Loan period in years20Actual number of payments40Number of payments per year2Total early payments-$ Start date of loan7/1/2011Total interest2,095,878.14$ Optional extra payments-$ Lender name:Pmt. No.Payment Date Beginning BalanceScheduled PaymentExtra Payment Total Payment Principal Interest Ending Balance Cumulative Interest1 1/1/2012 4,870,000.00$ 174,146.95$ -$ 174,146.95$ 82,834.45$ 91,312.50$ 4,787,165.55$ 91,312.50$ 2 7/1/2012 4,787,165.55$ 174,146.95$ -$ 174,146.95$ 84,387.60$ 89,759.35$ 4,702,777.95$ 181,071.85$ 3 1/1/2013 4,702,777.95$ 174,146.95$ -$ 174,146.95$ 85,969.87$ 88,177.09$ 4,616,808.08$ 269,248.94$ 4 7/1/2013 4,616,808.08$ 174,146.95$ -$ 174,146.95$ 87,581.80$ 86,565.15$ 4,529,226.28$ 355,814.09$ 5 1/1/2014 4,529,226.28$ 174,146.95$ -$ 174,146.95$ 89,223.96$ 84,922.99$ 4,440,002.32$ 440,737.08$ 6 7/1/2014 4,440,002.32$ 174,146.95$ -$ 174,146.95$ 90,896.91$ 83,250.04$ 4,349,105.41$ 523,987.13$ 7 1/1/2015 4,349,105.41$ 174,146.95$ -$ 174,146.95$ 92,601.23$ 81,545.73$ 4,256,504.18$ 605,532.85$ 8 7/1/2015 4,256,504.18$ 174,146.95$ -$ 174,146.95$ 94,337.50$ 79,809.45$ 4,162,166.68$ 685,342.31$ 9 1/1/2016 4,162,166.68$ 174,146.95$ -$ 174,146.95$ 96,106.33$ 78,040.63$ 4,066,060.35$ 763,382.93$ 10 7/1/2016 4,066,060.35$ 174,146.95$ -$ 174,146.95$ 97,908.32$ 76,238.63$ 3,968,152.03$ 839,621.56$ 11 1/1/2017 3,968,152.03$ 174,146.95$ -$ 174,146.95$ 99,744.10$ 74,402.85$ 3,868,407.93$ 914,024.42$ 12 7/1/2017 3,868,407.93$ 174,146.95$ -$ 174,146.95$ 101,614.30$ 72,532.65$ 3,766,793.62$ 986,557.06$ 13 1/1/2018 3,766,793.62$ 174,146.95$ -$ 174,146.95$ 103,519.57$ 70,627.38$ 3,663,274.05$ 1,057,184.44$ 14 7/1/2018 3,663,274.05$ 174,146.95$ -$ 174,146.95$ 105,460.57$ 68,686.39$ 3,557,813.48$ 1,125,870.83$ 15 1/1/2019 3,557,813.48$ 174,146.95$ -$ 174,146.95$ 107,437.95$ 66,709.00$ 3,450,375.53$ 1,192,579.84$ 16 7/1/2019 3,450,375.53$ 174,146.95$ -$ 174,146.95$ 109,452.41$ 64,694.54$ 3,340,923.12$ 1,257,274.38$ 17 1/1/2020 3,340,923.12$ 174,146.95$ -$ 174,146.95$ 111,504.65$ 62,642.31$ 3,229,418.47$ 1,319,916.69$ 18 7/1/2020 3,229,418.47$ 174,146.95$ -$ 174,146.95$ 113,595.36$ 60,551.60$ 3,115,823.12$ 1,380,468.28$ 19 1/1/2021 3,115,823.12$ 174,146.95$ -$ 174,146.95$ 115,725.27$ 58,421.68$ 3,000,097.85$ 1,438,889.97$ 20 7/1/2021 3,000,097.85$ 174,146.95$ -$ 174,146.95$ 117,895.12$ 56,251.83$ 2,882,202.73$ 1,495,141.80$ 21 1/1/2022 2,882,202.73$ 174,146.95$ -$ 174,146.95$ 120,105.65$ 54,041.30$ 2,762,097.08$ 1,549,183.10$ 22 7/1/2022 2,762,097.08$ 174,146.95$ -$ 174,146.95$ 122,357.63$ 51,789.32$ 2,639,739.44$ 1,600,972.42$ 23 1/1/2023 2,639,739.44$ 174,146.95$ -$ 174,146.95$ 124,651.84$ 49,495.11$ 2,515,087.60$ 1,650,467.54$ 24 7/1/2023 2,515,087.60$ 174,146.95$ -$ 174,146.95$ 126,989.06$ 47,157.89$ 2,388,098.54$ 1,697,625.43$ 25 1/1/2024 2,388,098.54$ 174,146.95$ -$ 174,146.95$ 129,370.11$ 44,776.85$ 2,258,728.44$ 1,742,402.28$ 26 7/1/2024 2,258,728.44$ 174,146.95$ -$ 174,146.95$ 131,795.80$ 42,351.16$ 2,126,932.64$ 1,784,753.43$ 27 1/1/2025 2,126,932.64$ 174,146.95$ -$ 174,146.95$ 134,266.97$ 39,879.99$ 1,992,665.68$ 1,824,633.42$ 28 7/1/2025 1,992,665.68$ 174,146.95$ -$ 174,146.95$ 136,784.47$ 37,362.48$ 1,855,881.20$ 1,861,995.90$ 29 1/1/2026 1,855,881.20$ 174,146.95$ -$ 174,146.95$ 139,349.18$ 34,797.77$ 1,716,532.02$ 1,896,793.68$ 30 7/1/2026 1,716,532.02$ 174,146.95$ -$ 174,146.95$ 141,961.98$ 32,184.98$ 1,574,570.04$ 1,928,978.65$ 31 1/1/2027 1,574,570.04$ 174,146.95$ -$ 174,146.95$ 144,623.77$ 29,523.19$ 1,429,946.28$ 1,958,501.84$ 32 7/1/2027 1,429,946.28$ 174,146.95$ -$ 174,146.95$ 147,335.46$ 26,811.49$ 1,282,610.82$ 1,985,313.33$ 33 1/1/2028 1,282,610.82$ 174,146.95$ -$ 174,146.95$ 150,098.00$ 24,048.95$ 1,132,512.82$ 2,009,362.28$ 34 7/1/2028 1,132,512.82$ 174,146.95$ -$ 174,146.95$ 152,912.34$ 21,234.62$ 979,600.48$ 2,030,596.90$ WRF PHASE IEnter valuesLoan summary126 Pmt. No.Payment Date Beginning BalanceScheduled PaymentExtra Payment Total Payment Principal Interest Ending Balance Cumulative Interest35 1/1/2029 979,600.48$ 174,146.95$ -$ 174,146.95$ 155,779.44$ 18,367.51$ 823,821.03$ 2,048,964.41$ 36 7/1/2029 823,821.03$ 174,146.95$ -$ 174,146.95$ 158,700.31$ 15,446.64$ 665,120.73$ 2,064,411.05$ 37 1/1/2030 665,120.73$ 174,146.95$ -$ 174,146.95$ 161,675.94$ 12,471.01$ 503,444.79$ 2,076,882.07$ 38 7/1/2030 503,444.79$ 174,146.95$ -$ 174,146.95$ 164,707.36$ 9,439.59$ 338,737.42$ 2,086,321.66$ 39 1/1/2031 338,737.42$ 174,146.95$ -$ 174,146.95$ 167,795.63$ 6,351.33$ 170,941.79$ 2,092,672.98$ 40 7/1/2031 170,941.79$ 174,146.95$ -$ 170,941.79$ 167,736.64$ 3,205.16$ -$ 2,095,878.14$ 127 BUILDING INSPECTIONSUMMARY OF CIP BALANCES, REVENUES AND EXPENDITURESCIP FY10-14Current Year ----------------------------------------Projected----------------------------------------FY09 FY10 FY11 FY12 FY13 FY14Projected Beginning Restricted Cash Balance 74,450$ 74,450$ 69,960$ 63,140$ 53,898$ 42,136$ Add: Revenues Dedicated to CIP - 53,750 53,750 53,750 53,750 53,750 Less: Scheduled CIP Expenditures - 58,240 60,570 62,992 65,512 68,133 __________ __________ __________ __________ __________ __________Projected Year-End Restricted Cash Balance 74,450$ 69,960$ 63,140$ 53,898$ 42,136$ 27,753$ Page 1128 BUILDING INSPECTIONRATE CHANGES & PROJECTION OF CUSTOMER GROWTHCurrent Year ----------------------------------------Projected----------------------------------------FY09 FY10 FY11 FY12 FY13 FY14Rate Changes/Customer GrowthInflationary AdjustmentRate AdjustmemtIncrease in Rates Dedicated to CIP - _____ _____ _____ _____ _____ _____Total Current Year Rate Changes - - - - - - Customer Growth Rate - _____ _____ _____ _____ _____ _____Total Percentage Increase in Base Year Revenues - - - - - - Percentage of Rates Dedicated to CIP:From Previous Year(s) 5.00 5.00 5.00 5.00 5.00 5.00 Current Year - - - - - - _____ _____ _____ _____ _____ _____Total Percentage of Rates Dedicated to CIP 5.00 5.00 5.00 5.00 5.00 5.00 Page 2129 BUILDING INSPECTIONREVENUE PROJECTIONSCurrent Year ----------------------------------------Projected----------------------------------------FY09 FY10 FY11 FY12 FY13 FY14Base Revenues for Projections 1,075,000$ 1,075,000$ 1,075,000$ 1,075,000$ 1,075,000$ 1,075,000$ Total Projected Current Year Revenues 1,075,000$ 1,075,000$ 1,075,000$ 1,075,000$ 1,075,000$ 1,075,000$ Current Year Revenues Dedicated to CIP -$ 53,750$ 53,750$ 53,750$ 53,750$ 53,750$ Add: Grants Bond Issues INTERCAP Other__________ __________ __________ __________ __________ __________Total Revenues Dedicated to CIP -$ 53,750$ 53,750$ 53,750$ 53,750$ 53,750$ Page 3130 CITY OF BOZEMANCAPITAL IMPROVEMENTS PROGRAM BUILDING INSPECTIONItem -----------Projected Costs by Fiscal Year----------- Not # Project Title Department/Division Category FY10 FY11 FY12 FY13 FY14 TotalScheduledBI01 STAFF VEHICLE REPLACEMENT PROGRAMBUILDING INSPECTIONEquipment 58,240 60,570 62,992 65,512 68,133 315,447 - ________________________ ________ ________ ________ ________Total58,240$ 60,570$ 62,992$ 65,512$ 68,133$ 315,447$ -$ Page 4131 Project Name: Staff Vehicle Replacement Program Estimated Cost: $58,240 plus 4% inflation each year Project Number: Building Inspection - BI01 Date Scheduled: FY10-FY14 Purpose: □ New ■ Replacement □ Facility ■ Equipment Project Description: This project consists of purchasing two new vehicles each year for the next five (5) years, with the fully depreciated vehicles handed down to other City Department staffs. This program will address the long term vehicle needs of the Building Division, and some related Fire Division positions which share Building Code Enforcement responsibilities, through the regular rotation of new