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HomeMy WebLinkAbout02-14-07 Impact Fee Advisory Committee Minutes.doc** MINUTES ** CITY OF BOZEMAN IMPACT FEE ADVISORY COMMITTEE THURSDAY, FEBRUARY 15, 2007 6:00 P.M. ITEM 1. CALL TO ORDER AND ATTENDANCE Chair Tim Dean called the meeting to order at 6:05 p.m., in the Commission Room at the Municipal Building, 411 East Main Street, Bozeman, Montana. Members Present: Tim Dean, Chair Debra Becker Rick Hixson Nicholas Lieb Anna Rosenberry Members Absent: Randy Carpenter Ken Eiden Ron Kaiser Bill Simkins Staff Present: Chris Saunders, Assistant Planning Director Robin Sullivan, Recording Secretary Guests Present: None ITEM 2. MINUTES FROM JANUARY 25, 2007 Tim Dean delayed action on the minutes of the January 25, 2007, meeting since they are not yet complete. ITEM 3. PUBLIC COMMENT No comment was submitted under this agenda item. ITEM 4. CITY COMMISSION LIAISON Commissioner Liaison Sean Becker was not present. ITEM 5. OLD BUSINESS Chair Tim Dean questioned the need for a meeting next week. Assistant Planning Director Chris Saunders responded that the Committee’s meeting schedule is the second and fourth Thursdays of the month. He had anticipated getting information from HDR Engineering for next week’s meeting; however, a conversation with Randy Goff has revealed a couple parts of the report are not yet tied down, and the consultant prefers to wait until the report is complete rather than releasing a report that needs revision. Since that presentation is not going to be given, he suggested that next week’s meeting can be cancelled if the Committee so desires. The Committee agreed to cancel next week’s meeting. Assistant Planning Director Saunders reported that Tindale Oliver is planning to have its report to the City in early April. Chair Tim Dean asked if the City Commission has voted on the capital improvement programs for streets and wastewater impact fees. Anna Rosenberry reported that the City Commission approved the capital improvement program for street impact fees without any changes, on a 4 to 1 vote. She stated that the Committee’s actions and concerns were discussed, with attention given to the Committee’s interest in ensuring that the allocation of costs between the utility fund and the impact fees are scrutinized at the time bids are awarded. She noted that Commissioner Rupp voted against the motion because he had issues with the shops complex and felt that South Church Avenue should be scheduled rather than unscheduled. Assistant Planning Director Saunders noted staff pointed out that the Committee was concerned about the cost allocations and, as a result, did not recommend a certain percentage of impact fees at this time. The Commission recognized and endorsed the idea that, as each project moves through the process, the percentages be reviewed and that, once the bids are opened, the real dollars be tied to specific funding sources. He indicated that the South Church Avenue project was recognized as being important for the east side of town but that coordination with the County and acquisition of right-of-way are needed first. Responding to Chair Dean, Anna Rosenberry stated the Committee’s recommendations on the capital improvement program for wastewater impact fees have not yet been forwarded to the City Commission because of issues pertaining to the scope of work at the wastewater treatment plant and the scheduling of certain improvements. A. DECISION ON WATER 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.) Chair Tim Dean asked that the Committee review the projects in the capital improvements program, working off the list provided in last meeting’s packet. Shops complex – Phase I. Responding to Nicholas Lieb, Anna Rosenberry stated the percentages of various funding sources for this project pre-date her tenure with the City but assured the Committee that the percentages will be closely scrutinized as the project moves forward. Assistant Planning Director Saunders stated that, since the shop complex is to replace an existing facility, only the additional area is eligible for impact fees. He cautioned that the City is also accountable to the ratepayers, so the breakdown of funding sources must be appropriate and based on who benefits. He stressed that the percentages listed for various projects are typically placeholders and designed to ensure that those impact fees are not committed to other uses, and noted that they are definitely subject to change as the process moves forward. Responding to questions from various staff members, Anna Rosenberry stated the actual design and location of the new facility are not yet known. She indicated that monies have been set aside in the FY2007 budget for pre-design work. The type of construction is not known, but could include a multiple of types based on the variety of uses that ranges from office use to vehicle storage. Chair Dean asked the Committee to vote on each of the projects as they are discussed. All committee members voted for approval of