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HomeMy WebLinkAbout2-20-07 1 Commission Memorandum REPORT TO: Honorable Mayor and City Commissioners FROM: Anna Rosenberry, Finance Director Chris Kukulski, City Manager SUBJECT: Update of CIP Schedules for FY2008-2012 for: Water Fund Water Impact Fees Fire Impact Fees MEETING DATE: February 20, 2007 BACKGROUND: We continue our update of the FY2008-FY2012 Capital Improvements Plan with review of the Water Fund, Water Impact Fee, and Fire Impact Fee sections tonight. Developing a Capital Improvements Plan is, first and foremost, a planning process - adopting any CIP does not provide budget appropriation authority. Items must be included in a budget resolution before they are funded. Once adopted, it is our intent that the FY2008 items become the basis for FY2008 budget within each of these funds. Revenue Estimates: For the purpose of this CIP, we continue with the current year revenue as an estimate for future years, inflated by a growth factor of 4% each year. Anticipated changes in Water Rates are outlined on the Revenue sheet in the Financial Summaries for the Water fund. The City is currently studying all Utility rates and Impact Fee rate calculations, and any rate changes are planned for adoption in late spring or early summer. If changes in rates are 497 2 made, we will update revenue information for the FY2009-2013 CIP that will be developed this fall. Other Funding Sources: The Fire Impact Fee schedule anticipates bonding against future impact fee revenues in order to build and equip Station #4 in FY2011. The Water Fund anticipates using bond funds and Cash-in-Lieu of Water Rights to pay for projects during this planning period. Project Cost Estimates: All project and equipment costs are estimates that will not be finalized until the City accepts a qualified bid for that specific project or equipment. We have also estimated the amount of costs that would be eligible for Impact Fees (capacity expansion.) We have used the best information available to us at this time, often based on the City Engineer’s extensive knowledge of recent street construction projects. Deficit Balances: These schedules show some planned deficits during the course of the 5-year period, recovering to a positive balance by year five. In general, the City approves CIP plans with deficit funding years, as long as the deficit is expected to be recovered by the end of year five of the plan. Advisory Committee: The Impact Fee Advisory Committee reviewed the Water and Fire Impact Fee Schedules and Projects Lists on January 25th. They meet again on February 15th to provide their comments to the Commission. Those comments will be brought forward during the staff presentation for Water and Fire Impact Fees tonight. RECOMMENDATION: Review the attached information and approve, with any modifications. FISCAL EFFECTS: Approving these schedules does not provide appropriation authority. Once approved by the City Commission, the FY08 projects and equipment will be incorporated into the FY08 City Manager’s Recommended Budget in May, which begins the budget appropriation process. The remaining plan years serve as a work plan to guide staff, and will be reviewed and revised in the coming fall. ALTERNATIVES: As suggested by the Commission. Respectfully submitted, 498 3 Anna Rosenberry, Finance Director Chris Kukulski, City Manager Report compiled on February 14, 2007 Attachments: Financial Summaries Project Sheets Project Map 499 WATER FUNDSUMMARY OF CIP BALANCES, REVENUES AND EXPENDITURESCIP FY2008-2012Current Year ----------------------------------------Projected----------------------------------------FY07 FY08 FY09 FY10 FY11 FY12Projected Beginning CIP Balance 2,000,000$ 2,115,500$ 2,243,880$ 3,082,630$ 5,410,293$ 2,375,535$ Add: Revenues Dedicated to CIP 1,768,000 2,236,880 2,788,750 3,451,410 7,762,036 10,100,620 Less: Scheduled CIP Expenditures 1,652,500 2,108,500 1,950,000 1,123,746 10,796,794 10,090,000 __________ __________ __________ __________ __________ __________Projected Year-End CIP Balance 2,115,500$ 2,243,880$ 3,082,630$ 5,410,293$ 2,375,535$ 2,386,155$ 500 WATER FUNDRATE CHANGES & PROJECTION OF CUSTOMER GROWTHCurrent Year ----------------------------------------Projected----------------------------------------FY07 FY08 FY09 FY10 FY11 FY12Rate Changes/Customer GrowthInflationary Adjustment 3.00 4.00 4.00 4.00 4.00 4.00 Increase in Rates Dedicated to CIP 7.00 4.00 4.00 4.00 - - ______ ______ ______ ______ ______ ______Total Current Year Rate Changes 10.00 8.00 8.00 8.00 4.00 4.00 Customer Growth Rate 4.00 5.00 5.00 5.00 5.00 5.00 ______ ______ ______ ______ ______ ______Total Percentage Increase in Base Year Revenues 14.00 13.00 13.00 13.00 9.00 9.00 Percentage of Rates Dedicated to CIP:From Previous Year(s) 27.00 34.00 38.00 42.00 46.00 46.00 Current Year 7.00 4.00 4.00 4.00 - - ______ ______ ______ ______ ______ ______Total Percentage of Rates Dedicated to CIP 34.00 38.00 42.00 46.00 46.00 46.00 501 WATER FUNDREVENUE PROJECTIONSCurrent Year ----------------------------------------Projected----------------------------------------FY07 FY08 FY09 FY10 FY11 FY12Base Revenues for Projections 4,905,660$ 5,200,000$ 5,876,000$ 6,639,880$ 7,503,064$ 8,178,340$ Total Projected Current Year Revenues 5,200,000$ 5,876,000$ 6,639,880$ 7,503,064$ 8,178,340$ 8,914,391$ Current Year Revenues Dedicated to CIP 1,768,000$ 2,232,880$ 2,788,750$ 3,451,410$ 3,762,036$ 4,100,620$ Add: Grants Bond Issues4,000,000 6,000,000 INTERCAP Cash In Lieu of Water Rights 4,000 - __________ __________ __________ __________ __________ __________Total Revenues Dedicated to CIP 1,768,000$ 2,236,880$ 2,788,750$ 3,451,410$ 7,762,036$ 10,100,620$ 502 CITY OF BOZEMANCAPITAL IMPROVEMENTS PROGRAMWATER FUND PROJECTSItem -----------Projected Costs by Fiscal Year----------- Not # Project Title Department/Division Category FY08 FY09 FY10 FY11 FY12 Total ScheduledPW01 SHOPS COMPLEX - PHASE I WATER OPERATIONS Project 1,507,500 1,507,500 W03 BI-ANNUAL ENGINEERING DESIGN WATER OPERATIONS Project 90,000 90,000 90,000 270,000 W04 WATER BI-ANNUAL UPGRADES WATER OPERATIONS Project 750,000 750,000 1,500,000 W06 3/4 TON 4X4 PICKUP WATER PLANT Equipment 35,000 35,000 W07 22 MG MEMBRANE WATER TREATMENT PLANT WATER PLANT Project 133,000 1,000,000 1,000,000 10,000,000 