HomeMy WebLinkAbout01-25-07 Impact Fee Advisory Committee Minutes.doc** MINUTES **
CITY OF BOZEMAN
IMPACT FEE ADVISORY COMMITTEE
THURSDAY, JANUARY 25, 2007
6:00 P.M.
ITEM 1. CALL TO ORDER AND ATTENDANCE
Vice Chair Ron Kaiser called the meeting to order at 6:03 p.m., in the Upstairs Conference Room at the Alfred M. Stiff Professional Building, 20 East Olive Street, Bozeman, Montana.
Members Present:
Ron Kaiser, Vice Chair
Debra Becker
Randy Carpenter (arrived at 6:48 p.m.)
Rick Hixson
Anna Rosenberry
Bill Simkins
Members Absent:
Tim Dean
Ken Eiden
Nicholas Lieb
Staff Present:
Sean Becker, Commissioner Liaison
Chris Saunders, Assistant Planning Director
Chuck Winn, Director of Public Safety—Fire
City Manager Chris Kukulski (6:30 to 8:00 p.m.)
Mayor Jeff Krauss (arrived at 6:55 p.m.)
Robin Sullivan, Recording Secretary
Guests Present:
None
ITEM 2. MINUTES FROM JANUARY 11, 2007
Since there were no changes made to the minutes, Vice Chair Ron Kaiser announced the minutes are approved as read.
ITEM 3. PUBLIC COMMENT
No comment was submitted under this agenda item.
ITEM 4. CITY COMMISSION LIAISON
Commissioner Liaison Sean Becker stated he has no report at this time.
ITEM 5. OLD BUSINESS
A. DECISION ON STREET CAPITAL IMPROVEMENTS PROGRAM SCHEDULE FOR FISCAL YEARS 2008-2012
(Decision on the draft financial summaries and project descriptions for the Street Impact Fee Fund.)
Vice Chair Ron Kaiser noted that Chair Tim Dean e-mailed his comments on the specific capital items to the Committee members, and suggested that that list be used as the basis for discussion.
Assistant Planning Director Chris Saunders stated a discussion with legal counsel reminded him that only those present at the meeting may vote; however, Tim Dean’s comments can be considered
as the Committee deliberates on these projects.
Debra Becker noted that the January 17 memo indicates impact fees can be used for growth related and capacity expanding improvements and suggested that determining if something is growth
related is easier to answer than if it is capacity expanding. She cited traffic signals as an example.
Assistant Planning Director Saunders responded that staff has come to the conclusion that a traffic signal is designed to provide a service that cannot be provided by a lesser facility,
such as a stop sign. As a result, staff has concluded that traffic signals are 100 percent growth related and capacity expanding. He stated that previous staff efforts to determine
how much impact a specific development might have on the need for a traffic signal at a specific intersection have revealed that it might create 1 percent of the total demand on the
system and, as a result, staff supports the use of impact fees for the total amount of a signal project.
Bill Simkins expressed concern that taking votes on these projects without the consultant reports is “putting the cart before the horse.”
Assistant Planning Director Saunders responded that the monies for those projects in this fiscal year and next fiscal year are in the bank, and those listed in future years are simply
placeholders at this time. He noted that those projects will be further reviewed as they get closer to being funded, and stated he does not believe that acting on these capital projects
will bias the consultant’s report.
Bill Simkins stated he remains concerned about voting on whether a project is impact fee eligible, noting that it comes down to what is defensible, as defined by the consultants.
Vice Chair Kaiser indicated it is easier to identify the nexus, although identifying the percentages is outside the Committee’s set of knowledge. He suggested that the Committee can
provide advice on the nexus now and wait for the consultant’s report to determine the percentages.
Assistant Planning Director Saunders suggested that, if the Committee believes an issue is important and wants to make sure it moves forward, it can do so on a general basis with a collective
statement that due care be used in determining the percentage of impact fees to be used, and that the percentage be consistent with the principles of proportionality and nexus.
Debra Becker asked questions about the improvements to Baxter Lane from North 7th Avenue to North 19th Avenue, South Church Avenue, and West College Street from South 8th Avenue to South
19th Avenue.
