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HomeMy WebLinkAboutPublic Hearing & Adoption of Parts of the Capital Improvements Program.pdf 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 2011-2015. · Fire Impact Fees – Page 254, CIP Book · Water Impact Fees – Page 262, CIP Book · Wastewater Impact Fees – Page 273, CIP Book · Street Impact Fees – Page 237, CIP Book ** Reminder: Bring your FY2011-2015 Recommended CIP Book to the meeting.** MEETING DATE: March 1, 2010 AGENDA ITEM TYPE : Action Item RECOMMENDATION: Adopt the above listed parts of the Capital Improvements Program (CIP) for Fiscal Years 2011 – 2015, with any modifications, after public comment and Commission discussion. BACKGROUND: On December 14, 2009, the Commission received the City Manager’s proposed Capital Improvements Program (CIP) for Fiscal Years 2011-2015. At that time, the document was made available to staff and the public online at http://www.bozeman.net/finance/capital_improvements_plan.aspx. 131 We are presenting the CIP for adoption in its individual parts, over a number of public hearings this spring. Our Capital Improvements Program serves as an important guide for city staff, Commissioners, and citizens, and plans for over $98 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. Once the Commission adopts CIP schedules, the items listed in the FY2011 column will be included in the City Manager’s Recommended Budget to be presented in June. If, for a number of reasons, the City Manager’s Recommended Budget does not contain an approved FY2011 CIP item, the circumstances will be explained during the Recommended Budget presentation. Through our regular budget process, the Commission will then have the opportunity to take additional public comments, have 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. Impact Fees: By law, impact Fees can only be spent to construct capital items with a useful life of 10-years or more that expand service delivery throughout the city. They cannot be used to fund annual maintenance or operations of the water, sewer, street, or fire system. (For example, these funds are not a source that may be used to solve “deferred maintenance” issues.) In recent years, we have committed the existing balances and future revenues of the Water, Sewer, and Fire impact fee funds to some very large, capacity expanding projects: Water Plant, Water Reclamation Facility, and Fire Station #3. As a result, the schedules for these funds are relatively simple and include repayments of associated debt. The Street Impact Fee fund is different in that it has a balance of over $5Million that is available to allocate to projects (see page 239.) 132 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 10th 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 move forward with the College Street project as the next Street Impact Fee project to be funded. This is a change from what the Commission adopted in the FY10-FY14 CIP schedule. 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 (FY16-FY19) are sometimes included in the plan as “unscheduled” so that everyone can be aware they are on the horizon. Projects that are needed 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. Our presentation will include discussion of the basis for our revenue estimates and the proposed projects/commitments for each fund. FISCAL EFFECTS: Approving this plan does not provide appropriation authority. The FY11 projects and equipment will be incorporated into the FY11 City Manager’s Recommended Budget, which requires final approval before these projects will be funded. The remaining CIP years (FY12-FY15) 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. 133 ALTERNATIVES: Changes can be made to the inclusion or timing of scheduled projects and the underlying revenue estimates; however, we do not customarily adopt CIP schedules that result in negative balances in the last (5th) year of the plan. Report compiled on: February 23, 2010 Attachments: Impact Fee Advisory Board Minutes, On File in the City Clerk’s Office: Capital Improvements Program for Fiscal Years 2011-2015 134 1 Impact Fee Advisory Committee Meeting– December 10, 2009 ** MINUTES ** THE CITY OF BOZEMAN IMPACT FEE ADVISORY COMMITTEE THURSDAY, DECEMBER 10, 2009 ITEM 1. CALL TO ORDER AND ATTENDANCE Chairperson Pro Tem Nickelson called the meeting to order at 6:20 p.m., in the Madison Meeting Room, City Hall, 121 North Rouse Avenue, Bozeman, Montana. Members Present Staff Present Rick Hixson Chris Saunders, Assistant Planning Director James Nickelson, Vice Chair Tara Hastie, Recording Secretary Anna Rosenberry Members Absent Eric Bryson, Commission Liaison Visitors Present ITEM 2. MINUTES OF DECEMBER 4, 2008. The minutes of December 4, 2008 were opened and continued to the next meeting of the IFAC due to lack of a quorum. 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} There was no information forthcoming at this time. ITEM 5. REVIEW AND DISCUSSION 1. Annual CIP Update – Discussion and Recommendation to City Commission on: a. Street Impact Fee CIP Director of Finance Rosenberry directed the Committee members to the Street Impact Fee CIP documentation. She noted money was available if prioritization of projects was reached by the City Commission. She stated she had updated the beginning balance, and had left the College and 11th Ave. roundabout scheduled as the City had not yet been paid. City Engineer Hixson responded that the right of way for College and 11th was in the process of being procured. 135 2 Impact Fee Advisory Committee Meeting– December 10, 2009 Assistant Director Saunders responded that the construction of the signal at 11th Ave. & Kagy Blvd. had come in under ~ ½ million dollars and noted the widening of Baxter Lane was roughly a ¼ million dollar project; both are active projects. Director of Finance Rosenberry clarified that she would need to carry forward one million dollars. Assistant Director Saunders responded the actual amount would be closer to $750,000.00. Director of Finance Rosenberry stated she had modified an item from scheduled to unscheduled; Oak Street – Rouse Avenue to Cedar Street. She noted roughly 1.5 million dollars would need to be removed from the schedule and she did not know which items to modify. Assistant Director Saunders noted the Story Mill Neighborhood project had formally expired. City Engineer Hixson suggested Durston be slid back at least one year. Director of Finance Rosenberry asked which project would most likely be completed. City Engineer Hixson responded College Street to S. 19th Ave. should be the next project and Durston Road should be unscheduled. Assistant Director Saunders