10,000,000 22,133,000 W08 RAW WATER INTAKE IMPROVEMENTS WATER PLANT Project 200,000 200,000 W09 AUTOMATED WATER FILL STATION WATER OPERATIONS Project- 430,000 W12 1 TON TRUCK W/HOIST WATER OPERATIONS Equipment 40,000 46,794 86,794 W13 BACKHOE WATER OPERATIONS Equipment 99,000 99,000 W14 SOURDOUGH TANK REPARIS WATER PLANT Project 200,000 200,000 W15 METER VAN WATER OPERATIONS Equipment 33,746 WIF02 SOURDOUGH CREEK WATER RIGHTS WATER PLANT Project 4,000 4,000 ________ ________ ________ ________ ________ ________ ________Total2,108,500$ 1,950,000$ 1,123,746$ 10,796,794$ 10,090,000$ 26,035,294$ 430,000$ 503 Project Name: Shops Complex – Phase I Estimated Cost: $4,995,000 – Total, Phase I Project Number: Public Works – PW01 Date Scheduled: FY08 Purpose: □ New ■ Replacement ■ Facility □ Equipment Project Description: This project consists of building a new Water/Wastewater operations building at the Wastewater Treatment Plant. This will be designed and built to be the start of a new shops complex that will be built in phases. The present shops complex is built in a residential neighborhood and it is estimated to have twice the employees working out of the complex than what it was designed for. The present complex has high traffic loads, and with the public water fill station there and driving and walking in the complex is dangerous at high traffic periods. Constructing a new complex in phases, with phase one being a new facility for water and wastewater, will give additional space for the other divisions until the final phase can be constructed in FY 10. This phase of the complex will provide office, classroom, and locker facilities, as well as shop and garage area large enough to place the majority of the divisions’ equipment under roof. Alternatives Considered: Build a smaller satellite facility for high traffic volume operations; leave low traffic operations at existing facility. Advantages of Approving this Project: It has been determined there is adequate room at the WWTP for a shop complex, not within the entryway overlay corridor. This will allow all land at the Mandeville Farm to be utilized for an industrial subdivision. Constructing the complex in phases will allow additional time to secure funding for the final phase, eliminate a majority of traffic at the current site, eliminate the public water fill station (will be located at the new site), and free up space in the current complex to alleviate crowding for other divisions. With utilizing the WWTP for the Shops Complex selection of proper site, this move will eliminate using residential streets for day-to-day high volume traffic. This will give more space at the existing complex and make it much safer. Possibly build a new water fill station with it. Estimated New Recurring Costs: Annual Operating & Maintenance Costs: Unknown at this point. Pre-design work is being done in FY07 that should give us a good basis for an estimate of annual operating and maintenance costs for this facility. Funding Sources: Phase I Total = $4,995,000 30% Water Utility Fund = $1,507,500 30% Wastewater Utility Fund = $1,507,500 20% Water Impact Fees = $990,000 20% Wastewater Impact Fees = $990,000 City of Bozeman Capital Improvements Plan FY08-12 504 Photo #1 #1 – Existing Shops Complex - Located at 814 N Bozeman Avenue. Photo #2 #2 – Proposed Future Site on Wastewater Treatment Plant Property - Located at 255 Moss Bridge Road. Exact location of the Shop on this site would be determined so that we get the best use as both BNR Treatment Plant and Shop Location. City of Bozeman Capital Improvements Plan FY08-12 505 Project Name: Bi-Annual Engineering Design Estimated Cost: $90,000 per year Project Number: Water Operations – W03 Date Scheduled: FY08, FY10 & FY12 Purpose: □ New ■ Replacement ■ Facility □ Equipment Project Description: This item provides for design work to be completed every-other year, in anticipation of the Bi-Annual System Upgrades. We alternate funding of design work and construction work within the CIP. As the Water Operations Division televises (views) the existing system, maintenance projects become apparent. Given our knowledge of system conditions today, the following projects are candidates for design funding and were identified in the Facility Plan: 1. Lamme Street. 2. South 8th Avenue As annual televising continues, other more-urgent projects may be identified and designed under this project heading. Alternatives Considered: Advantages of Approving this Project: Provides for the design of necessary water system maintenance work. Estimated New Future Recurring Costs: None Funding Sources: 100% Water Utility Fund City of Bozeman Capital Improvements Plan FY08-12 506 Project Name: Annual Water Upgrades Estimated Cost: $750,000 per year Project Number: Water Operations – W04 Date Scheduled: FY09 & FY11 Purpose: □ New ■ Replacement ■ Facility □ Equipment Project Description: This item provides for construction to be completed every-other year, after the Bi-Annual Engineering Design. We alternate funding of design work and construction work within the CIP. As the Water Operations Division televises (views) the existing system, maintenance projects become apparent. Given our knowledge of system conditions today, the following projects are candidates for construction funding and were identified in the Facility Plan: 1. Lamme Street Water Main 2. South 8th Avenue Water Main As annual televising continues, other more-urgent projects may be identified, designed, and constructed under this project heading. Alternatives Considered: Advantages of Approving this Project: Provides for the construction of necessary water system maintenance work. Estimated New Future Recurring Costs: Annual Operating & Maintenance Costs: Incremental increases in general maintenance costs. Current cost estimate of $12,500 per water-main mile maintained annually. Funding Sources: 100% Water Utility Fund City of Bozeman Capital Improvements Plan FY08-12 507 Project Name: ¾ Ton 4 x 4 Flex Fuel Truck Estimated Cost: $35,000 Project Number: Water Plant – W06 Date Scheduled: FY08 Purpose: □ New ■ Replacement □ Facility ■ Equipment Project Description: This vehicle replaces current asset #25-30 a 1997 Chevy 4x4, which has over 85,000 miles on it. The truck is used for plowing snow at the Water Plant and for work done