Rick Hixson responded to those questions, identifying the improvements to be made to each of those roadways, which is expansion from two to three lanes in each instance, and conforming
that those improvements are capacity expanding in nature.
Debra Becker then raised questions about the Oak Street improvements from Cedar Street to Main Street, noting that the road would go through a wetlands area and questioning its feasibility.
She also voiced concern that there are no cost estimates for this unscheduled improvement.
Rick Hixson responded that this is simply a placeholder to have the project on the list of capital improvements. He noted that, if the project is on the list and the City is successful
in its efforts to obtain federal monies, then it can be moved up the list and supplemented, at least in part, with impact fees.
Assistant Planning Director Chris Saunders stated that Oak Street will be carefully looked at in the transportation plan update, noting this type of connection for the northeast sector
is important. He then noted that approximately 1100 homes are being proposed near the old Story Mill, and redevelopment of the old Idaho Pole site is anticipated, thus increasing the
need for this type of road alignment.
Bill Simkins noted that the improvements to West College Street between South 8th Avenue and South 19th Avenue have been needed for a long time because of past growth, and suggested
that they are more related to delayed improvements than to future growth.
Vice Chair Kaiser voiced concerns about the South Church Avenue project, questioning the reason for it being on the list.
Assistant Planner Chris Saunders noted there is a fair amount of developable property along Sourdough Road if the property is annexed and the City’s sewer line extended. He indicated
that, at the present time, this is simply a placeholder on the list of projects.
Commissioner Sean Becker noted that, as development continues along South 11th Avenue and South 19th Avenue, the South Church Avenue corridor will become more important.
Following discussion, the Committee chose to act on the projects as a block, less exclusions by any Committee member.
Debra Becker removed the West College Street, South 8th Avenue to South 19th Avenue, and Oak Street, Cedar Street to Main Street, from the list of projects.
It was moved by Debra Becker, seconded by Bill Simkins, that all of the projects in the Street Impact Fee capital improvement program, with the exception of West College Street, South
8th Avenue to South 19th Avenue; and Oak Street, Cedar Street to Main Street, be approved. The motion carried.
Rick Hixson noted that the capital improvement program provides a prioritization of projects and helps the City budget where monies will go in the foreseeable future. He stressed that
every project is important, and it is essential that they be scheduled so that they can be eligible for funding from a variety of sources.
City Manager Kukulski noted that the Oak Street connector was in the transportation plan prior to the 2001 update, when it was removed as a result of political pressure. He stated that
this road extension could relieve pressure on other streets, and he anticipates it would be heavily used.
Debra Becker suggested the reason it is not scheduled at this time has nothing to do with politics, but is due to the fact that there is no right-of-way for the street at this time,
wetlands will impact the road alignment, and the costs of an elevated road are high.
Assistant Planning Director Saunders noted that the Oak Street project is divided into two segments, and the northwest portion of it is the most immediately needed. That portion has
been scheduled and monies have been allocated for it.
Ron Kaiser stated his biggest concerns revolved around the South Church Avenue project, and that has been approved by the previous motion and vote. He believes that the other two projects
can also be listed in the capital improvement program, particularly since any issues with the Oak Street project will be addressed prior to its becoming a reality.
It was moved by Rick Hixson, seconded by Anna Rosenberry, that the West College Street, South 8th Avenue to South 19th Avenue, and Oak Street, Cedar Street to Main Street, projects be
approved. The motion carried with Bill Simkins and Debra Becker voting No.
Vice Chair Ron Kaiser asked that this list of projects be forwarded to the Commission with the caveat that further information is needed before the Committee can make any type of recommendation
on the percentages of impact fees to be used.
Assistant Planning Director Saunders stated the consultants won’t go through the individual projects in the capital improvement program list but will review the system as a whole. He
reminded the Committee that the capital improvement program must be reviewed every year. He indicated that the percentage of impact fees to be used for a project can be established
in the design phase. He encouraged the Committee to go on record as believing that the percentages are very important and recognize that establishing placeholders and proceeding with
design work is essential, and then maintain the ability to look at the project further when the design is done and the proper nexus and proportionality issues can be addressed. He then
noted that the Committee will be reviewing the list of projects every year as the capital improvement program is updated; and that means the Committee will see the large projects more
than once, with greater detail being available as the project rises to the surface.
