HomeMy WebLinkAbout6_Approve Resolution No_ 4046, adopting the 2007-200_6
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Chris Kukulski, City Manager
SUBJECT: Resolution 4046, adopting the 2007 – 2008 Facility Timeline & Finance Plan
MEETING DATE: July 23, 2007
RECOMMENDATION: Adopt resolution 4046, the 2007 – 2008 Facility Timeline &
Finance Plan
BACKGROUND: If approved, the attached resolution adopts the 2007 – 2008 Facility
Timeline & Finance Plan (Plan). The Plan was first presented to the Commission in May, 2007,
updated and re-presented at the June 21, 2007 Policy meeting.
The Commission was unable to complete discussions on the entire Plan at the June 21, 2007
meeting. The Plan was reintroduced at the July 9, 2007 Commission meeting, however,
discussions were not completed. At the July 12, Policy meeting the Commission completed
discussions of the 2007 – 2008 Facility Timeline & Finance Plan and directed Staff to prepare a
resolution adopting the Plan.
The Plan is consistent with the 2007- 2008 Work Plan and guides the Commission and Staff in
constructing, renovating and financing all of the city’s major facility upgrades.
FISCAL EFFECTS: Over $100 million in facility upgrades are outlined in the 2007 – 2008
Facility Timeline & Finance Plan.
.
ALTERNATIVES: As suggested by the Commission.
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Respectfully submitted,
__________________________
Chris A. Kukulski, City Manager
Attachments: (1) Resolution 4046; (2) 2007 – 2008 Facility Timeline & Finance Plan (Exhibit
A)
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COMMISSION RESOLUTION NO. 4046
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA, ADOPTING THE 2007- 08 FACILITY TIMELINE AND FINANCE
PLAN.
WHEREAS, the City of Bozeman is committed to addressing the community’s expressed needs
and desires for services; and
WHEREAS, the City of Bozeman is committed to meeting those desires and demands for services
in a fiscally responsible manner; and
WHEREAS, the City Commission and City staff recognize the benefit of developing a 2007 –
2008 Facility Timeline and Finance Plan in order to recognize priorities and identify potential sources of
funding; and
WHEREAS, the City staff has developed a 2007 – 2008 Facility Timeline & Finance Plan; and
WHEREAS, the City Commissioners have discussed this plan and, based on those discussions,
agree in principal with the content of the 2007 – 2008 Facility Timeline & Finance Plan and recognize that
updates and modifications in priorities and/or funding sources may be necessary.
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman,
Montana, that the 2007 – 2008 Facility Timeline & Finance Plan, as contained in Exhibit "A", attached
hereto and by this reference made a part hereof, is hereby adopted.
PASSED AND ADOPTED by the City Commission of the City of Bozeman, Montana, at a
regular session thereof held on the 23rd day of July 2007.
__________________________________________
Jeffrey Krauss, Mayor
ATTEST:
_____________________________________
Cynthia Jordan Delaney
Acting City Clerk
APPROVED AS TO FORM:
___________________________________
Paul Luwe
City Attorney
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EXHIBIT A
2007 – 2008 Facility Timeline & Finance Plan
City Manager - Present a timeline for major facility construction and
funding sources for each project (i.e. wastewater plant, fire stations,
police station, city hall and water plant)
Fiscal Years 2007 - 2008
1. Library Construction Project
With the construction complete and the building open to the public, the City remains $2.558
million short in funding the project. We expect the shortfall to be recovered from: (1) CALA
funds and, (2) A donor who has agreed to pay ½ of the deficit after CALA and, (3) the cities
special project account. These three sources are conservatively estimated to produce
$2.376 million total and the remainder will come from the city’s general fund reserve
therefore eliminating the construction deficit.
(1) The City has negotiated an 80/20 slit on orphan vs. non-orphan share through the
CALA process. As a result of this agreement with the DEQ the City will be reimbursed
approx. $1.68 million from the states orphan share account.
(2) A donor has agreed to pay one half of the remaining deficit after the CALA process
has been completed. This donation should cover approx. $439,000.