in the City’s watershed. When replaced in FY2008, vehicle mileage is expected to be 125,000 miles. We will be purchasing a Flex Fuel vehicle with the necessary snow plow and tool boxes. Alternatives Considered: Continue to use older vehicle, which is becoming unreliable and costly to maintain. Lease. Advantages of Approving this Project: Increased reliability and safety for staff and water plant operations. Lower emissions and higher fuel economy with flex fuel vehicle. Estimated New Future Recurring Costs: Operating and repair costs are expected to be lower than the existing vehicle. Funding Sources: 100% Water Utility Fund City of Bozeman Capital Improvements Plan FY08-12 508 Project Name: 22MG Membrane Water Treatment Plant Estimated Cost: $33.2 Million Total Project Number: Water Plant – W07 Date Scheduled: FY10-FY13 Purpose: □ New ■ Replacement ■ Facility □ Equipment Project Description: This new Membrane Filter Treatment Plant is the preferred water treatment alternative identified in the adopted Water Facility Plan. It is recommended to be built with an initial configuration providing 22MGD of water treatment capacity, with future expansion capability to 36MGD. This addresses both the 10- and 20- year capacity requirement forecast for the City’s water treatment system. The current 15MGD WTP equipment is nearing the end of its useful life; the plant’s direct filtration treatment process, while effective most of the year, becomes only marginally effective during spring runoff or flash thunderstorms in the watershed, dropping plant efficiency as low as 70%; and, rapid population growth and expansion of city water services is increasing demand for water. The current plant capacity may be exceeded in as few as five years. The New Plant will be sited at the existing WTP site in an 18,800 sf building located directly north of the existing plant. It will include gravity thickeners, a drying bed building with dual vacuum-assisted beds, triplex micro strainers and sludge pumps. All these new facilities will easily fit on the approximately 33-acre parcel of City-owned property on the site. This new plant will be able to be constructed with minimal disruption to the existing plant; the existing plant will operate through construction and be demolished after the new plant is online. A 12-month pilot testing phase will need to be completed prior to design finalization. Alternatives Considered: The Water Facility Plan considered numerous alternatives for water treatment. This was identified as the preferred alternative in the adopted plan. Advantages of Approving this Project: Planning for increased water supply to meet growing demands and to replace existing equipment that is at the end of its useful life. Estimated New Recurring Costs: This plant is estimated to require two new operators, in addition to existing plant staff. Annual O&M costs = est. $1,735,901 (including existing staff plus new plant expenses). Funding Sources: FY10 Pilot Testing = $200,000 Total 67% Water Utility Fund = $133,000 33% Water Impact Fees = $67,000 FY11 Design = $3,000,000 Total 67% Water Utility Fund = $2,000,000 33% Water Impact Fees = $1,000,000 FY12 & 13 Construction = $30,000,000 Total 67% Water Utility Fund = $20,000,000 33% Water Impact Fees = $10,000,000 City of Bozeman Capital Improvements Plan FY08-12 509 Project Name: Raw Water Intake Improvements Estimated Cost: $200,000 Project Number: Water Plant – W08 Date Scheduled: FY09 Purpose: □ New ■ Replacement ■ Facility □ Equipment Project Description: These improvements are designed to mitigate the freezing and debris problems encountered at the Sourdough Creek Raw Water Intake location in the winter months. These improvements will also ensure accurate flow measurements at the Parshall flume downstream of the screening building. Alternatives Considered: The Water Facility Plan considered numerous alternatives for water treatment. This was identified as the preferred alternative in the adopted plan. Advantages of Approving this Project: Planning for increased water supply to meet growing demands and to replace existing equipment that is at the end of its useful life. Estimated New Recurring Costs: Unknown at this time. Once the specific improvements are designed, ongoing operations costs can be estimated. Funding Sources: 100% Water Utility Fund City of Bozeman Capital Improvements Plan FY08-12 510 Project Name: Automated Water Fill Station Estimated Cost: $430,000 Project Number: Water Operations – W09 Date Scheduled: Unscheduled Purpose: □ New ■ Replacement ■ Facility □ Equipment Project Description: Replacement of the existing water fill station, which is operated on an “honor system” for water sales. People using cisterns, constructing roads or borings utilize this method to purchase necessary water from the city. This recommendation includes a heated building, automated meter, and 24/7 operation of the fill station. The deficiencies of the existing fill station were noted and a replacement was recommended in the adopted Water Facility Plan. Alternatives Considered: Continue with existing system, susceptible to theft. Advantages of Approving this Project: Ensures proper payment for quantity of water sold. Estimated New Recurring Costs: Unknown at this time. Will be better known when building is designed and automated meter system selected. Funding Sources: 100% Water Utility Fund City of Bozeman Capital Improvements Plan FY08-12 511 Project Name: 1 Ton Truck With Hoist (2) – Flex Fuel Estimated Cost: $40,000 in FY08 and $46,749 in FY11 Project Number: Water Operations – W12 Date Scheduled: FY08 & FY11 Purpose: □ New ■ Replacement □ Facility ■ Equipment Project Description: FY08: This request replaces asset # 2529, a 1997 Dodge 1-ton with 46,964 miles with a 1-ton truck with a hoist. This truck is used daily in both water and sewer operations to transport personnel and equipment. Average yearly mileage is 7,000 +. If the truck is replaced in FY08, the approximate mileage will be 77,000. FY11: This request replaces asset # 2914, a 2001 Dodge 1-ton with 22,374 miles with a 1-ton truck with a hoist. This truck is used daily in both water and sewer operations to transport personnel and equipment. Average yearly mileage is 7,000 +. If the truck is replaced in FY 2011, the approximate mileage will be 