City Manager Chris Kukulski noted that when projects come to the Commission for approval, staff knows the exact amount of the project that is impact fee eligible. The Commission may
authorize the expenditure of impact fees up to that amount or may choose to use a lesser amount.
Debra Becker stated the Committee is not doing its job if it doesn’t identify the percentage of impact fees to be used. She has no problem with delaying that action, particularly since
the Committee will be reviewing the projects again next year.
It was moved by Debra Becker, seconded by Randy Carpenter, that the Committee approve the percentages on the Street Impact Fee capital improvement program list, except West College Street,
South 8th Avenue to South 19th Avenue; Oak Street, Cedar Street to Main Street; and South Church Avenue, with the proviso that the projects come back to the Committee for final review.
The motion carried with Bill Simkins voting No.
Responding to Debra Becker, Assistant Planning Director Saunders suggested that the discussion about percentages is adequate for the three remaining projects that were not acted on in
the motion.
B. WASTEWATER CAPITAL IMPROVEMENTS PROGRAM SCHEDULE FOR FISCAL YEARS 2008-2012
(Decision on the draft financial summaries and project descriptions for the Wastewater Impact Fee Fund.)
Vice Chair Ron Kaiser noted that Chair Tim Dean e-mailed his comments on these specific capital items to the Committee members as well.
Responding to Randy Carpenter, Assistant Planning Director Chris Saunders stated the South Rouse Avenue trunk main is currently adequate; however, a larger main must be installed to
accommodate development to the south. He noted the area to be served by the larger line is currently outside city limits but is expected to be annexed before it is developed.
Responding to Vice Chair Kaiser, the Assistant Planning Director confirmed this is analogous to the South Church Avenue improvements.
It was moved by Rick Hixson, seconded by Randy Carpenter, that the Committee approve the entire package of capital improvement projects as impact fee eligible. The motion carried.
Assistant Planning Director Chris Saunders stated that he spoke with Amanda McInnis with HDR Engineering about the costs of expansion at the wastewater treatment plant. She indicated
that a lot of the design work has been done but cost differences between simply converting the process and expansion in conjunction with the conversion have not yet been identified.
He indicated that those numbers will become available as HDR Engineering continues its work on designing the plant, and this project will be back before the Committee during the update
process since it is not scheduled until Fiscal Year 2009.
Responding to Vice Chair Ron Kaiser, Bill Simkins stated he does not want to vote on the percentages of impact fees for these projects, noting that to do so is premature.
Following a brief discussion, the Committee agreed that no action is to be taken on the percentages until the consultant has an opportunity to determine what is legally defensible.
ITEM 6. NEW BUSINESS
B. FIRE CAPITAL IMPROVEMENTS PROGRAM SCHEDULE FOR FISCAL YEARS 2008-2012
(Review and discussion on the draft financial summaries and project descriptions for the Fire Impact Fee Fund.)
Director of Public Safety—Fire Chuck Winn distributed copies of his memo in which he provided additional information on the five projects in the capital improvement program, which include
two fire stations, two fire trucks, and a traffic signal pre-emption system.
Director Winn stated the City Commission authorized the hiring of a consultant to develop a fire protection master plan, and that plan was adopted by the Commission on November 6. The
recommendations in that report are based on the benchmark of a six-minute response time at the 90th percentile. The report includes a map that shows the current city limits and service
area and the area that can be served within six minutes by the two existing fire stations. That map shows the downtown core area is within the six-minute response time from both fire
stations, which indicates that those two stations are properly positioned for the community. The second station was built in 1974, and the report suggests that the next two stations
should be constructed in the northwest and southwest areas to adequately serve the vast majority of the community.
Director Winn noted that in 2000, the Insurance Services Organization (ISO) did a site visit and determined that Bozeman was not keeping up with its growth and, as a result rerated Bozeman
from a 4 to a 5. The result was that fire insurance premiums for both residential and commercial properties rose by 12 to 15 percent, depending on the insurance carrier.