this item. 22 MG membrane water treatment plant. Responding to Chair Dean, Rick Hixson stated the City is being required to meet a higher standard of water treatment, and this project changes to membrane technology as well as expanding the capacity of the plant. He noted the current plant is worn out and, while it is rated at 15 million gallons per day, it can only treat 14 million gallons per day. He cautioned that the plant hits its capacity several times each summer and, as a result, the City is on the verge of going to odd/even watering restrictions in the summer. Chair Tim Dean asked if there are any questions about the eligibility of this project for impact fees. Debra Becker stated she supports partial eligibility for the project, but is unsure about the percentage. Chair Dean noted the new treatment plant will benefit every citizen in Bozeman and asked how the 33-percent figure was derived. Rick Hixson responded that the capacity of the new plant will be 22 million gallons per day, which results in adding approximately 50 percent of the current capacity. Since the membrane is wrapped in the design of the entire project, staff has determined that 33 percent is a fair estimate of that portion of the project that qualifies for impact fees. Responding to Debra Becker, Rick Hixson confirmed that the calculation can be reviewed again after the pilot plant has been operated. Chair Tim Dean asked the Committee to vote on this project; all voted in support of it. Sourdough Creek (Mystic Lake) Dam. Rick Hixson stated the first step in re-establishing the Mystic Lake dam is to hire a consultant familiar with dam construction and the regulatory steps to permit and build a dam. That consultant would be responsible for an initial feasibility study that includes developing a list of tasks, identifying obstacles, estimating costs, and providing a timeline for the project from start to finish. He stressed that it will take approximately twenty years from the initial study to the dam being operational. Responding to Debra Becker, Rick Hixson confirmed that staff has determined this project is fully eligible for impact fees because it is growth related. He noted that if growth slowed to nothing, there would be no need to pursue this item. Debra Becker voiced her concern about approving this item at 100 percent funding from impact fees. While this portion is estimated at only $50,000, the cost of the total project is estimated at $20 million; and she is concerned that approval of this phase will set the precedent for the remainder of the project. She further noted that this is for replacement of a dam previously removed and questioned how it can be characterized as completely growth related and capacity expanding. Tim Dean noted that the entire city will be using this dam, not just the new growth. Rick Hixson responded that, while that is true, the City would not build the dam if it were not impacted by growth. Responding to Debra Becker, Rick Hixson stated that if the City didn’t plan to grow, he is not sure staff would make much effort to preserve the impoundment water rights. He cautioned that, at the present time, those water rights are not perfected and are in jeopardy. Assistant Planning Director Saunders noted that the decision in the Smith River case complicates this issue, since it says new aggregated wells are not allowed in the Upper Missouri Basin, which includes Bozeman. Further, the 1972 Montana Constitution requires adjudication of all water rights, particularly since there are more water rights filed than water available. Perfecting these rights will help ensure the City has water available for future growth. Debra Becker suggested the City should want to perfect those water rights, whether it intends to use the water in the future or not. Chair Tim Dean recognized that City staff is doing its job correctly and is planning for the future; however, he cannot support 100-percent funding of this item through impact fees. Assistant Planning Director stated that analysis on the dam may show some split benefit; however, until the initial feasibility study is completed, that question cannot be answered. He suggested that the Committee go on record in support of the project, recognizing that the analysis may reflect a different split than the current placeholder provides. Responding to Nicholas Lieb, Rick Hixson stated that Hyalite Reservoir has been filling every year and that the City draws it down. He then voiced his hope that the reservoir will fill once again this year. Responding to Debra Becker, Rick Hixson stated that the Lyman Creek water supply is the impoundment backup to Hyalite Reservoir. Also, the City has in-stream rights to Sourdough Creek, and that is the water it uses first because that water source is the cheapest available. Chair Tim Dean asked for a Committee recommendation; Anna Rosenberry and Rick Hixson voted for it while Debra Becker, Nicholas Lieb, and Tim Dean voted against it because of the 100-percent funding from impact fees. Debra