70,000. Flex Fuel Vehicles will be purchased. Alternatives Considered: Keep the trucks and spend maintenance dollars to have truck serviceable. Advantages of Approving this Project: Advantages to the City for approving this request include savings on fuel. The new vehicles will improve safety of crews, there would be lower repair costs and it would help maintain current operations levels. Estimated New Recurring Costs: Funding Sources: 100% Water Utility Fund City of Bozeman Capital Improvements Plan FY08-12 512 Project Name: Backhoe Estimated Cost: $99,000 Project Number: Water Operations – W13 Date Scheduled: FY08 Purpose: □ New ■ Replacement □ Facility ■ Equipment Project Description: This request is to purchase a backhoe loader rubber tire to replace asset #1772, 1995 John Deere with 4263 hours. This machine is used to repair, install and maintain water and sanitary sewer services and mains. It is used on a daily basis to excavate trenches and holes in the public right-of-way as well as on private property in most new service repairs. Alternatives Considered: Increased cost for repairs and down time. Advantages of Approving this Project: A new backhoe will allow us to operate at our current level of service. We will trade in hoe # 1872, our existing spare (emergency) 1993 John Deer. Estimated New Recurring Costs: Funding Sources: 100% Water Utility Fund City of Bozeman Capital Improvements Plan FY08-12 513 Project Name: Sourdough Tank Repairs Estimated Cost: $200,000 Project Number: Water Plant – W14 Date Scheduled: FY08 Purpose: □ New ■ Replacement ■ Facility □ Equipment Project Description: During the course of the Water Facility Plan study, the consultant documented problems and noted the repairs needed on the existing Sourdough Water Tank. They recommended: 1. Repair cracking concrete around rim of roof. 2. Replace rusting and deteriorating inside ladder. 3. Abandon old bypass and inlet box. 4. Abandon control valve with leaking valve stem. 5. Consider adding xeri-scape to limit vegetation around tank. 6. Fix drainage issue across Sourdough Road. Consider adding culvert under the road. All of these items will be completed under this CIP item. Alternatives Considered: Further deterioration of the facility. Advantages of Approving this Project: The Water Tank will be properly repaired to extend its useful life as long as possible. Estimated New Recurring Costs: None Funding Sources: 100% Water Utility Fund City of Bozeman Capital Improvements Plan FY08-12 514 Project Name: Meter Van Estimated Cost: $33,746 Project Number: Water Operations – W15 Date Scheduled: FY10 Purpose: □ New ■ Replacement □ Facility ■ Equipment Project Description: Meter Van is used daily in meter reading and installations. This van gets high mileage due to the fact it travels every street in our city once a month taking radio reads. Current mileage is 50,973. Alternatives Considered: Increased cost for repairs and down time. Advantages of Approving this Project: Minimize down time and increase safety in operation and daily duties. Estimated New Recurring Costs: Funding Sources: 100% Water Utility Fund City of Bozeman Capital Improvements Plan FY08-12 515 Project Name: Sourdough Creek Drainage Water Rights Estimated Cost: $20,000 Project Number: Water Impact Fees – WIF02 Date Scheduled: FY08 Purpose: ■ New □ Replacement ■ Facility □ Equipment Project Description: The City needs to pursue the legal steps necessary to perfect its existing claim for water and water storage in the Sourdough Creek Drainage. The City currently has storage rights to approximately 1,955 Million Gallons per Year, with a reservation for an additional 931 MGY, worth of storage rights on Sourdough Creek. These rights were historically allocated based on available storage in Mystic Lake. The Mystic Lake Dam, however, has been breached, rendering these storage rights essentially useless until a new dam is constructed on Sourdough Creek to replace the Mystic Lake Dam. Because this volume of storage right is very significant, the City intends to utilize these rights to meet future water needs. Alternatives Considered: The Facility Plan explores many options for additional future water in Section 3.C. Advantages of Approving this Project: Additional water is secured to meet future resident needs. Estimated New Recurring Costs: Unknown at this time. Funding Sources: 80% Water Impact Fees = $16,000 20% Water Utility Fund – Cash in Lieu of Water Rights = $4,000 City of Bozeman Capital Improvements Plan FY08-12 516 WATER IMPACT FEE FUNDSUMMARY OF CIP BALANCES, REVENUES AND EXPENDITURESCIP FY2008-2012Current Year-------------------------------------Projected----------------------------------------FY07FY 08FY 09FY 10FY 11 FY 12Projected Beginning Restricted Cash Balance3,900,000$ 5,649,077$ 5,615,077$ 6,975,637$ 8,410,619$ 5,423,001$ Add: Revenues Dedicated to CIP1,789,000 1,789,000 1,860,560 1,934,982 2,012,382 2,092,877 Less: Total Credits39,924 - - - - - Scheduled CIP Expenditures- 1,823,000 500,000 500,000 5,000,000 6,802,775 ____________________________________________________________Projected Year-End Restricted Cash Balance5,649,077$ 5,615,077$ 6,975,637$ 8,410,619$ 5,423,001$ 713,102$ 517 WATER IMPACT FEE FUNDREVENUE PROJECTIONSCurrent Year ----------------------------------------Projected----------------------------------------FY07 FY 08 FY 09 FY 10 FY 11 FY 12Projected Impact Fee Revenues 1,789,000$ 1,789,000$ 1,860,560$ 1,934,982$ 2,012,382$ 2,092,877$ Growth Rate4% 4% 4% 4% 4%Impact Fees Dedicated to CIP 1,789,000 1,860,560 1,934,982 2,012,382 2,092,877 2,176,592 Add Other Revenue Sources: __________ __________ __________ __________ __________ __________Total Other Revenue Sources - - - - - - __________ __________ __________ __________ __________ __________Total All Revenue Sources 1,789,000$ 1,789,000$ 1,860,560$ 1,934,982$ 2,012,382$ 2,092,877$ Notes:518 CITY OF BOZEMANCAPITAL IMPROVEMENTS PROGRAMWATER IMPACT FEE PROJECTSItem Ref # -----------Projected Costs by Fiscal Year----------Not # Project TitleDepartment/DivisionCategoryFY 08 FY 09 FY 10 FY 11 FY 12 TotalScheduledPW01 SHOPS COMPLEX - PHASE 1 Water Impact Fees Project 990,000 990,000 W07 22MG MEMBRANE WATER TREATMENT PLANT Water Impact Fees Project 67,000 500,000 500,000 5,000,000 5,000,000 11,067,000 WIF01 SOURDOUGH CREEK DAM