vehicles into and out of the Division. **** 2 replacement vehicles per year requested for FY10-14 Alternatives Considered: Continue to utilize vehicles beyond their depreciated life. Advantages of Approving this Project: As vehicles reach their five (5) year service with the Division, a new vehicle is purchased as replacement and the used vehicle is handed off to an appropriate City employee for his or her use. Estimated New Future Recurring Costs: Annual Operating & Maintenance Costs: minimal. Funding Sources: 100% Building Inspection Fund Revenue City of Bozeman Capital Improvements Plan FY10-14 132 FIRE EQUIPMENT & CAPITAL REPLACEMENTSUMMARY OF CIP BALANCES, REVENUES AND EXPENDITURESCIP FY10-14Current Year ----------------------------------------Projected----------------------------------------FY09 FY10 FY11 FY12 FY13 FY14Projected Beginning Restricted Cash Balance 300,000$ 596,618$ 914,068$ 753,961$ 1,099,488$ 1,465,142$ Add: Revenues Dedicated to CIP 296,618 317,449 336,019 345,526 365,655 386,714 Less: Scheduled CIP Expenditures - - 496,125 - - 1,276,282 __________ __________ __________ __________ __________ __________Projected Year-End Restricted Cash Balance 596,618$ 914,068$ 753,961$ 1,099,488$ 1,465,142$ 575,575$ Page 1133 FIRE EQUIPMENT & CAPITAL REPLACEMENTREVENUE PROJECTIONSCurrent Year ----------------------------------------Projected----------------------------------------FY09 FY10 FY11 FY12 FY13 FY14Prior Year Mill Value 68,981$ 74,155$ 76,379$ 79,434$ 82,612$ 85,916$ Estimated Growth Rate 7.5% 3% 4% 4% 4% 4% Estimated Current Year Mill Value 74,155$ 76,379$ 79,434$ 82,612$ 85,916$ 89,353$ Multiply by 4 Mills - Authorized Levy 4 Mills 4 Mills 4 Mills 4 Mills 4 Mills 4 MillsLevy Revenues Available for CIP 296,618$ 305,517$ 317,738$ 330,447$ 343,665$ 357,412$ Other Revenues Interest Earnings 5,932 11,932 18,281 15,079 21,990 29,303 Total Revenues Dedicated to CIP 302,551$ 317,449$ 336,019$ 345,526$ 365,655$ 386,714$ Page 3134 CITY OF BOZEMANCAPITAL IMPROVEMENTS PROGRAM FIRE EQUIPMENT & CAPITAL REPLACEMENTItem -----------Projected Costs by Fiscal Year----------- Not # Project Title Department/Division Category FY10 FY11 FY12 FY13 FY14 TotalScheduledFE - 01 REPLACEMENT OF FIRE ENGINE 1 FIRE DEPARTMENT Equipment - 496,125 - - - 496,125 FE - 02 REPLACEMENT OF LADDER TRUCK FIRE DEPARTMENT Equipment 1,276,282 1,276,282 ________ ________ ________________________ ________ ________Total-$ 496,125$ -$ -$ 1,276,282$ 1,772,407$ -$ Page 4135 City of Bozeman Capital Improvements Plan FY10-14 Project Name: Fire Engine #1 – Replacement Estimated Cost: $496,125 Total Project Number: Fire Equipment & Capital Fund – FE01 Date Scheduled: FY11 Purpose: □ New ■ Replacement □ Facility ■ Equipment Project Description: This project will replace the front line fire engine at Station 1 which is nearing the end of its safe and useful service life. This apparatus has recently required significant structural remanufacture and requires extensive electrical system rebuild. The compressed air foam system (CAFS) works intermittently and the costs to rebuild the system to bring it up to a minimum level of reliability are prohibitive when compared to the value of the truck at this point in its service life cycle. Alternatives Considered: Continued use of current fire apparatus with significant increases to our annual maintenance budget; buy a used engine; lease/purchase an engine. Advantages of Approving this Project: Reduced maintenance costs and increased reliability for a significant piece of the City’s structural firefighting resources. Estimated New Future Recurring Costs: Annual Operating and Maintenance Costs: Maintenance costs for the current engine will cease. Other costs will increase based upon insurance, maintenance and repair, lubricants, fuel and oil