Director Winn stated that traffic causes problems in maneuvering through the community, and that lengthens the response time. He cited a good road network and traffic signalization
as critical elements in responding to an emergency, and noted a traffic pre-emption system assists by turning the lights green for the direction in which the fire truck is moving. He
stated that all of the traffic signals installed in the last four or five years have the Opticom system installed, and it will be added to the signals on Main Street in conjunction with
the overlay and signalization project.
Director Winn drew attention to the response times in Figure 3, noting that those areas in red are significantly outside the optimum response times. He cautioned that fire flashover
typically occurs at six minutes after the fire starts, and the result is instantaneous death. In a cardiac arrest event, the shorter the time for CPR to be administered, the better
the chance of recovery; once five to six minutes have passed, the person doesn’t have a chance of survival. He stressed that emergency medical services (EMS) is a big part of the Fire
Department’s job.
Director Winn noted that the fire master plan says a fire station is needed today because the community has grown beyond what the two stations can serve; and in four or five years, a
fourth station may be needed. He indicated the third fire station is to be located in the northwest
quadrant while the fourth station is to be located in the southwest quadrant based on current growth patterns. He indicated the fire station on the northwest side will be located at
or near Flanders Mill Road and West Oak Street, and the fire station on the southwest side will be located along South 19th Avenue at West Graf Street.
Responding to Debra Becker, Director Winn stated that the Fire Department is not the first response for fires outside city limits. He noted, however, that there are roadways outside
city limits that have been annexed due to the requirements of state law.
Responding to City Manager Kukulski, Assistant Planning Director Saunders stated there are no impact fee credits for the land already obtained for the fourth fire station, since it was
provided through negotiations for annexation. He then noted the Cattail Creek Annexation, in which a portion of the annexation was delayed until water service and fire protection could
be provided to the area.
Director of Public Safety—Fire Winn noted that the consultant’s report suggested that, at 5-percent growth over twenty years, Bozeman will need seven fire stations.
Responding to Randy Carpenter, Director Winn stated that, based on the size of the community, the ISO indicates three fire stations and three engine companies are needed. He stated,
however, the City does not have enough firefighters on duty to flow water for other than a small residential fire. He then indicated that the higher ISO rating has resulted in a 12
to 15-percent increase in insurance premiums on both residential and commercial properties. He suggested that the construction of Station No. 3, along with improvements at the 9-1-1
center and in the water distribution system, should result in a better ISO rating.
Responding to Debra Becker, Director Winn stated the ISO uses a rating scale of 1 to 10, with 10 being uninsurable and 9 being rural. He suggested that the City should be able to get
back to a rating of 4 and voiced his desire to see the rating even drop down to a 3.
Responding to Debra Becker, Director Winn stated the last fire truck cost $427,000 unequipped. He noted that, because the department buys quality apparatus and takes care of it, it
generally lasts fifteen years. He indicated that the City can lease/purchase a fire truck or buy a used truck. He then stated the City has a 1986 ladder truck with a 110-foot ladder,
and that vehicle is used on most of the bigger fires. He noted that buildings like Hedges dormitories are designed to be fought from the inside out, so the department’s biggest challenge
is the three and four-story buildings.
Debra Becker noted that one of the elements of the new mixed use concept is five to six-story buildings with residential uses on the upper floors; Assistant Planning Director Saunders
responded that the City is starting to see mandatory sprinkling and refuge areas for that type of structures.
Anna Rosenberry stated that replacement of the existing ladder truck would not be eligible for impact fees; rather, it would need to be funded through a voted mill levy or through the
general fund.
Responding to Randy Carpenter, City Manager Kukulski stated that if there were no growth, the City could continue to provide adequate service with the two existing fire stations.
Responding to Bill Simkins, Director Winn stated the City is working hard to build relationships with the rural departments. The City is a party to cooperative agreements with the rural
fire departments and calls on those departments for more help than it provides to them. As a result, the dollar value to the taxpayer in Bozeman is incalculable. He stressed that,
while response time is everything in an urban setting, it is not as critical in the rural departments. He then concluded by stating that the Bozeman Fire Department has one of the six
regional hazardous materials response teams in the state and responds inside the county and outside the county at the State’s request.