Water Impact Fees Project 50,000 50,000 20,000,000 WIF02 SOURDOUGH CREEK DRAINAGE WATER RIGHTS Water Impact Fees Project 16,000 16,000 WIF03 5.3MG CONCRETE WATER STORAGE RESERVOIR Water Impact Fees Project- 5,300,000 WIF04 LYMAN - EXPANSION OF GROUNDWATER COLLECTION Water Impact Fees Project 700,000 700,000 WIF05 REDUNDANT TRANSMISSION MAIN FROM WTP Water Impact Fees Project 1,802,775 1,802,775 19,880,000 - ________ ________ ________ ________ ________ ________ ________Total1,823,000$ 500,000$ 500,000$ 5,000,000$ 6,802,775$ 14,625,775$ 45,180,000$ 519 CITY OF BOZEMANCAPITAL IMPROVEMENTS PROGRAMWATER IMPACT FEE CREDITSItem Ref #Credit # Project TitleBalanceCommentImpact Fee Credits:Credits: At June 30, 2006(39,924) Total of all existing credits, combinedTotal(39,924)$ 520 City of Bozeman Capital Improvements Plan FY08-12 Project Name: Shops Complex – Phase I Estimated Cost: $4,995,000 – Total, Phase I Project Number: Public Works – PW01 Date Scheduled: FY08 Purpose: □ New ■ Replacement ■ Facility □ Equipment Project Description: This project consists of building a new Water/Wastewater operations building at the Wastewater Treatment Plant. This will be designed and built to be the start of a new shops complex that will be built in phases. The present shops complex is built in a residential neighborhood and it is estimated to have twice the employees working out of the complex than what it was designed for. The present complex has high traffic loads, and with the public water fill station there and driving and walking in the complex is dangerous at high traffic periods. Constructing a new complex in phases, with phase one being a new facility for water and wastewater, will give additional space for the other divisions until the final phase can be constructed in FY 10. This phase of the complex will provide office, classroom, and locker facilities, as well as shop and garage area large enough to place the majority of the divisions’ equipment under roof. Alternatives Considered: Build a smaller satellite facility for high traffic volume operations; leave low traffic operations at existing facility. Advantages of Approving this Project: It has been determined there is adequate room at the WWTP for a shop complex, not within the entryway overlay corridor. This will allow all land at the Mandeville Farm to be utilized for an industrial subdivision. Constructing the complex in phases will allow additional time to secure funding for the final phase, eliminate a majority of traffic at the current site, eliminate the public water fill station (will be located at the new site), and free up space in the current complex to alleviate crowding for other divisions. With utilizing the WWTP for the Shops Complex selection of proper site, this move will eliminate using residential streets for day-to-day high volume traffic. This will give more space at the existing complex and make it much safer. Possibly build a new water fill station with it. Estimated New Recurring Costs: Annual Operating & Maintenance Costs: Unknown at this point. Pre-design work is being done in FY07 that should give us a good basis for an estimate of annual operating and maintenance costs for this facility. Funding Sources: Phase I Total = $4,995,000 30% Water Utility Fund = $1,507,500 30% Wastewater Utility Fund = $1,507,500 20% Water Impact Fees = $990,000 20% Wastewater Impact Fees = $990,000 521 City of Bozeman Capital Improvements Plan FY08-12 Photo #1 #1 – Existing Shops Complex - Located at 814 N Bozeman Avenue. Photo #2 #2 – Proposed Future Site on Wastewater Treatment Plant Property - Located at 255 Moss Bridge Road. Exact location of the Shop on this site would be determined so that we get the best use as both BNR Treatment Plant and Shop Location. 522 City of Bozeman Capital Improvements Plan FY08-12 Project Name: 22MG Membrane Water Treatment Plant Estimated Cost: $33.2 Million Total Project Number: Water Plant – W07 Date Scheduled: FY08-FY12 Purpose: □ New ■ Replacement ■ Facility □ Equipment Project Description: This new Membrane Filter Treatment Plant is the preferred water treatment alternative identified in the adopted Water Facility Plan. It is recommended to be built with an initial configuration providing 22MGD of water treatment capacity, with future expansion capability to 36MGD. This addresses both the 10- and 20- year capacity requirement forecast for the City’s water treatment system. The current 15MGD WTP equipment is nearing the end of its useful life; the plant’s direct filtration treatment process, while effective most of the year, becomes only marginally effective during spring runoff or flash thunderstorms in the watershed, dropping plant efficiency as low as 70%; and, rapid population growth and expansion of city water services is increasing demand for water. The current plant capacity may be exceeded in as few as five years. The New Plant will be sited at the existing WTP site in an 18,800 sf building located directly north of the existing plant. It will include gravity thickeners, a drying bed building with dual vacuum-assisted beds, triplex micro strainers and sludge pumps. All these new facilities will easily fit on the approximately 33-acre parcel of City-owned property on the site. A 12-month pilot testing phase will need to be completed prior to design finalization. We are required to have the new plant online by October 2013. Extensions of that deadline are possible, but we are not relying on the assumption that they would be granted. Alternatives Considered: The Water Facility Plan considered numerous alternatives for water treatment. This was identified as the preferred alternative in the adopted plan. Advantages of Approving this Project: Planning for increased water supply to meet growing demands and to replace existing equipment that is at the end of its useful life. Estimated New Recurring Costs: This plant is estimated to require two new operators, in addition to existing plant staff. Annual O&M costs = est. $1,735,901 (including existing staff plus new plant expenses). Funding Sources: FY08 Pilot Testing = $200,000 Total 67% Water Utility Fund = $133,000 33% Water Impact Fees = $67,000 FY09 & FY10 Design = $3,000,000 Total 67% Water Utility Fund = $2,000,000 33% Water Impact Fees = $1,000,000 FY11 & 12 Construction = $30,000,000 