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Home My WebLink AboutAmendment to the Wastewater Impact Fee CIP.pdf Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Chris Saunders Tim McHarg, Director Chris Kukulski, City Manager SUBJECT: Consider amendment to the Wastewater Impact Fee Capital Improvement Program to add a sewer trunk underlying Fowler Avenue from approximately W. Main Street to Garfield Street. MEETING DATE: March 21, 2011 AGENDA ITEM TYPE: Action. RECOMMENDATION: Move to approve an amendment to include on the FY11 Wastewater impact fee capital improvement listing a sewer trunk underlying Fowler Avenue from approximately W. Main Street to Garfield Street in the amount of $224,616. BACKGROUND: The City has adopted wastewater impact fees to help provide for additional capacity in the wastewater collection and treatment system to provide service to new development within the community. The fees are spent to expand the Water Reclamation Facility, install collection piping, and take related actions to increase capacity. For further information please see Chapter 3.24, Impact Fees, in the Bozeman Municipal Code. The line underlying the alignment of Fowler Avenue is a major sewer trunk and provides collection of sewage from a large drainage area on the south and west of the City. The diameter of the pipe is 21 inch, the minimum size sewer main for installation in Bozeman is 8 inch diameter. The pipe diameter of 21 inches in that portion of the Fowler alignment is specified in the Wastewater Facility Plan. The adjacent commercial development, Bozeman Gateway does not require larger than an 8 inch diameter sewer to meet their project related needs. The City has established certain criteria which must be satisfied before expending impact fees. Included in those criteria is that a project must be included on the City’s impact fee capital improvement list and funded on that list. A request has been received to include a sewer trunk underlying Fowler Avenue from approximately W. Main Street to Garfield Street on the Wastewater CIP. As noted above, the size called for through the Wastewater Facility Plan is considerably larger than the minimum size sewer main. The proportionate diameter between the two is 92% allocated to greater than the minimum size pipe. The additional size allows for the larger pipe to serve drainage basin CC as shown on Figure 6-4 of the Wastewater Facility Plan. With these 311 characteristics it appears that the oversizing of the sewer main will provide substantial benefit beyond the adjacent development. The exact cost of the work to complete the pipe installation beyond the local service portion is known at $224,615.61. Examples of similar work funded through impact fees include oversizing of a sewer main in Cottonwood Avenue. On February 14, 2011 the City Commission directed Staff to prepare and notice a public hearing to consider this request to amend the CIP. The notice has been correctly published and the Commission may consider the matter at the March 21, 2011 City Commission meeting. Supporting material for the costs for this item was provided to the Staff and Commission earlier and are not duplicated here. Materials may be found through the City website at http://www.bozeman.net/Business/Document-Center. Select the Agendas and Packets (2001- 2011) item under the heading for Commission Meetings. Materials are located under the heading of Mitchell Impact Fee appeal on the January 10, 2011 and February 7, 2011 City Commission meetings and is available for review with the agenda packet for that date. A summary by the applicant is attached, see item 6 on the Mitchell Development Group sheet. The City Engineer’s staff has reviewed the provided costs and has found them reasonable and appropriate to the work performed for the pipe installation. UNRESOLVED ISSUES: Should the CIP be amended as requested? ALTERNATIVES: 1) Amend the CIP as requested 2) Do not amend the CIP FISCAL EFFECTS: This item will commit the City to funding approximately $224,616 from the Wastewater Impact Fee account. There are sufficient funds within that account to cover this commitment. Because all collections of Wastewater Impact Fees in the five years of the CIP are dedicated to paying for the Water Reclamation Facility, award of the proposed impact fee credit request will decrease the amount of Impact Fees available for the plant (construction and/or debt repayment.) The result would be to extend the period of time it takes for the Wastewater Utility to re-coup the capacity expanding costs from the Impact Fee Fund. Attachments: Amended CIP listing sheet and summary sheets Mitchell Development Group, LLC cost summary sheet Report compiled on: March 7, 2011 312 Wastewater Impact Fee*** PROPOSED AMENDMENT***Capital Improvement PlanFinancial SummaryCurrent YearFY11FY12FY13 FY14 FY15 FY16Projected Beginning Reserve Balance Dedicated to CIP‐$ ‐$ ‐$ ‐$ ‐$ ‐$ Plus: Impact Fee Revenues Dedicated to CIP400,000$ 404,000$ 408,040$ 416,201$ 424,525$ 433,015$ Less: Impact Fee Credits: Mitchell Appeal(224,616)$ Less: Scheduled CIP Project Costs(175,384)$ (404,000)$ (408,040)$ (416,201)$ (424,525)$ (433,015)$ Projected Year‐End Cash Dedicated to CIP‐$ ‐$ ‐$ ‐$ ‐$ 0.00$ Assumptions Made for Revenue Estimates:Current YearFY11FY12FY13FY14 FY15 FY16Estimated Annual Wastewater Impact Fee Revenues400,000$ 400,000$ 404,000$ 408,040$ 416,201$ 424,525$ Estimated Annual Increase0.0%1%1%2%2%2%Total Estimated Revenues400,000$ 404,000$ 408,040$ 416,201$ 424,525$ 433,015$ Current Revenues Dedicated to CIP %100.0%100.0% 100.0% 100.0% 100.0% 100.0% Plus: Increase Dedicated to Wastewater Capacity Expansion CIP0.0%0.0%0.0%0.0% 0.0%0.0% Total % Dedicated to CIP100.0%100.0% 100.0% 100.0% 100.0% 100.0%ProjectedProjectedTotal Estimated Revenues Dedicated to CIP400,000$ 404,000$ 408,040$ 416,201$ 424,525$ 433,015$ 6,000,0005,000,0004,000,0003,000,0002,000,0001,000,0000FY12 FY13 FY14 FY15 FY16 UnscheduledWastewater Impact Fee Projects 313 CIP PROJECT FUNDPROJ.DEPARTMENPROJECT NAMEFY12FY13FY14FY16UnscheduledFY15FY11Impact Fees WastewaterWW28WRF PLANTDESIGN PHASE II ‐ WRF PLANT IMPROVEMENTS$2,615,000WWIF05WWATER IFHOSPITAL TRUNK LINE: HAGGERTY TO KAGY$1,062,000WWIF11WWATER IFREPLACE FRONT STREET: TAMARACK/ROUSE$1,800,000WWIF12WWATER IFGRAF STREET EXTENSION$50,000WWIF14WWATER IFWRF PHASE I DEBT RETIREMENT$404,000$408,040$416,201$424,525$433,015WWIF15WWATER IFFOWLER TRUNK SEWER$224,616Summary for Impact Fees Wastewater (6 items)Totals by year:$404,000 $408,040 $416,201 $424,525$433,015$5,527,000FY12FY13FY14FY15FY16UnscheduledFY11$224,616314 CIP Project Fund Impact Fees Wastewater PROJECT NUMBER WWIF15 DEPARTMENT WWATER IF PROJECT NAME FOWLER TRUNK SEWER FY12 FY13 FY14 FY15 FY16 Unscheduled DESCRIPTION OF PROJECT Installation of the Fowler Trunk Sewer project, as described in the Mitchell Development Group Impact Fee Appeal ALTERNATIVES CONSIDERED ADVANTAGES OF APPROVAL ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED FUNDING SOURCES Wastewater Impact Fees New Replacement Equipment Project AMEND FY11 $224,616 315 316