Assistant Planning Director Saunders noted that impact fees have been in place since 1994, and the annexation map shows that the newly-annexed areas are the areas where deficiencies
are occurring. He stated that reflects the direct correlation between growth and the need for the new fire station.
Vice Chair Ron Kaiser asked if the Committee wishes to act on these projects; the Committee members agreed that action should be delayed to the next meeting to give the Chair a chance
to attend.
A. WATER CAPITAL IMPROVEMENTS PROGRAM SCHEDULE FOR FISCAL YEARS 2008-2012
(Review and discussion on the draft financial summaries and project descriptions for the Water Impact Fee Fund.)
Anna Rosenberry stated that all of these projects are based on the results of the updated water facility plan.
Shops Complex, Phase I. Anna Rosenberry noted this project has been seen in other impact fee programs. The Committee members had no additional questions or comments.
22 MG Membrane Water Treatment Plant. Rick Hixson stated the first step is a pilot testing project, based on the recommendations of the consultant. He noted the new plant is to be
a membrane filtration plant, and the mini version of the anticipated technology is to be used for eighteen months to two years to determine how well it works and to provide the data
on which the design of the plant, including the number of filter banks and pretreatment needs, will be based. He indicated that once that information is available, the next step is
to move forward with the design phase.
Rick Hixson estimated the cost of the pilot plant at $200,000 and noted that, based on the fact that the new plant is to have a 22-million-gallon-per-day capacity versus the current
15-million-gallon-per-day capacity, 67 percent of the costs would be eligible for impact fees. He stated the total cost of the plant is estimated at $30 million, and has a projected
life of fifty years. The 22 MG plant is projected to last until 2025, based on a 5-percent annual growth, and the plant can then be expanded to 36 million gallons per day at an estimated
cost of $7.5 million.
Responding to questions from Debra Becker, Anna Rosenberry stated that elements of the current plant now need to be replaced because they are worn out, and there are days when the plant
is running at capacity.
Bill Simkins asked if the projected growth rate in Bozeman is a compound rate.
Rick Hixson responded that growth has averaged 5 percent over the last five years. He noted that the last facility plan updates were based on a lower projected growth rate and, as a
result, improvements have been needed sooner than projected. He stated that, if the growth rate slows from the projected 5 percent, the result will be a delay in the need for improvements.
Assistant Planning Director Saunders cautioned that, for a number of years, the City promoted wells for irrigation; however, the State has recently ruled that can no longer be done.
He stressed that the lack of water limits growth and, in the summertime, there are huge peaks of demand due to sprinkler systems.
Responding to Randy Carpenter, Rick Hixson stated a conservation plan was done in 1998, and the new facility plan also addresses conservation. The City Commission has directed staff
to pursue conservation more aggressively. He cautioned that, at best, water consumption may be reduced an estimated 12 to 18 percent under a conservation plan for both indoor and outdoor
water usage that is embraced by the entire community. In light of those statistics and current demands for water, a new water treatment plant is needed right now.
Sourdough Creek Dam. Rick Hixson stated that this project is really about perfecting the City’s impoundment rights in the Sourdough Creek basin. He noted that $50,000 is to be spent
in researching and perfecting those rights.
Anna Rosenberry stated the updated facility plan identifies water rights as an issue by the year 2015.
Assistant Planning Director Chris Saunders stated the City has reliable stream rights in Sourdough Creek; however, the impoundment rights will be needed when the City starts hitting
water limitations as the community continues to grow.
Rick Hixson stated that the City is estimated to exceed its water resources between 2020 and 2025. He noted that, for years, the City has accepted cash-in-lieu payments for water rights;
however, a different approach must be taken to ensure adequate water can be provided. He also noted that the City was forced to breach the Mystic Lake dam, but has always intended to
rebuild it.