Total 67% Water Utility Fund = $20,000,000 33% Water Impact Fees = $10,000,000 523 City of Bozeman Capital Improvements Plan FY08-12 Project Name: Sourdough Creek (Mystic Lake) Dam Estimated Cost: $20 Million Total; Preliminary Design Work $50,000 Project Number: Water Impact Fees – WIF01 Date Scheduled: FY08 – Prelim Design Unscheduled - Construction Purpose: ■ New □ Replacement ■ Facility □ Equipment Project Description: The City currently has storage rights to approximately 1,955 Million Gallons per Year, with a reservation for an additional 931 MGY, worth of storage rights on Sourdough Creek. These rights were historically allocated based on available storage in Mystic Lake. The Mystic Lake Dam, however, has been breached, rendering these storage rights essentially useless until a new dam is constructed on Sourdough Creek to replace the Mystic Lake Dam. Because this volume of storage right is very significant, the City intends to utilize these rights to meet future water needs. This option is suggested in addition to continued water conservation efforts throughout the City. Alternatives Considered: The Facility Plan explores many options for additional future water in Section 3.C. Advantages of Approving this Project: Additional water is secured to meet future resident needs. Estimated New Recurring Costs: Unknown at this time. Funding Sources: 100% Water Impact Fees 524 City of Bozeman Capital Improvements Plan FY08-12 Project Name: Sourdough Creek Drainage Water Rights Estimated Cost: $20,000 Project Number: Water Impact Fees – WIF02 Date Scheduled: FY08 Purpose: ■ New □ Replacement ■ Facility □ Equipment Project Description: The City needs to pursue the legal steps necessary to perfect its existing claim for water and water storage in the Sourdough Creek Drainage. The City currently has storage rights to approximately 1,955 Million Gallons per Year, with a reservation for an additional 931 MGY, worth of storage rights on Sourdough Creek. These rights were historically allocated based on available storage in Mystic Lake. The Mystic Lake Dam, however, has been breached, rendering these storage rights essentially useless until a new dam is constructed on Sourdough Creek to replace the Mystic Lake Dam. Because this volume of storage right is very significant, the City intends to utilize these rights to meet future water needs. Alternatives Considered: The Facility Plan explores many options for additional future water in Section 3.C. Advantages of Approving this Project: Additional water is secured to meet future resident needs. Estimated New Recurring Costs: Unknown at this time. Funding Sources: 80% Water Impact Fees = $16,000 20% Water Utility Fund – Cash in Lieu of Water Rights = $4,000 525 City of Bozeman Capital Improvements Plan FY08-12 Project Name: 5.3MG Concrete Water Storage Reservoir Estimated Cost: $5,300,000 Project Number: Water Impact Fees – WIF03 Date Scheduled: Unscheduled (Online by 2017) Purpose: ■ New □ Replacement ■ Facility □ Equipment Project Description: A new 5.3MB partially buried concrete water storage reservoir is to be constructed by 2017. The proposed location of the reservoir is on City property adjacent (to the North) of the proposed new Hyalite/Sourdough water treatment plant. By the year 2017, current available storage will be inadequate to meet the City’s needs according to MDEQ minimum system storage requirements. This reservoir is sized to meet the City’s storage needs up to 2025, assuming a 5% annual growth rate. Locating the storage reservoir at the recommended site will raise the hydraulic grade line in the City’s water system, which will increase pressure for the southern part of the City and will allow future development to occur in the south on a gravity system. Alternatives Considered: The water facility plan reviewed numerous options. This is the preferred alternative of the adopted plan. Advantages of Approving this Project: Increased water storage to meet the needs of our growth community, and the requirement of MDEQ. Increased system water pressure in the southern part of the City. Estimated New Future Recurring Costs: Requires minimal operation and maintenance. Checking of valves, level sensors and vents on an annual basis and diver inspection and vacuuming every five years. Estimated at $4,000 annually. Funding Sources: 100% Water Impact Fees 526 City of Bozeman Capital Improvements Plan FY08-12 Project Name: Lyman – Expansion of Existing Groundwater Collection Estimated Cost: $699,758 Project Number: Water Impact Fees– WIF04 Date Scheduled: FY08 Purpose: ■ New □ Replacement ■ Facility □ Equipment Project Description: Improvements in piping further up the drainage are needed to maximize the amount of water captured at from Lyman’s groundwater collection system. The current Lyman Creek spring collector system contributed up to 2 MGD seasonally, in 2005. Winter yields were substantially less. The City holds 3.8MGD of water rights in the water shed; it is believed that improvements could potentially raise seasonal output to 3+ MGD, which would relieve some demands for water from the Hyalite system in the summer months. Lyman Creek also serves as an important emergency water supply, providing minimal water service to most parts of the city during an emergency. Alternatives Considered: Four separate alternatives were considered in the Water Facilities study: 1. No Action 2. Add CAC WTP to Treat Surface Water Component. 3. Add New Membrane WTP to Treat Surface Water Component. 