Becker suggested that the Committee consider a lower percentage of impact fees. Assistant Planning Director Chris Saunders stated any impact fee monies collected must be spent within ten years. This is a twenty-year project, and current impact fees would be used for preparatory work to the actual construction of the dam. Rick Hixson cautioned that when the City begins to plan for construction of the new dam, people will “come out of the woodwork”; and each of their concerns and issues must be addressed before permits can be obtained and construction begun. He noted that could take as much as five years of meetings and planning. Debra Becker characterized this as a philosophical issue rather than a technical issue. She also noted the Committee cannot identify an alternative percentage of impact fees on its own; Assistant Planning Director Saunders responded that is the purpose of this study. Responding to Nicholas Lieb, Anna Rosenberry stated the only other source of funding available for this study is through the ratepayers, and indicated that the reserve could handle the $50,000 expense for the study. Chair Tim Dean suggested there should be a compromise in the middle. Responding to Nicholas Lieb, Assistant Planning Director Chris Saunders stated the water facility plan shows that the City is running out of storage capacity and, if it wants to continue to provide services to a growing community, additional storage is needed. Debra Becker proposed that the Committee approve the project with 50-percent funding from impact fees and 50-percent funding from some other source the City deems appropriate. The Committee approved the proposal with Debra Becker, Nicholas Lieb, Rick Hixson, and Tim Dean voting for it; and Anna Rosenberry voting against it. Sourdough Creek drainage water rights. Chair Tim Dean asked if the Committee supports this project as proposed; all of the Committee members voted for it. 5.3 MG concrete water storage reservoir. Responding to Debra Becker, Rick Hixson stated this item is entirely fire related, since the Fire Department must be able to flow 1500 gallons per minute for two hours to meet ISO requirements for fire protection. He indicated that, while the storage reservoir is not needed today, it will be by 2017. Further responding to Debra Becker, Anna Rosenberry stated that large ticket items in the facility plan are reflected in this project list even though they are not needed immediately to ensure that they are remembered and planned for. Responding to Chair Dean, Rick Hixson stated there is no alternative for this finished water storage; the only question is location. Assistant Planning Director Chris Saunders stated the City crews are unable to flow the fire hydrants south of Goldenstein Lane because the water tanks are located north of Goldenstein Lane, and the City’s system operates on gravity flow. He noted that, if the City wishes to annex and allow development south of Goldenstein Lane, a reservoir to the south or booster pumps will be needed. Chair Tim Dean voiced his concern about voting on unscheduled items, stating it is too hard to do so. Assistant Planner Chris Saunders stated that, if the Committee wishes, it may choose to not vote on unscheduled items, particularly since the capital improvement program will be reviewed annually. Debra Becker proposed that the Committee pass on making a recommendation at this time. The Committee voted on the proposal, with Debra Becker and Tim Dean voting for it; Nicholas Lieb, Rick Hixson, and Anna Rosenberry voting against it. The Committee then voted on the project as submitted; Nicholas Lieb, Rick Hixson, and Anna Rosenberry voted for it while Debra Becker and Tim Dean voted against it. Lyman Creek – expansion of existing groundwater collection. Responding to Debra Becker, Rick Hixson stated that the City is capturing about 1 million gallons a day from the Lyman Creek water source while it has rights to a lot more than that. He stated that installation of a large perforated pipe upstream will allow the City to collect the additional water to which it has the rights, and the water can then be piped to the reservoir. He indicated the water can be used without treatment, but the City does chlorinate and fluoridate it. Responding to questions from Nicholas Lieb, Assistant Planning Director Saunders stated that impact fee monies sat for several years due to the court case. Since the court case has now been resolved, monies have been spent on several large projects, including the intake line from Hyalite Reservoir and a couple distribution expanding projects. None of the monies, however, have been spent on the plants. This project enables the City to increase its water supply while deferring more costly projects. In response to concerns voiced by Committee members, Assistant Planning Director Saunders stated that spending the impact fees will not result in increased fees; rather, the City will simply be spending the monies it has collected to date. Chair Dean asked for a Committee vote on