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Home My WebLink AboutAdopt the Fire Impact Fee Fund within the Recommended CIP Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Chris Kukulski, City Manager Anna Rosenberry, Finance Director SUBJECT: Adoption of Parts of the Recommended Capital Improvements Plan (CIP) for FY2012-2016 – FIRE IMPACT FEE FUND Item Type: Consent MEETING DATE: January 3, 2011 RECOMMENDATION: Adopt the attached portion of the Capital Improvements Plan for FY2012-2016 for the Fire Impact Fee Fund BACKGROUND: On December 13, 2010, we presented and discussed the attached plan for capital projects paid for with Fire Impact Fees. No changes were made to these recommended schedules as a result of that meeting. Advisory Committee: The City’s Impact Fee Advisory Committee (IFAC) met on November 18th and November 23rd to develop and discuss these recommended schedules. The committee currently does not contain a quorum, so these recommendations were not formally voted on. FISCAL EFFECTS: This step in the process has no immediate fiscal effect – although scheduled impact fee projects may be eligible for impact fee credits under BMC 3.24.100. Once 83 adopted, the Capital Improvements Plan becomes the basis of the City Manager’s Recommended Budget for FY12. ALTERNATIVES: The attached plan can be modified, or not adopted at all. Report compiled on: December 22, 2010 Recommended - Fire Impact Fee CIP 84 Fire Impact FeeCapital Improvement PlanFinancial Summary Current YearFY11 FY12 FY13 FY14 FY15 FY16Projected Beginning Reserve Balance Dedicated to CIP‐$ ‐$ 1,850$ 3,719$ 7,492$ 11,342$ Plus: Impact Fee Revenues Dedicated to CIP 150,000$ 186,850$ 188,719$ 192,493$ 196,343$ 200,270$ Less: Scheduled CIP Project Costs (150,000)$ (185,000)$ (186,850)$ (188,719)$ (192,493)$ ‐$ Projected Year‐End Cash Dedicated to CIP‐$ 1,850$ 3,719$ 7,492$ 11,342$ 211,612$ Assumptions Made for Revenue Estimates: Current YearFY11 FY12 FY13 FY14 FY15 FY16Estimated Annual Fire Impact Fee Revenues 150,000$ 185,000$ 186,850$ 188,719$ 192,493$ 196,343$ Estimated Annual Increase 0.0% 1% 1% 2% 2% 2%Total Estimated Revenues 150,000$ 186,850$ 188,719$ 192,493$ 196,343$ 200,270$ Current Revenues Dedicated to CIP % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Plus: Increase Dedicated to Fire Capacity Expansion CIP 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Total % Dedicated to CIP 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%ProjectedProjectedTotal Estimated Revenues Dedicated to CIP 150,000$ 186,850$ 188,719$ 192,493$ 196,343$ 200,270$ 4,000,0003,500,0003,000,0002,500,0002,000,0001,500,0001,000,000500,0000FY12 FY13 FY14 FY15 FY16 UnscheduledFire Impact Fee Projects 85 CIP PROJECT FUNDPROJ.DEPARTMENTPROJECT NAMEFY12FY13FY14FY16UnscheduledFY15Impact Fees FireFIF06FIRE IFFIRE STATION #4$2,771,336FIF07FIRE IFFIRE ENGINE, STATION #4$598,363FIF08FIRE IFFIRE STATION #3, DEBT RETIREMENT$185,000$186,850$188,719$192,493Summary for Impact Fees Fire (3 items)Totals by year:$185,000 $186,850 $188,719 $192,493$3,369,699FY12FY13FY14FY15FY16Unscheduled86 CIP Project Fund Impact Fees Fire PROJECT NUMBER FIF06 DEPARTMENT FIRE IF PROJECT NAME FIRE STATION #4 FY12 FY13 FY14 FY15 FY16 Unscheduled $2,771,336 DESCRIPTION OF PROJECT This project is identified as a 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 ADVANTAGES OF APPROVAL 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. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED 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 New Replacement Equipment Project 87 CIP Project Fund Impact Fees Fire PROJECT NUMBER FIF07 DEPARTMENT FIRE IF PROJECT NAME FIRE ENGINE, STATION #4 FY12 FY13 FY14 FY15 FY16 Unscheduled $598,363 DESCRIPTION OF PROJECT 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 APPROVAL Purchase of this unit will adequately equip Station #4 for fire and other emergency responses. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED 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 New Replacement Equipment Project 88 CIP Project Fund Impact Fees Fire PROJECT NUMBER FIF08 DEPARTMENT FIRE IF PROJECT NAME FIRE STATION #3, DEBT RETIREMENT FY12 $185,000 FY13 $186,850 FY14 $188,719 FY15 $192,493 FY16 Unscheduled DESCRIPTION OF PROJECT 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 was used to borrow $890,000 to finish the project. 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 APPROVAL The General Fund will not be required to pay for capacity expanding costs of the Fire Station. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual Operating and Maintenance Costs: Currently supported in General Fund budget. 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. New Replacement Equipment Project 89