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Home My WebLink AboutAdoption of Fire Impact Fee Fund Capital Improvement Plan for FY 14-18 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 FY14-18. AGENDA ITEM TYPE: Action MEETING DATE: December 10, 2012 RECOMMENDATION: Adoption of the Fire Impact Fee Fund Capital Improvement Plan (CIP) for FY14-18. 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. The City’s Impact Fee Advisory Committee (IFAC) met on November 29th to review and make recommendations for the planned expenditures of Fire Impact Fees. The Committee forwards the attached schedules for approval, with the following notations: • It is estimated, given current growth, that FIF06 - Fire Station #4 and FIF07 - Fire Engine #4 will not be built/acquired between FY14-18, so both items are listed as “unscheduled”. • The Funding Source for both Fire Station #4 and Fire Engine #4 are the subject of discussion in the Fire Impact Fee Study, which is under consideration by the Commission right now. As such, we noted on each item sheet that their funding should be consistent with the policy adopted in the Study. o Given some past discussion about the allocation of Impact Fees to future stations, the Committee was in favor of a 75% Impact Fee share for Stations 4-7, as 404 opposed to paying for all of Station 4 from outside sources, and 100% of stations 5-7 from impact fees. • In general, the amount of Impact Fees collected going forward could be greatly impacted by the results and implementation of the adopted Impact Fee Study. Because the amount of impact fees collected each year reflect the individual nature of the projects built around town, it is very difficult to predict revenues at this point. The CIP schedules reflect revenues at their current levels. Next year, we will be able to adjust the schedules to better reflect any adopted Impact Fee Study ramifications. UNRESOLVED ISSUES: None. ALTERNATIVES: As suggested by the City Commission. If the Commission is does not wish to adopt this schedule tonight, it can be scheduled for approval on a later agenda. 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 FY14. Report compiled on: November 30, 2012 Attached: Fire Capital and Equipment Fund CIP 405 Fire Impact Fee Capital Improvement PlanFinancial Summary Current YearFY13 FY14 FY15 FY16 FY17 FY18UnscheduledProjected Beginning Reserve Balance Dedicated to CIP 206,000$ 86,000$ 277,900$ 471,719$ 669,414$ 871,064$ ‐$ Plus: Impact Fee Revenues Dedicated to CIP 190,000$ 191,900$ 193,819$ 197,695$ 201,649$ 205,682$ ‐$ Less: Scheduled CIP Project Costs (310,000)$ ‐$ ‐$ ‐$ ‐$ ‐$ (3,369,699)$ Projected Year‐End Cash Dedicated to CIP 86,000$ 277,900$ 471,719$ 669,414$ 871,064$ 1,076,746$ Assumptions Made for Revenue Estimates: Current YearFY13 FY14 FY15 FY16 FY17 FY18Estimated Annual Fire Impact Fee Revenues 190,000$ 190,000$ 191,900$ 193,819$ 197,695$ 201,649$ Estimated Annual Increase 0.0% 1% 1% 2% 2% 2%Total Estimated Revenues 190,000$ 191,900$ 193,819$ 197,695$ 201,649$ 205,682$ 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 190,000$ 191,900$ 193,819$ 197,695$ 201,649$ 205,682$ 4,000,0003,500,0003,000,0002,500,0002,000,0001,500,0001,000,000500,0000FY14 FY15 FY16 FY17 FY18 UnscheduledFire Impact Fee Projects 406 CIP PROJECT FUNDPROJ.DEPARTMENPROJECT NAMEFY14FY16UnscheduledFY15FY17FY18Impact Fees FireFIF06FIRE IFFIRE STATION #4$2,771,336FIF07FIRE IFFIRE ENGINE, STATION #4$598,363Summary for Impact Fees Fire (2 items)Totals by year:$3,369,699FY14FY15FY16UnscheduledFY18FY17407 CIP Project Fund Impact Fees Fire PROJECT NUMBER FIF06 DEPARTMENT FIRE IF PROJECT NAME FIRE STATION #4 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 longer-than-historical response times and high life and fire losses; acquire fire district's fixed facilities as annexation by the City continues. 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 area station 4 would be placed in. Current response times to the areas South of Kagy are approaching being out of our desired response time of 6 minutes or less 90% of the time. 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. This Funding Source should reflect the adopted Impact Fee Study, which is currently under review. 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 FY18 408 CIP Project Fund Impact Fees Fire PROJECT NUMBER FIF07 DEPARTMENT FIRE IF PROJECT NAME FIRE ENGINE, STATION #4 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. This Funding Source should reflect the adopted Impact Fee Study, which is currently under review. 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 FY18 409