(3) The City’s special project account has a balance of approx. $286,000. These funds
were paid to the city several years ago through the sale of Valley Unit lots that
defaulted into the city’s ownership.
(4) The remaining balance should be approx. $153,000 and will be paid out of the City’s
general fund cash reserve.
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Until CALA funds are reimbursed to the City and/or land sales occur, the $2.558 million
shortfall will continue to be borrowed from internal funds. Interest will be paid to each of the
lending funds at the market rates the Finance Department realizes on existing investments.
2. Library Landscaping Project and Peet’s Hill Parking Lot.
The project bid was awarded by the Commission in May with funding coming from a $1.125
Million Federal Transportation Appropriation and approximately $300,000 in CTEP allocation.
The project should be completed by September 2007.
3. Relocation of City Hall to the former Lamme Street Library Property.
June 11, 2007 the City Commission authorized Comma Q Architects to complete the design
development, construction documents, bidding and contract administration for renovations
to the Lamme Street property to become City Hall. This opportunity represents a long-term
solution that will provide office space for City Hall operations beyond the year 2030.
The adopted 2007 budget anticipated possible renovations to the Lamme Street property
and the existing city hall property. It included utilizing $750,000 from the Special Projects
Fund that was created as a result of property sales at Valley Unit in the early 1990’s. In
December 2006, after it was concluded that neither the current city hall or prior library sites
was suitable for a Police Station, $430,000 of the Special Projects Funds were spent to
purchase an adjacent residential property that greatly enhances our ability to provide
parking and future building expansions.
Renovations to the facility are estimated at $1.65 million, including architectural costs and
the replacement of the 26-year-old boiler system. This project would be funded by: (1) the
sale of the current City Hall site, (2) the City’s general fund cash reserve.
(1) The current City Hall property was appraised in January 2006 and was valued at $1.4
million.
(2) The City’s general fund cash reserve has an estimated balance of $3.0 Million as of
June 30, 2007. This balance represents 16.8% of FY08 budgeted operating revenues.
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If $250,000 were utilized for this construction project, the general fund cash reserve
would be $2.75 Million, 15.4% of revenues at the end of FY08.
4. Downtown Parking Garage – Construction.
For the past 18 months, the City has been working with the Federal Transit Administration to
receive all the approvals necessary for the Federal Appropriation on the project. We have
received the Finding of No Significant Impact (FONSI) that is contingent on our adoption of
one additional mitigation measure – which we are confident we can comply with.
Bids for the construction of the Downtown Parking Garage were opened in early May 2007.
Within a matter of weeks, we expect to receive final authorization to incur costs on the
project, at which point a bid will be awarded and construction can begin. The lowest
qualified bidder will allow the City to authorize phase I which will build approx. 330 parking
spaces at a cost of $9.2 Million. Phase II will add approx. 100 spaces and will be requested
for approval once the city sells the roughly 10,000 square feet of retail/office space.
This construction project will be financed with: (1) Federal Transit Administration
appropriation and anticipation notes, (2) Tax Increment Financing District bonds and cash,
and (3) interest earnings during the construction period. These sources combine for a total
of $9.2 Million, which is the current estimate for the project.
(1) The Federal Transit Administration appropriation totals $4,034,000. Because of the
timing of construction outlays, we expect to issue anticipation notes for the
portion of the appropriation that is not scheduled to be received until federal
FY2008 & FY2009. Net of financing and interest costs on these notes, we expect
to have a total of $3.87 Million available for the project.
(2) The TIF District will contribute a $460,000 in cash and will issue bonds estimated at
$4,800,000 to fund the construction.
(3) Interest earnings derived by investing bond and note proceeds during the
construction period are expected to bring $130,000 for construction.
The Bozeman Parking Commission is developing operating plans for the Garage and will take
on that responsibility once the facility is open, estimated June/July 2008.
5. Fire Station #3 - Design, Construct, Equip and Staff.
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The 2006 adopted Fire Master Plan calls for a third fire station located in the northwest
quadrant of Bozeman. Due to housing and population growth in the area, this station needs
to open as soon as possible. Designing, constructing and equipping the station will be
funded by: (1) Fire Impact Fees. Staffing and operating the station will be funded by: (2)
Voter Approved Fire Levy.
