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Home My WebLink AboutAdopt the Fire Impact Fee Fund Capital Improvement Program Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Chris Kukulski, City Manager Anna Rosenberry, Finance Director SUBJECT: Adoption of the Fire Impact Fee Fund Capital Improvement Plan (CIP) for FY13-17 AGENDA ITEM TYPE: Consent MEETING DATE: December 19, 2011 RECOMMENDATION: Adoption of the Fire Impact Fee Fund Capital Improvement Plan (CIP) for FY13-17. BACKGROUND: Each year, the City Manager is required to prepare a 5 Year Capital Improvements Plan and submit it to the Commission by December 15th. On December 5th, the Commission held a policy discussion to review the proposed Fire Impact Fee Fund Capital Improvement Plan (CIP) for FY13-17. As a result of that review, the attached CIP is recommended for approval. UNRESOLVED ISSUES: None. ALTERNATIVES: As suggested by the City Commission. FISCAL EFFECTS: This step in the process has no fiscal effect. Once adopted, the Capital Improvements Plan becomes the basis of the City Manager’s Recommended Budget for FY13. Report compiled on: December 14, 2011 Attached: Fire Impact Fee Fund CIP 45 Fire Impact FeeCapital Improvement PlanFinancial SummaryCurrent YearFY12 FY13 FY14 FY15 FY16 FY17Projected Beginning Reserve Balance Dedicated to CIP155,000$ 156,850$ 33,700$ 222,419$ 414,911$ 611,254$ Plus: Impact Fee Revenues Dedicated to CIP186,850$ 186,850$ 188,719$ 192,493$ 196,343$ 200,270$ Less: Scheduled CIP Project Costs(185,000)$ (310,000)$ ‐$ ‐$ ‐$ ‐$ Projected Year‐End Cash Dedicated to CIP156,850$ 33,700$ 222,419$ 414,911$ 611,254$ 811,524$ Assumptions Made for Revenue Estimates:Current YearFY12FY13FY14FY15 FY16 FY17Estimated Annual Fire Impact Fee Revenues185,000$ 185,000$ 186,850$ 188,719$ 192,493$ 196,343$ Estimated Annual Increase0.0%1%1%2%2%2%Total Estimated Revenues185,000$ 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 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 CIP185,000$ 186,850$ 188,719$ 192,493$ 196,343$ 200,270$ 4,000,0003,500,0003,000,0002,500,0002,000,0001,500,0001,000,000500,0000FY13 FY14 FY15 FY16 FY17 UnscheduledFire Impact Fee Projects 146 PROJ.DEPARTMENTPROJECT NAMEFY13FY14FY16UnscheduledFY15RATINGFY17CIP PROJECT FUND:Impact Fees FireFIF08FIRE IFFIRE STATION #3, DEBT RETIREMENT$310,00050FIF06FIRE IFFIRE STATION #4$2,771,33630FIF07FIRE IFFIRE ENGINE, STATION #4$598,36330Summary for Impact Fees Fire (3 items)Totals by year:$310,000$3,369,699FY13FY14FY15FY16UnscheduledFY17247 CIP Project Fund Impact Fees Fire PROJECT NUMBER FIF06 DEPARTMENT FIRE IF PROJECT NAME FIRE STATION #4 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 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 Impact Fee Funds Project and Equipment Scoring TOTAL SCORE:30 FY17 REQUIRED - CAPITAL or DEBT SERVICE REQUIRED - USEFUL LIFE 10+ YEARS REQUIRED - CAPACITY EXPANDING BENEFITS TO NEW DEVELOPMENT: (Up to 20 pts)20 DIRECT BENEFITS: (Up to 10 pts)5 FUNDING CERTAINTY: (Up to 10 pts)5 COMMISSION WORK PLAN PRIORITY: (Up to 10 pts)0 3 48 CIP Project Fund Impact Fees Fire PROJECT NUMBER FIF07 DEPARTMENT FIRE IF PROJECT NAME FIRE ENGINE, STATION #4 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 Impact Fee Funds Project and Equipment Scoring TOTAL SCORE:30 FY17 REQUIRED - CAPITAL or DEBT SERVICE REQUIRED - USEFUL LIFE 10+ YEARS REQUIRED - CAPACITY EXPANDING BENEFITS TO NEW DEVELOPMENT: (Up to 20 pts)20 DIRECT BENEFITS: (Up to 10 pts)5 FUNDING CERTAINTY: (Up to 10 pts)5 COMMISSION WORK PLAN PRIORITY: (Up to 10 pts)0 4 49 CIP Project Fund Impact Fees Fire PROJECT NUMBER FIF08 DEPARTMENT FIRE IF PROJECT NAME FIRE STATION #3, DEBT RETIREMENT FY13 $310,000 FY14 FY15 FY16 Unscheduled DESCRIPTION OF PROJECT At the time of construction of Fire Station #3, 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. Since February 2010, debt payments have been made, according to the terms of the loan. We have also been making extra principal payments when Fire Impact Fee collections are higher than expected. The goal is to retire this debt as soon as possible. At the end of Fiscal Year 2011, the balance owing on the loan was $483,500, with a variable annual interest rate of 1.95% 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 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 Impact Fee Funds Project and Equipment Scoring TOTAL SCORE:50 FY17 REQUIRED - CAPITAL or DEBT SERVICE REQUIRED - USEFUL LIFE 10+ YEARS REQUIRED - CAPACITY EXPANDING BENEFITS TO NEW DEVELOPMENT: (Up to 20 pts)20 DIRECT BENEFITS: (Up to 10 pts)10 FUNDING CERTAINTY: (Up to 10 pts)10 COMMISSION WORK PLAN PRIORITY: (Up to 10 pts)10 5 50