4. Expand Existing Groundwater Collection. Alternative 4 was identified as the best alternative due to its flexibility and cost-effectiveness. This alternative does not preclude us from building a water treatment plant to treat Lyman Creek surface water flow, should it become necessary in the future. Advantages of Approving this Project: Improved water supply; we will be able to collect all of the available groundwater flow from the spring collection system. And, our facility consultant believes it may be possible to collect the City’s entire 3.8MG water right during a portion of the summer months when water demands are highest. Estimated New Future Recurring Costs: Additional operating costs for the system are estimated at $142,573 per year. Funding Sources: 100% Water Impact Fees 527 City of Bozeman Capital Improvements Plan FY08-12 Project Name: New Transmission Main from Water Treatment Plant (System Redundancy) Estimated Cost: $1,802,775 Scheduled; $19,879,773 Unscheduled Project Number: Water Impact Fees– WIF05 Date Scheduled: FY12 Purpose: ■ New □ Replacement ■ Facility □ Equipment Project Description: The Water Facility Plan identifies this project as the most critical redundancy issue in the City’s water distribution system. The City receives the majority of its water from the Water Treatment Plant through an existing 30 inch concrete transmission main. If this main is off-line for any reason, the City will need to rely on storage from its three reservoirs. At 2005 water demand levels, storage reserves would be depleted in three days during the average day demand, and in 24 hours during the maximum day demand. Not only will a second transmission main provide the security of redundancy if the existing 30- inch main is removed from service, but the existing 30-inch main is expected to reach capacity by the year 2020. Redundancy Area: Water Treatment Plant New Size Description of Estimated Footage (ft) Old Size Construction Cost 4,525 N/A 12" Install New 12" $ 911,335 2,636 N/A 24" Install New 24" $ 1,101,716 5,154 N/A 36" Install New 36" $ 3,481,785 17,093 N/A 48" Install New 48" $16,187,712 Total Project Cost $21,682,548 The precise location of the required mains is somewhat flexible, but in general will be from Wagonwheel road (extended) in S. 19th to Goldenstein to South 3rd to Nash Road (see exhibit 5.B.3 of the facility plan). Given the priority of the Water Treatment Plant project, the City is not currently planning to complete these projects, only make Impact Fee funds available to qualifying projects in the amounts shown: Project Portion IF Eligible % Impact Fee $: 4,525 N/A 12" Install New 12" 55% $ 609,820* 2,636 N/A 24" Install New 24" 89% $1,192,955* * includes 4% inflation factor through FY12 Alternatives Considered: Do not build redundant transmission main. Advantages of Approving this Project: The city will be assured that water can be supplied even if one transmission main sustains damage and is offline for a number of days. Estimated New Future Recurring Costs: Annual Operating & Maintenance Costs: Impact Fees can not be spent on annual operations and maintenance costs. The Water Utility will see incremental increases in general maintenance costs. Current cost estimate of $12,500 per water-main mile maintained annually. Funding Sources: 100% Water Impact Fees for the $1,802,775 in costs described above. 528 City of Bozeman Capital Improvements Plan FY08-12 Exhibit #1 – New Transmission Main Map 529 3Q Legend City Limits Roads Existing Water Mains Water Impact Fee Projects Water Impact Fee Project Map¯ 1 0 10.5 Mile REVISED: 1/16/07 WATER TREATMENT PLANT NASH19THGOLDENSTEINS 3RDSOURDOUGHSOURDOUGH530 FIRE IMPACT FEE FUNDSUMMARY OF CIP BALANCES, REVENUES AND EXPENDITURESCIP FY2008-2012Current Year-----------------------------------------Projected-------------------------------------------FY07 FY08 FY09 FY10 FY11 FY12Projected Beginning Restricted Cash Balance 1,800,000$ 1,590,000$ 78,600$ (101,736)$ 224,475$ (320,305)$ Add: Revenues Dedicated to CIP 290,000 301,600 313,664 326,211 2,239,259 352,829 Less: Scheduled CIP Expenditures 500,000 1,813,000 494,000 - 2,784,038 - __________ __________ __________ __________ __________ __________Projected Year-End Restricted Cash Balance 1,590,000$ 78,600$ (101,736)$ 224,475$ (320,305)$ 32,524$ 531 FIRE IMPACT FEE FUNDREVENUE PROJECTIONSCurrent Year ----------------------------------------Projected----------------------------------------FY07 FY08 FY09 FY10 FY11 FY12Projected Impact Fee Revenues 290,000$ 301,600$ 313,664$ 326,211$ 339,259$ 352,829$ Customer Growth Rate 4% 4% 4% 4% 4%__________ __________ __________ __________ __________ __________Impact Fees Dedicated to CIP 290,000$ 301,600$ 313,664$ 326,211$ 339,259$ 352,829$ Add Other Revenue Sources: Bond Issue or Other1,900,000 __________ __________ __________ __________ __________ __________Total Other Revenue Sources - - - - 1,900,000 - __________ __________ __________ __________ __________ __________Total All Revenue Sources 290,000$ 301,600$ 313,664$ 326,211$ 2,239,259$ 352,829$ Notes:532 CITY OF BOZEMANCAPITAL IMPROVEMENTS PROGRAMFIRE IMPACT FEE PROJECTSItem -----------Projected Costs by Fiscal Year----------Not # Project TitleDepartment/DivisionCategoryFY08 FY09 FY10 FY11 FY12 TotalScheduledFIF01 FIRE ENGINE STATION #3 FIRE IMPACT FEES Equipment - 494,000 494,000 FIF02 FIRE STATION #3 FIRE IMPACT FEES Project 1,650,000 1,650,000 FIF03 TRAFFIC SIGNAL PREEMPTION FIRE IMPACT FEES Equipment 163,000 163,000 FIF06 FIRE STATION #4 FIRE IMPACT FEES Project 2,249,728 2,249,728 FIF07 FIRE ENGINE STATION #4 FIRE IMPACT FEES Equipment 534,310 534,310 ________ ________ ________ ________ ________ ________ ________Total1,813,000$ 494,000$ -$ 2,784,038$ -$ 5,091,038$ -$ 533 Project Name: Fire Engine for Station #3 Estimated Cost: $494,000 – in FY09 Project Number: Fire Impact Fees – FIF01 Date Scheduled: FY09 Purpose: ■ New □ Replacement □ Facility ■ Equipment Project Description: This project is the purchase of an engine and accompanying equipment for use out of new Fire Station 3. It will be necessary to have this engine at the Station when it opens. There is an estimated X month lead time in delivery of this type of equipment. Because Station #3 is required to serve additional city growth since 1995, 100% of the costs of this equipment purchase can be paid for through impact fees. Alternatives Considered: Use of 1989 Pierce Reserve Pumper Darley; buy a used engine; lease/purchase an engine. Advantages of Approving this Project: Purchase of this unit will adequately equip Station 3 for fire and other emergency responses. Estimated New Future Recurring Costs: 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 City of Bozeman Capital Improvements Plan FY08-12 534 Project Name: Fire Station #3 (Located in North West Bozeman) Estimated Cost: $500,000 in FY07 & $1,650,000 in FY08 Project Number: Fire Impact Fees – FIF02 Date Scheduled: FY07 – FY08 Purpose: ■ New □ Replacement ■ Facility □ Equipment Project Description: This project is identified as the top 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. This project is the design and construction of an 8,000 square foot fire station for $1,950,000 plus $50,000 additional costs for fixtures, furnishings and equipment. The construction cost is estimated at approximately $243 per square foot. Land is not currently owned for this station, and is needed in the general area between Oak Street & Baxter Avenue, and Flanders Mill Road & 27th Avenue. Acquisition costs are estimated at $150,000 for the 1.5 acres needed for the site, based on undeveloped land costs known at this time. 