(1) Fire Impact Fees, at their current levels, are expected to total $2.3 Million by the end
of FY2008, and $2.6 Million by the end of FY2009.
a. We are finalizing an agreement to purchase land from Gallatin County at its
appraised value. Appropriation authority of $500,000 was approved in the
FY2007 budget and will be carried forward to FY2008, so a purchase will be
able to be made as soon as a purchase agreement is completed.
b. Similar stations in Billings, Kalispell and Missoula have recently opened at a
cost less than our estimated FY2008 $2.3M impact fee account balance.
c. A Fire Engine (estimated cost $494,000) will need to be purchased in early
FY2009, available when the station opens. It is anticipated that this purchase
will leave the Fire Impact Fee Fund with a negative balance in FY2009 –
recovering to a positive balance in FY2010.
(2) A Fire Mill levy will require voter approval in order to annually finance the 13
additional staff necessary to run the station.
6. Police and Municipal Court Facility - Design and Construct.
The 2006 Carter Goble Lee facility plan was adopted in June 2007, by the City Commission.
It outlines the anticipated space needs for the City’s Police Department, Municipal Court
and Prosecution functions for the next 20 years.
The facility plan calls for a five acre site and approx. 50,000 square foot facility at an
estimated construction cost of approximately $12.75 Million. Land and site development
costs are not included in this estimate. The facility would be funded with 20-year debt, after
voter approval of a Police & Court Facility Levy.
A Police Department staffing analysis was also adopted in June of 2007. Police staffing levels
are not necessarily connected to the construction of a police station. However, they are
connected to service delivery and are being considered as part of a Police/Fire Mill Levy.
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The staffing analysis utilized five years of internal, service-demand data that was specific to
our department. The analysis has recommended we add six officers to our Patrol Division
immediately, and approximately 1-2 each following year. The proposed staffing
methodology is considered a “best practice” by the International Association of Chiefs of
Police (IACP). It replaces the “1.5 Officers per 1,000 Residents” standard that is commonly
quoted for police staffing.
7. City Shops Complex.
In March 2006, the City Commission authorized the purchase of the Cardinal Distributing
property. All operations currently located at Rouse and Tamarack will be relocated to the
Cardinal site. We are under contract to purchase the property at its appraised value of
$3.2 million plus renovation costs. We anticipate $1.0 million in renovations, which will be
completed by the seller prior to our possession.
A new Shops Complex has been included in the City’s Capital Improvements Plan for nearly
10 years. This project represents a substantial savings over the CIP total estimated costs of $9
Million. Funding sources for this project are: (1) Water Utility & Wastewater Utility, and (2)
Impact Fees.
(1) The Water & Wastewater Utility will each contribute $1.4 Million.
(2) Water, Sewer, & Street Impact Fees will each contribute $465,000.
At this time Montana Rail Link has rejected Cardinal’s request to assign their land lease to the
City. Nothing can move forward until this issue is clearly resolved since approx. one third of
the building is sitting on land leased from the railroad.
Fiscal Years 2007 – 2011
8. Wastewater Treatment Plant - Design and Construction of a
Biological Nutrient Removal Plant.
The 2006 adopted Wastewater Facility Plan calls for the construction of a Biological Nutrient
Removal (BNR) Plant to be opened by 2011. Phase I of the project is currently under design,
expected to take nearly 24 months. Construction is expected to begin in FY2009 and last
nearly 24 months, as well. Phase I design and construction costs are estimated to total $33.1
Million.
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I am using utility rate studies and impact fee studies to ensure that adequate funding exists
for this large project. The Commission has recently adopted the rate study and will be
considering the impact fee study for adoption in July. Wastewater revenue bonds with a 20-
year term will be issued in FY2009 & FY2010.
• Fiscal Year 2007 Design - $3.9 million
o 67% Wastewater utility cash = $2.61 million
o 33% Wastewater impact fee cash = $1.28 million
• Fiscal Year 2009 and 2010 Construction - $29.2 million
o 67% Wastewater utility bonds = $19.5 million
o 33% Wastewater impact fee cash = $9.7 million
Future construction phases are based on estimated development and population growth. If
development meets or exceeds our projections, Phase II will likely break ground in 2012.
