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Home My WebLink AboutAdoption of Fire Impact Fee Capital Improvement Plan for FY 2015-2019 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Chris Kukulski, City Manager Anna Rosenberry, Administrative Services Director SUBJECT: Adoption of the Fire Impact Fee Fund Capital Improvement Plan (CIP) for FY15-19. AGENDA ITEM TYPE: Action MEETING DATE: December 9, 2013 RECOMMENDATION: Adopt the Fire Impact Fee Fund Capital Improvement Plan (CIP) for FY15-19. 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 14th to review and make recommendations for the planned expenditures of Fire Impact Fees. There was not a quorum of the committee, however, those present made suggestions and asked that the schedules move forward to the Commission. Item of Note: • Revenue estimates for Impact Fee collections should be updated from the amount budgeted in FY14. The attached schedule revenue estimates for FY15 show the 5-year average of collections (FY09-13), with a modest amount of annual growth projected in years 2016-2019. 47 • Based on the new Impact Fee Study that was adopted this past spring, both of the items listed need an outside source of funds for 25% of their costs. This source could be General Funds, grant revenues, or could be an additional voter-approved tax levy. Once this item is scheduled, we will need to identify this 25% source, totaling approximately $845,000. UNRESOLVED ISSUES: None. ALTERNATIVES: As suggested by the City Commission. If the Commission is does not wish to adopt this schedule tonight, it can be scheduled for approval on a later agenda. FISCAL EFFECTS: This step in the process has no fiscal effect. Once adopted, the Capital Improvements Plan becomes the basis of the City Manager’s Recommended Budget for FY15. Report compiled on: December 3, 2013 Attached: Draft Fire Impact Fee Fund CIP 48 Fire Impact Fee Capital Improvement PlanFinancial Summary Current YearFY14 FY15 FY16 FY17 FY18 FY19UnscheduledProjected Beginning Reserve Balance Dedicated to CIP 168,025$ 358,025$ 617,329$ 881,820$ 1,151,600$ 1,426,776$ ‐$ Plus: Impact Fee Revenues Dedicated to CIP 190,000$ 259,304$ 264,490$ 269,780$ 275,176$ 280,679$ ‐$ Less: Scheduled CIP Project Costs‐$ ‐$ ‐$ ‐$ ‐$ ‐$ (3,369,699)$ Projected Year‐End Cash Dedicated to CIP 358,025$ 617,329$ 881,820$ 1,151,600$ 1,426,776$ 1,707,456$ Assumptions Made for Revenue Estimates: Current YearFY14 FY15 FY16 FY17 FY18 FY19Estimated Annual Fire Impact Fee Revenues 190,000$ 254,220$ 259,304$ 264,490$ 269,780$ 275,176$ Estimated Annual Increase 0.0% 2% 2% 2% 2% 2%Total Estimated Revenues 190,000$ 259,304$ 264,490$ 269,780$ 275,176$ 280,679$ 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$ 259,304$ 264,490$ 269,780$ 275,176$ 280,679$ 4,000,0003,500,0003,000,0002,500,0002,000,0001,500,0001,000,000500,0000FY15 FY16 FY17 FY18 FY19 UnscheduledFire Impact Fee Projects 49 CIP PROJECT FUPROJ.DEPARTMENTPROJECT NAMEFY16UnscheduledFY15FY17FY18FY19Impact Fees FireFIF06FIRE IFFIRE STATION #4$3,900,000FIF07FIRE IFFIRE ENGINE, STATION #4$600,000Summary for Impact Fees Fire (2 items)Totals by year:$4,500,000FY15FY16FY17UnscheduledFY19FY1850 CIP Project Fund Impact Fees Fire PROJECT NUMBER FIF06 DEPARTMENT FIRE IF PROJECT NAME FIRE STATION #4 FY15 FY16 Unscheduled $3,900,000 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 75% Fire Impact Fees ($2,925,000), 25% other source ($975,000.) 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 FY19 51 CIP Project Fund Impact Fees Fire PROJECT NUMBER FIF07 DEPARTMENT FIRE IF PROJECT NAME FIRE ENGINE, STATION #4 FY15 FY16 Unscheduled $600,000 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 75% Fire Impact Fees ($450,000), 25% other source ($150,000). 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 FY19 52