this project; all members vote in favor of the project as submitted. New transmission main from water treatment plant. Anna Rosenberry stated that $1.8 million is proposed to be funded through impact fees while the funding source for the remaining $20 million is yet to be determined. She stressed that oversizing of the pipe is the portion eligible for impact fees. Rick Hixson stated the City will try to get developers to build the 48-inch transmission main in conjunction with various development projects anticipated south of Goldenstein Lane. He noted the developers would then be eligible for impact fee credits; however, the project must be on the capital improvement program list to allow for those credits. Chair Dean asked for a Committee vote on this project; all members vote in favor of the project as submitted. B. DECISION ON FIRE 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.) Debra Becker noted that Director of Public Safety—Fire Chuck Winn made a good presentation on response times, etc., at the last meeting. Generally speaking, she noted that all of these projects seem to be clearly related to future growth, particularly since response times are adequate at the present time, but are growing less and less adequate as the community grows. Responding to Chair Dean, Assistant Planning Director Saunders stated that the next fire station is to be constructed in the northwest quadrant, with the fourth station to be constructed in the southwest quadrant. He noted that all of the development around where those fire stations are to be constructed has occurred over the past ten years and has paid impact fees. Fire engine for Station 3. Chair Tim Dean stated he is not clear on the nexus for this project. Anna Rosenberry responded that all of the growth around Station No. 3 has occurred over the last ten years and is triggering the need for constructing and equipping of an additional fire station. She then indicated that, while the fourth fire station is projected for 2011, it will not be constructed until growth in the area triggers the need for it. Chair Dean asked for a Committee vote on this project; all members vote in favor of the project as submitted. Fire station No. 3. Responding to questions from Nicholas Lieb, Anna Rosenberry stated that if this fire station is not built, the Fire Department will not be able to reach the northwest quadrant within the acceptable timeframes for fire oand medical emergencies. She noted that those include flashover in the event of a fire or quick response times in the event of a heart attack or stroke. Assistant Planning Director Saunders drew attention to the annexation map, which reflects that the city has grown a full mile to the west over the past ten years. He then stressed that time is a real measure of the level of service provided by the Fire Department. Chair Dean asked for a Committee vote on this project; all members vote in favor of the project as submitted. Traffic signal pre-emption program. Debra Becker noted that Director Winn addressed this program in his presentation, and characterized it as an ingenious system that allows for quicker response times. Chair Dean asked for a Committee vote on this project; all members vote in favor of the project as submitted. Fire Station No. 4. Chair Dean asked for a Committee vote on this project; all members voted in favor of the project as submitted. Fire Engine for Station No. 4. Chair Dean asked for a Committee vote on this project; all members vote in favor of the project as submitted. Anna Rosenberry noted that Director Chuck Winn is in the process of designing Station No. 3, and that design will also be used for Station No 4. Debra Becker suggested that staff people should possibly be invited to come before the Committee and advocate for their projects. Responding to concerns voiced by Committee members, Assistant Planning Director Saunders stated that City staff and the Commission are very well aware of the issues surrounding impact fees and the importance of not getting them too high. ITEM 6. SETTING OF NEXT MEETING DATE Assistant Planning Director Chris Saunders noted that, in light of the discussion at the beginning of the meeting, there will be no meeting next week. He indicated that he will keep the Committee informed on scheduling of the next meeting as information becomes available. Chair Tim Dean voiced an interest in making an update presentation to the Commission. Assistant Planning Director Saunders suggested that one of the Commission’s policy meetings, which are held the second and fourth Thursdays of each month, would be a good time to make such a presentation. ITEM 7. ADJOURNMENT There being no further business to come before the committee at this time, Chair Tim Dean adjourned the meeting at 7:36 p.m. _____________________________________ _____________________________________ Tim Dean, Chairperson Chris Saunders, Assistant Planning Director Impact Fee Advisory Committee Dept of Planning & Community Development City of Bozeman City of Bozeman