Fiscal Years 2008-2012
9. Water Treatment Plant - Design and Construction of Membrane Filter
Plant.
The 2006 adopted Water Facility Plan calls for the construction of a 22 Million Gallon
Membrane Filter Plant, to be opened by 2013. Pilot testing of the membrane technology will
begin in FY2008. The design process, expected to last 24 months, will begin in FY2009.
Construction is expected to begin in FY2010 and last nearly 24 months, as well. Currently the
project is estimated to cost $33.2 million.
Again, I am using utility rate studies and impact fee studies to ensure that adequate funding
exists for this large project. The Commission has recently adopted the rate study and will be
considering the impact fee study for adoption in July. Water revenue bonds with a 20-year
term will be issued in FY2011 & FY2012.
• Fiscal Year 2008 Pilot Testing = $200,000
o 67% Water utility cash = $133,000
o 33% Water impact fee cash = $67,000
• Fiscal Year 2009 &2010 Design = $3.0 million
o 67% Water utility cash = $2.0 million
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o 33% Water impact fee cash = $1.0 million
• Fiscal year 2011 and 2012 Construction = $30 million
o 67% Water utility bonds = $20 million
o 33% Water impact fees = $10 million
Fiscal Year 2010
10. Outdoor Aquatics Facility - Design and Construct.
Given the high community-participation in swimming programs and the age of our existing
outdoor pool, it is recommended that the City consider constructing a new Outdoor
Aquatics Facility.
Bogert Pool, the city’s only outdoor swimming facility, was constructed in 1939 and serves
over 45,000 patrons each summer. In 2006, 11,827 kids’ visits were recorded at the pool for
swimming lessons and 2,400 individual children participated in swim lessons. At the Swim
Center, 35,634 youth participated in swimming lessons, not counting swim teams and
synchronized swimming programs.
Over the past 68 years, numerous changes and improvements have been made to the
outdoor pool. Some recent changes include:
• In 1974 the bulkhead was installed between the 2 pools and the pool was entirely
renovated, new piping, new shell, etc. These repairs were expected to extend the
useful life approx. 20 years.
• In 1980 we did cement work, gutter repairs and began painting the pool shell. In the
1990’s we added about 12 feet to the west deck and later about 20 feet to the south
deck.
• The slides were added approximately 4 years ago. The pipes in the filter room and
the heat exchanger have been recently replaced, and about every 10 years we
need to replace the pool circulation pump and trash/vacuum pump.
The cost to construct a new aquatics facility is unknown. In 2003/04 Kalispell constructed an
outdoor aquatics facility and skate park in an existing park for $3.567 million (total cost
inclusive of finance).
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The location of this facility has yet to be determined. There have been extremely preliminary
discussions regarding two locations, one in the northwest quadrant and one in the south
quadrant of the city. Both locations are excellent.
Funding for this project would require a voter approved bond levy and possible private
fundraising. The town of Whitefish was able to utilize some private donations for the
construction of an indoor pool facility in recent years.
Fiscal Year 2011
11. Fire Station #4 - Design, Construct, Equip and Staff.
The 2006 adopted Fire Master Plan calls for the construction of a fourth fire station in the
southwest quadrant of Bozeman. This station is dependent on growth in the area and could
be needed as soon as 2011. The land for Fire Station #4 was deeded to the City in 2006. This
two acre parcel is located at the corner of South 19th and Graff.
Similar to Station #3, designing, constructing and equipping the station will be funded by: (1)
Fire Impact Fees. Staffing and operating the station will be funded by: (2) Voter Approved
Fire Levy.
(1) Depending on impact fee collections over the next four years and construction cost,
the construction and equipping of Station #4 could be funded by fire impact fees.
Because growth will drive the need for this facility, we anticipate that impact fee
dollars will be available at the time necessary.
(2) A Fire Mill levy will require voter approval in order to annually finance the 9 additional
staff necessary to run the station.
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