suggested Baxter should be taken care of before Durston Road as there were no pedestrian facilities on Baxter. Durston Road was more likely to have new development since several large subdivisions are already platted; he suggested Baxter be pushed to FY15 with Durston pushed back one year. Chairperson Pro Tem Nickelson stated he concurred with the priority of projects suggested by Committee members and added that the relocation of those fees could spur development for those areas. Assistant Director Saunders stated the intersection of 23rd and College St. had failed in recent analysis and would not handle future traffic flow estimates. City Engineer Hixson asked Assistant Director Saunders to clarify the suggested timeline for Baxter - 19th to Cottonwood. Assistant Director Saunders responded the suggestion was to design in FY15 and construct in FY16 Director of Finance Rosenberry asked if the Committee was alright with the proposed 27th and Oak Street intersection designation and the Kagy/7th intersection designation. Assistant Director Saunders responded the intersection of 27th and Oak Street should be a priority due to traffic volume and complexity. He asked City Engineer Hixson how College and 8th in the FY12 lined up with in-process non-street improvements. City Engineer Hixson responded College and 8th should be moved to FY13. Director of Finance Rosenberry stated she would move College and 8th to FY13 and asked if the Oak and Kagy projects should be swapped. Assistant Director Saunders responded that Oak/27th and Kagy/7th should be swapped and added that 27th and Oak should be moved to FY12. The IFAC concurred to forward an informal recommendation of approval for the Street Impact Fee CIP to the City Commission. b. Water Impact Fee CIP Director of Finance Rosenberry stated all of the collected fees would go toward paying the current debt. She noted the projects that remained on the schedule and asked for verification of whether or not they should be removed. City Engineer Hixson responded leaving the reservoir unscheduled would be alright. Assistant Director Saunders suggested the facility could be redesigned to have a modular addition. City Engineer Hixson responded the facility could not be modular, but the difficulty was in building that large of a facility all at once. Director of Finance Rosenberry responded there was no way the money would be available and the cost would have to fall to the rate payers. The IFAC concurred to forward an informal recommendation of approval for the Water Impact Fee CIP to the City Commission. c. Wastewater Impact Fee CIP 136 3 Impact Fee Advisory Committee Meeting– December 10, 2009 Director of Finance Rosenberry stated that after construction of the Water Reclamation Facility expansion, currently underway, wrapped up there would be a bona fide debt schedule. She noted there was only one item scheduled and listed the items that were unscheduled; she asked if there were any projects currently unscheduled that needed to be scheduled. City Engineer Hixson responded there was nothing that he could think of that would need to be scheduled. Chairperson Pro Tem Nickelson concurred with City Engineer Hixson. Assistant Director Saunders responded the challenge would be the estimated amount versus the actual amount of impact fees collected. Director of Finance Rosenberry stated she would not have a definitive number until the construction project was completed. The IFAC concurred to forward an informal recommendation of approval for the Wastewater Impact Fee CIP to the City Commission. d. Fire Impact Fee CIP Director of Finance Rosenberry stated that the $890,000.00 loan from the general fund was scheduled to be paid back with a variable interest rate and added that no other items were scheduled. Assistant Director Saunders asked if the scheduled Impact Fee Update would be paid for out of the Administrative portions. Director of Finance Rosenberry responded she had not decided or thought about it much yet, but the bad news was that the annual fee was a percentage of what was collected and would likely not be enough to provide for the updates; it would need to be discussed. City Engineer Hixson clarified that it was the study that would need updating. The IFAC concurred to forward an informal recommendation of approval for the Fire Impact Fee CIP to the City Commission. ITEM 6. OLD BUSINESS Director of Finance Rosenberry stated a conversation had been held with the City Manager as well as someone from the Montana Association of Realtors and the Gallatin Association of Realtors regarding the service area reports. She stated the entities had taken exception to the method of Impact Fee updating and she had encouraged them to participate in the public review process; she added that the Realtor Association members could apply to be members of the IFAC. Assistant Director Saunders added that the statute the realtors were referencing hadn’t even been adopted at the time Bozeman’s last impact fee studies had been adopted and noted that he had suggested they provide him with an example of what format they would like to see. Director of Finance Rosenberry stated she had gotten the impression that the Associations did not believe impact fees should be instituted at all. City Engineer Hixson added that if they could point out things that needed changed and there were justifiable reasons, the City would change those items. He asked if anyone had pointed out that currently people were only being charged 60% of the overall fees. Assistant Director Saunders responded it had mentioned. City Engineer Hixson stated he had a feeling that if the City had a contract with the other consultants than the one not chosen would voice similar complaints. ITEM 7. COMMITTEE COMMENTS Assistant Director Saunders noted the blast site had been an interesting exercise in reviewing what was there and what credit existed; he noted those discussions would be continued. City Engineer Hixson added that in general, water usage was reducing nationwide due to conservation efforts. Director of Finance Rosenberry added that the downtown TIF wanted to pay the additional money over the amount of the credits for the impact fees. 137 4 Impact Fee Advisory Committee Meeting– December 10, 2009 ITEM 8. ADJOURNMENT There being no further business to come before the Committee at this time, Chairperson Pro Tem Nickelson adjourned the meeting at 7:10 p.m. _____________________________________ _____________________________________ James Nickelson, Chairperson Pro Tem Chris Saunders, Assistant Planning Director Impact Fee Advisory Committee Dept of Planning & Community Development City of Bozeman City of Bozeman 138