Mayor Jeff Krauss noted it is important to make sure the City has legal water rights. He stated the Mystic Lake dam was breached in 1985, and it is important to perfect the impoundment
water rights, which encompass a considerable number of acre feet of water. He stressed that the lack of water will forever be a limiting factor for growth, and it is important to claim
these water rights. He encouraged the Committee to support the perfecting of the impoundment water rights. He recognized that many people don’t want to see a dam constructed in this
drainage, but noted that other alternatives previously considered, such as wells near the West Gallatin River, are not an option.
Vice Chair Kaiser noted it makes sense to secure these water rights.
Responding to Debra Becker, Mayor Krauss stated the City has enough water right now; however, growth will require more water.
Rick Hixson stated the City needs to hire a consultant who builds dams to identify the process, the hurdles and the timeline for constructing a new dam. He noted that staff anticipates
the process will take twenty years to complete.
Mayor Krauss stated he discussed the issue of water conservation with the Mayor from Bend, Oregon, where they have been using groundwater but are being caught in the basin issues. He
then stated it is important to protect the rights of the citizens within the community.
Sourdough Creek drainage water rights. Rick Hixson indicated that this project is to be funded in Fiscal Year 2008.
Lyman Creek expansion of groundwater. Rick Hixson stated that Lyman Creek was the City’s original water source. It is a spring, and the City has the rights to all of the water in the
drainage with a 5-million-gallon underground reservoir to store water, but the City is not collecting all of the water that the drainage produces. As a result, the facility plan update
recommends that the City take steps to collect the rest of the groundwater, which can be done by building an infiltration gallery upstream and piping the water into the reservoir. He
indicated this project is fairly simple and not really expensive.
Responding to Mayor Krauss, Rick Hixson stated this water source remains underground, and the City has the most senior rights in the drainage. He indicated that capturing the additional
groundwater should not impact the East Gallatin River.
5.3 MG concrete water storage reservoir. Rick Hixson noted that the City’s available water storage is projected to be inadequate by the year 2017. The primary driver for water storage
is fire protection. He indicated that water is to be stored downstream, where it can be readily available. He stated this project is eligible for impact fees because this is additional
storage needed to meet the water demands of growth.
Assistant Planning Director Saunders stated that, if this reservoir is built close to the water treatment plant, the system can be gravity fed and would provide adequate water pressure
south of Goldenstein Lane.
Redundant transmission main from water treatment plant. Rick Hixson stated there is literally only one pipe from the water treatment plant into town. Two winters ago, that pipe broke,
and the City asked everyone to not take showers or use any extra water for 24 to 36 hours, so the line could be fixed.
Assistant Planning Director Saunders noted that a looped system serves all parts of the community once the water reaches town.
Responding to Vice Chair Kaiser, Rick Hixson stated that the redundant line will provide added capacity.
In response to comments from Bill Simkins, Anna Rosenberry encouraged the Committee members to review the percentages from the various funding sources, noting that they reflect acknowledgement
that only a portion of the project qualifies for impact fees.
Rick Hixson stated it is anticipated much of this water trunk main will be built by developers. He indicated that a portion of the project is impact fee eligible because it provides
additional capacity in the southwest portion of the community and provides for redundancy and looping in that portion of the system that will allow for development of the land along
Goldenstein Lane and South 19th Avenue.
ITEM 7. SETTING OF NEXT MEETING DATE
Secretary Robin Sullivan distributed the tentative meeting schedule for the remainder of the year, noting that the next few meetings are scheduled for 6:00 p.m. because of the heavy
agendas. She then asked if the Committee wishes to set all of its meetings for 6:00 p.m. or return to 7:00 p.m. when the meetings are lighter.
Vice Chair Kaiser noted that 6:00 p.m. works well when the agenda is heavy but suggested the Committee may have better attendance if the meetings were set at 7:00 p.m., and asked that
the times not be firmly set until after input from Chair Tim Dean.
ITEM 8. ADJOURNMENT
There being no further business to come before the Committee at this time, Vice Chair Ron Kaiser adjourned the meeting at 8:45 p.m.
_____________________________________ _____________________________________
Ron Kaiser, Vice Chair Chris Saunders, Assistant Planning Director
Impact Fee Advisory Committee Dept of Planning & Community Development
City of Bozeman City of Bozeman