expenses. Further increases will occur based also upon the actual number of responses and hours used. Funding Sources: 100% Fire Equipment & Capital Replacement Fund 136 City of Bozeman Capital Improvements Plan FY10-14 Project Name: Ladder Truck Replacement Estimated Cost: $1,276,282 Project Number: Fire Equipment & Capital Fund – FE02 Date Scheduled: FY14 Purpose: □ New ■ Replacement □ Facility ■ Equipment Project Description: This project will fund the purchase and equipment of a new aerial platform truck for the fire department in FY13. An aerial platform truck is different from a ladder truck in that it has a platform at the tip of the ladder that allows firefighters to operate water streams and perform rescue and other operations from the tip of the ladder device while it is in operation, a capability we do not currently have. The City’s ladder truck was purchased in 1986 and has served the community well for over 20 years. Recent required annual UL ladder tests have revealed that the ladder beds are beginning to twist and warp from use and age. Additionally, the open air rear cab violates firefighter safety requirements of NFPA as firefighters are exposed to traffic during responses and are not protected in the event of a crash. Alternatives Considered: Continue to use current ladder truck until it must be taken out of service, have present ladder and cab refurbished at manufacturing facility, purchase used aerial platform truck, lease/purchase new aerial platform truck. Advantages of Approving this Project: Provide a critical life-safety resource that will enhance the fire department’s ability to protect the city and its residents. This aerial device is particularly important to provide fire and rescue services to the downtown area, large commercial structures and multi-family residential structures. It will also gain us important points in ISO’s scoring matrix. Estimated New Future Recurring Costs: Annual Operating and Maintenance Costs: The costs we pay to maintain our current ladder truck will be reduced if it is placed in a reserve role. Our costs will increase based upon insurance, maintenance and repair, lubricants, fuel and oil expenses. Further increases will occur based also upon the actual number of responses and hours used. Funding Sources: 100% Fire Equipment & Capital Replacement Fund 137 1 Impact Fee Advisory Committee Meeting– December 4, 2008 ** MINUTES ** THE CITY OF BOZEMAN IMPACT FEE ADVISORY COMMITTEE THURSDAY, DECEMBER 4, 2008 ITEM 1. CALL TO ORDER AND ATTENDANCE Chair Ron Kaiser called the meeting to order at 6:01 p.m., in the Upstairs Conference Room, Alfred Stiff Professional Building, 20 East Olive Street, Bozeman, Montana. Members Present Staff Present Debra Becker Chris Saunders, Assistant Planning Director James Nickelson, Vice Chair Tara Hastie, Recording Secretary Anna Rosenberry Ron Kaiser, Chair Members Absent Rick Hixson Eric Bryson Tim Dean Assistant Planning Director Chris Saunders noted the IFAC reviewed the CIP once per year and the time had come for that review. Ms. Rosenberry stated the City Commission would review the proposal and decide whether or not to adopt the proposed schedules at their January 17, 2008 Visitors Present ITEM 2. MINUTES OF SEPTEMBER 11, 2008. MOTION: Chair Kaiser moved, Ms. Becker seconded, to approve the minutes of September 11, 2008 as presented. The motion carried 6-0, with Mr. Hixson and Mr. Dean voting via proxy. ITEM 3. PUBLIC COMMENT {Limited to any public matter within the jurisdiction of the Impact Fee Advisory Committee and not scheduled on this agenda. (Three-minute time limit per speaker.