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 Two; 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 desired response times and high life and fire losses; acquire fire district's fixed facilities if annexation by the City continues. Advantages of Approving this Project: The completion of this project would enhance our ability to respond to growing parts of the community within a time frame that meets national standards of good practice as adopted through the City’s Fire Protection Master Plan. Additionally, the city would realize important ISO rating points that, would most likely, result in a decrease in our ISO rating. A lower ISO rating would equate to lower fire insurance premiums to our property owners. It is expected that with the completion of the new fire station, fire loss in the north-west quadrant of town will decrease, survival from heart attack and other trauma will increase, and response to other areas of town will improve as we add another engine company to service the growing city. Estimated New Future Recurring Costs: 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 $1,130,000, including all crew personnel. Funding Sources: 100% Fire Impact Fees City of Bozeman Capital Improvements Plan FY08-12 535 Project Name: Traffic Signal Preemption Program Estimated Cost: $163,000 Project Number: Fire Impact Fees – FIF03 Date Scheduled: FY08 Purpose: ■ New □ Replacement □ Facility ■ Equipment Project Description: This project is the installation of ten (10) fire apparatus emitters, intersection wiring, and signal receivers at approximately 17 city intersections to improve response times to emergencies throughout the community. This dual priority system uses precisely timed impulses of high intensity light in several wavelengths to activate a traffic control system which facilitates emergency vehicle response. Its dual priority capability allows the system to give top priority to emergency vehicles and secondary priority to other users, such as snow plows. For the last several years, most of the new traffic signals installed in Bozeman have included the signal-based modules and will not require upgrade as a part of this project. The installation of this system will allow traffic the green signal in the direction of the emergency responder, thus, facilitating travel to the emergency. Nationwide, this system's installation has reduced average emergency response times by as much as 17 to 20%, according to the vendor. Because Station location is based on response time, improving emergency response times generally decreases the need for additional physical fire stations to be built. This project will coincide with the MDOT’s installation of signal receivers on Main Street during their Summer 2007 project. They will be funding the costs for the Main Street portion, estimated at approx $9,000 per signal, including labor. Alternatives Considered: Continue to operate without a signal preemption system. Advantages of Approving this Project: This system's installation improves emergency response time and, more importantly, response safety in those communities where it is used. Its dual priority capability allows other users under a priority system to access signal preemption. It severely reduces the need for our emergency responders to occasionally travel into opposing lanes of traffic, a risky route to negotiate. And, it clearly allows traffic movement in the direction by the emergency responder. Estimated New Future Recurring Costs: Annual Operating & Maintenance Costs: Impact Fees can not be used for annual operating and maintenance costs. The General Fund will need to provide for repair and replacement of system components as they outlive their useful life. Funding Sources: 100% Fire Impact Fees City of Bozeman Capital Improvements Plan FY08-12 536 Project Name: Fire Station #4 – South West Bozeman Estimated Cost: $2,249,728 Project Number: Fire Impact Fees – FIF06 Date Scheduled: FY11 Purpose: ■ New □ Replacement ■ Facility □ Equipment Project Description: This project is identified as the top 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. This project is the design and construction of an 8,000 square foot fire station for $1,950,000 plus $50,000 additional costs for fixtures, furnishings and equipment. The construction cost is estimated at approximately $243 per square foot, escalated for inflation at 4% per year. 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. As of today, we believe that this project will need to be constructed in FY11. 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 Approving this Project: 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. Estimated New Future Recurring Costs: 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 City of Bozeman Capital Improvements Plan FY08-12 537 Project Name: Fire Engine for Station #4 Estimated Cost: $534,310 Project Number: Fire Impact Fees – FIF07 Date Scheduled: FY11 Purpose: ■ New □ Replacement □ Facility ■ Equipment Project Description: 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. As of today, we believe that this piece of equipment will need to be purchased in FY11. Alternatives Considered: Use of 1989 Pierce Reserve Pumper Darley; buy a used engine; lease/purchase an engine. Advantages of Approving this Project: Purchase of this unit will adequately equip Station #4 for fire and other emergency responses. Estimated New Future Recurring Costs: 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 City of Bozeman Capital Improvements Plan FY08-12 538 ²µ ²µ © © Legend City Limits Roads ©Existing Fire Station #1 ©Existing Fire Station #2 ²µFire Impact Fee Projects Fire Impact Fee Project Map¯ 1 0 10.5 Mile REVISED: 1/16/07 GRAF11TH19TH S 3RDKAGY BAXTER FLANDERS MILLHARPER PUCKETTDAVIS#4 #3 19THOAK DURSTON S 3RDSTUCKY FOWLER539