} There was no public comment forthcoming. ITEM 4. CITY COMMISSION LIAISON {A standing item to be used as needed} No item at this time. ITEM 5. REVIEW AND DISCUSSION A. CIP Process. (Saunders/Rosenberry) 138 2 Impact Fee Advisory Committee Meeting– December 4, 2008 meeting. She stated she had intended to have other individuals here to present information from each of their department, but the edits involved reductions in amounts due to the current economy and projects that had to be rescheduled so there was no need for other department’s involvement. She stated the construction costs of Fire Station #3 were over the amount available in the fund and the items that remained (Fire Station #4 and Engine #4) had been pushed back. She stated once the debt for Fire Station #3 had been paid off, the City Commission would be willing to review other projects. Chair Kaiser asked the borrowing mechanism for the loan for Station #3. Ms. Rosenberry responded it was a loan through a State program that allowed the City to borrow up to a certain amount without a public election as long as they could prove the loan could be repaid. She added it was a fifteen year note with a variable rate and the rate had not gone above 5% interest to date. Ms. Becker asked if the loan amortization schedule on the back of the document was the most up to date information. Ms. Rosenberry responded it was an estimate based on the current rate and the City Commission had directed it be paid off as soon as possible. Ms. Rosenberry noted the estimate for FY09 was an annualized estimate of what had been collected over a three month period and noted those marks had been met though the month of November had been very slow for Building Permit activity. Ms. Becker asked if anyone recalled whether or not the traffic preemption was needed to meet the response time requirements of the Fire Department. Assistant Director Saunders responded it would not be needed immediately. Ms. Rosenberry added that south of town was the area that was not well covered by the Fire Department and was the issue at the time of the previous CIP. Chair Kaiser asked if the Fire Department needed the preemption adjusted would the City Commission review the request. Ms. Rosenberry responded that if there were no questions about the level of impact fees that would be received and the loan was repaid at a rate ahead of schedule the City Commission might consider the request, but they had indicated they would first like to see the loan paid off. Vice Chair Nickelson asked what would happen if the impact fee amounts were not collected. Ms. Rosenberry responded the general fund would pay for the improvements, but it would not be easy. Ms. Rosenberry stated there had been a significant decrease in Wastewater Impact Fees and there would not be enough revenue to pay all of the impact fee costs from the WRF expansion. Chair Kaiser asked if the project had been re-bid as the cost seemed high. Ms. Rosenberry responded re-bidding had been considered and HDR had admitted miscalculation due to increases in commodity prices such as steel and concrete. She noted which items would be re-bid to ensure that the best deal was acquired. Assistant Director Saunders added that these types of projects required more specialized professions and increased the cost. Ms. Becker asked for clarification on whether there was a sufficient balance to pay costs for the next two years. Ms. Rosenberry responded the amount of money available had driven the proposed estimates and noted that worst case scenarios had been explored prior to discussing the issue with the Commission. Ms. Becker stated it looked like a certain amount would be spent in FY10 & FY11 with FY12 being an estimate based on the worst case scenario and the only issue would arise if the impact fee revenue was below expectations for three years in a row. Ms. Rosenberry responded the estimate had been an attempt to accurately depict the impact fee monies at a conservative level. Assistant Director Saunders noted the estimate for one year was the equivalent of roughly ninety ¾ inch meters and though building had slowed it had not come to an absolute standstill. Ms. Rosenberry noted the $300,000 - $400,000 estimates were 139 3 Impact Fee Advisory Committee Meeting– December 4, 2008 substantially lower than previous years. Ms. Becker asked for clarification regarding the timeline of the schedule and how it would affect the full cost of the fund. Ms. Rosenberry responded the payments would be made toward the $4,000,000 debt and the City Commission might decide the impact fees were not enough to pay the project costs. Ms. Rosenberry stated that Engineer Bob Murray had discussed the relocation of the hospital project from the current schedule and had moved out the date for that proposal. Chair Kaiser asked Ms. Rosenberry to explain the debt component of the Water Reclamation Facility specifically if it was a scheduled principal loan. Ms. Rosenberry responded it was a scheduled principal loan that would only be affected by payments of impact fees made in prior years. Chair Kaiser asked if development did not occur; could the principal be deferred. Ms. Rosenberry responded it would be deferred and it was a wonderful loan with a very low interest rate as long as payments were made on time. Ms. Becker asked if the loan could be refinanced. Ms. Rosenberry responded it could be refinanced. Ms. Rosenberry stated the revenue estimate for water impact fees had come down from the last few years. She stated the design and regulatory work for the Water Plant would not occur until FY11. Ms. Becker presented Mr. Dean’s concerns that proceeding with the dam was not sound and design work with no anticipated construction date would be illogical. Chair Kaiser clarified that Mr. Dean was concerned that too much time would have lapsed between the time the design was completed and the construction was commenced to make the design a reasonable expenditure. Ms. Rosenberry noted there would be a huge amount of environmental issues that would need to be investigated prior to construction. Assistant Director Saunders noted that a site for the dam had not been chosen and there would be real site constraints that would need to be identified in the data collection process. Chair Kaiser stated the argument could be made that the expenditure should be made so that the project stayed on track and the argument could be made that the expenditure should be made closer to the actual construction. Assistant Director Saunders cited that the City was in the process of renewing the permit for the Water Reclamation Facility but the DEQ had not yet completed that approval over a five year period. Chair Kaiser asked if, in Assistant Director Saunder’s opinion, the expenditure would be important in FY11 to stay on track with the project. Vice Chair Nickelson noted the $250,000 was not the whole picture and in fiscal years after 2011 the amounts would need to be increased and likely paid over a several year period. Assistant Director Saunders noted part of the process was the recognition was that the dam might not be feasible at all and if that is gleaned too close to the time the City would actually need a dam, there would be difficulties in the transition. Ms. Rosenberry stated she had attempted to show that progress was being made on the projects. Ms. Becker stated she had not gotten the impression from Mr. Hixson at the last meeting that there were many obstacles in the construction of a dam other than site constraints and suggested money should not be spent clearing the site if it would not be feasible; she suggested not spending money on those things that the City would not need a consultant to complete. Chair Kaiser stated his understanding was that the site was the number one water storage site to provide for future growth of the City of Bozeman and if it were deemed unsuitable, the other options would be more expensive and more remote. Assistant Director Saunders added that it would take between 1,000 and 1,500 of the existing water tanks to store the amount of water that the proposed dam would store; he added the City had identified a policy for obtaining water 140 4 Impact Fee Advisory Committee Meeting– December 4, 2008 rights at a cost of $6,000 - $7,000 per acre foot to replace the volume lost. Ms. Rosenberry stated the concrete storage reservoir would need to be online by FY17 and she had consulted Staff regarding whether the functionality could be part of the Treatment Plant itself instead of being done separately. Assistant Director Saunders added the tank could be constructed underneath the Plant for both the clear water well and the storage reservoir. Ms. Rosenberry stated street projects had been moved back based on the way people had developed in the City as some of those were never constructed and would not need completed as quickly; she noted the Baxter Lane project had been moved up due to the development in that location. She stated a light signal and roundabout at College Street and 8th Avenue had been added to the schedule. Assistant Director Saunders responded there was an ongoing University maintenance project in that location as well. Ms. Rosenberry noted an SID for that maintenance would not be pursued at this time. Chair Kaiser asked why the intersection control had been added. Ms. Rosenberry responded it had been added due to the university making improvements on 8th Avenue south of Harrison Street which would affect the roundabout at 11th Avenue and College Street. Assistant Director Saunders responded the bids for three traffic lights had come in and listed those bid amounts; he noted MDOT mandated that roundabouts must be investigated when working on a State road and they were sometimes more expensive due to the necessary area for constructing one. Chair Kaiser asked if the roundabout had been precipitated by the College or was it more precipitated by Engineering. Assistant Director Saunders responded the intersection of College Street and 8th Avenue had been under scrutiny and would be impacted by the change at College Street and 11th Avenue. Vice Chair Nickelson noted the difficulties with each of the intersections and that they were two distinctly different cases. Ms. Rosenberry noted which items remained unscheduled and which had been pushed back on the schedule or moved to unscheduled. Ms. Becker asked if the intersection control at Kagy Boulevard & 7th Ms. Becker read Mr. Dean’s comment which stated the interest income collected by the impact fee funds was accruing and he thought there should be some disclosure to the community that those funds were available as an indication that so many funds available meant impact fees were too high in past years. Chair Kaiser stated he saw Mr. Dean’s point as there were significant cash balances built up in the funds, but those funds would be gone in three years and would be used for projects like the Fire Station and Water Reclamation Facility. Ms. Rosenberry responded the impact fee fund had to be built up to afford the types of improvements necessary. Avenue had been charged to the Town & Country site. Assistant Director Saunders responded that Town & Country could not have legitimately been held responsible for improvements to that intersection and added that MDOT had not been willing to allow those improvements until warrants are met. Chair Kaiser asked the mechanism, if any, for providing funding for intersection controls for the University. Assistant Director Saunders responded the University was required to pay impact fees just as everyone else. Ms. Becker asked if the projected impact fee numbers for Streets were as conservative as the last estimates. Ms. Rosenberry responded they were not as conservative, but she did not know of a better projection at this time. 141 5 Impact Fee Advisory Committee Meeting– December 4, 2008 Chair Kaiser responded growth and revenue would occur in fits and starts and would always be a reality in the cyclical nature of development. Ms. Becker stated the discrepancy between amounts necessary and amounts achieved were due to inaccurate estimates. She stated Mr. Dean might argue that good balance between spending and receiving money should be a goal. Chair Kaiser responded he did not think it was uncommon to build up fund balances and he would only begin to wonder if the balance only increased. He added it seemed to him that the fund balances were there to tap for completion of projects. Mr. Rosenberry noted that if the fee schedules were updated, the costs for construction would be the actual bids. Assistant Director Saunders added that another 50 -60% on the total project cost would cost interest instead of accrue interest if the projects were bonded. Ms. Rosenberry stated the City would need to secure some other source of revenue if the required amount of impact fees were not collected. MOTION: Ms. Becker moved, Vice Chair Nickelson seconded, to exclude WIF01 - $250,000 for Sourdough Creek Dam project from approval of the Water CIP for discussion. The motion carried 6-0 with Mr. Hixson and Mr. Dean voting via proxy. MOTION: Ms. Becker moved, Vice Chair Nickelson seconded, to forward a recommendation of approval to the City Commission for all remaining proposed changes (less the Sourdough Creek Dam project) to the Water Impact Fee CIP. The motion carried 6-0 with Mr. Hixson and Mr. Dean voting via proxy. MOTION: Vice Chair Nickelson moved, Ms. Becker seconded, to forward a recommendation to the City Commission to request information from City Staff regarding the $250,000 Sourdough Creek Dam expenditure, its timeline and related details for the project. The motion carried 5-0 with Mr. Hixson’s proxy abstaining on his behalf. MOTION: Vice Chair Nickelson moved, Ms. Becker seconded, to forward a recommendation of approval to the City Commission for the proposed changes to the Fire Impact Fee CIP. The motion carried 6-0 with Mr. Hixson and Mr. Dean voting via proxy. MOTION: Ms. Rosenberry moved, Ms. Becker seconded, to forward a recommendation of approval to the City Commission for the proposed changes to the Wastewater Impact Fee CIP. The motion carried 6-0 with Mr. Hixson and Mr. Dean voting via proxy. MOTION: Vice Chair Nickelson moved, Ms. Rosenberry seconded, to forward a recommendation of approval to the City Commission for the proposed changes to the Street Impact Fee CIP with the exception of SIF22 8th & College Street and the recommendation that Staff provide additional information to the City Commission regarding the need for improvements at the proposed time. The motion carried 6-0 with Mr. Hixson and Mr. Dean voting via proxy. ITEM 6. OLD BUSINESS Assistant Director Saunders responded he had received an update of expenditures from Impact Fee Credit projects and would forward the update to the Committee via e-mail. ITEM 7. COMMITTEE COMMENTS No comments were forthcoming at this time. 142 6 Impact Fee Advisory Committee Meeting– December 4, 2008 ITEM 8. ADJOURNMENT There being no further business to come before the Committee at this time, Chair Ron Kaiser adjourned the meeting at 7:42 p.m. _____________________________________ _____________________________________ Ron Kaiser, Chairperson Chris Saunders, Assistant Planning Director Impact Fee Advisory Committee Dept of Planning & Community Development City of Bozeman City of Bozeman 143